2 unchanged sentences
Consolidated Balance Sheets
−Removed: June 30, 2021 (unaudited) and December 31, 2020
+Added: September 30, 2021 (unaudited) and December 31, 2020
(derived from audited financial statements)
(in thousands, except share and per share data)
−Removed: June 30, 2021 December 31, 2020
+Added: September 30, 2021 December 31, 2020
Cash and cash equivalents $ 102,341 $ 119,440
34 unchanged sentences
Consolidated Statements of Operations (unaudited)
−Removed: Three and Six Months Ended June 30, 2021 and 2020
+Added: Three and Nine Months Ended September 30, 2021 and 2020
(in thousands, except per share data)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest and dividend income:
17 unchanged sentences
Insurance commission income — — — 474
−Removed: Net gains on investment securities 37 25 272 98
+Added: Net gains (losses) on investment securities 73 ( 1 ) 344 97
Net gain on sale of acquired business lines — 180 — 432
24 unchanged sentences
Consolidated Statements of Comprehensive Income (unaudited)
−Removed: Three and Six months ended June 30, 2021 and 2020
+Added: Three and Nine months ended September 30, 2021 and 2020
(in thousands)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Net income attributable to common stockholders $ 4,997 $ 3,480 $ 15,209 $ 9,155
−Removed: Other comprehensive income, net of tax:
+Added: Other comprehensive (loss) income, net of tax:
Securities available for sale
−Removed: Net unrealized gains arising during period 1,082 1,628 596 603
+Added: Net unrealized (losses) gains arising during period ( 797 ) 885 ( 201 ) 1,488
Reclassification adjustment for net gains included in net income, net of tax ( 31 ) — ( 57 ) ( 113 )
−Removed: Other comprehensive income, net of tax 1,056 1,628 570 490
+Added: Other comprehensive (loss) income, net of tax ( 828 ) 885 ( 258 ) 1,375
Comprehensive income $ 4,169 $ 4,365 $ 14,951 $ 10,530
2 unchanged sentences
Consolidated Statement of Changes in Stockholders’ Equity (unaudited)
−Removed: Six Months Ended June 30, 2021
+Added: Nine Months Ended September 30, 2021
(in thousands, except shares and per share data)
21 unchanged sentences
Balance at June 30, 2021 10,696,075 107 121,732 40,117 2,060 164,016
+Added: Net income — — — 4,997 — 4,997
+Added: Other comprehensive loss, net of tax — — — — ( 828 ) ( 828 )
+Added: Surrender of restricted shares of common stock ( 222 ) — ( 3 ) — — ( 3 )
+Added: Common stock options exercised 3,800 — 35 — — 35
+Added: Common stock repurchased ( 180,768 ) ( 2 ) ( 2,058 ) ( 454 ) — ( 2,514 )
+Added: Stock option expense — — 2 — — 2
+Added: Amortization of restricted stock — — 221 — — 221
+Added: Balance, September 30, 2021 10,518,885 $ 105 $ 119,929 $ 44,660 $ 1,232 $ 165,926
See accompanying condensed notes to unaudited consolidated financial statements.
40 unchanged sentences
Consolidated Statements of Cash Flows (unaudited)
−Removed: Six Months Ended June 30, 2021 and 2020
+Added: Nine Months Ended September 30, 2021 and 2020
(in thousands)
−Removed: Six Months Ended
−Removed: June 30, 2021 June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2021 September 30, 2020
Cash flows from operating activities:
4 unchanged sentences
Provision for loan losses — 5,250
−Removed: Net realized (gain) loss on equity securities ( 236 ) 58
+Added: Net realized (gain) loss on equity securities and other investments ( 266 ) 59
Net realized gain on debt securities ( 78 ) ( 156 )
9 unchanged sentences
Gain on sale of loans held for sale, net ( 4,131 ) ( 4,585 )
−Removed: Net change in loans held for sale 3,083 ( 385 )
+Added: Net originations of loans held for sale 5,531 5,540
Decrease (increase) in accrued interest receivable and other assets 529 ( 1,934 )
6 unchanged sentences
Purchase of available for sale securities ( 123,756 ) ( 20,956 )
−Removed: Purchase of held to maturity securities ( 20,543 ) ( 8,062 )
Proceeds from principal payments and sale of available for sale securities 33,307 52,083
−Removed: Proceeds from principal payments and maturities of held to maturity securities 4,455 362
−Removed: Net purchases (sales) of other investments 121 ( 188 )
+Added: Purchase of held to maturity securities ( 34,114 ) ( 15,147 )
+Added: Proceeds from principal payments, calls and maturities of held to maturity securities 9,846 1,051
+Added: Net sales (purchases) of other investments 122 ( 70 )
Proceeds from sales of foreclosed and repossessed assets 507 2,098
−Removed: Net decrease (increase) in loans 55,742 ( 105,443 )
+Added: Net increase in loans ( 11,374 ) ( 54,748 )
Net capital expenditures ( 2,368 ) ( 1,975 )
4 unchanged sentences
Net decrease in short-term Federal Home Loan Bank advances — ( 41,000 )
+Added: Amortization of fair value adjustments for acquired Federal Home Loan Bank advances 14 20
Long-term Federal Home Loan Bank advances — 66,500
2 unchanged sentences
Amortization of debt issuance costs 72 60
−Removed: Net increase (decrease) in deposits 75,970 76,495
+Added: Proceeds from other borrowings, net of origination costs — 14,677
+Added: Net increase in deposits 113,059 75,076
Repurchase shares of common stock ( 7,723 ) ( 1,838 )
3 unchanged sentences
Net cash provided by financing activities 90,833 79,100
−Removed: Net increase (decrease) in cash and cash equivalents 9,000 ( 16,259 )
+Added: Net (decrease) increase in cash and cash equivalents ( 17,099 ) 59,634
Cash and cash equivalents at beginning of period 119,440 55,840
7 unchanged sentences
Transfers from loans receivable to other real estate owned ("OREO") $ 45 $ 1,057
+Added: Transfers from office properties and equipment to OREO $ 79 $ —
See accompanying condensed notes to unaudited consolidated financial statements.
19 unchanged sentences
Additionally, the Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies.
−Removed: In preparing these consolidated financial statements, we evaluated the events and transactions that occurred subsequent to the June 30, 2021 balance sheet date and through the date the financial statements were available to be issued for items that should potentially be recognized or disclosed in these consolidated financial statements.
+Added: In preparing these consolidated financial statements, we evaluated the events and transactions that occurred subsequent to the September 30, 2021 balance sheet date and through the date the financial statements were available to be issued for items that should potentially be recognized or disclosed in these consolidated financial statements.
The accompanying consolidated interim financial statements are unaudited.
10 unchanged sentences
those items described under the caption “Risk Factors” in Item 1A of the annual report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 8, 2021;
+Added: the matters described in “Risk Factors” in Item 1A of the quarterly reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, filed with the SEC on May 6, 2021 and August 5, 2021, respectively;
the matters described in “Risk Factors” in Item 1A of this Form 10-Q;
32 unchanged sentences
Based on management’s quarterly evaluation, no impairment has been recorded on these securities.
−Removed: Other investments totaling $ 14,966 at June 30, 2021 consisted of $ 7,938 of FHLB stock, $ 5,181 of Federal Reserve Bank stock and $ 1,847 of Bankers’ Bank stock.
+Added: Other investments totaling $ 14,965 at September 30, 2021 consisted of $ 7,925 of FHLB stock, $ 5,193 of Federal Reserve Bank stock and $ 1,847 of Bankers’ Bank stock.
Other investments totaling $ 14,948 at December 31, 2020 consisted of $ 8,103 of FHLB stock and $ 5,170 of Federal Reserve Bank stock and $ 1,675 of Bankers’ Bank stock.
51 unchanged sentences
As such, we may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield.
−Removed: Loans acquired with deteriorated credit quality are accounted for in accordance with Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30) if, at acquisition, the loans have evidence of credit quality deterioration since origination and it is probable that all contractually required payments
−Removed: will not be collected.
+Added: Loans acquired with deteriorated credit quality are accounted for in accordance with Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30) if, at acquisition, the loans have evidence of credit quality deterioration since origination and it is probable that all contractually required payments will not be collected.
At acquisition, the Company considers several factors as indicators that an acquired loan has evidence of deterioration in credit quality.
32 unchanged sentences
The amortization of mortgage servicing rights is netted against loan servicing fee income.
−Removed: Goodwill and other intangible assets— The Company accounts for goodwill and other intangible assets in accordance with ASC Topic 350, “Intangibles - Goodwill and Other.” The Company records the excess of the cost of acquired entities over
−Removed: the fair value of identifiable tangible and intangible assets acquired, less liabilities assumed, as goodwill.
+Added: Goodwill and other intangible assets— The Company accounts for goodwill and other intangible assets in accordance with ASC Topic 350, “Intangibles - Goodwill and Other.” The Company records the excess of the cost of acquired entities over the fair value of identifiable tangible and intangible assets acquired, less liabilities assumed, as goodwill.
On a periodic basis, management assesses whether events or changes in circumstances indicate that the carrying amounts of the intangible assets may be impaired.
1 unchanged sentence
A reporting unit is defined as any distinct, separately identifiable component of the Company’s one operating segment for which complete, discrete financial information is available and reviewed regularly by the segment’s management.
−Removed: The Company has one reporting unit as of June 30, 2021 which is related to its banking activities.
+Added: The Company has one reporting unit as of September 30, 2021 which is related to its banking activities.
The impairment testing process is conducted by assigning net assets and goodwill to the Company’s reporting unit.
26 unchanged sentences
The Company regularly reviews the carrying amount of its net deferred tax assets to determine if the establishment of a valuation allowance is necessary.
−Removed: If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established.
+Added: If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be
Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets.
−Removed: In evaluating this available evidence, management considers, among other things, historical performance, expectations
−Removed: of future earnings, the ability to carry back losses to recoup taxes previously paid, the length of statutory carry forward periods, any experience with utilization of operating loss and tax credit carry forwards not expiring, tax planning strategies and timing of reversals of temporary differences.
+Added: In evaluating this available evidence, management considers, among other things, historical performance, expectations of future earnings, the ability to carry back losses to recoup taxes previously paid, the length of statutory carry forward periods, any experience with utilization of operating loss and tax credit carry forwards not expiring, tax planning strategies and timing of reversals of temporary differences.
Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences.
12 unchanged sentences
Loss Contingencies— Loss contingencies, including claims and legal actions arising in the normal course of business, are recorded as liabilities when the likelihood of loss is probable and an amount of loss can be reasonably estimated.
−Removed: Other Comprehensive Income — Accumulated and other comprehensive income or loss is comprised of the unrealized and realized gains and losses on securities available for sale and pension liability adjustments, net of tax, and is shown on the accompanying consolidated statements of comprehensive income.
+Added: Other Comprehensive Income — Accumulated and other comprehensive income or loss is comprised of the unrealized and realized gains and losses on securities available for sale, net of tax, and is shown on the accompanying consolidated statements of comprehensive income.
Operating Segments— While our executive officers monitor the revenue streams of the various banking products and services, operations are managed and financial performance is evaluated on a Company-wide basis.
13 unchanged sentences
ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)— The ASU was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance for determining when the arrangement includes a software license.
−Removed: The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract, with similar costs to develop or obtain internal-use software (and hosting arrangements that include an internal use software license).
−Removed: The accounting for the
−Removed: service element of a hosting arrangement that is a service contract is not affected by the amendments.
+Added: The amendments align the requirements
+Added: for capitalizing implementation costs incurred in a hosting arrangement that is a service contract, with similar costs to develop or obtain internal-use software (and hosting arrangements that include an internal use software license).
+Added: The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments.
This guidance became effective for the Company beginning in the first quarter of 2020.
17 unchanged sentences
NOTE 2 – INVESTMENT SECURITIES
−Removed: The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of June 30, 2021 and December 31, 2020, respectively, were as follows:
+Added: The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of September 30, 2021 and December 31, 2020, respectively, were as follows:
Available for sale securities Amortized
Losses Estimated
−Removed: June 30, 2021
+Added: September 30, 2021
government agency obligations $ 27,862 $ 553 $ 5 $ 28,410
15 unchanged sentences
Losses Estimated
−Removed: June 30, 2021
−Removed: government agency obligations $ 3,500 $ 1 $ — $ 3,501
+Added: September 30, 2021
Obligations of states and political subdivisions $ 4,600 $ 1 $ 2 $ 4,599
5 unchanged sentences
Total held to maturity securities $ 43,551 $ 267 $ 34 $ 43,784
−Removed: As of June 30, 2021, the Bank has pledged U.S.
+Added: As of September 30, 2021, the Bank has pledged U.S.
Government Agency securities with a carrying value of $ 519 and mortgage-backed securities with a carrying value of $ 3,552 as collateral against specific municipal deposits.
−Removed: At June 30, 2021, the Bank has pledged mortgage-backed securities with a carrying value of $ 1,209 as collateral against a borrowing line of credit with the Federal Reserve Bank.
−Removed: However, as of June 30, 2021, there were no borrowings outstanding on this Federal Reserve Bank line of credit.
−Removed: As of June 30, 2021, the Bank also has mortgage-backed securities with a carrying value of $ 358 pledged as collateral to the Federal Home Loan Bank of Des Moines.
+Added: At September 30, 2021, the Bank has pledged mortgage-backed securities with a carrying value of $ 936 as collateral against a borrowing line of credit with the Federal Reserve Bank.
+Added: However, as of September 30, 2021, there were no borrowings outstanding on this Federal Reserve Bank line of credit.
+Added: As of September 30, 2021, the Bank also has mortgage-backed securities with a carrying value of $ 312 pledged as collateral to the Federal Home Loan Bank of Des Moines.
At December 31, 2020, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $ 1,209 as collateral to secure a line of credit with the Federal Reserve Bank.
1 unchanged sentence
As of December 31, 2020, the Bank has pledged certain of its U.S.
−Removed: Government Agency securities with a carrying value of $ 576 and mortgage-backed securities with a carrying value of $ 3,028 as
−Removed: collateral against specific municipal deposits.
+Added: Government Agency securities with a carrying value of $ 576 and mortgage-backed securities with a carrying value of $ 3,028 as collateral against specific municipal deposits.
As of December 31, 2020, the Bank also has mortgage-backed securities with a carrying value of $ 468 pledged as collateral to the Federal Home Loan Bank of Des Moines.
−Removed: For the three and six month periods ended June 30, 2021 gross sales of available for sale securities were $ 1,965 and $ 1,965 , respectively.
−Removed: Gross gains on sale of available for sale securities for the three and six months ended June 30, 2021 were $ 36 and $ 36 , respectively.
−Removed: Gross losses on sale of available for sale securities for the three and six months ended June 30, 2021were $ 0 and $ 0 , respectively.
−Removed: Gross sales of available for sale securities were $ 0 and $ 10,841 for the three and six month periods ended June 30, 2020, respectively.
−Removed: Gross gains on sale of available for sale securities for the three and six months ended June 30, 2020 were $ 0 and $ 156 , respectively.
−Removed: Gross losses on sale of available for sale securities for the three and six months ended June 30, 2020 were $ 0 and $ 0 , respectively.
−Removed: The estimated fair value of securities at June 30, 2021 and December 31, 2020, by contractual maturity, is shown below.
+Added: For the three and nine month periods ended September 30, 2021 gross sales of available for sale securities were $ 7,153 and $ 9,118 , respectively.
+Added: Gross gains on sale of available for sale securities for the three and nine months ended September 30, 2021 were $ 56 and $ 92 , respectively.
+Added: Gross losses on sale of available for sale securities for the three and nine months ended September 30, 2021 were $ 14 and $ 14 , respectively.
+Added: Gross sales of available for sale securities were $ 0 and $ 10,841 for the three and nine month periods ended September 30, 2020, respectively.
+Added: Gross gains on sale of available for sale securities for the three and nine months ended September 30, 2020 were $ 0 and $ 157 , respectively.
+Added: Gross losses on sale of available for sale securities for the three and nine months ended September 30, 2020 were $ 0 and $ 1 , respectively.
+Added: The estimated fair value of securities at September 30, 2021 and December 31, 2020, by contractual maturity, is shown below.
Expected maturities will differ from contractual maturities on mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Expected maturities may differ from contractual maturities on certain agency and municipal securities due to the call feature.
−Removed: June 30, 2021 December 31, 2020
+Added: September 30, 2021 December 31, 2020
Available for sale securities Amortized
9 unchanged sentences
Total available for sale securities $ 232,725 $ 234,425 $ 142,177 $ 144,233
−Removed: June 30, 2021 December 31, 2020
+Added: September 30, 2021 December 31, 2020
Held to maturity securities Amortized
2 unchanged sentences
Cost Estimated
−Removed: Due in one year or less $ — $ — $ —
Due after one year through five years $ 4,300 $ 4,301 $ 200 $ 200
3 unchanged sentences
Total held to maturity securities $ 67,739 $ 65,867 $ 43,551 $ 43,784
−Removed: Securities with unrealized losses at June 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
+Added: Securities with unrealized losses at September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
Less than 12 Months 12 Months or More Total
3 unchanged sentences
Value Unrealized
−Removed: June 30, 2021
+Added: September 30, 2021
government agency obligations $ — $ — $ 1,309 $ 5 $ 1,309 $ 5
15 unchanged sentences
Value Unrealized
−Removed: June 30, 2021
+Added: September 30, 2021
Obligations of states and political subdivisions $ 398 $ 2 $ — $ — $ 398 $ 2
66 unchanged sentences
This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future.
−Removed: Below is a summary of originated and acquired loans by type and risk rating as of June 30, 2021:
+Added: Below is a summary of originated and acquired loans by type and risk rating as of September 30, 2021:
1 to 5 6 7 8 9 TOTAL
107 unchanged sentences
Loans receivable, net $ 1,220,538
−Removed: The following table summarizes SBA PPP loans at June 30, 2021 and December 31, 2020:
−Removed: (Dollars in Millions)
+Added: The following table summarizes SBA PPP loans at September 30, 2021 and December 31, 2020:
2020 Originations 2021 Originations Total
3 unchanged sentences
2021 SBA PPP loan forgiveness and fee accretion ( 52,238 ) ( 1,706 ) — ( 44 ) ( 52,238 ) ( 1,750 )
−Removed: Balance, June 30, 2021 $ 21,407 $ 308 $ 53,518 $ 3,109 $ 74,925 $ 3,417
+Added: SBA PPP loans, March 31, 2021 71,464 1,285 47,467 1,726 118,931 3,011
+Added: 2021 SBA PPP loan originations — — 8,323 1,715 8,323 1,715
+Added: 2021 SBA PPP loan forgiveness and fee accretion ( 50,057 ) ( 977 ) ( 2,272 ) ( 332 ) ( 52,329 ) ( 1,309 )
+Added: SBA PPP loans, June 30, 2021 21,407 308 53,518 $ 3,109 74,925 3,417
+Added: 2021 SBA PPP loan originations — — 64 9 64 9
+Added: 2021 SBA PPP loan forgiveness and fee accretion ( 18,286 ) ( 279 ) ( 25,402 ) ( 1,599 ) ( 43,688 ) ( 1,878 )
+Added: SBA PPP loans, September 30, 2021 $ 3,121 $ 29 $ 28,180 $ 1,519 $ 31,301 $ 1,548
Allowance for Loan Losses - The ALL represents management’s estimate of probable and inherent credit losses in the Bank’s loan portfolio.
8 unchanged sentences
Changes in the ALL by loan type for the periods presented below were as follows:
−Removed: Commercial/Agriculture Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
−Removed: Three months ended June 30, 2021
+Added: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
+Added: Three months ended September 30, 2021
Allowance for Loan Losses:
−Removed: Beginning balance, April 1, 2021 $ 11,109 $ 1,633 $ 941 $ 450 $ 895 $ 15,028
+Added: Beginning balance, July 1, 2021 $ 10,890 $ 2,182 $ 771 $ 362 $ 855 $ 15,060
Charge-offs — — — ( 12 ) — ( 12 )
1 unchanged sentence
Provision 1,004 ( 218 ) ( 185 ) ( 80 ) ( 83 ) 438
−Removed: Allowance allocation adjustment — —
Total allowance on originated loans 11,898 1,974 586 275 772 15,505
1 unchanged sentence
Other acquired loans:
−Removed: Beginning balance, April 1, 2021 1,301 94 388 49 — 1,832
+Added: Beginning balance, July 1, 2021 1,468 81 231 5 — 1,785
Charge-offs — — — ( 24 ) — ( 24 )
1 unchanged sentence
Provision ( 371 ) ( 10 ) ( 106 ) 49 — ( 438 )
−Removed: Allowance allocation adjustment — —
Total allowance on other acquired loans 1,097 74 126 30 — 1,327
Total allowance on acquired loans 1,097 74 126 30 — 1,327
−Removed: Ending balance, June 30, 2021 $ 12,358 $ 2,263 $ 1,002 $ 367 $ 855 $ 16,845
−Removed: Commercial/Agriculture Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
−Removed: Six months ended June 30, 2021
+Added: Ending balance, September 30, 2021 $ 12,995 $ 2,048 $ 712 $ 305 $ 772 $ 16,832
+Added: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
+Added: Nine months ended September 30, 2021
Allowance for Loan Losses:
12 unchanged sentences
Total allowance on acquired loans 1,097 74 126 30 — 1,327
−Removed: Ending balance, June 30, 2021 $ 12,358 $ 2,263 $ 1,002 $ 367 $ 855 $ 16,845
−Removed: Allowance for Loan Losses at June 30, 2021:
+Added: Ending balance, September 30, 2021 $ 12,995 $ 2,048 $ 712 $ 305 $ 772 $ 16,832
+Added: Allowance for Loan Losses at September 30, 2021:
Amount of allowance for loan losses arising from loans individually evaluated for impairment $ 1,033 $ 271 $ 59 $ — $ — $ 1,363
Amount of allowance for loan losses arising from loans collectively evaluated for impairment $ 11,962 $ 1,777 $ 653 $ 305 $ 772 $ 15,469
−Removed: Loans Receivable as of June 30, 2021 —
+Added: Loans Receivable as of September 30, 2021:
Ending balance of originated loans $ 792,115 $ 147,272 $ 72,907 $ 27,103 $ — $ 1,039,397
6 unchanged sentences
collectively evaluated for impairment $ 933,774 $ 161,916 $ 95,997 $ 27,328 $ — $ 1,219,015
−Removed: Commercial/Agriculture Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
−Removed: Three months ended June 30, 2020
+Added: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
+Added: Three months ended September 30, 2020
Allowance for Loan Losses:
−Removed: Beginning balance, April 1, 2020 $ 7,277 $ 1,659 $ 924 $ 530 $ 460 $ 10,850
+Added: Beginning balance, July 1, 2020 $ 8,297 $ 1,778 $ 980 $ 480 $ 574 $ 12,109
Charge-offs — ( 103 ) ( 4 ) ( 10 ) — ( 117 )
4 unchanged sentences
Other acquired loans:
−Removed: Beginning balance, April 1, 2020 665 160 115 45 — 985
+Added: Beginning balance, July 1, 2020 746 334 112 72 — 1,264
Charge-offs — — ( 47 ) — — ( 47 )
3 unchanged sentences
Total allowance on acquired loans 1,370 306 264 87 — 2,027
−Removed: Ending balance, June 30, 2020 $ 9,043 $ 2,112 $ 1,092 $ 552 $ 574 $ 13,373
−Removed: Commercial/Agriculture Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
−Removed: Six months ended June 30, 2020
+Added: Ending balance, September 30, 2020 $ 10,171 $ 2,169 $ 1,227 $ 639 $ 630 $ 14,836
+Added: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
+Added: Nine months ended September 30, 2020
Allowance for Loan Losses:
12 unchanged sentences
Total allowance on acquired loans 1,370 306 264 87 — 2,027
−Removed: Ending balance, June 30, 2020 $ 9,043 $ 2,112 $ 1,092 $ 552 $ 574 $ 13,373
−Removed: Allowance for Loan Losses at June 30, 2020:
+Added: Ending balance, September 30, 2020 $ 10,171 $ 2,169 $ 1,227 $ 639 $ 630 $ 14,836
+Added: Allowance for Loan Losses at September 30, 2020:
Amount of allowance for loan losses arising from loans individually evaluated for impairment $ 772 $ 159 $ 249 $ 1 $ — $ 1,181
Amount of allowance for loan losses arising from loans collectively evaluated for impairment $ 9,399 $ 2,010 $ 978 $ 638 $ 630 $ 13,655
−Removed: Loans Receivable as of June 30, 2020:
+Added: Loans Receivable as of September 30, 2020
Ending balance of originated loans $ 535,698 $ 243,449 $ 96,647 $ 41,756 $ — $ 917,550
6 unchanged sentences
collectively evaluated for impairment $ 739,226 $ 269,602 $ 138,568 $ 42,799 $ — $ 1,190,195
−Removed: Commercial/Agriculture Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
+Added: Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total
Allowance for Loan Losses at December 31, 2020:
11 unchanged sentences
Loans receivable by loan type as of the end of the periods shown below were as follows:
−Removed: Commercial/Agriculture Real Estate Loans C&I/Agricultural Operating Residential Mortgage Consumer Installment Totals
−Removed: June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020
+Added: Commercial/Agricultural Real Estate Loans C&I/Agricultural Operating Residential Mortgage Consumer Installment Totals
+Added: September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020
Performing loans
8 unchanged sentences
(1) Nonperforming loans are either 90+ days past due or nonaccrual.
−Removed: As of June 30, 2021, the Company had $ 238,306 in unused commitments, compared to $ 247,324 in unused commitments as of December 31, 2020.
−Removed: An aging analysis of the Company’s commercial/agricultural real estate, C&I, agricultural operating, residential mortgage, consumer installment and purchased third party loans as of June 30, 2021 and December 31, 2020, respectively, was as follows:
+Added: As of September 30, 2021 the Company had $ 320,105 in unused commitments, compared to $ 247,324 in unused commitments as of December 31, 2020.
+Added: An aging analysis of the Company’s commercial/agricultural real estate, C&I, agricultural operating, residential mortgage, consumer installment and purchased third party loans as of September 30, 2021 and December 31, 2020, respectively, was as follows:
30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 89 Days Past Due and Accruing Total
Past Due and Accruing Nonaccrual Loans Total Past Due Accruing and Nonaccrual Loans Current Total
−Removed: June 30, 2021
+Added: September 30, 2021
Commercial/Agricultural real estate:
31 unchanged sentences
Total $ 18,886 $ 1,723 $ 586 $ 21,195 $ 10,747 $ 31,942 $ 1,214,947 $ 1,246,889
−Removed: At June 30, 2021, the Company has identified impaired loans of $ 38,867 , consisting of $ 16,597 TDR loans, the carrying amount of purchased credit impaired loans of $ 15,613 and $ 6,657 of substandard non-TDR loans.
−Removed: The $ 38,867 total of impaired loans includes $ 11,603 of performing TDR loans.
−Removed: At December 31, 2020, the Company has identified impaired loans of $ 43,397 , consisting of $ 18,477 TDR loans, the carrying amount of purchased credit impaired loans of $ 16,859 and $ 8,061 of substandard non-TDR loans.
−Removed: The $ 43,397 total of impaired loans includes $ 11,722 of performing TDR loans.
+Added: At September 30, 2021, the Company individually evaluated loans for impairment with a recorded investment of $ 37,191 , consisting of (1) $ 11,499 purchased credit impaired (“PCI”) loans, with a carrying amount of $ 10,813 ;
+Added: (2) $ 13,198 TDR loans, net of TDR PCI loans;
+Added: and (3) $ 12,494 of substandard non-TDR, non-PCI loans.
+Added: The $ 37,191 total of loans individually evaluated for impairment includes $ 11,323 of performing TDR loans.
+Added: At December 31, 2020, the Company individually evaluated loans for impairment with a recorded investment of $ 43,397 , consisting of (1) $ 17,946 PCI loans, with a carrying amount of $ 16,859 ;
+Added: (2) $ 15,634 TDR loans, net of TDR PCI loans;
+Added: and (3) $ 9,817 of substandard non-TDR, non-PCI loans.
+Added: The $ 43,397 total of loans individually evaluated for impairment includes $ 11,722 of performing TDR loans.
A loan is identified as impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement.
Performing TDRs consist of loans that have been modified and are performing in accordance with the modified terms for a sufficient length of time, generally six months, or loans that were modified on a proactive basis.
−Removed: A summary of the Company’s impaired loans as of June 30, 2021, December 31, 2020 and June 30, 2020 was as follows:
−Removed: Three Months Ended Six Months Ended
+Added: A summary of the Company’s loans individually evaluated for impairment as of September 30, 2021, December 31, 2020 and September 30, 2020 was as follows:
+Added: Three Months Ended Nine Months Ended
Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized
−Removed: June 30, 2021
+Added: September 30, 2021
With No Related Allowance Recorded:
−Removed: Commercial/agriculture real estate $ 22,416 $ 22,416 $ — $ 21,065 $ 252 $ 23,215 $ 491
+Added: Commercial/Agricultural real estate $ 16,820 $ 16,820 $ — $ 19,618 $ 172 $ 20,417 $ 663
C&I/Agricultural operating 3,451 3,451 — 3,484 29 4,893 119
3 unchanged sentences
With An Allowance Recorded:
−Removed: Commercial/agriculture real estate $ 1,191 $ 1,191 $ 796 $ 3,213 $ — $ 1,741 $ 62
+Added: Commercial/Agricultural real estate $ 5,924 $ 5,924 $ 1,033 $ 3,558 $ — $ 4,107 $ 62
C&I/Agricultural operating 3,000 3,000 271 3,041 41 1,891 82
2 unchanged sentences
Total $ 9,338 $ 9,338 $ 1,363 $ 7,146 $ 43 $ 6,746 $ 161
−Removed: June 30, 2021 Totals:
−Removed: Commercial/agriculture real estate $ 23,607 $ 23,607 $ 796 $ 24,278 $ 252 $ 24,956 $ 553
+Added: September 30, 2021 Totals:
+Added: Commercial/Agricultural real estate $ 22,744 $ 22,744 $ 1,033 $ 23,176 $ 172 $ 24,524 $ 725
C&I/Agricultural operating 6,451 6,451 271 6,525 70 6,784 201
5 unchanged sentences
With No Related Allowance Recorded:
−Removed: Commercial/agriculture real estate $ 24,013 $ 24,013 $ — $ 32,264 $ 1,894
+Added: Commercial/Agricultural real estate $ 24,013 $ 24,013 $ — $ 32,264 $ 1,894
C&I/Agricultural operating 6,334 6,334 — 7,906 284
3 unchanged sentences
With An Allowance Recorded:
−Removed: Commercial/agriculture real estate $ 2,290 $ 2,290 $ 698 $ 2,217 $ 100
+Added: Commercial/Agricultural real estate $ 2,290 $ 2,290 $ 698 $ 2,217 $ 100
C&I/Agricultural operating 781 781 190 636 22
3 unchanged sentences
December 31, 2020 Totals
−Removed: Commercial/agriculture real estate $ 26,303 $ 26,303 $ 698 $ 34,481 $ 1,994
+Added: Commercial/Agricultural real estate $ 26,303 $ 26,303 $ 698 $ 34,481 $ 1,994
C&I/Agricultural operating 7,115 7,115 190 8,542 306
2 unchanged sentences
Total $ 43,397 $ 43,397 $ 1,115 $ 53,300 $ 2,835
−Removed: Three Months Ended Six Months Ended
+Added: Three Months Ended Nine Months Ended
Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized
−Removed: June 30, 2020
+Added: September 30, 2020
With No Related Allowance Recorded:
−Removed: Commercial/agriculture real estate $ 30,268 $ 30,268 $ — $ 32,114 $ 369 $ 35,391 $ 932
+Added: Commercial/Agricultural real estate $ 30,419 $ 30,419 $ — $ 30,344 $ 454 $ 35,467 $ 1,374
C&I/Agricultural operating 6,860 6,860 — 7,070 35 8,169 188
3 unchanged sentences
With An Allowance Recorded:
−Removed: Commercial/agriculture real estate $ 4,017 $ 4,017 $ 815 $ 3,264 $ 12 $ 3,080 $ 18
+Added: Commercial/Agricultural real estate $ 3,177 $ 3,177 $ 772 $ 3,597 $ 48 $ 2,660 $ 73
C&I/Agricultural operating 1,034 1,034 159 669 — 762 12
2 unchanged sentences
Total $ 5,332 $ 5,332 $ 1,181 $ 5,245 $ 55 $ 4,732 $ 121
−Removed: June 30, 2020 Totals:
−Removed: Commercial/agriculture real estate $ 34,285 $ 34,285 $ 815 $ 35,378 $ 381 $ 38,471 $ 950
+Added: September 30, 2020 Totals:
+Added: Commercial/Agricultural real estate $ 33,596 $ 33,596 $ 772 $ 33,941 $ 502 $ 38,127 $ 1,447
C&I/Agricultural operating 7,894 7,894 159 7,739 35 8,931 200
7 unchanged sentences
If a TDR is placed on nonaccrual status, it remains there until a sufficient period of performance under the restructured terms has occurred at which time it is returned to accrual status.
−Removed: There were two delinquent accruing TDR greater than 60 days past due with a recorded investment of $ 133 at June 30, 2021, compared to one such loan with a recorded investment of $ 20 at December 31, 2020.
−Removed: Following is a summary of TDR loans by accrual status as of June 30, 2021 and December 31, 2020.
−Removed: June 30, 2021 December 31, 2020
+Added: There was one delinquent accruing TDR loan greater than 60 days past due with a recorded investment of $ 42 at September 30, 2021, compared to one such loan with a recorded investment of $ 20 at December 31, 2020.
+Added: Following is a summary of TDR loans by accrual status as of September 30, 2021 and December 31, 2020.
+Added: September 30, 2021 December 31, 2020
Troubled debt restructure loans:
2 unchanged sentences
Total $ 15,689 $ 18,477
−Removed: There were no loan commitments meeting our TDR criteria as of June 30, 2021 and December 31, 2020.
−Removed: There were unused lines of credit totaling $ 29 and $ 15 meeting our TDR criteria as of June 30, 2021 and December 31, 2020, respectively.
−Removed: The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the three and six months ended June 30, 2021 and June 30, 2020:
+Added: There were two loan commitments totaling $ 160 meeting our TDR criteria as of September 30, 2021 and no loan commitments meeting our TDR criteria as of December 31, 2020.
+Added: There were unused lines of credit totaling $ 51 and $ 15 meeting our TDR criteria as of September 30, 2021 and December 31, 2020, respectively.
+Added: The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the three and nine months ended September 30, 2021 and September 30, 2020:
Number of Contracts Maturity Extension Modified Payment Modified Under- writing Other Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve
−Removed: Three months ended June 30, 2021
−Removed: Commercial/agriculture real estate 1 $ 1 $ — $ — $ — $ 1 $ 1 $ —
+Added: Three months ended September 30, 2021
+Added: Commercial/Agricultural real estate — $ — $ — $ — $ — $ — $ — $ —
C&I/Agricultural operating — — — — — — — —
3 unchanged sentences
Number of Contracts Maturity Extension Modified Payment Modified Under- writing Other Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve
−Removed: Six months ended June 30, 2021
−Removed: Commercial/agriculture real estate 3 $ 39 $ 81 $ — $ — $ 120 $ 120 $ —
+Added: Nine months ended September 30, 2021
+Added: Commercial/Agricultural real estate 3 $ 39 $ 81 $ — $ — $ 120 $ 120 $ —
C&I/Agricultural operating 1 — — 240 — 240 240 —
3 unchanged sentences
Number of Contracts Maturity Extension Modified Payment Modified Under- writing Other Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve
−Removed: Three months ended June 30, 2020
−Removed: Commercial/agriculture real estate 6 $ 644 $ 198 $ — $ — $ 842 $ 842 $ —
+Added: Three months ended September 30, 2020
+Added: Commercial/Agricultural real estate 3 $ 3,550 $ — $ 276 $ — $ 3,826 $ 3,826 $ —
C&I/Agricultural operating 2 3,000 — — — 3,000 3,000 —
3 unchanged sentences
Number of Contracts Maturity Extension Modified Payment Modified Under- writing Other Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve
−Removed: Six months ended June 30, 2020
−Removed: Commercial/agriculture real estate 9 $ 892 $ 198 $ 17 $ — $ 1,107 $ 1,107 $ —
+Added: Nine months ended September 30, 2020
+Added: Commercial/Agricultural real estate 12 $ 4,442 $ 198 $ 293 $ — $ 4,933 $ 4,933 $ —
C&I/Agricultural operating 5 3,295 78 — — 3,373 3,373 —
2 unchanged sentences
Totals 32 $ 7,888 $ 1,134 $ 414 $ — $ 9,436 $ 9,436 $ —
−Removed: A summary of loans by loan segment modified in a troubled debt restructuring as of June 30, 2021 and June 30, 2020, was as follows:
−Removed: June 30, 2021 June 30, 2020
+Added: A summary of loans by loan segment modified in a troubled debt restructuring as of September 30, 2021 and September 30, 2020, was as follows:
+Added: September 30, 2021 September 30, 2020
Modifications Recorded
2 unchanged sentences
Troubled debt restructurings:
−Removed: Commercial/agriculture real estate 25 $ 8,298 34 $ 7,140
+Added: Commercial/Agricultural real estate 23 $ 8,048 34 $ 10,517
C&I/Agricultural operating 8 4,285 17 5,358
2 unchanged sentences
Total troubled debt restructurings 83 $ 15,689 108 $ 19,778
−Removed: The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the three and six months ended June 30, 2021 and June 30, 2020, as well as the recorded investment in these restructured loans as of June 30, 2021 and June 30, 2020:
+Added: The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the three and nine months ended September 30, 2021 and September 30, 2020, as well as the recorded investment in these restructured loans as of September 30, 2021 and September 30, 2020:
Three Months Ended
−Removed: June 30, 2021 June 30, 2020
+Added: September 30, 2021 September 30, 2020
Modifications Recorded
2 unchanged sentences
Troubled debt restructurings:
−Removed: Commercial/agriculture real estate — $ — — $ —
+Added: Commercial/Agricultural real estate — $ — — $ —
C&I/Agricultural operating — — 1 250
2 unchanged sentences
Total troubled debt restructurings — $ — 1 $ 250
−Removed: Six Months Ended
−Removed: June 30, 2021 June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2021 September 30, 2020
Modifications Recorded
2 unchanged sentences
Troubled debt restructurings:
−Removed: Commercial/agriculture real estate — $ — 5 $ 1,892
+Added: Commercial/Agricultural real estate — $ — 5 $ 1,892
C&I/Agricultural operating — — 1 250
4 unchanged sentences
The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows:
−Removed: June 30, 2021 December 31, 2020
+Added: September 30, 2021 December 31, 2020
Accountable for under ASC 310-30 (Purchased Credit Impaired “PCI” loans)
13 unchanged sentences
Accretion ( 792 ) ( 756 )
−Removed: Balance at end of period, June 30 $ 3,524 $ 4,032
+Added: Balance at end of period, September 30 $ 3,380 $ 5,050
The following table provides changes in non-accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality:
−Removed: June 30, 2021 December 31, 2020
+Added: September 30, 2021 December 31, 2020
Balance at beginning of period $ 1,087 $ 6,290
7 unchanged sentences
Mortgage servicing rights-- Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets.
−Removed: The unpaid balances of these loans as of June 30, 2021 and December 31, 2020 were $ 554.5 million and $ 553.7 million, respectively, and consisted of one to four family residential real estate loans.
+Added: The unpaid balances of these loans as of September 30, 2021 and December 31, 2020 were $ 557,148 and $ 553,655 , respectively, and consisted of one to four family residential real estate loans.
These loans are serviced primarily for the Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and the Federal National Mortgage Association.
−Removed: Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $ 5.0 million and $ 2.9 million at June 30, 2021 and December 31, 2020, respectively.
−Removed: Mortgage servicing rights activity for the three and six month periods ended June 30, 2021 and June 30, 2020 were as follows:
−Removed: As of and for the Three Months Ended As of and for the Three Months Ended As of and for the Six Months Ended As of and for the Six Months Ended
+Added: Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $ 6,669 and $ 2,868 at September 30, 2021 and December 31, 2020, respectively.
+Added: Mortgage servicing rights activity for the three and nine month periods ended September 30, 2021 and September 30, 2020 were as follows:
+Added: As of and for the Three Months Ended As of and for the Three Months Ended As of and for the Nine Months Ended As of and for the Nine Months Ended
+Added: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Mortgage servicing rights:
−Removed: June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
Mortgage servicing rights, beginning of period $ 4,964 $ 4,940 $ 5,266 $ 4,541
1 unchanged sentence
Amortization during the period ( 418 ) ( 353 ) ( 1,322 ) ( 908 )
−Removed: 4,964 4,940 4,964 4,940
+Added: Mortgage servicing rights, end of period 4,802 5,179 4,802 5,179
Valuation allowance:
7 unchanged sentences
The current period change in valuation allowance is included in non-interest expense as mortgage servicing rights expense, net on the consolidated statement of operations.
−Removed: Servicing fees totaled $ 352 and $ 341 for the three months ended June 30, 2021 and June 30, 2020, respectively.
−Removed: Servicing fees totaled $ 704 and $ 680 for the six months ended June 30, 2021 and June 30, 2020, respectively.
+Added: Servicing fees totaled $ 354 and $ 353 for the three months ended September 30, 2021 and September 30, 2020, respectively.
+Added: Servicing fees totaled $ 1,058 and $ 1,033 for the nine months ended September 30, 2021 and September 30, 2020, respectively.
Late fees and ancillary fees related to loan servicing are not material.
2 unchanged sentences
Central to the valuation model is the discount rate.
−Removed: Fair value at June 30, 2021 was determined using discount rates ranging from 9 % to 12 %.
+Added: Fair value at September 30, 2021 was determined using discount rates ranging from 9 % to 12 %.
Other assumptions utilized in the valuation model include, but are not limited to, prepayment speed, servicing costs, delinquencies, costs of advances, foreclosure costs, ancillary income, and income earned on float and escrow.
NOTE 5 – LEASES
−Removed: We have operating leases for our corporate offices ( 1 ) and bank branch offices ( 5 ).
+Added: We have operating leases for our corporate offices ( 1 ), bank branch offices ( 5 ), and an ATM location ( 1 ).
Our leases have remaining lease terms ranging from approximately 1.50 to 6.75 years, some of which include options to extend the leases for up to 5 additional years.
−Removed: As of June 30, 2021, we have no additional lease commitments that have not yet commenced.
+Added: As of September 30, 2021, we have no additional lease commitments that have not yet commenced.
The Company also leases a portion of some of its facilities and receives rental income from such lease agreements, all of which are considered operating leases.
−Removed: Six Months Ended
−Removed: June 30, 2021 June 30, 2020
+Added: Nine Months Ended
+Added: September 30, 2021 September 30, 2020
The components of total lease cost were as follows:
7 unchanged sentences
Operating cash flows from operating leases $ 415 $ 477
−Removed: June 30, 2021 December 31, 2020
+Added: Right-of-use assets obtained in exchange for lease obligations:
+Added: Operating leases $ 2 $ —
+Added: September 30, 2021 December 31, 2020
Supplemental balance sheet information related to leases was as follows:
13 unchanged sentences
NOTE 6 – DEPOSITS
−Removed: The following is a summary of deposits by type at June 30, 2021 and December 31, 2020, respectively:
−Removed: June 30, 2021 December 31, 2020
+Added: The following is a summary of deposits by type at September 30, 2021 and December 31, 2020, respectively:
+Added: September 30, 2021 December 31, 2020
Non-interest bearing demand deposits $ 280,611 $ 238,348
6 unchanged sentences
$ 2,520 $ 2,516
−Removed: At June 30, 2021, the scheduled maturities of time deposits were as follows for the year ended, except December 31, 2021 which is the six months ended:
+Added: At September 30, 2021, the scheduled maturities of time deposits were as follows for the year ended, except December 31, 2021 which is the three months ended:
December 31, 2021 $ 47,190
5 unchanged sentences
Total $ 225,524
−Removed: Time deposits of $250 or more were $ 34,245 and $ 46,660 at June 30, 2021 and December 31, 2020, respectively.
+Added: Time deposits of $250 or more were $ 24,741 and $ 46,660 at September 30, 2021 and December 31, 2020, respectively.
NOTE 7 – FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES AND OTHER BORROWINGS
−Removed: A summary of Federal Home Loan Bank advances and other borrowings at June 30, 2021 and December 31, 2020 is as follows:
−Removed: June 30, 2021 December 31, 2020
+Added: A summary of Federal Home Loan Bank advances and other borrowings at September 30, 2021 and December 31, 2020 is as follows:
+Added: September 30, 2021 December 31, 2020
Stated Maturity Amount Range of Stated Rates Amount Range of Stated Rates
16 unchanged sentences
Totals $ 169,912 $ 181,826
−Removed: (1) The FHLB advances bear fixed rates, require interest-only monthly payments, and are collateralized by a blanket lien on pre-qualifying first mortgages, home equity lines, multi-family loans and certain other loans which had a pledged balance of $ 740,586 and $ 723,862 at June 30, 2021 and December 31, 2020, respectively.
−Removed: At June 30, 2021, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $ 144,714 compared to $ 118,391 as of December 31, 2020.
−Removed: (2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $ 123,530 and $ 162,530 , during the six months ended June 30, 2021 and the twelve months ended December 31, 2020, respectively.
−Removed: (3) The weighted-average interest rates on FHLB borrowings maturing within twelve months as of June 30, 2021 and December 31, 2020 were 1.97 % and 1.02 %, respectively.
−Removed: (4) FHLB term notes totaling $ 55,000 , with various maturity dates in 2029 and 2030, can be called or replaced by the FHLB on a quarterly basis, beginning approximately three months after the initial advance.
+Added: (1) The FHLB advances bear fixed rates, require interest-only monthly payments, and are collateralized by a blanket lien on pre-qualifying first mortgages, home equity lines, multi-family loans and certain other loans which had a pledged balance of $ 782,715 and $ 723,862 at September 30, 2021 and December 31, 2020, respectively.
+Added: At September 30, 2021, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $ 162,875 compared to $ 118,391 as of December 31, 2020.
+Added: (2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $ 123,530 and $ 162,530 , during the nine months ended September 30, 2021 and the twelve months ended December 31, 2020, respectively.
+Added: (3) The weighted-average interest rates on FHLB borrowings maturing within twelve months as of September 30, 2021 and December 31, 2020 were 2.45 % and 1.02 %, respectively.
+Added: (4) FHLB term notes totaling $ 55,000 , with various maturity dates in 2029 and 2030, can be called or replaced by the FHLB on a quarterly basis.
(5) Senior notes, entered into by the Company in June 2019 consist of the following:
12 unchanged sentences
This irrevocable standby letter of credit (“LOC”) is supported by loan collateral as an alternative to directly pledging investment securities on behalf of a municipal customer as collateral for their interest bearing deposit balances.
−Removed: These balances were $ 167,425 and $ 179,400 at June 30, 2021 and December 31, 2020, respectively.
+Added: These balances were $ 180,250 and $ 179,400 at September 30, 2021 and December 31, 2020, respectively.
Federal Reserve Bank Paycheck Protection Program Liquidity Facility (“FRB PPPLF”) Program
−Removed: The Bank has originated Small Business Association’s Paycheck Protection Program (“SBA PPP”) loans and has complied with the requirements to pledge these loans to the FRB PPPLF program which provides 100% funding for SBA PPP loans upon request.
−Removed: At June 30, 2021 the Bank had $ 74,925 of borrowing capacity under the Federal Reserve SBA PPP facility, which the Federal Reserve established in 2020.
−Removed: The Bank has no outstanding loan balances under this facility at June 30, 2021 and December 31, 2020.
−Removed: Maximum month-end borrowed amounts outstanding under this agreement were $ 0 and $ 25,136 , during the six months ended June 30, 2021 and the twelve months ended December 31, 2020, respectively.
−Removed: This FRB PPPLF program is scheduled to expire on July 30, 2021.
+Added: The Bank has originated Small Business Association’s Paycheck Protection Program (“SBA PPP”) loans and has complied with the requirements to pledge these loans to the FRB PPPLF program which provides 100% funding for SBA PPP loans upon request This FRB PPPLF program expired on July 30, 2021.
+Added: The Bank has no outstanding loan balances under this facility at September 30, 2021 and December 31, 2020.
+Added: Maximum month-end borrowed amounts outstanding under this agreement were $ 0 and $ 25,136 , during the nine months ended September 30, 2021 and the twelve months ended December 31, 2020, respectively.
In July 2021, the Bank pledged these SBA PPP loans to the FHLB.
8 unchanged sentences
If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.
−Removed: At June 30, 2021, the Bank was categorized as “Well Capitalized”, under Prompt Corrective Action Provisions.
−Removed: The Bank’s Tier 1 (leverage) and risk-based capital ratios at June 30, 2021 and December 31, 2020, respectively, are presented below:
+Added: At September 30, 2021, the Bank was categorized as “Well Capitalized”, under Prompt Corrective Action Provisions.
+Added: The Bank’s Tier 1 (leverage) and risk-based capital ratios at September 30, 2021 and December 31, 2020, respectively, are presented below:
Actual For Capital Adequacy
3 unchanged sentences
Amount Ratio Amount Ratio Amount Ratio
−Removed: As of June 30, 2021
+Added: As of September 30, 2021
Total capital (to risk weighted assets) $ 181,257 13.6 % $ 106,602 > = 8.0 % $ 133,252 > = 10.0 %
7 unchanged sentences
Tier 1 leverage ratio (to adjusted total assets) 157,081 9.9 % 63,718 > = 4.0 % 79,647 > = 5.0 %
−Removed: The Company’s Tier 1 (leverage) and risk-based capital ratios at June 30, 2021 and December 31, 2020, respectively, are presented below:
+Added: The Company’s Tier 1 (leverage) and risk-based capital ratios at September 30, 2021 and December 31, 2020, respectively, are presented below:
Actual For Capital Adequacy
Amount Ratio Amount Ratio
−Removed: As of June 30, 2021
+Added: As of September 30, 2021
Total capital (to risk weighted assets) $ 175,558 13.2 % 106,602 > = 8.0 %
11 unchanged sentences
The aggregate number of shares of common stock reserved and available for issuance under the 2018 Equity Incentive Plan is 350,000 shares.
−Removed: As of June 30, 2021, 163,974 restricted shares had been granted under this plan.
−Removed: As of June 30, 2021, no stock options had been granted under this plan.
+Added: As of September 30, 2021, 163,974 restricted shares had been granted under this plan.
+Added: As of September 30, 2021, no stock options had been granted under this plan.
In February 2008, the Company’s stockholders approved the Company’s 2008 Equity Incentive Plan for a term of 10 years.
Due to the plan’s expiration, no new awards can be granted under this plan.
−Removed: As of June 30, 2021,there are 1,800 awarded unvested restricted shares and 69,700 awarded unexercised options.
+Added: As of September 30, 2021, there are 900 awarded unvested restricted shares and 65,900 awarded unexercised options remaining from the plan.
Restricted shares granted under the 2008 Equity Incentive Plan were awarded at no cost to the employee and vest pro rata over a two to five-year period from the grant date.
1 unchanged sentence
Unexercised incentive stock options expire within 10 years of the grant date.
−Removed: Net compensation expense related to restricted stock awards from these plans was $ 222 and $ 393 for the three and six months ended June 30, 2021, compared to $ 158 and $ 297 for the three and six months ended June 30, 2020.
+Added: Net compensation expense related to restricted stock awards from these plans was $ 221 and $ 614 for the three and nine months ended September 30, 2021, compared to $ 165 and $ 462 for the three and nine months ended September 30, 2020.
Restricted Common Stock Award
−Removed: June 30, 2021 December 31, 2020
+Added: September 30, 2021 December 31, 2020
Number of Shares Weighted
8 unchanged sentences
Accordingly, management records compensation expense based on the value of the award as measured on the grant date and then the Company recognizes that cost over the vesting period for the award.
−Removed: The compensation cost recognized for stock option-based employee compensation related to these plans for the three and six month periods ended June 30, 2021 was $ 2 and $ 5 , respectively.
−Removed: The compensation cost recognized for stock option-based employee compensation related to these plans for the three and six month period ended June 30, 2020 was $ 4 and $ 8 , respectively.
+Added: The compensation cost recognized for stock option-based employee compensation related to these plans for the three and nine month periods ended September 30, 2021 was $ 2 and $ 7 , respectively.
+Added: The compensation cost recognized for stock option-based employee compensation related to these plans for the three and nine month period ended September 30, 2020 was $ 3 and $ 11 , respectively.
Common Stock Option Awards
2 unchanged sentences
Term in Years Aggregate
−Removed: June 30, 2021
+Added: September 30, 2021
Outstanding at beginning of year 72,300 $ 11.05
10 unchanged sentences
Information related to the 2008 Equity Incentive Plan for the respective periods follows:
−Removed: Six months ended June 30, 2021 Twelve months ended December 31, 2020
+Added: Nine months ended September 30, 2021 Twelve months ended December 31, 2020
Intrinsic value of options exercised $ 28 $ —
14 unchanged sentences
Assets Measured on a Recurring Basis
−Removed: The following tables present the financial instruments measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:
+Added: The following tables present the financial instruments measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020:
Value Quoted Prices in
3 unchanged sentences
(Level 2) Significant
−Removed: June 30, 2021
+Added: September 30, 2021
Investment securities:
16 unchanged sentences
Assets Measured on Nonrecurring Basis
−Removed: The following tables present the financial instruments measured at fair value on a nonrecurring basis as of June 30, 2021 and December 31, 2020:
+Added: The following tables present the financial instruments measured at fair value on a nonrecurring basis as of September 30, 2021 and December 31, 2020:
Carrying Value Quoted Prices in
3 unchanged sentences
(Level 2) Significant
−Removed: June 30, 2021
+Added: September 30, 2021
Foreclosed and repossessed assets, net $ 4 $ — $ — $ 4
13 unchanged sentences
recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at
−Removed: June 30, 2021.
+Added: September 30, 2021.
Value Valuation Techniques (1) Significant Unobservable Inputs (2) Range
−Removed: June 30, 2021
+Added: September 30, 2021
Foreclosed and repossessed assets, net $ 4 Appraisal value Estimated costs to sell 10 % - 15 %
12 unchanged sentences
The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows:
−Removed: June 30, 2021 December 31, 2020
+Added: September 30, 2021 December 31, 2020
Valuation Method Used Carrying
12 unchanged sentences
Mortgage servicing rights (Level III) 4,082 4,161 3,252 3,285
−Removed: Accrued interest receivable (Level 1) 4,898 4,898 5,652 5,652
+Added: Accrued interest receivable (Level I) 4,882 4,882 5,652 5,652
Financial liabilities:
6 unchanged sentences
A reconciliation of the basic and diluted earnings per share is as follows:
−Removed: Three Months Ended Six Months Ended
−Removed: (Share count in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
+Added: Three Months Ended Nine Months Ended
+Added: (Share count in thousands) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Net income attributable to common stockholders $ 4,997 $ 3,480 $ 15,209 $ 9,155
8 unchanged sentences
NOTE 12 – OTHER COMPREHENSIVE INCOME (LOSS)
−Removed: The following tables show the tax effects allocated to each component of other comprehensive income for the three and six months ended June 30, 2021 and 2020:
+Added: The following tables show the tax effects allocated to each component of other comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020:
Three months ended
−Removed: June 30, 2021 June 30, 2020
+Added: September 30, 2021 September 30, 2020
Expense Net-of-Tax
1 unchanged sentence
Expense Net-of-Tax
−Removed: Unrealized gains on securities:
−Removed: Net unrealized gains arising during the period $ 1,492 $ ( 410 ) $ 1,082 $ 2,245 $ ( 617 ) $ 1,628
+Added: Unrealized (losses) gains on securities:
+Added: Net unrealized (losses) gains arising during the period $ ( 1,099 ) $ 302 $ ( 797 ) $ 1,220 $ ( 335 ) $ 885
Reclassification adjustment for gains included in net income ( 42 ) 11 ( 31 ) — — —
−Removed: Other comprehensive income $ 1,456 $ ( 400 ) $ 1,056 $ 2,245 $ ( 617 ) $ 1,628
−Removed: Six Months Ended
−Removed: June 30, 2021 June 30, 2020
+Added: Other comprehensive (loss) income $ ( 1,141 ) $ 313 $ ( 828 ) $ 1,220 $ ( 335 ) $ 885
+Added: Nine Months Ended
+Added: September 30, 2021 September 30, 2020
Expense Net-of-Tax
1 unchanged sentence
Expense Net-of-Tax
−Removed: Unrealized gains on securities:
−Removed: Net unrealized gains arising during the period $ 820 $ ( 224 ) $ 596 $ 832 $ ( 229 ) $ 603
+Added: Unrealized (losses) gains on securities:
+Added: Net unrealized (losses) gains arising during the period $ ( 278 ) $ 77 $ ( 201 ) $ 2,052 $ ( 564 ) $ 1,488
Reclassification adjustment for gains included in net income ( 78 ) 21 ( 57 ) ( 156 ) 43 ( 113 )
−Removed: Other comprehensive income $ 784 $ ( 214 ) $ 570 $ 676 $ ( 186 ) $ 490
−Removed: The changes in the accumulated balances for each component of other comprehensive income (loss), net of tax for the twelve months ended December 31, 2020 and the six months ended June 30, 2021 were as follows:
+Added: Other comprehensive (loss) income $ ( 356 ) $ 98 $ ( 258 ) $ 1,896 $ ( 521 ) $ 1,375
+Added: The changes in the accumulated balances for each component of other comprehensive income (loss), net of tax for the twelve months ended December 31, 2020 and the nine months ended September 30, 2021 were as follows:
Gains (Losses)
5 unchanged sentences
Ending balance, December 31, 2020 $ 2,056 $ 1,490
−Removed: Current year-to-date other comprehensive income 784 570
−Removed: Ending balance, June 30, 2021 $ 2,840 $ 2,060
−Removed: Reclassifications out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2021 were as follows:
+Added: Current year-to-date other comprehensive loss ( 356 ) ( 258 )
+Added: Ending balance, September 30, 2021 $ 1,700 $ 1,232
+Added: Reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2021 were as follows:
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
−Removed: Details about Accumulated Other Comprehensive Income (Loss) Components Three months ended June 30, 2021 Six months ended June 30, 2021 (1) Affected Line Item on the Statement of Operations
+Added: Details about Accumulated Other Comprehensive Income (Loss) Components Three months ended September 30, 2021 Nine months ended September 30, 2021 (1) Affected Line Item on the Statement of Operations
Unrealized gains and losses
−Removed: Sale of securities $ 36 $ 36 Net gains on investment securities
+Added: Sale of securities $ 42 $ 78 Net gains (losses) on investment securities
Tax Effect ( 11 ) ( 21 ) Provision for income taxes
1 unchanged sentence
(1) Amounts in parentheses indicate decreases to income/loss.
−Removed: Reclassifications out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2020 were as follows:
+Added: Reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2020 were as follows:
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
−Removed: Details about Accumulated Other Comprehensive Income (Loss) Components Three months ended June 30, 2020 Six months ended June 30, 2020 (1) Affected Line Item on the Statement of Operations
+Added: Details about Accumulated Other Comprehensive Income (Loss) Components Three months ended September 30, 2020 Nine months ended September 30, 2020 (1) Affected Line Item on the Statement of Operations
Unrealized gains and losses
−Removed: Sale of securities $ — $ 156 Net gains on investment securities
+Added: Sale of securities $ — $ 156 Net gains (losses) on investment securities
Tax Effect — ( 43 ) Provision for income taxes
2 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.