What changed in this filing

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Item 1. Financial Statements

2022-05-04 compared with 2021-11-08 · 258 added, 342 removed, 1155 unchanged (34% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

September 30, 2021 (unaudited) and December 31, 2020

March 31, 2022 (unaudited) and December 31, 2021

(derived from audited financial statements)

(in thousands, except share and per share data)

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Cash and cash equivalents $ 84,364 $ 47,691

2 unchanged sentences

Securities held to maturity "HTM" 104,894 71,141

Equity securities with readily determinable fair value 327 200

Equity investments 1,291 1,328

Other investments 15,084 15,305

23 unchanged sentences

Retained earnings 52,562 50,675

Accumulated other comprehensive income 1,232 1,490

Accumulated other comprehensive (loss) income ( 6,962 ) 161

Total stockholders’ equity 165,494 170,866

3 unchanged sentences

Consolidated Statements of Operations (unaudited)

Three and Nine Months Ended September 30, 2021 and 2020

Three Months Ended March 31, 2022 and 2021

(in thousands, except per share data)

Three Months Ended Nine Months Ended

September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020

Three Months Ended

March 31, 2022 March 31, 2021

Interest and dividend income:

16 unchanged sentences

Loan fees and service charges 92 278

Insurance commission income — — — 474

Net gains (losses) on investment securities ( 37 ) 235

Net gain on sale of acquired business lines — 180 — 432

Settlement proceeds — — — 131

Other 198 247

10 unchanged sentences

Gain on repossessed assets, net ( 7 ) ( 117 )

New market tax credit depletion 163 —

Other 647 572

9 unchanged sentences

CITIZENS COMMUNITY BANCORP, INC.

Consolidated Statements of Comprehensive Income (unaudited)

Three and Nine months ended September 30, 2021 and 2020

Consolidated Statements of Comprehensive (Loss) Income (unaudited)

Three months ended March 31, 2022 and 2021

(in thousands)

Three Months Ended Nine Months Ended

September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020

Three Months Ended

March 31, 2022 March 31, 2021

Net income attributable to common stockholders $ 4,706 $ 5,506

Other comprehensive (loss) income, net of tax:

Other comprehensive loss, net of tax:

Securities available for sale

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 )

Other comprehensive (loss) income, net of tax ( 828 ) 885 ( 258 ) 1,375

Comprehensive income $ 4,169 $ 4,365 $ 14,951 $ 10,530

Net unrealized losses arising during period, net of tax ( 7,123 ) ( 486 )

Other comprehensive loss, net of tax ( 7,123 ) ( 486 )

Comprehensive (loss) income $ ( 2,417 ) $ 5,020

See accompanying condensed notes to unaudited consolidated financial statements.

1 unchanged sentence

Consolidated Statement of Changes in Stockholders’ Equity (unaudited)

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

(in thousands, except shares and per share data)

4 unchanged sentences

Other comprehensive loss, net of tax — — — — ( 7,123 ) ( 7,123 )

Forfeiture of unvested shares ( 1,500 ) — — — — —

Surrender of restricted shares of common stock ( 10,119 ) — ( 141 ) — — ( 141 )

Restricted common stock awarded under the equity incentive plan 38,586 — — — — —

Restricted common stock issued upon achievement of the 2019 performance criteria 11,834 — — — — —

Common stock options exercised 2,500 — 20 — — 20

Common stock repurchased ( 18,462 ) — ( 211 ) ( 77 ) — ( 288 )

4 unchanged sentences

Balance at March 31, 2022 10,526,781 $ 105 $ 119,789 $ 52,562 $ ( 6,962 ) $ 165,494

Net income — — — 4,706 — 4,706

Other comprehensive income, net of tax — — — — 1,056 1,056

Surrender of restricted shares of common stock ( 1,149 ) — ( 15 ) — — ( 15 )

Common stock options exercised 2,000 — 17 — — 17

Common stock repurchased ( 198,648 ) ( 2 ) ( 2,260 ) ( 372 ) — ( 2,634 )

Stock option expense — — 2 — — 2

Amortization of restricted stock — — 222 — — 222

Balance at June 30, 2021 10,696,075 107 121,732 40,117 2,060 164,016

Net income — — — 4,997 — 4,997

Other comprehensive loss, net of tax — — — — ( 828 ) ( 828 )

Surrender of restricted shares of common stock ( 222 ) — ( 3 ) — — ( 3 )

Common stock options exercised 3,800 — 35 — — 35

Common stock repurchased ( 180,768 ) ( 2 ) ( 2,058 ) ( 454 ) — ( 2,514 )

Stock option expense — — 2 — — 2

Amortization of restricted stock — — 221 — — 221

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.

8 unchanged sentences

Other comprehensive loss, net of tax — — — — ( 486 ) ( 486 )

Forfeiture of unvested shares ( 1,500 ) — — — — —

Surrender of restricted shares of common stock ( 895 ) — ( 10 ) — — ( 10 )

Restricted common stock awarded under the equity incentive plan 64,399 — — — — —

Common stock fractional share audit adjustment ( 40 ) — — — — —

Common stock repurchased ( 224,481 ) ( 2 ) ( 2,552 ) ( 21 ) — ( 2,575 )

7 unchanged sentences

Surrender of restricted shares of common stock ( 1,149 ) — ( 15 ) — — ( 15 )

Common stock options exercised 2,000 — 17 — — 17

Common stock repurchased ( 198,648 ) ( 2 ) ( 2,260 ) ( 372 ) — ( 2,634 )

Stock option expense — — 2 — — 2

4 unchanged sentences

Surrender of restricted shares of common stock ( 222 ) — ( 3 ) — — ( 3 )

Restricted common stock awarded under the equity incentive plan 4,000 — — — — —

Common stock options exercised 3,800 — 35 — — 35

Common stock repurchased ( 180,768 ) ( 2 ) ( 2,058 ) ( 454 ) — ( 2,514 )

Stock option expense — — 2 — — 2

11 unchanged sentences

Consolidated Statements of Cash Flows (unaudited)

Nine Months Ended September 30, 2021 and 2020

Three Months Ended March 31, 2022 and 2021

(in thousands)

Nine Months Ended

September 30, 2021 September 30, 2020

Three Months Ended

March 31, 2022 March 31, 2021

Cash flows from operating activities:

3 unchanged sentences

Depreciation expense 573 530

Provision for loan losses — 5,250

Net realized (gain) loss on equity securities and other investments ( 266 ) 59

Net realized gain on debt securities ( 78 ) ( 156 )

Increase in MSR assets resulting from transfers of financial assets ( 858 ) ( 1,546 )

Mortgage servicing rights expense, net 28 2,330

Net realized loss (gain) on equity securities 37 ( 235 )

Increase in mortgage servicing rights resulting from transfers of financial assets ( 126 ) ( 297 )

Mortgage servicing rights amortization and impairment, net ( 327 ) ( 450 )

Amortization of intangible assets 399 399

2 unchanged sentences

Loss on sale of office properties and equipment — 6

Deferred income taxes 726 ( 1,299 )

Decrease in deferred income taxes 911 765

Increase in cash surrender value of life insurance ( 152 ) ( 153 )

1 unchanged sentence

Gain on sale of loans held for sale, net ( 722 ) ( 1,595 )

Net originations of loans held for sale 5,531 5,540

Decrease (increase) in accrued interest receivable and other assets 529 ( 1,934 )

(Decrease) increase in other liabilities ( 2,023 ) 836

Net gain on sale of insurance agency — ( 252 )

New market tax credit depletion 163 —

Net change in:

Loans held for sale 4,864 2,403

Accrued interest receivable and other assets 410 322

Other liabilities ( 2,099 ) 6,248

Total adjustments 4,153 8,023

3 unchanged sentences

Purchase of available for sale securities ( 1,750 ) ( 50,956 )

Proceeds from principal payments and sale of available for sale securities 33,307 52,083

Proceeds from principal payments of available for sale securities 7,076 9,368

Purchase of held to maturity securities ( 35,342 ) ( 16,530 )

Proceeds from principal payments, calls and maturities of held to maturity securities 9,846 1,051

Net sales (purchases) of other investments 122 ( 70 )

Proceeds from principal payments and maturities of held to maturity securities 1,569 2,629

Net sales of other investments 221 17

Proceeds from sales of foreclosed and repossessed assets 28 312

Net increase in loans ( 11,374 ) ( 54,748 )

Net decrease in loans 20,704 45,189

Net capital expenditures ( 797 ) ( 462 )

Proceeds from disposal of office properties and equipment — 10

Net proceeds from sale of insurance agency — 1,128

New market tax credit investment ( 4,056 ) —

Net cash used in investing activities ( 12,347 ) ( 8,687 )

Cash flows from financing activities:

Net decrease in short-term Federal Home Loan Bank advances — ( 41,000 )

Amortization of fair value adjustments for acquired Federal Home Loan Bank advances 3 —

Long-term Federal Home Loan Bank advances — 66,500

Federal Home Loan Bank advance termination payments ( 15,015 ) ( 8,119 )

2 unchanged sentences

Proceeds from other borrowings, net of origination costs 34,201 —

Other borrowings principal reductions ( 5,606 ) —

Net increase in deposits 40,688 84,946

4 unchanged sentences

Net cash provided by financing activities 40,161 71,757

Net (decrease) increase in cash and cash equivalents ( 17,099 ) 59,634

Net increase in cash and cash equivalents 36,673 76,599

Cash and cash equivalents at beginning of period 47,691 119,440

4 unchanged sentences

Interest on borrowings $ 1,323 $ 1,391

Income taxes $ 5,250 $ 4,820

Supplemental noncash disclosure:

Transfers from loans receivable to other real estate owned ("OREO") $ — $ 45

Transfers from office properties and equipment to OREO $ 79 $ —

See accompanying condensed notes to unaudited consolidated financial statements.

7 unchanged sentences

The Bank is a national banking association (a “National Bank”) and operates under the title of Citizens Community Federal National Association (“Citizens Community Federal N.A.” or “Bank” or “CCFBank”).

The Company is a bank holding company, supervised by the Federal Reserve Bank of Minneapolis (the “FRB”), and operates under the title of Citizens Community Bancorp, Inc.

Wells Insurance Agency (“WIA”) was a wholly owned subsidiary of the Bank, providing insurance products to the Bank’s customers and was sold on June 30, 2020.

F&M Investment Corp.

of Tomah was a wholly owned subsidiary of the Bank that was formerly utilized by F.

of Tomah, Inc.

(“F & M”) to manage its municipal bond portfolio, and was dissolved in February 2020.

The Company is a bank holding company, supervised by the Federal Reserve Bank of Minneapolis, and operates under the title of Citizens Community Bancorp, Inc.

Office of the Comptroller of the Currency (the “OCC”), is the primary federal regulator for the Bank.

4 unchanged sentences

Additionally, the Bank is subject to the regulations of certain regulatory agencies and undergoes periodic examination by those regulatory agencies.

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.

In preparing these consolidated financial statements, we evaluated the events and transactions that occurred subsequent to the March 31, 2022 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.

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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, 2021, filed with the SEC on March 2, 2022;

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;

8 unchanged sentences

Available for sale securities are stated at fair value, with unrealized holding gains and losses being reported in other comprehensive income (loss), net of tax.

Unrealized losses deemed other-than-temporary due to credit issues are reported in the Company’s net income in the period in which the losses arise.

Unrealized losses deemed other-than-temporary due to credit issues are reported in the

Company’s net income in the period in which the losses arise.

Realized gains or losses on sales of available for sale securities are calculated with the specific identification method and are included in the consolidated statements of operations under net gains on investment securities.

9 unchanged sentences

Non-credit components of the unrealized losses on available for sale securities will continue to be recognized in other comprehensive income (loss), net of tax.

Equity securities with readily determinable fair value - The Company is required to maintain an investment in Federal Agricultural Mortgage Corporation (“Farmer Mac”) equity securities.

Equity investments - The Company is required to maintain an investment in Federal Agricultural Mortgage Corporation (“Farmer Mac”) equity securities.

Farmer Mac equity securities are carried at their fair market value, which is readily determinable.

Changes in fair value are recognized as net gains (losses) on investment securities in the consolidated Statement of Operations.

Also included in equity investments are the Company’s investments in a Volker Rule-compliant Small Business Investment Company ("SBIC") and an investment fund.

The SBIC and investment fund meet the definition of investment companies, as defined in ASC 946, Financial Services - Investment Companies.

These investments seek returns by investing in various small businesses and do not have redemption rights.

Distributions from the investments will be received as the underlying investments, which generally have a life of 10 years, are liquidated.

We elected the practical expedient available in Topic 820, Fair Value Measurements, which permits the use of net asset value ("NAV") per share or equivalent to value investments in entities that are or are similar to investment companies.

SBICs and investment funds report their investments at estimated fair value.

We record the unrealized gains and losses resulting from changes in the fair value of these investments as gains or losses on equity securities in our consolidated statements of operations.

The carrying value of these investments is equal to the capital account balance per each entities' quarterly financial statements.

Other Investments - As a member of the Federal Reserve Bank (“FRB”) System and the Federal Home Loan Bank (“FHLB”) System, the Bank is required to maintain an investment in the capital stock of these entities.

7 unchanged sentences

Based on management’s quarterly evaluation, no impairment has been recorded on these securities.

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 $ 15,084 at March 31, 2022 consisted of $ 7,650 of FHLB stock, $ 5,205 of Federal Reserve Bank stock and $ 2,229 of Bankers’ Bank stock.

Other investments totaling $ 15,305 at December 31, 2021 consisted of $ 7,877 of FHLB stock and $ 5,200 of Federal Reserve Bank stock and $ 2,228 of Bankers’ Bank stock.

50 unchanged sentences

Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if we expect to fully collect the new carrying value of the loans.

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.

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.

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.

15 unchanged sentences

Gains and losses on sales of loans are recognized at settlement dates, and are determined by the difference between the sales proceeds and the carrying value of the loans after allocating costs to servicing rights retained.

Such gains and losses are included in non-interest income in the consolidated statements of operations.

Such gains and losses are included as non-interest income in the consolidated statements of operations.

All sales are made without recourse.

14 unchanged sentences

or a fixed amount per loan and are recorded as income when earned.

The amortization of mortgage servicing rights is netted against loan servicing fee income.

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.

2 unchanged sentences

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.

The Company has one reporting unit as of September 30, 2021 which is related to its banking activities.

The Company has one reporting unit as of March 31, 2022 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.

7 unchanged sentences

Costs incurred after acquisition are expensed and are included in non-interest expense, other in the consolidated statements of operations.

New Markets Tax Credits - As a part of its commitment to the communities it serves, in the first quarter of 2022 the Company made an investment in an LLC that is sponsoring a community development project that has been awarded a New Markets Tax Credit (NMTC) through the U.S.

Department of the Treasury’s Community Development Financial Institutions Fund.

This investment is Community Reinvestment Act eligible and is designed to generate a return primarily through the realization of the tax credit.

This LLC is considered a Variable Interest Entity (VIE) as the Company represents the holder of the equity investment at risk, but does not have the ability to direct the activities that most significantly affect the performance of the LLC.

As such, the Company is not the primary beneficiary of the VIE and the LLC has not been consolidated.

The investment is accounted for using the equity method of accounting and is amortized through non-interest expense as the related tax credits are utilized.

The utilization of the tax credit is recognized as a reduction in income tax expense.

As of March 31, 2022, the carrying amount of this investment, which is included in other assets in the consolidated balance sheets, was $ 3,833 .

The risk of loss with this investment is limited to its carrying value and is tied to its ability to operate in compliance with the rules and regulations necessary for the qualification of the tax credit generated by the investment.

As of March 31, 2022 there were no known instances of noncompliance associated with the investment.

Leases - We determine if an arrangement is a lease at inception.

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Lease expense is recognized based on the total contractually required lease payments, over the term of the lease, on a straight-line basis.

Debt and equity issuance costs— Debt issuance costs, which consist primarily of fees paid to note lenders, are deferred and included in other borrowings in the consolidated balance sheet.

Debt issuance costs are amortized over the contractual term of the corresponding debt, as a component of interest expense on other borrowed funds in the consolidated statement of operations.

Specific costs associated with the issuance of shares of the Company’s common or preferred stock are netted against proceeds and recorded in stockholders’ equity, as additional paid in capital, on the consolidated balance sheet, in the period of the share issuance.

Debt and equity issuance costs— Debt issuance costs, which consist primarily of fees paid to note lenders, are deferred and included in other borrowings in the consolidated balance sheets.

Debt issuance costs with a Company call option that

originated prior to 2020 and senior note debt issuance costs, are amortized over the contractual term of the corresponding debt, as a component of interest expense on other borrowed funds in the consolidated statements of operations.

Debt issuance costs that originated in 2020 and thereafter, are amortized through the first Company call option date of the corresponding debt, as a component of interest expense on other borrowed funds in the consolidated statements of operations.

Advertising, Marketing and Public Relations Expense— The Company expenses all advertising, marketing and public relations costs as they are incurred.

3 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.

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.

2 unchanged sentences

Accordingly, the Company’s evaluation is based on current tax laws as well as management’s expectations of future performance.

Revenue Recognition - The Company recognizes revenue in the consolidated statements of operations as it is earned and when collectability is reasonably assured.

The primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method.

Revenue Recognition - The Company’s primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method.

The recognition of revenues from interest earning assets is based upon formulas from underlying loan agreements, securities contracts or other similar contracts.

Non-interest income is recognized on the accrual basis of accounting as services are provided or as transactions occur.

Non-interest income includes fees from deposit accounts, ATM and debit card fees, mortgage banking activities, and other miscellaneous services and transactions.

Commission revenue is recognized as of the effective date of the insurance policy or the date the customer is billed, whichever is later.

The Company also receives contingent commissions from insurance companies which are based on the overall profitability of their relationship based primarily on the loss experience of the insurance placed by the Company.

Contingent commissions from insurance companies are recognized when determinable.

Commission revenue is included in other non-interest income in the consolidated statement of operations.

The Company accounts for revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers.” Topic 606 provides that revenue from contracts with customers be recognized when performance obligations under the terms of a contract are satisfied.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing service.

The company does not have any materially significant payment terms as payment is received shortly after the satisfaction of the performance obligation.

The non-interest income line items recognized under the scope of Topic 606 are as follows:

Service charges on deposit accounts - Service charges on accounts consist of monthly service fees, transaction-based fees, overdraft services and other deposit account related fees.

The Company’s performance obligation for monthly services fees is generally satisfied over the period in which the service is provided.

Revenue for these monthly fees is recognized during the service period.

Other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied at the time the service is provided.

Payment for service charges on deposit accounts are primarily received immediately or in the following month through a direct charge to a customer’s account.

Interchange income - The Company earns interchange fees when cardholder debit card transaction are processed through card association networks.

The interchange rates are generally set by the card association based upon purchase volumes and other factors.

Interchange fees represent a percentage of the underlying transaction value.

The Company has a continuous contract, based on customary business practices, with the card association networks to make funds available for settlement of card transactions.

The Company’s performance obligation is satisfied over time as it makes funds available, and the related income is recognized when received.

Gain (loss) on repossessed assets - The Company records a gain or loss from the sale of repossessed assets, when control of the property or asset transfers to the buyer, which generally occurs at the time of an executed deed or sales agreement.

When the company finances the sale of repossessed assets to a buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable.

Once these criteria are met, the repossessed asset is derecognized and the gain or loss on sale is recorded

upon transfer of control of the property to the buyer.

In determining the gain on sale or loss on the sale, the Company adjust the transaction price and related gain or loss on sale if a significant financing component is present.

Non-interest income outside of the scope of Revenue from Contracts with Customers, Topic 606 is recognized on the accrual basis of accounting as services are provided or as transactions occur.

Non-interest income outside of the scope of Topic 606 includes mortgage banking activities, loan fees and service charges, net gains (losses) on investment securities, settlement proceeds, and other, which is primarily made up of BOLI related income.

Earnings Per Share – Basic earnings per common share is net income or loss divided by the weighted average number of common shares outstanding during the period.

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Recent Accounting Pronouncements—Adopted

ASU 2018-13, Fair Value Measurement (Topic 820)— The ASU modifies disclosure requirements on fair value measurements.

This ASU removes requirements to disclose, (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and (2) the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements.

ASU 2018-13 clarifies that, disclosure regarding measurement uncertainty, is intended to communicate information about the uncertainty in measurement, as of the reporting date.

ASU 2018-13 adds certain disclosure requirements, including (1) disclosure of changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements, and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.

The Company adopted this ASU, in the first quarter of 2020.

The amendments on (1) changes in unrealized gains and losses, (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and (3) the narrative description of measurement uncertainty, are being applied prospectively.

All other amendments have been applied retrospectively for all periods presented.

Adoption of this ASU had no material impact on its consolidated financial position or results of operations.

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.

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).

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.

Adoption of this ASU had no material impact on its consolidated financial statements.

ASU 2020-04 and ASU 2021-01, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting-- These ASUs provide optional and temporary relief, in the form of optional expedients and exceptions, for applying GAAP to modifications of contacts, hedging relationships and other transactions affected by reference rate (e.g.

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The Company anticipates recording the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which the ASU is effective, which will be January 1, 2023.

Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures - The ASU addresses and amends areas identified by the FASB as part of its post-implementation review of the accounting standard that introduced the current expected credit losses model.

The amendments eliminate the accounting

guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty.

In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures.

As the Company has not yet adopted the amendments in ASU 2016-13, ASU 2022-02 becomes effective in the first quarter of 2023.

Management is assessing the impact that adoption of this standard will have on the Company’s financial condition and results of operations in conjunction with its assessment of the impact of ASU 2016-13.

The Company expects to adopt the guidance for our fiscal year beginning January 1, 2023.

NOTE 2 – INVESTMENT SECURITIES

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:

The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of March 31, 2022 and December 31, 2021, respectively, were as follows:

Available for sale securities Amortized

Losses Estimated

September 30, 2021

March 31, 2022

government agency obligations $ 23,686 $ 298 $ 103 $ 23,881

Obligations of states and political subdivisions 140 — — 140

Mortgage-backed securities 103,723 9 8,181 95,551

1 unchanged sentence

Corporate asset-based securities 33,011 — 484 32,527

Trust preferred securities 8,841 399 — 9,240

Total available for sale securities $ 197,507 $ 361 $ 9,963 $ 187,905

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Corporate asset-based securities 33,902 133 127 33,908

Trust preferred securities 16,297 189 38 16,448

Total available for sale securities $ 202,846 $ 1,385 $ 1,163 $ 203,068

1 unchanged sentence

Losses Estimated

September 30, 2021

March 31, 2022

Obligations of states and political subdivisions $ 4,600 $ — $ 32 $ 4,568

5 unchanged sentences

Total held to maturity securities $ 71,141 $ 104 $ 2,068 $ 69,177

As of September 30, 2021, the Bank has pledged U.S.

At March 31, 2022, the Bank has pledged mortgage-backed securities with a carrying value of $ 5,813 as collateral against a borrowing line of credit with the Federal Reserve Bank.

However, as of March 31, 2022, there were no borrowings outstanding on this Federal Reserve Bank line of credit.

As of March 31, 2022, the Bank has pledged U.S.

Government Agency securities with a carrying value of $ 3,570 and mortgage-backed securities with a carrying value of $ 2,645 as collateral against specific municipal deposits.

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.

However, as of September 30, 2021, there were no borrowings outstanding on this Federal Reserve Bank line of credit.

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.

As of March 31, 2022, the Bank also has mortgage-backed securities with a carrying value of $ 220 pledged as collateral to the Federal Home Loan Bank of Des Moines.

At December 31, 2021, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $ 863 as collateral to secure a line of credit with the Federal Reserve Bank.

1 unchanged sentence

As of December 31, 2021, the Bank has pledged certain of its U.S.

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.

Government Agency securities with a carrying value of $ 3,934 and mortgage-backed securities with a carrying value of $ 2,879

as collateral against specific municipal deposits.

As of December 31, 2021, the Bank also has mortgage-backed securities with a carrying value of $ 267 pledged as collateral to the Federal Home Loan Bank of Des Moines.

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.

Gross gains on sale of available for sale securities for the three and nine months ended September 30, 2021 were $ 56 and $ 92 , respectively.

Gross losses on sale of available for sale securities for the three and nine months ended September 30, 2021 were $ 14 and $ 14 , respectively.

Gross sales of available for sale securities were $ 0 and $ 10,841 for the three and nine month periods ended September 30, 2020, respectively.

Gross gains on sale of available for sale securities for the three and nine months ended September 30, 2020 were $ 0 and $ 157 , respectively.

Gross losses on sale of available for sale securities for the three and nine months ended September 30, 2020 were $ 0 and $ 1 , respectively.

The estimated fair value of securities at September 30, 2021 and December 31, 2020, by contractual maturity, is shown below.

For the three month periods ended March 31, 2022 and March 31, 2021, there were no sales of available for sale securities.

The estimated fair value of securities at March 31, 2022 and December 31, 2021, 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.

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Available for sale securities Amortized

9 unchanged sentences

Total available for sale securities $ 197,507 $ 187,905 $ 202,846 $ 203,068

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Held to maturity securities Amortized

7 unchanged sentences

Total held to maturity securities $ 104,894 $ 95,975 $ 71,141 $ 69,177

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:

Securities with unrealized losses at March 31, 2022 and December 31, 2021, 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

September 30, 2021

March 31, 2022

government agency obligations $ 3,716 $ 103 $ — $ — $ 3,716 $ 103

2 unchanged sentences

Corporate asset-based securities 32,527 484 — — 32,527 484

Trust preferred securities — — — — — —

Total $ 151,053 $ 9,102 $ 8,181 $ 861 $ 159,234 $ 9,963

1 unchanged sentence

government agency obligations $ 1,169 $ 1 $ — $ — $ 1,169 $ 1

Mortgage backed securities 89,010 878 — — 89,010 878

Corporate debt securities 17,240 142 735 15 17,975 157

Corporate asset-based securities 19,296 127 — — 19,296 127

Trust preferred securities 5,612 38 — — 5,612 38

Total $ 126,715 $ 1,148 $ 735 $ 15 $ 127,450 $ 1,163

4 unchanged sentences

Value Unrealized

September 30, 2021

March 31, 2022

Obligations of states and political subdivisions $ 4,568 $ 32 $ — $ — $ 4,568 $ 32

2 unchanged sentences

December 31, 2021

Obligations of states and political subdivisions $ 593 $ 7 $ — $ — $ 593 $ 7

Mortgage-backed securities 46,969 1,346 14,716 715 61,685 2,061

37 unchanged sentences

Consumer installment loans are comprised of originated indirect paper loans secured primarily by boats and recreational vehicles and other consumer loans secured primarily by automobiles and other personal assets.

The Bank ceased new originations of indirect paper loans in early fiscal 2017.

Consumer loan underwriting terms often depend on the collateral type, debt to income ratio and the borrower’s creditworthiness as evidenced by their credit score.

22 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.

Below is a summary of originated and acquired loans by type and risk rating as of September 30, 2021:

Below is a summary of originated and acquired loans by type and risk rating as of March 31, 2022:

1 to 5 6 7 8 9 TOTAL

14 unchanged sentences

Other consumer 7,772 — 70 — — 7,842

Originated loans before SBA PPP loans 989,095 1,008 17,993 — — 1,008,096

Total originated loans before SBA PPP loans 1,091,688 1,844 15,062 — — 1,108,594

SBA PPP loans 2,071 — — — — 2,071

52 unchanged sentences

Other consumer 8,404 — 69 — — 8,473

Originated loans before SBA PPP loans 819,303 2,258 15,462 — — 837,023

Total Originated loans before SBA PPP loans 1,092,879 3,045 13,815 — — 1,109,739

SBA PPP loans 8,755 — — — — 8,755

35 unchanged sentences

Loans receivable, net $ 1,294,050

The following table summarizes SBA PPP loans at September 30, 2021 and December 31, 2020:

2020 Originations 2021 Originations Total

Balance Net Deferred Fee Income Balance Net Deferred Fee Income Balance Net Deferred Fee Income

SBA PPP loans, December 31, 2020 $ 123,702 $ 2,991 $ — $ — $ 123,702 $ 2,991

2021 SBA PPP loan originations — — 47,467 1,770 47,467 1,770

2021 SBA PPP loan forgiveness and fee accretion ( 52,238 ) ( 1,706 ) — ( 44 ) ( 52,238 ) ( 1,750 )

SBA PPP loans, March 31, 2021 71,464 1,285 47,467 1,726 118,931 3,011

2021 SBA PPP loan originations — — 8,323 1,715 8,323 1,715

2021 SBA PPP loan forgiveness and fee accretion ( 50,057 ) ( 977 ) ( 2,272 ) ( 332 ) ( 52,329 ) ( 1,309 )

SBA PPP loans, June 30, 2021 21,407 308 53,518 $ 3,109 74,925 3,417

2021 SBA PPP loan originations — — 64 9 64 9

2021 SBA PPP loan forgiveness and fee accretion ( 18,286 ) ( 279 ) ( 25,402 ) ( 1,599 ) ( 43,688 ) ( 1,878 )

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.

9 unchanged sentences

Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total

Three months ended September 30, 2021

Allowance for Loan Losses:

Beginning balance, July 1, 2021 $ 10,890 $ 2,182 $ 771 $ 362 $ 855 $ 15,060

Charge-offs — — — ( 12 ) — ( 12 )

Recoveries 4 10 — 5 — 19

Provision 1,004 ( 218 ) ( 185 ) ( 80 ) ( 83 ) 438

Total allowance on originated loans 11,898 1,974 586 275 772 15,505

Purchased credit impaired loans — — — — — —

Other acquired loans:

Beginning balance, July 1, 2021 1,468 81 231 5 — 1,785

Charge-offs — — — ( 24 ) — ( 24 )

Recoveries — 3 1 — — 4

Provision ( 371 ) ( 10 ) ( 106 ) 49 — ( 438 )

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

Ending balance, September 30, 2021 $ 12,995 $ 2,048 $ 712 $ 305 $ 772 $ 16,832

Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total

Nine months ended September 30, 2021

Three months ended March 31, 2022

Allowance for Loan Losses:

12 unchanged sentences

Total allowance on acquired loans 789 58 62 9 — 918

Ending balance, September 30, 2021 $ 12,995 $ 2,048 $ 712 $ 305 $ 772 $ 16,832

Allowance for Loan Losses at September 30, 2021:

Ending balance, March 31, 2022 $ 13,183 $ 2,162 $ 522 $ 169 $ 782 $ 16,818

Allowance for Loan Losses at March 31, 2022:

Amount of allowance for loan losses arising from loans individually evaluated for impairment $ 1,280 $ 373 $ 69 $ — $ — $ 1,722

Amount of allowance for loan losses arising from loans collectively evaluated for impairment $ 11,903 $ 1,789 $ 453 $ 169 $ 782 $ 15,096

Loans Receivable as of September 30, 2021:

Loans Receivable as of March 31, 2022:

Ending balance of originated loans $ 890,440 $ 134,513 $ 63,362 $ 22,350 $ — $ 1,110,665

7 unchanged sentences

Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total

Three months ended September 30, 2020

Allowance for Loan Losses:

Beginning balance, July 1, 2020 $ 8,297 $ 1,778 $ 980 $ 480 $ 574 $ 12,109

Charge-offs — ( 103 ) ( 4 ) ( 10 ) — ( 117 )

Recoveries 74 — 2 18 — 94

Provision 430 188 ( 15 ) 64 56 723

Total allowance on originated loans 8,801 1,863 963 552 630 12,809

Purchased credit impaired loans — — — — — —

Other acquired loans:

Beginning balance, July 1, 2020 746 334 112 72 — 1,264

Charge-offs — — ( 47 ) — — ( 47 )

Recoveries 1 30 — 2 — 33

Provision 623 ( 58 ) 199 13 — 777

Total allowance on other acquired loans 1,370 306 264 87 — 2,027

Total allowance on acquired loans 1,370 306 264 87 — 2,027

Ending balance, September 30, 2020 $ 10,171 $ 2,169 $ 1,227 $ 639 $ 630 $ 14,836

Commercial/Agricultural Real Estate C&I/Agricultural operating Residential Mortgage Consumer Installment Unallocated Total

Nine months ended September 30, 2020

Three months ended March 31, 2021

Allowance for Loan Losses:

12 unchanged sentences

Total allowance on acquired loans 1,301 94 388 49 — 1,832

Ending balance, September 30, 2020 $ 10,171 $ 2,169 $ 1,227 $ 639 $ 630 $ 14,836

Allowance for Loan Losses at September 30, 2020:

Ending balance, March 31, 2021 $ 12,410 $ 1,727 $ 1,329 $ 499 $ 895 $ 16,860

Allowance for Loan Losses at March 31, 2021:

Amount of allowance for loan losses arising from loans individually evaluated for impairment $ 1,094 $ 10 $ 157 $ — $ — $ 1,261

Amount of allowance for loan losses arising from loans collectively evaluated for impairment $ 11,316 $ 1,717 $ 1,172 $ 499 $ 895 $ 15,599

Loans Receivable as of September 30, 2020

Loans Receivable as of March 31, 2021

Ending balance of originated loans $ 599,182 $ 216,773 $ 87,576 $ 34,137 $ — $ 937,668

21 unchanged sentences

Commercial/Agricultural Real Estate Loans C&I/Agricultural Operating Residential Mortgage Consumer Installment Totals

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

March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021

Performing loans

8 unchanged sentences

(1) Nonperforming loans are either 90+ days past due or nonaccrual.

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.

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:

As of March 31, 2022 the Company had $ 288,001 in unused commitments, compared to $ 270,985 in unused commitments as of December 31, 2021.

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 March 31, 2022 and December 31, 2021, 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

September 30, 2021

March 31, 2022

Commercial/Agricultural real estate:

31 unchanged sentences

Total $ 3,341 $ 560 $ 160 $ 4,061 $ 11,665 $ 15,726 $ 1,301,319 $ 1,317,045

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 ;

At March 31, 2022, the Company individually evaluated loans for impairment with a recorded investment of $ 33,741 , consisting of (1) $ 10,719 purchased credit impaired (“PCI”) loans, with a carrying amount of $ 10,210 ;

(2) $ 6,716 TDR loans, net of TDR PCI loans;

7 unchanged sentences

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.

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:

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

September 30, 2021

A summary of the Company’s loans individually evaluated for impairment as of March 31, 2022, December 31, 2021 and March 31, 2021 was as follows:

Three Months Ended

Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized

March 31, 2022

With No Related Allowance Recorded:

10 unchanged sentences

Total $ 7,229 $ 7,229 $ 1,722 $ 6,301 $ 22

September 30, 2021 Totals:

March 31, 2022 Totals:

Commercial/Agricultural real estate $ 20,321 $ 20,597 $ 1,280 $ 21,911 $ 147

3 unchanged sentences

Total $ 33,741 $ 34,250 $ 1,722 $ 35,386 $ 281

Twelve Months Ended

Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized

18 unchanged sentences

Total $ 31,740 $ 32,393 $ 1,009 $ 37,028 $ 1,674

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

September 30, 2020

Three Months Ended

Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized

March 31, 2021

With No Related Allowance Recorded:

10 unchanged sentences

Total $ 5,965 $ 5,965 $ 1,261 $ 5,059 $ 70

September 30, 2020 Totals:

March 31, 2021 Totals:

Commercial/Agricultural real estate $ 24,298 $ 24,948 $ 1,094 $ 24,945 $ 301

8 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.

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.

Following is a summary of TDR loans by accrual status as of September 30, 2021 and December 31, 2020.

September 30, 2021 December 31, 2020

There were no delinquent accruing TDR loan greater than 60 days past due at March 31, 2022, compared to one such loan with a recorded investment of $ 4 at December 31, 2021.

Following is a summary of TDR loans by accrual status as of March 31, 2022 and December 31, 2021.

March 31, 2022 December 31, 2021

Troubled debt restructure loans:

2 unchanged sentences

Total $ 10,231 $ 12,523

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.

There were unused lines of credit totaling $ 51 and $ 15 meeting our TDR criteria as of September 30, 2021 and December 31, 2020, respectively.

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

Three months ended September 30, 2021

Commercial/Agricultural real estate — $ — $ — $ — $ — $ — $ — $ —

C&I/Agricultural operating — — — — — — — —

Residential mortgage 4 186 — 188 — 374 374 —

Consumer installment — — — — — — — —

Totals 4 $ 186 $ — $ 188 $ — $ 374 $ 374 $ —

Nine months ended September 30, 2021

Commercial/Agricultural real estate 3 $ 39 $ 81 $ — $ — $ 120 $ 120 $ —

C&I/Agricultural operating 1 — — 240 — 240 240 —

Residential mortgage 6 252 — 202 — 454 454 —

Consumer installment 2 6 — 18 — 24 24 —

Totals 12 $ 297 $ 81 $ 460 $ — $ 838 $ 838 $ —

There was one loan commitment for $ 27 meeting our TDR criteria as of March 31, 2022 and no loan commitments meeting our TDR criteria as of December 31, 2021.

There were unused lines of credit totaling $ 49 and $ 10 meeting our TDR criteria as of March 31, 2022 and December 31, 2021, respectively.

The following provides detail, including specific reserve and reasons for modification, related to loans identified as TDRs during the three months ended March 31, 2022 and March 31, 2021:

Three months ended September 30, 2020

Three months ended March 31, 2022

Commercial/Agricultural real estate 4 $ 1,241 $ — $ — $ — $ 1,241 $ 1,241 $ —

4 unchanged sentences

Nine months ended September 30, 2020

Three months ended March 31, 2021

Commercial/Agricultural real estate 2 $ 38 $ 81 $ — $ — $ 119 $ 119 $ —

3 unchanged sentences

Totals 6 $ 110 $ 81 $ 254 $ — $ 445 $ 445 $ —

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:

September 30, 2021 September 30, 2020

A summary of loans by loan segment modified in a troubled debt restructuring as of March 31, 2022 and March 31, 2021, was as follows:

March 31, 2022 March 31, 2021

Modifications Recorded

7 unchanged sentences

Total troubled debt restructurings 75 $ 10,231 105 $ 17,442

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:

The following table provides the number of loans modified in a TDR during the previous twelve months which subsequently defaulted during the three months ended March 31, 2022 and March 31, 2021, as well as the recorded investment in these restructured loans as of March 31, 2022 and March 31, 2021:

Three Months Ended

September 30, 2021 September 30, 2020

Modifications Recorded

Investment Number of

Modifications Recorded

Troubled debt restructurings:

Commercial/Agricultural real estate — $ — — $ —

C&I/Agricultural operating — — 1 250

Residential mortgage — — — —

Consumer installment — — — —

Total troubled debt restructurings — $ — 1 $ 250

Nine Months Ended

September 30, 2021 September 30, 2020

March 31, 2022 March 31, 2021

Modifications Recorded

9 unchanged sentences

The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Accountable for under ASC 310-30 (Purchased Credit Impaired “PCI” loans)

7 unchanged sentences

Carrying amount $ 181,734 $ 194,951

The following table provides changes in accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality:

Balance at beginning of period, January 1 $ 3,976 $ 3,201

Acquisitions — —

Reduction due to unexpected early payoffs ( 102 ) ( 99 )

Reclass from non-accretable difference 298 2,704

Accretion ( 792 ) ( 756 )

Balance at end of period, September 30 $ 3,380 $ 5,050

The table below shows scheduled accretion by year for the accretable difference recognized due to fair value purchase accounting on recent whole bank acquisitions.

In addition, the Company has $ 1.66 million of accretable discount from purchased impaired loans with the original non-accretable discount transferred to accretable discount.

The scheduled accretion on this balance is estimated to be $ 100 per year;

however, large balance payoffs, as seen in 2021 and 2020, would accelerate this accretion.

Fiscal years ending December 31, Purchase Accounting Accretable Discount

Total $ 1,100

The following table provides changes in non-accretable yield for all acquired loans from prior acquisitions with deteriorated credit quality:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Balance at beginning of period $ 653 $ 1,087

3 unchanged sentences

Non-accretable difference used to reduce loan principal balance ( 32 ) —

Non-accretable difference transferred to OREO due to loan foreclosure — ( 251 )

Balance at end of period $ 509 $ 653

1 unchanged sentence

Mortgage servicing rights-- Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets.

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.

The unpaid balances of these loans as of March 31, 2022 and December 31, 2021 were $ 552,236 and $ 556,086 , 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.

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.

Mortgage servicing rights activity for the three and nine month periods ended September 30, 2021 and September 30, 2020 were as follows:

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

September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020

Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $ 4,748 and $ 2,781 at March 31, 2022 and December 31, 2021, respectively.

Mortgage servicing rights activity for the three month periods ended March 31, 2022 and March 31, 2021 were as follows:

As of and for the Three Months Ended As of and for the Three Months Ended

March 31, 2022 March 31, 2021

Mortgage servicing rights:

12 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.

Servicing fees totaled $ 354 and $ 353 for the three months ended September 30, 2021 and September 30, 2020, respectively.

Servicing fees totaled $ 1,058 and $ 1,033 for the nine months ended September 30, 2021 and September 30, 2020, respectively.

Servicing fees totaled $ 351 and $ 352 for the three months ended March 31, 2022 and March 31, 2021, respectively, and are included in loan servicing income on the consolidated statement of operations.

Late fees and ancillary fees related to loan servicing are not material.

2 unchanged sentences

Central to the valuation model is the discount rate.

Fair value at September 30, 2021 was determined using discount rates ranging from 9 % to 12 %.

Fair value at both March 31, 2022 and March 31, 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.

2 unchanged sentences

Our leases have remaining lease terms ranging from approximately 1.00 to 6.25 years, some of which include options to extend the leases for up to 5 additional years.

As of September 30, 2021, we have no additional lease commitments that have not yet commenced.

As of March 31, 2022, 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.

Nine Months Ended

September 30, 2021 September 30, 2020

Three Months Ended

March 31, 2022 March 31, 2021

The components of total lease cost were as follows:

9 unchanged sentences

Operating leases $ — $ —

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Supplemental balance sheet information related to leases was as follows:

13 unchanged sentences

NOTE 6 – DEPOSITS

The following is a summary of deposits by type at September 30, 2021 and December 31, 2020, respectively:

September 30, 2021 December 31, 2020

The following is a summary of deposits by type at March 31, 2022 and December 31, 2021, respectively:

March 31, 2022 December 31, 2021

Non-interest bearing demand deposits $ 269,481 $ 276,631

4 unchanged sentences

Total deposits $ 1,428,223 $ 1,387,535

Brokered deposits included above:

$ 2,520 $ 2,516

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:

At March 31, 2022, the scheduled maturities of time deposits were as follows for the year ended, except December 31, 2022 which is the nine months ended:

December 31, 2022 $ 128,883

5 unchanged sentences

Total $ 173,010

Time deposits of $250 or more were $ 24,741 and $ 46,660 at September 30, 2021 and December 31, 2020, respectively.

Time deposits of $250 or more were $ 19,762 and $ 22,381 at March 31, 2022 and December 31, 2021, respectively.

Brokered deposits were $ 11 at both March 31, 2022 and December 31, 2021, respectively.

NOTE 7 – FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES AND OTHER BORROWINGS

A summary of Federal Home Loan Bank advances and other borrowings at September 30, 2021 and December 31, 2020 is as follows:

September 30, 2021 December 31, 2020

A summary of Federal Home Loan Bank advances and other borrowings at March 31, 2022 and December 31, 2021 is as follows:

March 31, 2022 December 31, 2021

Stated Maturity Amount Range of Stated Rates Amount Range of Stated Rates

5 unchanged sentences

2030 12,500 0.52 % 0.86 % 12,500 0.52 % 0.86 %

Subtotal 85,530 111,530

5 unchanged sentences

2032 35,000 4.75 % 4.75 % — — % — %

$ 65,000 $ 30,000

Unamortized debt issuance costs ( 1,188 ) ( 430 )

1 unchanged sentence

Totals $ 172,592 $ 169,953

(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.

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.

(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.

(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.

(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.

(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 $ 931,498 and $ 861,900 at March 31, 2022 and December 31, 2021, respectively.

At March 31, 2022, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $ 240,412 compared to $ 204,271 as of December 31, 2021.

(2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $ 111,530 and $ 123,530 , during the three months ended March 31, 2022 and the twelve months ended December 31, 2021, respectively.

(3) There are no FHLB borrowings maturing within twelve months of March 31, 2022.

The weighted-average interest rate on FHLB borrowings maturing within twelve months as of December 31, 2021 was 2.45 %.

(4) FHLB term notes totaling $ 55,000 can be called or replaced by the FHLB on a quarterly basis, and if not called, will mature at various dates in 2029 and 2030.

(5) Senior notes, entered into by the Company in June 2019 consist of the following:

(a) A term note, which was subsequently refinanced in October 2020, requiring quarterly interest-only payments through June 2022, and quarterly principal and interest payments thereafter.

Interest is variable, based on US Prime rate with a floor rate of 3.25 %.

(a) A term note, which was subsequently refinanced in March 2022, requiring quarterly interest-only payments through March 2025, and quarterly principal and interest payments thereafter.

Interest is variable, based on US Prime rate minus 75 basis points with a floor rate of 3.00 %.

(b) A $ 5,000 line of credit, maturing in August 2022, that remains undrawn upon.

2 unchanged sentences

In August 2022, they convert to a three-month LIBOR plus 4.90 % rate, and the interest rate will reset quarterly thereafter.

The note is callable by the Bank when, and anytime after, the floating rate is initially set.

Interest-only payments are due quarterly.

1 unchanged sentence

In September 2025, the fixed interest rate will be reset quarterly to equal the three-month term Secured Overnight Financing Rate plus 591 basis points.

The note is callable by the Bank when, and anytime after, the floating rate is initially set.

Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period.

(c) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in March 2022, which bears a fixed interest rate of 4.75 % for five years .

In April 2027, the fixed interest rate will be reset quarterly to equal the three-month term Secured Overnight Financing Rate plus 329 basis points.

The note is callable by the Bank when, and anytime after, the floating rate is initially set.

Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period.

Federal Home Loan Bank Letters of Credit

1 unchanged sentence

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.

These balances were $ 180,250 and $ 179,400 at September 30, 2021 and December 31, 2020, respectively.

These balances were $ 209,400 and $ 176,150 at March 31, 2022 and December 31, 2021, respectively.

Federal Reserve Bank Paycheck Protection Program Liquidity Facility (“FRB PPPLF”) Program

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.

The Bank has no outstanding loan balances under this facility at September 30, 2021 and December 31, 2020.

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.

The Bank has originated Small Business Administration’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.

The Bank had no outstanding loan balances under this facility at March 31, 2022 and December 31, 2021.

There were no month-end borrowed amounts outstanding under this agreement during the three months ended March 31, 2022 and the twelve months ended December 31, 2021, respectively.

In July 2021, the Bank pledged these SBA PPP loans to the FHLB.

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If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.

At September 30, 2021, the Bank was categorized as “Well Capitalized”, under Prompt Corrective Action Provisions.

The Bank’s Tier 1 (leverage) and risk-based capital ratios at September 30, 2021 and December 31, 2020, respectively, are presented below:

At March 31, 2022, the Bank was categorized as “Well Capitalized”, under Prompt Corrective Action Provisions.

The Bank’s Tier 1 (leverage) and risk-based capital ratios at March 31, 2022 and December 31, 2021, respectively, are presented below:

Actual For Capital Adequacy

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Amount Ratio Amount Ratio Amount Ratio

As of September 30, 2021

As of March 31, 2022

Total capital (to risk weighted assets) $ 207,760 14.9 % $ 111,180 > = 8.0 % $ 138,975 > = 10.0 %

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Tier 1 leverage ratio (to adjusted total assets) 170,870 10.0 % 68,323 > = 4.0 % 85,403 > = 5.0 %

The Company’s Tier 1 (leverage) and risk-based capital ratios at September 30, 2021 and December 31, 2020, respectively, are presented below:

The Company’s Tier 1 (leverage) and risk-based capital ratios at March 31, 2022 and December 31, 2021, respectively, are presented below:

Actual For Capital Adequacy

Amount Ratio Amount Ratio

As of September 30, 2021

As of March 31, 2022

Total capital (to risk weighted assets) $ 219,277 15.8 % 111,180 > = 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.

As of September 30, 2021, 163,974 restricted shares had been granted under this plan.

As of September 30, 2021, no stock options had been granted under this plan.

As of March 31, 2022, 214,394 restricted shares had been granted under this plan.

This amount includes 11,834 shares of performance based restricted stock granted in 2019 and issued in January 2022 upon achievement of the performance criteria and completion of the three year performance period beginning in January 2019 and ending December 31, 2021.

As of March 31, 2022, 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.

As of September 30, 2021, there are 900 awarded unvested restricted shares and 65,900 awarded unexercised options remaining from the plan.

As of March 31, 2022, there are 400 awarded unvested restricted shares and 63,400 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.

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.

Net compensation expense related to restricted stock awards from these plans was $ 195 for the three months ended March 31, 2022, compared to $ 171 for the three months ended March 31, 2021.

Restricted Common Stock Award

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Number of Shares Weighted

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Forfeited — — ( 1,500 ) 10.78

Unvested and outstanding at end of year 101,759 $ 11.29 57,242 $ 12.23

Unvested and outstanding at end of period 90,567 $ 12.41 75,630 $ 11.20

The Company accounts for stock option-based employee compensation related to the Company’s 2008 Equity Incentive Plan and 2018 Equity Incentive Plan using the fair-value-based method.

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.

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.

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.

The compensation cost recognized for stock option-based employee compensation related to these plans for the three month period ended March 31, 2022 was $ 1 .

The compensation cost recognized for stock option-based employee compensation related to these plans for the three month period ended March 31, 2021 was $ 3 .

Common Stock Option Awards

2 unchanged sentences

Term in Years Aggregate

September 30, 2021

March 31, 2022

Outstanding at beginning of year 65,900 $ 11.20

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Information related to the 2008 Equity Incentive Plan for the respective periods follows:

Nine months ended September 30, 2021 Twelve months ended December 31, 2020

Three months ended March 31, 2022 Twelve months ended December 31, 2021

Intrinsic value of options exercised $ 19 $ 28

14 unchanged sentences

Assets Measured on a Recurring Basis

The following tables present the financial instruments measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020:

The following tables present the financial instruments measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021:

Value Quoted Prices in

3 unchanged sentences

(Level 2) Significant

September 30, 2021

March 31, 2022

Investment securities:

government agency obligations $ 23,881 $ — $ 23,881 $ —

Obligations of states and political subdivisions 140 — 140 —

Mortgage-backed securities 95,551 — 95,551 —

1 unchanged sentence

Corporate asset-backed securities 32,527 — 32,527 —

Trust preferred securities 9,240 — 9,240 —

Total investment securities 187,905 — 187,905 —

Equity Investments:

Equity Investments 331 331 — —

Equity investments measured at NAV(1) 960 — — —

Total equity investments 1,291 331 — —

Total $ 189,196 $ 331 $ 187,905 $ —

6 unchanged sentences

Corporate asset backed securities 33,908 — 33,908 —

Trust preferred securities 16,448 — 16,448 —

Total investment securities 203,068 — 203,068 —

Equity Investments:

Equity Investments 368 368 — —

Equity investments measured at NAV(1) 960 — — —

Total equity investments 1,328 368 — —

Total $ 204,396 $ 368 $ 203,068 $ —

(1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B.

Assets Measured on Nonrecurring Basis

The following tables present the financial instruments measured at fair value on a nonrecurring basis as of September 30, 2021 and December 31, 2020:

The following tables present the financial instruments measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021:

Carrying Value Quoted Prices in

3 unchanged sentences

(Level 2) Significant

September 30, 2021

March 31, 2022

Foreclosed and repossessed assets, net $ 1,368 $ — $ — $ 1,368

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recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at

September 30, 2021.

March 31, 2022.

Value Valuation Techniques (1) Significant Unobservable Inputs (2) Range

September 30, 2021

March 31, 2022

Foreclosed and repossessed assets, net $ 1,368 Appraisal value Estimated costs to sell 10 % - 15 %

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The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Valuation Method Used Carrying

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Securities held to maturity “HTM” (Level II) 104,894 95,975 71,141 69,177

Equity securities with readily determinable fair value (Level I) 327 327 200 200

Equity investments (Level I) 331 331 368 368

Equity investments valued at NAV(1) N/A 960 960 960 960

Other investments (Level II) 15,084 15,084 15,305 15,305

8 unchanged sentences

Accrued interest payable (Level I) 375 375 586 586

(1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B.

NOTE 11— EARNINGS PER SHARE

1 unchanged sentence

A reconciliation of the basic and diluted earnings per share is as follows:

Three Months Ended Nine Months Ended

(Share count in thousands) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020

Three Months Ended

(Share count in thousands) March 31, 2022 March 31, 2021

Net income attributable to common stockholders $ 4,706 $ 5,506

8 unchanged sentences

NOTE 12 – OTHER COMPREHENSIVE INCOME (LOSS)

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:

The following tables show the tax effects allocated to each component of other comprehensive income (loss) for the three months ended March 31, 2022 and 2021:

Three months ended

September 30, 2021 September 30, 2020

Expense Net-of-Tax

Amount Before-Tax

Expense Net-of-Tax

Unrealized (losses) gains on securities:

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 ) — — —

Other comprehensive (loss) income $ ( 1,141 ) $ 313 $ ( 828 ) $ 1,220 $ ( 335 ) $ 885

Nine Months Ended

September 30, 2021 September 30, 2020

March 31, 2022 March 31, 2021

Amount Tax Benefit

(Expense) Net-of-Tax

Amount Before-Tax

Amount Tax Benefit

(Expense) Net-of-Tax

Unrealized (losses) gains on securities:

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 )

Other comprehensive (loss) income $ ( 356 ) $ 98 $ ( 258 ) $ 1,896 $ ( 521 ) $ 1,375

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:

Unrealized losses on securities:

Net unrealized losses arising during the period $ ( 9,824 ) $ 2,701 $ ( 7,123 ) $ ( 672 ) $ 186 $ ( 486 )

Other comprehensive loss $ ( 9,824 ) $ 2,701 $ ( 7,123 ) $ ( 672 ) $ 186 $ ( 486 )

The changes in the accumulated balances for each component of other comprehensive income (loss), net of tax for the twelve months ended December 31, 2021 and the three months ended March 31, 2022 were as follows:

Gains (Losses)

3 unchanged sentences

Beginning Balance, January 1, 2021 $ 2,056 $ 1,490

Current year-to-date other comprehensive income 2,705 1,961

Current year-to-date other comprehensive loss ( 1,834 ) ( 1,329 )

Ending balance, December 31, 2021 $ 222 $ 161

Current year-to-date other comprehensive loss ( 9,824 ) ( 7,123 )

Ending balance, September 30, 2021 $ 1,700 $ 1,232

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)

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

Sale of securities $ 42 $ 78 Net gains (losses) on investment securities

Tax Effect ( 11 ) ( 21 ) Provision for income taxes

Total reclassifications for the period $ 31 $ 57 Net income attributable to common stockholders

(1) Amounts in parentheses indicate decreases to income/loss.

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)

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

Sale of securities $ — $ 156 Net gains (losses) on investment securities

Tax Effect — ( 43 ) Provision for income taxes

Total reclassifications for the period $ — $ 113 Net income attributable to common stockholders

(1) Amounts in parentheses indicate decreases to profit/loss.

Ending balance, March 31, 2022 $ ( 9,602 ) $ ( 6,962 )

There were no reclassifications out of accumulated other comprehensive income (loss) for either of the three month periods ended March 31, 2022 or March 31, 2021, respectively.

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