What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-08-04 compared with 2022-05-04 · 254 added, 154 removed, 1259 unchanged (24% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

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

June 30, 2022 (unaudited) and December 31, 2021

(derived from audited financial statements)

(in thousands, except share and per share data)

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Cash and cash equivalents $ 31,743 $ 47,691

34 unchanged sentences

Consolidated Statements of Operations (unaudited)

Three Months Ended March 31, 2022 and 2021

Three and Six Months Ended June 30, 2022 and 2021

(in thousands, except per share data)

Three Months Ended

March 31, 2022 March 31, 2021

Three Months Ended Six Months Ended

June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021

Interest and dividend income:

42 unchanged sentences

Consolidated Statements of Comprehensive (Loss) Income (unaudited)

Three months ended March 31, 2022 and 2021

Three and Six months ended June 30, 2022 and 2021

(in thousands)

Three Months Ended

March 31, 2022 March 31, 2021

Three Months Ended Six Months Ended

June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021

Net income attributable to common stockholders $ 4,366 $ 4,706 $ 9,072 $ 10,212

Other comprehensive loss, net of tax:

Other comprehensive (loss) income, net of tax:

Securities available for sale

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

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

Net unrealized (losses) gains arising during period, net of tax ( 5,315 ) 1,082 ( 12,438 ) 596

Reclassification adjustment for net gains included in net income, net of tax — ( 26 ) — ( 26 )

Other comprehensive (loss) income, net of tax ( 5,315 ) 1,056 ( 12,438 ) 570

Comprehensive (loss) income $ ( 949 ) $ 5,762 $ ( 3,366 ) $ 10,782

2 unchanged sentences

Consolidated Statement of Changes in Stockholders’ Equity (unaudited)

Three Months Ended March 31, 2022

Six Months Ended June 30, 2022

(in thousands, except shares and per share data)

14 unchanged sentences

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

Net income — — — 4,366 — 4,366

Other comprehensive loss, net of tax — — — — ( 5,315 ) ( 5,315 )

Forfeiture of unvested shares ( 866 ) — — — — —

Restricted common stock awarded under the equity incentive plan 4,500 — — — — —

Stock option expense — — 1 — — 1

Amortization of restricted stock — — 197 — — 197

Balance at June 30, 2022 10,530,415 $ 105 $ 119,987 $ 56,928 $ ( 12,277 ) $ 164,743

See accompanying condensed notes to unaudited consolidated financial statements.

43 unchanged sentences

Consolidated Statements of Cash Flows (unaudited)

Three Months Ended March 31, 2022 and 2021

Six Months Ended June 30, 2022 and 2021

(in thousands)

Three Months Ended

March 31, 2022 March 31, 2021

Six Months Ended

June 30, 2022 June 30, 2021

Cash flows from operating activities:

3 unchanged sentences

Depreciation expense 1,163 1,092

Provision for loan losses 400 —

Net realized loss (gain) on equity securities 113 ( 236 )

Net realized gain on debt securities — ( 36 )

Increase in mortgage servicing rights resulting from transfers of financial assets ( 227 ) ( 601 )

21 unchanged sentences

Proceeds from principal payments and maturities of held to maturity securities 7,204 4,455

Purchase of equity investments ( 150 ) —

Net sales of other investments 406 121

Proceeds from sales of foreclosed and repossessed assets 38 360

Net decrease in loans 20,704 45,189

Net (increase) decrease in loans ( 36,445 ) 55,742

Net capital expenditures ( 1,583 ) ( 1,181 )

3 unchanged sentences

Cash flows from financing activities:

Federal Home Loan Bank advances 44,000 —

Amortization of fair value adjustments for acquired Federal Home Loan Bank advances 3 ( 2 )

Federal Home Loan Bank advance call payments ( 27,500 ) —

Federal Home Loan Bank advance termination payments ( 15,015 ) ( 8,102 )

9 unchanged sentences

Net cash provided by financing activities 28,710 56,190

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

Net (decrease) increase in cash and cash equivalents ( 15,948 ) 9,000

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

4 unchanged sentences

Interest on borrowings $ 2,148 $ 2,307

Income taxes $ 1,880 $ 3,340

Supplemental noncash disclosure:

16 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 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.

In preparing these consolidated financial statements, we evaluated the events and transactions that occurred subsequent to the June 30, 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.

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, 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 quarter ended March 31, 2022, filed with the SEC on May 4, 2022;

the matters described in “Risk Factors” in Item 1A of this Form 10-Q;

6 unchanged sentences

Held to maturity securities are stated at amortized cost.

Investment securities not classified as held to maturity are classified as available for sale.

Investment securities not classified as held to maturity are classified as available

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.

29 unchanged sentences

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

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 $ 14,899 at June 30, 2022 consisted of $ 7,010 of FHLB stock, $ 5,661 of Federal Reserve Bank stock and $ 2,228 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.

49 unchanged sentences

the remaining life of the acquired loans, delinquency status, estimated prepayments, payment options and other loan features, internal risk grade, estimated value of the underlying collateral and interest rate environment.

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.

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.

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.

36 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 March 31, 2022 which is related to its banking activities.

The Company has one reporting unit as of June 30, 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.

14 unchanged sentences

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 .

As of June 30, 2022, the carrying amount of this investment, which is included in other assets in the consolidated balance sheets, was $ 3,731 .

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.

As of June 30, 2022, there were no known instances of noncompliance associated with the investment.

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

63 unchanged sentences

Recently Issued, But Not Yet Effective Accounting Pronouncements

Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments-- The ASU changes accounting for credit losses on loans receivable and debt securities from an incurred loss methodology to an expected credit loss methodology.

ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments-- The ASU changes accounting for credit losses on loans receivable and debt securities from an incurred loss methodology to an expected credit loss methodology.

Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.

4 unchanged sentences

Earlier adoption is permitted;

however, the Company does not currently plan to adopt the ASU early.

Management is assessing alternative loss estimation methodologies and the Company’s data and system needs in order to evaluate the impact that adoption of this standard will have on the Company’s financial condition and results of operations.

however, the Company elected not to adopt the ASU early.

The Company has selected a loss estimation methodology, utilizing a third-party model, and is currently finalizing its process for model utilization.

The impact of adoption on the financial condition and results of operations cannot yet be definitively determined due to the sensitivity of the model to various inputs and changing economic forecasts.

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.

ASU 2022-02, 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.

3 unchanged sentences

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 March 31, 2022 and December 31, 2021, 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 June 30, 2022 and December 31, 2021, respectively, were as follows:

Available for sale securities Amortized

Losses Estimated

March 31, 2022

June 30, 2022

government agency obligations $ 21,677 $ 331 $ 146 $ 21,862

12 unchanged sentences

Losses Estimated

March 31, 2022

June 30, 2022

Obligations of states and political subdivisions $ 600 $ — $ 39 $ 561

5 unchanged sentences

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

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.

At June 30, 2022, the Bank has pledged mortgage-backed securities with a carrying value of $ 5,646 as collateral against a borrowing line of credit with the Federal Reserve Bank.

However, as of June 30, 2022, there were no borrowings outstanding on this Federal Reserve Bank line of credit.

As of June 30, 2022, the Bank has pledged U.S.

Government Agency securities with a carrying value of $ 3,026 and mortgage-backed securities with a carrying value of $ 2,476 as collateral against specific municipal deposits.

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.

As of June 30, 2022, the Bank also has mortgage-backed securities with a carrying value of $ 190 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 $ 3,934 and mortgage-backed securities with a carrying value of $ 2,879

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 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.

For the three and six month periods ended June 30, 2022 there were no sales of available for sale securities.

For the three and six month periods ended June 30, 2021, gross sales of available for sale securities were $ 1,965 .

Gross gains on the sale of available for sale securities for the three and six months periods ended June 30, 2021 were $ 36 .

There were no losses on the sale of available for sale securities for the three and six months ended June 30, 2021.

The estimated fair value of securities at June 30, 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.

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Available for sale securities Amortized

9 unchanged sentences

Total available for sale securities $ 194,002 $ 177,068 $ 202,846 $ 203,068

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Held to maturity securities Amortized

7 unchanged sentences

Total held to maturity securities $ 99,249 $ 84,788 $ 71,141 $ 69,177

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:

Securities with unrealized losses at June 30, 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

March 31, 2022

June 30, 2022

government agency obligations $ 3,585 $ 146 $ — $ — $ 3,585 $ 146

14 unchanged sentences

Value Unrealized

March 31, 2022

June 30, 2022

Obligations of states and political subdivisions $ 561 $ 39 $ — $ — $ 561 $ 39

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.

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

Below is a summary of originated and acquired loans by type and risk rating as of June 30, 2022:

1 to 5 6 7 8 9 TOTAL

118 unchanged sentences

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

Three months ended March 31, 2022

Three months ended June 30, 2022

Allowance for Loan Losses:

Beginning balance, April 1, 2022 $ 12,394 $ 2,104 $ 460 $ 160 $ 782 $ 15,900

Charge-offs ( 122 ) ( 247 ) ( 35 ) ( 14 ) — ( 418 )

Recoveries 3 9 — 11 — 23

Provision 427 44 47 ( 14 ) 44 548

Total allowance on originated loans 12,702 1,910 472 143 826 16,053

Purchased credit impaired loans — — — — — —

Other acquired loans:

Beginning balance, April 1, 2022 789 58 62 9 — 918

Charge-offs — — ( 21 ) ( 2 ) — ( 23 )

Recoveries — — 25 — — 25

Provision ( 125 ) ( 7 ) ( 18 ) 2 — ( 148 )

Total allowance on other acquired loans 664 51 48 9 — 772

Total allowance on acquired loans 664 51 48 9 — 772

Ending balance, June 30, 2022 $ 13,366 $ 1,961 $ 520 $ 152 $ 826 $ 16,825

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

Six months ended June 30, 2022

Allowance for Loan Losses:

Beginning balance, January 1, 2022 $ 12,354 $ 1,959 $ 518 $ 225 $ 774 $ 15,830

11 unchanged sentences

Total allowance on acquired loans 664 51 48 9 — 772

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

Allowance for Loan Losses at March 31, 2022:

Ending balance, June 30, 2022 $ 13,366 $ 1,961 $ 520 $ 152 $ 826 $ 16,825

Allowance for Loan Losses at June 30, 2022:

Amount of allowance for loan losses arising from loans individually evaluated for impairment $ 809 $ — $ 34 $ — $ — $ 843

Amount of allowance for loan losses arising from loans collectively evaluated for impairment $ 12,557 $ 1,961 $ 486 $ 152 $ 826 $ 15,982

Loans Receivable as of March 31, 2022:

Loans Receivable as of June 30, 2022:

Ending balance of originated loans $ 943,305 $ 144,400 $ 69,126 $ 20,208 $ — $ 1,177,039

7 unchanged sentences

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

Three months ended March 31, 2021

Three months ended June 30, 2021

Allowance for Loan Losses:

Beginning balance, April 1, 2021 $ 11,109 $ 1,633 $ 941 $ 450 $ 895 $ 15,028

Charge-offs ( 51 ) — — ( 12 ) — ( 63 )

Recoveries 1 30 2 21 — 54

Provision ( 169 ) 519 ( 172 ) ( 97 ) ( 40 ) 41

Total allowance on originated loans 10,890 2,182 771 362 855 15,060

Purchased credit impaired loans — — — — — —

Other acquired loans:

Beginning balance, April 1, 2021 1,301 94 388 49 — 1,832

Charge-offs — ( 7 ) — ( 3 ) — ( 10 )

Recoveries — 3 1 — — 4

Provision 167 ( 9 ) ( 158 ) ( 41 ) — ( 41 )

Total allowance on other acquired loans 1,468 81 231 5 — 1,785

Total allowance on acquired loans 1,468 81 231 5 — 1,785

Ending balance, June 30, 2021 $ 12,358 $ 2,263 $ 1,002 $ 367 $ 855 $ 16,845

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

Six months ended June 30, 2021

Allowance for Loan Losses:

Beginning balance, January 1, 2021 $ 10,271 $ 2,112 $ 1,041 $ 489 $ 906 $ 14,819

11 unchanged sentences

Total allowance on acquired loans 1,468 81 231 5 — 1,785

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

Allowance for Loan Losses at March 31, 2021:

Ending balance, June 30, 2021 $ 12,358 $ 2,263 $ 1,002 $ 367 $ 855 $ 16,845

Allowance for Loan Losses at June 30, 2021:

Amount of allowance for loan losses arising from loans individually evaluated for impairment $ 796 $ 527 $ 144 $ — $ — $ 1,467

Amount of allowance for loan losses arising from loans collectively evaluated for impairment $ 11,562 $ 1,736 $ 858 $ 367 $ 855 $ 15,378

Loans Receivable as of March 31, 2021

Loans Receivable as of June 30, 2021

Ending balance of originated loans $ 666,866 $ 178,722 $ 77,914 $ 30,673 $ — $ 954,175

21 unchanged sentences

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

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

June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021

Performing loans

8 unchanged sentences

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

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:

As of June 30, 2022 the Company had $ 257,478 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 June 30, 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

March 31, 2022

June 30, 2022

Commercial/Agricultural real estate:

5 unchanged sentences

Commercial and industrial 7 8 — 15 211 226 138,776 139,002

C&I SBA PPP loans — — — — — — 2,071 2,071

Agricultural operating 146 — — 146 555 701 23,768 24,469

23 unchanged sentences

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

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 ;

At June 30, 2022, the Company individually evaluated loans for impairment with a recorded investment of $ 29,386 , consisting of (1) $ 8,485 purchased credit impaired (“PCI”) loans, with a carrying amount of $ 8,075 ;

(2) $ 7,118 TDR loans, net of TDR PCI loans;

and (3) $ 14,193 of substandard non-TDR, non-PCI loans.

The $ 33,741 total of loans individually evaluated for impairment includes $ 5,645 of performing TDR loans.

The $ 29,386 recorded investment of loans individually evaluated for impairment includes $ 5,962 of performing TDR loans.

At December 31, 2021, the Company individually evaluated loans for impairment with a recorded investment of $ 31,740 , consisting of (1) $ 11,205 PCI loans, with a carrying amount of $ 10,552 ;

1 unchanged sentence

and (3) $ 11,328 of substandard non-TDR, non-PCI loans.

The $ 31,740 total of loans individually evaluated for impairment includes $ 7,984 of performing TDR loans.

The $ 31,740 recorded investment of loans individually evaluated for impairment includes $ 7,984 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.

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

A summary of the Company’s loans individually evaluated for impairment as of June 30, 2022, December 31, 2021 and June 30, 2021 was as follows:

Three Months Ended Six Months Ended

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

June 30, 2022

With No Related Allowance Recorded:

10 unchanged sentences

Total $ 6,004 $ 6,004 $ 843 $ 6,617 $ 4 $ 6,202 $ 26

March 31, 2022 Totals:

June 30, 2022 Totals:

Commercial/Agricultural real estate $ 19,093 $ 19,305 $ 809 $ 19,707 $ 172 $ 20,972 $ 319

24 unchanged sentences

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

Three Months Ended

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

March 31, 2021

Three Months Ended Six Months Ended

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

June 30, 2021

With No Related Allowance Recorded:

10 unchanged sentences

Total $ 4,952 $ 4,952 $ 1,467 $ 5,459 $ 48 $ 5,024 $ 118

March 31, 2021 Totals:

June 30, 2021 Totals:

Commercial/Agricultural real estate $ 23,063 $ 23,607 $ 796 $ 23,681 $ 252 $ 24,318 $ 553

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 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

There were four delinquent accruing TDR loans greater than 60 days past due, with a recorded investment of $ 463 at June 30, 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 June 30, 2022 and December 31, 2021.

June 30, 2022 December 31, 2021

Troubled debt restructure loans:

2 unchanged sentences

Total $ 8,712 $ 12,523

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:

There was one loan commitment for $ 38 meeting our TDR criteria as of June 30, 2022 and no loan commitments meeting our TDR criteria as of December 31, 2021.

There were unused lines of credit totaling $ 77 and $ 10 meeting our TDR criteria as of June 30, 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 and six months ended June 30, 2022:

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 March 31, 2022

Three months ended June 30, 2022

Commercial/Agricultural real estate 1 $ — $ — $ 425 $ — $ 425 $ 425 $ —

4 unchanged sentences

Three months ended March 31, 2021

Six months ended June 30, 2022

Commercial/Agricultural real estate 5 $ 1,241 $ — $ 425 $ — $ 1,666 $ 1,666 $ —

3 unchanged sentences

Totals 14 $ 1,304 $ — $ 1,528 $ — $ 2,832 $ 2,832 $ —

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

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:

Three months ended June 30, 2021

Commercial/Agricultural real estate 1 $ 1 $ — $ — $ — $ 1 $ 1 $ —

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

Residential mortgage — — — — — — — —

Consumer installment 1 — — 18 — 18 18 —

Totals 2 $ 1 $ — $ 18 $ — $ 19 $ 19 $ —

Six months ended June 30, 2021

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

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

Residential mortgage 2 66 — 14 — 80 80 —

Consumer installment 2 6 — 18 — 24 24 —

Totals 8 $ 111 $ 81 $ 272 $ — $ 464 $ 464 $ —

A summary of loans by loan segment modified in a troubled debt restructuring as of June 30, 2022 and June 30, 2021, was as follows:

June 30, 2022 June 30, 2021

Modifications Recorded

7 unchanged sentences

Total troubled debt restructurings 70 $ 8,712 91 $ 16,597

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:

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, 2022 and June 30, 2021, as well as the recorded investment in these restructured loans as of June 30, 2022 and June 30, 2021:

Three Months Ended

March 31, 2022 March 31, 2021

June 30, 2022 June 30, 2021

Modifications Recorded

7 unchanged sentences

Total troubled debt restructurings — $ — — $ —

Six Months Ended

June 30, 2022 June 30, 2021

Modifications Recorded

Investment Number of

Modifications Recorded

Troubled debt restructurings:

Commercial/Agricultural real estate — $ — — $ —

C&I/Agricultural operating — — — —

Residential mortgage — — 1 19

Consumer installment — — — —

Total troubled debt restructurings — $ — 1 $ 19

All acquired loans were initially recorded at fair value at the acquisition date.

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

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

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

9 unchanged sentences

In addition, the Company has $ 1.35 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;

The scheduled accretion on this balance is estimated to be approximately $ 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

2022 is the six month period from July 1, 2022 through December 31, 2022.

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

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Balance at beginning of period $ 653 $ 1,087

6 unchanged sentences

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 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.

The unpaid balances of these loans as of June 30, 2022 and December 31, 2021 were $ 544,734 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 $ 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

Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $ 4,985 and $ 2,781 at June 30, 2022 and December 31, 2021, respectively.

Mortgage servicing rights activity for the three and six month periods ended June 30, 2022 and June 30, 2021 were as follows:

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

June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021

Mortgage servicing rights:

11 unchanged sentences

end of period $ 5,475 $ 3,894 $ 5,475 $ 3,894

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 $ 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.

The current period change in valuation allowance, if applicable, is included in non-interest expense as mortgage servicing rights expense, net on the consolidated statement of operations.

Servicing fees totaled $ 352 and $ 352 for the three months ended June 30, 2022 and June 30, 2021, respectively.

Servicing fees totaled $ 703 and $ 704 for the six months ended June 30, 2022 and June 30, 2021, respectively.

Servicing fees 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 both March 31, 2022 and March 31, 2021, was determined using discount rates ranging from 9 % to 12 %.

Fair value at both June 30, 2022 and June 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.

2 unchanged sentences

Our leases have remaining lease terms ranging from approximately 0.75 to 6.00 years, some of which include options to extend the leases for up to 5 additional years.

As of March 31, 2022, we have no additional lease commitments that have not yet commenced.

As of June 30, 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.

Three Months Ended

March 31, 2022 March 31, 2021

Six Months Ended

June 30, 2022 June 30, 2021

The components of total lease cost were as follows:

7 unchanged sentences

Operating cash flows from operating leases $ 278 $ 276

Right-of-use assets obtained in exchange for lease obligations:

Operating leases $ — $ —

March 31, 2022 December 31, 2021

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

March 31, 2022 December 31, 2021

The following is a summary of deposits by type at June 30, 2022 and December 31, 2021, respectively:

June 30, 2022 December 31, 2021

Non-interest bearing demand deposits $ 276,815 $ 276,631

4 unchanged sentences

Total deposits $ 1,400,210 $ 1,387,535

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:

At June 30, 2022, the scheduled maturities of time deposits were as follows for the year ended, except December 31, 2022 which is the six months ended:

December 31, 2022 $ 65,125

5 unchanged sentences

Total $ 153,498

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.

Time deposits of $250 or more were $ 17,641 and $ 22,381 at June 30, 2022 and December 31, 2021, respectively.

Brokered deposits were $ 6 at June 30, 2022 and $ 11 at 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 March 31, 2022 and December 31, 2021 is as follows:

March 31, 2022 December 31, 2021

A summary of Federal Home Loan Bank advances and other borrowings at June 30, 2022 and December 31, 2021 is as follows:

June 30, 2022 December 31, 2021

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

16 unchanged sentences

Totals $ 189,154 $ 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 $ 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.

(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 $ 920,774 and $ 861,900 at June 30, 2022 and December 31, 2021, respectively.

At June 30, 2022, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $ 230,585 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 six months ended June 30, 2022 and the twelve months ended December 31, 2021, respectively.

(3) The weighted-average interest rate on FHLB borrowings maturing within twelve months as of June 30, 2022 and December 31, 2021 were 1.66 % and 2.45 %, respectively.

(4) At June 30, 2022, FHLB term notes totaling $ 27,500 can be called or replaced by the FHLB on a quarterly basis, and if not called, will mature at various dates in 2029.

At December 31, 2021, FHLB term notes totaling $ 55,000 could be called or replaced by the FHLB on a quarterly basis, and if not called, would mature at various dates in 2029 and 2030.

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

1 unchanged sentence

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.

(b) A $ 5,000 line of credit, maturing August 1, 2022, that remains undrawn upon.

The line was renewed on August 1, 2022, and will mature August 1, 2023.

(6) Subordinated notes resulted from the following:

3 unchanged sentences

Interest-only payments are due quarterly.

The Company sent the required redemption notice to the note holders in June 2022, and this subordinated note will be called and repaid in full on August 10, 2022.

(b) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in August 2020, which bears a fixed interest rate of 6.00 % for five years .

9 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.

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

These balances were $ 190,400 and $ 176,150 at June 30, 2022 and December 31, 2021, respectively.

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

1 unchanged sentence

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.

The Bank had no outstanding loan balances under this facility at June 30, 2022 and December 31, 2021.

There were no month-end borrowed amounts outstanding under this agreement during the six months ended June 30, 2022 and the twelve months ended December 31, 2021, 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.

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:

At June 30, 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 June 30, 2022 and December 31, 2021, respectively, are presented below:

Actual For Capital Adequacy

3 unchanged sentences

Amount Ratio Amount Ratio Amount Ratio

As of March 31, 2022

As of June 30, 2022

Total capital (to risk weighted assets) $ 213,799 14.3 % $ 119,200 > = 8.0 % $ 149,000 > = 10.0 %

7 unchanged sentences

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 March 31, 2022 and December 31, 2021, respectively, are presented below:

The Company’s Tier 1 (leverage) and risk-based capital ratios at June 30, 2022 and December 31, 2021, respectively, are presented below:

Actual For Capital Adequacy

Amount Ratio Amount Ratio

As of March 31, 2022

As of June 30, 2022

Total capital (to risk weighted assets) $ 224,247 15.1 % 119,200 > = 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 March 31, 2022, 214,394 restricted shares had been granted under this plan.

As of June 30, 2022, 218,894 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.

As of June 30, 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 March 31, 2022, there are 400 awarded unvested restricted shares and 63,400 awarded unexercised options remaining from the plan.

As of June 30, 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 $ 195 for the three months ended March 31, 2022, compared to $ 171 for the three months ended March 31, 2021.

Net compensation expense related to restricted stock awards from these plans was $ 197 and $ 392 for the three and six months ended June 30, 2022, compared to $ 222 and $ 393 for the three and six months ended June 30, 2021.

Restricted Common Stock Award

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

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.

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 .

The compensation cost recognized for stock option-based employee compensation related to these plans for the three and six month periods ended June 30, 2022 was $ 1 and $ 2 , respectively.

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.

Common Stock Option Awards

2 unchanged sentences

Term in Years Aggregate

March 31, 2022

June 30, 2022

Outstanding at beginning of year 65,900 $ 11.20

10 unchanged sentences

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

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

Six months ended June 30, 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 March 31, 2022 and December 31, 2021:

The following tables present the financial instruments measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021:

Value Quoted Prices in

3 unchanged sentences

(Level 2) Significant

March 31, 2022

June 30, 2022

Investment securities:

24 unchanged sentences

Assets Measured on Nonrecurring Basis

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

The following tables present the financial instruments measured at fair value on a nonrecurring basis as of June 30, 2022 and December 31, 2021:

Carrying Value Quoted Prices in

3 unchanged sentences

(Level 2) Significant

March 31, 2022

June 30, 2022

Foreclosed and repossessed assets, net $ 1,437 $ — $ — $ 1,437

13 unchanged sentences

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

March 31, 2022.

June 30, 2022.

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

March 31, 2022

June 30, 2022

Foreclosed and repossessed assets, net $ 1,437 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:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Valuation Method Used Carrying

11 unchanged sentences

Loans receivable, net (Level III) 1,330,030 1,310,750 1,294,050 1,319,293

Loans held for sale (Level II) 2,528 2,528 6,670 6,670

Loans held for sale - Residential mortgage (Level I) 860 866 1,224 1,250

Loans held for sale - SBA (Level III) 312 330 5,446 5,776

Mortgage servicing rights (Level III) 4,520 5,475 4,161 4,312

9 unchanged sentences

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

Three Months Ended

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

Three Months Ended Six Months Ended

(Share count in thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021

Net income attributable to common stockholders $ 4,366 $ 4,706 $ 9,072 $ 10,212

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 months ended March 31, 2022 and 2021:

The following tables show the tax effects allocated to each component of other comprehensive income (loss) for the three and six months ended June 30, 2022 and 2021:

Three months ended

March 31, 2022 March 31, 2021

June 30, 2022 June 30, 2021

Amount Tax Benefit

4 unchanged sentences

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:

Net unrealized (losses) gains arising during the period $ ( 7,331 ) $ 2,016 $ ( 5,315 ) $ 1,492 $ ( 410 ) $ 1,082

Reclassification adjustment for gains included in net income — — — ( 36 ) 10 ( 26 )

Other comprehensive (loss) income $ ( 7,331 ) $ 2,016 $ ( 5,315 ) $ 1,456 $ ( 400 ) $ 1,056

Six Months Ended

June 30, 2022 June 30, 2021

Expense Net-of-Tax

Amount Before-Tax

Expense Net-of-Tax

Unrealized (losses) gains on securities:

Net unrealized (losses) gains arising during the period $ ( 17,156 ) $ 4,718 $ ( 12,438 ) $ 820 $ ( 224 ) $ 596

Reclassification adjustment for gains included in net income — — — ( 36 ) 10 ( 26 )

Other comprehensive (loss) income $ ( 17,156 ) $ 4,718 $ ( 12,438 ) $ 784 $ ( 214 ) $ 570

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 six months ended June 30, 2022 were as follows:

Gains (Losses)

6 unchanged sentences

Current year-to-date other comprehensive loss ( 17,156 ) ( 12,438 )

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.

Ending balance, June 30, 2022 $ ( 16,934 ) $ ( 12,277 )

Reclassifications out of accumulated other comprehensive income (loss) for the three and six month periods ended June 30, 2022 and June 30, 2021 were as follows:

Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)

Details about Accumulated Other Comprehensive Income (Loss) Components Three months ended June 30, 2022 Six months ended June 30, 2022 (1) Affected Line Item on the Statement of Operations

Unrealized gains and losses

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

Tax effect — — Provision for income taxes

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

Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)

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

Unrealized gains and losses

Sale of securities $ 36 $ 36 Net gains (losses) on investment securities

Tax effect ( 10 ) ( 10 ) Provision for income taxes

Total reclassifications for the period $ 26 $ 26 Net income attributable to common stockholders

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