What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-11-05 compared with 2024-08-06 · 153 added, 179 removed, 662 unchanged (33% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

June 30, 2024 and December 31, 2023

September 30, 2024 and December 31, 2023

(Dollars in thousands)

28 unchanged sentences

authorized 20,000,000 shares;

issued and outstanding 5,457,646 shares at June 30, 2024 and 5,534,499 shares at December 31, 2023

issued and outstanding 5,457,646 shares at September 30, 2024 and 5,534,499 shares at December 31, 2023

Common stock held by deferred compensation trust, at cost;

166,247 shares at June 30, 2024 and 163,702 shares at December 31, 2023

shares at September 30, 2024 and 163,702 shares at December 31, 2023

Deferred compensation

6 unchanged sentences

Consolidated Statements of Earnings

Three and Six Months Ended June 30, 2024 and 2023

Three and Nine Months Ended September 30, 2024 and 2023

(Dollars in thousands, except per share amounts)

Three months ended

Six months ended

Nine months ended

September 30,

Interest income:

16 unchanged sentences

Other service charges and fees

Loss on sale of securities, net

Gain (loss) on sale of securities, net

Mortgage banking income

19 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three and Six Months Ended June 30, 2024 and 2023

Three and Nine Months Ended September 30, 2024 and 2023

(Dollars in thousands)

Three months ended

Six months ended

Nine months ended

September 30,

Other comprehensive income (loss):

Unrealized holding gains (losses) on securities available for sale

Reclassification adjustment for losses on securities available for sale included in net earnings

Reclassification adjustment for (gains) losses on securities available for sale included in net earnings

Total other comprehensive income (loss), before income taxes

1 unchanged sentence

Unrealized holding gains (losses) on securities available for sale

Reclassification adjustment for losses on

on securities available for sale included in net earnings

Reclassification adjustment for (gains) losses on securities available for sale included in net earnings

Total income tax expense (benefit) related to other comprehensive income

4 unchanged sentences

Consolidated Statements of Changes in Shareholders' Equity

Three and Six Months Ended June 30, 2024 and 2023

Three and Nine Months Ended September 30, 2024 and 2023

(Dollars in thousands)

11 unchanged sentences

Balance, June 30, 2024

Cash dividends declared on common stock

Equity incentive plan, net

Change in accumulated other comprehensive income, net of tax

Balance, September 30, 2024

Balance, December 31, 2022

10 unchanged sentences

Balance, June 30, 2023

Common stock repurchase

Cash dividends declared on common stock

Equity incentive plan, net

Change in accumulated other comprehensive loss, net of tax

Balance, September 30, 2023

See accompanying Notes to Consolidated Financial Statements.

1 unchanged sentence

Consolidated Statements of Cash Flows

Six Months Ended June 30, 2024 and 2023

Nine Months Ended September 30, 2024 and 2023

(Dollars in thousands)

Cash flows from operating activities:

Adjustments to reconcile net earnings to

net cash provided by operating activities:

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation, amortization and accretion

1 unchanged sentence

Deferred income taxes

Loss on sale of investment securities net

Gain on sale of held for sale mortgage loans

(Gain) loss on sale of investment securities net

Write-down of premises and equipment

Gain on sale of premises and equipment

9 unchanged sentences

Purchases of investment securities available for sale

Proceeds from sales, calls and maturities of investment securities

available for sale

Proceeds from sales, calls and maturities of investment securities available for sale

Proceeds from paydowns of investment securities available for sale

Proceeds from paydowns of other investment securities

Redemption (purchase) of FHLB stock

Purchase of FHLB stock

Net change in loans

15 unchanged sentences

Consolidated Statements of Cash Flows, continued

Six Months Ended June 30, 2024 and 2023

Nine Months Ended September 30, 2024 and 2023

(Dollars in thousands)

30 unchanged sentences

Recent Accounting Pronouncements

The following table provides a summary of Accounting Standards Updates (“ASU’s”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has not adopted as of June 30, 2024, which may impact the Company’s financial statements.

Effective Date

Effect on Financial Statements or Other Significant Matters

The following table provides a summary of Accounting Standards Updates (“ASU’s”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has not adopted as of September 30, 2024, which may impact the Company’s financial statements.

Effective Date

3 unchanged sentences

Annual periods after 12/15/23 and interim periods after 12/15/24

The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures.

The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position.

The adoption of this guidance is expected to have an immaterial impact on disclosures.

ASU 2023-09 Income Taxes (Topic 740)

The ASU provides amendments to improve the transparency

of income tax disclosures.

The ASU provides amendments to improve the transparency of income tax disclosures.

January 1, 2025

The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures.

The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position.

The adoption of this guidance is expected to have an immaterial impact on disclosures.

ASU 2024-01 Compensation—Stock Compensation (Topic 718)

17 unchanged sentences

The Company’s only component of other comprehensive income is unrealized gains and losses, net of income tax, on investment securities available for sale.

The following table presents the changes in accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023:

The following table presents the changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2024 and 2023:

For the three months ended

For the six months ended

For the nine months ended

(dollars in thousands)

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

September 30,

Beginning balance

Other comprehensive loss before reclassifications, net

Amounts reclassified from accumulated other comprehensive loss, net

Net current period other comprehensive loss

Amounts reclassified from accumulated other comprehensive (gain) loss, net

Net current period other comprehensive gain (loss)

Ending balance

2 unchanged sentences

The average market price during the applicable period is used to compute equivalent shares.

The reconciliation of the amounts used in the computation of both “basic earnings per share” and “diluted earnings per share” for the three and six months ended June 30, 2024 and 2023 is as follows:

For the three months ended June 30, 2024

Shares held in the deferred compensation plan by the deferred compensation trust are excluded for purposes of calculating the weighted average number of shares outstanding and basic earnings per share in accordance with ASC 260-10-45-40 and ASC 260-10-45-45 through ASC 260-26010-45-46.

The reconciliation of the amounts used in the computation of both basic earnings per share and diluted earnings per share for the three and nine months ended September 30, 2024 and 2023 is as follows:

For the three months ended September 30, 2024

Net Earnings (Dollars in thousands)

Weighted Average Number of Shares

Basic earnings per share

1 unchanged sentence

Restricted stock units - unvested

Shares held in deferred comp plan

by deferred compensation trust

Shares held in deferred comp plan by deferred compensation trust

Diluted earnings per share

For the six months ended June 30, 2024

For the nine months ended September 30, 2024

Net Earnings (Dollars in thousands)

Weighted Average Number of Shares

Basic earnings per share

3 unchanged sentences

Diluted earnings per share

For the three months ended June 30, 2023

For the three months ended September 30, 2023

Net Earnings (Dollars in thousands)

Weighted Average Number of Shares

Basic earnings per share

3 unchanged sentences

Diluted earnings per share

For the nine months ended September 30, 2023

Net Earnings (Dollars in thousands)

Weighted Average Number of Shares

Basic earnings per share

4 unchanged sentences

Investment Securities

Investment securities available for sale at June 30, 2024 and December 31, 2023 are as follows:

Investment securities available for sale at September 30, 2024 and December 31, 2023 are as follows:

(Dollars in thousands)

June 30, 2024

September 30, 2024

Government sponsored enterprises

8 unchanged sentences

State and political subdivisions

The current fair value and associated unrealized losses on investments in securities with unrealized losses at June 30, 2024 and December 31, 2023 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2024 and December 31, 2023 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)

June 30, 2024

September 30, 2024

Less than 12 Months

12 Months or More

Unrealized Losses

government sponsored enterprises

6 unchanged sentences

12 Months or More

Unrealized Losses

government sponsored enterprises

2 unchanged sentences

State and political subdivisions

At June 30, 2024, unrealized losses in the investment securities portfolio relating to debt securities totaled $ 52.1 million.

At September 30, 2024, unrealized losses in the investment securities portfolio relating to debt securities totaled $ 40.6 million.

The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary.

From the June 30, 2024 tables above, both of the U.S.

From the September 30, 2024 tables above, both of the U.S.

Treasury securities, all 108 of the securities issued by state and political subdivisions contained unrealized losses, all seven of the securities issued by U.S.

Government sponsored enterprises (“GSE”), 110 of the 118 GSE mortgage-backed securities, and 11 of the 16 private label mortgage backed securities contained unrealized losses.

The Company did not have any reserves on available for sale securities at June 30, 2024, as no credit related losses were identified in the Company’s June 30, 2024 analysis.

The Company did not have any reserves on available for sale securities at September 30, 2024, as no credit related losses were identified in the Company’s September 30, 2024 Current Expected Credit Loss (“CECL”) analysis.

At December 31, 2023, unrealized losses in the investment securities portfolio relating to debt securities totaled $ 51.3 million.

3 unchanged sentences

The Company did not have an allowance for credit losses on available for sale securities at December 31, 2023, as no credit related losses were identified in the Company’s December 31, 2023 CECL analysis.

The amortized cost and estimated fair value of investment securities available for sale at June 30, 2024, presented by contractual maturity, are shown below.

The amortized cost and estimated fair value of investment securities available for sale at September 30, 2024, presented by contractual maturity, are shown below.

Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

June 30, 2024

September 30, 2024

(Dollars in thousands)

Amortized Cost

Due within one year

3 unchanged sentences

Mortgage-backed securities

No securities available for sale were sold during the six months ended June 30, 2024.

No securities available for sale were sold during the three months ended June 30, 2023.

During the six months ended June 30, 2023, proceeds from sales of securities available for sale were $ 51.0 million and resulted in gross losses of $ 2.7 million and gross gains of $ 177,000 .

Securities with a fair value of approximately $ 61.3 million and $ 132.0 million at June 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes as required by law.

Major classifications of loans at June 30, 2024 and December 31, 2023 are summarized as follows:

During the three and nine months ended September 30, 2024, proceeds from sales of securities available for sale were $ 11.7 million and resulted in gross gains of $ 33,000 and gross losses of $ 28,000 .

No securities available for sale were sold during the three months ended September 30, 2023.

During the nine months ended September 30, 2023, proceeds from sales of securities available for sale were $ 51.0 million and resulted in gross losses of $ 2.7 million and gross gains of $ 177,000 .

Securities with a fair value of approximately $ 50.6 million and $ 132.0 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes as required by law.

Major classifications of loans at September 30, 2024 and December 31, 2023 are summarized as follows:

(Dollars in thousands)

June 30, 2024

December 31, 2023

September 30,

Real estate loans:

25 unchanged sentences

Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The following tables present an age analysis of past due loans, by loan type, as of June 30, 2024 and December 31, 2023:

June 30, 2024

The following tables present an age analysis of past due loans, by loan type, as of September 30, 2024 and December 31, 2023:

September 30, 2024

(Dollars in thousands)

23 unchanged sentences

Loans not secured by real estate:

The following table presents non-accrual loans as of June 30, 2024 and December 31, 2023:

June 30, 2024

Nonaccrual Loans

The following table presents non-accrual loans as of September 30, 2024 and December 31, 2023:

September 30, 2024

(Dollars in thousands)

6 unchanged sentences

December 31, 2023

Nonaccrual Loans

(Dollars in thousands)

5 unchanged sentences

Loans not secured by real estate:

No interest income was recognized on non-accrual loans for the six months ended June 30, 2024 and 2023.

No interest income was recognized on non-accrual loans for the nine months ended September 30, 2024 and 2023.

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination or acquisition.

1 unchanged sentence

An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification.

A change to the allowance for credit losses is evaluated based on the nature of the modification.

Occasionally, the Bank modifies loans by providing principal forgiveness on certain loans.

5 unchanged sentences

If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.

The following tables show the amortized cost basis at June 30, 2024 and 2023 of the loans to borrowers experiencing financial difficulty that were modified during the six months ended June 30, 2024 and 2023, disaggregated by loan class and type of concession granted.

The following tables show the amortized cost basis at September 30, 2024 and 2023 of the loans to borrowers experiencing financial difficulty that were modified during the nine months ended September 30, 2024 and 2023, disaggregated by loan class and type of concession granted.

One $30,000 loan to a borrower experiencing financial difficulty was modified during the three months ended September 30, 2024.

No loans to borrowers experiencing financial difficulty were modified during the three months ended September 30, 2023.

Modifications during the three months ended September 30, 2024 and 2023 are not presented in tables due to immateriality.

(Dollars in thousands)

Amortized Cost Basis at June 30, 2024

Amortized Cost Basis at

September 30,

% of Loan Class

2 unchanged sentences

Single-family residential

Interest rate reduction

Adjustable rate loan converted to fixed rate loan

Interest rate reduction and term extension

Adjustable rate loan converted to fixed rate loan and HELOC converted to amortizing term loan

Commercial not secured by real estate

2 unchanged sentences

(Dollars in thousands)

Amortized Cost Basis at June 30, 2023

Amortized Cost Basis at

September 30,

% of Loan Class

7 unchanged sentences

Extended existing amortization from 148 months to 173 months to keep existing payment the same with the current market rate.

No loans modified in the six months ended June 30, 2024 and 2023 that were made to borrowers experiencing financial difficulty had been written off at June 30, 2024 and 2023.

No loans modified in the nine months ended September 30, 2024 and 2023 that were made to borrowers experiencing financial difficulty had been written off at September 30, 2024 and 2023.

The Bank closely monitors the performance of those loans that are modified because borrowers are experiencing financial difficulty so as to understand the effectiveness of its modification efforts.

The following tables show the performance of loans that have been modified in the six months ended June 30, 2024 and 2023.

June 30, 2024

The following tables show the performance of loans that have been modified in the nine months ended September 30, 2024 and 2023.

September 30, 2024

(Dollars in thousands)

Payment Status (Amortized Cost Basis)

30 - 89 Days Past Due

90 + Days Past Due

Single-family residential

Commercial not secured by real estate

June 30, 2023

September 30, 2023

(Dollars in thousands)

Payment Status (Amortized Cost Basis)

30 - 89 Days Past Due

90 + Days Past Due

Single-family residential

Commercial real estate

The following tables present changes in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023.

The following tables present changes in the allowance for credit losses for the three and nine months ended September 30, 2024 and 2023.

(Dollars in thousands)

4 unchanged sentences

Consumer and All Other

Three months ended June 30, 2024

Three months ended September 30, 2024

Allowance for credit losses:

Beginning balance

Provision (recovery) for

loan losses (1)

Provision (recovery) for loan losses (1)

Ending balance

Allowance for credit loss-loans

Allowance for credit losses

loan commitments

Allowance for credit losses - loan commitments

Total allowance for credit losses

Six months ended June 30, 2024

Nine months ended September 30, 2024

Allowance for credit losses:

Beginning balance

Provision (recovery) for

loan losses (1)

Provision (recovery) for loan losses (1)

Ending balance

Allowance for credit loss-loans

Allowance for credit losses

loan commitments

Allowance for credit losses - loan commitments

Total allowance for credit losses

(1) Excludes provision for credit losses related to unfunded commitments.

Note 8,"Commitments and Contingencies" in the condensed consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments.

Note 8,"Commitments and Contingencies" in the consolidated financial statements provides more detail concerning the provision for credit losses related to unfunded commitments.

(Dollars in thousands)

4 unchanged sentences

Consumer and All Other

Three months ended June 30, 2023

Three months ended September 30, 2023

Allowance for credit losses:

Beginning balance

Provision (recovery) for

loan losses (1)

Provision (recovery) for loan losses (1)

Ending balance

Allowance for credit loss-loans

Allowance for credit losses

loan commitments

Allowance for credit losses - loan commitments

Total allowance for credit losses

Six months ended June 30, 2023

Nine months ended September 30, 2023

Allowance for credit losses:

2 unchanged sentences

implementation (1)

Provision (recovery) for

loan losses (1)

Provision (recovery) for loan losses (1)

Ending balance

Allowance for credit loss-loans

Allowance for credit losses

loan commitments

Allowance for credit losses - loan commitments

Total allowance for credit losses

(1) Excludes adjustment for CECL implemenation and provision for credit losses related to unfunded commitments.

Note 8,"Commitments and Contingencies" in the condensed consolidated financial statements provides more detail concerning the implementation adjustment and provision for credit losses related to unfunded commitments.

The were no collateral dependent loans individually evaluated at June 30, 2024 and December 31, 2023.

Note 8,"Commitments and Contingencies" in the consolidated financial statements provides more detail concerning the implementation adjustment and provision for credit losses related to unfunded commitments.

There were no collateral dependent loans individually evaluated at September 30, 2024 and December 31, 2023.

The Bank utilizes several credit quality indicators to manage credit risk in an ongoing manner.

10 unchanged sentences

This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future.

The following table presents by credit quality indicator, loan class and year of origination, the amortized cost of the Bank’s loans as of June 30, 2024.

The following table presents by credit quality indicator, loan class and year of origination, the amortized cost of the Bank’s loans as of September 30, 2024.

Term Loans by Origination Year

(dollars in thousands)

June 30, 2024

September 30, 2024

Real Estate Loans

5 unchanged sentences

Multifamily and farmland

Total multifamily and

Total multifamily and farmland

Total real estate loans

3 unchanged sentences

Total all other

Total loans not secured

by real estate

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs as of June 30, 2024.

Total loans not secured by real estate

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs during the nine months ended September 30, 2024.

Gross Loan Charge-offs by Origination Year

13 unchanged sentences

Construction and land development

Total Construction and

land development

Total Construction and land development

Single family

2 unchanged sentences

Multifamily and farmland

Total multifamily and

Total multifamily and farmland

Total real estate loans

3 unchanged sentences

Total all other

Total loans not secured

by real estate

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs as of December 31, 2023.

Total loans not secured by real estate

The following table presents by credit quality indicator, loan class and year of origination, gross loan charge-offs during the year ended December 31, 2023.

Gross Loan Charge-offs by Origination Year

7 unchanged sentences

Total gross charge-offs

As of June 30, 2024, the Bank had operating right of use assets of $ 4.4 million and operating lease liabilities of $ 4.5 million.

As of September 30, 2024, the Bank had operating right of use assets of $ 4.2 million and operating lease liabilities of $ 4.3 million.

The Bank maintains operating leases on land and buildings for some of the Bank’s branch facilities and loan production offices.

3 unchanged sentences

Leases with a term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.

The following table presents lease cost and other lease information as of June 30, 2024 and 2023.

The following table presents lease cost and other lease information as of September 30, 2024 and 2023.

(Dollars in thousands)

June 30, 2024

June 30, 2023

September 30,

Operating lease cost

5 unchanged sentences

Weighted-average discount rate - operating leases

The following table presents lease maturities as of June 30, 2024.

The following table presents lease maturities as of September 30, 2024.

(Dollars in thousands)

Maturity Analysis of Operating Lease Liabilities:

June 30, 2024

September 30,

Imputed Interest

5 unchanged sentences

Repurchase agreements are subject to terms and conditions of the master repurchase agreements between the Bank and the customer and are accounted for as secured borrowings.

At June 30, 2024 and December 31, 2023, repurchase agreements totaled $ 18.8 million and $ 86.7 million, respectively.

These borrowings were collateralized with government-sponsored enterprise securities with a market value of $ 28.4 million and $ 89.8 million at June 30, 2024 and December 31, 2023, respectively.

At September 30, 2024 and December 31, 2023, repurchase agreements totaled $ 8.4 million and $ 86.7 million, respectively.

These borrowings were collateralized with government-sponsored enterprise securities with a market value of $ 17.2 million and $ 89.8 million at September 30, 2024 and December 31, 2023, respectively.

We monitor collateral levels on a continuous basis and maintain records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and we segregate the security from its general assets in accordance with regulations governing custodial holdings of securities.

10 unchanged sentences

Contractual Amount

Financial instruments whose contract amount represent credit risk:

Financial instruments with credit risk:

Commitments to extend credit

9 unchanged sentences

The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding activity and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans.

The allowance for credit losses for unfunded loan commitments of $ 1.6 million and $ 2.1 million at June 30, 2024 and 2023, respectively, is separately classified on the balance sheet within Other Liabilities.

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three and six months ended June 30, 2024 and 2023.

The allowance for credit losses for unfunded loan commitments of $ 1.2 million and $ 2.1 million at September 30, 2024 and 2023, respectively, is separately classified on the balance sheet within Other Liabilities.

The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the three and nine months ended September 30, 2024 and 2023.

(dollars in thousands)

For three months ended

For six months ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

For nine months ended

September 30,

Beginning Balance

Cummulative effect of change in accounting principle

Provision for (recovery of) credit losses

Recovery of credit losses

Ending balance

(9) Fair Value

The Company is required to disclose fair value information about financial instruments, whether or not recognized at fair value on the face of the balance sheet, for which it is practicable to estimate that value.

41 unchanged sentences

In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

The tables below present all financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy, as of June 30, 2024 and December 31, 2023.

The tables below present all financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy, as of September 30, 2024 and December 31, 2023.

(Dollars in thousands)

June 30, 2024

September 30, 2024

Level 1 Valuation

14 unchanged sentences

State and political subdivisions

The fair value measurements for individually evaluated loans on a non-recurring basis at June 30, 2024 and December 31, 2023 are presented below.

The fair value measurements for individually evaluated loans on a non-recurring basis at September 30, 2024 and December 31, 2023 are presented below.

The fair value measurement process uses certified appraisals and other market-based information;

1 unchanged sentence

As a result, all fair value measurements for individually evaluated loans and other real estate are considered Level 3.

(Dollars in thousands)

Fair Value Measurements June 30, 2024

Level 1 Valuation

Level 2 Valuation

Level 3 Valuation

Individually evaluated loans

(Dollars in thousands)

Fair Value Measurements December 31, 2023

Level 1 Valuation

Level 2 Valuation

Level 3 Valuation

Individually evaluated loans

(Dollars in thousands)

Fair Value June 30, 2024

Fair Value December 31, 2023

Valuation Technique

Significant Unobservable Inputs

General Range of Significant Unobservable Input Values

Individually evaluated loans

Appraised value

Discounts to reflect current market conditions and ultimate collectability

The carrying amount and estimated fair value of financial instruments at June 30, 2024 and December 31, 2023 are as follows:

There were no individually evaluated loans at September 30, 2024 and December 31, 2023

The carrying amount and estimated fair value of financial instruments at September 30, 2024 and December 31, 2023 are as follows:

(Dollars in thousands)

Fair Value Measurements at June 30, 2024

Fair Value Measurements at September 30, 2024

Carrying Amount

3 unchanged sentences

Mortgage loans held for sale

Mutual funds held in deferred

compensation trust

Securities sold under agreements

to repurchase

Mutual funds held in deferred compensation trust

Securities sold under agreements to repurchase

Junior subordinated debentures

(Dollars in thousands)

Fair Value Measurements at December 31, 2023

4 unchanged sentences

Mortgage loans held for sale

Mutual funds held in deferred

compensation trust

Securities sold under agreements

to repurchase

Mutual funds held in deferred compensation trust

Securities sold under agreements to repurchase

Junior subordinated debentures

8 unchanged sentences

(Dollars in thousands)

As of and for the three months ended June 30, 2024

As of and for the three months ended September 30, 2024

Interest income

8 unchanged sentences

Net income (loss)

As of and for the three months ended June 30, 2023

As of and for the three months ended September 30, 2023

Interest income

8 unchanged sentences

Net income (loss)

As of and for the six months ended June 30, 2024

As of and for the nine months ended September 30, 2024

Interest income

8 unchanged sentences

Net income (loss)

As of and for the six months ended June 30, 2023

As of and for the nine months ended September 30, 2023

Interest income

9 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements