43 unchanged sentences
Total liabilities and shareholders’ equity
−Removed: See notes to condensed consolidated financial
−Removed: statements (unaudited)
+Added: See notes to condensed consolidated financial statements (unaudited)
SB Financial Group, Inc.
2 unchanged sentences
Three Months Ended
+Added: Six Months Ended
Interest Income
38 unchanged sentences
Average common shares outstanding (in thousands):
−Removed: to condensed consolidated financial statements (unaudited)
+Added: See notes to condensed consolidated
+Added: financial statements (unaudited)
Consolidated Statements of Comprehensive Income (unaudited)
−Removed: Three Months Ended
($ in thousands)
−Removed: Other comprehensive gain (loss)
+Added: Three Months Ended
+Added: Six Months Ended
+Added: Other comprehensive loss
Available for sale investment securities:
−Removed: Gross unrealized holding (loss) gain arising in the period
−Removed: Related tax benefit (provision)
−Removed: Net effect on other comprehensive (loss) gain
−Removed: Total comprehensive income
−Removed: See notes to condensed consolidated financial
−Removed: statements (unaudited)
+Added: Gross unrealized holding loss arising in the period
+Added: Related tax benefit
+Added: Net effect on other comprehensive loss
+Added: Total comprehensive income (loss)
+Added: See notes to condensed consolidated financial statements (unaudited)
Consolidated Statements of Shareholders’ Equity (unaudited)
−Removed: Comprehensive
+Added: Accumulated Other Comprehensive
($ in thousands, except per share data)
Balance, January 1, 2024
−Removed: Other comprehensive income
+Added: Other comprehensive loss
Cash dividends on common, $ 0.135 per share
3 unchanged sentences
Balance, March 31, 2024
−Removed: Comprehensive
+Added: Other comprehensive loss
+Added: Cash dividends on common, $ 0.14 per share
+Added: Repurchased stock ( 26,791 shares)
+Added: Stock based compensation expense
+Added: Balance, June 30, 2024
+Added: Accumulated Other Comprehensive
($ in thousands, except per share data)
−Removed: Balance, January 1, 2023
+Added: January 1, 2023
Other comprehensive income
4 unchanged sentences
Stock based compensation expense
−Removed: Balance, March 31, 2023
−Removed: See notes to condensed consolidated financial
−Removed: statements (unaudited)
+Added: March 31, 2023
+Added: Other comprehensive loss
+Added: Dividends on common, $ 0.13 per share
+Added: Repurchased stock ( 91,260 shares)
+Added: Stock based compensation expense
+Added: Balance, June 30, 2023
+Added: See notes to condensed consolidated financial statements (unaudited)
SB Financial Group, Inc.
2 unchanged sentences
($ in thousands)
−Removed: Three Months Ended
+Added: Ended June 30,
Operating Activities
12 unchanged sentences
Interest payable & other liabilities
−Removed: Net cash provided by (used in) operating activities
+Added: Net cash used in operating activities
Investing Activities
Purchases of available-for-sale securities
+Added: Purchases of interest bearing time deposits
Proceeds from maturities of interest bearing time deposits
2 unchanged sentences
Purchase of premises, equipment
−Removed: Proceeds from bank owned life insurance
Purchase of bank owned life insurance
5 unchanged sentences
Net increase (decrease) in demand deposits, money market, interest checking & savings accounts
−Removed: Net (decrease) increase in time deposits
+Added: Net increase in time deposits
Net increase in securities sold under agreements to repurchase
4 unchanged sentences
Net cash (used in) provided by financing activities
−Removed: Increase (decrease) in cash and cash equivalents
+Added: Decrease in cash and cash equivalents
Cash and cash equivalents, beginning of period
2 unchanged sentences
Interest paid
−Removed: See notes to condensed consolidated financial
−Removed: statements (unaudited)
+Added: Supplemental non-cash disclosure
+Added: Transfer of loans to foreclosed assets
+Added: See notes to condensed consolidated financial statements (unaudited)
SB FINANCIAL GROUP, INC.
−Removed: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 – BASIS OF PRESENTATION
21 unchanged sentences
recurring adjustments.
−Removed: Results of operations for the three months ended March 31, 2024, are not necessarily indicative of results for
−Removed: the complete year.
+Added: Results of operations for the three and six months ended June 30, 2024, are not necessarily indicative of results
+Added: for the complete year.
The condensed consolidated balance sheet of the
20 unchanged sentences
Financial Instruments - Credit Losses (Topic 326):
−Removed: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”)
−Removed: (“ASC 326”) as amended.
−Removed: The new accounting guidance in this ASU replaces the incurred loss methodology with an expected loss
−Removed: methodology, which is referred to as the current expected credit loss (“CECL”) methodology.
−Removed: The CECL methodology is applicable
−Removed: to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity (“HTM”)
−Removed: debt securities.
−Removed: It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters
−Removed: of credit, financial guarantees, and other similar instruments that are noncancellable), and net investments in leases recognized by a
+Added: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) (“ASC
+Added: 326”) as amended.
+Added: The new accounting guidance in this ASU replaces the incurred loss methodology with an expected loss methodology,
+Added: which is referred to as the current expected credit loss (“CECL”) methodology.
+Added: The CECL methodology is applicable to the measurement
+Added: of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity (“HTM”) debt
+Added: It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of
+Added: credit, financial guarantees, and other similar instruments that are noncancellable), and net investments in leases recognized by a lessor.
The CECL methodology requires an entity to estimate credit losses over the life of an asset or off-balance sheet credit exposure.
38 unchanged sentences
statements aside from additional and revised financial statement disclosures (see Note 4 to the consolidated financial statements).
−Removed: Accounting for Investments
−Removed: in Tax Credit Structures Using the Proportional Amortization Method (ASU 2023-02).
+Added: Accounting for Investments in Tax Credit Structures
+Added: Using the Proportional Amortization Method (ASU 2023-02).
This ASU permits reporting entities to elect to
account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the
−Removed: proportional amortization if certain conditions are met.
+Added: proportional amortization method if certain conditions are met.
A reporting entity makes an accounting policy election to apply the proportional
8 unchanged sentences
In December 2023, the FASB issued ASU 2023-09:
−Removed: “Income Taxes (Topic 740):
−Removed: Improvements to Income Tax Disclosures.” The amendments in this ASU address investor requests for
−Removed: more transparency about income tax information through improvements to income tax disclosures, primarily related to effective tax rate
−Removed: reconciliation and information related to income taxes paid, among certain other amendments to improve the effectiveness of such disclosures.
−Removed: The amendments in this ASU are effective for fiscal years beginning after December 15, 2024 and are to be applied on a prospective basis.
−Removed: Adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.
+Added: Income Taxes (Topic 740) Improvements to Income Tax Disclosures.
+Added: The amendments in this ASU address investor requests for more transparency
+Added: about income tax information through improvements to income tax disclosures, primarily related to effective tax rate reconciliation and
+Added: information related to income taxes paid, among certain other amendments to improve the effectiveness of such disclosures.
+Added: The amendments
+Added: in this ASU are effective for fiscal years beginning after December 15, 2024, and are to be applied on a prospective basis.
+Added: this ASU is not expected to have a material impact on the Company’s consolidated financial statements.
NOTE 2 – EARNINGS PER SHARE
7 unchanged sentences
paid by the Company on its common shares prior to vesting of the restricted shares.
+Added: ($ and outstanding shares in thousands - except per share data)
Three Months Ended
+Added: Distributed earnings allocated to common shares
+Added: Undistributed earnings allocated to common shares
+Added: Net earnings allocated to common shares
+Added: Net earnings allocated to participating securities
+Added: Net Income allocated to common shares and participating securities
+Added: Weighted average shares outstanding for basic earnings per share
+Added: Dilutive effect of stock compensation
+Added: Weighted average shares outstanding for diluted earnings per share
+Added: Basic earnings per common share
+Added: Diluted earnings per common share
($ and outstanding shares in thousands - except per share data)
+Added: Six Months Ended
Distributed earnings allocated to common shares
10 unchanged sentences
The amortized cost and appropriate fair values,
−Removed: together with gross unrealized gains and losses, of securities at March 31, 2024, and December 31, 2023, were as follows:
+Added: together with gross unrealized gains and losses, of securities at June 30, 2024, and December 31, 2023, were as follows:
($ in thousands)
−Removed: March 31, 2024
+Added: June 30, 2024
Treasury and Government agencies
8 unchanged sentences
The amortized cost and fair value of securities
−Removed: available-for-sale at March 31, 2024, by contractual maturity, are shown below.
+Added: available-for-sale at June 30, 2024, by contractual maturity, are shown below.
Expected maturities will differ from contractual maturities
7 unchanged sentences
The fair value of securities pledged as collateral,
−Removed: to secure public deposits and for other purposes, was $ 111.9 million at March 31, 2024 and $ 53.9 million at December 31, 2023.
−Removed: value of securities delivered for repurchase agreements was $ 18.9 million at March 31, 2024, and $ 17.8 million at December 31, 2023.
+Added: to secure public deposits and for other purposes, was $ 145.4 million at June 30, 2024, and $ 89.7 million at December 31, 2023.
+Added: value of securities delivered for repurchase agreements was $ 18.4 million at June 30, 2024, and $ 19.7 million at December 31, 2023.
There were no realized gains or losses from sales
−Removed: of available-for-sale securities for the three months ended March 31, 2024, or March 31, 2023.
+Added: of available-for-sale securities for the three and six months ended June 30, 2024, or June 30, 2023.
Certain investments in debt securities are reported
1 unchanged sentence
Total fair value of these investments was $ 207.5
−Removed: million at March 31, 2024, and $ 217.0 million at December 31, 2023, which consisted of 142 securities, or 99 percent, and 139 securities,
−Removed: or approximately 99 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates.
−Removed: Based on evaluation
−Removed: of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory
−Removed: filings, management believes the declines in fair value for these securities are temporary.
+Added: million at June 30, 2024, and $ 217.0 million at December 31, 2023, which consisted of 138 securities, or approximately 99 percent, and
+Added: 139 securities, or approximately 99 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates.
+Added: Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information
+Added: obtained from regulatory filings, management believes the declines in fair value for these securities are temporary.
Securities with unrealized losses, aggregated
−Removed: by investment class and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2024,
+Added: by investment class and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2024,
and December 31, 2023, are as follows:
2 unchanged sentences
12 Months or Longer
−Removed: March 31, 2024
+Added: June 30, 2024
+Added: Unrealized Losses
+Added: Unrealized Losses
+Added: Unrealized Losses
Treasury and Government agencies
5 unchanged sentences
December 31, 2023
+Added: Unrealized Losses
+Added: Unrealized Losses
+Added: Unrealized Losses
Treasury and Government agencies
19 unchanged sentences
requirement to sell is met.
−Removed: At March 31, 2024 and December 31, 2023, no ACL on available-for-sale securities was recorded.
+Added: At June 30, 2024, and December 31, 2023, no ACL on available-for-sale securities was recorded.
Management has made the accounting policy election
1 unchanged sentence
Accrued interest receivable
−Removed: on available-for-sale debt securities totaled $ 0.7 million at March 31, 2024.
+Added: on available-for-sale debt securities totaled $ 0.7 million at June 30, 2024.
Should the decline in fair value be the result of credit
losses or other factors, the security would be moved to nonaccrual status and all accrued interest reversed.
−Removed: NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT
+Added: NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans that management has the intent and ability
12 unchanged sentences
and future payments are reasonably assured.
−Removed: The following table summarizes the composition
−Removed: of the loan portfolio:
+Added: The following table summarizes the composition of the loan portfolio:
($ in thousands)
5 unchanged sentences
Allowance for credit losses
−Removed: The totals shown above are net of deferred loan
−Removed: fees and costs, which totaled $ 0.34 million and $ 0.44 million at March 31, 2024, and December 31, 2023, respectively.
−Removed: The risk characteristics of each loan portfolio
−Removed: segment are as follows:
+Added: The totals shown above are net of deferred loan fees and costs, which
+Added: totaled $ 0.27 million and $ 0.44 million at June 30, 2024, and December 31, 2023, respectively.
+Added: The risk characteristics of each loan portfolio segment are as follows:
Commercial & Industrial and Agricultural
9 unchanged sentences
due from its customers.
−Removed: Commercial Real Estate (Owner and Nonowner
+Added: Commercial Real Estate (Owner and Nonowner Occupied)
Commercial real estate loans are viewed primarily
43 unchanged sentences
from the loans’ amortized cost basis to present the net amount expected to be collected on the loans.
−Removed: Loans are charged off against
−Removed: the allowance when management believes that the uncollectability of a loan balance is confirmed.
−Removed: Expected recoveries do not exceed the
−Removed: aggregate of amounts previously charged-off and expected to be charged-off.
+Added: Loans are charged off against the
+Added: allowance when management believes that the uncollectability of a loan balance is confirmed.
+Added: Expected recoveries do not exceed the aggregate
+Added: of amounts previously charged-off and expected to be charged-off.
Management estimates the ACL using relevant available
5 unchanged sentences
Accrued interest receivable related to loans totaled
−Removed: $ 3.2 million at March 31, 2024, and is excluded from the estimate of credit losses.
+Added: $ 3.5 million at June 30, 2024, and is excluded from the estimate of credit losses.
The Company measures expected credit losses for
1 unchanged sentence
The Company has identified the following portfolio segments:
−Removed: ● Commercial & Industrial - Commercial
−Removed: & industrial loans consist of loans or lines of credit to finance accounts receivable, inventory or other general business needs,
−Removed: and lease financing agreements for equipment, vehicles, or other assets.
−Removed: The primary risk associated with commercial & industrial
−Removed: loans and lease financing agreements is the ability of borrowers to achieve business results consistent with those projected at origination.
−Removed: Failure to achieve these projections presents risk the borrower will be unable to service the debt consistent with the contractual terms
−Removed: of the loan or lease.
−Removed: ● Commercial Real Estate - Owner Occupied
−Removed: - Owner occupied commercial real estate loans consist of loans to purchase or re-finance owner occupied nonresidential properties.
−Removed: includes office buildings and other commercial facilities.
−Removed: Commercial mortgages secured by owner occupied properties are primarily dependent
−Removed: on the ability of borrowers to achieve business results consistent with those projected at loan origination.
−Removed: While these loans are collateralized
−Removed: by real property in an effort to mitigate risk, it is possible the liquidation of collateral will not fully satisfy the obligation as
−Removed: the commercial real estate collateral may be more adversely affected by conditions in the real estate markets or in the general economy.
+Added: & Industrial - Commercial & industrial loans consist of loans or lines of credit to finance accounts receivable, inventory
+Added: or other general business needs, and lease financing agreements for equipment, vehicles, or other assets.
+Added: The primary risk associated
+Added: with commercial & industrial loans and lease financing agreements is the ability of borrowers to achieve business results consistent
+Added: with those projected at origination.
+Added: Failure to achieve these projections presents risk the borrower will be unable to service the debt
+Added: consistent with the contractual terms of the loan or lease.
+Added: Real Estate - Owner Occupied - Owner occupied commercial real estate loans consist of loans to purchase or re-finance owner occupied
+Added: nonresidential properties.
+Added: This includes office buildings and other commercial facilities.
+Added: Commercial mortgages secured by owner occupied
+Added: properties are primarily dependent on the ability of borrowers to achieve business results consistent with those projected at loan origination.
+Added: While these loans are collateralized by real property in an effort to mitigate risk, it is possible the liquidation of collateral will
+Added: not fully satisfy the obligation as the commercial real estate collateral may be more adversely affected by conditions in the real estate
+Added: markets or in the general economy.
Real Estate – Nonowner Occupied - Nonowner occupied commercial real estate loans
47 unchanged sentences
a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.
−Removed: Company’s own loan-level loss data from January 2016 through March 31, 2024 contained within the model is being supplemented with
+Added: Company’s own loan-level loss data from January 2016 through June 30, 2024, contained within the model is being supplemented with
peer data in most loan pools as there was not sufficient loan-level detail from prior cycles reflecting similar economic conditions as
33 unchanged sentences
from those experienced in the historical loss periods.
−Removed: Loans that do not share risk characteristics
−Removed: are evaluated on an individual basis.
−Removed: When management determines that foreclosure is probable and the borrower is experiencing financial
−Removed: difficulty, the expected credit losses are based on the fair value of collateral at the reporting dated adjusted for selling costs as
−Removed: The Company is also required to consider expected credit losses associated with loan commitments over the contractual period
−Removed: in which it is exposed to credit risk on the underlying commitments.
−Removed: Any allowance for off-balance sheet credit exposures is reported
−Removed: in Other liabilities on the Company’s consolidated balance sheet and is increased or decreased through a provision for credit loss
−Removed: expense on the Company’s consolidated statement of income.
−Removed: The calculation includes consideration of the likelihood that funding
−Removed: will occur and forecasted credit losses on commitments expected to be funded over their estimated lives.
−Removed: The allowance is calculated
−Removed: using the same methodology, inputs and assumptions as the funded portion of loans at the segment level applied to the amount of commitments
−Removed: expected to be funded.
+Added: Loans that do not share risk characteristics are
+Added: evaluated on an individual basis.
+Added: When management determines that foreclosure is probable and the borrower is experiencing financial difficulty,
+Added: the expected credit losses are based on the fair value of collateral at the reporting date adjusted for selling costs as appropriate.
+Added: The Company is also required to consider expected
+Added: credit losses associated with loan commitments over the contractual period in which it is exposed to credit risk on the underlying commitments.
+Added: Any allowance for off-balance sheet credit exposures is reported in Other liabilities on the Company’s consolidated balance sheet
+Added: and is increased or decreased through a provision for credit loss expense on the Company’s consolidated statement of income.
+Added: calculation includes consideration of the likelihood that funding will occur and forecasted credit losses on commitments expected to be
+Added: funded over their estimated lives.
+Added: The allowance is calculated using the same methodology, inputs and assumptions as the funded portion
+Added: of loans at the segment level applied to the amount of commitments expected to be funded.
While the Company’s policies and procedures
6 unchanged sentences
The following tables summarize the activity
−Removed: related to the ACL for the three months ended March 31, 2024 and March 31, 2023.
+Added: related to the ACL for the three and six months ended June 30, 2024, and June 30, 2023, and the twelve months ended December 31, 2023.
($ in thousands)
For the three months ended
−Removed: March 31, 2024
−Removed: Provision for
−Removed: Credit Losses
+Added: June 30, 2024
+Added: Balance, beginning of period
+Added: Impact of Adopting ASC 326
+Added: Provision for Credit Losses
+Added: Balance, end of period
Commercial & industrial
3 unchanged sentences
($ in thousands)
+Added: For the six months ended
+Added: June 30, 2024
+Added: Balance, beginning of period
+Added: Impact of Adopting ASC 326
+Added: Provision for Credit Losses
+Added: Balance, end of period
+Added: Commercial & industrial
+Added: Commercial real estate - owner occupied
+Added: Commercial real estate - nonowner occupied
+Added: Residential real estate
+Added: ($ in thousands)
For the three months ended
−Removed: March 31, 2023
−Removed: Provision for
−Removed: Credit Losses
+Added: June 30, 2023
+Added: Balance, beginning of period
+Added: Impact of Adopting ASC 326
+Added: Provision for Credit Losses
+Added: Balance, end of period
Commercial & industrial
2 unchanged sentences
Residential real estate
+Added: ($ in thousands)
+Added: For the six months ended
+Added: June 30, 2023
+Added: Balance, beginning of period
+Added: Impact of Adopting ASC 326
+Added: Provision for Credit Losses
+Added: Balance, end of period
+Added: Commercial & industrial
+Added: Commercial real estate - owner occupied
+Added: Commercial real estate - nonowner occupied
+Added: Residential real estate
+Added: ($ in thousands)
+Added: For the twelve months ended
+Added: December 31, 2023
+Added: Balance, beginning of period
+Added: Impact of Adopting ASC 326
+Added: Provision for Credit Losses
+Added: Balance, end of period
+Added: Commercial & industrial
+Added: Commercial real estate - owner occupied
+Added: Commercial real estate - nonowner occupied
+Added: Residential real estate
Collateral dependent loans are loans for which
6 unchanged sentences
The following table presents an analysis of collateral-dependent
−Removed: loans of the Company as of March 31, 2024 and December 31, 2023.
+Added: loans of the Company as of June 30, 2024, and December 31, 2023.
($ in thousands)
Collateral Type
−Removed: March 31, 2024
+Added: June 30, 2024
Commercial & industrial
54 unchanged sentences
The following table presents loan balances by credit quality
−Removed: indicators by year of origination as of March 31, 2024.
+Added: indicators and gross chargeoffs by loan category and year of origination as of June 30, 2024.
($ in thousands)
−Removed: Loans by Year of Origination
−Removed: period gross chargeoffs
−Removed: real estate - owner occupied
−Removed: period gross chargeoffs
−Removed: real estate - nonowner occupied
−Removed: period gross chargeoffs
−Removed: period gross chargeoffs
−Removed: period gross chargeoffs
−Removed: equity line of credit (HELOC)
−Removed: period gross chargeoffs
−Removed: period gross chargeoffs
−Removed: period gross chargeoffs
+Added: Term Loans by Year of Origination
+Added: Revolving Loans Converted
+Added: June 30, 2024
+Added: Commercial & industrial
+Added: Special Mention (5)
+Added: Substandard (6)
+Added: Current period gross chargeoffs
+Added: Commercial real estate - owner occupied
+Added: Special Mention (5)
+Added: Substandard (6)
+Added: Current period gross chargeoffs
+Added: Commercial real estate - nonowner occupied
+Added: Special Mention (5)
+Added: Substandard (6)
+Added: Current period gross chargeoffs
+Added: Special Mention (5)
+Added: Substandard (6)
+Added: Current period gross chargeoffs
+Added: Residential real estate
+Added: Special Mention (5)
+Added: Substandard (6)
+Added: Current period gross chargeoffs
+Added: Home equity line of credit (HELOC)
+Added: Special Mention (5)
+Added: Substandard (6)
+Added: Current period gross chargeoffs
+Added: Special Mention (5)
+Added: Substandard (6)
+Added: Current period gross chargeoffs
+Added: Special Mention (5)
+Added: Substandard (6)
+Added: Current period gross chargeoffs
The following table presents loan balances by
−Removed: credit quality indicators and loan categories as of December 31, 2023.
+Added: credit quality indicators and gross chargeoffs by loan category and year of origination as of December 31, 2023.
($ in thousands)
Term Loans by Year of Origination
+Added: Revolving Loans Converted
December 31, 2023
29 unchanged sentences
The following tables present the Company’s
−Removed: loan portfolio aging analysis as of March 31, 2024, and December 31, 2023.
+Added: loan portfolio aging analysis as of June 30, 2024, and December 31, 2023.
($ in thousands)
−Removed: March 31, 2024
+Added: June 30, 2024
Commercial & industrial
17 unchanged sentences
The categories of nonaccrual
−Removed: loans as of March 31, 2024, and December 31, 2023, are presented in the following table.
−Removed: March 31, 2024
+Added: loans as of June 30, 2024, and December 31, 2023, are presented in the following table.
+Added: June 30, 2024
($ in thousands)
−Removed: loans with no
−Removed: loans with an
+Added: Nonaccrual loans with no allowance
+Added: Nonaccrual loans with an allowance
+Added: Total nonaccrual loans
Commercial & industrial
5 unchanged sentences
($ in thousands)
−Removed: loans with no
−Removed: loans with an
+Added: Nonaccrual loans with no allowance
+Added: Nonaccrual loans with an allowance
+Added: Total nonaccrual loans
Commercial & industrial
15 unchanged sentences
for Credit Losses section of this note.
−Removed: For the three months ended March 31, 2024, the Company did not modify any loans made to borrowers
+Added: For the six months ended June 30, 2024, the Company did not modify any loans made to borrowers
experiencing financial difficulty.
The Company had no commitments to lend to borrowers
−Removed: experiencing financial difficulty for which the Company had modified an existing loan as of March 31, 2024.
−Removed: The Company monitors loan
−Removed: payments on an ongoing basis to determine if a loan is considered to have a payment default.
−Removed: Determination of payment default involves
−Removed: analyzing the economic conditions that exist for each customer and its ability to generate positive cash flows during the loan term.
−Removed: the three-month period ended March 31, 2024, the Company had no loan modifications made to borrowers experiencing financial difficulty
−Removed: for which there was a payment default within the 12 months following the modification date.
+Added: experiencing financial difficulty for which the Company had modified an existing loan as of June 30, 2024.
+Added: The Company monitors loan payments
+Added: on an ongoing basis to determine if a loan is considered to have a payment default.
+Added: Determination of payment default involves analyzing
+Added: the economic conditions that exist for each customer and its ability to generate positive cash flows during the loan term.
+Added: For the six-month
+Added: period ended June 30, 2024, the Company had no loan modifications made to borrowers experiencing financial difficulty for which there
+Added: was a payment default within the 12 months following the modification date.
Unfunded Loan Commitments
10 unchanged sentences
The allowance for credit losses
−Removed: for unfunded loan commitments of $ 0.9 million at March 31, 2024, is classified on the balance sheet within Other liabilities.
+Added: for unfunded loan commitments of $ 0.9 million at June 30, 2024, is classified on the balance sheet within Other liabilities.
The following table presents the balance and activity
−Removed: in the ACL for unfunded loan commitments for the three months ended March 31, 2024, and March 31, 2023.
+Added: in the ACL for unfunded loan commitments for the three and six months ended June 30, 2024, and June 30, 2023.
($ in thousands)
Three Months Ended
+Added: Six Months Ended
Balance, beginning of period
6 unchanged sentences
Three Months Ended
+Added: Six Months Ended
Beginning balance
3 unchanged sentences
impairment annually, and on an interim basis if events or circumstances change that indicate an impairment may exist.
−Removed: As of March 31, 2024, and December 31, 2023, the
+Added: As of June 30, 2024, and December 31, 2023, the
carrying amount of goodwill was $ 23.2 million.
17 unchanged sentences
The unpaid principal balance of mortgage loans serviced for others approximated $ 1.39
−Removed: billion at March 31, 2024, and December 31, 2023.
−Removed: Contractually specified servicing fees of $ 0.8 million were included in mortgage loan
−Removed: servicing fees in the consolidated income statement for the three months ended March 31, 2024 and 2023.
+Added: billion at June 30, 2024, and $ 1.37 billion at December 31, 2023.
+Added: Contractually specified servicing fees of $ 0.9 million and $ 1.7 million
+Added: were included in mortgage loan servicing fees in the consolidated income statement for the three and six months ended June 30, 2024, respectively.
+Added: Servicing fees of $ 0.8 million and $ 1.7 million were included for the three and six months ended June 30, 2023, respectively.
The following table summarizes mortgage servicing
rights capitalized and related amortization, along with activity in the related valuation allowance:
−Removed: Three Months Ended
($ in thousands)
−Removed: Carrying amount, beginning of year
−Removed: Mortgage servicing rights capitalized during the year
−Removed: Mortgage servicing rights amortization during the year
+Added: Three Months Ended
+Added: Six Months Ended
+Added: Balance at beginning of period
+Added: Mortgage servicing rights capitalized during the period
+Added: Mortgage servicing rights amortization during the period
Net change in valuation allowance
−Removed: Carrying amount, end of year
+Added: Balance at end of period
Valuation allowance:
−Removed: Beginning of year
−Removed: Increase (reduction)
+Added: Balance at beginning of period
+Added: Increase (decrease)
+Added: Balance at end of period
Fair value, beginning of period
33 unchanged sentences
fair value are reported in accrued expenses and included in Other liabilities in the consolidated balance sheets.
−Removed: The table below presents the notional amount and
−Removed: fair value of the Company’s interest rate swaps, IRLCs and forward contracts utilized as of March 31, 2024, and December 31, 2023.
−Removed: March 31, 2024
+Added: table below presents the notional amount and fair value of the Company’s interest rate swaps, IRLCs and forward contracts utilized
+Added: as of June 30, 2024, and December 31, 2023.
+Added: June 30, 2024
December 31, 2023
3 unchanged sentences
Interest rate swaps associated with loans
+Added: Forward contracts
Total contracts
4 unchanged sentences
Total contracts
−Removed: The fair value of interest rate swaps was estimated
−Removed: using a discounted cash flow method that incorporates current market interest rates as of the balance sheet date.
−Removed: Fair values of IRLCs
−Removed: and forward contracts were estimated using changes in mortgage interest rates from the date the Company entered into the IRLC or forward
−Removed: contract and the balance sheet date.
−Removed: The following table presents the amounts included
−Removed: in the consolidated statements of income for non-hedging derivative financial instruments for the three months ended March 31, 2024, and
+Added: fair value of interest rate swaps was estimated using a discounted cash flow method that incorporates current market interest rates as
+Added: of the balance sheet date.
+Added: Fair values of IRLCs and forward contracts were estimated using changes in mortgage interest rates from the
+Added: date the Company entered into the IRLC or forward contract and the balance sheet date.
+Added: following table presents the amounts included in the consolidated statements of income for non-hedging derivative financial instruments
+Added: for the three and six months ended June 30, 2024, and 2023.
Three Months Ended
−Removed: ($ in thousands)
−Removed: Statement of income classification
−Removed: Interest rate swap contracts
−Removed: Gain on sale of mortgage loans & OMSR
−Removed: Forward contracts
−Removed: Gain on sale of mortgage loans & OMSR
−Removed: The following table shows the offsetting of financial assets and derivative
−Removed: assets at March 31, 2024, and December 31, 2023.
−Removed: amounts offset
−Removed: Gross amounts not offset in the consolidated balance sheet
+Added: June 30, Six Months Ended
+Added: ($ in thousands) Statement of income classification 2024 2023 2024 2023
+Added: Interest rate swap contracts Other income $ -
+Added: IRLCs Gain on sale of mortgage loans & OMSR ( 39 ) ( 55 ) ( 30 ) 10
+Added: Forward contracts Gain on sale of mortgage loans & OMSR 69 160 77 22
+Added: following table shows the offsetting of financial assets and derivative assets at June 30, 2024, and December 31, 2023.
($ in thousands)
+Added: Gross amounts
+Added: Gross amounts
+Added: offset in the
+Added: Net amounts of
+Added: Gross amounts not offset in the
+Added: consolidated balance sheet
balance sheet
+Added: the consolidated
balance sheet
Cash collateral
−Removed: March 31, 2024
+Added: June 30, 2024
Interest rate swaps
1 unchanged sentence
Interest rate swaps
−Removed: The following table shows the offsetting of financial liabilities and
−Removed: derivative liabilities at March 31, 2024, and December 31, 2023.
+Added: following table shows the offsetting of financial liabilities and derivative liabilities at June 30, 2024, and December 31, 2023.
+Added: Gross amounts
+Added: offset in the
of liabilities
−Removed: amounts offset
−Removed: Gross amounts not offset in the
−Removed: consolidated balance sheet
−Removed: Cash collateral
+Added: Gross amounts not offset in the consolidated balance sheet
($ in thousands)
balance sheet
+Added: the consolidated
balance sheet
−Removed: March 31, 2024
+Added: Cash collateral
+Added: June 30, 2024
Interest rate swaps
1 unchanged sentence
Interest rate swaps
−Removed: NOTE 8 – DEPOSITS
−Removed: Major classification of deposits at March 31,
−Removed: 2024, and at December 31, 2023, were as follows:
+Added: classification of deposits at June 30, 2024, and at December 31, 2023, were as follows:
($ in thousands)
4 unchanged sentences
Total Deposits
−Removed: Included in time deposits at March 31, 2024, and
−Removed: December 31, 2023, were $ 53.2 million and $ 56.5 million, respectively, of deposits which were obtained through the Certificate of Deposit
−Removed: Account Registry Service (CDARS).
−Removed: NOTE 9 – SHORT-TERM BORROWINGS
+Added: in time deposits at June 30, 2024, and December 31, 2023, were $ 52.5 million and $ 56.5 million, respectively, of deposits which were
+Added: obtained through the Certificate of Deposit Account Registry Service (CDARS).
+Added: 9 – SHORT-TERM BORROWINGS
($ in thousands)
Securities sold under repurchase agreements
−Removed: The Company has retail repurchase (“REPO”)
−Removed: agreements to facilitate cash management transactions with commercial customers.
−Removed: These obligations are secured by agency and mortgage-backed
−Removed: securities and such collateral is held by the Federal Home Loan Bank (“FHLB”).
−Removed: These securities have various maturity dates
−Removed: from 2025 through 2051.
−Removed: As of March 31, 2024, these REPO agreements were secured by securities with a fair value totaling $ 18.9 million.
+Added: Company has retail repurchase (“REPO”) agreements to facilitate cash management transactions with commercial customers.
+Added: obligations are secured by agency and mortgage-backed securities and such collateral is held by the Federal Home Loan Bank (“FHLB”).
+Added: These securities have various maturity dates from 2025 through 2051.
+Added: As of June 30, 2024, these REPO agreements were secured by securities
+Added: with a fair value totaling $ 18.4 million.
The REPO agreements mature within one month.
−Removed: The Company has borrowing capabilities at the
−Removed: Federal Reserve Discount Window (“Discount Window”) and the Bank Term Funding Program (“BTFP”) by pledging either
−Removed: securities or loans as collateral.
−Removed: As of March 31, 2024, there was $ 20.3 million pledged to the Federal Reserve Discount Window.
−Removed: At March 31, 2024, and December 31, 2023, the
−Removed: Company had $ 41.0 million in federal funds lines, of which none was drawn.
−Removed: NOTE 10 – FEDERAL HOME LOAN BANK (FHLB)
−Removed: The Company’s FHLB advances were secured
−Removed: by $ 281.3 million in mortgage loans at March 31, 2024.
−Removed: Advances consisted of fixed interest rates from 3.75 to 5.61 percent.
−Removed: advances are subject to restrictions or penalties in the event of prepayment.
−Removed: Aggregate annual maturities of FHLB advances at March 31,
+Added: Company has borrowing capabilities at the Federal Reserve Discount Window (“Discount Window”) and the Bank Term Funding Program
+Added: (“BTFP”) by pledging either securities or loans as collateral.
+Added: As of June 30, 2024, there was $ 19.9 million pledged to the
+Added: Discount Window.
+Added: June 30, 2024, and December 31, 2023, the Company had $ 41.0 million in federal funds lines, of which none was drawn.
+Added: 10 – FEDERAL HOME LOAN BANK (FHLB) ADVANCES
+Added: Company’s FHLB advances were secured by $ 288.7 million in mortgage loans at June 30, 2024.
+Added: Advances consisted of fixed interest
+Added: rates from 3.75 to 4.61 percent.
+Added: Fixed rate advances are subject to restrictions or penalties in the event of prepayment.
+Added: Aggregate annual
+Added: maturities of FHLB advances at June 30, 2024, were:
($ in thousands)
−Removed: NOTE 11 – TRUST PREFERRED SECURITIES
−Removed: On September 15, 2005, RST II, a wholly owned
−Removed: subsidiary of the Company, closed a pooled private offering of 10,000 Capital Securities with a liquidation amount of $ 1,000 per security.
−Removed: The proceeds of the offering were loaned to the Company in exchange for junior subordinated debentures with terms similar to the Capital
−Removed: Distributions on the Capital Securities are payable quarterly at a variable rate that is currently based upon the 3-month
−Removed: CME Term SOFR as adjusted by the relevant spread adjustment plus 1.80 percent and are included in interest expense in the consolidated
−Removed: financial statements.
−Removed: These securities may be included in Tier 1 capital and may be prepaid at any time without penalty (with certain
−Removed: limitations applicable) under current regulatory guidelines and interpretations.
−Removed: The balance of the Capital Securities as of March 31,
−Removed: 2024, and December 31, 2023, was $ 10.3 million, with a maturity date of September 15, 2035 .
−Removed: NOTE 12 – SUBORDINATED DEBT
−Removed: On May 27, 2021, the Company entered into Subordinated
−Removed: Note Purchase Agreements (collectively, the “Purchase Agreements”) with qualified institutional buyers and accredited investors
−Removed: (collectively, the “Purchasers”) pursuant to which the Company issued and sold $ 20.0 million in aggregate principal amount of
−Removed: its 3.65 % Fixed to Floating Rate Subordinated Notes due 2031 (the “Notes”).
−Removed: The Notes were sold by the Company in a private
−Removed: placement exempt from the registration requirements under the Securities Act of 1933, as amended.
−Removed: The Notes mature on June 1, 2031 , and bear interest
−Removed: at a fixed rate of 3.65 % through May 31, 2026.
−Removed: From June 1, 2026, to the maturity date or earlier redemption of the Notes, the interest
−Removed: rate will reset quarterly to an interest rate per annum, equal to the then-current-three-month SOFR provided by the Federal Reserve Bank
−Removed: of New York plus 296 basis points.
−Removed: The Company may redeem the Notes at any time after May 31, 2026, and at any time in whole, but not
−Removed: in part, upon the occurrence of certain events.
−Removed: Any redemption of the Notes will be subject to prior regulatory approval.
−Removed: incurred debt issuance costs for placement fees, legal and other out-of-pocket expenses of approximately $ 0.5 million, which are being
−Removed: amortized over the life of the Notes.
−Removed: NOTE 13 – DISCLOSURES ABOUT FAIR VALUE
−Removed: OF ASSETS AND LIABILITIES
−Removed: Fair value is the price that would be received
−Removed: to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
−Removed: value measurement must maximize the use of observable inputs and minimize the use of unobservable inputs.
−Removed: There is a hierarchy of three
−Removed: levels of inputs that may be used to measure fair value:
−Removed: Quoted prices in active markets for
−Removed: identical assets or liabilities
+Added: 11 – TRUST PREFERRED SECURITIES
+Added: September 15, 2005, RST II, a wholly owned subsidiary of the Company, closed a pooled private offering of 10,000 Capital Securities with
+Added: a liquidation amount of $ 1,000 per security.
+Added: The proceeds of the offering were loaned to the Company in exchange for junior subordinated
+Added: debentures with terms similar to the Capital Securities.
+Added: Distributions on the Capital Securities are payable quarterly at a variable
+Added: rate that is currently based upon the 3-month CME Term SOFR as adjusted by the relevant spread adjustment plus 1.80 percent and are included
+Added: in interest expense in the consolidated financial statements.
+Added: These securities may be included in Tier 1 capital and may be prepaid at
+Added: any time without penalty (with certain limitations applicable) under current regulatory guidelines and interpretations.
+Added: The balance of
+Added: the Capital Securities as of June 30, 2024, and December 31, 2023, was $ 10.3 million, with a maturity date of September 15, 2035 .
+Added: 12 – SUBORDINATED DEBT
+Added: May 27, 2021, the Company entered into Subordinated Note Purchase Agreements with qualified institutional buyers and accredited investors
+Added: pursuant to which the Company issued and sold $ 20.0 million in aggregate principal amount of its 3.65 % Fixed to Floating Rate Subordinated
+Added: Notes due 2031 (the “Notes”).
+Added: The Notes were sold by the Company in a private placement exempt from the registration requirements
+Added: under the Securities Act of 1933, as amended.
+Added: Notes mature on June 1, 2031 , and bear interest at a fixed rate of 3.65 % through May 31, 2026.
+Added: From June 1, 2026, to the maturity date
+Added: or earlier redemption of the Notes, the interest rate will reset quarterly to an interest rate per annum, equal to the then-current-three-month
+Added: SOFR provided by the Federal Reserve Bank of New York plus 296 basis points.
+Added: The Company may redeem the Notes at any time after May 31,
+Added: 2026, and at any time in whole, but not in part, upon the occurrence of certain events.
+Added: Any redemption of the Notes will be subject to
+Added: prior regulatory approval.
+Added: The Company incurred debt issuance costs for placement fees, legal and other out-of-pocket expenses of approximately
+Added: $ 0.5 million, which are being amortized over the life of the Notes.
+Added: 13 – DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES
+Added: value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
+Added: at the measurement date.
+Added: A fair value measurement must maximize the use of observable inputs and minimize the use of unobservable inputs.
+Added: There is a hierarchy of three levels of inputs that may be used to measure fair value:
+Added: Quoted prices in active
+Added: markets for identical assets or liabilities
Observable inputs other than Level 1 prices,
3 unchanged sentences
or can be corroborated by observable market data for substantially the full term of the assets or liabilities
−Removed: Unobservable inputs that are supported by little
−Removed: or no market activity and that are significant to the fair value of the assets or liabilities
−Removed: The following is a description of the valuation methodologies
−Removed: and inputs used for assets measured at fair value on a recurring basis, recognized in the accompanying consolidated balance sheets, as
−Removed: well as the general classifications of such assets pursuant to the valuation hierarchy.
−Removed: Available-for-Sale Securities
−Removed: The fair values of available-for-sale securities
−Removed: are determined by various valuation methodologies.
−Removed: Level 2 securities include obligations of the U.S.
−Removed: treasury and government agencies,
−Removed: mortgage-backed securities, obligations of political and state subdivisions, and other corporate securities.
−Removed: Level 2 inputs do not include
−Removed: quoted prices for individual securities in active markets;
−Removed: however, they do include inputs that are either directly or indirectly observable
−Removed: for the individual security being valued.
−Removed: Such observable inputs include interest rates and yield curves at commonly quoted intervals,
−Removed: volatilities, prepayment speeds, credit risks and default rates.
−Removed: Also included are inputs derived principally from or corroborated by
−Removed: observable market data by correlation or other means.
−Removed: Interest Rate Contracts
−Removed: The fair values of interest rate contracts are
−Removed: based upon the estimated amount the Company would receive or pay to terminate the contracts or agreements, taking into account underlying
−Removed: interest rates, creditworthiness of underlying customers for credit derivatives and, when appropriate, the creditworthiness of the counterparties
−Removed: Forward contracts
−Removed: The fair values of forward contracts on to-be-announced
−Removed: securities are determined using quoted prices in active markets or benchmarked thereto (Level 1).
−Removed: Interest Rate Lock Commitments (IRLCs)
−Removed: The fair value of IRLCs are determined using the
−Removed: projected sale price of individual loans based on changes in the market interest rates, projected “pull-through” rates (the
−Removed: probability that an IRLC will ultimately result in an originated loan), the reduction in the value of the applicant’s option due
−Removed: to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs (Level
−Removed: The following tables present the fair value measurements
−Removed: of assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements
−Removed: fell at March 31, 2024, and December 31, 2023.
+Added: Unobservable inputs that are supported by
+Added: little or no market activity and that are significant to the fair value of the assets or liabilities
+Added: following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis, recognized
+Added: in the accompanying consolidated balance sheets, as well as the general classifications of such assets pursuant to the valuation hierarchy.
+Added: Available-for-Sale
+Added: fair values of available-for-sale securities are determined by various valuation methodologies.
+Added: Level 2 securities include obligations
+Added: Treasury and government agencies, mortgage-backed securities, obligations of political and state subdivisions, and other
+Added: corporate securities.
+Added: Level 2 inputs do not include quoted prices for individual securities in active markets;
+Added: however, they do include
+Added: inputs that are either directly or indirectly observable for the individual security being valued.
+Added: Such observable inputs include interest
+Added: rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, credit risks and default rates.
+Added: Also included are
+Added: inputs derived principally from or corroborated by observable market data by correlation or other means.
+Added: Rate Contracts
+Added: fair values of interest rate contracts are based upon the estimated amount the Company would receive or pay to terminate the contracts
+Added: or agreements, taking into account underlying interest rates, creditworthiness of underlying customers for credit derivatives and, when
+Added: appropriate, the creditworthiness of the counterparties (Level 2).
+Added: fair values of forward contracts on to-be-announced securities are determined using quoted prices in active markets or benchmarked thereto
+Added: Rate Lock Commitments (IRLCs)
+Added: fair value of IRLCs are determined using the projected sale price of individual loans based on changes in the market interest rates,
+Added: projected “pull-through” rates (the probability that an IRLC will ultimately result in an originated loan), the reduction
+Added: in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on
+Added: management’s estimate of market costs (Level 3).
+Added: following tables present the fair value measurements of assets measured at fair value on a recurring basis and the level within the fair
+Added: value hierarchy in which the fair value measurements fell at June 30, 2024, and December 31, 2023.
($ in thousands)
19 unchanged sentences
Level 3 - significant unobservable inputs
−Removed: The following table reconciles the beginning and
−Removed: ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable
−Removed: (Level 3) inputs for the three months ended March 31, 2024, and 2023.
+Added: following table reconciles the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated
+Added: balance sheets using significant unobservable (Level 3) inputs for the three and six months ended June 30, 2024, and 2023.
for the Three Months Ended
+Added: for the Six Months Ended
($ in thousands)
4 unchanged sentences
Balance at end of period
−Removed: The following is a description of the valuation
−Removed: methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated
−Removed: balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.
−Removed: Collateral-dependent Individually evaluated
−Removed: Loans, Net of ACL
−Removed: The estimated fair value of collateral-dependent
−Removed: individually evaluated loans is based on the appraised value of the collateral, less estimated cost to sell.
−Removed: Collateral- dependent individually
−Removed: evaluated loans are classified within Level 3 of the fair value hierarchy.
−Removed: This method requires obtaining an independent appraisal of
−Removed: the collateral, which is reviewed for accuracy and consistency by management.
−Removed: Appraisers are selected from an approved list which is maintained
−Removed: by management.
−Removed: The appraised values are reduced by applying a discount factor to the value based on the Company’s loan review policy.
−Removed: All individually evaluated loans held by the Company were collateral dependent at March 31, 2024 and December 31, 2023.
−Removed: Mortgage Servicing Rights
−Removed: Mortgage servicing rights do not trade in an active,
−Removed: open market with readily observable prices.
−Removed: Accordingly, fair value is estimated using discounted cash flow models associated with the
−Removed: servicing rights and discounting the cash flows using discount market rates, prepayment speeds and default rates.
−Removed: The servicing portfolio
−Removed: has been valued using all relevant positive and negative cash flows including servicing fees;
+Added: following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and
+Added: recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation
+Added: Collateral-dependent
+Added: Individually evaluated Loans, Net of ACL
+Added: estimated fair value of collateral-dependent individually evaluated loans is based on the appraised value of the collateral, less estimated
+Added: cost to sell.
+Added: Collateral-dependent individually evaluated loans are classified within Level 3 of the fair value hierarchy.
+Added: requires obtaining an independent appraisal of the collateral, which is reviewed for accuracy and consistency by management.
+Added: are selected from an approved list which is maintained by management.
+Added: The appraised values are reduced by applying a discount factor
+Added: to the value based on the Company’s loan review policy.
+Added: All individually evaluated loans held by the Company were collateral dependent
+Added: at June 30, 2024, and December 31, 2023.
+Added: Servicing Rights
+Added: servicing rights do not trade in an active, open market with readily observable prices.
+Added: Accordingly, fair value is estimated using discounted
+Added: cash flow models associated with the servicing rights and discounting the cash flows using discount market rates, prepayment speeds and
+Added: default rates.
+Added: The servicing portfolio has been valued using all relevant positive and negative cash flows including servicing fees;
miscellaneous income and float;
−Removed: costs of servicing;
+Added: marginal costs of servicing;
the cost of carry of advances;
and foreclosure losses;
−Removed: and applying certain prevailing assumptions used in the marketplace.
−Removed: Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy.
−Removed: These mortgage servicing
−Removed: rights are tested for impairment on a quarterly basis.
+Added: and applying certain
+Added: prevailing assumptions used in the marketplace.
+Added: Due to the nature of the valuation inputs, mortgage servicing rights are classified within
+Added: Level 3 of the hierarchy.
+Added: These mortgage servicing rights are tested for impairment on a quarterly basis.
($ in thousands)
9 unchanged sentences
Level 3 - significant unobservable inputs
−Removed: Unobservable (Level 3) Inputs
−Removed: The following tables present quantitative information
−Removed: about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
−Removed: Fair value at
−Removed: Range (weighted-
−Removed: ($ in thousands)
−Removed: Valuation technique
−Removed: Unobservable inputs
−Removed: Collateral-dependent individually evaluated
−Removed: Market comparable properties
−Removed: Comparability adjustments (%)
−Removed: 11 - 100% (44%)
−Removed: Mortgage servicing rights
−Removed: Discounted cash flow
−Removed: Discount rate
+Added: (Level 3) Inputs
+Added: following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
+Added: ($ in thousands) Fair value at
+Added: 2024 Valuation
+Added: technique Unobservable inputs Range (weighted-
+Added: Collateral-dependent individually evaluated loans $ 1,559 Market comparable properties Comparability adjustments (%) 10 - 100% (29%)
+Added: Mortgage servicing rights 59 Discounted cash flow Discount rate 11.13%
Constant prepayment rate 6.19%
2 unchanged sentences
Inflation for cost of servicing 3.50%
−Removed: Discounted cash flow
−Removed: Loan closing rates
−Removed: Fair value at
−Removed: Range (weighted-
−Removed: ($ in thousands)
−Removed: Valuation technique
−Removed: Unobservable inputs
−Removed: Collateral-dependent impaired loans
−Removed: Market comparable properties
−Removed: Comparability adjustments (%)
−Removed: 2 - 100% (25%)
−Removed: Mortgage servicing rights
−Removed: Discounted cash flow
−Removed: Discount rate
+Added: IRLCs 15 Discounted cash flow Loan closing rates 52% - 99%
+Added: ($ in thousands) Fair value at
+Added: 2023 Valuation
+Added: technique Unobservable inputs Range (weighted-
+Added: Collateral-dependent impaired loans $ 864 Market comparable properties Comparability adjustments (%) 2 - 100% (25%)
+Added: Mortgage servicing rights 1,896 Discounted cash flow Discount rate 11.01%
Constant prepayment rate 7.16%
2 unchanged sentences
Inflation for cost of servicing 3.50%
−Removed: Discounted cash flow
−Removed: Loan closing rates
−Removed: There were no changes in the inputs or methodologies
−Removed: used to determine fair value at March 31, 2024, as compared to December 31, 2023.
−Removed: The following methods were used to estimate the
−Removed: fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value.
−Removed: Cash and Due From Banks, Interest Bearing Time
−Removed: Deposits, Federal Reserve and Federal Home Loan Bank Stock, and Accrued Interest Receivable and Payable
−Removed: The carrying amount approximates the fair value.
−Removed: Loans Held for Sale
−Removed: The fair value of loans held for sale is based
−Removed: upon quoted market prices, where available, or is determined by discounting estimated cash flows using interest rates approximating the
−Removed: Company’s current origination rates for similar loans and adjusted to reflect the inherent credit risk.
−Removed: The estimated fair value of loans follows the
−Removed: guidance in ASU 2016-01, which prescribes an “exit price” approach in estimating and disclosing fair value of financial instruments.
−Removed: The “exit price” is determined based on discounted estimated future cash flows using rates that incorporate discounts for
−Removed: credit, liquidity, and marketability factors.
−Removed: Deposits, Short-Term Borrowings, and FHLB Advances
−Removed: Deposits include demand deposits, savings accounts,
−Removed: and certain money market deposits.
−Removed: Short-term borrowings include federal funds borrowed and REPO agreements.
−Removed: The carrying amount of these
−Removed: instruments approximates the fair value.
−Removed: The estimated fair value for fixed-maturity time deposits and FHLB advances are based on estimates
−Removed: of the rate State Bank could pay on similar instruments with similar terms and maturities at March 31, 2024, and December 31, 2023.
−Removed: Loan Commitments
−Removed: The fair value of commitments is estimated using
−Removed: the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present
−Removed: creditworthiness of the counterparties.
−Removed: The estimated fair values for other financial instruments and off-balance-sheet loan commitments
−Removed: approximate cost at March 31, 2024, and December 31, 2023, and are not considered significant to this presentation.
−Removed: Trust Preferred Securities
−Removed: The fair value for Trust Preferred Securities
−Removed: is estimated by discounting the cash flows using an appropriate discount rate.
−Removed: Subordinated Debt
−Removed: The fair value for subordinated debt is estimated
−Removed: by discounting the cash flows using a discount rate equal to the rate currently offered on similar borrowings.
−Removed: The following table presents estimated fair values
−Removed: of the Company’s other financial instruments carried at other than fair value.
−Removed: The fair values of certain of these instruments were
−Removed: calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties.
−Removed: Fair value is the
−Removed: estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than
−Removed: in a forced or liquidation sale.
−Removed: Because no market exists for certain of these financial instruments, and because management does not
−Removed: intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the
−Removed: respective financial instruments could be sold individually or in the aggregate.
+Added: IRLCs 45 Discounted cash flow Loan closing rates 27% - 91%
+Added: were no changes in the inputs or methodologies used to determine fair value at June 30, 2024, as compared to December 31, 2023.
+Added: following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated
+Added: balance sheets at amounts other than fair value.
+Added: and Due From Banks, Interest Bearing Time Deposits, Federal Reserve and Federal Home Loan Bank Stock, and Accrued Interest Receivable
+Added: amount approximates the fair value.
+Added: Held for Sale
+Added: fair value of loans held for sale is based upon quoted market prices, where available, or is determined by discounting estimated cash
+Added: flows using interest rates approximating the Company’s current origination rates for similar loans and adjusted to reflect the
+Added: inherent credit risk.
+Added: estimated fair value of loans follows the guidance in ASU 2016-01, which prescribes an “exit price” approach in estimating
+Added: and disclosing fair value of financial instruments.
+Added: The “exit price” is determined based on discounted estimated future cash
+Added: flows using rates that incorporate discounts for credit, liquidity, and marketability factors.
+Added: Short-Term Borrowings, and FHLB Advances
+Added: include demand deposits, savings accounts, and certain money market deposits.
+Added: Short-term borrowings include federal funds borrowed and
+Added: REPO agreements.
+Added: The carrying amount of these instruments approximates the fair value.
+Added: The estimated fair value for fixed-maturity time
+Added: deposits and FHLB advances are based on estimates of the rate State Bank could pay on similar instruments with similar terms and maturities
+Added: at June 30, 2024, and December 31, 2023.
+Added: fair value of loan commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the
+Added: remaining terms of the agreements and the present creditworthiness of the counterparties.
+Added: The estimated fair values for other financial
+Added: instruments and off-balance-sheet loan commitments approximate cost at June 30, 2024, and December 31, 2023, and are not considered significant
+Added: to this presentation.
+Added: Preferred Securities
+Added: fair value for Trust Preferred Securities is estimated by discounting the cash flows using an appropriate discount rate.
+Added: fair value for subordinated debt is estimated by discounting the cash flows using a discount rate equal to the rate currently offered
+Added: on similar borrowings.
+Added: following table presents estimated fair values of the Company’s other financial instruments carried at other than fair value.
+Added: fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments
+Added: by management and uncertainties.
+Added: Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a
+Added: current transaction between willing parties, other than in a forced or liquidation sale.
+Added: Because no market exists for certain of these
+Added: financial instruments, and because management does not intend to sell these financial instruments, the Company does not know whether
+Added: the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate.
($ in thousands)
Fair value measurements using
−Removed: March 31, 2024
+Added: June 30, 2024
Financial assets
27 unchanged sentences
Interest payable
−Removed: NOTE 14 – SHARE BASED COMPENSATION
−Removed: In April 2017, the Company’s shareholders
−Removed: approved a new share-based incentive compensation plan, the SB Financial Group, Inc.
−Removed: 2017 Stock Incentive Plan (the “2017 Plan”),
−Removed: which replaced the Company’s 2008 Stock Incentive Plan.
−Removed: The 2017 Plan permits the Company to grant or award incentive stock options,
−Removed: nonqualified stock options, stock appreciation rights (“SARs”), restricted stock, and restricted stock units to employees
−Removed: and non-employee directors and advisory board members of the Company and its subsidiaries.
−Removed: A total of 500,000 common shares of the Company
−Removed: are available for grants or awards under the 2017 Plan, of which 186,456 shares had been granted under the plan as of March 31, 2024.
−Removed: The 2017 Plan is intended to advance the interests
−Removed: of the Company and its shareholders by offering employees, directors and advisory board members of the Company and its subsidiaries an
−Removed: opportunity to acquire or increase their ownership interest in the Company through grants of equity-based awards.
+Added: 14 – SHARE BASED COMPENSATION
+Added: April 2017, the Company’s shareholders approved a new share-based incentive compensation plan, the SB Financial Group, Inc.
+Added: Stock Incentive Plan (the “2017 Plan”), which replaced the Company’s 2008 Stock Incentive Plan.
The 2017 Plan permits
−Removed: equity-based awards to be used to attract, motivate, reward and retain highly competent individuals upon whose judgment, initiative, leadership
−Removed: and efforts are key to the success of the Company by encouraging those individuals to become shareholders of the Company.
−Removed: Stock option awards are granted with an exercise
−Removed: price equal to the market price of the Company’s stock at the date of grant and those option awards vest based on five years of
−Removed: continuous service and have 10-year contractual terms.
−Removed: The fair value of each option award is estimated on the date of grant using the
−Removed: Black-Scholes valuation model.
−Removed: As of March 31, 2024, there were no stock options outstanding, and no unrecognized compensation cost related
−Removed: to stock option awards.
−Removed: No stock options were granted in the first three months of 2024.
−Removed: On February 5, 2013, the Company adopted a Long
−Removed: Term Incentive Plan (the “LTI Plan”), which provides for awards of restricted stock in the Company to certain key executives.
−Removed: These restricted stock awards vest over a four-year period and are intended to assist the Company in retention of key executives.
−Removed: compensation cost charged against income for awards under the LTI Plan for the three months ended March 31, 2024 and March 31, 2023 was
−Removed: $ 0.2 million and $ 0.2 million, respectively.
−Removed: As of March 31, 2024, there was $ 1.0 million of
−Removed: total unrecognized compensation cost related to non-vested share-based compensation arrangements related to the restricted stock awards
−Removed: under the 2017 Plan which were granted in accordance with the LTI Plan.
−Removed: That cost is expected to be recognized over a weighted-average
−Removed: period of 1.9 years.
−Removed: The table below is a summary of restricted stock
−Removed: activity under the Company’s 2017 Plan for the three months ended March 31, 2024.
−Removed: Weighted-Average
−Removed: Value per Share
+Added: the Company to grant or award incentive stock options, nonqualified stock options, stock appreciation rights (“SARs”), restricted
+Added: stock, and restricted stock units to employees and non-employee directors and advisory board members of the Company and its subsidiaries.
+Added: A total of 500,000 common shares of the Company are available for grants or awards under the 2017 Plan, of which 188,456 shares had been
+Added: granted under the plan as of June 30, 2024.
+Added: 2017 Plan is intended to advance the interests of the Company and its shareholders by offering employees, directors and advisory board
+Added: members of the Company and its subsidiaries an opportunity to acquire or increase their ownership interest in the Company through grants
+Added: of equity-based awards.
+Added: The 2017 Plan permits equity-based awards to be used to attract, motivate, reward and retain highly competent
+Added: individuals upon whose judgment, initiative, leadership and efforts are key to the success of the Company by encouraging those individuals
+Added: to become shareholders of the Company.
+Added: option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant and those
+Added: option awards vest based on five years of continuous service and have 10-year contractual terms.
+Added: The fair value of each option award
+Added: is estimated on the date of grant using the Black-Scholes valuation model.
+Added: As of June 30, 2024, there were no stock options outstanding,
+Added: and no unrecognized compensation cost related to stock option awards.
+Added: No stock options were granted in the first six months of 2024.
+Added: February 5, 2013, the Company adopted a Long Term Incentive Plan (the “LTI Plan”), which provides for awards of restricted
+Added: stock in the Company to certain key executives.
+Added: These restricted stock awards vest over a four-year period and are intended to assist
+Added: the Company in retention of key executives.
+Added: The compensation cost charged against income for awards under the LTI Plan for the three
+Added: and six months ended June 30, 2024, was $ 0.2 million and $ 0.4 million, respectively, and for the three and six months ended June 30,
+Added: 2023, was $ 0.2 million and $ 0.4 million, respectively.
+Added: of June 30, 2024, there was $ 0.8 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements
+Added: related to the restricted stock awards under the 2017 Plan which were granted in accordance with the LTI Plan.
+Added: That cost is expected
+Added: to be recognized over a weighted-average period of 2.1 years.
+Added: table below is a summary of restricted stock activity under the Company’s 2017 Plan for the six months ended June 30, 2024.
+Added: Average Value
Nonvested, January 1, 2024
−Removed: Nonvested, March 31, 2024
−Removed: NOTE 15 – GENERAL LITIGATION
−Removed: The Company is subject to claims and lawsuits
−Removed: that arise primarily in the ordinary course of business.
−Removed: Additionally, the Company is subject to periodic examinations by various regulatory
−Removed: It is the opinion of management that the disposition or ultimate resolution of any such claims, lawsuits and examinations pending
−Removed: at March 31, 2024, will not have a material adverse effect on the consolidated financial position, results of operations and cash flow
−Removed: of the Company.
+Added: Nonvested, June 30, 2024
+Added: 15 – GENERAL LITIGATION
+Added: Company is subject to claims and lawsuits that arise primarily in the ordinary course of business.
+Added: Additionally, the Company is subject
+Added: to periodic examinations by various regulatory agencies.
+Added: It is the opinion of management that the disposition or ultimate resolution
+Added: of any such claims, lawsuits and examinations pending at June 30, 2024, will not have a material adverse effect on the consolidated financial
+Added: position, results of operations and cash flow of the Company.
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.