|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading symbols(s)
|
Name of each exchange on which registered
|
||
None
|
Not Applicable
|
Not Applicable
|
Yes ☐
|
|
Yes ☐
|
|
|
No ☐
|
|
No ☐
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
Smaller reporting company
|
Emerging growth company
|
(Do not check if smaller reporting company)
|
Yes
|
No ☒
|
PART I
|
Page
|
|
Item 1
|
5
|
|
Item 1A
|
15
|
|
Item 1B
|
25
|
|
Item 1C
|
25
|
|
Item 2
|
26
|
|
Item 3
|
26
|
|
Item 4
|
26
|
|
PART II
|
||
Item 5
|
27
|
|
Item 6
|
28
|
|
Item 7
|
29
|
|
Item 7A
|
53
|
|
Item 8
|
54
|
|
Item 9
|
113
|
|
Item 9A
|
113
|
|
Item 9B
|
114
|
|
Item 9C
|
114
|
|
PART III
|
||
Item 10
|
115
|
|
Item 11
|
115
|
|
Item 12
|
116
|
|
Item 13
|
116
|
|
Item 14
|
116
|
|
PART IV
|
||
Item 15
|
117
|
|
Item 16
|
120
|
|
121
|
● |
Our business objectives, strategies and initiatives, our organizational structure, the growth of our business and our competitive position and prospects, and the effect of competition on our business and
strategies
|
● |
Our assessment of significant factors and developments that have affected or may affect our results
|
● |
Legal and regulatory actions, and future legislative and regulatory developments, including the effects of the Dodd-Frank Wall Street Reform and Protection Act (the “Dodd-Frank Act”), the
Economic Growth, Regulatory Relief and Consumer Protection Act (the “EGRRCPA”), and other legislation and governmental measures introduced in response to the financial crisis which began in 2008 and the ensuing recession affecting the
banking system, financial markets and the U.S. economy
|
● |
Regulatory and compliance controls, processes and requirements and their impact on our business
|
● |
The costs and effects of legal or regulatory actions
|
● |
Expectations regarding draws on performance letters of credit and liabilities that may result from recourse provisions in standby letters of credit
|
● |
Our intent to sell or hold, and the likelihood that we would be required to sell, various investment securities
|
● |
Our regulatory capital requirements, including the capital rules established after the 2008 financial crisis by the U.S. federal banking agencies and our current intention not to elect to
use the community bank leverage ratio framework
|
● |
Expectations regarding our non-payment of a cash dividend on our common stock in the foreseeable future
|
● |
Credit quality and provision for credit losses and management of asset quality and credit risk, expectations regarding collections and the timing thereof
|
● |
Our allowances for credit losses, including the conditions we consider in determining the unallocated allowance and our portfolio credit quality, the adequacy of the allowance for credit
losses, underwriting standards, and risk grading
|
● |
Our assessment of economic conditions and trends and credit cycles and their impact on our business
|
● |
The seasonal nature of our business
|
● |
The impact of changes in interest rates and our strategy to manage our interest rate risk profile and the possible effect of changes in residential mortgage interest rates on new
originations and refinancing of existing residential mortgage loans
|
● |
Loan portfolio composition and risk grade trends, expected charge-offs, portfolio credit quality, loan demand, our strategy regarding loan modifications, delinquency rates and our
underwriting standards and our expectations regarding our recognition of interest income on loans that were provided payment deferrals upon completion of the payment forbearance period
|
● |
Our deposit base including renewal of time deposits and the outlook for deposit balances
|
● |
The impact on our net interest income and net interest margin of changes in interest rates
|
● |
The effect of possible changes in the initiatives and policies of the federal and state bank regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, the Securities and
Exchange Commission and other standard setters
|
● |
Tax rates and the impact of changes in the U.S. tax laws
|
● |
Our pension and retirement plan costs
|
● |
Our liquidity strategies and beliefs concerning the adequacy of our liquidity and ability to satisfactorily manage our liquidity
|
● |
Critical accounting policies and estimates, the impact or anticipated impact of recent accounting pronouncements or changes in accounting principles
|
● |
Expected rates of return, maturities, loss exposure, growth rates, yields, and projected results
|
● |
The possible impact of weather-related or other natural conditions, including drought, fire or flooding, seismic events, and related governmental responses, including related electrical
power outages, on economic conditions, especially in the agricultural sector
|
● |
Maintenance of insurance coverages appropriate for our operations
|
● |
Threats to the banking sector and our business due to cybersecurity issues and attacks and regulatory expectations related to cybersecurity
|
● |
Possible changes in the fair values recorded on our financial statements of the assets acquired and liabilities assumed in our business combination completed in January 2023
|
● |
The possible effects on community banks and our business from the recent failures of other banks
|
● |
The possible adverse impacts on the banking industry and our business from a period of significant, prolonged inflation
|
● |
Descriptions of assumptions underlying or relating to any of the foregoing
|
ITEM 1 – |
BUSINESS
|
The Bank
|
||||||||||||||
2023
|
Adequately
Capitalized
|
Well
Capitalized
|
||||||||||||
Capital
|
Ratio
|
Ratio*
|
Ratio
|
|||||||||||
Tier 1 Leverage Capital (to Average Assets)
|
$
|
187,248
|
9.7
|
%
|
4.0
|
%
|
5.0
|
%
|
||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
187,248
|
14.8
|
%
|
4.5
|
%
|
6.5
|
%
|
|||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
187,248
|
14.8
|
%
|
6.0
|
%
|
8.0
|
%
|
|||||||
Total Risk-Based Capital (to Risk-Weighted Assets)
|
203,096
|
16.0
|
%
|
8.0
|
%
|
10.0
|
%
|
ITEM 1A – |
RISK FACTORS
|
ITEM 1B – |
UNRESOLVED STAFF COMMENTS
|
ITEM 1C – |
CYBERSECURITY
|
• |
A risk assessment process that identifies and prioritizes material cybersecurity risks; defines and evaluates the effectiveness of controls to mitigate the risks; and reports results to executive management and
the Board of Directors.
|
• |
A third-party Managed Detection and Response (“MDR”) service, which monitors the security of our information systems around-the-clock, including intrusion detection and alerting.
|
• |
A third-party Managed Security Service Provider (“MSSP”) covering all critical cyber defense functions such as data protection, identity and access management, insider risk management, security operations and
threat intelligence.
|
• |
A training program that educates employees and management about cybersecurity risks and how to protect themselves from cyberattacks.
|
• |
An incident response plan that outlines the steps the Company will take to respond to a cybersecurity incident, which is tested on a periodic basis.
|
ITEM 2 – |
PROPERTIES
|
ITEM 3 – |
LEGAL PROCEEDINGS
|
ITEM 4 – |
MINE SAFETY DISCLOSURES
|
ITEM 5 – |
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
QUARTER/YEAR
|
HIGH*
|
LOW*
|
||||||
4th Quarter 2023
|
$
|
9.04
|
$
|
7.62
|
||||
3rd Quarter 2023
|
$
|
9.28
|
$
|
6.66
|
||||
2nd Quarter 2023
|
$
|
7.16
|
$
|
6.37
|
||||
1st Quarter 2023
|
$
|
8.19
|
$
|
7.04
|
||||
4th Quarter 2022
|
$
|
7.67
|
$
|
6.88
|
||||
3rd Quarter 2022
|
$
|
8.38
|
$
|
7.62
|
||||
2nd Quarter 2022
|
$
|
9.25
|
$
|
8.16
|
||||
1st Quarter 2022
|
$
|
9.75
|
$
|
8.81
|
Shareholder Record Date
|
Dividend Percentage
|
Date Payable
|
||
February 28, 2022
|
5%
|
March 25, 2022
|
||
February 28, 2023
|
5%
|
March 24, 2023
|
||
February 29, 2024
|
5%
|
March 25, 2024
|
ITEM 6 – |
RESERVED
|
ITEM 7 – |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
|
2023
|
2022
|
2021
|
||||||||||||||||||||||
Average
Balance
|
Percent
|
Average
Balance
|
Percent
|
Average
Balance
|
Percent
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and Due From Banks
|
$
|
212,944
|
11.1
|
%
|
$
|
268,041
|
14.2
|
%
|
$
|
363,172
|
19.6
|
%
|
||||||||||||
Certificates of Deposit
|
20,995
|
1.1
|
%
|
12,804
|
0.7
|
%
|
14,250
|
0.8
|
%
|
|||||||||||||||
Investment Securities
|
595,044
|
31.1
|
%
|
629,600
|
33.2
|
%
|
542,709
|
29.4
|
%
|
|||||||||||||||
Loans (1)
|
1,005,066
|
52.6
|
%
|
915,278
|
48.3
|
%
|
876,502
|
47.4
|
%
|
|||||||||||||||
Stock in Federal Home Loan Bank and other equity securities, at cost
|
10,119
|
0.5
|
%
|
8,746
|
0.5
|
%
|
6,919
|
0.4
|
%
|
|||||||||||||||
Other Assets
|
68,796
|
3.6
|
%
|
58,767
|
3.1
|
%
|
45,059
|
2.4
|
%
|
|||||||||||||||
Total Assets
|
$
|
1,912,964
|
100.0
|
%
|
$
|
1,893,236
|
100.0
|
%
|
$
|
1,848,611
|
100.0
|
%
|
||||||||||||
LIABILITIES &
|
||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Demand
|
$
|
783,005
|
40.9
|
%
|
$
|
805,738
|
42.6
|
%
|
$
|
764,676
|
41.4
|
%
|
||||||||||||
Interest-Bearing Transaction Deposits
|
421,493
|
22.0
|
%
|
441,543
|
23.3
|
%
|
420,481
|
22.7
|
%
|
|||||||||||||||
Savings and MMDAs
|
454,854
|
23.8
|
%
|
449,169
|
23.7
|
%
|
436,931
|
23.6
|
%
|
|||||||||||||||
Time Certificates
|
97,639
|
5.1
|
%
|
47,022
|
2.5
|
%
|
54,465
|
2.9
|
%
|
|||||||||||||||
Federal Home Loan Bank Advances
|
—
|
—
|
—
|
—
|
1,809
|
0.1
|
%
|
|||||||||||||||||
Other Liabilities
|
18,565
|
1.0
|
%
|
18,887
|
1.0
|
%
|
19,418
|
1.1
|
%
|
|||||||||||||||
Stockholders’ Equity
|
137,408
|
7.2
|
%
|
130,877
|
6.9
|
%
|
150,831
|
8.2
|
%
|
|||||||||||||||
Total Liabilities and Stockholders’ Equity
|
$
|
1,912,964
|
100.0
|
%
|
$
|
1,893,236
|
100.0
|
%
|
$
|
1,848,611
|
100.0
|
%
|
(1) |
Average balances for loans include loans held-for-sale and non-accrual loans and are net of the allowance for credit losses.
|
2023
|
2022
|
2021
|
||||||||||||||||||||||||||||||||||
Assets
|
Average
Balance
|
Interest
Income/
Expense
|
Yields
Earned/
Rates
Paid
|
Average
Balance
|
Interest
Income/
Expense
|
Yields
Earned/
Rates
Paid
|
Average
Balance
|
Interest
Income/
Expense
|
Yields
Earned/
Rates
Paid
|
|||||||||||||||||||||||||||
Total Loans, Including Loan Fees(1)
|
$
|
1,005,066
|
$
|
52,203
|
5.19
|
%
|
$
|
915,278
|
$
|
42,316
|
4.62
|
%
|
$
|
876,502
|
$
|
39,207
|
4.47
|
%
|
||||||||||||||||||
Due From Banks
|
167,850
|
8,594
|
5.12
|
%
|
222,335
|
3,546
|
1.59
|
%
|
322,951
|
425
|
0.13
|
%
|
||||||||||||||||||||||||
Certificates of Deposit
|
20,995
|
757
|
3.61
|
%
|
12,804
|
283
|
2.21
|
%
|
14,250
|
297
|
2.08
|
%
|
||||||||||||||||||||||||
Investment Securities:
|
||||||||||||||||||||||||||||||||||||
Taxable
|
559,905
|
10,850
|
1.94
|
%
|
591,987
|
8,296
|
1.40
|
%
|
514,350
|
6,249
|
1.21
|
%
|
||||||||||||||||||||||||
Non-taxable (2)
|
35,139
|
914
|
2.60
|
%
|
37,613
|
909
|
2.42
|
%
|
28,359
|
603
|
2.13
|
%
|
||||||||||||||||||||||||
Total Investment Securities
|
595,044
|
11,764
|
1.98
|
%
|
629,600
|
9,205
|
1.46
|
%
|
542,709
|
6,852
|
1.26
|
%
|
||||||||||||||||||||||||
Other Earning Assets
|
10,119
|
805
|
7.96
|
%
|
8,746
|
532
|
6.08
|
%
|
6,919
|
395
|
5.71
|
%
|
||||||||||||||||||||||||
Total Earning Assets
|
$
|
1,799,074
|
$
|
74,123
|
4.12
|
%
|
$
|
1,788,763
|
$
|
55,882
|
3.12
|
%
|
$
|
1,763,331
|
$
|
47,176
|
2.68
|
%
|
||||||||||||||||||
Cash and Due from Banks
|
45,094
|
45,706
|
40,221
|
|||||||||||||||||||||||||||||||||
Interest Receivable and Other Assets
|
68,796
|
58,767
|
45,059
|
|||||||||||||||||||||||||||||||||
Total Assets
|
$
|
1,912,964
|
$
|
1,893,236
|
$
|
1,848,611
|
(1) |
Average balances for loans include loans held-for-sale and non-accrual loans and are net of the allowance for credit losses, but non-accrued interest thereon is excluded. Includes amortization of deferred loan fees
and costs.
|
(2) |
Interest income and yields on tax-exempt securities are not presented on a taxable equivalent basis.
|
2023
|
2022
|
2021
|
||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
Average
Balance
|
Interest
Income/
Expense
|
Yields
Earned/
Rates
Paid
|
Average
Balance
|
Interest
Income/
Expense
|
Yields
Earned/
Rates
Paid
|
Average
Balance
|
Interest
Income/
Expense
|
Yields
Earned/
Rates
Paid
|
|||||||||||||||||||||||||||
Interest-Bearing Deposits:
|
||||||||||||||||||||||||||||||||||||
Interest-Bearing
|
||||||||||||||||||||||||||||||||||||
Transaction Deposits
|
$
|
421,493
|
$
|
1,614
|
0.38
|
%
|
$
|
441,543
|
$
|
337
|
0.08
|
%
|
$
|
420,481
|
$
|
248
|
0.06
|
%
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Savings and MMDAs
|
454,854
|
2,937
|
0.65
|
%
|
449,169
|
716
|
0.16
|
%
|
436,931
|
474
|
0.11
|
%
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Time Certificates
|
97,639
|
3,033
|
3.11
|
%
|
47,022
|
133
|
0.28
|
%
|
54,465
|
190
|
0.35
|
%
|
||||||||||||||||||||||||
Total Interest-Bearing Deposits
|
973,986
|
7,584
|
0.78
|
%
|
937,734
|
1,186
|
0.13
|
%
|
911,877
|
912
|
0.10
|
%
|
||||||||||||||||||||||||
Demand Deposits
|
783,005
|
805,738
|
764,676
|
|||||||||||||||||||||||||||||||||
Total Deposits
|
1,756,991
|
$
|
7,584
|
0.43
|
%
|
1,743,472
|
$
|
1,186
|
0.07
|
%
|
1,676,553
|
$
|
912
|
0.05
|
%
|
|||||||||||||||||||||
Federal Home Loan Bank Advances
|
—
|
—
|
1,809
|
|||||||||||||||||||||||||||||||||
Interest payable and Other Liabilities
|
18,565
|
18,887
|
19,418
|
|||||||||||||||||||||||||||||||||
Stockholders’ Equity
|
137,408
|
130,877
|
150,831
|
|||||||||||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity
|
$
|
1,912,964
|
$
|
1,893,236
|
$
|
1,848,611
|
||||||||||||||||||||||||||||||
Net Interest Income and Net Interest Margin (1)
|
$
|
66,539
|
3.70
|
%
|
$
|
54,696
|
3.06
|
%
|
$
|
46,264
|
2.62
|
%
|
||||||||||||||||||||||||
Net Interest Spread (2)
|
3.34
|
%
|
2.99
|
%
|
2.58
|
%
|
(1)
|
Net interest margin is computed by dividing net interest income by total average interest-earning assets.
|
(2) |
Net interest spread represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.
|
2023 Over 2022
|
||||||||||||
Volume
|
Interest
Rate
|
Change
|
||||||||||
Increase (Decrease) in Interest Income:
|
||||||||||||
Loans
|
$
|
4,379
|
$
|
5,508
|
$
|
9,887
|
||||||
Due From Banks
|
(1,058
|
)
|
6,106
|
5,048
|
||||||||
Certificates of Deposit
|
239
|
235
|
474
|
|||||||||
Investment Securities - Taxable
|
(473
|
)
|
3,027
|
2,554
|
||||||||
Investment Securities - Non-taxable
|
(61
|
)
|
66
|
5
|
||||||||
Other Earning Assets
|
92
|
181
|
273
|
|||||||||
3,118
|
15,123
|
18,241
|
||||||||||
Increase (Decrease) in Interest Expense:
|
||||||||||||
Deposits:
|
||||||||||||
Interest-Bearing Transaction Deposits
|
(16
|
)
|
1,293
|
1,277
|
||||||||
Savings and MMDAs
|
9
|
2,212
|
2,221
|
|||||||||
Time Certificates
|
280
|
2,620
|
2,900
|
|||||||||
273
|
6,125
|
6,398
|
||||||||||
Increase in Net Interest Income:
|
$
|
2,845
|
$
|
8,998
|
$
|
11,843
|
2023
|
2022
|
|||||||
Investment securities available-for-sale (at fair value):
|
||||||||
U.S. Treasury Securities
|
$
|
87,182
|
$
|
113,815
|
||||
Securities of U.S. Government Agencies and Corporations
|
115,079
|
118,911
|
||||||
Obligations of State and Political Subdivisions
|
51,677
|
53,326
|
||||||
Collateralized Mortgage Obligations
|
90,947
|
95,350
|
||||||
Mortgage-Backed Securities
|
227,472
|
236,690
|
||||||
Total Investments
|
$
|
572,357
|
$
|
618,092
|
Within One Year
|
After One But
Within Five Years
|
After Five But
Within Ten Years
|
||||||||||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
|||||||||||||||||||
Investment securities available-for-sale (at fair value):
|
||||||||||||||||||||||||
U.S. Treasury Securities
|
$
|
37,829
|
1.31
|
%
|
$
|
49,353
|
2.25
|
%
|
$
|
—
|
—
|
|||||||||||||
Securities of U.S. Government Agencies and Corporations
|
38,577
|
1.59
|
%
|
67,218
|
2.11
|
%
|
9,284
|
1.85
|
%
|
|||||||||||||||
Obligations of State and Political Subdivisions
|
1,002
|
4.12
|
%
|
8,029
|
2.24
|
%
|
18,143
|
3.23
|
%
|
|||||||||||||||
Collateralized Mortgage Obligations
|
—
|
—
|
5,643
|
3.84
|
%
|
5,718
|
3.75
|
%
|
||||||||||||||||
Mortgage-Backed Securities
|
76
|
1.83
|
%
|
15,512
|
3.04
|
%
|
95,863
|
2.62
|
%
|
|||||||||||||||
TOTAL
|
$
|
77,484
|
1.49
|
%
|
$
|
145,755
|
2.33
|
%
|
$
|
129,008
|
2.70
|
%
|
After Ten Years
|
Total
|
|||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
|||||||||||||
Investment securities available-for-sale (at fair value):
|
||||||||||||||||
U.S. Treasury Securities
|
$
|
—
|
—
|
$
|
87,182
|
1.84
|
%
|
|||||||||
Securities of U.S. Government Agencies and Corporations
|
—
|
—
|
115,079
|
1.91
|
%
|
|||||||||||
Obligations of State & Political Subdivisions
|
24,503
|
3.12
|
%
|
51,677
|
3.04
|
%
|
||||||||||
Collateralized Mortgage Obligations
|
79,586
|
1.55
|
%
|
90,947
|
1.83
|
%
|
||||||||||
Mortgage-Backed Securities
|
116,021
|
1.78
|
%
|
227,472
|
2.22
|
%
|
||||||||||
TOTAL
|
$
|
220,110
|
1.85
|
%
|
$
|
572,357
|
2.11
|
%
|
2023
|
2022
|
|||||||||||||||
Balance
|
Percent
|
Balance
|
Percent
|
|||||||||||||
Commercial
|
$
|
106,897
|
10.0
|
%
|
$
|
106,771
|
10.8
|
%
|
||||||||
Commercial Real Estate
|
721,729
|
67.5
|
%
|
645,166
|
65.6
|
%
|
||||||||||
Agriculture
|
105,838
|
9.9
|
%
|
114,040
|
11.6
|
%
|
||||||||||
Residential Mortgage
|
107,328
|
10.0
|
%
|
92,669
|
9.4
|
%
|
||||||||||
Residential Construction
|
12,323
|
1.2
|
%
|
10,167
|
1.0
|
%
|
||||||||||
Consumer
|
14,868
|
1.4
|
%
|
15,287
|
1.6
|
%
|
||||||||||
1,068,983
|
100.0
|
%
|
984,100
|
100.0
|
%
|
|||||||||||
Allowance for credit losses
|
(16,596
|
)
|
(14,792
|
)
|
||||||||||||
Net deferred origination fees and costs
|
78
|
830
|
||||||||||||||
TOTAL
|
$
|
1,052,465
|
$
|
970,138
|
Due in One
Year or Less
|
After One,
but Within
Five Years
|
After Five
but Within
Fifteen Years
|
After Fifteen
Years
|
Total
|
||||||||||||||||
Commercial
|
$
|
17,126
|
$
|
57,288
|
$
|
32,459
|
$
|
24
|
$
|
106,897
|
||||||||||
Commercial Real Estate
|
31,386
|
109,193
|
511,070
|
70,080
|
721,729
|
|||||||||||||||
Agriculture
|
17,833
|
11,760
|
24,732
|
51,513
|
105,838
|
|||||||||||||||
Residential Mortgage
|
17
|
1,951
|
27,150
|
78,210
|
107,328
|
|||||||||||||||
Residential Construction
|
6,355
|
107
|
—
|
5,861
|
12,323
|
|||||||||||||||
Consumer
|
393
|
6,086
|
7,323
|
1,066
|
14,868
|
|||||||||||||||
Total
|
$
|
73,110
|
$
|
186,385
|
$
|
602,734
|
$
|
206,754
|
$
|
1,068,983
|
||||||||||
Loans with fixed interest rates:
|
||||||||||||||||||||
Commercial
|
$
|
2,984
|
$
|
38,537
|
$
|
20,377
|
$
|
—
|
$
|
61,898
|
||||||||||
Commercial Real Estate
|
23,941
|
62,368
|
233,987
|
34,691
|
354,987
|
|||||||||||||||
Agriculture
|
34
|
5,851
|
17,571
|
—
|
23,456
|
|||||||||||||||
Residential Mortgage
|
—
|
1,617
|
23,605
|
8,435
|
33,657
|
|||||||||||||||
Residential Construction
|
—
|
107
|
—
|
—
|
107
|
|||||||||||||||
Consumer
|
3
|
708
|
—
|
609
|
1,320
|
|||||||||||||||
Total
|
$
|
26,962
|
$
|
109,188
|
$
|
295,540
|
$
|
43,735
|
$
|
475,425
|
||||||||||
Loans with variable interest rates:
|
||||||||||||||||||||
Commercial
|
$
|
14,142
|
$
|
18,751
|
$
|
12,082
|
$
|
24
|
$
|
44,999
|
||||||||||
Commercial Real Estate
|
7,445
|
46,825
|
277,083
|
35,389
|
366,742
|
|||||||||||||||
Agriculture
|
17,799
|
5,909
|
7,161
|
51,513
|
82,382
|
|||||||||||||||
Residential Mortgage
|
17
|
334
|
3,545
|
69,775
|
73,671
|
|||||||||||||||
Residential Construction
|
6,355
|
—
|
—
|
5,861
|
12,216
|
|||||||||||||||
Consumer
|
390
|
5,378
|
7,323
|
457
|
13,548
|
|||||||||||||||
Total
|
$
|
46,148
|
$
|
77,197
|
$
|
307,194
|
$
|
163,019
|
$
|
593,558
|
At December 31, 2023
|
At December 31, 2022
|
|||||||||||||||||||||||
Gross
|
Guaranteed
|
Net
|
Gross
|
Guaranteed
|
Net
|
|||||||||||||||||||
Commercial
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Commercial real estate
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Agriculture
|
2,871
|
—
|
2,871
|
7,416
|
—
|
7,416
|
||||||||||||||||||
Residential mortgage
|
424
|
—
|
424
|
123
|
—
|
123
|
||||||||||||||||||
Residential construction
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Consumer
|
703
|
—
|
703
|
637
|
—
|
637
|
||||||||||||||||||
Total non-accrual loans
|
$
|
3,998
|
$
|
—
|
$
|
3,998
|
$
|
8,176
|
$
|
—
|
$
|
8,176
|
At December 31, 2023
|
At December 31, 2022
|
|||||||||||||||||||||||
Gross
|
Guaranteed
|
Net
|
Gross
|
Guaranteed
|
Net
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Non-accrual loans
|
$
|
3,998
|
$
|
—
|
$
|
3,998
|
$
|
8,176
|
$
|
—
|
$
|
8,176
|
||||||||||||
Loans 90 days past due and still accruing
|
4,336
|
—
|
4,336
|
403
|
—
|
403
|
||||||||||||||||||
Total non-performing loans
|
8,334
|
—
|
8,334
|
8,579
|
—
|
8,579
|
||||||||||||||||||
Other real estate owned
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Total non-performing assets
|
8,334
|
—
|
8,334
|
8,579
|
—
|
8,579
|
||||||||||||||||||
Non-performing loans (net of guarantees) to total loans
|
0.8
|
%
|
0.9
|
%
|
||||||||||||||||||||
Non-performing assets (net of guarantees) to total assets
|
0.5
|
%
|
0.5
|
%
|
||||||||||||||||||||
Allowance for credit losses to non-performing loans (net of guarantees)
|
199.1
|
%
|
172.4
|
%
|
2023
|
2022
|
2021
|
||||||||||
Balance at Beginning of Year
|
$
|
14,792
|
$
|
13,952
|
$
|
15,416
|
||||||
Impact of adopting ASC 326
|
800
|
—
|
—
|
|||||||||
Provision for Credit Losses
|
1,150
|
900
|
(1,500
|
)
|
||||||||
Loans Charged-Off:
|
||||||||||||
Commercial
|
(366
|
)
|
(297
|
)
|
(502
|
)
|
||||||
Commercial Real Estate
|
—
|
—
|
—
|
|||||||||
Agriculture
|
(2,567
|
)
|
—
|
—
|
||||||||
Residential Mortgage
|
(3
|
)
|
—
|
(5
|
)
|
|||||||
Residential Construction
|
—
|
—
|
—
|
|||||||||
Consumer
|
(13
|
)
|
(48
|
)
|
(12
|
)
|
||||||
Total Charged-Off
|
(2,949
|
)
|
(345
|
)
|
(519
|
)
|
||||||
Recoveries:
|
||||||||||||
Commercial
|
235
|
275
|
429
|
|||||||||
Commercial Real Estate
|
—
|
—
|
14
|
|||||||||
Agriculture
|
2,567
|
—
|
—
|
|||||||||
Residential Mortgage
|
—
|
—
|
—
|
|||||||||
Residential Construction
|
—
|
—
|
—
|
|||||||||
Consumer
|
1
|
10
|
112
|
|||||||||
Total Recoveries
|
2,803
|
285
|
555
|
|||||||||
Net (Charge-offs) Recoveries
|
(146
|
)
|
(60
|
)
|
36
|
|||||||
Balance at End of Year
|
$
|
16,596
|
$
|
14,792
|
$
|
13,952
|
||||||
Ratio of Net (Charge-Offs) Recoveries
|
||||||||||||
During the Year to Average Loans
|
||||||||||||
Outstanding During the Year
|
(0.01
|
)%
|
(0.01
|
)%
|
0.00
|
%
|
||||||
Allowance for Credit Losses to Total Loans
|
1.55
|
%
|
1.50
|
%
|
1.61
|
%
|
||||||
Nonaccrual loans to Total Loans
|
0.37
|
%
|
0.80
|
%
|
1.20
|
%
|
||||||
Allowance for Credit Losses to Nonaccrual loans
|
415.11
|
%
|
180.90
|
%
|
136.80
|
%
|
December 31, 2023
|
December 31, 2022
|
|||||||||||||||||||||||
Allocation of
Allowance for
Credit Losses Balance
|
Allowance as a % of Total Allowance
|
Loans as a % of Total Loans, net
|
Allocation of Allowance for Credit Losses Balance
|
Allowance as a % of Total Allowance
|
Loans as a % of Total Loans, net
|
|||||||||||||||||||
Loan Type:
|
||||||||||||||||||||||||
Commercial
|
$
|
2,041
|
12.3
|
%
|
10.0
|
%
|
$
|
1,491
|
10.1
|
%
|
10.8
|
%
|
||||||||||||
Commercial Real Estate
|
10,864
|
65.5
|
%
|
67.5
|
%
|
10,259
|
69.3
|
%
|
65.6
|
%
|
||||||||||||||
Agriculture
|
997
|
6.0
|
%
|
9.9
|
%
|
1,789
|
12.1
|
%
|
11.6
|
%
|
||||||||||||||
Residential Mortgage
|
2,005
|
12.1
|
%
|
10.0
|
%
|
896
|
6.1
|
%
|
9.4
|
%
|
||||||||||||||
Residential Construction
|
334
|
2.0
|
%
|
1.2
|
%
|
181
|
1.2
|
%
|
1.0
|
%
|
||||||||||||||
Consumer
|
355
|
2.1
|
%
|
1.4
|
%
|
176
|
1.2
|
%
|
1.6
|
%
|
||||||||||||||
Total
|
$
|
16,596
|
100.0
|
%
|
100.0
|
%
|
$
|
14,792
|
100.0
|
%
|
100.0
|
%
|
2023
|
2022
|
2021
|
||||||||||||||||||||||
Average
Amount
|
Average
Rate
|
Average
Amount
|
Average
Rate
|
Average
Amount
|
Average
Rate
|
|||||||||||||||||||
Deposit Type:
|
||||||||||||||||||||||||
Non-interest-Bearing Demand
|
$
|
783,005
|
—
|
$
|
805,738
|
—
|
$
|
764,676
|
—
|
|||||||||||||||
Interest-Bearing Demand (NOW)
|
$
|
421,493
|
0.38
|
%
|
$
|
441,543
|
0.08
|
%
|
$
|
420,481
|
0.06
|
%
|
||||||||||||
Savings and MMDAs
|
$
|
454,854
|
0.65
|
%
|
$
|
449,169
|
0.16
|
%
|
$
|
436,931
|
0.11
|
%
|
||||||||||||
Time
|
$
|
97,639
|
3.11
|
%
|
$
|
47,022
|
0.28
|
%
|
$
|
54,465
|
0.35
|
%
|
Three months or less
|
$
|
4,321
|
||
Over three months through six months
|
3,653
|
|||
Over six months through twelve months
|
13,277
|
|||
Over twelve months
|
5,072
|
|||
Total
|
$
|
26,323
|
2023
|
2022
|
2021
|
||||||||||||||||||||||
Average
Balance
|
Percent
|
Average
Balance
|
Percent
|
Average
Balance
|
Percent
|
|||||||||||||||||||
Non-interest-Bearing Demand
|
$
|
783,005
|
44.5
|
%
|
$
|
805,738
|
46.2
|
%
|
$
|
764,676
|
45.6
|
%
|
||||||||||||
Interest-Bearing Demand (NOW)
|
421,493
|
24.0
|
%
|
441,543
|
25.3
|
%
|
420,481
|
25.1
|
%
|
|||||||||||||||
Savings and MMDAs
|
454,854
|
25.9
|
%
|
449,169
|
25.8
|
%
|
436,931
|
26.1
|
%
|
|||||||||||||||
Time
|
97,639
|
5.6
|
%
|
47,022
|
2.7
|
%
|
54,465
|
3.2
|
%
|
|||||||||||||||
Total
|
$
|
1,756,991
|
100.0
|
%
|
$
|
1,743,472
|
100.0
|
%
|
$
|
1,676,553
|
100.0
|
%
|
2023 over 2022
|
||||||||
Amount
|
Percent
|
|||||||
Salaries and Employee Benefits
|
$
|
1,710
|
7.1
|
%
|
||||
Occupancy and Equipment
|
731
|
20.3
|
%
|
|||||
Data Processing
|
593
|
17.2
|
%
|
|||||
Stationery and Supplies
|
57
|
19.5
|
%
|
|||||
Advertising
|
(22
|
)
|
(4.4
|
%)
|
||||
Directors Fees
|
37
|
12.8
|
%
|
|||||
Amortization of core deposit intangible
|
829
|
—
|
||||||
Other Expense
|
640
|
9.5
|
%
|
|||||
Total
|
$
|
4,575
|
11.7
|
%
|
Maturities by period
|
||||||||||||||||||||
Commitments
|
Total
|
Less than 1 year
|
1-3 years
|
3-5 years
|
More than 5 years
|
|||||||||||||||
Commitments to extend credit
|
||||||||||||||||||||
Commercial
|
$
|
74,479
|
$
|
53,510
|
$
|
1,560
|
$
|
9,565
|
$
|
9,844
|
||||||||||
Commercial Real Estate
|
33,447
|
587
|
10,367
|
1,603
|
20,890
|
|||||||||||||||
Agriculture
|
27,279
|
20,978
|
2,776
|
958
|
2,567
|
|||||||||||||||
Residential Mortgage
|
1,953
|
—
|
—
|
—
|
1,953
|
|||||||||||||||
Residential Construction
|
4,931
|
2,068
|
—
|
—
|
2,863
|
|||||||||||||||
Consumer
|
45,312
|
13,342
|
6,522
|
6,044
|
19,404
|
|||||||||||||||
Commitments to sell loans
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Standby Letters of Credit
|
1,251
|
1,251
|
—
|
—
|
—
|
|||||||||||||||
Total
|
$
|
188,652
|
$
|
91,736
|
$
|
21,225
|
$
|
18,170
|
$
|
57,521
|
2023
|
2022
|
|||||||
Undisbursed loan commitments
|
$
|
187,401
|
$
|
205,610
|
||||
Standby letters of credit
|
1,251
|
1,930
|
||||||
Commitments to sell loans
|
—
|
—
|
||||||
$
|
188,652
|
$
|
207,540
|
ITEM 7A – |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Management’s Report on Internal Control over Financial Reporting
|
Page 55
|
Report of Independent Registered Public Accounting Firm (PCAOB ID #
) |
Page 56
|
Consolidated Balance Sheets as of December 31, 2023
and 2022
|
Page 58
|
Consolidated Statements of Income for Years Ended December 31, 2023 and 2022
|
Page 59
|
Consolidated Statements of Comprehensive Income (Loss) for Years Ended December 31, 2023 and 2022
|
Page 60
|
Consolidated Statement of Stockholders’ Equity for Years Ended December 31, 2023 and 2022
|
Page 61
|
Consolidated Statements of Cash Flows for Years Ended December 31, 2023 and 2022
|
Page 62
|
Notes to Consolidated Financial Statements
|
Page 63
|
/s/ Jeremiah Z. Smith
|
|
Jeremiah Z. Smith
|
|
President/Chief Executive Officer/Director
|
|
(Principal Executive Officer)
|
|
/s/ Kevin Spink
|
|
Kevin Spink
|
|
Executive Vice President/Chief Financial Officer
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
•
|
Evaluated the appropriateness of the Company’s assumptions and elections involved in the adoption of CECL, including the
methodology selected by the Company, the economic variables selected based on the correlation to historical charge-offs, and the forecasting assumptions used in the reasonable and supportable forecast adjustment.
|
•
|
Tested the mathematical accuracy and computation of the allowance for credit losses by re-performing or
independently calculating significant elements of the estimate, as well as testing completeness and accuracy of the data used in the calculation, application of the reasonable and supportable forecast, and qualitative and environmental
factors determined by management and used in the calculation.
|
•
|
Obtained management’s analysis and supporting documentation related to the qualitative and environmental factors
and tested whether the qualitative and environmental factors used in the calculation of the allowance for credit losses are supported by the documentation provided by management.
|
•
|
Obtained management’s analysis and supporting documentation related to the forecasted economic conditions, and
tested whether the forecasts used in the calculation of the allowance for credit losses are reasonable and supportable based on the analysis provided by management.
|
2023
|
2022
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Certificates of deposit
|
|
|
||||||
Investment securities – available-for-sale, at estimated fair value, net of allowance for credit losses of $
|
|
|
||||||
Loans (net of allowance for credit losses of $
|
|
|
||||||
Stock in Federal Home Loan Bank and other equity securities, at cost
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Core deposit intangible |
||||||||
Interest receivable and other assets
|
|
|
||||||
Total Assets
|
$
|
|
$
|
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Demand
|
$
|
|
$
|
|
||||
Interest-bearing transaction deposits
|
|
|
||||||
Savings and MMDAs
|
|
|
||||||
Time, $250,000 or less
|
|
|
||||||
Time, over $250,000
|
|
|
||||||
Total Deposits
|
|
|
||||||
Interest payable and other liabilities
|
|
|
||||||
Total Liabilities
|
|
|
||||||
Commitments and contingencies (Note 10 and 11)
|
|
|
||||||
Stockholders’ Equity:
|
||||||||
Common stock,
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss, net
|
(
|
)
|
(
|
)
|
||||
Total Stockholders’ Equity
|
|
|
||||||
Total Liabilities and Stockholders’ Equity
|
$
|
|
$
|
|
2023
|
2022
|
|||||||
Interest and dividend income:
|
||||||||
Interest and fees on loans
|
$
|
|
$
|
|
||||
Due from banks interest bearing accounts
|
|
|
||||||
Investment securities:
|
||||||||
Taxable
|
|
|
||||||
Non-taxable
|
|
|
||||||
Other earning assets
|
|
|
||||||
Total interest and dividend income
|
|
|
||||||
Interest expense:
|
||||||||
Time deposits over $250,000
|
|
|
||||||
Other deposits
|
|
|
||||||
Total interest expense
|
|
|
||||||
Net interest income
|
|
|
||||||
Provision for credit losses
|
|
|
||||||
Net interest income after provision for credit losses
|
|
|
||||||
Non-interest income:
|
||||||||
Service charges on deposit accounts
|
|
|
||||||
Losses on sales of available-for-sale securities
|
(
|
)
|
(
|
)
|
||||
Gains on sales of loans held-for-sale
|
|
|
||||||
Debit card income
|
|
|
||||||
Gain on bargain purchase
|
||||||||
Other income
|
|
|
||||||
Total non-interest income
|
|
|
||||||
Non-interest expenses:
|
||||||||
Salaries and employee benefits
|
|
|
||||||
Occupancy and equipment
|
|
|
||||||
Data processing
|
|
|
||||||
Stationery and supplies
|
|
|
||||||
Advertising
|
|
|
||||||
Director fees
|
|
|
||||||
Amortization of core deposit
intangible
|
||||||||
Other expense
|
|
|
||||||
Total non-interest expenses
|
|
|
||||||
Income before provision for income tax
|
|
|
||||||
Provision for income tax
|
(
|
)
|
(
|
)
|
||||
Net income
|
$
|
|
$
|
|
||||
Basic income per share
|
$
|
|
$
|
|
||||
Diluted income per share
|
$
|
|
$
|
|
2023
|
2022
|
|||||||
Net income
|
$
|
|
$
|
|
||||
Other comprehensive income (loss), net of tax:
|
||||||||
Unrealized holding gains (losses) on securities arising during the
current period, net of tax effect of $
|
|
(
|
)
|
|||||
Reclassification adjustment due to losses realized on sales of
securities, net of tax effect of $
|
|
|
||||||
Officers’ retirement plan equity adjustments, net of tax effect
of $
|
|
|
||||||
Directors’ retirement plan equity adjustments, net of tax effect of $
|
|
|
||||||
Total other comprehensive income (loss), net of tax effect of $
|
|
(
|
)
|
|||||
Comprehensive income (loss)
|
$
|
|
$
|
(
|
)
|
Common Stock
|
Additional
Paid-in
|
Retained |
Accumulated
Other
Comprehensive
|
|||||||||||||||||||||
Shares
|
Amounts
|
Capital
|
Earnings
|
Income/(Loss)
|
Total
|
|||||||||||||||||||
Balance at December 31, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Net income
|
|
|
||||||||||||||||||||||
Other comprehensive loss, net of tax
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Stock dividend adjustment
|
|
|
(
|
)
|
|
|||||||||||||||||||
|
|
|
(
|
)
|
|
|||||||||||||||||||
Cash in lieu of fractional shares
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Stock-based compensation
|
|
|
||||||||||||||||||||||
Common shares issued related to restricted stock grants and ESPP, net of restricted stock reversals
|
|
|
|
|||||||||||||||||||||
Stock options exercised, net |
||||||||||||||||||||||||
Stock repurchase and retirement
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Balance at December 31, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Cumulative change from adoption of on January 1, 2023
|
( |
) | ( |
) | ||||||||||||||||||||
Balance at January 1, 2023 (as adjusted for adoption of accounting standard)
|
( |
) | ||||||||||||||||||||||
Net income
|
|
|
||||||||||||||||||||||
Other comprehensive income, net of tax
|
|
|
||||||||||||||||||||||
Stock dividend adjustment
|
|
|
(
|
)
|
|
|||||||||||||||||||
|
|
|
(
|
)
|
|
|||||||||||||||||||
Cash in lieu of fractional shares
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Stock-based compensation
|
|
|
||||||||||||||||||||||
Common shares issued related to restricted stock grants and ESPP, net of restricted stock reversals
|
|
|
|
|||||||||||||||||||||
Stock options exercised, net
|
|
|
|
|||||||||||||||||||||
Stock repurchase and retirement |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Balance at December 31, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for credit losses
|
|
|
||||||
Amortization of core deposit intangible
|
||||||||
Stock-based compensation
|
|
|
||||||
Depreciation and amortization of bank premises and equipment
|
|
|
||||||
Accretion and amortization of securities, net
|
|
|
||||||
Net loss on sale/call of available-for-sale securities
|
|
|
||||||
Gain on sale of loans held-for-sale
|
(
|
)
|
(
|
)
|
||||
Benefit for deferred income taxes
|
(
|
)
|
(
|
)
|
||||
Valuation adjustment on mortgage servicing rights
|
|
(
|
)
|
|||||
Proceeds from sales of loans held-for-sale
|
|
|
||||||
Originations of loans held-for-sale
|
(
|
)
|
(
|
)
|
||||
Increase (decrease) in deferred loan origination fees and costs, net
|
|
(
|
)
|
|||||
Amortization of operating lease right-of-use asset
|
|
|
||||||
Gain on bargain purchase
|
( |
) | ||||||
Increase in interest receivable and other assets
|
(
|
)
|
(
|
)
|
||||
Increase in interest payable and other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Proceeds from maturities of available-for-sale securities
|
|
|
||||||
Proceeds from sales of available-for-sale securities
|
|
|
||||||
Principal repayments on available-for-sale securities
|
|
|
||||||
Purchase of available-for-sale securities
|
(
|
)
|
(
|
)
|
||||
Proceeds from maturities of certificates of deposit
|
||||||||
Proceeds from sales of certificates of deposit
|
||||||||
Purchase of certificates of deposit
|
( |
) | ( |
) | ||||
Purchases of stock in Federal Home Loan Bank and other equity securities, at cost
|
(
|
)
|
(
|
)
|
||||
Net increase in loans
|
(
|
)
|
(
|
)
|
||||
Purchases of bank premises and equipment, net
|
(
|
)
|
(
|
)
|
||||
Cash and cash equivalents acquired in acquisition
|
||||||||
Net cash provided by (used in) investing activities
|
|
(
|
)
|
|||||
Cash flows from financing activities:
|
||||||||
Net decrease in deposits
|
(
|
)
|
(
|
)
|
||||
Cash dividends paid in lieu of fractional shares
|
(
|
)
|
(
|
)
|
||||
Common stock issued
|
|
|
||||||
Repurchases of common stock
|
( |
) | ( |
) | ||||
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
||||
Net decrease in cash and cash equivalents
|
(
|
)
|
(
|
)
|
||||
Cash and cash equivalents at beginning of year
|
|
|
||||||
Cash and cash equivalents at end of year
|
$
|
|
$
|
|
(1) |
Summary of Significant Accounting Policies
|
(a) |
Cash Equivalents
|
(b) |
Investment Securities and Allowance for Credit Losses
|
(c) |
Federal Home Loan Bank Stock and Other Equity Securities, at Cost
|
(d) |
Loans and Allowance for Credit Losses
|
(e) |
Loans Held-for-Sale
|
(f) |
Premises and Equipment
|
Buildings and improvements
|
|
Furniture and equipment
|
|
(g) |
Other Real Estate Owned
|
(h) |
Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of
|
(i) |
Pension Benefit Plans
|
(j) |
Revenue from Contracts with Customers
|
(k) |
Gain or Loss on Sale of Loans and Servicing Rights
|
2023
|
2022
|
|||||||
Constant prepayment rate
|
|
%
|
|
%
|
||||
Discount rate
|
|
%
|
|
%
|
||||
Weighted average life (years)
|
|
|
(l) |
Income Taxes
|
(m) |
Share Based Compensation
|
(n) |
Earnings Per Share (“EPS”)
|
(o) |
Advertising Costs
|
(p) |
Comprehensive Income
|
(q) |
Stock Dividend
|
(r) |
Segment Reporting
|
(s) |
Business Combinations
|
(t) |
Impact of Recently Issued Accounting Standards
|
(2) |
Cash and Due from Banks
|
(3) |
Investment Securities
|
Amortized
cost
|
Unrealized
gains
|
Unrealized
losses
|
Estimated
fair value
|
ACL |
||||||||||||||||
Investment securities available-for-sale:
|
||||||||||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$ |
||||||||||
Securities of U.S. government agencies and corporations
|
|
|
(
|
)
|
|
|||||||||||||||
Obligations of states and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||||||
Collateralized mortgage obligations
|
|
|
(
|
)
|
|
|||||||||||||||
Mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||||||
Total debt securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$ |
Amortized
cost
|
Unrealized
gains
|
Unrealized
losses
|
Estimated
fair value
|
|||||||||||||
Investment securities available-for-sale:
|
||||||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Securities of U.S. government agencies and corporations
|
|
|
(
|
)
|
|
|||||||||||
Obligations of states and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||
Collateralized mortgage obligations
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Total debt securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Amortized
cost
|
Estimated
fair value
|
|||||||
Maturity in years:
|
||||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one year through five years
|
|
|
||||||
Due after five years through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
Subtotal
|
|
|
||||||
Mortgage-backed securities and Collateralized mortgage obligations
|
|
|
||||||
Total
|
$
|
|
$
|
|
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
losses
|
Fair Value
|
Unrealized
losses
|
Fair Value
|
Unrealized
losses
|
|||||||||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
||||||||||
Securities of U.S. government agencies and corporations
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Obligations of states and political subdivisions
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Collateralized mortgage obligations
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Mortgage-backed securities
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
losses
|
Fair Value
|
Unrealized
losses
|
Fair Value
|
Unrealized
losses
|
|||||||||||||||||||
U.S. Treasury Securities
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||||||
Securities of U.S. government agencies and corporation
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Obligations of states and political subdivision
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Collateralized mortgage obligations
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Mortgage-backed securities
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
(4) |
Loans and Allowance for Credit Losses
|
2023
|
2022
|
|||||||
Commercial
|
$
|
|
$
|
|
||||
Commercial Real Estate
|
|
|
||||||
Agriculture
|
|
|
||||||
Residential Mortgage
|
|
|
||||||
Residential Construction
|
|
|
||||||
Consumer
|
|
|
||||||
|
|
|||||||
Allowance for credit losses
|
(
|
)
|
(
|
)
|
||||
Net deferred origination fees and costs
|
|
|
|
|||||
Loans, net
|
$
|
|
$
|
|
Allowance for Credit Losses – Year ended December 31, 2023
|
||||||||||||||||||||||||
($ in thousands)
|
Beginning balance
|
Adoption of CECL
|
Charge-offs
|
Recoveries
|
Provision
(Recovery)
|
Ending Balance
|
||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||
Commercial Real Estate
|
|
(
|
)
|
|
|
|
|
|||||||||||||||||
Agriculture
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||
Residential Mortgage
|
|
|
(
|
)
|
|
|
|
|||||||||||||||||
Residential Construction
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||
Consumer
|
|
|
(
|
)
|
|
(
|
)
|
|
||||||||||||||||
Allowance for credit losses on loans
|
|
|
(
|
)
|
|
|
|
|||||||||||||||||
Reserve for unfunded commitments
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|
Commercial
|
Commercial
Real Estate
|
Agriculture
|
Residential
Mortgage
|
Residential
Construction
|
Consumer
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Balance as of December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Provision for loan losses
|
(
|
)
|
|
|
|
|
|
(
|
)
|
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Charge-offs
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Net charge-offs
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||
Ending Balance
|
||||||||||||||||||||||||||||||||
Period-end amount allocated to:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
||||||||||||||||||||||||||||||||
Loans collectively evaluated for impairment
|
||||||||||||||||||||||||||||||||
Balance as of December 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Commercial
|
Commercial
Real Estate
|
Agriculture
|
Residential Mortgage
|
Residential Construction
|
Consumer
|
Total
|
|||||||||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2023
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
Secured by 1-4
Family
Residential Properties-1st
lien
|
Secured by 1-4
Family
Residential
Properties-junior
lien
|
Secured by 1-4
Family
Residential
Properties-
revolving
|
Commercial
|
Construction
and land
development
|
Secured by
farmland
|
Agriculture
production
loans
|
Total
|
||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Commercial Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Agriculture
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Residential Mortgage
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Residential Construction
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2022
|
||||||||||||||||||||||||||||||||
($ in thousands)
|
Secured by 1-4
Family
Residential Properties-1st
lien
|
Secured by 1-4
Family
Residential
Properties-junior
lien |
Secured by 1-4
Family
Residential
Properties-
revolving
|
Commercial
|
Construction
and land
development
|
Secured by
farmland
|
Agriculture
production
loans
|
Total
|
||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Commercial Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Agriculture
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Residential Mortgage
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Residential Construction
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
($ in thousands) |
30-59 days
Past Due
&
Accruing
|
60-89 days
Past Due
&
Accruing
|
90 days or
More Past
Due &
Accruing
|
Nonaccrual
Loans
|
Total Past
Due
&
Nonaccrual
Loans
|
Current &
Accruing
Loans
|
Total
Loans
|
Nonaccrual
loans with
No ACL
|
||||||||||||||||||||||||
December 31, 2023
|
||||||||||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$
|
|
$ | |||||||||||||||||||
Commercial Real Estate
|
|
|
|
|
|
|||||||||||||||||||||||||||
Agriculture
|
|
|
|
|
|
|||||||||||||||||||||||||||
Residential Mortgage
|
|
|
|
|
|
|||||||||||||||||||||||||||
Residential Construction
|
|
|
|
|
|
|||||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$
|
|
$ | |||||||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$
|
|
$ | |||||||||||||||||||
Commercial Real Estate
|
|
|
|
|
|
|||||||||||||||||||||||||||
Agriculture
|
|
|
|
|
|
|||||||||||||||||||||||||||
Residential Mortgage
|
|
|
|
|
|
|||||||||||||||||||||||||||
Residential Construction
|
|
|
|
|
|
|||||||||||||||||||||||||||
Consumer
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$
|
|
$ |
Unpaid
Contractual
Principal
Balance
|
Recorded
Investment
with no
Allowance
|
Recorded
Investment
with
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
||||||||||||||||
December 31, 2022
|
||||||||||||||||||||
Commercial
|
$
|
$
|
$
|
$
|
$
|
|||||||||||||||
Commercial Real Estate
|
||||||||||||||||||||
Agriculture
|
||||||||||||||||||||
Residential Mortgage
|
||||||||||||||||||||
Residential Construction
|
||||||||||||||||||||
Consumer
|
||||||||||||||||||||
Total
|
$
|
$
|
$
|
$
|
$
|
December 31, 2022
|
||||||||
Average Recorded
Investment
|
Interest Income
Recognized
|
|||||||
Commercial
|
$
|
$
|
||||||
Commercial Real Estate
|
||||||||
Agriculture
|
||||||||
Residential Mortgage
|
||||||||
Residential Construction
|
||||||||
Consumer
|
||||||||
Total
|
$
|
$
|
($ in thousands)
|
Term Extension
|
Combination Term Extension
and Interest Rate Reduction
|
Total Class of Financing
Receivable
|
|||||||||
|
||||||||||||
Commercial
|
$
|
|
$
|
|
|
%
|
||||||
Commercial Real Estate
|
|
|
|
%
|
||||||||
Agriculture
|
|
|
|
%
|
||||||||
Residential Mortgage
|
|
|
|
|||||||||
Residential Construction
|
|
|
|
%
|
||||||||
Consumer
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
|
%
|
($ in thousands)
|
Weighted-Average
Interest Rate
Reduction
|
Weighted-Average
Term Extension (in
months)
|
||||||
Commercial
|
|
%
|
$
|
|
||||
Commercial Real Estate
|
|
%
|
|
|||||
Agriculture
|
|
|
||||||
Residential Mortgage
|
|
|
||||||
Residential Construction
|
|
|
||||||
Consumer
|
|
|
||||||
Total
|
|
%
|
$
|
|
Year Ended December 31, 2022
|
||||||||||||
Number of
Contracts
|
Pre-
modification
outstanding
recorded
investment
|
Post-
modification
outstanding
recorded
investment
|
||||||||||
Consumer
|
|
$
|
|
$
|
|
|||||||
Total
|
|
$
|
|
$
|
|
(in thousands) |
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023
|
||||||||||||||||||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Revolving
Loans
Amortized
Cost Basis
|
Total
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful/Loss
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Commercial loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Year-to-date Period Charge-offs
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||
Year-to-date Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Year-to-date Net Charge-offs
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial Real Estate
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful/Loss
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Commercial Real Estate loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Year-to-date Charge-offs
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Year-to-date Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Year-to-date Net Charge-offs
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Agriculture
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
|||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful/Loss
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Agriculture loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Year-to-date Charge-offs
|
(
|
)
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||||
Year-to-date Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Year-to-date Net Charge-offs
|
|
|
|
|
|
|
|
|
(in thousands) |
||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year - As of December 31, 2023
|
||||||||||||||||||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Revolving
Loans
Amortized
Cost Basis
|
Total
|
||||||||||||||||||||||||
Residential Mortgage
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful/Loss
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Residential Mortgage loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Year-to-date Charge-offs
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||||||
Year-to-date Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Year-to-date Net Charge-offs
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Residential Construction
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful/Loss
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Residential Construction loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Year-to-date Charge-offs
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Year-to-date Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Year-to-date Net Charge-offs
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful/Loss
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Consumer loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Year-to-date Charge-offs
|
(
|
)
|
|
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||
Year-to-date Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Year-to-date Net Charge-offs
|
(
|
)
|
|
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total Loans
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special Mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful/Loss
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total Loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Year-to-date Charge-offs
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||||
Year-to-date Recoveries
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Year-to-date Net Charge-offs
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Loss
|
Total
|
||||||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial Real Estate
|
|
|
|
|
|
|
||||||||||||||||||
Agriculture
|
|
|
|
|
|
|
||||||||||||||||||
Residential Mortgage
|
|
|
|
|
|
|
||||||||||||||||||
Residential Construction
|
|
|
|
|
|
|
||||||||||||||||||
Consumer
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(5) |
Mortgage Operations
|
December 31,
2022
|
Additions
|
Reductions
|
December 31,
2023
|
|||||||||||||
Mortgage servicing rights
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Valuation allowance
|
|
|
|
|
||||||||||||
Mortgage servicing rights, net of valuation allowance
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
December 31,
2021
|
Additions
|
Reductions
|
December 31,
2022
|
|||||||||||||
Mortgage servicing rights
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Valuation allowance
|
(
|
)
|
|
|
|
|||||||||||
Mortgage servicing rights, net of valuation allowance
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(6) |
Premises and Equipment
|
2023
|
2022
|
|||||||
Land
|
$
|
|
$
|
|
||||
Buildings
|
|
|
||||||
Furniture and equipment
|
|
|
||||||
Leasehold improvements
|
|
|
||||||
|
|
|||||||
Less accumulated depreciation and amortization
|
|
|
||||||
$
|
|
$
|
|
(7) |
Interest Receivable and Other Assets
|
2023
|
2022
|
|||||||
Interest receivable
|
$
|
|
$
|
|
||||
Mortgage servicing rights asset (see Note 5)
|
|
|
||||||
Officer’s life insurance
|
|
|
||||||
Deferred tax assets, net (see Note 18)
|
|
|
||||||
Operating lease right-of-use asset (see Note 9)
|
|
|
||||||
Prepaid and other
|
|
|
||||||
$
|
|
$
|
|
(8) |
Short-Term and Long-Term Borrowings
|
(9) |
Leases
|
(in thousands)
|
2023
|
|||
2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
2029 and thereafter
|
|
|||
Total lease payments
|
|
|||
Less: interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
(in thousands)
|
2023
|
2022
|
||||||
Cash paid for amounts included in the measurement of lease liabilities
|
||||||||
Operating cash flows from operating leases
|
$
|
|
$
|
|
||||
Right-of-use assets obtained in exchange for new operating lease liabilities
|
$
|
|
$
|
|
2023
|
2022
|
|||||||
Weighted-average remaining lease term - operating leases, in years
|
|
|
||||||
Weighted-average discount rate - operating leases
|
|
%
|
|
%
|
(10) |
Financial Instruments with Off-Balance Sheet Risk
|
2023
|
2022
|
|||||||
Undisbursed loan commitments
|
$
|
|
$
|
|
||||
Standby letters of credit
|
|
|
||||||
$
|
|
$
|
|
(11) |
Commitments and Contingencies
|
Year ending December 31:
|
||||
2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
Thereafter
|
||||
$
|
|
(12) |
Capital Adequacy and Restriction on Dividends
|
The Bank
|
||||||||||||||||||||||||
2023
|
2022
|
Adequately
Capitalized
|
Well
Capitalized
|
|||||||||||||||||||||
Capital
|
Ratio
|
Capital
|
Ratio
|
Ratio*
|
Ratio
|
|||||||||||||||||||
Tier 1 Leverage Capital (to Average Assets)
|
$
|
|
|
%
|
$
|
|
|
%
|
|
%
|
|
%
|
||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
|
|
%
|
|
|
%
|
|
%
|
|
%
|
||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
|
|
%
|
|
|
%
|
|
%
|
|
%
|
||||||||||||||
Total Risk-Based Capital (to Risk-Weighted Assets)
|
|
|
%
|
|
|
%
|
|
%
|
|
%
|
(13) |
Fair Value Measurement
|
December 31, 2023
|
Total
|
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities of U.S. government agencies and corporations
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
||||||||||||
Total investments at fair value
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2022
|
Total
|
Quoted
Prices in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities of U.S. government agencies and corporations
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
||||||||||||
Total investments at fair value
|
$
|
|
$
|
|
$
|
|
$
|
|
2023
|
2022
|
|||||||||||||||||||
Level
|
Carrying
amount
|
Fair value
|
Carrying
amount
|
Fair value
|
||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
1
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Certificates of deposit
|
2
|
|
|
|
|
|||||||||||||||
Stock in Federal Home Loan Bank and other equity securities, at cost
|
3
|
|
|
|
|
|||||||||||||||
Loans receivable:
|
||||||||||||||||||||
Net loans
|
3
|
|
|
|
|
|||||||||||||||
Interest receivable
|
2
|
|
|
|
|
|||||||||||||||
Mortgage servicing rights
|
3
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Time deposits
|
3
|
|
|
|
|
|||||||||||||||
Interest payable
|
2
|
|
|
|
|
(14) |
Outstanding Shares and Earnings Per Share
|
2023
|
2022
|
|||||||
Basic earnings per share:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Weighted average common shares outstanding
|
|
|
||||||
Basic earnings per share
|
$
|
|
$
|
|
||||
Diluted earnings per share:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Weighted average common shares outstanding
|
|
|
||||||
Effect of dilutive shares
|
|
|
||||||
Adjusted weighted average common shares outstanding
|
|
|
||||||
Diluted earnings per share
|
$
|
|
$
|
|
(15) |
Stock Compensation Plans
|
Stock Options
|
||||||||
Number
of shares
|
Weighted
average
exercise price
|
|||||||
Balance at December 31, 2022
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Exercised
|
(
|
)
|
|
|||||
Cancelled/Forfeited
|
|
|
||||||
Balance at December 31, 2023
|
|
$
|
|
Number of
Shares
|
Weighted
Average
Exercise Price
|
Aggregate
Intrinsic
Value
|
Weighted
Average
Remaining
Contractual
Term
|
|||||||||||||
Options exercised
|
|
$
|
|
$
|
|
—
|
||||||||||
Stock options outstanding and expected to vest:
|
|
$
|
|
$
|
|
|
||||||||||
Stock options vested and currently exercisable:
|
|
$
|
|
$
|
|
|
2023
|
2022
|
|||||||
Risk-Free Interest Rate
|
|
|
%
|
|||||
Expected Dividend Yield
|
|
|
%
|
|||||
Expected Life in Years
|
—
|
|
||||||
Expected Price Volatility
|
|
|
%
|
Restricted Stock Awards
|
||||||||
Number of
shares
|
Weighted
average
grant date
fair value
|
|||||||
Balance at December 31, 2022
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Cancelled/Forfeited
|
(
|
)
|
|
|||||
Balance at December 31, 2023
|
|
$
|
|
(16) |
Profit Sharing Plan
|
(17) |
Supplemental Compensation Plans
|
2023
|
2022
|
|||||||
Change in benefit obligation
|
||||||||
Benefit obligation at beginning of year
|
$
|
|
$
|
|
||||
Service cost
|
|
|
||||||
Interest cost
|
|
|
||||||
Plan gain
|
(
|
)
|
(
|
)
|
||||
Benefits paid
|
(
|
)
|
(
|
)
|
||||
Benefit obligation at end of year
|
$
|
|
$
|
|
||||
Change in plan assets
|
||||||||
Employer contribution
|
$
|
|
$
|
|
||||
Benefits paid
|
(
|
)
|
(
|
)
|
||||
Fair value of plan assets at end of year
|
$
|
|
$
|
|
||||
Reconciliation of funded status
|
||||||||
Funded status
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Unrecognized net plan loss
|
|
|
||||||
Unrecognized prior service cost
|
|
|
||||||
Net amount recognized
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Amounts recognized in the consolidated balance sheets consist of:
|
||||||||
Accrued benefit liability
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Accumulated other comprehensive loss
|
|
|
||||||
Net amount recognized
|
$
|
(
|
)
|
$
|
(
|
)
|
For the Year ended December 31,
|
||||||||
2023
|
2022
|
|||||||
Components of net periodic benefit cost
|
||||||||
Service cost
|
$
|
|
$
|
|
||||
Interest cost
|
|
|
||||||
Amortization of prior service cost
|
|
|
||||||
Recognized actuarial loss
|
|
|
||||||
Net periodic benefit cost
|
|
|
||||||
Additional Information
|
||||||||
Minimum benefit obligation at year end
|
$
|
|
$
|
|
||||
Decrease in minimum liability included in other
comprehensive loss
|
$
|
(
|
)
|
$
|
(
|
)
|
Assumptions used to determine benefit obligations at December 31
|
2023
|
2022
|
||||||
Discount rate used to determine net periodic benefit cost for years ended December 31
|
|
%
|
|
%
|
||||
Discount rate used to determine benefit obligations at December 31
|
|
%
|
|
%
|
||||
Future salary increases
|
|
%
|
|
%
|
Year ending December 31,
|
Pension Benefits
|
|||
2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
2029-2033
|
|
2023
|
2022
|
|||||||
Change in benefit obligation
|
||||||||
Benefit obligation at beginning of year
|
$
|
|
$
|
|
||||
Service cost
|
|
|
||||||
Interest cost
|
|
|
||||||
Plan gain
|
(
|
)
|
(
|
)
|
||||
Benefits paid
|
(
|
)
|
(
|
)
|
||||
Benefit obligation at end of year
|
$
|
|
$
|
|
||||
Change in plan assets
|
||||||||
Employer contribution
|
$
|
|
$
|
|
||||
Benefits paid
|
(
|
)
|
(
|
)
|
||||
Fair value of plan assets at end of year
|
$
|
|
$
|
|
||||
Reconciliation of funded status
|
||||||||
Funded status
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Unrecognized net plan gain
|
(
|
)
|
(
|
)
|
||||
Net amount recognized
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Amounts recognized in the statement of financial position consist of:
|
||||||||
Accrued benefit liability
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Accumulated other comprehensive gain
|
(
|
)
|
(
|
)
|
||||
Net amount recognized
|
$
|
(
|
)
|
$
|
(
|
)
|
For the Year Ended December 31,
|
||||||||
2023
|
2022
|
|||||||
Components of net periodic benefit cost
|
||||||||
Service cost
|
$
|
|
$
|
|
||||
Interest cost
|
|
|
||||||
Recognized actuarial gain
|
(
|
)
|
|
|||||
Net periodic benefit cost
|
|
|
||||||
Additional Information
|
||||||||
Minimum benefit obligation at year end
|
$
|
|
$
|
|
||||
Decrease in minimum liability included in other comprehensive loss
|
$
|
(
|
)
|
$
|
(
|
)
|
Assumptions used to determine benefit obligations at December 31
|
2023
|
2022
|
||||||
Discount rate used to determine net periodic benefit cost for years ended December 31
|
|
%
|
|
%
|
||||
Discount rate used to determine benefit obligations at December 31
|
|
%
|
|
%
|
Year ending December 31,
|
Pension Benefits
|
|||
2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
2029-2033
|
|
(18) |
Income Taxes
|
2023
|
2022
|
|||||||
Current:
|
||||||||
Federal
|
$
|
|
$
|
|
||||
State
|
|
|
||||||
|
|
|||||||
Deferred:
|
||||||||
Federal
|
(
|
)
|
(
|
)
|
||||
State
|
(
|
)
|
(
|
)
|
||||
(
|
)
|
(
|
)
|
|||||
$
|
|
$
|
|
2023
|
2022
|
|||||||
Deferred tax assets:
|
||||||||
Allowance for credit losses
|
$
|
|
$
|
|
||||
Deferred compensation
|
|
|
||||||
Retirement compensation
|
|
|
||||||
Stock option compensation
|
|
|
||||||
Postretirement benefits
|
|
|
||||||
Current state franchise taxes
|
|
|
||||||
Non-accrual interest
|
|
|
||||||
Sale-leaseback
|
|
|
||||||
Lease liability
|
|
|
||||||
Investment
securities unrealized loss
|
||||||||
Other
|
|
|
||||||
Deferred tax assets
|
|
|
||||||
Deferred tax liabilities:
|
||||||||
Fixed assets depreciation
|
|
|
||||||
FHLB dividends
|
|
|
||||||
Tax credit – loss on pass-through
|
|
|
||||||
Deferred loan costs
|
|
|
||||||
Mortgage servicing rights
|
|
|
||||||
Right of Use Asset
|
|
|
||||||
Postretirement benefits
|
||||||||
Other
|
|
|
||||||
Total deferred tax liabilities
|
|
|
||||||
Net deferred tax assets (see Note 7)
|
$
|
|
$
|
|
2023
|
2022
|
|||||||
Federal statutory income tax rate
|
|
%
|
|
%
|
||||
Increase (decrease) in tax rate due to:
|
||||||||
State franchise tax, net of federal benefit
|
|
%
|
|
%
|
||||
Reduction for tax exempt interest
|
(
|
)%
|
(
|
)%
|
||||
Cash surrender value of life insurance
|
(
|
)%
|
(
|
)%
|
||||
Other
|
(
|
)%
|
|
%
|
||||
Effective income tax rate
|
|
%
|
|
%
|
(19) |
Accumulated Other Comprehensive Income/(Loss)
|
Unrealized Gains
(Losses) on
Securities
|
Officers’
retirement plan
|
Directors’
retirement
plan
|
Accumulated
Other
Comprehensive
Income/(loss)
|
|||||||||||||
Balance as of December 31, 2022
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||
Current period other comprehensive income, net of tax
|
|
|
|
|
||||||||||||
Balance as of December 31, 2023
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Unrealized Gains
(Losses) on
Securities
|
Officers’
retirement
plan
|
Directors’
retirement
plan
|
Accumulated
Other
Comprehensive
Income/(loss)
|
|||||||||||||
Balance as of December 31, 2021
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Current period other comprehensive income (loss), net of tax
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balance as of December 31, 2022
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
(20) |
Supplemental Consolidated Statements of Cash Flows Information
|
2023
|
2022
|
|||||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest
|
$
|
|
$
|
|
||||
Income taxes
|
|
|
||||||
Supplemental disclosure of non-cash investing and financing activities:
|
||||||||
Stock dividend distributed
|
|
|
||||||
Fair value adjustment of securities available for sale, net of tax of $
|
|
(
|
)
|
|||||
Recognition of right-of-use assets obtained in exchange for operating lease liabilities
|
|
|
||||||
Market value of shares tendered in-lieu of cash to pay for exercise of options
|
||||||||
Non-cash assets acquired (liabilities assumed) in acquisition: |
||||||||
Total assets acquired
|
||||||||
Total liabilities assumed
|
( |
) |
(21) |
Parent Company Financial Information
|
Balance Sheets
|
2023
|
2022
|
||||||
Assets
|
||||||||
Cash
|
$
|
|
$
|
|
||||
Investment in wholly-owned subsidiary
|
|
|
||||||
Interest receivable and other assets
|
||||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and stockholders’ equity
|
||||||||
Liabilities
|
|
|
||||||
Stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
Statements of Income
|
2023
|
2022
|
||||||
Other operating expenses
|
(
|
)
|
(
|
)
|
||||
Income tax benefit
|
|
|
||||||
Loss before undistributed earnings of subsidiary
|
(
|
)
|
(
|
)
|
||||
Equity in undistributed earnings of subsidiary
|
|
|
||||||
Net income
|
$
|
|
$
|
|
Statements of Cash Flows
|
2023
|
2022
|
||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Stock-based compensation
|
|
|
||||||
Increase in interest receivable and other assets
|
( |
) | ||||||
Equity in undistributed earnings of subsidiary
|
(
|
)
|
(
|
)
|
||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from financing activities:
|
||||||||
Common stock issued
|
|
|
||||||
Stock repurchases |
( |
) | ( |
) | ||||
Cash dividends paid in lieu of fractional shares
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
(
|
)
|
(
|
)
|
||||
Net change in cash
|
|
|
||||||
Cash at beginning of year
|
|
|
||||||
Cash at end of year
|
$
|
|
$
|
|
(22) |
Related Party Transactions
|
2023
|
2022
|
|||||||
Outstanding balance, beginning of year
|
$
|
|
$
|
|
||||
Credit granted
|
|
|
||||||
Repayments / Reductions
|
(
|
)
|
(
|
)
|
||||
Outstanding balance, end of year
|
$
|
|
$
|
|
(23) |
Business Combinations
|
|
Acquired Branches
January 20, 2023
|
|||
Fair value of consideration received:
|
||||
Cash consideration
|
$
|
|
||
Total fair value of consideration received
|
|
|||
Assets acquired:
|
||||
Cash and cash equivalents
|
|
|||
Loans
|
|
|||
Premises and equipment
|
|
|||
Core deposit intangible
|
|
|||
Other assets
|
|
|||
Total assets acquired
|
|
|||
Liabilities assumed:
|
||||
Deposits
|
|
|||
Other liabilities
|
|
|||
Total liabilities assumed
|
|
|||
Total net liabilities assumed
|
|
|||
Bargain purchase gain recognized
|
$
|
|
|
Acquired Branches
January 20, 2023
|
|||
Cash consideration received
|
$
|
|
||
Less:
|
||||
Cost basis of net liabilities assumed
|
(
|
)
|
||
Fair Value Adjustments:
|
||||
Loans
|
(
|
)
|
||
Premises and equipment
|
|
|||
Core deposit intangible
|
|
|||
Deposits
|
|
|||
Bargain purchase gain recognized
|
$
|
|
|
Year ended
December 31, 2023
|
Year ended
December 31, 2022
|
||||||
Summarized proforma income statement data:
|
||||||||
Net interest income
|
$
|
|
$
|
|
||||
Provision for credit losses
|
|
|
||||||
Non-interest income
|
|
|
||||||
Non-interest expense
|
|
|
||||||
Income before taxes
|
|
|
||||||
Provision for income taxes
|
|
|
||||||
Net income
|
$
|
|
$
|
|
||||
Basic earnings per share
|
$
|
|
$
|
|
||||
Diluted earnings per share
|
$
|
|
$
|
|
ITEM 10 – |
DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
|
ITEM 11 – |
EXECUTIVE COMPENSATION
|
ITEM 12 – |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Plan category
|
Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights
|
Weighted-average
exercise price of
outstanding
options, warrants
and rights
|
Number of
securities to be
issued upon
vesting of
restricted stock
|
Weighted-
average grant
date fair value
of restricted
stock
|
Number of securities
remaining available for future
issuance under equity
compensation plans
(excluding securities reflected
in the first column)
|
|||||||||||||||
Equity compensation plans approved by security holders
|
642,803
|
$
|
8.40
|
274,309
|
$
|
8.71
|
455,645
|
|||||||||||||
Equity compensation plans not approved by security holders
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Total
|
642,803
|
$
|
8.40
|
274,309
|
$
|
8.71
|
455,645
|
ITEM 13 – |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
|
ITEM 14 – |
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15 – |
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
Exhibit
|
||
Exhibit Number
|
||
3.01
|
Amended Articles of Incorporation of the Company – incorporated herein by reference to Exhibit 3.01 to the
Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023
|
|
3.2
|
Amended and Restated Bylaws of the Company (as amended) – incorporated herein by reference to Exhibit 3.1 to the
Company’s Current Report on Form 8-K dated January 27, 2022
|
|
4.1
|
Description of the Registrant’s Common Stock – incorporated herein by reference to Exhibit 4.1 to the Company’s
Annual Report for the year ended December 31, 2019
|
|
10.1
|
First Northern Community Bancorp 2000 Stock Option Plan – incorporated herein by reference to Exhibit
4.1 of the Company’s Registration Statement on Form S-8 dated May 25, 2000*
|
|
10.2
|
First Northern Community Bancorp Outside Directors 2000 Non-statutory Stock Option Plan – incorporated
herein by reference to Exhibit 4.3 of the Company’s Registration Statement dated Form S-8 on May 25, 2000*
|
|
10.3
|
Amended First Northern Community Bancorp Employee Stock Purchase Plan – incorporated herein by reference to Appendix B
of the Company’s Definitive Proxy Statement on Schedule 14A for its 2006 Annual Meeting of Shareholders*
|
|
10.4
|
First Northern Community Bancorp 2000 Stock Option Plan Forms “Incentive Stock Option Agreement” and “Notice
of Exercise of Stock Option” – incorporated herein by reference to Exhibit 4.2 of the Company’s Registration Statement on Form S-8 dated May 25, 2000*
|
|
10.5
|
First Northern Community Bancorp 2000 Outside Directors 2000 Non-statutory Stock Option Plan Forms
“Non-statutory Stock Option Agreement” and “Notice of Exercise of Stock Option” – incorporated herein by reference to Exhibit 4.4 of the Company’s Registration Statement on Form S-8 dated May 25, 2000*
|
|
10.6
|
First Northern Community Bancorp 2000 Employee Stock Purchase Plan Forms “Participation Agreement” and
“Notice of Withdrawal” – incorporated herein by reference to Exhibit 4.6 of the Company’s Registration Statement on Form S-8 dated May 25, 2000*
|
|
10.7
|
Amended and Restated Employment Agreement entered into as of July 23, 2001 by and between First Northern Bank of Dixon and
Don Fish – incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2001*
|
|
10.8
|
Employment Agreement entered into as of July 23, 2001 by and between First Northern Bank of Dixon and Owen J. Onsum –
incorporated herein by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2001*
|
10.10
|
Employment Agreement entered into as of July 23, 2001 by and between First Northern Bank of Dixon and Robert Walker –
incorporated herein by reference to Exhibit 10.4 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2001*
|
|
10.11
|
Form of Director Retirement and Split Dollar Agreements between First Northern Bank of Dixon and Lori J. Aldrete, Frank
J. Andrews Jr., John M. Carbahal, Gregory DuPratt, John F. Hamel, Diane P. Hamlyn, Foy S. McNaughton, William Jones, Jr. and David Schulze – incorporated herein by reference to Exhibit 10.11 to Company’s Annual Report on Form 10-K for
the year ended December 31, 2001*
|
|
10.13
|
Amended Form of Director Retirement and Split Dollar Agreements between First Northern Bank of Dixon and Lori J. Aldrete,
Frank J. Andrews Jr., John M. Carbahal, Gregory DuPratt, John F. Hamel, Diane P. Hamlyn, Foy S. McNaughton, William Jones, Jr. and David Schulze – incorporated herein by reference to Exhibit 10.13 to the Company’s Annual Report on Form
10-K for the year ended December 31, 2004*
|
|
10.15
|
Form of Salary Continuation Agreement between Pat Day and First Northern Bank of Dixon – incorporated herein by
reference to Exhibit 10.15 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006*
|
|
10.17
|
First Northern Bancorp 2006 Stock Incentive Plan – incorporated by reference to Appendix A of the Company’s Definitive
Proxy Statement on Schedule 14A for its 2006 Annual Meeting of Shareholders*
|
|
10.18
|
First Northern Bank Annual Incentive Compensation Plan – incorporated herein by reference to Exhibit 10.18 to the
Company’s Annual Report on Form 10-K for the year ended December 31, 2006*
|
|
10.20
|
First Northern Community Bancorp 2006 Stock Option Plan Forms “Stock Option Agreement” and “Notice of Exercise of
Stock Option” – incorporated herein by reference to Exhibit 10.20 to the Company’s Annual Report for the year ended December 31, 2009 *
|
|
10.21
|
First Northern Community Bancorp 2006 Stock Incentive Plan “Restricted Stock Agreement – incorporated by
reference to Exhibit 10.21 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 *
|
|
10.23
|
Employment Agreement for Patrick S. Day, Executive Vice President and Chief Credit Officer - incorporated herein
by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2012*
|
|
10.24 |
First Northern Bancorp Amended and Restated 2016 Stock Incentive Plan – incorporated by reference to Appendix A of the Company’s Definitive Proxy
Statement on Schedule 14A for its 2021 Annual Meeting of Shareholders*.
|
|
10.25
|
First Northern Bancorp 2016 Employee Stock Purchase Plan – incorporated by reference to Appendix B of the Company’s Definitive Proxy Statement on
Schedule 14A for its 2015 Annual Meeting of Shareholders*.
|
|
10.26
|
Amended and Restated Executive Deferral Plan of First Northern Bank effective July 20, 2017 – incorporated
herein by reference to Exhibit 10.26 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended September 30, 2017*
|
|
10.27
|
Executive Retirement/Retention Participation Agreement for Joe Danelson, Executive Vice President and Chief Credit
Officer – incorporated herein by reference to Exhibit 10.27 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended September 30, 2017*
|
|
10.28
|
Executive Retirement/Retention Participation Agreement for Jeremiah Z. Smith – incorporated herein by reference
to Exhibit 10.28 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended September 30, 2017*
|
|
10.29
|
Form of Supplemental Executive Retirement Plan Agreement between First Northern Bank of Dixon and Jeremiah Z. Smith
– incorporated herein by reference to Exhibit 10.29 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended March 31, 2018*
|
|
10.30
|
Form of Supplemental Executive Retirement Plan Agreement between First Northern Bank of Dixon and Kevin Spink,
Executive Vice President and Chief Financial Officer.– incorporated herein by reference to Exhibit 10.30 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended March 31, 2018*
|
|
10.31
|
Change of Control Agreement between First Northern Bank of Dixon and Joe Danelson, Executive Vice President and
Chief Credit Officer.– incorporated herein by reference to Exhibit 10.31 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended March 31, 2018*
|
10.32
|
Change of Control Agreement between First Northern Bank of Dixon and Jeffrey Adamski, Executive Vice President and
Senior Loan Officer.– incorporated herein by reference to Exhibit 10.32 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended March 31, 2018*
|
|
10.33
|
Executive Retirement/Retention Participation Agreement for Jeffrey Adamski, Executive Vice President and Senior Loan
Officer.– incorporated herein by reference to Exhibit 10.33 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended March 31, 2018*
|
|
10.34
|
Amended Form of Salary Continuation Agreement between First Northern Bank of Dixon and Bruce Orris, Executive Vice
President and Chief Information Officer.– incorporated herein by reference to Exhibit 10.34 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended March 31, 2018*
|
|
10.35
|
Change of Control Agreement between First Northern Bank of Dixon and Denise Burris, Executive Vice President
and Chief Information Officer - incorporated herein by reference to Exhibit 10.36 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended June 30, 2021*
|
|
10.36
|
Executive Retirement/Retention Participation Agreement for Denise Burris, Executive Vice President and Chief
Information Officer - incorporated herein by reference to Exhibit 10.37 of the Company’s Quarterly Report on Form 10-Q for the quarter-ended June 30, 2021*
|
|
10.37
|
Employment Agreement for Jeremiah Z. Smith, President and Chief Executive Officer, entered into between First
Northern Bank of Dixon and Mr. Smith as of January 1, 2023 - incorporated herein by reference to Exhibit 10.1 of the Company’s Form 8-K/A dated December 26, 2022*
|
|
10.38
|
First Amendment to Executive Retirement/Retention Participation Agreement for Jeremiah Z. Smith, President and Chief
Executive Officer, effective January 1, 2023 - incorporated herein by reference to Exhibit 10.2 of the Company’s Form 8-K/A dated December 26, 2022*
|
|
10.39
|
First Amendment to the Participation Agreement of the Supplemental Executive Retirement Plan for Jeremiah Z. Smith,
President and Chief Executive Officer, effective January 1, 2023 - incorporated herein by reference to Exhibit 10.3 of the Company’s Form 8-K/A dated December 26, 2022*
|
|
Employment Agreement for Kevin Spink, Executive Vice President and Chief Financial Officer, between First Northern Bank of Dixon and Mr. Spink dated as of February 27, 2024 - provided herewith
|
||
10.41 |
Supplemental Executive Retirement Plan 2006 - provided herewith |
|
10.42 |
Supplemental Executive Retirement Plan First Amendment 2009 - provided herewith |
|
10.43 |
Supplemental Executive Retirement Plan Second Amendment 2022 - provided herewith |
|
Subsidiary of the Company – provided herewith
|
Consent of independent registered public accounting firm – provided herewith
|
||
Rule 13(a) – 14(a) / 15(d) –14(a) Certification of the Company’s Chief Executive Officer – provided herewith
|
||
Rule 13(a) – 14(a) / 15(d) –14(a) Certification of the Company’s Chief Financial Officer – provided herewith
|
||
Section 1350 Certification of the Chief Executive Officer – provided herewith
|
||
Section 1350 Certification of the Chief Financial Officer – provided herewith
|
||
101
|
Pursuant to Rule 405 of Regulation S-T, the following financial information from the Registrant’s Annual Report on Form 10-K for the twelve months ended December 31, 2023, is formatted in XBRL
interactive data files: (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statement of Comprehensive Income; (iv) Consolidated Statements of Stockholders’ Equity; (v) Consolidated Statements of
Cash Flows; and (vi) Notes to Consolidated Financial Statements.
|
ITEM 16 – |
FORM 10-K SUMMARY
|
FIRST NORTHERN COMMUNITY BANCORP
|
||
By:
|
/s/ Jeremiah Z. Smith
|
|
Jeremiah Z. Smith
|
||
President/Chief Executive Officer/Director
|
||
(Principal Executive Officer)
|
Name
|
Title
|
Date
|
/s/ Jeremiah Z. Smith
|
President/Chief Executive Officer/Director
|
March 8, 2024
|
Jeremiah Z. Smith
|
(Principal Executive Officer)
|
|
/s/ Kevin Spink
|
Executive Vice President/Chief Financial Officer
|
March 8, 2024
|
Kevin Spink
|
(Principal Financial Officer and Principal Accounting Officer)
|
|
/s/ PATRICK R. BRADY
|
Director and Chairman of the Board
|
March 8, 2024
|
Patrick R. Brady
|
||
/s/ JOHN M. CARBAHAL
|
Director and Vice Chairman of the Board
|
March 8, 2024
|
John M. Carbahal
|
||
/s/ GREGORY DUPRATT
|
Director
|
March 8, 2024
|
Gregory DuPratt
|
||
/s/ BARBARA HAYES
|
Director
|
March 8, 2024
|
Barbara Hayes
|
||
/s/ RICHARD M. MARTINEZ
|
Director
|
March 8, 2024
|
Richard M. Martinez
|
||
/s/ FOY S. MCNAUGHTON
|
Director
|
March 8, 2024
|
Foy S. McNaughton
|
||
/s/ SEAN P. QUINN
|
Director
|
March 8, 2024
|
Sean P. Quinn
|
||
/s/ DANIEL F. RAMOS
|
Director
|
March 8, 2024
|
Daniel F. Ramos
|
/s/ MARK C. SCHULZE
|
Director
|
March 8, 2024
|
Mark C. Schulze
|
/s/ LOUISE A. WALKER
|
Director
|
March 8, 2024
|
Louise A. Walker
|