falsedesktopRRBI2020-09-30000107123620000072{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☐\tAccelerated filer\t☐\nNon-accelerated filer\t☒\tSmaller reporting company\t☒\n\t\tEmerging growth company\t☒\n", "q10k_tbl_1": "\t\tPage\nGlossary of Terms\t\t3\nCautionary Note Regarding Forward-Looking Statements\t\t4\nPART I\tFinancial Information\t\nItem 1.\tFinancial Statements (Unaudited)\t\n\tConsolidated Balance Sheets\t5\n\tConsolidated Statements of Income\t6\n\tConsolidated Statements of Comprehensive Income\t7\n\tConsolidated Statements of Changes in Stockholders' Equity\t8\n\tConsolidated Statements of Cash Flows\t10\n\tNotes to Unaudited Consolidated Financial Statements\t12\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t28\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t53\nItem 4.\tControls and Procedures\t54\nPART II\tOther Information\t\nItem 1.\tLegal Proceedings\t55\nItem 1A.\tRisk Factors\t55\nItem 2.\tUse of Proceeds from Registered Sales of Equity Securities\t58\nItem 3.\tDefaults Upon Senior Securities\t58\nItem 4.\tMine Safety Disclosures\t58\nItem 5.\tOther Information\t58\nItem 6.\tExhibits\t59\n\tSignatures\t60\n", "q10k_tbl_2": "ABBREVIATION OR ACRONYM\tDEFINITION\nAFS\tAvailable-for-sale\nASC\tAccounting Standards Codification\nASU\tAccounting Standards Update\nBasel III\tBasel Committee's 2010 Regulatory Capital Framework (Third Accord)\nBOLI\tBank-owned life insurance\nbp(s)\tBasis point(s)\nCARES Act\tCoronavirus Aid Relief and Economic Security Act as amended\nCBLR\tCommunity Bank Leverage Ratio\nCECL\tCurrent Expected Credit Losses related to ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments\nCOVID-19\tCoronavirus Disease 2019\nEconomic Growth Act\tEconomic Growth Regulatory Relief and Consumer Protection Act\nEPS\tEarnings per share\nExchange Act\tSecurities Exchange Act of 1934 as amended\nFDIC\tFederal Deposit Insurance Corporation\nFederal Reserve\tBoard of Governors of the Federal Reserve System\nFHLB\tFederal Home Loan Bank of Dallas\nFTE\tFully taxable equivalent basis\nGAAP\tGenerally Accepted Accounting Principles in the United States of America\nHFI\tHeld for investment\nHFS\tHeld for sale\nHTM\tHeld-to-maturity\nIPO\tInitial public offering\nMSA\tMetropolitan statistical area\nNOW\tNegotiable order of withdrawal\nNPA(s)\tNonperforming asset(s)\nOTTI\tOther-than-temporary impairment\nPPP\tPaycheck Protection Program\nSBA\tSmall Business Administration\nSBIC\tSmall Business Investment Company\nSecurities Act\tSecurities Act of 1933 as amended\nSEC\tSecurities and Exchange Commission\nTDR(s)\tTroubled debt restructuring(s)\n", "q10k_tbl_3": "(in thousands except share amounts)\t(Unaudited) September 30 2020\t(Audited) December 31 2019\nASSETS\t\t\nCash and due from banks\t31422\t25937\nInterest-bearing deposits in other banks\t239466\t107355\nTotal Cash and Cash Equivalents\t270888\t133292\nSecurities available-for-sale\t467744\t335573\nEquity securities\t4032\t3936\nNonmarketable equity securities\t3445\t1350\nLoans held for sale\t23358\t5089\nLoans held for investment\t1649272\t1438924\nAllowance for loan losses\t(16192)\t(13937)\nPremises and equipment net\t44501\t41744\nAccrued interest receivable\t6617\t5251\nBank-owned life insurance\t22270\t21845\nIntangible assets\t1546\t1546\nRight-of-use assets\t4255\t4553\nOther assets\t9192\t9059\nTotal Assets\t2490928\t1988225\nLIABILITIES\t\t\nNoninterest-bearing deposits\t923286\t584915\nInterest-bearing deposits\t1270654\t1136205\nTotal Deposits\t2193940\t1721120\nAccrued interest payable\t1805\t2222\nLease liabilities\t4327\t4603\nAccrued expenses and other liabilities\t12778\t8382\nTotal Liabilities\t2212850\t1736327\nCOMMITMENTS AND CONTINGENCIES\t0\t0\nSTOCKHOLDERS' EQUITY\t\t\nPreferred stock no par value: Authorized - 1000000 shares; None Issued and Outstanding\t0\t0\nCommon stock no par value: Authorized - 30000000 shares; Issued and Outstanding - 7325333 and 7306221 shares\t68055\t68082\nAdditional paid-in capital\t1487\t1269\nRetained earnings\t202136\t182571\nAccumulated other comprehensive income (loss)\t6400\t(24)\nTotal Stockholders' Equity\t278078\t251898\nTotal Liabilities and Stockholders' Equity\t2490928\t1988225\n", "q10k_tbl_4": "(in thousands except per share data)\tFor the Three Months Ended September 30\t\tFor the Nine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nINTEREST AND DIVIDEND INCOME\t\t\t\t\nInterest and fees on loans\t17080\t16578\t50623\t48026\nInterest on securities\t2099\t1800\t5766\t5347\nInterest on federal funds sold\t30\t178\t179\t603\nInterest on deposits in other banks\t27\t213\t265\t935\nDividends on stock\t13\t12\t19\t30\nTotal Interest and Dividend Income\t19249\t18781\t56852\t54941\nINTEREST EXPENSE\t\t\t\t\nInterest on deposits\t1954\t2514\t6497\t7260\nInterest on other borrowed funds\t0\t0\t16\t0\nInterest on junior subordinated debentures\t0\t73\t0\t385\nTotal Interest Expense\t1954\t2587\t6513\t7645\nNet Interest Income\t17295\t16194\t50339\t47296\nProvision for loan losses\t1590\t378\t3618\t1432\nNet Interest Income After Provision for Loan Losses\t15705\t15816\t46721\t45864\nNONINTEREST INCOME\t\t\t\t\nService charges on deposit accounts\t1055\t1195\t3001\t3304\nDebit card income net\t978\t833\t2629\t2314\nMortgage loan income\t2884\t1014\t5720\t2186\nBrokerage income\t586\t561\t1725\t1552\nLoan and deposit income\t413\t404\t1340\t1131\nBank-owned life insurance income\t139\t137\t425\t407\nGain (Loss) on equity securities\t0\t30\t96\t133\nGain (Loss) on sale of securities\t125\t5\t1348\t5\nSBIC income\t200\t139\t568\t634\nOther income (loss)\t40\t68\t122\t115\nTotal Noninterest Income\t6420\t4386\t16974\t11781\nOPERATING EXPENSES\t\t\t\t\nPersonnel expenses\t8077\t7007\t23072\t20652\nOccupancy and equipment expenses\t1319\t1199\t3739\t3708\nTechnology expenses\t661\t595\t1863\t1697\nAdvertising\t240\t216\t717\t821\nOther business development expenses\t233\t266\t782\t827\nData processing expense\t491\t479\t1412\t1420\nOther taxes\t433\t425\t1308\t1234\nLoan and deposit expenses\t289\t285\t808\t901\nLegal and professional expenses\t487\t436\t1587\t1138\nRegulatory assessment expenses\t172\t37\t337\t312\nOther operating expenses\t849\t940\t2445\t2737\nTotal Operating Expenses\t13251\t11885\t38070\t35447\nIncome Before Income Tax Expense\t8874\t8317\t25625\t22198\nIncome tax expense\t1589\t1470\t4741\t4117\nNet Income\t7285\t6847\t20884\t18081\nEARNINGS PER SHARE\t\t\t\t\nBasic\t0.99\t0.94\t2.85\t2.59\nDiluted\t0.99\t0.93\t2.84\t2.57\n", "q10k_tbl_5": "(in thousands)\tFor the Three Months Ended September 30\t\tFor the Nine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet income\t7285\t6847\t20884\t18081\nOther comprehensive income (loss):\t\t\t\t\nUnrealized net gain (loss) on securities arising during period\t353\t721\t9479\t9852\nTax effect\t(74)\t(150)\t(1990)\t(2068)\n(Gain) loss on sale of securities included in net income\t(125)\t(5)\t(1348)\t(5)\nTax effect\t26\t1\t283\t1\nTotal change in other comprehensive income (loss)\t180\t567\t6424\t7780\nComprehensive Income\t7465\t7414\t27308\t25861\n", "q10k_tbl_6": "(in thousands except share amounts)\tCommon Shares Issued\tCommon Stock\tAdditional Paid-In Capital\tRetained Earnings\tAccumulated Other Comprehensive Income (Loss)\tTotal Stockholders' Equity\nBalance as of December 31 2018\t6627358\t41094\t1042\t159073\t(7506)\t193703\nNet income\t0\t0\t0\t5696\t0\t5696\nStock incentive plan\t0\t0\t49\t0\t0\t49\nIssuance of shares of common stock through exercise of stock options\t7200\t80\t0\t0\t0\t80\nIssuance of shares of common stock as board compensation\t2368\t97\t0\t0\t0\t97\nCash dividend - $0.20 per share\t0\t0\t0\t(1326)\t0\t(1326)\nOther comprehensive income (loss)\t0\t0\t0\t0\t3885\t3885\nBalance as of March 31 2019\t6636926\t41271\t1091\t163443\t(3621)\t202184\nNet income\t0\t0\t0\t5538\t0\t5538\nStock incentive plan\t0\t0\t50\t0\t0\t50\nIssuance of shares of common stock through IPO\t663320\t26812\t0\t0\t0\t26812\nBoard compensation adjustment\t0\t(1)\t0\t0\t0\t(1)\nOther comprehensive income (loss)\t0\t0\t0\t0\t3328\t3328\nBalance as of June 30 2019\t7300246\t68082\t1141\t168981\t(293)\t237911\nNet income\t0\t0\t0\t6847\t0\t6847\nStock incentive plan\t0\t0\t64\t0\t0\t64\nIssuance of restricted shares of common stock through stock incentive plan net\t5975\t0\t0\t0\t0\t0\nOther comprehensive income (loss)\t0\t0\t0\t0\t567\t567\nBalance as of September 30 2019\t7306221\t68082\t1205\t175828\t274\t245389\n", "q10k_tbl_7": "(in thousands except share amounts)\tCommon Shares Issued\tCommon Stock\tAdditional Paid-In Capital\tRetained Earnings\tAccumulated Other Comprehensive Income (Loss)\tTotal Stockholders' Equity\nBalance as of December 31 2019\t7306221\t68082\t1269\t182571\t(24)\t251898\nNet income\t0\t0\t0\t6745\t0\t6745\nStock incentive plan\t0\t0\t64\t0\t0\t64\nIssuance of shares of common stock through exercise of stock options\t14720\t8\t0\t0\t0\t8\nIssuance of shares of common stock as board compensation\t1591\t87\t0\t0\t0\t87\nCash dividend - $0.06 per share\t0\t0\t0\t(439)\t0\t(439)\nOther comprehensive income (loss)\t0\t0\t0\t0\t5812\t5812\nBalance as of March 31 2020\t7322532\t68177\t1333\t188877\t5788\t264175\nNet income\t0\t0\t0\t6854\t0\t6854\nStock incentive plan\t0\t0\t96\t0\t0\t96\nCash dividend - $0.06 per share\t0\t0\t0\t(440)\t0\t(440)\nOther comprehensive income (loss)\t0\t0\t0\t0\t432\t432\nBalance as of June 30 2020\t7322532\t68177\t1429\t195291\t6220\t271117\nNet income\t0\t0\t0\t7285\t0\t7285\nStock incentive plan\t0\t0\t58\t0\t0\t58\nCash dividend - $0.06 per share\t0\t0\t0\t(440)\t0\t(440)\nIssuance of restricted shares of common stock through stock incentive plan net\t5625\t0\t0\t0\t0\t0\nPurchase of common stock under stock repurchase program\t(2824)\t(122)\t0\t0\t0\t(122)\nOther comprehensive income (loss)\t0\t0\t0\t0\t180\t180\nBalance as of September 30 2020\t7325333\t68055\t1487\t202136\t6400\t278078\n", "q10k_tbl_8": "(in thousands)\tFor the Nine Months Ended September 30\t\n\t2020\t2019\nCASH FLOWS FROM OPERATING ACTIVITIES\t\t\nNet income\t20884\t18081\nAdjustments to reconcile net income to net cash provided by (used in) operating activities:\t\t\nDepreciation\t1362\t1279\nAmortization\t404\t468\nShare-based compensation earned\t218\t163\nShare-based board compensation earned\t47\t66\n(Gain) Loss on other assets owned\t5\t(16)\nNet (accretion) amortization on securities AFS\t2130\t963\nGain on sale of securities AFS\t(1348)\t(5)\nProvision for loan losses\t3618\t1432\nDeferred income tax (benefit) expense\t(127)\t(308)\nNet (increase) decrease in loans HFS\t(18269)\t(1209)\nNet (increase) decrease in accrued interest receivable\t(1366)\t85\nNet (increase) decrease in BOLI\t(425)\t(406)\nNet increase (decrease) in accrued interest payable\t(417)\t168\nNet increase (decrease) in accrued income taxes payable\t462\t(252)\nOther operating activities net\t1465\t477\nNet cash provided by (used in) operating activities\t8643\t20986\nCASH FLOWS FROM INVESTING ACTIVITIES\t\t\nActivity in securities AFS:\t\t\nSales\t93376\t34957\nMaturities prepayments and calls\t75305\t49267\nPurchases\t(293503)\t(109356)\nPurchase of nonmarketable equity securities\t(2095)\t(48)\nNet (increase) decrease in loans HFI\t(211734)\t(86383)\nProceeds from sales of foreclosed assets\t330\t902\nPurchases of premises and equipment\t(4113)\t(1402)\nNet cash provided by (used in) investing activities\t(342434)\t(112063)\nCASH FLOWS FROM FINANCING ACTIVITIES\t\t\nNet increase (decrease) in deposits\t472820\t31268\nProceeds from other borrowed funds\t50000\t0\nRepayments of other borrowed funds\t(50000)\t0\nRedemption of junior subordinated debentures\t0\t(11341)\nRepurchase of common stock\t(122)\t0\nProceeds from exercise of stock options\t8\t80\nProceeds from initial public offering net\t0\t26812\nCash dividends\t(1319)\t(1326)\nNet cash provided by (used in) financing activities\t471387\t45493\nNet change in cash and cash equivalents\t137596\t(45584)\nCash and cash equivalents - beginning of period\t133292\t151906\nCash and cash equivalents - end of period\t270888\t106322\n", "q10k_tbl_9": "(in thousands)\tFor the Nine Months Ended September 30\t\n\t2020\t2019\nSUPPLEMENTAL DISCLOSURES\t\t\nCash paid during the year for:\t\t\nInterest\t6930\t7477\nIncome taxes\t4387\t4649\nInitial measurement and recognition of operating lease assets in exchange for lease liabilities\t0\t4954\nSUPPLEMENTAL INFORMATION FOR NON-CASH INVESTING AND FINANCING ACTIVITIES\t\t\nAssets acquired in settlement of loans\t23\t1609\n", "q10k_tbl_10": "\tSeptember 30 2020\t\t\t\n(in thousands)\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\nSecurities AFS:\t\t\t\t\nMortgage-backed securities\t278786\t3995\t(268)\t282513\nMunicipal bonds\t169954\t4252\t(82)\t174124\nU.S. agency securities\t10903\t210\t(6)\t11107\nTotal Securities AFS\t459643\t8457\t(356)\t467744\n", "q10k_tbl_11": "\tDecember 31 2019\t\t\t\n(in thousands)\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\nSecurities AFS:\t\t\t\t\nMortgage-backed securities\t236572\t299\t(1200)\t235671\nMunicipal bonds\t91929\t1108\t(279)\t92758\nU.S. agency securities\t7102\t46\t(4)\t7144\nTotal Securities AFS\t335603\t1453\t(1483)\t335573\n", "q10k_tbl_12": "(in thousands)\tAmortized Cost\tFair Value\nWithin one year\t6254\t6281\nAfter one year but within five years\t41179\t42008\nAfter five years but within ten years\t51448\t53043\nAfter ten years\t360762\t366412\nTotal\t459643\t467744\n", "q10k_tbl_13": "\tLess than twelve months\t\tTwelve months or more\t\n\tGross Unrealized Losses\tFair Value\tGross Unrealized Losses\tFair Value\nSeptember 30 2020\t\t\t\t\nSecurities AFS:\t\t\t\t\nMortgage-backed securities\t(268)\t64059\t0\t0\nMunicipal bonds\t(82)\t12644\t0\t0\nU.S. agency securities\t(6)\t994\t0\t0\nTotal Securities AFS\t(356)\t77697\t0\t0\nDecember 31 2019\t\t\t\t\nSecurities AFS:\t\t\t\t\nMortgage-backed securities\t(474)\t109416\t(726)\t70425\nMunicipal bonds\t(172)\t18735\t(107)\t9323\nU.S. agency securities\t(4)\t1020\t0\t0\nTotal Securities AFS\t(650)\t129171\t(833)\t79748\n", "q10k_tbl_14": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(in thousands)\t2020\t2019\t2020\t2019\nProceeds (1)\t6451\t34957\t93376\t34957\nGross gain\t125\t185\t1441\t185\nGross loss\t0\t(180)\t(93)\t(180)\n", "q10k_tbl_15": "(in thousands)\tSeptember 30 2020\tDecember 31 2019\nReal estate:\t\t\nCommercial real estate\t567037\t531990\nOne-to-four family residential\t426758\t420020\nConstruction and development\t129879\t132461\nCommercial and industrial\t249313\t267940\nSBA PPP net of deferred income\t193532\t0\nTax-exempt\t59418\t56494\nConsumer\t23335\t30019\nTotal loans HFI\t1649272\t1438924\nTotal loans HFS\t23358\t5089\n", "q10k_tbl_16": "(in thousands)\tBeginning Balance December 31 2019\tProvision for Loan Losses\tLoans Charged-off\tRecoveries\tEnding Balance September 30 2020\nReal estate:\t\t\t\t\t\nCommercial real estate\t3454\t1135\t0\t0\t4589\nOne-to-four family residential\t3323\t705\t0\t8\t4036\nConstruction and development\t1211\t188\t(14)\t1\t1386\nCommercial and industrial\t5175\t896\t(1316)\t83\t4838\nSBA PPP net of deferred income\t0\t480\t0\t0\t480\nTax-exempt\t334\t114\t0\t0\t448\nConsumer\t440\t100\t(254)\t129\t415\nTotal allowance for loan losses\t13937\t3618\t(1584)\t221\t16192\n", "q10k_tbl_17": "(in thousands)\tBeginning Balance December 31 2018\tProvision for Loan Losses\tLoans Charged-off\tRecoveries\tEnding Balance December 31 2019\nReal estate:\t\t\t\t\t\nCommercial real estate\t3081\t373\t0\t0\t3454\nOne-to-four family residential\t3146\t216\t(44)\t5\t3323\nConstruction and development\t951\t172\t0\t88\t1211\nCommercial and industrial\t4604\t850\t(864)\t585\t5175\nSBA PPP net of deferred income\t0\t0\t0\t0\t0\nTax-exempt\t372\t(38)\t0\t0\t334\nConsumer\t370\t237\t(311)\t144\t440\nTotal allowance for loan losses\t12524\t1810\t(1219)\t822\t13937\n", "q10k_tbl_18": "(in thousands)\tIndividually Evaluated for Impairment\tCollectively Evaluated for Impairment\tAcquired with Deteriorated Credit Quality\tTotal\nAllowance for loan losses:\t\t\t\t\nReal estate:\t\t\t\t\nCommercial real estate\t279\t4310\t0\t4589\nOne-to-four family residential\t41\t3995\t0\t4036\nConstruction and development\t0\t1386\t0\t1386\nCommercial and industrial\t2432\t2406\t0\t4838\nSBA PPP net of deferred income\t0\t480\t0\t480\nTax-exempt\t0\t448\t0\t448\nConsumer\t112\t303\t0\t415\nTotal allowance for loan losses\t2864\t13328\t0\t16192\nLoans:\t\t\t\t\nReal estate:\t\t\t\t\nCommercial real estate\t3639\t563398\t0\t567037\nOne-to-four family residential\t1333\t425425\t0\t426758\nConstruction and development\t0\t129879\t0\t129879\nCommercial and industrial\t10034\t239279\t0\t249313\nSBA PPP net of deferred income\t0\t193532\t0\t193532\nTax-exempt\t0\t59418\t0\t59418\nConsumer\t114\t23221\t0\t23335\nTotal loans HFI\t15120\t1634152\t0\t1649272\n", "q10k_tbl_19": "(in thousands)\tIndividually Evaluated for Impairment\tCollectively Evaluated for Impairment\tAcquired with Deteriorated Credit Quality\tTotal\nAllowance for loan losses:\t\t\t\t\nReal estate:\t\t\t\t\nCommercial real estate\t260\t3194\t0\t3454\nOne-to-four family residential\t31\t3292\t0\t3323\nConstruction and development\t10\t1201\t0\t1211\nCommercial and industrial\t2916\t2259\t0\t5175\nSBA PPP net of deferred income\t0\t0\t0\t0\nTax-exempt\t0\t334\t0\t334\nConsumer\t71\t369\t0\t440\nTotal allowance for loan losses\t3288\t10649\t0\t13937\nLoans:\t\t\t\t\nReal estate:\t\t\t\t\nCommercial real estate\t2639\t529351\t0\t531990\nOne-to-four family residential\t1193\t418827\t0\t420020\nConstruction and development\t38\t132423\t0\t132461\nCommercial and industrial\t8797\t259143\t0\t267940\nSBA PPP net of deferred income\t0\t0\t0\t0\nTax-exempt\t0\t56494\t0\t56494\nConsumer\t75\t29944\t0\t30019\nTotal loans HFI\t12742\t1426182\t0\t1438924\n", "q10k_tbl_20": "\tAccruing\t\t\t\t\n(in thousands)\tCurrent\t30-89 Days Past Due\t90 Days or More Past Due\tNonaccrual\tTotal Loans\nReal estate:\t\t\t\t\t\nCommercial real estate\t564989\t191\t0\t1857\t567037\nOne-to-four family residential\t425959\t70\t0\t729\t426758\nConstruction and development\t129879\t0\t0\t0\t129879\nCommercial and industrial\t247463\t56\t80\t1714\t249313\nSBA PPP net of deferred income\t193532\t0\t0\t0\t193532\nTax-exempt\t59418\t0\t0\t0\t59418\nConsumer\t23324\t4\t2\t5\t23335\nTotal loans HFI\t1644564\t321\t82\t4305\t1649272\n", "q10k_tbl_21": "\tAccruing\t\t\t\t\n(in thousands)\tCurrent\t30-89 Days Past Due\t90 Days or More Past Due\tNonaccrual\tTotal Loans\nReal estate:\t\t\t\t\t\nCommercial real estate\t530712\t0\t0\t1278\t531990\nOne-to-four family residential\t419229\t184\t0\t607\t420020\nConstruction and development\t132423\t0\t0\t38\t132461\nCommercial and industrial\t264427\t143\t0\t3370\t267940\nSBA PPP net of deferred income\t0\t0\t0\t0\t0\nTax-exempt\t56494\t0\t0\t0\t56494\nConsumer\t29973\t20\t0\t26\t30019\nTotal loans HFI\t1433258\t347\t0\t5319\t1438924\n", "q10k_tbl_22": "(in thousands)\tUnpaid Principal Balance\tRecorded Investment\tRelated Allowance\tAverage Recorded Investment\nWith no related allowance recorded:\t\t\t\t\nReal estate:\t\t\t\t\nCommercial real estate\t1469\t1438\t0\t1414\nOne-to-four family residential\t1120\t1060\t0\t1027\nConstruction and development\t0\t0\t0\t0\nCommercial and industrial\t1831\t1463\t0\t1444\nSBA PPP net of deferred income\t0\t0\t0\t0\nTax-exempt\t0\t0\t0\t0\nConsumer\t2\t2\t0\t2\nTotal with no related allowance\t4422\t3963\t0\t3887\nWith allowance recorded:\t\t\t\t\nReal estate:\t\t\t\t\nCommercial real estate\t2399\t2201\t279\t1368\nOne-to-four family residential\t280\t273\t41\t218\nConstruction and development\t0\t0\t0\t10\nCommercial and industrial\t8594\t8571\t2432\t7179\nSBA PPP net of deferred income\t0\t0\t0\t0\nTax-exempt\t0\t0\t0\t0\nConsumer\t114\t112\t112\t102\nTotal with related allowance\t11387\t11157\t2864\t8877\nTotal impaired loans\t15809\t15120\t2864\t12764\n", "q10k_tbl_23": "(in thousands)\tUnpaid Principal Balance\tRecorded Investment\tRelated Allowance\tAverage Recorded Investment\nWith no related allowance recorded:\t\t\t\t\nReal estate:\t\t\t\t\nCommercial real estate\t1560\t1537\t0\t2647\nOne-to-four family residential\t1040\t984\t0\t1194\nConstruction and development\t0\t0\t0\t76\nCommercial and industrial\t1805\t1474\t0\t3685\nSBA PPP net of deferred income\t0\t0\t0\t0\nTax-exempt\t0\t0\t0\t0\nConsumer\t2\t2\t0\t9\nTotal with no related allowance\t4407\t3997\t0\t7611\nWith allowance recorded:\t\t\t\t\nReal estate:\t\t\t\t\nCommercial real estate\t1263\t1102\t260\t1076\nOne-to-four family residential\t216\t209\t31\t339\nConstruction and development\t51\t38\t10\t89\nCommercial and industrial\t8544\t7323\t2916\t7746\nSBA PPP net of deferred income\t0\t0\t0\t0\nTax-exempt\t0\t0\t0\t0\nConsumer\t76\t73\t71\t76\nTotal with related allowance\t10150\t8745\t3288\t9326\nTotal impaired loans\t14557\t12742\t3288\t16937\n", "q10k_tbl_24": "(dollars in thousands)\tCurrent\t30-89 Days Past Due\t90 Days or More Past Due\tNonaccrual\tTotal TDRs\nReal estate:\t\t\t\t\t\nCommercial real estate\t1162\t0\t0\t1230\t2392\nOne-to-four family residential\t215\t0\t0\t0\t215\nConstruction and development\t0\t0\t0\t0\t0\nCommercial and industrial\t0\t0\t0\t9\t9\nSBA PPP net of deferred income\t0\t0\t0\t0\t0\nTax-exempt\t0\t0\t0\t0\t0\nConsumer\t0\t0\t0\t0\t0\nTotal\t1377\t0\t0\t1239\t2616\nNumber of TDR loans\t7\t0\t0\t4\t11\n", "q10k_tbl_25": "(dollars in thousands)\tCurrent\t30-89 Days Past Due\t90 Days or More Past Due\tNonaccrual\tTotal TDRs\nReal estate:\t\t\t\t\t\nCommercial real estate\t1361\t0\t0\t1278\t2639\nOne-to-four family residential\t252\t0\t0\t0\t252\nConstruction and development\t0\t0\t0\t38\t38\nCommercial and industrial\t36\t0\t0\t1869\t1905\nSBA PPP net of deferred income\t0\t0\t0\t0\t0\nTax-exempt\t0\t0\t0\t0\t0\nConsumer\t46\t0\t0\t0\t46\nTotal\t1695\t0\t0\t3185\t4880\nNumber of TDR loans\t12\t0\t0\t6\t18\n", "q10k_tbl_26": "\tSeptember 30 2020\t\t\tSeptember 30 2019\t\t\n\t\tRecorded Investment\t\t\tRecorded Investment\t\n(dollars in thousands)\tLoan Count\tPre Modification\tPost Modification\tLoan Count\tPre Modification\tPost Modification\nReal estate:\t\t\t\t\t\t\nCommercial real estate\t0\t0\t0\t1\t166\t166\nOne-to-four family residential\t0\t0\t0\t0\t0\t0\nConstruction and development\t0\t0\t0\t0\t0\t0\nCommercial and industrial\t0\t0\t0\t1\t4\t4\nSBA PPP net of deferred income\t0\t0\t0\t0\t0\t0\nTax-exempt\t0\t0\t0\t0\t0\t0\nConsumer\t0\t0\t0\t0\t0\t0\nTotal\t0\t0\t0\t2\t170\t170\n", "q10k_tbl_27": "(in thousands)\tPass\tSpecial Mention\tSubstandard\tDoubtful\tLoss\tTotal\nReal estate:\t\t\t\t\t\t\nCommercial real estate\t562169\t582\t4286\t0\t0\t567037\nOne-to-four family residential\t424921\t492\t1345\t0\t0\t426758\nConstruction and development\t129100\t0\t779\t0\t0\t129879\nCommercial and industrial\t238616\t212\t10485\t0\t0\t249313\nSBA PPP net of deferred income\t193532\t0\t0\t0\t0\t193532\nTax-exempt\t59418\t0\t0\t0\t0\t59418\nConsumer\t23221\t0\t114\t0\t0\t23335\nTotal loans HFI\t1630977\t1286\t17009\t0\t0\t1649272\n", "q10k_tbl_28": "(in thousands)\tPass\tSpecial Mention\tSubstandard\tDoubtful\tLoss\tTotal\nReal estate:\t\t\t\t\t\t\nCommercial real estate\t515926\t14118\t1946\t0\t0\t531990\nOne-to-four family residential\t416884\t2021\t1115\t0\t0\t420020\nConstruction and development\t131185\t565\t711\t0\t0\t132461\nCommercial and industrial\t247382\t11473\t9085\t0\t0\t267940\nSBA PPP net of deferred income\t0\t0\t0\t0\t0\t0\nTax-exempt\t56494\t0\t0\t0\t0\t56494\nConsumer\t29876\t5\t138\t0\t0\t30019\nTotal loans HFI\t1397747\t28182\t12995\t0\t0\t1438924\n", "q10k_tbl_29": "(in thousands)\tSeptember 30 2020\tDecember 31 2019\nNoninterest-bearing demand deposits\t923286\t584915\nInterest-bearing deposits:\t\t\nNOW accounts\t304616\t331374\nMoney market accounts\t498293\t367689\nSavings accounts\t135396\t103984\nTime deposits < $100000\t108021\t110636\nTime deposits $100000 to $250000\t135935\t131957\nTime deposits > $250000\t88393\t90565\nTotal interest-bearing deposits\t1270654\t1136205\nTotal deposits\t2193940\t1721120\n", "q10k_tbl_30": "(in thousands)\tAmount\n3 months remaining in 2020\t130\n2021\t529\n2022\t537\n2023\t539\n2024\t539\nThereafter\t2815\nTotal lease payments\t5089\nLess: Imputed interest\t(762)\nPresent value of lease liabilities\t4327\n", "q10k_tbl_31": "(in thousands)\tFair Value\tLevel 1\tLevel 2\tLevel 3\nSeptember 30 2020\t\t\t\t\nLoans HFS\t23358\t0\t23358\t0\nSecurities AFS:\t\t\t\t\nMortgage-backed securities\t282513\t0\t282513\t0\nMunicipal bonds\t174124\t0\t174124\t0\nU.S. agency securities\t11107\t0\t11107\t0\nEquity securities\t4032\t4032\t0\t0\nDecember 31 2019\t\t\t\t\nLoans HFS\t5089\t0\t5089\t0\nSecurities AFS:\t\t\t\t\nMortgage-backed securities\t235671\t0\t235671\t0\nMunicipal bonds\t92758\t0\t92758\t0\nU.S. agency securities\t7144\t0\t7144\t0\nEquity securities\t3936\t3936\t0\t0\n", "q10k_tbl_32": "\tFor the Nine Months Ended\t\n(in thousands)\tSeptember 30 2020\tSeptember 30 2019\nCarrying value of impaired loans before allowance for loan losses\t5021\t1337\nSpecific allowance for loan losses\t(780)\t(140)\nFair value of impaired loans\t4241\t1197\n", "q10k_tbl_33": "\tFor the Nine Months Ended\t\n(in thousands)\tSeptember 30 2020\tSeptember 30 2019\nForeclosed assets remeasured at initial recognition:\t\t\nCarrying value of foreclosed assets prior to remeasurement\t0\t1119\nCharge-offs\t0\t0\nFair value of foreclosed assets\t0\t1119\n", "q10k_tbl_34": "(dollars in thousands)\tFair Value\tValuation Technique\tUnobservable Input\tDiscount Ranges\tWeighted Average Discount\nSeptember 30 2020\t\t\t\t\t\nImpaired loans\t12256\tDiscounted appraisals\tCollateral discounts and costs to sell\t0% - 100%\t18.24%\nForeclosed assets\t828\tDiscounted appraisals\tCollateral discounts and costs to sell\tN/A\tN/A\nDecember 31 2019\t\t\t\t\t\nImpaired loans\t9454\tDiscounted appraisals\tCollateral discounts and costs to sell\t0% - 100%\t25.80%\nForeclosed assets\t1128\tDiscounted appraisals\tCollateral discounts and costs to sell\t0% - 36%\t2.60%\n", "q10k_tbl_35": "(in thousands)\tCarrying Amount\tFair Value\tLevel 1\tLevel 2\tLevel 3\nSeptember 30 2020\t\t\t\t\t\nFinancial assets:\t\t\t\t\t\nCash and due from banks\t31422\t31422\t31422\t0\t0\nInterest-bearing deposits in other banks\t239466\t239466\t239466\t0\t0\nSecurities AFS\t467744\t467744\t0\t467744\t0\nEquity securities\t4032\t4032\t4032\t0\t0\nNonmarketable equity securities\t3445\t3445\t0\t3445\t0\nLoans HFS\t23358\t23358\t0\t23358\t0\nLoans HFI net of allowance\t1633080\t1641936\t0\t0\t1641936\nAccrued interest receivable\t6617\t6617\t0\t0\t6617\nFinancial liabilities:\t\t\t\t\t\nDeposits\t2193940\t2198985\t0\t2198985\t0\nAccrued interest payable\t1805\t1805\t0\t1805\t0\nDecember 31 2019\t\t\t\t\t\nFinancial assets:\t\t\t\t\t\nCash and due from banks\t25937\t25937\t25937\t0\t0\nInterest-bearing deposits in other banks\t107355\t107355\t107355\t0\t0\nSecurities AFS\t335573\t335573\t0\t335573\t0\nEquity securities\t3936\t3936\t3936\t0\t0\nNonmarketable equity securities\t1350\t1350\t0\t1350\t0\nLoans HFS\t5089\t5089\t0\t5089\t0\nLoans HFI net of allowance\t1424987\t1426163\t0\t0\t1426163\nAccrued interest receivable\t5251\t5251\t0\t0\t5251\nFinancial liabilities:\t\t\t\t\t\nDeposits\t1721120\t1721286\t0\t1721286\t0\nAccrued interest payable\t2222\t2222\t0\t2222\t0\n", "q10k_tbl_36": "\t\t\tRegulatory Requirements\t\t\t\n\tActual\t\tMinimum\t\tMinimum Plus CCB\t\n(dollars in thousands)\tAmount\tRatio\tAmount\tRatio\tAmount\tRatio\nSeptember 30 2020\t\t\t\t\t\t\nTotal Risk-Based Capital\t261840\t16.62%\t126031\t8.00%\t165415\t10.50%\nTier I Risk-Based Capital\t245648\t15.59%\t94523\t6.00%\t133908\t8.50%\nCommon Equity Tier I Capital\t245648\t15.59%\t70892\t4.50%\t110277\t7.00%\nTier I Leverage Capital\t245648\t10.24%\t95933\t4.00%\t95933\t4.00%\nDecember 31 2019\t\t\t\t\t\t\nTotal Risk-Based Capital\t238021\t16.23%\t117325\t8.00%\t153989\t10.50%\nTier I Risk-Based Capital\t224084\t15.28%\t87994\t6.00%\t124658\t8.50%\nCommon Equity Tier I Capital\t224084\t15.28%\t65995\t4.50%\t102660\t7.00%\nTier I Leverage Capital\t224084\t11.47%\t78114\t4.00%\t78114\t4.00%\n", "q10k_tbl_37": "\tActual\t\n(dollars in thousands)\tAmount\tRatio\t\t\t\t\t\t\t\t\t\t\t\t\nSeptember 30 2020\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nTotal Risk-Based Capital\t286324\t18.17%\t\t\t\t\t\t\t\t\t\t\t\t\nTier I Risk-Based Capital\t270132\t17.15%\t\t\t\t\t\t\t\t\t\t\t\t\nCommon Equity Tier I Capital\t270132\t17.15%\t\t\t\t\t\t\t\t\t\t\t\t\nTier I Leverage Capital\t270132\t11.26%\t\t\t\t\t\t\t\t\t\t\t\t\nDecember 31 2019\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nTotal Risk-Based Capital\t264313\t18.02%\t\t\t\t\t\t\t\t\t\t\t\t\nTier I Risk-Based Capital\t250376\t17.07%\t\t\t\t\t\t\t\t\t\t\t\t\nCommon Equity Tier I Capital\t250376\t17.07%\t\t\t\t\t\t\t\t\t\t\t\t\nTier I Leverage Capital\t250376\t12.82%\t\t\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_38": "\tFor the Three Months Ended September 30\t\tFor the Nine Months Ended September 30\t\n(in thousands except per share amounts)\t2020\t2019\t2020\t2019\nNumerator:\t\t\t\t\nNet income - basic\t7285\t6847\t20884\t18081\nNet income - diluted\t7285\t6847\t20884\t18081\nDenominator:\t\t\t\t\nWeighted average shares outstanding - basic\t7327395\t7304273\t7321092\t6993990\nPlus: Effect of Director Stock Compensation Program\t272\t330\t1088\t1529\nPlus: Effect of stock options and restricted stock\t15011\t35895\t19567\t36540\nWeighted average shares outstanding - diluted\t7342678\t7340498\t7341747\t7032059\nEarnings per common share:\t\t\t\t\nBasic\t0.99\t0.94\t2.85\t2.59\nDiluted\t0.99\t0.93\t2.84\t2.57\n", "q10k_tbl_39": "\tAs of\t\tChange from December 31 2019 to September 30 2020\t\n(dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\t Change\t% Change\nSelected Period End Balance Sheet Data:\t\t\t\t\nTotal assets\t2490928\t1988225\t502703\t25.3%\nSecurities available-for-sale\t467744\t335573\t132171\t39.4%\nLoans held for investment\t1649272\t1438924\t210348\t14.6%\nTotal deposits\t2193940\t1721120\t472820\t27.5%\nTotal stockholders' equity\t278078\t251898\t26180\t10.4%\n", "q10k_tbl_40": "\tAs of and for the Three Months Ended\t\t\t\t\t\tAs of and for the Nine Months Ended\t\t\n(Dollars in thousands except per share data)\tSeptember 30\t\tJune 30\t\tSeptember 30\t\tSeptember 30\t\tSeptember 30\n2020\t\t2020\t\t2019\t\t2020\t\t2019\nNet Income\t7285\t\t6854\t\t6847\t\t20884\t\t18081\nPer Common Share Data:\t\t\t\t\t\t\t\t\t\nEarnings per share basic\t0.99\t\t0.94\t\t0.94\t\t2.85\t\t2.59\nEarnings per share diluted\t0.99\t\t0.93\t\t0.93\t\t2.84\t\t2.57\nBook value per share\t37.96\t\t37.03\t\t33.59\t\t37.96\t\t33.59\nTangible book value per share(12)\t37.75\t\t36.81\t\t33.37\t\t37.75\t\t33.37\nCash dividends per share\t0.06\t\t0.06\t\t0\t\t0.18\t\t0.20\nShares outstanding\t7325333\t\t7322532\t\t7306221\t\t7325333\t\t7306221\nWeighted average shares outstanding basic\t7327395\t\t7322532\t\t7304273\t\t7321092\t\t6993990\nWeighted average shares outstanding diluted\t7342678\t\t7348772\t\t7340498\t\t7341747\t\t7032059\nSummary Performance Ratios:\t\t\t\t\t\t\t\t\t\nReturn on average assets\t1.20%\t\t1.20%\t\t1.42%\t\t1.25%\t\t1.28%\nReturn on average equity\t10.50%\t\t10.30%\t\t11.20%\t\t10.44%\t\t10.91%\nNet interest margin\t2.96%\t\t3.07%\t\t3.50%\t\t3.11%\t\t3.48%\nNet interest margin FTE(3)\t3.02%\t\t3.12%\t\t3.55%\t\t3.17%\t\t3.53%\nEfficiency ratio(4)\t55.88%\t\t56.50%\t\t57.75%\t\t56.56%\t\t60.00%\nLoans HFI to deposits ratio\t75.17%\t\t78.06%\t\t84.27%\t\t75.17%\t\t84.27%\nNoninterest-bearing deposits to deposits ratio\t42.08%\t\t41.48%\t\t36.68%\t\t42.08%\t\t36.68%\nNoninterest income to average assets\t1.06%\t\t1.02%\t\t0.91%\t\t1.01%\t\t0.84%\nOperating expense to average assets\t2.19%\t\t2.26%\t\t2.47%\t\t2.28%\t\t2.51%\nSummary Credit Quality Ratios:\t\t\t\t\t\t\t\t\t\nNonperforming assets to total assets\t0.21%\t\t0.18%\t\t0.41%\t\t0.21%\t\t0.41%\nNonperforming loans to loans HFI\t0.27%\t\t0.21%\t\t0.47%\t\t0.27%\t\t0.47%\nAllowance for loan losses to loans HFI\t0.98%\t\t0.92%\t\t0.98%\t\t0.98%\t\t0.98%\nNet charge-offs to average loans\t0.02%\t\t0.06%\t\t0.00%\t\t0.09%\t\t0.00%\nCapital Ratios:\t\t\t\t\t\t\t\t\t\nTotal stockholders' equity to total assets\t11.16%\t\t11.48%\t\t12.66%\t\t11.16%\t\t12.66%\nTangible common equity to tangible assets(15)\t11.11%\t\t11.42%\t\t12.59%\t\t11.11%\t\t12.59%\nTotal risk-based capital to risk-weighted assets\t18.17%\t\t18.22%\t\t17.76%\t\t18.17%\t\t17.76%\nTier 1 risk-based capital to risk-weighted assets\t17.15%\t\t17.25%\t\t16.80%\t\t17.15%\t\t16.80%\nCommon equity Tier 1 capital to risk-weighted assets\t17.15%\t\t17.25%\t\t16.80%\t\t17.15%\t\t16.80%\nTier 1 risk-based capital to average assets\t11.26%\t\t11.52%\t\t12.77%\t\t11.26%\t\t12.77%\n", "q10k_tbl_41": "\tFor the Three Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(dollars in thousands)\tAverage Balance Outstanding\tInterest Earned/ Interest Paid\tAverage Yield/ Rate\tAverage Balance Outstanding\tInterest Earned/ Interest Paid\tAverage Yield/ Rate\nAssets\t\t\t\t\t\t\nInterest-earning assets:\t\t\t\t\t\t\nLoans(12)\t1656586\t17080\t4.04%\t1408146\t16578\t4.61%\nSecurities - taxable\t317612\t1240\t1.56%\t255846\t1352\t2.11%\nSecurities - tax-exempt\t146477\t859\t2.35%\t77047\t448\t2.33%\nFederal funds sold\t73644\t30\t0.16%\t32461\t178\t2.15%\nInterest-bearing balances due from banks\t97687\t27\t0.11%\t38676\t213\t2.16%\nNonmarketable equity securities\t3441\t13\t1.51%\t1342\t10\t2.99%\nInvestment in trusts\t0\t0\t-%\t64\t2\t10.91%\nTotal interest-earning assets\t2295447\t19249\t3.30%\t1813582\t18781\t4.06%\nAllowance for loan losses\t(15525)\t\t\t(13755)\t\t\nNoninterest earning assets\t128910\t\t\t110062\t\t\nTotal assets\t2408832\t\t\t1909889\t\t\nLiabilities and Stockholders' Equity\t\t\t\t\t\t\nInterest-bearing liabilities:\t\t\t\t\t\t\nInterest-bearing transaction deposits\t891840\t617\t0.28%\t724219\t972\t0.53%\nTime deposits\t330576\t1337\t1.61%\t338330\t1542\t1.81%\nTotal interest-bearing deposits\t1222416\t1954\t0.64%\t1062549\t2514\t0.94%\nJunior subordinated debentures\t0\t0\t-%\t2129\t73\t13.64%\nOther borrowings\t0\t0\t-%\t22\t0\t2.80%\nTotal interest-bearing liabilities\t1222416\t1954\t0.64%\t1064700\t2587\t0.96%\nNoninterest-bearing liabilities:\t\t\t\t\t\t\nNoninterest-bearing deposits\t891850\t\t\t586664\t\t\nAccrued interest and other liabilities\t18541\t\t\t16084\t\t\nTotal noninterest-bearing liabilities\t910391\t\t\t602748\t\t\nStockholders' equity\t276025\t\t\t242441\t\t\nTotal liabilities and stockholders' equity\t2408832\t\t\t1909889\t\t\nNet interest income\t\t17295\t\t\t16194\t\nNet interest spread\t\t\t2.66%\t\t\t3.10%\nNet interest margin\t\t\t2.96%\t\t\t3.50%\nNet interest margin FTE(3)\t\t\t3.02%\t\t\t3.55%\nCost of deposits\t\t\t0.37%\t\t\t0.60%\nCost of funds\t\t\t0.34%\t\t\t0.57%\n", "q10k_tbl_42": "\tFor the Three Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(dollars in thousands)\tAverage Balance Outstanding\tInterest/Fee Earned\tAverage Yield\tAverage Balance Outstanding\tInterest/Fee Earned\tAverage Yield\nLoans(12)\t1656586\t17080\t4.04%\t1408146\t16578\t4.61%\nLess: PPP loans net\t\t\t\t\t\t\nAverage\t193038\t\t\t0\t\t\nInterest\t\t509\t\t\t0\t\nFees\t\t877\t\t\t0\t\nTotal PPP loans net\t193038\t1386\t2.84%\t0\t0\t-%\nNon-PPP loans (non-GAAP)(4)\t1463548\t15694\t4.20%\t1408146\t16578\t4.61%\nRatios excluding PPP loans net (non-GAAP)(4)\t\t\t\t\t\t\nNet interest spread\t\t\t2.70%\t\t\t3.10%\nNet interest margin\t\t\t2.97%\t\t\t3.50%\nNet interest margin FTE(3)\t\t\t3.03%\t\t\t3.55%\n", "q10k_tbl_43": "\tFor the Nine Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(dollars in thousands)\tAverage Balance Outstanding\tInterest Earned/ Interest Paid\tAverage Yield/ Rate\tAverage Balance Outstanding\tInterest Earned/ Interest Paid\tAverage Yield/ Rate\nAssets\t\t\t\t\t\t\nInterest-earning assets:\t\t\t\t\t\t\nLoans(12)\t1571318\t50623\t4.24%\t1375129\t48026\t4.61%\nSecurities - taxable\t282186\t3725\t1.76%\t256618\t4074\t2.12%\nSecurities - tax-exempt\t114581\t2041\t2.38%\t71892\t1273\t2.36%\nFederal funds sold\t63015\t179\t0.37%\t34019\t603\t2.34%\nInterest-bearing balances due from banks\t91866\t265\t0.38%\t53759\t935\t2.30%\nNonmarketable equity securities\t2639\t19\t0.96%\t1325\t19\t1.86%\nInvestment in trusts\t0\t0\t-%\t242\t11\t6.23%\nTotal interest-earning assets\t2125605\t56852\t3.52%\t1792984\t54941\t4.05%\nAllowance for loan losses\t(14702)\t\t\t(13267)\t\t\nNoninterest earning assets\t122948\t\t\t105793\t\t\nTotal assets\t2233851\t\t\t1885510\t\t\nLiabilities and Stockholders' Equity\t\t\t\t\t\t\nInterest-bearing liabilities:\t\t\t\t\t\t\nInterest-bearing transaction deposits\t842193\t2214\t0.35%\t736947\t2930\t0.53%\nTime deposits\t333154\t4283\t1.72%\t335201\t4330\t1.73%\nTotal interest-bearing deposits\t1175347\t6497\t0.74%\t1072148\t7260\t0.91%\nJunior subordinated debentures\t0\t0\t-%\t8044\t385\t6.39%\nOther borrowings\t6231\t16\t0.35%\t7\t0\t2.80%\nTotal interest-bearing liabilities\t1181578\t6513\t0.74%\t1080199\t7645\t0.95%\nNoninterest-bearing liabilities:\t\t\t\t\t\t\nNoninterest-bearing deposits\t767372\t\t\t568053\t\t\nAccrued interest and other liabilities\t17762\t\t\t15756\t\t\nTotal noninterest-bearing liabilities\t785134\t\t\t583809\t\t\nStockholders' equity\t267139\t\t\t221502\t\t\nTotal liabilities and stockholders' equity\t2233851\t\t\t1885510\t\t\nNet interest income\t\t50339\t\t\t47296\t\nNet interest spread\t\t\t2.78%\t\t\t3.10%\nNet interest margin\t\t\t3.11%\t\t\t3.48%\nNet interest margin FTE(3)\t\t\t3.17%\t\t\t3.53%\nCost of deposits\t\t\t0.45%\t\t\t0.59%\nCost of funds\t\t\t0.41%\t\t\t0.57%\n", "q10k_tbl_44": "\tFor the Nine Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n(dollars in thousands)\tAverage Balance Outstanding\tInterest/Fee Earned\tAverage Yield\tAverage Balance Outstanding\tInterest/Fee Earned\tAverage Yield\nLoans(12)\t1571318\t50623\t4.24%\t1375129\t48026\t4.61%\nLess: PPP loans net\t\t\t\t\t\t\nAverage\t116095\t\t\t0\t\t\nInterest\t\t932\t\t\t0\t\nFees\t\t1607\t\t\t0\t\nTotal PPP loans net\t116095\t2539\t2.90%\t0\t0\t-%\nNon-PPP loans (non-GAAP)(4)\t1455223\t48084\t4.35%\t1375129\t48026\t4.61%\nRatios excluding PPP loans net (non-GAAP)(4)\t\t\t\t\t\t\nNet interest spread\t\t\t2.82%\t\t\t3.10%\nNet interest margin\t\t\t3.13%\t\t\t3.48%\nNet interest margin FTE(3)\t\t\t3.19%\t\t\t3.53%\n", "q10k_tbl_45": "\tFor the Three Months Ended\t\t\tFor the Nine Months Ended\t\t\n\tSeptember 30 2020 vs 2019\t\t\tSeptember 30 2020 vs 2019\t\t\n\tIncrease (Decrease) Due to Change in\t\tTotal Increase\tIncrease (Decrease) Due to Change in\t\tTotal Increase\n(in thousands)\tVolume\tRate\t(Decrease)\tVolume\tRate\t(Decrease)\nInterest-earning assets:\t\t\t\t\t\t\nLoans\t1411\t(909)\t502\t4145\t(1548)\t2597\nSecurities - taxable\t326\t(438)\t(112)\t406\t(755)\t(349)\nSecurities - tax-exempt\t404\t7\t411\t756\t12\t768\nFederal funds sold\t226\t(374)\t(148)\t514\t(938)\t(424)\nInterest-bearing balances due from banks\t325\t(511)\t(186)\t663\t(1333)\t(670)\nNonmarketable equity securities\t16\t(13)\t3\t18\t(18)\t0\nInvestment in trusts\t(2)\t0\t(2)\t(11)\t0\t(11)\nTotal interest-earning assets\t2706\t(2238)\t468\t6491\t(4580)\t1911\nInterest-bearing liabilities:\t\t\t\t\t\t\nInterest-bearing transaction deposits\t243\t(598)\t(355)\t438\t(1154)\t(716)\nTime deposits\t(32)\t(173)\t(205)\t(8)\t(39)\t(47)\nTotal interest-bearing deposits\t211\t(771)\t(560)\t430\t(1193)\t(763)\nJunior subordinated debentures\t(73)\t0\t(73)\t(385)\t0\t(385)\nOther borrowings\t0\t0\t0\t16\t0\t16\nTotal interest-bearing liabilities\t138\t(771)\t(633)\t61\t(1193)\t(1132)\nIncrease (decrease) in net interest income\t2568\t(1467)\t1101\t6430\t(3387)\t3043\n", "q10k_tbl_46": "\tFor the Three Months Ended\t\t\t\tFor the Nine Months Ended\t\t\t\n\tSeptember 30\t\t\t\tSeptember 30\t\t\t\n(dollars in thousands)\t2020\t2019\tIncrease (Decrease)\t\t2020\t2019\tIncrease (Decrease)\t\nNoninterest income:\t\t\t\t\t\t\t\t\nService charges on deposit accounts\t1055\t1195\t(140)\t(11.7)%\t3001\t3304\t(303)\t(9.2)%\nDebit card income net\t978\t833\t145\t17.4%\t2629\t2314\t315\t13.6%\nMortgage loan income\t2884\t1014\t1870\t184.4%\t5720\t2186\t3534\t161.7%\nBrokerage income\t586\t561\t25\t4.5%\t1725\t1552\t173\t11.1%\nLoan and deposit income\t413\t404\t9\t2.2%\t1340\t1131\t209\t18.5%\nBank-owned life insurance income\t139\t137\t2\t1.5%\t425\t407\t18\t4.4%\nGain (Loss) on equity securities\t0\t30\t(30)\t(100.0)%\t96\t133\t(37)\t(27.8)%\nGain (Loss) on sale of securities\t125\t5\t120\t*\t1348\t5\t1343\t*\nSBIC income\t200\t139\t61\t43.9%\t568\t634\t(66)\t(10.4)%\nOther income (loss)\t40\t68\t(28)\t(41.2)%\t122\t115\t7\t6.1%\nTotal noninterest income\t6420\t4386\t2034\t46.4%\t16974\t11781\t5193\t44.1%\n", "q10k_tbl_47": "\tFor the Three Months Ended\t\t\t\tFor the Nine Months Ended\t\t\t\n\tSeptember 30\t\t\t\tSeptember 30\t\t\t\n(dollars in thousands)\t2020\t2019\tIncrease (Decrease)\t\t2020\t2019\tIncrease (Decrease)\t\nOperating expenses:\t\t\t\t\t\t\t\t\nPersonnel expenses\t8077\t7007\t1070\t15.3%\t23072\t20652\t2420\t11.7%\nNon-staff expenses:\t\t\t\t\t\t\t\t\nOccupancy and equipment expenses\t1319\t1199\t120\t10.0%\t3739\t3708\t31\t0.8%\nTechnology expenses\t661\t595\t66\t11.1%\t1863\t1697\t166\t9.8%\nAdvertising\t240\t216\t24\t11.1%\t717\t821\t(104)\t(12.7)%\nOther business development expenses\t233\t266\t(33)\t(12.4)%\t782\t827\t(45)\t(5.4)%\nData processing expense\t491\t479\t12\t2.5%\t1412\t1420\t(8)\t(0.6)%\nOther taxes\t433\t425\t8\t1.9%\t1308\t1234\t74\t6.0%\nLoan and deposit expenses\t289\t285\t4\t1.4%\t808\t901\t(93)\t(10.3)%\nLegal and professional expenses\t487\t436\t51\t11.7%\t1587\t1138\t449\t39.5%\nRegulatory assessment expenses\t172\t37\t135\t364.9%\t337\t312\t25\t8.0%\nOther operating expenses\t849\t940\t(91)\t(9.7)%\t2445\t2737\t(292)\t(10.7)%\nTotal operating expenses\t13251\t11885\t1366\t11.5%\t38070\t35447\t2623\t7.4%\n", "q10k_tbl_48": "\tSeptember 30 2020\t\t\t\n(in thousands)\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\nSecurities AFS:\t\t\t\t\nMortgage-backed securities\t278786\t3995\t(268)\t282513\nMunicipal bonds\t169954\t4252\t(82)\t174124\nU.S. agency securities\t10903\t210\t(6)\t11107\nTotal Securities AFS\t459643\t8457\t(356)\t467744\n", "q10k_tbl_49": "\tDecember 31 2019\t\t\t\n(in thousands)\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\nSecurities AFS:\t\t\t\t\nMortgage-backed securities\t236572\t299\t(1200)\t235671\nMunicipal bonds\t91929\t1108\t(279)\t92758\nU.S. agency securities\t7102\t46\t(4)\t7144\nTotal Securities AFS\t335603\t1453\t(1483)\t335573\n", "q10k_tbl_50": "\tContractual Maturity as of September 30 2020\t\t\t\t\t\t\t\t\t\n\tWithin One Year\t\tAfter One Year but Within Five Years\t\tAfter Five Years but Within Ten Years\t\tAfter Ten Years\t\tTotal\t\n(dollars in thousands)\tAmount\tYield(1)\tAmount\tYield(1)\tAmount\tYield(1)\tAmount\tYield(1)\tAmount\tYield(1)\nSecurities AFS:\t\t\t\t\t\t\t\t\t\t\nMortgage-backed securities\t1748\t1.79%\t4232\t1.81%\t23101\t1.78%\t253432\t1.51%\t282513\t1.53%\nMunicipal bonds\t4533\t2.19%\t31434\t1.73%\t26172\t2.71%\t111985\t2.93%\t174124\t2.66%\nU.S. agency securities\t0\t-%\t6342\t0.88%\t3770\t2.55%\t995\t0.73%\t11107\t1.42%\nTotal Securities AFS\t6281\t2.08%\t42008\t1.61%\t53043\t2.29%\t366412\t1.94%\t467744\t1.95%\n", "q10k_tbl_51": "\tSeptember 30 2020\t\tDecember 31 2019\t\n(dollars in thousands)\tAmount\tPercent\tAmount\tPercent\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nReal estate:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nCommercial real estate\t567037\t34.4%\t531990\t37.0%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nOne-to-four family residential\t426758\t25.9%\t420020\t29.2%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nConstruction and development\t129879\t7.9%\t132461\t9.2%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nCommercial and industrial\t249313\t15.1%\t267940\t18.6%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nSBA PPP net of deferred income\t193532\t11.7%\t0\t-%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nTax-exempt\t59418\t3.6%\t56494\t3.9%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nConsumer\t23335\t1.4%\t30019\t2.1%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nTotal loans HFI\t1649272\t100.0%\t1438924\t100.0%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nTotal non-PPP loans HFI (non-GAAP)\t1455740\t\t1438924\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nTotal loans HFS\t23358\t\t5089\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_52": "\tSeptember 30 2020\t\t\t\tDecember 31 2019\t\n\tLoans\t\tLoans with Active COVID-19 Payment Deferment\t\tLoans\t\n(dollars in thousands)\tAmount\tPercent of Non-PPP Loans HFI (non-GAAP)\tAmount\tPercent of Non-PPP Loans HFI (non-GAAP)\tAmount\tPercent of Non-PPP Loans HFI (non-GAAP)\nHospitality services:\t\t\t\t\t\t\nHotels and other overnight lodging\t25287\t1.7%\t15539\t1.1%\t24297\t1.7%\nRestaurants - full service\t10594\t0.7%\t1340\t0.1%\t11444\t0.8%\nRestaurants - limited service\t12508\t0.9%\t0\t-%\t8123\t0.6%\nOther\t5560\t0.4%\t0\t-%\t3340\t0.2%\nTotal hospitality services\t53949\t3.7%\t16879\t1.2%\t47204\t3.3%\nHospitality services average loan size\t383\t\t\t\t319\t\nRetail trade:\t\t\t\t\t\t\nAutomobile dealers\t36096\t2.5%\t0\t-%\t39069\t2.7%\nOther retail\t21345\t1.5%\t0\t-%\t24772\t1.7%\nTotal retail trade\t57441\t4.0%\t0\t-%\t63841\t4.4%\nRetail trade average loan size\t326\t\t\t\t340\t\nEnergy\t26767\t1.8%\t0\t-%\t31777\t2.2%\nEnergy average loan size\t704\t\t\t\t836\t\nTotal sectors\t138157\t9.5%\t16879\t1.2%\t142822\t9.9%\n", "q10k_tbl_53": "\tSeptember 30 2020\t\n(dollars in thousands)\tAmount\tPercent of Non-PPP Loans HFI (non-GAAP)\nLoans collateralized by non-owner occupied properties leased to retail establishments\t43914\t3.0%\nCredit card loans:\t\t\nCommercial\t1461\t0.1%\nConsumer\t875\t0.1%\nTotal credit card loans\t2336\t0.2%\n", "q10k_tbl_54": "\tSeptember 30 2020\t\n(dollars in thousands)\tAmount\tPercent of Non-PPP Loans HFI (non-GAAP)\nCentral\t608460\t41.8%\nNorthwest\t340638\t23.4%\nCapital\t395573\t27.1%\nSouthwest\t69449\t4.8%\nNorthshore\t41620\t2.9%\nTotal non-PPP loans HFI\t1455740\t100.0%\n", "q10k_tbl_55": "(dollars in thousands)\tSeptember 30 2020\tDecember 31 2019\nNonperforming loans:\t\t\nNonaccrual loans\t4305\t5319\nAccruing loans 90 or more days past due\t82\t0\nTotal nonperforming loans\t4387\t5319\nForeclosed assets:\t\t\nReal estate\t828\t1128\nOther\t0\t18\nTotal foreclosed assets\t828\t1146\nTotal NPAs\t5215\t6465\nTroubled debt restructurings:(12)\t\t\nNonaccrual loans\t1239\t3185\nAccruing loans 90 or more days past due\t0\t0\nPerforming loans\t1377\t1695\nTotal TDRs\t2616\t4880\nNonperforming loans to loans HFI(1)\t0.27%\t0.37%\nNonperforming loans to non-PPP loans HFI (non-GAAP)(13)\t0.30%\t0.37%\nNPAs to total assets\t0.21%\t0.33%\n", "q10k_tbl_56": "(in thousands)\tSeptember 30 2020\tDecember 31 2019\nReal estate:\t\t\nCommercial real estate\t1857\t1278\nOne-to-four family residential\t729\t607\nConstruction and development\t0\t38\nCommercial and industrial\t1714\t3370\nSBA PPP net of deferred income\t0\t0\nTax-exempt\t0\t0\nConsumer\t5\t26\nTotal nonaccrual loans\t4305\t5319\n", "q10k_tbl_57": "\tNine Months Ended September 30\n(dollars in thousands)\t2020\t\t\t\t2019\t\t\nLoans HFI\t1649272\t\t\t\t1413162\t\t\nNon-PPP Loans HFI (non-GAAP)(1)\t1455740\t\t\t\t1413162\t\t\nAverage loans\t1571318\t\t\t\t1375129\t\t\nAllowance for loan losses at beginning of period\t13937\t\t\t\t12524\t\t\nProvision for loan losses\t3618\t\t\t\t1432\t\t\nCharge-offs:\t\t\t\t\t\t\t\nReal estate:\t\t\t\t\t\t\t\nOne-to-four family residential\t0\t\t\t\t(15)\t\t\nConstruction and development\t(14)\t\t\t\t0\t\t\nCommercial and industrial\t(1316)\t\t\t\t(574)\t\t\nConsumer\t(254)\t\t\t\t(240)\t\t\nTotal charge-offs\t(1584)\t\t\t\t(829)\t\t\nRecoveries:\t\t\t\t\t\t\t\nReal estate:\t\t\t\t\t\t\t\nOne-to-four family residential\t8\t\t\t\t3\t\t\nConstruction and development\t1\t\t\t\t88\t\t\nCommercial and industrial\t83\t\t\t\t582\t\t\nConsumer\t129\t\t\t\t106\t\t\nTotal recoveries\t221\t\t\t\t779\t\t\nNet (charge-offs)/recoveries\t(1363)\t\t\t\t(50)\t\t\nAllowance for loan losses at end of period\t16192\t\t\t\t13906\t\t\nAllowance for loan losses to loans HFI\t0.98%\t\t\t\t0.98%\t\t\nAllowance for loan losses to non-PPP loans HFI (non-GAAP)(1)\t1.11%\t\t\t\t0.98%\t\t\nNet charge-offs to average loans\t0.09%\t\t\t\t0.00%\t\t\n", "q10k_tbl_58": "\tSeptember 30 2020\t\tDecember 31 2019\t\tChange from December 31 2019 to September 30 2020\t\n(dollars in thousands)\tBalance\t% of Total\tBalance\t% of Total\t Change\t% Change\nNoninterest-bearing demand deposits\t923286\t42.1%\t584915\t34.0%\t338371\t57.8%\nInterest-bearing deposits:\t\t\t\t\t\t\nNOW accounts\t304616\t13.9%\t331374\t19.2%\t(26758)\t(8.1)%\nMoney market accounts\t498293\t22.7%\t367689\t21.4%\t130604\t35.5%\nSavings accounts\t135396\t6.2%\t103984\t6.0%\t31412\t30.2%\nTime deposits < $100000\t108021\t4.9%\t110636\t6.4%\t(2615)\t(2.4)%\nTime deposits $100000 to $250000\t135935\t6.2%\t131957\t7.7%\t3978\t3.0%\nTime deposits > $250000\t88393\t4.0%\t90565\t5.3%\t(2172)\t(2.4)%\nTotal interest-bearing deposits\t1270654\t57.9%\t1136205\t66.0%\t134449\t11.8%\nTotal deposits\t2193940\t100.0%\t1721120\t100.0%\t472820\t27.5%\n", "q10k_tbl_59": "\tSeptember 30 2020\t\tDecember 31 2019\t\tChange from December 31 2019 to September 30 2020\t\n(dollars in thousands)\tBalance\t% of Total\tBalance\t% of Total\t Change\t% Change\nConsumer\t1002954\t45.7%\t895342\t52.0%\t107612\t12.0%\nCommercial\t1065704\t48.6%\t656814\t38.2%\t408890\t62.3%\nPublic\t125282\t5.7%\t168964\t9.8%\t(43682)\t(25.9)%\nTotal deposits\t2193940\t100.0%\t1721120\t100.0%\t472820\t27.5%\n", "q10k_tbl_60": "(in thousands)\tSeptember 30 2020\nThree months or less\t44744\nOver three months through six months\t35157\nOver six months through 12 months\t78264\nOver 12 months through three years\t44827\nOver three years\t21336\nTotal\t224328\n", "q10k_tbl_61": "\tAs of September 30 2020\t\tAs of December 31 2019\t\n\t% Change in Net Interest Income\t% Change in Fair Value of Equity\t% Change in Net Interest Income\t% Change in Fair Value of Equity\nChange in Interest Rates (Bps)\t\t\t\t\n+300\t35.0%\t29.2%\t20.2%\t8.3%\n+200\t24.4%\t23.6%\t13.9%\t7.0%\n+100\t13.5%\t15.2%\t7.4%\t4.7%\nBase\t0.0%\t0.0%\t0.0%\t0.0%\n-100\t0.1%\t(17.4)%\t(8.0)%\t(9.9)%\n-200\t0.6%\t(14.7)%\t(13.0)%\t(22.3)%\n", "q10k_tbl_62": "\tSeptember 30\tJune 30\tSeptember 30\n(dollars in thousands except per share data)\t2020\t2020\t2019\nTangible common equity\t\t\t\nTotal stockholders' equity\t278078\t271117\t245389\nAdjustments:\t\t\t\nIntangible assets\t(1546)\t(1546)\t(1546)\nTotal tangible common equity (non-GAAP)\t276532\t269571\t243843\nCommon shares outstanding\t7325333\t7322532\t7306221\nBook value per common share\t37.96\t37.03\t33.59\nTangible book value per common share (non-GAAP)\t37.75\t36.81\t33.37\nTangible assets\t\t\t\nTotal assets\t2490928\t2361866\t1938854\nAdjustments:\t\t\t\nIntangible assets\t(1546)\t(1546)\t(1546)\nTotal tangible assets (non-GAAP)\t2489382\t2360320\t1937308\nTotal stockholder's equity to assets\t11.16%\t11.48%\t12.66%\nTangible common equity to tangible assets (non-GAAP)\t11.11%\t11.42%\t12.59%\n", "q10k_tbl_63": "\tSeptember 30\tJune 30\tDecember 31\tSeptember 30\n(dollars in thousands)\t2020\t2020\t2019\t2019\nNon-PPP loans HFI\t\t\t\t\nLoans HFI\t1649272\t1615298\t1438924\t1413162\nAdjustments:\t\t\t\t\nPPP loans net\t(193532)\t(192655)\t0\t0\nNon-PPP loans HFI (non-GAAP)\t1455740\t1422643\t1438924\t1413162\nAssets excluding PPP loans net\t\t\t\t\nAssets\t2490928\t2361866\t1988225\t1938854\nAdjustments:\t\t\t\t\nPPP loans net\t(193532)\t(192655)\t0\t0\nAssets excluding PPP loans net (non-GAAP)\t2297396\t2169211\t1988225\t1938854\nDeposits\t2193940\t2069322\t1721120\t1676851\nAllowance for loan losses\t16192\t14882\t13937\t13906\nNonperforming loans\t4387\t3442\t5319\t6648\nLoans HFI to deposits ratio\t75.17%\t78.06%\t83.60%\t84.27%\nNon-PPP loans HFI to deposits ratio (non-GAAP)\t66.35%\t68.75%\t83.60%\t84.27%\nAllowance for loan losses to loans HFI\t0.98%\t0.92%\t0.97%\t0.98%\nAllowance for loan losses to non-PPP loans HFI (non-GAAP)\t1.11%\t1.05%\t0.97%\t0.98%\nNonperforming loans to loans HFI\t0.27%\t0.21%\t0.37%\t0.47%\nNonperforming loans to non-PPP loans HFI\t0.30%\t0.24%\t0.37%\t0.47%\n", "q10k_tbl_64": "(dollars in thousands except per share data)\t\t\t\t\nPeriod\tTotal Number of Shares Purchased\tAverage Price Paid per Share\tTotal Number of Shares Purchased as Part of Publicly Announced Program\tApproximate Dollar Value of Shares that May Yet Be Purchased Under the Program(1)\nJuly 1 - July 31 2020\t0\t0\t0\t0\nAugust 1 - August 31 2020\t0\t0\t0\t0\nSeptember 1 - September 30 2020\t2824\t43.39\t2824\t2878\nTotal\t2824\t43.39\t2824\t2878\n", "q10k_tbl_65": "NUMBER\tDESCRIPTION\n3.1\tRestated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company's Form S-1 filed with the SEC on April 10 2019)\n3.2\tAmended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Company's Form S-1 filed with the SEC on April 10 2019)\n31.1\tCertification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*\n31.2\tCertification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*\n32.1\tCertification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**\n32.2\tCertification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**\n101\tThe following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30 2020 is formatted in Inline Extensible Business Reporting Language (XBRL): (i) the Unaudited Consolidated Balance Sheets (ii) the Unaudited Consolidated Statements of Income (iii) the Unaudited Consolidated Statements of Comprehensive Income (iv) the Unaudited Consolidated Statements of Changes in Stockholders' Equity (v) the Unaudited Consolidated Statements of Cash Flows and (vi) the Notes to Unaudited Consolidated Financial Statements.\n101.INS\tInline XBRL Instance Document* - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n101.SCH\tInline XBRL Taxonomy Extension Schema Document*\n101.CAL\tInline XBRL Taxonomy Extension Calculation Linkbase Document*\n101.DEF\tInline XBRL Taxonomy Extension Definitions Linkbase Document*\n101.LAB\tInline XBRL Taxonomy Extension Label Linkbase Document*\n101.PRE\tInline XBRL Taxonomy Extension Presentation Linkbase Document*\n104\tCover Page Interactive Data File* - Formatted as Inline XBRL and contained within the Inline XBRL Instance Document in Exhibit 101.\n*\tFiled herewith\n**\tThese exhibits are furnished herewith and shall not be deemed \"filed\" for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.\n"}{"bs": "q10k_tbl_3", "is": "q10k_tbl_4", "cf": "q10k_tbl_8"}None
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended: September 30, 2020
or
☐
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from to
Commission File Number: 001-38888
Red River Bancshares, Inc.
(Exact name of registrant as specified in its charter)
Louisiana
72-1412058
(State or Other Jurisdiction of Incorporation or Organization)
(I.R.S. Employer Identification Number)
1412 Centre Court Drive, Suite 501, Alexandria, Louisiana
71301
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: (318) 561-5028
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, no par value
RRBI
The Nasdaq Stock Market, LLC
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
Emerging growth company
☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of October 31, 2020, the registrant had 7,325,333 shares of common stock, no par value, issued and outstanding.
Unless the context indicates otherwise, references in this filing to “we,” “our,” “us,” “the Company,” and “our company” refer to Red River Bancshares, Inc., a Louisiana corporation and bank holding company, and its consolidated subsidiaries. All references in this filing to “Red River Bank,” the “bank,” and the “Bank” refer to Red River Bank, our wholly owned bank subsidiary.
Other abbreviations or acronyms used in this filing are defined below.
ABBREVIATION OR ACRONYM
DEFINITION
AFS
Available-for-sale
ASC
Accounting Standards Codification
ASU
Accounting Standards Update
Basel III
Basel Committee's 2010 Regulatory Capital Framework (Third Accord)
BOLI
Bank-owned life insurance
bp(s)
Basis point(s)
CARES Act
Coronavirus Aid, Relief, and Economic Security Act, as amended
CBLR
Community Bank Leverage Ratio
CECL
Current Expected Credit Losses, related to ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
COVID-19
Coronavirus Disease 2019
Economic Growth Act
Economic Growth, Regulatory Relief, and Consumer Protection Act
EPS
Earnings per share
Exchange Act
Securities Exchange Act of 1934, as amended
FDIC
Federal Deposit Insurance Corporation
Federal Reserve
Board of Governors of the Federal Reserve System
FHLB
Federal Home Loan Bank of Dallas
FTE
Fully taxable equivalent basis
GAAP
Generally Accepted Accounting Principles in the United States of America
This Quarterly Report on Form 10-Q contains forward-looking statements, which reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words, or such other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:
•business and economic conditions generally and in the financial services industry, nationally and within our local market areas;
•the impact of COVID-19 on our business, the communities where we have our banking centers, the state of Louisiana, and the United States, related to the economy and overall financial stability;
•government and regulatory responses to the COVID-19 pandemic;
•government intervention in the U.S. financial system, including the effects of recent and future legislative, tax, accounting, and regulatory actions and reforms, including the CARES Act and other changes in banking, securities, accounting, and tax laws and regulations, and their application by our regulators;
•changes in management personnel;
•increased competition in the financial services industry, particularly from regional and national institutions;
•volatility and direction of market interest rates;
•our ability to maintain important deposit customer relationships, our reputation, and to otherwise avoid liquidity risks;
•factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, and the success of construction projects that we finance, including any loans acquired in acquisition transactions;
•changes in the value of collateral securing our loans;
•risks associated with system failures or failures to protect against cybersecurity threats, such as breaches of our network security;
•deterioration of our asset quality;
•the adequacy of our reserves, including our allowance for loan losses;
•operational risks associated with our business;
•natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond our control;
•our ability to prudently manage our growth and execute our strategy;
•compliance with the extensive regulatory framework that applies to us;
•uncertainty regarding the future of LIBOR and the impact of any replacement alternatives on our business;
•changes in the laws, rules, regulations, interpretations, or policies relating to financial institution, accounting, tax, trade, monetary, and fiscal matters; and
•other risks and uncertainties listed from time to time in our reports and documents filed with the SEC.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this Quarterly Report on Form 10-Q. Additional information on these and other risk factors can be found in "Part II - Item 1A. Risk Factors" of this Quarterly Report on Form 10-Q and in "Part I - Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1.Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with GAAP for interim financial information, general practices within the financial services industry, and with instructions for Form 10-Q and Regulation S-X. Accordingly, these interim financial statements do not include all of the information or footnotes required by GAAP for annual financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results which may be expected for the entire fiscal year. These statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Certain prior period amounts have been reclassified to conform to the current period presentation. These changes in presentation did not have a material impact on the Company's financial condition or results of operations.
Critical Accounting Policies and Estimates
There were no material changes or developments during the reporting period with respect to methodologies the Company uses when applying critical accounting policies and developing critical accounting estimates as disclosed in Note 1 of the notes to the audited consolidated financial statements for the year ended December 31, 2019, that were included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. In preparing the financial statements, the Company is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s financial condition, results of operations, comprehensive income, changes in stockholders’ equity, and cash flows for the interim period presented. These adjustments are of a normal recurring nature and include appropriate estimated provisions.
Accounting Standards Adopted in 2020
ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds, and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. ASU 2018-13 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements.
ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment based on that difference. The impairment will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the requirement to calculate a goodwill impairment using Step 2, which requires an entity to calculate any impairment by comparing the implied fair value of goodwill with its carrying amount. This standard was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. ASU 2017-04 was adopted as of January 1, 2020, and did not have a material impact on the Company's financial statements.
Recent Accounting Pronouncements
ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The guidance issued in this update simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted tax changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements.
ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.ASU 2016-13 sets forth the CECL model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 requires enhanced disclosures related to the significant estimates and judgments
used in estimating credit losses. In addition, the update amends the accounting for credit losses on AFS securities. As an SEC registrant with smaller reporting company filing status as determined on June 30, 2019, CECL is effective for the Company beginning January 1, 2023. The Company continues to evaluate the impact of this ASU on the consolidated financial statements and disclosures. In that regard, the Company has formed a cross-functional working group and is currently working through an implementation plan. The implementation plan includes an assessment of data, model development and documentation, documentation of processes, and implementation of a third-party vendor solution to assist in the adoption of ASU 2016-13.
2. Securities
Securities held for indefinite periods of time are classified as AFS and carried at estimated fair value. The Company did not have any HTM securities as of September 30, 2020. Investment activity for the nine months ended September 30, 2020, included $293.5 million of securities purchased, partially offset by $93.4 million in sales and $75.3 million in maturities, prepayments, and calls. The net unrealized gain of the securities AFS portfolio increased $8.1 million for the nine months ended September 30, 2020. The amortized cost and estimated fair values of securities AFS are summarized in the following tables: