0001071236-23-000083 | 10-Q | XBRL Viewer

Securities

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Securities are classified as AFS, HTM, and equity securities. Total securities were $675.3 million as of September 30, 2023.

Securities AFS and Securities HTM

Securities AFS and securities HTM are debt securities. Securities AFS are held for indefinite periods of time and are carried at estimated fair value. As of September 30, 2023, the estimated fair value of securities AFS was $529.0 million. The net unrealized loss on securities AFS increased $9.2 million for the nine months ended September 30, 2023, resulting in a net unrealized loss of $83.3 million as of September 30, 2023.

Securities HTM, which the Company has the intent and ability to hold until maturity, are carried at amortized cost. As of September 30, 2023, the amortized cost of securities HTM was $143.4 million.

Investment activity for the nine months ended September 30, 2023, included $118.9 million in maturities, principal repayments, and calls, partially offset by $34.6 million of securities purchased. There were no sales of securities AFS, and there were no purchases or sales of securities HTM for the same period.

The amortized cost and estimated fair value of securities AFS and securities HTM are summarized in the following tables:


	September 30, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	249,746	$	—	$	(36,893)	$	212,853
Municipal bonds	213,112		—		(41,169)		171,943
U.S. Treasury securities	122,109		—		(3,247)		118,862
U.S. agency securities	27,397		6		(2,015)		25,388
Total Securities AFS	$	612,364	$	6	$	(83,324)	$	529,046

Securities HTM:
Mortgage-backed securities	$	142,501	$	—	$	(26,070)	$	116,431
U.S. agency securities	919		—		(143)		776
Total Securities HTM	$	143,420	$	—	$	(26,213)	$	117,207


	December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	272,253	$	—	$	(31,272)	$	240,981
Municipal bonds	219,305		6		(35,219)		184,092
U.S. Treasury securities	176,380		—		(5,902)		170,478
U.S. agency securities	20,601		—		(1,745)		18,856
Total Securities AFS	$	688,539	$	6	$	(74,138)	$	614,407

Securities HTM:
Mortgage-backed securities	$	150,771	$	—	$	(19,142)	$	131,629
U.S. agency securities	912		—		(134)		778
Total Securities HTM	$	151,683	$	—	$	(19,276)	$	132,407

The amortized cost and estimated fair value of securities AFS and securities HTM as of September 30, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties.


	September 30, 2023
(in thousands)	Amortized Cost		Fair Value
Securities AFS:
Within one year	$	98,990	$	97,219
After one year but within five years	62,186		58,778
After five years but within ten years	84,066		75,198
After ten years	367,122		297,851
Total Securities AFS	$	612,364	$	529,046

Securities HTM:
Within one year	$	—	$	—
After one year but within five years	—		—
After five years but within ten years	919		776
After ten years	142,501		116,431
Total Securities HTM	$	143,420	$	117,207

Accounting for Credit Losses – Securities AFS and Securities HTM

The Company evaluates securities AFS for impairment when there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Due to the zero credit loss assumption and the considerations applied to the securities AFS, no ACL was recorded on January 1, 2023, and there was no ACL for securities AFS as of September 30, 2023. Also, as part of the Company’s evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers its investment strategy, cash flow needs, liquidity position, capital adequacy, and interest rate risk position. Management does not intend to sell these securities prior to recovery, and it is more likely than not that the Company will have the ability to hold them, primarily due to adequate liquidity, until each security has recovered its cost basis.

Due to the zero credit loss assumption on the securities HTM portfolio, no ACL was recorded on January 1, 2023, and there was no ACL for securities HTM as of September 30, 2023.

Accrued interest receivable totaled $2.6 million and $3.0 million as of September 30, 2023 and December 31, 2022, respectively, for securities AFS and securities HTM and was reported in accrued interest receivable on the consolidated balance sheets.

Information pertaining to securities AFS and securities HTM with gross unrealized losses as of September 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows:


	September 30, 2023
	Less than twelve months				Twelve months or more
(in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	(94)	$	4,220	$	(36,799)	$	208,564
Municipal bonds	(418)		7,347		(40,751)		164,596
U.S. Treasury securities	—		—		(3,247)		118,862
U.S. agency securities	(5)		6,962		(2,010)		16,398
Total Securities AFS	$	(517)	$	18,529	$	(82,807)	$	508,420

Securities HTM:
Mortgage-backed securities	$	—	$	—	$	(26,070)	$	116,431
U.S. agency securities	—		—		(143)		776
Total Securities HTM	$	—	$	—	$	(26,213)	$	117,207

	December 31, 2022
	Less than twelve months				Twelve months or more
(in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	(10,214)	$	105,030	$	(21,058)	$	135,607
Municipal bonds	(11,340)		84,691		(23,879)		98,607
U.S. Treasury securities	(3,852)		131,107		(2,050)		39,371
U.S. agency securities	(608)		10,289		(1,137)		8,564
Total Securities AFS	$	(26,014)	$	331,117	$	(48,124)	$	282,149

Securities HTM:
Mortgage-backed securities	$	(19,142)	$	131,629	$	—	$	—
U.S. agency securities	(134)		778		—		—
Total Securities HTM	$	(19,276)	$	132,407	$	—	$	—

As of September 30, 2023, the Company held 554 securities AFS and securities HTM that were in unrealized loss positions. The aggregate unrealized loss of these securities as of September 30, 2023, was 14.49% of the amortized cost basis of total debt securities.

The proceeds from sales and calls of debt securities and their gross gain (loss) for the three and nine months ended September 30, 2023 and 2022, are shown below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022			2023		2022
Proceeds (1)	$	—	$	731		$	—	$	41,234
Gross gain	$	—	$	16		$	—	$	64
Gross loss	$	—	$	—		$	—	$	(123)

(1)The proceeds include the gross gain and loss.

Equity Securities

Equity securities are an investment in a CRA mutual fund, consisting primarily of bonds. Equity securities are carried at fair value on the consolidated balance sheets with periodic changes in value recorded through the consolidated statements of income. As of December 31, 2022, equity securities had a fair value of $10.0 million with a recognized loss of $468,000 for the year ended December 31, 2022. The loss on equity securities during 2022 was due to a significant increase in interest rates. During the nine months ended September 30, 2023, the Company sold $7.0 million of the mutual fund. As of September 30, 2023, equity securities had a fair value of $2.8 million with a recognized loss of $145,000 for the nine months ended September 30, 2023.

Pledged Securities

Securities with carrying values of approximately $232.7 million and $191.2 million were used as collateral as of September 30, 2023 and December 31, 2022, respectively.

Other Borrowed Funds (Details) - USD ($)	1 Months Ended	6 Months Ended
Other Borrowed Funds (Details) - USD ($)	Jul. 31, 2023	Jun. 30, 2023	Sep. 30, 2023
Line of Credit Facility [Line Items]
Other borrowed funds			$ 0
Line of Credit
Line of Credit Facility [Line Items]
Proceeds from borrowing		$ 60,000,000
Interest rate (as a percent)		5.49%
Repayments of debt	$ 60,000,000

Loans and Asset Quality - Narrative (Details) - USD ($)	9 Months Ended	12 Months Ended
Loans and Asset Quality - Narrative (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2022	Sep. 30, 2023	Jan. 01, 2023	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest		$ 5,800,000	$ 6,000,000
Interest income on impaired loans		252,000
Increase for allowance for loan losses		20,628,000	21,183,000	$ 20,906,000	$ 19,176,000
Defaults on loans	$ 0
Troubled debt restructure
Financing Receivable, Allowance for Credit Loss [Line Items]
Increase for allowance for loan losses	$ 103,000
Unfunded commitments
Financing Receivable, Allowance for Credit Loss [Line Items]
Increase for allowance for loan losses		0	442,000	$ 442,000
Other commitments		377,600,000	382,300,000
Standby letters of credit
Financing Receivable, Allowance for Credit Loss [Line Items]
Other commitments		$ 14,600,000	$ 15,200,000

Deposits

9 Months Ended

Sep. 30, 2023

Deposits [Abstract]

Deposits

Deposits were $2.76 billion and $2.80 billion as of September 30, 2023 and December 31, 2022, respectively. The $39.0 million decrease was primarily a result of the changing interest rate environment impacting customer deposit movement and activity, combined with normal tax payments. Also in 2023, there was a deposit mix shift between deposit categories as customers moved funds from lower yielding categories to higher yielding categories. Deposits are summarized below:


(in thousands)	September 30, 2023		December 31, 2022
Noninterest-bearing demand deposits	$	972,155	$	1,090,539
Interest-bearing deposits:
Interest-bearing demand deposits	145,764		89,144
NOW accounts	382,047		503,308
Money market accounts	531,740		578,161
Savings accounts	178,933		195,479
Time deposits less than or equal to $250,000	380,564		250,875
Time deposits greater than $250,000	168,690		91,430
Total interest-bearing deposits	1,787,738		1,708,397
Total deposits	$	2,759,893	$	2,798,936

Collateral for Deposits

As of September 30, 2023 and December 31, 2022, securities and FHLB letters of credit with values of approximately $210.0 million and $268.6 million, respectively, were pledged as collateral to secure public entity deposits.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

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 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 that 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, 2022, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

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

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.

On January 1, 2023, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which significantly changed the impairment model for most financial assets that are measured at amortized cost, including loans HFI, securities, and unfunded commitments, from an incurred loss model to an expected loss model. Accounting policies related to the allowance for credit losses are considered critical as these policies involve considerable subjective judgment and estimation by management. Changes in factors and forecasts used in evaluating the overall loan portfolio may result in significant changes in the allowance for credit losses and related provision expense in future periods. The allowance level is influenced by loan portfolio growth, changes in the quality and composition of the loan portfolio, the level of nonperforming loans, delinquency and charge-off trends, current economic conditions, forecasted information, and other conditions influencing loss expectations. Changes to the assumptions in the model in future periods could have a material impact on the Company’s Consolidated Financial Statements. Refer to “- Accounting Standards Adopted in 2023” for a detailed discussion on the Company’s methodologies for estimating expected credit losses.

Accounting Standards Adopted in 2023

ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. On January 1, 2023, the Company adopted ASC 326, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans HFI, securities HTM, and unfunded commitments. In addition, ASC 326 made changes to the accounting for securities AFS, which requires credit losses to be presented as an allowance rather than as a write-down on securities AFS that management does not intend to sell or believes that it is more likely than not that the Company will have the ability to hold until each security has recovered its cost basis.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and unfunded commitments. Results for reporting periods beginning after January 1, 2023, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a $569,000, net of tax, decrease to stockholders’ equity as of January 1, 2023, for the cumulative effect of

adopting ASC 326. The transition adjustment included a $278,000 increase to the December 31, 2022 allowance for loan losses and established a $442,000 reserve for unfunded commitments as presented in the following table.


(in thousands)	December 31, 2022 ALL		Impact of ASC 326 Adoption		January 1, 2023 ACL
Real estate:
Commercial real estate	$	7,720	$	876	$	8,596
One-to-four family residential	5,682		1,231		6,913
Construction and development	1,654		(444)		1,210
Commercial and industrial	4,350		(822)		3,528
SBA PPP, net of deferred income	—		—		—
Tax-exempt	751		(427)		324
Consumer	471		(136)		335
Total	$	20,628	$	278	$	20,906

Reserve for unfunded commitments	$	—	$	442	$	442

Loans Held for Investment

Loans that management has the intent and ability to hold, for the foreseeable future or until maturity or payoff, are reported at amortized cost. Amortized cost is the principal balance outstanding, net of deferred fees and costs. Accrued interest receivable is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on loans is discontinued, and the loans are placed on nonaccrual status at the time the loan is 90 days past due unless the loan is well secured and in process of collection. Loans, excluding credit cards, are charged-off to the extent management is relatively certain that principal and interest will be uncollectible. Credit card loans continue to accrue interest until they are charged-off no later than 120 days past due unless the loan is in the process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed on nonaccrual status, uncollected accrued interest is reversed, reducing interest income, and future income accrual is discontinued. Subsequent payments, if any, of interest and fees are applied as reductions to the loan’s outstanding principal balance. Once the principal balance of a loan placed on nonaccrual status has been fully recovered, subsequent payments received are recognized as interest income on a cash basis. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Credit Losses - Loans

The ACL is a valuation account that is deducted from the amortized cost basis of loans HFI to present management’s best estimate of the expected credit losses to be collected over the lifetime of the loans. The amount of the ACL should not be interpreted as an indication that charge-offs in future periods will necessarily occur in those amounts, or at all. Loans are charged-off against the allowance when management is relatively certain that principal and interest will be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Subsequent recoveries, if any, are credited to the allowance.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. This reasonable and supportable forecast period is currently one year and incorporates Company and peer historical losses. After the forecast period, the Company reverts to an average historical loss rate over a two-year period. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in economic conditions, such as changes in unemployment rates, property values, or other relevant factors. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the Company’s historic loss factors. The determination of the amount of allowance involves a high degree of judgement and subjectivity.

The ACL is measured on a collective pool basis when similar risk characteristics and risk profiles exist. The Company utilizes cohort loss rate (static pool analysis) and remaining life loss rate methodologies to estimate the quantitative portion of the ACL for loan pools. The cohort loss rate methodology tracks a closed pool of loans over their remaining lives

to determine their loss behavior. The remaining life loss rate methodology takes the calculated loss rate and applies that rate to a pool of loans on a periodic basis based on the remaining life expectation of that pool.

The portfolio pools are based primarily on regulatory call report codes. These pools and certain of the inherent risks in the Company’s loan portfolio are summarized in the following table.


Loan Pool			Risk Characteristics
Residential construction			This category consists of loans to residential developers and to individual clients for construction of single-family homes. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, and change in market trends.
Commercial construction			This category consists of loans to small and medium-sized businesses to construct owner occupied facilities and developers of commercial real estate investment properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, change in market trends, and the ability to sell the property upon completion.
Farmland			This category consists of loans secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing/pastureland, and timberland. Risks inherent in this portfolio pool include adverse changes in climate, fluctuations in feed and livestock prices, and changes in property values.
Home equity loans and lines			This category consists of home equity loans and lines of credit. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment.
Secured closed-liens			This category consists of loans secured by primary and secondary liens on residential real estate. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment. Generally, these loans are for longer terms than home equity loans and lines of credit.
Multifamily			This category consists of loans secured by apartment or residential buildings with five or more units used to accommodate households on a temporary or permanent basis. Risks inherent in this portfolio pool include local unemployment rates, changes in the local economy, and factors that would impact property values.
Owner occupied commercial real estate			This category consists of loans to established operating companies and secured by owner occupied offices and industrial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, environmental contamination, and the quality of the borrower’s management.
Non-owner occupied commercial real estate			This category consists of loans to developers and other persons or entities and secured by non-owner occupied commercial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, tenant vacancy rates, environmental contamination, and the quality of the borrower’s management.
Commercial and industrial			This category consists of secured and unsecured loans to purchase capital equipment, agriculture operating loans, and other business loans for working capital and operating purposes. Secured loans are primarily secured by accounts receivable, inventory, and other business assets. The performance of commercial and industrial loans may be adversely affected by, among other factors, conditions specific to the relevant industry, fluctuations in the value of the collateral, and individual performance factors related to the borrower such as the quality of the borrower’s management.
Consumer			This category consists of loans to individuals for household, family, and other personal use. Risks inherent in this portfolio pool include the borrower’s financial condition, local unemployment rates, local economic conditions, and the interest rate environment.
Tax-exempt			This category consists of loans to political subdivisions primarily of the State of Louisiana including parishes, municipalities, utility districts, school districts, and development authorities. These loans undergo the same underwriting as any of the Company’s other loans and are typically paid for by ad valorem taxes or specific revenue sources.
Other loans			This category consists of loans not included in any other category. Risks inherent in this portfolio pool include local unemployment rates, local economic conditions, and the interest rate environment.

Loans that do not share similar risk characteristics are evaluated on an individual basis and excluded from the collective evaluation. For loans evaluated on an individual basis that are collateral dependent, the specific allowance is estimated by calculating the difference between the fair value of the underlying collateral less estimated selling costs and the Bank’s exposure. If the loan is not collateral dependent, the discounted cash flow methodology is used. Either of these determinations are highly subjective and based on information available at the time of valuation.

Reserve for Unfunded Commitments

Commitments to extend credit are agreements to lend to a customer if all conditions of the commitment have been met. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The reserve for unfunded commitments is recorded within accrued interest payable on the consolidated balance sheets, and the related provision is recorded in other operating expenses on the consolidated statements of income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The loss rates computed for each pool and expected pool-level funding rates are applied to the related unfunded commitment balance to obtain the reserve amount.

Securities AFS

ASC 326 requires the Company to measure expected credit losses on securities AFS. Impairment is evaluated when there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management evaluates each security by considering the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, volatility of the security’s fair value, and historical loss information for financial assets secured with similar collateral, along with other factors. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the investments. If a decline in the fair value related to creditworthiness or other factors is determined, an ACL will be calculated using a discounted cash flow method, whereby management will compare the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses in the consolidated statements of income. Accrued interest receivable is excluded from the amortized cost basis in measuring expected credit losses on the investment securities and no ACL is recorded on accrued interest receivable. The Company’s current securities AFS portfolio consists of U.S. Treasury securities, mortgage-backed securities, U.S. agency securities, and municipal bonds. The Company’s securities AFS, other than the municipal bonds, are considered treasuries, agencies, and instrumentalities of the U.S. government, which have a zero credit loss assumption. These securities have the full faith and credit backing of the U.S. government or one of its agencies. Municipal bonds AFS do not fall under the zero credit loss assumption and are evaluated quarterly using the considerations mentioned above to determine whether there is a credit loss associated with a decline in fair value. Due to the zero credit loss assumption and the considerations applied to the securities AFS, no ACL was recorded on January 1, 2023 for securities AFS.

Securities HTM

ASC 326 requires the Company to measure expected credit losses on securities HTM. Securities HTM are measured on a collective basis by major security type with those sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the securities HTM portfolio. Management monitors the HTM portfolio to determine whether an ACL should be recorded. The Company’s current securities HTM portfolio consists of mortgage-backed securities and U.S. agency securities. The Company’s securities HTM are considered agencies and instrumentalities of the U.S. government that have a zero credit loss assumption. These securities have the full faith and credit backing of the U.S. government or one of its agencies. Due to the zero credit loss assumption, no ACL was recorded on January 1, 2023 for securities HTM.

ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this update address how to determine whether a contract liability is recognized by the acquirer in a business combination. The amendment also resolves the inconsistency of post-acquisition revenue recognition by providing specific guidance on how to recognize and measure acquired contract assets and contract liabilities from revenue contracts in a business combination. On January 1, 2023, the Company adopted ASU No. 2021-08. Adoption of this ASU did not have an impact on the Company’s consolidated financial statements.

ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The guidance issued in this update eliminates the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors, but also enhances the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The guidance requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments – Credit Losses – Measured at

Amortized Cost. On January 1, 2023, the Company adopted ASU No. 2022-02 on a prospective basis. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. The guidance issued in this update addresses two issues. First, the standard requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is a lease, the accounting for the lease is treated the same as an arrangement with an unrelated party. This is a change in the requirement under Topic 840, Leases, which used the basis of economic substance. Secondly, the standard requires leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group as long as the lessee controls the use of the underlying asset. If the lessor obtained control of the use of the underlying asset through a lease with another entity not within the common control group, the amortization period may not exceed the amortization period of the common control group. If the lessee no longer controls the use of the underlying asset, the improvement is accounted for as a transfer between entities under common control through an adjustment to equity. These leasehold improvements are subject to the impairment guidance in Topic 360 Property, Plant and Equipment. Both items of this amendment are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted for both interim periods and annual financial statements that have not been issued. On January 1, 2023, the Company early adopted ASU No. 2023-01, and it did not have an impact on the Company’s consolidated financial statements.

ASU No. 2023-03, Presentation of Financial Statements (Topic 205), Income Statement - Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation - Stock Compensation (Topic 718). The guidance in this update amends various SEC paragraphs relating to financial disclosures. This update is an alignment of SEC and GAAP reporting. This update was issued in the third quarter of 2023 and was effective upon issuance. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements

As of September 30, 2023, there were no recent accounting pronouncements that were applicable and not adopted.

Loans and Asset Quality - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Nonaccrual with No ACL	$ 711
Nonaccrual with ACL	1,113
Total Nonaccrual	1,824	$ 2,364
Real estate \| Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Nonaccrual with No ACL	0
Nonaccrual with ACL	715
Total Nonaccrual	715	720
Real estate \| One-to-four family residential
Financing Receivable, Credit Quality Indicator [Line Items]
Nonaccrual with No ACL	0
Nonaccrual with ACL	297
Total Nonaccrual	297	243
Real estate \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Nonaccrual with No ACL	0
Nonaccrual with ACL	0
Total Nonaccrual	0	9
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Nonaccrual with No ACL	711
Nonaccrual with ACL	8
Total Nonaccrual	719	1,291
SBA PPP, net of deferred income
Financing Receivable, Credit Quality Indicator [Line Items]
Nonaccrual with No ACL	0
Nonaccrual with ACL	0
Total Nonaccrual	0	0
Tax-exempt
Financing Receivable, Credit Quality Indicator [Line Items]
Nonaccrual with No ACL	0
Nonaccrual with ACL	0
Total Nonaccrual	0	0
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Nonaccrual with No ACL	0
Nonaccrual with ACL	93
Total Nonaccrual	$ 93	$ 101

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Impact of ASC 326 Adoption	Common Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Impact of ASC 326 Adoption	Accumulated Other Comprehensive Income (Loss)
Balance at the beginning of period (in shares) at Dec. 31, 2021			7,180,155
Balance in the beginning of period at Dec. 31, 2021	$ 298,150		$ 60,233	$ 1,814	$ 239,876		$ (3,773)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,392				7,392
Stock incentive plan	63			63
Issuance of shares of common stock as board compensation (in shares)			675
Issuance of shares of common stock as board compensation	35		$ 35
Repurchase of common stock under stock repurchase program (in shares)			(4,465)
Repurchase of common stock under stock repurchase program	(218)		$ (218)
Cash dividend	(502)				(502)
Other comprehensive income (loss)	(40,046)						(40,046)
Balance at the end of period (in shares) at Mar. 31, 2022			7,176,365
Balance at the end of period at Mar. 31, 2022	264,874		$ 60,050	1,877	246,766		(43,819)
Balance at the beginning of period (in shares) at Dec. 31, 2021			7,180,155
Balance in the beginning of period at Dec. 31, 2021	298,150		$ 60,233	1,814	239,876		(3,773)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,725
Other comprehensive income (loss)	(79,971)
Balance at the end of period (in shares) at Sep. 30, 2022			7,183,915
Balance at the end of period at Sep. 30, 2022	243,413		$ 60,050	2,014	265,093		(83,744)
Balance at the beginning of period (in shares) at Dec. 31, 2021			7,180,155
Balance in the beginning of period at Dec. 31, 2021	$ 298,150		$ 60,233	1,814	239,876		(3,773)
Balance at the end of period (in shares) at Dec. 31, 2022	7,183,915		7,183,915
Balance at the end of period at Dec. 31, 2022	$ 265,753	$ (569)	$ 60,050	2,088	274,781	$ (569)	(71,166)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Balance at the beginning of period (in shares) at Mar. 31, 2022			7,176,365
Balance in the beginning of period at Mar. 31, 2022	$ 264,874		$ 60,050	1,877	246,766		(43,819)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,147				9,147
Stock incentive plan	63			63
Cash dividend	(503)				(503)
Other comprehensive income (loss)	(19,985)						(19,985)
Balance at the end of period (in shares) at Jun. 30, 2022			7,176,365
Balance at the end of period at Jun. 30, 2022	253,596		$ 60,050	1,940	255,410		(63,804)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,186				10,186
Stock incentive plan	74			74
Issuance of restricted shares of common stock through stock incentive plan, net (in shares)			7,550
Cash dividend	(503)				(503)
Other comprehensive income (loss)	(19,940)						(19,940)
Balance at the end of period (in shares) at Sep. 30, 2022			7,183,915
Balance at the end of period at Sep. 30, 2022	$ 243,413		$ 60,050	2,014	265,093		(83,744)
Balance at the beginning of period (in shares) at Dec. 31, 2022	7,183,915		7,183,915
Balance in the beginning of period at Dec. 31, 2022	$ 265,753	(569)	$ 60,050	2,088	274,781	(569)	(71,166)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,598				9,598	(569)
Stock incentive plan	69			69
Forfeiture of restricted shares of common stock (in shares)			(1,130)
Issuance of shares of common stock as board compensation (in shares)			1,660
Issuance of shares of common stock as board compensation	84		$ 84
Repurchase of common stock under stock repurchase program (in shares)			(6,795)
Repurchase of common stock under stock repurchase program	(346)		$ (346)
Cash dividend	(574)				(574)
Other comprehensive income (loss)	2,625						2,625
Balance at the end of period (in shares) at Mar. 31, 2023			7,177,650
Balance at the end of period at Mar. 31, 2023	$ 276,640		$ 59,788	2,157	283,236		(68,541)
Balance at the beginning of period (in shares) at Dec. 31, 2022	7,183,915		7,183,915
Balance in the beginning of period at Dec. 31, 2022	$ 265,753	$ (569)	$ 60,050	2,088	274,781	(569)	(71,166)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 26,587					$ (569)
Repurchase of common stock under stock repurchase program (in shares)	(42,250)
Repurchase of common stock under stock repurchase program	$ (2,100)
Other comprehensive income (loss)	$ (6,320)
Balance at the end of period (in shares) at Sep. 30, 2023	7,150,685		7,150,685
Balance at the end of period at Sep. 30, 2023	$ 281,951		$ 58,031	2,327	299,079		(77,486)
Balance at the beginning of period (in shares) at Mar. 31, 2023			7,177,650
Balance in the beginning of period at Mar. 31, 2023	276,640		$ 59,788	2,157	283,236		(68,541)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,968				8,968
Stock incentive plan	91			91
Issuance of restricted shares of common stock through stock incentive plan, net (in shares)			9,300
Repurchase of common stock under stock repurchase program (in shares)			(11,894)
Repurchase of common stock under stock repurchase program	(601)		$ (601)
Cash dividend	(574)				(574)
Other comprehensive income (loss)	(1,152)						(1,152)
Balance at the end of period (in shares) at Jun. 30, 2023			7,175,056
Balance at the end of period at Jun. 30, 2023	283,372		$ 59,187	2,248	291,630		(69,693)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,021				8,021
Stock incentive plan	$ 79			79
Forfeiture of restricted shares of common stock (in shares)			(810)
Repurchase of common stock under stock repurchase program (in shares)	(23,561)		(23,561)
Repurchase of common stock under stock repurchase program	$ (1,156)		$ (1,156)
Cash dividend	(572)				(572)
Other comprehensive income (loss)	$ (7,793)						(7,793)
Balance at the end of period (in shares) at Sep. 30, 2023	7,150,685		7,150,685
Balance at the end of period at Sep. 30, 2023	$ 281,951		$ 58,031	$ 2,327	$ 299,079		$ (77,486)

Loans and Asset Quality

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Loans and Asset Quality

Loans

Loans HFI by category and loans HFS are summarized below:



(in thousands)	September 30, 2023		December 31, 2022
Real estate:
Commercial real estate	$	829,836	$	794,723
One-to-four family residential	579,023		543,511
Construction and development	119,647		157,364
Commercial and industrial	315,388		310,053
SBA PPP, net of deferred income	10		14
Tax-exempt	74,703		83,166
Consumer	29,999		27,436
Total loans HFI	$	1,948,606	$	1,916,267
Total loans HFS	$	2,348	$	518

Accrued interest receivable on loans HFI totaled $6.0 million and $5.8 million as of September 30, 2023 and December 31, 2022, respectively, and was reported in accrued interest receivable on the accompanying consolidated balance sheets.

Allowance for Credit Losses

Effective January 1, 2023, the Company adopted the provisions of ASC 326 using the modified retrospective method. For reporting periods beginning on and after January 1, 2023, the Company maintains an ACL on all loans that reflects management’s estimate of expected credit losses for the full life of the loan portfolio.

The following table summarizes the activity in the ACL by category for the nine months ended September 30, 2023:


(in thousands)	Beginning Balance December 31, 2022		Impact of ASC 326 Adoption		Provision for Credit Losses		Charge-offs		Recoveries		Ending Balance September 30, 2023
Real Estate:
Commercial real estate	$	7,720	$	876	$	53	$	—	$	—	$	8,649
One-to-four family residential	5,682		1,231		554		—		8		7,475
Construction and development	1,654		(444)		32		(9)		—		1,233
Commercial and industrial	4,350		(822)		(562)		(51)		25		2,940
SBA PPP, net of deferred income	—		—		—		—		—		—
Tax-exempt	751		(427)		255		—		—		579
Consumer	471		(136)		153		(288)		107		307
Total allowance for credit losses	$	20,628	$	278	$	485	$	(348)	$	140	$	21,183

Allowance for Loan Losses

For reporting periods prior to January 1, 2023, the Company maintained an ALL on loans that represented management’s estimate of probable losses incurred in the portfolio category.

The following table summarizes the activity in the allowance for loan losses by category for the twelve months ended December 31, 2022:


(in thousands)	Beginning Balance December 31, 2021		Provision for Loan Losses		Charge-offs		Recoveries		Ending Balance December 31, 2022
Real estate:
Commercial real estate	$	6,749	$	970	$	—	$	1	$	7,720
One-to-four family residential	5,375		296		—		11		5,682
Construction and development	1,326		328		(18)		18		1,654
Commercial and industrial	4,440		(137)		(39)		86		4,350
SBA PPP, net of deferred income	25		(25)		—		—		—
Tax-exempt	749		2		—		—		751
Consumer	512		316		(490)		133		471
Total allowance for loan losses	$	19,176	$	1,750	$	(547)	$	249	$	20,628

Nonaccrual and Past Due Loans

The following table presents nonaccrual loans as of September 30, 2023:


(in thousands)	Nonaccrual with No ACL		Nonaccrual with ACL		Total Nonaccrual
Real estate:
Commercial real estate	$	—	$	715	$	715
One-to-four family residential	—		297		297
Construction and development	—		—		—
Commercial and industrial	711		8		719
SBA PPP, net of deferred income	—		—		—
Tax-exempt	—		—		—
Consumer	—		93		93
Total loans HFI	$	711	$	1,113	$	1,824

No material interest income was recognized in the consolidated statements of income on nonaccrual loans for the nine months ended September 30, 2023 and 2022.

The following table presents the aging analysis of the past due loans and loans 90 days or more past due and still accruing interest by loan category as of September 30, 2023:


	Past Due
(in thousands)	30-59 Days		60-89 Days		90 Days or More		Current		Total Loans HFI		90 Days or More Past Due and Accruing
Real estate:
Commercial real estate	$	8	$	—	$	747	$	829,081	$	829,836	$	69
One-to-four family residential	595		47		322		578,059		579,023		149
Construction and development	382		—		—		119,265		119,647		—
Commercial and industrial	121		279		714		314,274		315,388		—
SBA PPP, net of deferred income	—		—		—		10		10		—
Tax-exempt	—		—		—		74,703		74,703		—
Consumer	60		12		4		29,923		29,999		4
Total loans HFI	$	1,166	$	338	$	1,787	$	1,945,315	$	1,948,606	$	222

The following table presents the current, past due, and nonaccrual loans by loan category as of December 31, 2022:


	Accruing
(in thousands)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonaccrual		Total Loans
Real estate:
Commercial real estate	$	793,540	$	463	$	—	$	720	$	794,723
One-to-four family residential	542,666		602		—		243		543,511
Construction and development	157,355		—		—		9		157,364
Commercial and industrial	308,597		165		—		1,291		310,053
SBA PPP, net of deferred income	14		—		—		—		14
Tax-exempt	83,166		—		—		—		83,166
Consumer	27,291		42		2		101		27,436
Total loans HFI	$	1,912,629	$	1,272	$	2	$	2,364	$	1,916,267

Impaired Loans

For reporting periods prior to January 1, 2023, when ASC 326 was adopted, the Company individually evaluated impaired loans, including TDRs and performing and nonperforming loans. Once a loan was deemed to be impaired, the difference between the loan value and the Bank’s exposure was charged-off or a specific reserve was established.

Information pertaining to impaired loans as of December 31, 2022, is as follows:


(in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment
With no related allowance recorded:
Real estate:
Commercial real estate	$	3,804	$	3,796	$	—	$	3,194
One-to-four family residential	1,458		1,387		—		797
Construction and development	9		9		—		104
Commercial and industrial	51		51		—		58
SBA PPP, net of deferred income	—		—		—		—
Tax-exempt	—		—		—		—
Consumer	26		26		—		9
Total with no related allowance	5,348		5,269		—		4,162
With allowance recorded:
Real estate:
Commercial real estate	717		717		15		1,264
One-to-four family residential	120		120		16		48
Construction and development	—		—		—		—
Commercial and industrial	1,360		1,351		172		623
SBA PPP, net of deferred income	—		—		—		—
Tax-exempt	—		—		—		—
Consumer	113		111		111		122
Total with related allowance	2,310		2,299		314		2,057
Total impaired loans	$	7,658	$	7,568	$	314	$	6,219

The interest income recognized on impaired loans for the year ended December 31, 2022 was $252,000.

Loan Modifications

The Company adopted ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures effective January 1, 2023, using the prospective method. This ASU eliminates the TDR recognition and measurement guidance and requires all loan modifications to be evaluated based on whether the modification represents a new loan or a continuation of an existing loan. Modifications are made to a borrower experiencing financial difficulty, and the modified terms are in the form of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, or a term extension in the current reporting period. As of September 30, 2023, no loan modifications were made to borrowers experiencing financial difficulty that resulted in an other-than-insignificant delay in payment.

Troubled Debt Restructurings

For reporting periods prior to January 1, 2023, when ASC 326 was adopted, the restructuring of a loan was considered a TDR if the borrower was experiencing financial difficulties and the Bank had granted a concession.

A summary of loans modified as TDRs that occurred during the period indicated is as follows:


	For the Nine Months Ended
	September 30, 2022
		Recorded Investment
(dollars in thousands)	Loan Count	Pre Modification		Post Modification
Real estate:
Commercial real estate	1	$	50	$	50
One-to-four family residential	4	673		677
Construction and development	—	—		—
Commercial and industrial	—	—		—
SBA PPP, net of deferred income	—	—		—
Tax-exempt	—	—		—
Consumer	1	104		104
Total	6	$	827	$	831

The loans modified as TDRs during the nine months ended September 30, 2022 increased the allowance for loan losses by $103,000. Additionally, there were no defaults on loans during the nine months ended September 30, 2022, that had been modified as a TDR during the prior twelve months.

Credit Quality Indicators

Loans are categorized based on the degree of risk inherent in the credit and the ability of the borrower to service the debt. A description of the general characteristics of the Bank’s risk rating grades follows:

Pass - These loans are of satisfactory quality and do not require a more severe classification.

Special mention - This category includes loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan. However, the loss potential does not warrant substandard classification.

Substandard - Loans in this category have well-defined weaknesses that jeopardize normal repayment of principal and interest. Prompt corrective action is required to reduce exposure and to assure adequate remedial actions are taken by the borrower. If these weaknesses do not improve, loss is possible.

Doubtful - Loans in this category have well-defined weaknesses that make full collection improbable.

Loss - Loans classified in this category are considered uncollectible and charged-off to the allowance for credit losses.

As of September 30, 2023, the Company had no loans classified as doubtful or loss. The following table summarizes loans by risk rating and year of origination as of September 30, 2023:


	Year of Origination
(in thousands)	2023		2022		2021		2020		2019		Prior Years		Revolving Lines		Total
Real estate:
Commercial real estate
Pass	$	79,103	$	262,810	$	240,290	$	78,810	$	67,074	$	70,776	$	19,873	$	818,736
Special mention	73		—		3,217		—		1,059		4,239		—		8,588
Substandard	184		794		673		146		—		715		—		2,512


Total	$	79,360	$	263,604	$	244,180	$	78,956	$	68,133	$	75,730	$	19,873	$	829,836

One-to-four family residential
Pass	$	88,609	$	135,725	$	133,372	$	91,995	$	32,291	$	79,060	$	16,062	$	577,114
Special mention	—		—		—		—		—		262		—		262
Substandard	—		104		—		38		389		1,041		75		1,647


Total	$	88,609	$	135,829	$	133,372	$	92,033	$	32,680	$	80,363	$	16,137	$	579,023

Construction and development
Pass	$	31,448	$	68,315	$	13,986	$	1,925	$	2,214	$	1,040	$	719	$	119,647
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—


Total	$	31,448	$	68,315	$	13,986	$	1,925	$	2,214	$	1,040	$	719	$	119,647

Commercial and industrial
Pass	$	59,422	$	57,329	$	55,800	$	16,984	$	8,716	$	1,345	$	103,607	$	303,203
Special mention	27		959		4,798		—		423		1,782		3,251		11,240
Substandard	4		—		22		6		59		53		801		945


Total	$	59,453	$	58,288	$	60,620	$	16,990	$	9,198	$	3,180	$	107,659	$	315,388

SBA PPP, net of deferred income
Pass	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—


Total	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10

Tax-exempt
Pass	$	954	$	15,679	$	8,173	$	14,219	$	4,530	$	31,148	$	—	$	74,703
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—


Total	$	954	$	15,679	$	8,173	$	14,219	$	4,530	$	31,148	$	—	$	74,703

Consumer
Pass	$	15,813	$	8,505	$	2,680	$	1,095	$	466	$	184	$	1,127	$	29,870
Special mention	—		—		—		—		—		—		—		—
Substandard	—		26		—		—		—		94		9		129


Total	$	15,813	$	8,531	$	2,680	$	1,095	$	466	$	278	$	1,136	$	29,999

Total loans HFI	$	275,637	$	550,246	$	463,011	$	205,228	$	117,221	$	191,739	$	145,524	$	1,948,606

Current period gross charge-offs	$	7	$	15	$	—	$	—	$	9	$	2	$	315	$	348

The following table summarizes loans by risk rating as of December 31, 2022:


(in thousands)	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Real estate:
Commercial real estate	$	786,394	$	5,759	$	2,570	$	—	$	—	$	794,723
One-to-four family residential	542,112		62		1,337		—		—		543,511
Construction and development	157,355		—		9		—		—		157,364
Commercial and industrial	297,152		11,428		1,473		—		—		310,053
SBA PPP, net of deferred income	14		—		—		—		—		14
Tax-exempt	83,166		—		—		—		—		83,166
Consumer	27,298		—		138		—		—		27,436
Total loans HFI	$	1,893,491	$	17,249	$	5,527	$	—	$	—	$	1,916,267

Commitments to Extend Credit

Commitments to extend credit are agreements to lend to a customer if all conditions of the commitment have been met. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s evaluation of the customer’s ability to repay. As of September 30, 2023 and December 31, 2022, unfunded loan commitments totaled approximately $382.3 million and $377.6 million, respectively.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. As of September 30, 2023 and December 31, 2022, commitments under standby letters of credit totaled approximately $15.2 million and $14.6 million, respectively. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Effective January 1, 2023, the Company adopted the provision of ASC 326 using the modified retrospective method and established a reserve for unfunded commitments based on estimates of expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. As of September 30, 2023, the reserve on unfunded commitments was $442,000.

Other Borrowed Funds	9 Months Ended
Other Borrowed Funds	Sep. 30, 2023
Debt Disclosure [Abstract]
Other Borrowed Funds	Other Borrowed FundsThe Company has established various lines of credit with the FHLB and other correspondent banks to provide additional sources of operating funds. The Company’s FHLB line of credit is collateralized by eligible Red River Bank loans. As of June 30, 2023, the Company had $60.0 million in short-term advances at an interest rate of 5.49% from the FHLB under its existing line of credit. The $60.0 million advance matured and was repaid in July 2023. As of September 30, 2023, the Company had no outstanding borrowings.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
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+ Details

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares, issued (in shares)	7,150,685	7,183,915
Common stock, shares, outstanding (in shares)	7,150,685	7,183,915

Summary of Significant Accounting Policies - Summary of Allowance of Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jan. 01, 2023	Dec. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	$ 21,183	$ 20,906	$ 20,628	$ 19,176
Unfunded commitments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	442	442	0
Real estate \| Commercial real estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	8,649	8,596	7,720	6,749
Real estate \| One-to-four family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	7,475	6,913	5,682	5,375
Real estate \| Construction and development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	1,233	1,210	1,654	1,326
Commercial and industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	2,940	3,528	4,350	4,440
SBA PPP, net of deferred income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	0	0	0	25
Tax-exempt
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	579	324	751	749
Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss	$ 307	$ 335	471	$ 512
Impact of ASC 326 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss			278
Impact of ASC 326 Adoption \| Unfunded commitments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss			442
Impact of ASC 326 Adoption \| Real estate \| Commercial real estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss			876
Impact of ASC 326 Adoption \| Real estate \| One-to-four family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss			1,231
Impact of ASC 326 Adoption \| Real estate \| Construction and development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss			(444)
Impact of ASC 326 Adoption \| Commercial and industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss			(822)
Impact of ASC 326 Adoption \| SBA PPP, net of deferred income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss			0
Impact of ASC 326 Adoption \| Tax-exempt
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss			(427)
Impact of ASC 326 Adoption \| Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit loss			$ (136)

Securities - Schedule of AFS Debt Securities, By Maturity Date (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized Cost
Within one year	$ 98,990
After one year but within five years	62,186
After five years but within ten years	84,066
After ten years	367,122
Total Securities AFS	612,364	$ 688,539
Fair Value
Within one year	97,219
After one year but within five years	58,778
After five years but within ten years	75,198
After ten years	297,851
Total Securities AFS	529,046
Amortized Cost
Within one year	0
After one year but within five years	0
After five years but within ten years	919
After ten years	142,501
Total Securities HTM	143,420
Fair Value
Within one year	0
After one year but within five years	0
After five years but within ten years	776
After ten years	116,431
Total Securities HTM	$ 117,207	$ 132,407

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.08	$ 0.08	$ 0.08	$ 0.07	$ 0.07	$ 0.07

Regulatory Capital Requirements

9 Months Ended

Sep. 30, 2023

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Regulatory Capital Requirements

The Company and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Basel III Capital Requirements

The Company and the Bank are subject to Basel III capital guidelines. Basel III requires the Company and the Bank to maintain certain minimum ratios to meet capital adequacy requirements. It is management’s belief that, as of September 30, 2023, both the Company and the Bank met all capital adequacy requirements under Basel III. Management expects that the capital ratios for the Company and the Bank under Basel III will continue to exceed capital adequacy requirements. The Company believes that, as of September 30, 2023, it is well capitalized under the regulatory framework for prompt corrective action.

Bank holding companies that qualify as “small bank holding companies” under the Policy Statement are exempt from the Federal Reserve’s consolidated capital adequacy ratios at the holding company level and instead are evaluated at the bank level. In May 2018, the Economic Growth Act was enacted. One of the Economic Growth Act’s highlights, with implications for us, was the asset threshold under the Policy Statement being increased from $1.0 billion to $3.0 billion, which benefits bank holding companies by, among various other items, allowing for an 18-month safety and soundness examination cycle as opposed to a 12-month examination cycle, changing to scaled biannual regulatory reporting requirements as opposed to quarterly regulatory reporting requirements, and not subjecting bank holding companies to capital adequacy guidelines on a consolidated basis. Because the Company had less than $3.0 billion in assets as of each of the June 30th measurement dates starting with the Economic Growth Act’s enactment and going through June 30, 2021, the Company has received benefits under the Policy Statement through 2022, except with regard to the timing of the Red River Bank safety and soundness exam by the FDIC and the OFI. Due to the timing of the asset balance determination for the Red River Bank safety and soundness examination, a 12-month examination cycle began in the second half of 2022. As of June 30, 2022, the Company had more than $3.0 billion in assets. Therefore, effective January 1, 2023, the Company no longer receives any benefits under the Policy Statement and became subject to consolidated capital requirements. As of June 30, 2023, the last applicable measurement date, the Company has more than $3.0 billion in assets.

Capital amounts and ratios for the Company as of September 30, 2023 and December 31, 2022, are presented in the following table:


					Regulatory Requirements
	Actual				Minimum(1)				Well Capitalized(2)
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount	Ratio
September 30, 2023
Total Risk-Based Capital	$	379,516	18.35	%	$	217,143	10.50	%	N/A	N/A
Tier I Risk-Based Capital	$	357,891	17.31	%	$	175,782	8.50	%	N/A	N/A
Common Equity Tier I Capital	$	357,891	17.31	%	$	144,762	7.00	%	N/A	N/A
Tier I Leverage Capital	$	357,891	11.56	%	$	123,798	4.00	%	N/A	N/A

December 31, 2022
Total Risk-Based Capital	$	356,001	17.39	%	N/A		N/A		N/A	N/A
Tier I Risk-Based Capital	$	335,373	16.38	%	N/A		N/A		N/A	N/A
Common Equity Tier I Capital	$	335,373	16.38	%	N/A		N/A		N/A	N/A
Tier I Leverage Capital	$	335,373	10.71	%	N/A		N/A		N/A	N/A

(1)Due to the full phase-in of the CCB, these are the Basel III regulatory minimum amounts and ratios. These amounts and ratios were labeled as “Minimum Plus CCB” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and prior filings.

(2)This column refers to the prompt corrective action requirements applicable to banks. Bank holding companies are not subject to prompt corrective action requirements.

Capital amounts and ratios for the Bank as of September 30, 2023 and December 31, 2022, are presented in the following table:


					Regulatory Requirements
	Actual				Minimum(1)				Well Capitalized(2)
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2023
Total Risk-Based Capital	$	370,912	17.94	%	$	217,091	10.50	%	$	206,753	10.00	%
Tier I Risk-Based Capital	$	349,287	16.89	%	$	175,740	8.50	%	$	165,402	8.00	%
Common Equity Tier I Capital	$	349,287	16.89	%	$	144,727	7.00	%	$	134,389	6.50	%
Tier I Leverage Capital	$	349,287	11.29	%	$	123,763	4.00	%	$	154,704	5.00	%

December 31, 2022
Total Risk-Based Capital	$	344,867	16.85	%	$	214,915	10.50	%	$	204,681	10.00	%
Tier I Risk-Based Capital	$	324,239	15.84	%	$	173,979	8.50	%	$	163,745	8.00	%
Common Equity Tier I Capital	$	324,239	15.84	%	$	143,277	7.00	%	$	133,043	6.50	%
Tier I Leverage Capital	$	324,239	10.35	%	$	125,252	4.00	%	$	156,565	5.00	%

(2)This column refers to the prompt corrective action requirements applicable to banks.

Community Bank Leverage Ratio Framework

As part of the directive under the Economic Growth Act, in September 2019, the FDIC and other federal bank regulatory agencies approved the CBLR framework. This optional framework became effective January 1, 2020, and is available to the Company and the Bank as an alternative to the Basel III risk-based capital framework. The CBLR framework provides for a simple measure of capital adequacy for certain community banking organizations. Specifically, depository institutions and depository institution holding companies that have less than $10.0 billion in total consolidated assets and meet other qualifying criteria, including a Tier 1 leverage ratio of greater than 9.00%, are considered qualifying community banking organizations eligible to opt into the CBLR framework and replace the applicable Basel III risk-based capital requirements.

As of September 30, 2023, the Company and the Bank qualify for the CBLR framework. Management does not intend to utilize the CBLR framework.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Securities - Narrative (Details)	3 Months Ended		9 Months Ended		12 Months Ended
Securities - Narrative (Details)	Sep. 30, 2023 USD ($) security	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) security	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jan. 01, 2023 USD ($)
Investments, Debt and Equity Securities [Abstract]
Securities	$ 675,300,000		$ 675,300,000
Securities available-for-sale, at fair value	529,046,000		529,046,000		$ 614,407,000
Unrealized loss for debt securities, increase			9,200,000
Accumulated unrealized loss on AFS securities	83,300,000		83,300,000
Securities held-to-maturity, at amortized cost	143,420,000		143,420,000		151,683,000
Maturities, principal repayments, and calls			118,900,000
Securities purchased			34,581,000	$ 313,514,000
Securities sold			0	31,762,000
Held-to-maturity, purchase			0
Held-to-maturity, sale			0
Available-for-sale, allowance for credit loss	0		0			$ 0
Held-to-maturity, allowance for credit loss	0		0			$ 0
Accrued interest receivables, available for sale and held to maturity securities	$ 2,600,000		$ 2,600,000		3,000,000
Available-for-sale, number of securities in unrealized loss positions \| security	554		554
Held-to-maturity, number of securities in unrealized loss positions \| security	554		554
Securities in a loss position as a proportion of total AFS securities (as a percent)	14.49%		14.49%
Securities in a loss position as a proportion of total HTM securities (as a percent)	14.49%		14.49%
Equity securities, at fair value	$ 2,833,000		$ 2,833,000		9,979,000
Loss on equity securities	113,000	$ 0	145,000	447,000	468,000
Sale of equity securities			7,000,000	$ 7,399,000
Securities pledged as collateral	$ 232,700,000		$ 232,700,000		$ 191,200,000

Securities - Schedule of Securities With Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Less than twelve months
Gross Unrealized Losses	$ (517)	$ (26,014)
Fair Value	18,529	331,117
Twelve months or more
Gross Unrealized Losses	(82,807)	(48,124)
Fair Value	508,420	282,149
Less than twelve months
Gross Unrealized Losses	0	(19,276)
Fair Value	0	132,407
Twelve months or more
Gross Unrealized Losses	(26,213)	0
Fair Value	117,207	0
Mortgage-backed securities
Less than twelve months
Gross Unrealized Losses	(94)	(10,214)
Fair Value	4,220	105,030
Twelve months or more
Gross Unrealized Losses	(36,799)	(21,058)
Fair Value	208,564	135,607
Less than twelve months
Gross Unrealized Losses	0	(19,142)
Fair Value	0	131,629
Twelve months or more
Gross Unrealized Losses	(26,070)	0
Fair Value	116,431	0
Municipal bonds
Less than twelve months
Gross Unrealized Losses	(418)	(11,340)
Fair Value	7,347	84,691
Twelve months or more
Gross Unrealized Losses	(40,751)	(23,879)
Fair Value	164,596	98,607
U.S. Treasury securities
Less than twelve months
Gross Unrealized Losses	0	(3,852)
Fair Value	0	131,107
Twelve months or more
Gross Unrealized Losses	(3,247)	(2,050)
Fair Value	118,862	39,371
U.S. agency securities
Less than twelve months
Gross Unrealized Losses	(5)	(608)
Fair Value	6,962	10,289
Twelve months or more
Gross Unrealized Losses	(2,010)	(1,137)
Fair Value	16,398	8,564
Less than twelve months
Gross Unrealized Losses	0	(134)
Fair Value	0	778
Twelve months or more
Gross Unrealized Losses	(143)	0
Fair Value	$ 776	$ 0

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-38888
Entity Registrant Name	Red River Bancshares, Inc.
Entity Incorporation, State or Country Code	LA
Entity Tax Identification Number	72-1412058
Entity Address, Address Line One	1412 Centre Court Drive
Entity Address, Address Line Two	Suite 301
Entity Address, City or Town	Alexandria
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	71301
City Area Code	318
Local Phone Number	561-4000
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	RRBI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business Category	false
Entity Emerging Growth Category	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,131,766
Entity Central Index Key	0001071236
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Securities (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of debt securities available for sale

The amortized cost and estimated fair value of securities AFS and securities HTM are summarized in the following tables:


	September 30, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	249,746	$	—	$	(36,893)	$	212,853
Municipal bonds	213,112		—		(41,169)		171,943
U.S. Treasury securities	122,109		—		(3,247)		118,862
U.S. agency securities	27,397		6		(2,015)		25,388
Total Securities AFS	$	612,364	$	6	$	(83,324)	$	529,046

Securities HTM:
Mortgage-backed securities	$	142,501	$	—	$	(26,070)	$	116,431
U.S. agency securities	919		—		(143)		776
Total Securities HTM	$	143,420	$	—	$	(26,213)	$	117,207


	December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	272,253	$	—	$	(31,272)	$	240,981
Municipal bonds	219,305		6		(35,219)		184,092
U.S. Treasury securities	176,380		—		(5,902)		170,478
U.S. agency securities	20,601		—		(1,745)		18,856
Total Securities AFS	$	688,539	$	6	$	(74,138)	$	614,407

Securities HTM:
Mortgage-backed securities	$	150,771	$	—	$	(19,142)	$	131,629
U.S. agency securities	912		—		(134)		778
Total Securities HTM	$	151,683	$	—	$	(19,276)	$	132,407

Schedule of debt securities held-to-maturity

The amortized cost and estimated fair value of securities AFS and securities HTM are summarized in the following tables:


	September 30, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	249,746	$	—	$	(36,893)	$	212,853
Municipal bonds	213,112		—		(41,169)		171,943
U.S. Treasury securities	122,109		—		(3,247)		118,862
U.S. agency securities	27,397		6		(2,015)		25,388
Total Securities AFS	$	612,364	$	6	$	(83,324)	$	529,046

Securities HTM:
Mortgage-backed securities	$	142,501	$	—	$	(26,070)	$	116,431
U.S. agency securities	919		—		(143)		776
Total Securities HTM	$	143,420	$	—	$	(26,213)	$	117,207


	December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	272,253	$	—	$	(31,272)	$	240,981
Municipal bonds	219,305		6		(35,219)		184,092
U.S. Treasury securities	176,380		—		(5,902)		170,478
U.S. agency securities	20,601		—		(1,745)		18,856
Total Securities AFS	$	688,539	$	6	$	(74,138)	$	614,407

Securities HTM:
Mortgage-backed securities	$	150,771	$	—	$	(19,142)	$	131,629
U.S. agency securities	912		—		(134)		778
Total Securities HTM	$	151,683	$	—	$	(19,276)	$	132,407

Schedule of maturities of securities available for sale and held to maturities


	September 30, 2023
(in thousands)	Amortized Cost		Fair Value
Securities AFS:
Within one year	$	98,990	$	97,219
After one year but within five years	62,186		58,778
After five years but within ten years	84,066		75,198
After ten years	367,122		297,851
Total Securities AFS	$	612,364	$	529,046

Securities HTM:
Within one year	$	—	$	—
After one year but within five years	—		—
After five years but within ten years	919		776
After ten years	142,501		116,431
Total Securities HTM	$	143,420	$	117,207

Schedule of debt securities available for sale in unrealized loss position


	September 30, 2023
	Less than twelve months				Twelve months or more
(in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	(94)	$	4,220	$	(36,799)	$	208,564
Municipal bonds	(418)		7,347		(40,751)		164,596
U.S. Treasury securities	—		—		(3,247)		118,862
U.S. agency securities	(5)		6,962		(2,010)		16,398
Total Securities AFS	$	(517)	$	18,529	$	(82,807)	$	508,420

Securities HTM:
Mortgage-backed securities	$	—	$	—	$	(26,070)	$	116,431
U.S. agency securities	—		—		(143)		776
Total Securities HTM	$	—	$	—	$	(26,213)	$	117,207

	December 31, 2022
	Less than twelve months				Twelve months or more
(in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	(10,214)	$	105,030	$	(21,058)	$	135,607
Municipal bonds	(11,340)		84,691		(23,879)		98,607
U.S. Treasury securities	(3,852)		131,107		(2,050)		39,371
U.S. agency securities	(608)		10,289		(1,137)		8,564
Total Securities AFS	$	(26,014)	$	331,117	$	(48,124)	$	282,149

Securities HTM:
Mortgage-backed securities	$	(19,142)	$	131,629	$	—	$	—
U.S. agency securities	(134)		778		—		—
Total Securities HTM	$	(19,276)	$	132,407	$	—	$	—

Schedule of debt securities held-to-maturity in unrealized loss position


	September 30, 2023
	Less than twelve months				Twelve months or more
(in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	(94)	$	4,220	$	(36,799)	$	208,564
Municipal bonds	(418)		7,347		(40,751)		164,596
U.S. Treasury securities	—		—		(3,247)		118,862
U.S. agency securities	(5)		6,962		(2,010)		16,398
Total Securities AFS	$	(517)	$	18,529	$	(82,807)	$	508,420

Securities HTM:
Mortgage-backed securities	$	—	$	—	$	(26,070)	$	116,431
U.S. agency securities	—		—		(143)		776
Total Securities HTM	$	—	$	—	$	(26,213)	$	117,207

	December 31, 2022
	Less than twelve months				Twelve months or more
(in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	(10,214)	$	105,030	$	(21,058)	$	135,607
Municipal bonds	(11,340)		84,691		(23,879)		98,607
U.S. Treasury securities	(3,852)		131,107		(2,050)		39,371
U.S. agency securities	(608)		10,289		(1,137)		8,564
Total Securities AFS	$	(26,014)	$	331,117	$	(48,124)	$	282,149

Securities HTM:
Mortgage-backed securities	$	(19,142)	$	131,629	$	—	$	—
U.S. agency securities	(134)		778		—		—
Total Securities HTM	$	(19,276)	$	132,407	$	—	$	—

Schedule of realized gain (loss)

The proceeds from sales and calls of debt securities and their gross gain (loss) for the three and nine months ended September 30, 2023 and 2022, are shown below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022			2023		2022
Proceeds (1)	$	—	$	731		$	—	$	41,234
Gross gain	$	—	$	16		$	—	$	64
Gross loss	$	—	$	—		$	—	$	(123)

(1)The proceeds include the gross gain and loss.

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Section 50
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
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Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
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-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

- Definition

Tabular disclosure of information about investment in debt security measured at amortized cost (held-to-maturity).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 16: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 18: http://www.xbrl.org/2009/role/commonPracticeRef
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-Section 50
-Paragraph 5B
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

+ Details

Loans and Asset Quality - Schedule of Allowance of Credit Losses By Category (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			$ 20,628	$ 19,176	$ 19,176
Provision for Credit Losses	$ 185	$ 600	485	1,000	1,750
Charge-offs			(348)		(547)
Recoveries			140		249
Ending Balance	21,183		21,183		20,628
Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			278
Ending Balance					278
Real estate \| Commercial real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			7,720	6,749	6,749
Provision for Credit Losses			53		970
Charge-offs			0		0
Recoveries			0		1
Ending Balance	8,649		8,649		7,720
Real estate \| Commercial real estate \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			876
Ending Balance					876
Real estate \| One-to-four family residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			5,682	5,375	5,375
Provision for Credit Losses			554		296
Charge-offs			0		0
Recoveries			8		11
Ending Balance	7,475		7,475		5,682
Real estate \| One-to-four family residential \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			1,231
Ending Balance					1,231
Real estate \| Construction and development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			1,654	1,326	1,326
Provision for Credit Losses			32		328
Charge-offs			(9)		(18)
Recoveries			0		18
Ending Balance	1,233		1,233		1,654
Real estate \| Construction and development \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			(444)
Ending Balance					(444)
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			4,350	4,440	4,440
Provision for Credit Losses			(562)		(137)
Charge-offs			(51)		(39)
Recoveries			25		86
Ending Balance	2,940		2,940		4,350
Commercial and industrial \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			(822)
Ending Balance					(822)
SBA PPP, net of deferred income
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			0	25	25
Provision for Credit Losses			0		(25)
Charge-offs			0		0
Recoveries			0		0
Ending Balance	0		0		0
SBA PPP, net of deferred income \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			0
Ending Balance					0
Tax-exempt
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			751	749	749
Provision for Credit Losses			255		2
Charge-offs			0		0
Recoveries			0		0
Ending Balance	579		579		751
Tax-exempt \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			(427)
Ending Balance					(427)
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			471	$ 512	512
Provision for Credit Losses			153		316
Charge-offs			(288)		(490)
Recoveries			107		133
Ending Balance	$ 307		307		471
Consumer \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			$ (136)
Ending Balance					$ (136)

Earnings Per Common Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common ShareBasic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits. Diluted EPS includes accrued but unissued shares relating to the Director Compensation Program, stock options, and restricted stock determined using the treasury stock method. The dilutive EPS calculation assumes all outstanding stock options to purchase common stock have been exercised at the beginning of the year, and the pro forma proceeds from the exercised options and restricted stock are used to purchase common stock at the average fair market valuation price.

The computations of basic and diluted earnings per common share for the Company were as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands, except share amounts)	2023		2022		2023		2022
Numerator:
Net income - basic	$	8,021	$	10,186	$	26,587	$	26,725
Net income - diluted	$	8,021	$	10,186	$	26,587	$	26,725

Denominator:
Weighted average shares outstanding - basic	7,168,413		7,183,915		7,176,219		7,179,984
Plus: Effect of Director Compensation Program	170		394		651		1,183
Plus: Effect of restricted stock	11,501		12,791		11,501		12,791
Weighted average shares outstanding - diluted	7,180,084		7,197,100		7,188,371		7,193,958

Earnings per common share:
Basic	$	1.12	$	1.42	$	3.70	$	3.72
Diluted	$	1.12	$	1.42	$	3.70	$	3.71

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 8,021	$ 8,968	$ 9,598	$ 10,186	$ 9,147	$ 7,392	$ 26,587	$ 26,725

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
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Reference 30: http://www.xbrl.org/2003/role/disclosureRef
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Reference 31: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Securities - Schedule of Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Securities AFS:
Total Securities AFS	$ 612,364	$ 688,539
Gross Unrealized Gains	6	6
Gross Unrealized Losses	(83,324)	(74,138)
Fair Value	529,046	614,407
Securities HTM:
Amortized Cost	143,420	151,683
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(26,213)	(19,276)
Fair Value	117,207	132,407
Mortgage-backed securities
Securities AFS:
Total Securities AFS	249,746	272,253
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(36,893)	(31,272)
Fair Value	212,853	240,981
Securities HTM:
Amortized Cost	142,501	150,771
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(26,070)	(19,142)
Fair Value	116,431	131,629
Municipal bonds
Securities AFS:
Total Securities AFS	213,112	219,305
Gross Unrealized Gains	0	6
Gross Unrealized Losses	(41,169)	(35,219)
Fair Value	171,943	184,092
U.S. Treasury securities
Securities AFS:
Total Securities AFS	122,109	176,380
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(3,247)	(5,902)
Fair Value	118,862	170,478
U.S. agency securities
Securities AFS:
Total Securities AFS	27,397	20,601
Gross Unrealized Gains	6	0
Gross Unrealized Losses	(2,015)	(1,745)
Fair Value	25,388	18,856
Securities HTM:
Amortized Cost	919	912
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(143)	(134)
Fair Value	$ 776	$ 778

Deposits (Tables)

9 Months Ended

Sep. 30, 2023

Deposits [Abstract]

Summary of deposits

Deposits are summarized below:


(in thousands)	September 30, 2023		December 31, 2022
Noninterest-bearing demand deposits	$	972,155	$	1,090,539
Interest-bearing deposits:
Interest-bearing demand deposits	145,764		89,144
NOW accounts	382,047		503,308
Money market accounts	531,740		578,161
Savings accounts	178,933		195,479
Time deposits less than or equal to $250,000	380,564		250,875
Time deposits greater than $250,000	168,690		91,430
Total interest-bearing deposits	1,787,738		1,708,397
Total deposits	$	2,759,893	$	2,798,936

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Publisher SEC

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)
-Publisher SEC

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)
-Publisher SEC

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)
-Publisher SEC

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)
-Publisher SEC

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)
-Publisher SEC

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)
-Publisher SEC

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)
-Publisher SEC

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)
-Publisher SEC

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)
-Publisher SEC

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)
-Publisher SEC

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)
-Publisher SEC

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)
-Publisher SEC

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)
-Publisher SEC

+ Details

Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of fair value of assets measured on recurring basis

The table below presents the recorded amount of assets measured at fair value on a recurring basis:


(in thousands)	Fair Value		Level 1		Level 2		Level 3
September 30, 2023
Loans HFS	$	2,348	$	—	$	2,348	$	—
Securities AFS:
Mortgage-backed securities	$	212,853	$	—	$	212,853	$	—
Municipal bonds	$	171,943	$	—	$	171,943	$	—
U.S. Treasury securities	$	118,862	$	—	$	118,862	$	—
U.S. agency securities	$	25,388	$	—	$	25,388	$	—
Equity securities	$	2,833	$	2,833	$	—	$	—

December 31, 2022
Loans HFS	$	518	$	—	$	518	$	—
Securities AFS:
Mortgage-backed securities	$	240,981	$	—	$	240,981	$	—
Municipal bonds	$	184,092	$	—	$	184,092	$	—
U.S. Treasury securities	$	170,478	$	—	$	170,478	$	—
U.S. agency securities	$	18,856	$	—	$	18,856	$	—
Equity securities	$	9,979	$	9,979	$	—	$	—

Schedule of fair value of assets measured on nonrecurring basis

The table below presents certain impaired loans that were remeasured and reported at fair value through the allowance for loan losses or credit losses based upon the fair value of the underlying collateral during the reported periods:


	For the Nine Months Ended
(in thousands)	September 30, 2023		September 30, 2022
Carrying value of impaired loans before allowance	$	454	$	3,141
Specific allowance	(69)		(299)
Fair value of impaired loans	$	385	$	2,842

The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods:


	For the Nine Months Ended
(in thousands)	September 30, 2023		September 30, 2022
Foreclosed assets remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	$	22	$	—
Charge-offs	—		—
Fair value of foreclosed assets	$	22	$	—

Schedule of inputs used for the Level 3 fair value measurement

The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis were as follows:

(dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Discount Ranges

Weighted Average Discount

September 30, 2023

Impaired loans

2,465

Discounted appraisals

Collateral discounts and costs to sell

0% - 100%

14.90%

Foreclosed assets

Discounted appraisals

Collateral discounts and costs to sell

N/A

December 31, 2022

Impaired loans

7,254

Discounted appraisals

Collateral discounts and costs to sell

0% - 100%

4.16%

Foreclosed assets

—

Discounted appraisals

Collateral discounts and costs to sell

N/A

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments as of September 30, 2023 and December 31, 2022, were as follows:


(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2023
Financial assets:
Cash and due from banks	$	42,413	$	42,413	$	42,413	$	—	$	—
Interest-bearing deposits in other banks	$	279,786	$	279,786	$	279,786	$	—	$	—
Securities AFS	$	529,046	$	529,046	$	—	$	529,046	$	—
Securities HTM	$	143,420	$	117,207	$	—	$	117,207	$	—
Equity securities	$	2,833	$	2,833	$	2,833	$	—	$	—
Nonmarketable equity securities	$	2,190	$	2,190	$	—	$	2,190	$	—
Loans HFS	$	2,348	$	2,348	$	—	$	2,348	$	—
Loans HFI, net of allowance	$	1,927,423	$	1,775,442	$	—	$	—	$	1,775,442
Accrued interest receivable	$	8,778	$	8,778	$	—	$	—	$	8,778
Financial liabilities:
Deposits	$	2,759,893	$	2,750,992	$	—	$	2,750,992	$	—

Accrued interest payable	$	6,800	$	6,800	$	—	$	6,800	$	—

December 31, 2022
Financial assets:
Cash and due from banks	$	37,824	$	37,824	$	37,824	$	—	$	—
Interest-bearing deposits in other banks	$	240,568	$	240,568	$	240,568	$	—	$	—
Securities AFS	$	614,407	$	614,407	$	—	$	614,407	$	—
Securities HTM	$	151,683	$	132,407	$	—	$	132,407	$	—
Equity securities	$	9,979	$	9,979	$	9,979	$	—	$	—
Nonmarketable equity securities	$	3,478	$	3,478	$	—	$	3,478	$	—
Loans HFS	$	518	$	518	$	—	$	518	$	—
Loans HFI, net of allowance	$	1,895,639	$	1,807,772	$	—	$	—	$	1,807,772
Accrued interest receivable	$	8,830	$	8,830	$	—	$	—	$	8,830
Financial liabilities:
Deposits	$	2,798,936	$	2,787,198	$	—	$	2,787,198	$	—


Accrued interest payable	$	1,563	$	1,563	$	—	$	1,563	$	—

Fair Value

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair Value Disclosure

Securities AFS, loans HFS, and equity securities are recorded at fair value on a recurring basis. Additionally, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, foreclosed assets, and other certain assets. The nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.

ASC 820, Fair Value Measurements and Disclosures indicates that assets and liabilities are recorded at fair value according to a fair value hierarchy comprised of three levels:

•Level 1 pricing represents quotes on the exact financial instrument that is traded in active markets. Quoted prices on actively traded equities, for example, are in this category.

•Level 2 pricing is derived from observable data including market spreads, current and projected rates, prepayment data, and credit quality. The valuation may be based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

•Level 3 pricing is derived without the use of observable data. In such cases, mark-to-model strategies are typically employed. Often, these types of instruments have no active market, possess unique characteristics, and are thinly traded.

The Company used the following methods and significant assumptions to estimate fair value:

Securities AFS and Equity Securities: The fair values for securities AFS are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).

Loans HFS: Residential mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value on an individual basis. The fair values of mortgage loans HFS are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustments for mortgage loans HFS are recurring Level 2.

Loans HFI: The Company does not record loans HFI at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance may be established. Loans for which it was probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using estimated fair value methodologies. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value, and discounted cash flows. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determined the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the impaired loan as nonrecurring Level 3.

Foreclosed Assets: Foreclosed assets, consisting of properties obtained through foreclosure or in satisfaction of loans, are reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). However, foreclosed assets are considered Level 3 in the fair value hierarchy because management has qualitatively applied a discount due to the size, supply of inventory, and the incremental discounts applied to the appraisals. Management also considers other factors, including changes in absorption rates, length of time the property has been on the market, and anticipated sales values, which have resulted in adjustments to the collateral value estimates indicated in certain appraisals.

Fair Value of Assets Measured on a Recurring Basis

The table below presents the recorded amount of assets measured at fair value on a recurring basis:


(in thousands)	Fair Value		Level 1		Level 2		Level 3
September 30, 2023
Loans HFS	$	2,348	$	—	$	2,348	$	—
Securities AFS:
Mortgage-backed securities	$	212,853	$	—	$	212,853	$	—
Municipal bonds	$	171,943	$	—	$	171,943	$	—
U.S. Treasury securities	$	118,862	$	—	$	118,862	$	—
U.S. agency securities	$	25,388	$	—	$	25,388	$	—
Equity securities	$	2,833	$	2,833	$	—	$	—

December 31, 2022
Loans HFS	$	518	$	—	$	518	$	—
Securities AFS:
Mortgage-backed securities	$	240,981	$	—	$	240,981	$	—
Municipal bonds	$	184,092	$	—	$	184,092	$	—
U.S. Treasury securities	$	170,478	$	—	$	170,478	$	—
U.S. agency securities	$	18,856	$	—	$	18,856	$	—
Equity securities	$	9,979	$	9,979	$	—	$	—

There were no transfers between Level 1, 2, or 3 during the nine months ended September 30, 2023 or the year ended December 31, 2022.

Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis

Financial Assets and Financial Liabilities: Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a nonrecurring basis include certain impaired collateral dependent loans reported at fair value of the underlying collateral if repayment is expected solely from the collateral. Prior to foreclosure of these loans, fair value of the collateral is estimated using Level 3 inputs based on customized discounting criteria.


	For the Nine Months Ended
(in thousands)	September 30, 2023		September 30, 2022
Carrying value of impaired loans before allowance	$	454	$	3,141
Specific allowance	(69)		(299)
Fair value of impaired loans	$	385	$	2,842

The Company had no financial liabilities measured at fair value on a nonrecurring basis for the nine months ended September 30, 2023 and September 30, 2022.

Nonfinancial Assets and Liabilities: Certain nonfinancial assets and nonfinancial liabilities are measured at fair value on a nonrecurring basis. These include certain foreclosed assets, which are remeasured and reported at fair value through a charge-off to the allowance for credit losses upon initial recognition as a foreclosed asset. Subsequent to their initial recognition, certain foreclosed assets are remeasured at fair value through an adjustment included in other noninterest

income. The fair value of foreclosed assets is estimated using Level 3 inputs based on customized discounting criteria less estimated selling costs.

The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods:


	For the Nine Months Ended
(in thousands)	September 30, 2023		September 30, 2022
Foreclosed assets remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	$	22	$	—
Charge-offs	—		—
Fair value of foreclosed assets	$	22	$	—

There were no foreclosed assets that were remeasured subsequent to initial recognition for the nine months ended September 30, 2023 and September 30, 2022.

The Company had no nonfinancial liabilities measured at fair value on a nonrecurring basis for the nine months ended September 30, 2023 and September 30, 2022.

The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis were as follows:

(dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Discount Ranges

Weighted Average Discount

September 30, 2023

Impaired loans

2,465

Discounted appraisals

Collateral discounts and costs to sell

0% - 100%

14.90%

Foreclosed assets

Discounted appraisals

Collateral discounts and costs to sell

N/A

December 31, 2022

Impaired loans

7,254

Discounted appraisals

Collateral discounts and costs to sell

0% - 100%

4.16%

Foreclosed assets

—

Discounted appraisals

Collateral discounts and costs to sell

N/A

Fair Value of Financial Instruments

The carrying amounts and estimated fair values of financial instruments as of September 30, 2023 and December 31, 2022, were as follows:


(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2023
Financial assets:
Cash and due from banks	$	42,413	$	42,413	$	42,413	$	—	$	—
Interest-bearing deposits in other banks	$	279,786	$	279,786	$	279,786	$	—	$	—
Securities AFS	$	529,046	$	529,046	$	—	$	529,046	$	—
Securities HTM	$	143,420	$	117,207	$	—	$	117,207	$	—
Equity securities	$	2,833	$	2,833	$	2,833	$	—	$	—
Nonmarketable equity securities	$	2,190	$	2,190	$	—	$	2,190	$	—
Loans HFS	$	2,348	$	2,348	$	—	$	2,348	$	—
Loans HFI, net of allowance	$	1,927,423	$	1,775,442	$	—	$	—	$	1,775,442
Accrued interest receivable	$	8,778	$	8,778	$	—	$	—	$	8,778
Financial liabilities:
Deposits	$	2,759,893	$	2,750,992	$	—	$	2,750,992	$	—

Accrued interest payable	$	6,800	$	6,800	$	—	$	6,800	$	—

December 31, 2022
Financial assets:
Cash and due from banks	$	37,824	$	37,824	$	37,824	$	—	$	—
Interest-bearing deposits in other banks	$	240,568	$	240,568	$	240,568	$	—	$	—
Securities AFS	$	614,407	$	614,407	$	—	$	614,407	$	—
Securities HTM	$	151,683	$	132,407	$	—	$	132,407	$	—
Equity securities	$	9,979	$	9,979	$	9,979	$	—	$	—
Nonmarketable equity securities	$	3,478	$	3,478	$	—	$	3,478	$	—
Loans HFS	$	518	$	518	$	—	$	518	$	—
Loans HFI, net of allowance	$	1,895,639	$	1,807,772	$	—	$	—	$	1,807,772
Accrued interest receivable	$	8,830	$	8,830	$	—	$	—	$	8,830
Financial liabilities:
Deposits	$	2,798,936	$	2,787,198	$	—	$	2,787,198	$	—


Accrued interest payable	$	1,563	$	1,563	$	—	$	1,563	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 8,021,000	$ 9,598,000	$ 10,186,000	$ 7,392,000	$ 26,587,000	$ 26,725,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation					1,618,000	1,516,000
Amortization					410,000	406,000
Share-based compensation earned					239,000	200,000
Share-based board compensation earned					30,000	59,000
(Gain) Loss on other assets owned					(1,000)	60,000
Net (accretion) amortization on securities AFS					1,234,000	278,000
Net (accretion) amortization on securities HTM					(1,153,000)	0
(Gain) Loss on sale and call of securities					0	59,000
(Gain) Loss on equity securities					145,000	447,000
Provision for credit losses	185,000		600,000		485,000	1,000,000	$ 1,750,000
Deferred income tax (benefit) expense					(79,000)	377,000
Net (increase) decrease in loans HFS					(1,830,000)	2,754,000
Net (increase) decrease in accrued interest receivable					52,000	(1,537,000)
Net (increase) decrease in BOLI					(557,000)	(533,000)
Net increase (decrease) in accrued interest payable					5,237,000	(116,000)
Net increase (decrease) in accrued income taxes payable					(656,000)	621,000
Other operating activities, net					258,000	3,027,000
Net cash provided by (used in) operating activities					32,019,000	35,343,000
Activity in securities AFS:
Sales					0	31,762,000
Maturities, principal repayments, and calls					109,521,000	60,292,000
Purchases					(34,581,000)	(313,514,000)
Activity in securities HTM:
Maturities, principal repayments, and calls					9,416,000	13,074,000
Sale of equity securities					7,000,000	7,399,000
Sale of nonmarketable equity securities					2,178,000	0
Purchase of nonmarketable equity securities					(792,000)	(10,000)
Capital contribution in partnerships					(1,819,000)	(817,000)
Net (increase) decrease in loans HFI					(32,569,000)	(196,060,000)
Proceeds from sales of foreclosed assets					0	641,000
Proceeds from sales of premises and equipment					11,000	0
Purchases of premises and equipment					(3,711,000)	(6,321,000)
Net cash provided by (used in) investing activities					54,654,000	(403,554,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits					(39,043,000)	(113,854,000)
Proceeds from other borrowed funds					60,000,000	0
Repayments of other borrowed funds					(60,000,000)	0
Repurchase of common stock					(2,103,000)	(218,000)
Cash dividends					(1,720,000)	(1,508,000)
Net cash provided by (used in) financing activities					(42,866,000)	(115,580,000)
Net change in cash and cash equivalents					43,807,000	(483,791,000)
Cash and cash equivalents - beginning of period		$ 278,392,000		$ 784,864,000	278,392,000	784,864,000	784,864,000
Cash and cash equivalents - end of period	$ 322,199,000		$ 301,073,000		322,199,000	301,073,000	$ 278,392,000
Cash paid during the year for:
Interest					16,146,000	4,545,000
Income taxes					6,894,000	4,766,000
SUPPLEMENTAL INFORMATION FOR NON-CASH INVESTING AND FINANCING ACTIVITIES
Assets acquired in settlement of loans					22,000	0
Transfers of investment securities from AFS to HTM, prior to market value adjustment					$ 0	$ 184,238,000

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial assets:
Securities AFS	$ 529,046	$ 614,407
Securities HTM	117,207	132,407
Equity securities	2,833	9,979
Nonmarketable equity securities	2,190	3,478
Level 1
Financial assets:
Cash and due from banks	42,413	37,824
Interest-bearing deposits in other banks	279,786	240,568
Securities AFS	0	0
Securities HTM	0	0
Equity securities	2,833	9,979
Nonmarketable equity securities	0	0
Loans HFS	0	0
Loans HFI, net of allowance	0	0
Accrued interest receivable	0	0
Financial liabilities:
Deposits	0	0
Accrued interest payable	0	0
Level 2
Financial assets:
Cash and due from banks	0	0
Interest-bearing deposits in other banks	0	0
Securities AFS	529,046	614,407
Securities HTM	117,207	132,407
Equity securities	0	0
Nonmarketable equity securities	2,190	3,478
Loans HFS	2,348	518
Loans HFI, net of allowance	0	0
Accrued interest receivable	0	0
Financial liabilities:
Deposits	2,750,992	2,787,198
Accrued interest payable	6,800	1,563
Level 3
Financial assets:
Cash and due from banks	0	0
Interest-bearing deposits in other banks	0	0
Securities AFS	0	0
Securities HTM	0	0
Equity securities	0	0
Nonmarketable equity securities	0	0
Loans HFS	0	0
Loans HFI, net of allowance	1,775,442	1,807,772
Accrued interest receivable	8,778	8,830
Financial liabilities:
Deposits	0	0
Accrued interest payable	0	0
Carrying Amount
Financial assets:
Cash and due from banks	42,413	37,824
Interest-bearing deposits in other banks	279,786	240,568
Securities AFS	529,046	614,407
Securities HTM	143,420	151,683
Equity securities	2,833	9,979
Nonmarketable equity securities	2,190	3,478
Loans HFS	2,348	518
Loans HFI, net of allowance	1,927,423	1,895,639
Accrued interest receivable	8,778	8,830
Financial liabilities:
Deposits	2,759,893	2,798,936
Accrued interest payable	6,800	1,563
Fair Value
Financial assets:
Cash and due from banks	42,413	37,824
Interest-bearing deposits in other banks	279,786	240,568
Securities AFS	529,046	614,407
Securities HTM	117,207	132,407
Equity securities	2,833	9,979
Nonmarketable equity securities	2,190	3,478
Loans HFS	2,348	518
Loans HFI, net of allowance	1,775,442	1,807,772
Accrued interest receivable	8,778	8,830
Financial liabilities:
Deposits	2,750,992	2,787,198
Accrued interest payable	$ 6,800	$ 1,563

Loans and Asset Quality - Summary of Loans Modified as TDRs That Occurred During Period (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Count \| loan	6
Pre Modification	$ 827
Post Modification	$ 831
Real estate \| Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Count \| loan	1
Pre Modification	$ 50
Post Modification	$ 50
Real estate \| One-to-four family residential
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Count \| loan	4
Pre Modification	$ 673
Post Modification	$ 677
Real estate \| Construction and development
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Count \| loan	0
Pre Modification	$ 0
Post Modification	$ 0
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Count \| loan	0
Pre Modification	$ 0
Post Modification	$ 0
SBA PPP, net of deferred income
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Count \| loan	0
Pre Modification	$ 0
Post Modification	$ 0
Tax-exempt
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Count \| loan	0
Pre Modification	$ 0
Post Modification	$ 0
Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Count \| loan	1
Pre Modification	$ 104
Post Modification	$ 104

Fair Value - Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	$ 529,046	$ 614,407
Equity securities	2,833	9,979
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	212,853	240,981
Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	171,943	184,092
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	118,862	170,478
U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	25,388	18,856
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans HFS	0	0
Securities AFS	0	0
Equity securities	2,833	9,979
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans HFS	2,348	518
Securities AFS	529,046	614,407
Equity securities	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans HFS	0	0
Securities AFS	0	0
Equity securities	0	0
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans HFS	2,348	518
Equity securities	2,833	9,979
Recurring \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	212,853	240,981
Recurring \| Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	171,943	184,092
Recurring \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	118,862	170,478
Recurring \| U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	25,388	18,856
Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans HFS	0	0
Equity securities	2,833	9,979
Recurring \| Level 1 \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	0	0
Recurring \| Level 1 \| Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	0	0
Recurring \| Level 1 \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	0	0
Recurring \| Level 1 \| U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	0	0
Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans HFS	2,348	518
Equity securities	0	0
Recurring \| Level 2 \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	212,853	240,981
Recurring \| Level 2 \| Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	171,943	184,092
Recurring \| Level 2 \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	118,862	170,478
Recurring \| Level 2 \| U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	25,388	18,856
Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans HFS	0	0
Equity securities	0	0
Recurring \| Level 3 \| Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	0	0
Recurring \| Level 3 \| Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	0	0
Recurring \| Level 3 \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	0	0
Recurring \| Level 3 \| U.S. agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	$ 0	$ 0

Fair Value - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Specific allowance	$ (185)	$ (600)	$ (485)	$ (1,000)	$ (1,750)
Remeasured Loans \| Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of impaired loans before allowance			454	3,141
Specific allowance			(69)	(299)
Fair value of impaired loans			385	2,842
Foreclosed assets remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to remeasurement			22	0
Charge-offs			0	0
Fair value of foreclosed assets			$ 22	$ 0

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 42,413	$ 37,824
Interest-bearing deposits in other banks	279,786	240,568
Total Cash and Cash Equivalents	322,199	278,392
Securities available-for-sale, at fair value	529,046	614,407
Securities held-to-maturity, at amortized cost	143,420	151,683
Equity securities, at fair value	2,833	9,979
Nonmarketable equity securities	2,190	3,478
Loans held for sale	2,348	518
Loans held for investment	1,948,606	1,916,267
Allowance for credit losses	(21,183)	(20,628)
Premises and equipment, net	56,466	54,383
Accrued interest receivable	8,778	8,830
Bank-owned life insurance	29,332	28,775
Intangible assets	1,546	1,546
Right-of-use assets	3,757	4,137
Other assets	36,815	30,919
Total Assets	3,066,153	3,082,686
LIABILITIES
Noninterest-bearing deposits	972,155	1,090,539
Interest-bearing deposits	1,787,738	1,708,397
Total Deposits	2,759,893	2,798,936
Accrued interest payable	6,800	1,563
Lease liabilities	3,892	4,258
Accrued expenses and other liabilities	13,617	12,176
Total Liabilities	2,784,202	2,816,933
COMMITMENTS AND CONTINGENCIES	0	0
STOCKHOLDERS’ EQUITY
Preferred stock, no par value: Authorized - 1,000,000 shares; None Issued and Outstanding	0	0
Common stock, no par value: Authorized - 30,000,000 shares; Issued and Outstanding - 7,150,685 and 7,183,915 shares, respectively	58,031	60,050
Additional paid-in capital	2,327	2,088
Retained earnings	299,079	274,781
Accumulated other comprehensive income (loss)	(77,486)	(71,166)
Total Stockholders’ Equity	281,951	265,753
Total Liabilities and Stockholders’ Equity	$ 3,066,153	$ 3,082,686

Loans and Asset Quality - Schedule of Loans Impaired (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Unpaid Principal Balance
With no related allowance recorded:	$ 5,348
With allowance recorded:	2,310
Total impaired loans	7,658
Recorded Investment
With no related allowance recorded:	5,269
With allowance recorded:	2,299
Total impaired loans	7,568
Related Allowance	314
Average Recorded Investment
With no related allowance recorded:	4,162
With allowance recorded:	2,057
Total impaired loans	6,219
Real estate \| Commercial real estate
Unpaid Principal Balance
With no related allowance recorded:	3,804
With allowance recorded:	717
Recorded Investment
With no related allowance recorded:	3,796
With allowance recorded:	717
Related Allowance	15
Average Recorded Investment
With no related allowance recorded:	3,194
With allowance recorded:	1,264
Real estate \| One-to-four family residential
Unpaid Principal Balance
With no related allowance recorded:	1,458
With allowance recorded:	120
Recorded Investment
With no related allowance recorded:	1,387
With allowance recorded:	120
Related Allowance	16
Average Recorded Investment
With no related allowance recorded:	797
With allowance recorded:	48
Real estate \| Construction and development
Unpaid Principal Balance
With no related allowance recorded:	9
With allowance recorded:	0
Recorded Investment
With no related allowance recorded:	9
With allowance recorded:	0
Related Allowance	0
Average Recorded Investment
With no related allowance recorded:	104
With allowance recorded:	0
Commercial and industrial
Unpaid Principal Balance
With no related allowance recorded:	51
With allowance recorded:	1,360
Recorded Investment
With no related allowance recorded:	51
With allowance recorded:	1,351
Related Allowance	172
Average Recorded Investment
With no related allowance recorded:	58
With allowance recorded:	623
SBA PPP, net of deferred income
Unpaid Principal Balance
With no related allowance recorded:	0
With allowance recorded:	0
Recorded Investment
With no related allowance recorded:	0
With allowance recorded:	0
Related Allowance	0
Average Recorded Investment
With no related allowance recorded:	0
With allowance recorded:	0
Tax-exempt
Unpaid Principal Balance
With no related allowance recorded:	0
With allowance recorded:	0
Recorded Investment
With no related allowance recorded:	0
With allowance recorded:	0
Related Allowance	0
Average Recorded Investment
With no related allowance recorded:	0
With allowance recorded:	0
Consumer
Unpaid Principal Balance
With no related allowance recorded:	26
With allowance recorded:	113
Recorded Investment
With no related allowance recorded:	26
With allowance recorded:	111
Related Allowance	111
Average Recorded Investment
With no related allowance recorded:	9
With allowance recorded:	$ 122

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of PresentationThe 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 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 that 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, 2022, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Reclassification

Critical Accounting Policies and Estimates

Accounting Standards Adopted in 2023 and Recent Accounting Pronouncements

Accounting Standards Adopted in 2023


(in thousands)	December 31, 2022 ALL		Impact of ASC 326 Adoption		January 1, 2023 ACL
Real estate:
Commercial real estate	$	7,720	$	876	$	8,596
One-to-four family residential	5,682		1,231		6,913
Construction and development	1,654		(444)		1,210
Commercial and industrial	4,350		(822)		3,528
SBA PPP, net of deferred income	—		—		—
Tax-exempt	751		(427)		324
Consumer	471		(136)		335
Total	$	20,628	$	278	$	20,906

Reserve for unfunded commitments	$	—	$	442	$	442

Loans Held for Investment

Allowance for Credit Losses - Loans

The portfolio pools are based primarily on regulatory call report codes. These pools and certain of the inherent risks in the Company’s loan portfolio are summarized in the following table.


Loan Pool			Risk Characteristics
Residential construction			This category consists of loans to residential developers and to individual clients for construction of single-family homes. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, and change in market trends.
Commercial construction			This category consists of loans to small and medium-sized businesses to construct owner occupied facilities and developers of commercial real estate investment properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, change in market trends, and the ability to sell the property upon completion.
Farmland			This category consists of loans secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing/pastureland, and timberland. Risks inherent in this portfolio pool include adverse changes in climate, fluctuations in feed and livestock prices, and changes in property values.
Home equity loans and lines			This category consists of home equity loans and lines of credit. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment.
Secured closed-liens			This category consists of loans secured by primary and secondary liens on residential real estate. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment. Generally, these loans are for longer terms than home equity loans and lines of credit.
Multifamily			This category consists of loans secured by apartment or residential buildings with five or more units used to accommodate households on a temporary or permanent basis. Risks inherent in this portfolio pool include local unemployment rates, changes in the local economy, and factors that would impact property values.
Owner occupied commercial real estate			This category consists of loans to established operating companies and secured by owner occupied offices and industrial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, environmental contamination, and the quality of the borrower’s management.
Non-owner occupied commercial real estate			This category consists of loans to developers and other persons or entities and secured by non-owner occupied commercial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, tenant vacancy rates, environmental contamination, and the quality of the borrower’s management.
Commercial and industrial			This category consists of secured and unsecured loans to purchase capital equipment, agriculture operating loans, and other business loans for working capital and operating purposes. Secured loans are primarily secured by accounts receivable, inventory, and other business assets. The performance of commercial and industrial loans may be adversely affected by, among other factors, conditions specific to the relevant industry, fluctuations in the value of the collateral, and individual performance factors related to the borrower such as the quality of the borrower’s management.
Consumer			This category consists of loans to individuals for household, family, and other personal use. Risks inherent in this portfolio pool include the borrower’s financial condition, local unemployment rates, local economic conditions, and the interest rate environment.
Tax-exempt			This category consists of loans to political subdivisions primarily of the State of Louisiana including parishes, municipalities, utility districts, school districts, and development authorities. These loans undergo the same underwriting as any of the Company’s other loans and are typically paid for by ad valorem taxes or specific revenue sources.
Other loans			This category consists of loans not included in any other category. Risks inherent in this portfolio pool include local unemployment rates, local economic conditions, and the interest rate environment.

Reserve for Unfunded Commitments

Securities AFS

Securities HTM

Recent Accounting Pronouncements

As of September 30, 2023, there were no recent accounting pronouncements that were applicable and not adopted.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 8,021	$ 10,186	$ 26,587	$ 26,725
Other comprehensive income (loss):
Unrealized net gain (loss) on securities arising during period	(10,295)	(25,847)	(9,186)	(102,802)
Tax effect	2,162	5,428	1,930	21,589
(Gain) Loss on sale and call of securities included in net income	0	(16)	0	59
Tax effect	0	3	0	(13)
Change in unrealized net loss on securities transferred to held-to-maturity	430	623	1,185	1,513
Tax effect	(90)	(131)	(249)	(317)
Total other comprehensive income (loss)	(7,793)	(19,940)	(6,320)	(79,971)
Comprehensive Income (Loss)	$ 228	$ (9,754)	$ 20,267	$ (53,246)

Insider Trading Arrangements	3 Months Ended	9 Months Ended
Insider Trading Arrangements	Sep. 30, 2023 shares	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
Tammi R. Salazar [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On November 3, 2023, Bryon C. Salazar, Executive Vice President - Chief Banking Officer of the Bank and Tammi R. Salazar, Executive Vice President – Chief Operating Officer of the Bank, terminated each of their existing trading plans, which were adopted on December 2, 2022 (the “Prior Plans”). The Prior Plans were adopted to sell a limited amount of the Company’s common stock for tax, estate, and family planning purposes and to provide asset diversification. The Prior Plans provided for the sale of up to 30,114 shares of common stock, collectively, from January 1, 2023, until the sale of all common stock thereunder, unless sooner terminated. The trading plans were intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act applicable at the time of adoption. On November 3, 2023, Mr. and Mrs. Salazar adopted new trading plans intended to satisfy the affirmative defense conditions of amended Rule 10b5-1(c) of the Exchange Act (the “Rule 10b5-1 Trading Arrangements”) and to update the price parameters of the Prior Plans. The Rule 10b5-1 Trading Arrangements were adopted in accordance with the Company’s policies with respect to insider trading to sell a limited amount of the Company’s common stock for tax, estate, and family planning purposes and to provide asset diversification. As of November 3, 2023, Mr. and Mrs. Salazar collectively owned 47,251 shares of the Company’s common stock. The maximum aggregate number of shares of the Company’s common stock that may be sold pursuant to the Rule 10b5-1 Trading Arrangements is collectively 4,726 shares (which is the number of shares that remain unsold under the Prior Plans). Each Rule 10b5-1 Trading Arrangement provides for the potential sale of shares of the Company’s common stock so long as the market price of the Company’s common stock is higher than a certain minimum threshold price specified. Sales under the Rule 10b5-1 Trading Arrangements may begin upon the completion of the required cooling off period under Rule 10b5-1 on March 4, 2024, and will terminate no later than December 31, 2024, unless terminated sooner upon completion of all sales under the Rule 10b5-1 Trading Arrangements or in accordance with the terms. Transactions made under the Rule 10b5–1 Trading Arrangements will be disclosed publicly through Form 4 filings with the SEC.
Name	Tammi R. Salazar
Title	Executive Vice President – Chief Operating Officer of the Bank
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	November 3, 2023
Rule 10b5-1 Arrangement Terminated	true
Arrangement Duration	668 days
Bryon C. Salazar [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On November 3, 2023, Bryon C. Salazar, Executive Vice President - Chief Banking Officer of the Bank and Tammi R. Salazar, Executive Vice President – Chief Operating Officer of the Bank, terminated each of their existing trading plans, which were adopted on December 2, 2022 (the “Prior Plans”). The Prior Plans were adopted to sell a limited amount of the Company’s common stock for tax, estate, and family planning purposes and to provide asset diversification. The Prior Plans provided for the sale of up to 30,114 shares of common stock, collectively, from January 1, 2023, until the sale of all common stock thereunder, unless sooner terminated. The trading plans were intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act applicable at the time of adoption. On November 3, 2023, Mr. and Mrs. Salazar adopted new trading plans intended to satisfy the affirmative defense conditions of amended Rule 10b5-1(c) of the Exchange Act (the “Rule 10b5-1 Trading Arrangements”) and to update the price parameters of the Prior Plans. The Rule 10b5-1 Trading Arrangements were adopted in accordance with the Company’s policies with respect to insider trading to sell a limited amount of the Company’s common stock for tax, estate, and family planning purposes and to provide asset diversification. As of November 3, 2023, Mr. and Mrs. Salazar collectively owned 47,251 shares of the Company’s common stock. The maximum aggregate number of shares of the Company’s common stock that may be sold pursuant to the Rule 10b5-1 Trading Arrangements is collectively 4,726 shares (which is the number of shares that remain unsold under the Prior Plans). Each Rule 10b5-1 Trading Arrangement provides for the potential sale of shares of the Company’s common stock so long as the market price of the Company’s common stock is higher than a certain minimum threshold price specified. Sales under the Rule 10b5-1 Trading Arrangements may begin upon the completion of the required cooling off period under Rule 10b5-1 on March 4, 2024, and will terminate no later than December 31, 2024, unless terminated sooner upon completion of all sales under the Rule 10b5-1 Trading Arrangements or in accordance with the terms. Transactions made under the Rule 10b5–1 Trading Arrangements will be disclosed publicly through Form 4 filings with the SEC.
Name	Bryon C. Salazar
Title	Executive Vice President - Chief Banking Officer of the Bank
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	November 3, 2023
Rule 10b5-1 Arrangement Terminated	true
Arrangement Duration	668 days
Bryon C. Salazar and Tammi R. Salazar [Member]
Trading Arrangements, by Individual
Aggregate Available	4,726	4,726
Prior Plans [Member] \| Tammi R. Salazar [Member]
Trading Arrangements, by Individual
Adoption Date	December 2, 2022
Termination Date	November 3, 2023
Arrangement Duration	306 days
Aggregate Available	30,114	30,114
Prior Plans [Member] \| Bryon C. Salazar [Member]
Trading Arrangements, by Individual
Adoption Date	December 2, 2022
Termination Date	November 3, 2023
Arrangement Duration	306 days
Aggregate Available	30,114	30,114

Fair Value - Unobservable Inputs Used for the Level 3 (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Minimum \| Discounted appraisals \| Collateral discounts and costs to sell
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans (percent)	0	0
Maximum \| Discounted appraisals \| Collateral discounts and costs to sell
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans (percent)	1	1
Weighted Average Discount \| Discounted appraisals \| Collateral discounts and costs to sell
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans (percent)	0.1490	0.0416
Nonrecurring \| Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 2,465	$ 7,254
Foreclosed assets	$ 22	$ 0

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Summary of impact of adoption of ASC 326


(in thousands)	December 31, 2022 ALL		Impact of ASC 326 Adoption		January 1, 2023 ACL
Real estate:
Commercial real estate	$	7,720	$	876	$	8,596
One-to-four family residential	5,682		1,231		6,913
Construction and development	1,654		(444)		1,210
Commercial and industrial	4,350		(822)		3,528
SBA PPP, net of deferred income	—		—		—
Tax-exempt	751		(427)		324
Consumer	471		(136)		335
Total	$	20,628	$	278	$	20,906

Reserve for unfunded commitments	$	—	$	442	$	442


Loan Pool			Risk Characteristics
Residential construction			This category consists of loans to residential developers and to individual clients for construction of single-family homes. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, and change in market trends.
Commercial construction			This category consists of loans to small and medium-sized businesses to construct owner occupied facilities and developers of commercial real estate investment properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, project completion risk, change in market trends, and the ability to sell the property upon completion.
Farmland			This category consists of loans secured by real estate that is used or usable for agricultural purposes, including land used for crops, livestock production, grazing/pastureland, and timberland. Risks inherent in this portfolio pool include adverse changes in climate, fluctuations in feed and livestock prices, and changes in property values.
Home equity loans and lines			This category consists of home equity loans and lines of credit. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment.
Secured closed-liens			This category consists of loans secured by primary and secondary liens on residential real estate. Risks inherent in this portfolio pool include local unemployment rates, local residential real estate market conditions, and the interest rate environment. Generally, these loans are for longer terms than home equity loans and lines of credit.
Multifamily			This category consists of loans secured by apartment or residential buildings with five or more units used to accommodate households on a temporary or permanent basis. Risks inherent in this portfolio pool include local unemployment rates, changes in the local economy, and factors that would impact property values.
Owner occupied commercial real estate			This category consists of loans to established operating companies and secured by owner occupied offices and industrial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, environmental contamination, and the quality of the borrower’s management.
Non-owner occupied commercial real estate			This category consists of loans to developers and other persons or entities and secured by non-owner occupied commercial real estate properties. Risks inherent in this portfolio pool include fluctuations in the value of real estate, the overall strength of the economy, new job creation trends, tenant vacancy rates, environmental contamination, and the quality of the borrower’s management.
Commercial and industrial			This category consists of secured and unsecured loans to purchase capital equipment, agriculture operating loans, and other business loans for working capital and operating purposes. Secured loans are primarily secured by accounts receivable, inventory, and other business assets. The performance of commercial and industrial loans may be adversely affected by, among other factors, conditions specific to the relevant industry, fluctuations in the value of the collateral, and individual performance factors related to the borrower such as the quality of the borrower’s management.
Consumer			This category consists of loans to individuals for household, family, and other personal use. Risks inherent in this portfolio pool include the borrower’s financial condition, local unemployment rates, local economic conditions, and the interest rate environment.
Tax-exempt			This category consists of loans to political subdivisions primarily of the State of Louisiana including parishes, municipalities, utility districts, school districts, and development authorities. These loans undergo the same underwriting as any of the Company’s other loans and are typically paid for by ad valorem taxes or specific revenue sources.
Other loans			This category consists of loans not included in any other category. Risks inherent in this portfolio pool include local unemployment rates, local economic conditions, and the interest rate environment.

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands		3 Months Ended						9 Months Ended		12 Months Ended
	Jan. 01, 2023 USD ($)	Sep. 30, 2023 USD ($) unit	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2023 USD ($) unit	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Property, Plant and Equipment [Line Items]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]									Accounting Standards Update 2016-13 [Member]
Cumulative effect of change in accounting principal		$ (8,021)	$ (8,968)	$ (9,598)	$ (10,186)	$ (9,147)	$ (7,392)	$ (26,587)	$ (26,725)
Allowance for credit loss	$ 20,906	21,183						21,183		$ 20,628	$ 19,176
Unfunded commitments
Property, Plant and Equipment [Line Items]
Allowance for credit loss	$ 442	$ 442						$ 442		0
Multifamily \| Real estate \| Minimum
Property, Plant and Equipment [Line Items]
Number of units \| unit		5						5
Retained Earnings
Property, Plant and Equipment [Line Items]
Cumulative effect of change in accounting principal		$ (8,021)	$ (8,968)	(9,598)	$ (10,186)	$ (9,147)	$ (7,392)
Impact of ASC 326 Adoption
Property, Plant and Equipment [Line Items]
Allowance for credit loss										278
Impact of ASC 326 Adoption \| Unfunded commitments
Property, Plant and Equipment [Line Items]
Allowance for credit loss										$ 442
Impact of ASC 326 Adoption \| Retained Earnings
Property, Plant and Equipment [Line Items]
Cumulative effect of change in accounting principal				$ 569				$ 569

Equity	9 Months Ended
Equity	Sep. 30, 2023
Equity [Abstract]
Equity	Equity Stock Repurchase Program On November 4, 2022, the Company’s board of directors approved the renewal of its 2022 stock repurchase program that expired on December 31, 2022. The renewed program authorizes the Company to purchase up to $5.0 million of its outstanding shares of common stock from January 1, 2023 through December 31, 2023. Repurchases may be made from time to time in the open market at prevailing prices and based on market conditions, or in privately negotiated transactions. For the three months ended September 30, 2023, the Company repurchased 23,561 shares of its common stock at an aggregate cost of $1.2 million. For the nine months ended September 30, 2023, the Company repurchased 42,250 shares of its common stock at an aggregate cost of $2.1 million. As of September 30, 2023, the Company had $2.9 million available for repurchasing its common stock under this program. AOCI - Transfer of Unrealized Gain (Loss) of Securities AFS and HTM During the second quarter of 2022, the Company reclassified $166.3 million, net of $17.9 million of unrealized loss, from AFS to HTM. The securities were transferred at fair value, which became the cost basis for the securities HTM. The net unrealized loss of $17.9 million, of which $14.2 million, net of tax, was included in AOCI, is being amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer. As of September 30, 2023, the net unamortized, unrealized loss remaining on the transferred securities included in the consolidated balance sheets totaled $14.8 million, of which $11.7 million, net of tax, was included in AOCI. CECL Adjustment - Implementation of Current Expected Credit Losses Methodology related to ASU No. 2016-13 On January 1, 2023, the Company adopted the CECL methodology for estimating credit losses. In the first quarter of 2023, the implementation of CECL resulted in a $720,000 adjustment to the ACL and reserve for unfunded commitments, and a $569,000, net of tax, adjustment to retained earnings.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Regulatory Capital Requirements (Tables)

9 Months Ended

Sep. 30, 2023

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Schedule of compliance with regulatory capital requirements under banking regulations

Capital amounts and ratios for the Company as of September 30, 2023 and December 31, 2022, are presented in the following table:


					Regulatory Requirements
	Actual				Minimum(1)				Well Capitalized(2)
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount	Ratio
September 30, 2023
Total Risk-Based Capital	$	379,516	18.35	%	$	217,143	10.50	%	N/A	N/A
Tier I Risk-Based Capital	$	357,891	17.31	%	$	175,782	8.50	%	N/A	N/A
Common Equity Tier I Capital	$	357,891	17.31	%	$	144,762	7.00	%	N/A	N/A
Tier I Leverage Capital	$	357,891	11.56	%	$	123,798	4.00	%	N/A	N/A

December 31, 2022
Total Risk-Based Capital	$	356,001	17.39	%	N/A		N/A		N/A	N/A
Tier I Risk-Based Capital	$	335,373	16.38	%	N/A		N/A		N/A	N/A
Common Equity Tier I Capital	$	335,373	16.38	%	N/A		N/A		N/A	N/A
Tier I Leverage Capital	$	335,373	10.71	%	N/A		N/A		N/A	N/A

(2)This column refers to the prompt corrective action requirements applicable to banks. Bank holding companies are not subject to prompt corrective action requirements.

Capital amounts and ratios for the Bank as of September 30, 2023 and December 31, 2022, are presented in the following table:


					Regulatory Requirements
	Actual				Minimum(1)				Well Capitalized(2)
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2023
Total Risk-Based Capital	$	370,912	17.94	%	$	217,091	10.50	%	$	206,753	10.00	%
Tier I Risk-Based Capital	$	349,287	16.89	%	$	175,740	8.50	%	$	165,402	8.00	%
Common Equity Tier I Capital	$	349,287	16.89	%	$	144,727	7.00	%	$	134,389	6.50	%
Tier I Leverage Capital	$	349,287	11.29	%	$	123,763	4.00	%	$	154,704	5.00	%

December 31, 2022
Total Risk-Based Capital	$	344,867	16.85	%	$	214,915	10.50	%	$	204,681	10.00	%
Tier I Risk-Based Capital	$	324,239	15.84	%	$	173,979	8.50	%	$	163,745	8.00	%
Common Equity Tier I Capital	$	324,239	15.84	%	$	143,277	7.00	%	$	133,043	6.50	%
Tier I Leverage Capital	$	324,239	10.35	%	$	125,252	4.00	%	$	156,565	5.00	%

(2)This column refers to the prompt corrective action requirements applicable to banks.

Deposits - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
Deposits - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Deposits [Abstract]
Deposits	$ 2,759,893		$ 2,798,936
Decrease in deposits	39,043	$ 113,854
Securities and FHLB letters of credit pledged to secure public entity deposits	$ 210,000		$ 268,600

Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of earnings per share

The computations of basic and diluted earnings per common share for the Company were as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands, except share amounts)	2023		2022		2023		2022
Numerator:
Net income - basic	$	8,021	$	10,186	$	26,587	$	26,725
Net income - diluted	$	8,021	$	10,186	$	26,587	$	26,725

Denominator:
Weighted average shares outstanding - basic	7,168,413		7,183,915		7,176,219		7,179,984
Plus: Effect of Director Compensation Program	170		394		651		1,183
Plus: Effect of restricted stock	11,501		12,791		11,501		12,791
Weighted average shares outstanding - diluted	7,180,084		7,197,100		7,188,371		7,193,958

Earnings per common share:
Basic	$	1.12	$	1.42	$	3.70	$	3.72
Diluted	$	1.12	$	1.42	$	3.70	$	3.71

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income - basic	$ 8,021	$ 10,186	$ 26,587	$ 26,725
Net income - diluted	$ 8,021	$ 10,186	$ 26,587	$ 26,725
Denominator:
Weighted average shares outstanding - basic (in shares)	7,168,413	7,183,915	7,176,219	7,179,984
Weighted average shares outstanding - diluted (in shares)	7,180,084	7,197,100	7,188,371	7,193,958
Earnings per common share:
Basic (in dollars per share)	$ 1.12	$ 1.42	$ 3.70	$ 3.72
Diluted (in dollars per share)	$ 1.12	$ 1.42	$ 3.70	$ 3.71
Plus: Effect of Director Compensation Program
Denominator:
Effect of dilutive securities (in shares)	170	394	651	1,183
Plus: Effect of restricted stock
Denominator:
Effect of dilutive securities (in shares)	11,501	12,791	11,501	12,791

Loans and Asset Quality - Total Loans Held for Investment by Category and Loans Held for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans HFI	$ 1,948,606	$ 1,916,267
Total loans HFS	2,348	518
Real estate \| Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans HFI	829,836	794,723
Real estate \| One-to-four family residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans HFI	579,023	543,511
Real estate \| Construction and development
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans HFI	119,647	157,364
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans HFI	315,388	310,053
SBA PPP, net of deferred income
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans HFI	10	14
Tax-exempt
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans HFI	74,703	83,166
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans HFI	$ 29,999	$ 27,436

Equity (Details) - USD ($) $ in Thousands		3 Months Ended						9 Months Ended		12 Months Ended
Equity (Details) - USD ($) $ in Thousands	Jan. 01, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Nov. 04, 2022
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount											$ 5,000
Stock repurchased (in shares)		23,561						42,250
Stock repurchased value		$ 1,156	$ 601	$ 346			$ 218	$ 2,100
Stock available for repurchasing value		2,900						2,900
Transferred securities of available for sale and held-to-maturity, amount						$ 166,300
AOCI, debt securities, transferred securities of available for sale and held-to-maturity, unrealized loss		14,800				17,900		14,800
AOCI, debt securities, transferred securities of available for sale and held-to-maturity, unrealized loss, net of tax		11,700				14,200		11,700
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]									Accounting Standards Update 2016-13 [Member]
Cumulative effect of change in accounting principal		(8,021)	(8,968)	(9,598)	$ (10,186)	(9,147)	(7,392)	(26,587)	$ (26,725)
Retained Earnings
Equity, Class of Treasury Stock [Line Items]
Cumulative effect of change in accounting principal		$ (8,021)	$ (8,968)	(9,598)	$ (10,186)	$ (9,147)	$ (7,392)
Impact of ASC 326 Adoption
Equity, Class of Treasury Stock [Line Items]
Adjustment to the allowances for credit losses and reserve for unfunded commitments	$ 720
Impact of ASC 326 Adoption \| Retained Earnings
Equity, Class of Treasury Stock [Line Items]
Cumulative effect of change in accounting principal				$ 569				$ 569

Loans and Asset Quality - Summary of Credit Quality Indicators (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
2023	$ 275,637
2022	550,246
2021	463,011
2020	205,228
2019	117,221
Prior Years	191,739
Revolving Lines	145,524
Total	1,948,606	$ 1,916,267
Current period, gross charge-offs, 2023	7
Current period, gross charge-offs, 2022	15
Current period, gross charge-offs, 2021	0
Current period, gross charge-offs, 2020	0
Current period, gross charge-offs, 2019	9
Current period, gross charge-offs, Prior Years	2
Current period, gross charge-offs, Revolving Lines	315
Current period, gross charge-offs, Total	348
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		1,893,491
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total		17,249
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total		5,527
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Real estate \| Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023	79,360
2022	263,604
2021	244,180
2020	78,956
2019	68,133
Prior Years	75,730
Revolving Lines	19,873
Total	829,836	794,723
Real estate \| Commercial real estate \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	79,103
2022	262,810
2021	240,290
2020	78,810
2019	67,074
Prior Years	70,776
Revolving Lines	19,873
Total	818,736	786,394
Real estate \| Commercial real estate \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	73
2022	0
2021	3,217
2020	0
2019	1,059
Prior Years	4,239
Revolving Lines	0
Total	8,588	5,759
Real estate \| Commercial real estate \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	184
2022	794
2021	673
2020	146
2019	0
Prior Years	715
Revolving Lines	0
Total	2,512	2,570
Real estate \| Commercial real estate \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Real estate \| Commercial real estate \| Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Real estate \| One-to-four family residential
Financing Receivable, Credit Quality Indicator [Line Items]
2023	88,609
2022	135,829
2021	133,372
2020	92,033
2019	32,680
Prior Years	80,363
Revolving Lines	16,137
Total	579,023	543,511
Real estate \| One-to-four family residential \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	88,609
2022	135,725
2021	133,372
2020	91,995
2019	32,291
Prior Years	79,060
Revolving Lines	16,062
Total	577,114	542,112
Real estate \| One-to-four family residential \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior Years	262
Revolving Lines	0
Total	262	62
Real estate \| One-to-four family residential \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	104
2021	0
2020	38
2019	389
Prior Years	1,041
Revolving Lines	75
Total	1,647	1,337
Real estate \| One-to-four family residential \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Real estate \| One-to-four family residential \| Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Real estate \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	31,448
2022	68,315
2021	13,986
2020	1,925
2019	2,214
Prior Years	1,040
Revolving Lines	719
Total	119,647	157,364
Real estate \| Construction and development \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	31,448
2022	68,315
2021	13,986
2020	1,925
2019	2,214
Prior Years	1,040
Revolving Lines	719
Total	119,647	157,355
Real estate \| Construction and development \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior Years	0
Revolving Lines	0
Total	0	0
Real estate \| Construction and development \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior Years	0
Revolving Lines	0
Total	0	9
Real estate \| Construction and development \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Real estate \| Construction and development \| Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	59,453
2022	58,288
2021	60,620
2020	16,990
2019	9,198
Prior Years	3,180
Revolving Lines	107,659
Total	315,388	310,053
Commercial and industrial \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	59,422
2022	57,329
2021	55,800
2020	16,984
2019	8,716
Prior Years	1,345
Revolving Lines	103,607
Total	303,203	297,152
Commercial and industrial \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	27
2022	959
2021	4,798
2020	0
2019	423
Prior Years	1,782
Revolving Lines	3,251
Total	11,240	11,428
Commercial and industrial \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	4
2022	0
2021	22
2020	6
2019	59
Prior Years	53
Revolving Lines	801
Total	945	1,473
Commercial and industrial \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Commercial and industrial \| Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
SBA PPP, net of deferred income
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	10
2019	0
Prior Years	0
Revolving Lines	0
Total	10	14
SBA PPP, net of deferred income \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	10
2019	0
Prior Years	0
Revolving Lines	0
Total	10	14
SBA PPP, net of deferred income \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior Years	0
Revolving Lines	0
Total	0	0
SBA PPP, net of deferred income \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior Years	0
Revolving Lines	0
Total	0	0
SBA PPP, net of deferred income \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
SBA PPP, net of deferred income \| Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Tax-exempt
Financing Receivable, Credit Quality Indicator [Line Items]
2023	954
2022	15,679
2021	8,173
2020	14,219
2019	4,530
Prior Years	31,148
Revolving Lines	0
Total	74,703	83,166
Tax-exempt \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	954
2022	15,679
2021	8,173
2020	14,219
2019	4,530
Prior Years	31,148
Revolving Lines	0
Total	74,703	83,166
Tax-exempt \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior Years	0
Revolving Lines	0
Total	0	0
Tax-exempt \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior Years	0
Revolving Lines	0
Total	0	0
Tax-exempt \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Tax-exempt \| Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023	15,813
2022	8,531
2021	2,680
2020	1,095
2019	466
Prior Years	278
Revolving Lines	1,136
Total	29,999	27,436
Consumer \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	15,813
2022	8,505
2021	2,680
2020	1,095
2019	466
Prior Years	184
Revolving Lines	1,127
Total	29,870	27,298
Consumer \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior Years	0
Revolving Lines	0
Total	0	0
Consumer \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	26
2021	0
2020	0
2019	0
Prior Years	94
Revolving Lines	9
Total	$ 129	138
Consumer \| Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total		0
Consumer \| Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Total		$ 0

Loans and Asset Quality (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of loans information

Loans HFI by category and loans HFS are summarized below:



(in thousands)	September 30, 2023		December 31, 2022
Real estate:
Commercial real estate	$	829,836	$	794,723
One-to-four family residential	579,023		543,511
Construction and development	119,647		157,364
Commercial and industrial	315,388		310,053
SBA PPP, net of deferred income	10		14
Tax-exempt	74,703		83,166
Consumer	29,999		27,436
Total loans HFI	$	1,948,606	$	1,916,267
Total loans HFS	$	2,348	$	518

Schedule of allowance for credit losses

The following table summarizes the activity in the ACL by category for the nine months ended September 30, 2023:


(in thousands)	Beginning Balance December 31, 2022		Impact of ASC 326 Adoption		Provision for Credit Losses		Charge-offs		Recoveries		Ending Balance September 30, 2023
Real Estate:
Commercial real estate	$	7,720	$	876	$	53	$	—	$	—	$	8,649
One-to-four family residential	5,682		1,231		554		—		8		7,475
Construction and development	1,654		(444)		32		(9)		—		1,233
Commercial and industrial	4,350		(822)		(562)		(51)		25		2,940
SBA PPP, net of deferred income	—		—		—		—		—		—
Tax-exempt	751		(427)		255		—		—		579
Consumer	471		(136)		153		(288)		107		307
Total allowance for credit losses	$	20,628	$	278	$	485	$	(348)	$	140	$	21,183

The following table summarizes the activity in the allowance for loan losses by category for the twelve months ended December 31, 2022:


(in thousands)	Beginning Balance December 31, 2021		Provision for Loan Losses		Charge-offs		Recoveries		Ending Balance December 31, 2022
Real estate:
Commercial real estate	$	6,749	$	970	$	—	$	1	$	7,720
One-to-four family residential	5,375		296		—		11		5,682
Construction and development	1,326		328		(18)		18		1,654
Commercial and industrial	4,440		(137)		(39)		86		4,350
SBA PPP, net of deferred income	25		(25)		—		—		—
Tax-exempt	749		2		—		—		751
Consumer	512		316		(490)		133		471
Total allowance for loan losses	$	19,176	$	1,750	$	(547)	$	249	$	20,628

Schedule of financing receivable, nonaccrual

The following table presents nonaccrual loans as of September 30, 2023:


(in thousands)	Nonaccrual with No ACL		Nonaccrual with ACL		Total Nonaccrual
Real estate:
Commercial real estate	$	—	$	715	$	715
One-to-four family residential	—		297		297
Construction and development	—		—		—
Commercial and industrial	711		8		719
SBA PPP, net of deferred income	—		—		—
Tax-exempt	—		—		—
Consumer	—		93		93
Total loans HFI	$	711	$	1,113	$	1,824

Schedule of financing receivable past due

The following table presents the aging analysis of the past due loans and loans 90 days or more past due and still accruing interest by loan category as of September 30, 2023:


	Past Due
(in thousands)	30-59 Days		60-89 Days		90 Days or More		Current		Total Loans HFI		90 Days or More Past Due and Accruing
Real estate:
Commercial real estate	$	8	$	—	$	747	$	829,081	$	829,836	$	69
One-to-four family residential	595		47		322		578,059		579,023		149
Construction and development	382		—		—		119,265		119,647		—
Commercial and industrial	121		279		714		314,274		315,388		—
SBA PPP, net of deferred income	—		—		—		10		10		—
Tax-exempt	—		—		—		74,703		74,703		—
Consumer	60		12		4		29,923		29,999		4
Total loans HFI	$	1,166	$	338	$	1,787	$	1,945,315	$	1,948,606	$	222

The following table presents the current, past due, and nonaccrual loans by loan category as of December 31, 2022:


	Accruing
(in thousands)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonaccrual		Total Loans
Real estate:
Commercial real estate	$	793,540	$	463	$	—	$	720	$	794,723
One-to-four family residential	542,666		602		—		243		543,511
Construction and development	157,355		—		—		9		157,364
Commercial and industrial	308,597		165		—		1,291		310,053
SBA PPP, net of deferred income	14		—		—		—		14
Tax-exempt	83,166		—		—		—		83,166
Consumer	27,291		42		2		101		27,436
Total loans HFI	$	1,912,629	$	1,272	$	2	$	2,364	$	1,916,267

Schedule of impaired financing receivable

Information pertaining to impaired loans as of December 31, 2022, is as follows:


(in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment
With no related allowance recorded:
Real estate:
Commercial real estate	$	3,804	$	3,796	$	—	$	3,194
One-to-four family residential	1,458		1,387		—		797
Construction and development	9		9		—		104
Commercial and industrial	51		51		—		58
SBA PPP, net of deferred income	—		—		—		—
Tax-exempt	—		—		—		—
Consumer	26		26		—		9
Total with no related allowance	5,348		5,269		—		4,162
With allowance recorded:
Real estate:
Commercial real estate	717		717		15		1,264
One-to-four family residential	120		120		16		48
Construction and development	—		—		—		—
Commercial and industrial	1,360		1,351		172		623
SBA PPP, net of deferred income	—		—		—		—
Tax-exempt	—		—		—		—
Consumer	113		111		111		122
Total with related allowance	2,310		2,299		314		2,057
Total impaired loans	$	7,658	$	7,568	$	314	$	6,219

Schedule of TDRs with modification

A summary of loans modified as TDRs that occurred during the period indicated is as follows:


	For the Nine Months Ended
	September 30, 2022
		Recorded Investment
(dollars in thousands)	Loan Count	Pre Modification		Post Modification
Real estate:
Commercial real estate	1	$	50	$	50
One-to-four family residential	4	673		677
Construction and development	—	—		—
Commercial and industrial	—	—		—
SBA PPP, net of deferred income	—	—		—
Tax-exempt	—	—		—
Consumer	1	104		104
Total	6	$	827	$	831

Schedule of credit quality indicators

The following table summarizes loans by risk rating and year of origination as of September 30, 2023:


	Year of Origination
(in thousands)	2023		2022		2021		2020		2019		Prior Years		Revolving Lines		Total
Real estate:
Commercial real estate
Pass	$	79,103	$	262,810	$	240,290	$	78,810	$	67,074	$	70,776	$	19,873	$	818,736
Special mention	73		—		3,217		—		1,059		4,239		—		8,588
Substandard	184		794		673		146		—		715		—		2,512


Total	$	79,360	$	263,604	$	244,180	$	78,956	$	68,133	$	75,730	$	19,873	$	829,836

One-to-four family residential
Pass	$	88,609	$	135,725	$	133,372	$	91,995	$	32,291	$	79,060	$	16,062	$	577,114
Special mention	—		—		—		—		—		262		—		262
Substandard	—		104		—		38		389		1,041		75		1,647


Total	$	88,609	$	135,829	$	133,372	$	92,033	$	32,680	$	80,363	$	16,137	$	579,023

Construction and development
Pass	$	31,448	$	68,315	$	13,986	$	1,925	$	2,214	$	1,040	$	719	$	119,647
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—


Total	$	31,448	$	68,315	$	13,986	$	1,925	$	2,214	$	1,040	$	719	$	119,647

Commercial and industrial
Pass	$	59,422	$	57,329	$	55,800	$	16,984	$	8,716	$	1,345	$	103,607	$	303,203
Special mention	27		959		4,798		—		423		1,782		3,251		11,240
Substandard	4		—		22		6		59		53		801		945


Total	$	59,453	$	58,288	$	60,620	$	16,990	$	9,198	$	3,180	$	107,659	$	315,388

SBA PPP, net of deferred income
Pass	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—


Total	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10

Tax-exempt
Pass	$	954	$	15,679	$	8,173	$	14,219	$	4,530	$	31,148	$	—	$	74,703
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—


Total	$	954	$	15,679	$	8,173	$	14,219	$	4,530	$	31,148	$	—	$	74,703

Consumer
Pass	$	15,813	$	8,505	$	2,680	$	1,095	$	466	$	184	$	1,127	$	29,870
Special mention	—		—		—		—		—		—		—		—
Substandard	—		26		—		—		—		94		9		129


Total	$	15,813	$	8,531	$	2,680	$	1,095	$	466	$	278	$	1,136	$	29,999

Total loans HFI	$	275,637	$	550,246	$	463,011	$	205,228	$	117,221	$	191,739	$	145,524	$	1,948,606

Current period gross charge-offs	$	7	$	15	$	—	$	—	$	9	$	2	$	315	$	348

The following table summarizes loans by risk rating as of December 31, 2022:


(in thousands)	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Real estate:
Commercial real estate	$	786,394	$	5,759	$	2,570	$	—	$	—	$	794,723
One-to-four family residential	542,112		62		1,337		—		—		543,511
Construction and development	157,355		—		9		—		—		157,364
Commercial and industrial	297,152		11,428		1,473		—		—		310,053
SBA PPP, net of deferred income	14		—		—		—		—		14
Tax-exempt	83,166		—		—		—		—		83,166
Consumer	27,298		—		138		—		—		27,436
Total loans HFI	$	1,893,491	$	17,249	$	5,527	$	—	$	—	$	1,916,267

Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Deposits [Abstract]
Noninterest-bearing demand deposits	$ 972,155	$ 1,090,539
Interest-bearing deposits:
Interest-bearing demand deposits	145,764	89,144
NOW accounts	382,047	503,308
Money market accounts	531,740	578,161
Savings accounts	178,933	195,479
Time deposits less than or equal to $250,000	380,564	250,875
Time deposits greater than $250,000	168,690	91,430
Total interest-bearing deposits	1,787,738	1,708,397
Total Deposits	$ 2,759,893	$ 2,798,936

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 23,925	$ 19,740	$ 68,541	$ 54,543
Interest on securities	3,404	3,572	10,635	10,210
Interest on federal funds sold	0	317	886	458
Interest on deposits in other banks	2,950	1,238	6,359	2,160
Dividends on stock	45	19	106	22
Total Interest and Dividend Income	30,324	24,886	86,527	67,393
INTEREST EXPENSE
Interest on deposits	9,562	1,798	21,319	4,428
Interest on other borrowed funds	37	0	64	0
Total Interest Expense	9,599	1,798	21,383	4,428
Net Interest Income	20,725	23,088	65,144	62,965
Provision for credit losses	185	600	485	1,000
Net Interest Income After Provision for Credit Losses	20,540	22,488	64,659	61,965
NONINTEREST INCOME
Service charges on deposit accounts	1,489	1,488	4,317	4,205
Debit card income, net	830	934	2,687	2,926
Mortgage loan income	604	624	1,524	2,643
Brokerage income	1,029	870	2,759	2,536
Loan and deposit income	571	502	1,566	1,283
Bank-owned life insurance income	191	181	557	533
Gain (Loss) on equity securities	(113)	0	(145)	(447)
Gain (Loss) on sale and call of securities	0	16	0	(59)
SBIC income	920	231	2,479	401
Other income (loss)	60	21	184	107
Total Noninterest Income	5,581	4,867	15,928	14,128
OPERATING EXPENSES
Personnel expenses	9,461	8,853	28,008	25,879
Occupancy and equipment expenses	1,663	1,531	4,933	4,496
Technology expenses	675	653	2,066	2,118
Advertising	331	316	955	841
Other business development expenses	522	436	1,451	1,079
Data processing expense	651	604	1,689	1,484
Other taxes	664	650	2,042	1,933
Loan and deposit expenses	238	164	728	479
Legal and professional expenses	616	553	1,714	1,446
Regulatory assessment expenses	419	280	1,223	781
Other operating expenses	990	1,001	3,041	3,037
Total Operating Expenses	16,230	15,041	47,850	43,573
Income Before Income Tax Expense	9,891	12,314	32,737	32,520
Income tax expense	1,870	2,128	6,150	5,795
Net Income	$ 8,021	$ 10,186	$ 26,587	$ 26,725
EARNINGS PER SHARE
Basic (in dollars per share)	$ 1.12	$ 1.42	$ 3.70	$ 3.72
Diluted (in dollars per share)	$ 1.12	$ 1.42	$ 3.70	$ 3.71

Contingencies	9 Months Ended
Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	ContingenciesThe Company and the Bank are involved, from time to time, in various legal matters arising in the ordinary course of business. While the outcome of these claims or litigation cannot be determined at this time, in the opinion of management, neither the Company nor the Bank are involved in such legal proceedings that the resolution is expected to have a material adverse effect on the consolidated results of operations, financial condition, or cash flows.

Securities - Schedule of Proceeds from Sale Of Debt Securities and Their Gains (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 0	$ 731	$ 0	$ 41,234
Gross gain	0	16	0	64
Gross loss	$ 0	$ 0	$ 0	$ (123)

Regulatory Capital Requirements - Schedule of Regulatory Requirements (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Red River Bancshares, Inc.
Total Risk-Based Capital
Actual Amount	$ 379,516	$ 356,001
Actual Ratio (percent)	0.1835	0.1739
Regulatory Requirements, Minimum, Amount	$ 217,143
Regulatory Requirements, Minimum, Ratio (percent)	0.1050
Tier I Risk-Based Capital
Actual Amount	$ 357,891	$ 335,373
Actual Ratio (percent)	0.1731	0.1638
Regulatory Requirements, Minimum, Amount	$ 175,782
Regulatory Requirements, Minimum, Ratio (percent)	0.0850
Common Equity Tier I Capital
Actual Amount	$ 357,891	$ 335,373
Actual Ratio (percent)	0.1731	0.1638
Regulatory Requirements, Minimum, Amount	$ 144,762
Regulatory Requirements, Minimum, Ratio (percent)	0.0700
Tier I Leverage Capital
Actual Amount	$ 357,891	$ 335,373
Actual Ratio (percent)	0.1156	0.1071
Regulatory Requirements, Minimum, Amount	$ 123,798
Regulatory Requirements, Minimum, Ratio (percent)	0.0400
Red River Bank
Total Risk-Based Capital
Actual Amount	$ 370,912	$ 344,867
Actual Ratio (percent)	0.1794	0.1685
Regulatory Requirements, Minimum, Amount	$ 217,091	$ 214,915
Regulatory Requirements, Minimum, Ratio (percent)	0.1050	0.1050
Regulatory Requirements, Minimum Plus CCB, Amount	$ 206,753	$ 204,681
Regulatory Requirements, Minimum Plus CCB, Ratio (percent)	0.1000	0.1000
Tier I Risk-Based Capital
Actual Amount	$ 349,287	$ 324,239
Actual Ratio (percent)	0.1689	0.1584
Regulatory Requirements, Minimum, Amount	$ 175,740	$ 173,979
Regulatory Requirements, Minimum, Ratio (percent)	0.0850	0.0850
Regulatory Requirements, Minimum Plus CCB, Amount	$ 165,402	$ 163,745
Regulatory Requirements, Minimum Plus CCB, Ratio (percent)	0.0800	0.0800
Common Equity Tier I Capital
Actual Amount	$ 349,287	$ 324,239
Actual Ratio (percent)	0.1689	0.1584
Regulatory Requirements, Minimum, Amount	$ 144,727	$ 143,277
Regulatory Requirements, Minimum, Ratio (percent)	0.0700	0.0700
Regulatory Requirements, Minimum Plus CCB, Amount	$ 134,389	$ 133,043
Regulatory Requirements, Minimum Plus CCB, Ratio (percent)	0.0650	0.0650
Tier I Leverage Capital
Actual Amount	$ 349,287	$ 324,239
Actual Ratio (percent)	0.1129	0.1035
Regulatory Requirements, Minimum, Amount	$ 123,763	$ 125,252
Regulatory Requirements, Minimum, Ratio (percent)	0.0400	0.0400
Regulatory Requirements, Minimum Plus CCB, Amount	$ 154,704	$ 156,565
Regulatory Requirements, Minimum Plus CCB, Ratio (percent)	0.0500	0.0500

Loans and Asset Quality - Schedule of Aging Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	$ 1,948,606	$ 1,916,267
Financing receivable, 90 days or more past due and accruing	222
30-59 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	1,166
60-89 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	338	1,272
90 Days or More
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	1,787	2
Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	1,945,315	1,912,629
Real estate \| Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	829,836	794,723
Financing receivable, 90 days or more past due and accruing	69
Real estate \| Commercial real estate \| 30-59 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	8
Real estate \| Commercial real estate \| 60-89 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	0	463
Real estate \| Commercial real estate \| 90 Days or More
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	747	0
Real estate \| Commercial real estate \| Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	829,081	793,540
Real estate \| One-to-four family residential
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	579,023	543,511
Financing receivable, 90 days or more past due and accruing	149
Real estate \| One-to-four family residential \| 30-59 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	595
Real estate \| One-to-four family residential \| 60-89 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	47	602
Real estate \| One-to-four family residential \| 90 Days or More
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	322	0
Real estate \| One-to-four family residential \| Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	578,059	542,666
Real estate \| Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	119,647	157,364
Financing receivable, 90 days or more past due and accruing	0
Real estate \| Construction and development \| 30-59 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	382
Real estate \| Construction and development \| 60-89 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	0	0
Real estate \| Construction and development \| 90 Days or More
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	0	0
Real estate \| Construction and development \| Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	119,265	157,355
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	315,388	310,053
Financing receivable, 90 days or more past due and accruing	0
Commercial and industrial \| 30-59 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	121
Commercial and industrial \| 60-89 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	279	165
Commercial and industrial \| 90 Days or More
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	714	0
Commercial and industrial \| Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	314,274	308,597
SBA PPP, net of deferred income
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	10	14
Financing receivable, 90 days or more past due and accruing	0
SBA PPP, net of deferred income \| 30-59 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	0
SBA PPP, net of deferred income \| 60-89 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	0	0
SBA PPP, net of deferred income \| 90 Days or More
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	0	0
SBA PPP, net of deferred income \| Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	10	14
Tax-exempt
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	74,703	83,166
Financing receivable, 90 days or more past due and accruing	0
Tax-exempt \| 30-59 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	0
Tax-exempt \| 60-89 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	0	0
Tax-exempt \| 90 Days or More
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	0	0
Tax-exempt \| Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	74,703	83,166
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	29,999	27,436
Financing receivable, 90 days or more past due and accruing	4
Consumer \| 30-59 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	60
Consumer \| 60-89 Days
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	12	42
Consumer \| 90 Days or More
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	4	2
Consumer \| Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, excluding accrued interest, before allowance for credit loss	$ 29,923	$ 27,291