Bank7 Corp. (NASDAQ:BSVN) Q3 2023 Earnings Conference Call October 26, 2023 10:00 AM ET Company Participants Tom Travis - President & Chief Executive Officer Jason Estes - Chief Credit Officer Kelly Harris - Chief Financial Officer Conference Call Participants Thomas Wendler - Stephens Nathan Race - Piper Sandler Operator Welcome to the Bank7 Corp's Third Quarter Earnings Call. Before we get started, I'd like to highlight the legal information and disclaimer on page 25 of the investor presentation. For thos ...

Financial Performance - Total assets increased to $1.772 billion, a 12.1% increase compared to Q3 2022[2] - Total loans reached $1.393 billion, a 12.9% increase compared to Q3 2022[2] - Total deposits amounted to $1.594 billion, a 10.9% increase compared to Q3 2022[2] - Net income was $10.907 million, a decrease of 2.3% compared to Q3 2022[2] - Pre-provision pre-tax earnings reached $14.37 million[2] Balance Sheet & Liquidity - Uninsured deposits represent 22.77% of total deposits[7] - Adjusted uninsured deposits represent 17.76% of total deposits[7] - Cash plus unpledged securities and undrawn lines-of-credit equals $482.29 million, providing 1.70x coverage of adjusted uninsured deposits[7] - $1.08 billion or 77.52% of loans reprice in 1 year or less[17] Loan Portfolio - Commercial & Industrial loans accounted for $343.80 million or 24.63% of the loan portfolio[74] - Hospitality loans accounted for $292.80 million or 20.97% of the loan portfolio[74] - Energy loans accounted for $223.50 million or 16.01% of the loan portfolio[74] Efficiency & Profitability - Efficiency ratio decreased to 33.61%, a 14.86% decrease compared to Q3 2022[7] - Noninterest expense to average assets was 1.71%, an 8.08% decrease compared to Q3 2022[17]

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. During the six months ended June 30, 2023, no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent. Impaired loans included nonperforming loans and also included loans modified in troubled-debt restructurings where concession ...

Bank7 Corp. (NASDAQ:BSVN) Q2 2023 Results Conference Call July 20, 2023 10:00 AM ET Company Participants Tom Travis - President, CEO Jason Estes - CCO Kelly Harris - CFO Conference Call Participants Brady Gailey - KBW Nathan Race - Piper Sandler Tom Wendler - Stephens Operator Good morning, everyone. Welcome to Bank7 Second Quarter Earnings Call. Before we get started, I'd like to highlight the legal information and disclaimer on Page 25 of the investor presentation. For those who do not have access to the ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements, management's analysis, market risk disclosures, and controls for the reporting period [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2023 report increased net income and total assets, reflecting the adoption of the CECL methodology [Unaudited Condensed Consolidated Balance Sheets](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and shareholders' equity as of March 31, 2023, and December 31, 2022 Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,660,539** | **$1,584,169** | | Loans, net | $1,263,911 | $1,255,722 | | Total Deposits | $1,491,559 | $1,429,300 | | **Total Liabilities** | **$1,506,533** | **$1,440,069** | | **Total Shareholders' Equity** | **$154,006** | **$144,100** | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section outlines the company's financial performance, including net interest income, provision for credit losses, and net income for the reporting periods Statements of Comprehensive Income Highlights (in thousands, except per share data) | Metric | Three months ended March 31, 2023 | Three months ended March 31, 2022 | | :--- | :--- | :--- | | Net Interest Income | $20,006 | $14,208 | | Provision for Credit Losses | $475 | $276 | | **Net Income** | **$9,607** | **$6,184** | | Earnings per common share - basic | $1.05 | $0.68 | | Earnings per common share - diluted | $1.04 | $0.67 | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) This section details changes in shareholders' equity, including net income, dividends, and the impact of accounting principle changes - Total shareholders' equity increased from **$128.6 million** at March 31, 2022, to **$154.0 million** at March 31, 2023, driven by **net income of $9.6 million**, partially offset by **cash dividends of $1.5 million** and a **CECL adoption impact of ($572,000)**[39](index=39&type=chunk) - Cash dividends declared increased to **$0.16 per share** for the quarter ended March 31, 2023, up from **$0.12 per share** for the same period in 2022[39](index=39&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three months ended March 31, 2023 | Three months ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $13,573 | $12,160 | | Net cash used in investing activities | ($6,168) | ($147,368) | | Net cash provided by financing activities | $60,869 | $64,642 | | **Net Increase/(Decrease) in Cash** | **$68,274** | **($70,566)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of significant accounting policies, estimates, and financial statement line items, including CECL adoption - On January 1, 2023, the Company adopted ASU 2016-13 (CECL), resulting in a **net decrease to retained earnings of $572,000**[25](index=25&type=chunk)[48](index=48&type=chunk) - The adoption of CECL increased the allowance for credit losses on loans by **$250,000** and established a new allowance for credit losses on off-balance sheet credit exposures of **$500,000** as of January 1, 2023[26](index=26&type=chunk)[49](index=49&type=chunk) - The Company's loan portfolio is segmented into Commercial & Industrial, Real Estate, Agricultural, and Consumer categories for risk assessment, utilizing both asset-specific and pooled component methodologies for credit loss estimation[54](index=54&type=chunk)[95](index=95&type=chunk)[116](index=116&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights strong Q1 2023 performance with increased pre-tax income, expanded net interest margin, and robust asset growth, while maintaining strong capital levels [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, focusing on income, expenses, and key profitability metrics for the reporting period - Pre-tax income for Q1 2023 was **$12.6 million**, a significant increase from **$8.2 million** in Q1 2022, with return on average equity improving to **26.15%** from **19.26%**[236](index=236&type=chunk)[237](index=237&type=chunk) - Net interest margin expanded to **5.14%** in Q1 2023 from **4.42%** in Q1 2022, driven by a **$267.2 million** increase in average loans and a rise in loan yields to **8.09%** from **5.81%**[215](index=215&type=chunk)[240](index=240&type=chunk) - The provision for credit losses was **$475,000** for Q1 2023, compared to **$276,000** for Q1 2022[212](index=212&type=chunk) - Noninterest expense increased by **19.1%** to **$7.6 million** in Q1 2023, primarily due to a **16.2%** rise in salaries and employee benefits to remain competitive[223](index=223&type=chunk)[224](index=224&type=chunk) [Financial Condition](index=41&type=section&id=Financial%20Condition) This section reviews the company's balance sheet, including asset growth, loan portfolio composition, credit quality, and capital adequacy - Total assets increased by **4.8%** to **$1.66 billion** as of March 31, 2023, from **$1.58 billion** at year-end 2022, driven by organic growth[226](index=226&type=chunk) Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2023 | % of Total | Dec 31, 2022 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Commercial real estate | $703,546 | 54.9% | $679,132 | 53.3% | | Commercial & industrial | $502,282 | 39.2% | $513,011 | 40.3% | | Agricultural | $60,870 | 4.7% | $66,145 | 5.2% | | Consumer | $15,135 | 1.2% | $14,949 | 1.2% | | **Gross loans** | **$1,281,833** | **100.0%** | **$1,273,237** | **100.0%** | - The allowance for credit losses increased to **$15.5 million** at March 31, 2023, from **$14.7 million** at December 31, 2022, representing **1.21%** of total loans at quarter-end[229](index=229&type=chunk)[246](index=246&type=chunk) - Total deposits grew to **$1.49 billion** at March 31, 2023, from **$1.43 billion** at year-end 2022, with noninterest-bearing deposits constituting **28.6%** of total deposits[266](index=266&type=chunk)[292](index=292&type=chunk) - The Company and the Bank exceeded all regulatory capital requirements and were considered "well-capitalized" as of March 31, 2023[270](index=270&type=chunk)[311](index=311&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate volatility, managed by ALCO through balance sheet structuring and simulation modeling, showing sensitivity of net interest income to rate changes - The primary component of market risk for the company is interest rate volatility, managed by the Asset/Liability Committee (ALCO) in accordance with board-approved policies[143](index=143&type=chunk)[146](index=146&type=chunk) Simulated Change in Net Interest Income & Fair Value of Equity (12-Month Horizon) | Change in Interest Rates (Basis Points) | % Change in Net Interest Income (Mar 2023) | % Change in Fair Value of Equity (Mar 2023) | | :--- | :--- | :--- | | +400 | 16.07% | 18.57% | | +300 | 12.04% | 17.77% | | +200 | 7.98% | 16.79% | | +100 | 3.88% | 15.55% | | Base | -0.50% | 14.16% | | -100 | -5.21% | 12.53% | [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting - Based on an evaluation as of March 31, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[153](index=153&type=chunk) - No changes occurred in the company's internal control over financial reporting during the first quarter of 2023 that have materially affected, or are reasonably likely to materially affect, these controls[154](index=154&type=chunk) [PART II. OTHER INFORMATION](index=52&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section addresses legal proceedings, key risk factors, equity security sales, defaults, and required exhibits [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to routine legal actions incidental to its business but does not expect any to have a material adverse effect on its financial statements - The company is involved in routine legal actions incidental to its business but does not expect any to have a material adverse effect on its financial statements[155](index=155&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from its high concentration in Commercial Real Estate lending and potential adverse impacts from broader banking industry developments - The company has a significant concentration in Commercial Real Estate (CRE) lending, with Regulatory CRE representing **290.49%** of total Bank capital as of March 31, 2023, nearing the **300%** regulatory guidance threshold for additional supervisory analysis[157](index=157&type=chunk)[159](index=159&type=chunk) - Recent bank failures in the industry are cited as a risk factor, potentially decreasing customer confidence and leading to deposit outflows, which could adversely impact liquidity and results of operations[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a stock repurchase plan authorizing the buyback of up to 750,000 shares of its common stock, approved on October 28, 2021, with no shares repurchased during Q1 2023 - The company has a board-approved repurchase plan authorizing up to **750,000 shares**, but no shares were purchased under this plan during the three months ended March 31, 2023[163](index=163&type=chunk) [Item 3. Defaults Upon Senior Securities](index=53&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[164](index=164&type=chunk)[308](index=308&type=chunk) [Item 4. Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[164](index=164&type=chunk) [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) There was no other information to report for the period - None[164](index=164&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act of 2002 and XBRL data files - The report includes required certifications from the Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1) and XBRL instance documents[165](index=165&type=chunk)

Bank7 Corp. (NASDAQ:BSVN) Q1 2023 Earnings Conference Call April 27, 2023 10:00 AM ET Company Participants Thomas Travis - Chief Executive Officer Jason Estes - Chief Credit Officer Kelly Harris - Chief Financial Officer Conference Call Participants Nathan Race - Piper Sandler Brady Gailey - KBW Matt Olney - Stephens Operator Welcome to Bank7 Corp's First Quarter Earnings Call. Before we get started, I'd like to highlight the legal information and disclaimer on Page 23 of the investor presentation. For thos ...

A summary of the fair value of assets acquired and liabilities assumed from Watonga are as follows: | --- | --- | --- | |-----------------------------------------------|-----------|--------------| | (in thousands) \nAssets Acquired | Estimated | Fair Value | | Cash and cash equivalents | $ | 41,747 | | Available-for-sale debt securities | | 86,166 | | Federal funds sold | | 7,941 | | Loans | | 117,335 | | Premises and equipment | | 8,669 | | Core deposit intangible | | 1,254 | | Prepaid expenses and other a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38656 Bank7 Corp. (Exact name of registrant as specified in its charter) Oklahoma 20-0763496 ( State or other jurisdiction of ...

Bank7 Corp. (NASDAQ:BSVN) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET Company Representatives Brad Haines - Chairman Tom Travis - President, Chief Executive Officer J.T. Phillips - Chief Operating Officer Jason Estes - Chief Credit Officer Kelly Harris - Chief Financial Officer. Conference Call Participants Thomas Wendler - Stephens Woody Lee - KBW Nathan Race - Piper Sandler Operator Welcome to the Bank7 Corp, Third Quarter Earnings Call. Before we get started, I'd like to highlight the l ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Bank7 Corp. as of June 30, 2022, and for the three and six-month periods then ended, including balance sheets, statements of comprehensive income, statements of shareholders' equity, and statements of cash flows, along with accompanying notes [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2022, total assets grew to **$1.49 billion** from **$1.35 billion** at year-end 2021, driven by an increase in net loans, with total deposits also increasing to **$1.35 billion** from **$1.22 billion** and total shareholders' equity rising to **$131.5 million** Condensed Consolidated Balance Sheet Data (in thousands) | Balance Sheet Item | June 30, 2022 (unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,487,474** | **$1,350,549** | | Net Loans | $1,141,497 | $1,018,085 | | Total Deposits | $1,346,291 | $1,217,471 | | **Total Liabilities** | **$1,355,976** | **$1,223,141** | | **Total Shareholders' Equity** | **$131,498** | **$127,408** | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the second quarter of 2022, net income increased to **$7.0 million** from **$6.1 million** in the prior-year period, and for the six months ended June 30, 2022, net income was **$13.2 million**, up from **$11.2 million** year-over-year, driven by higher net interest income and lower provision for loan losses Key Income Statement Data (in thousands, except per share data) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $15,794 | $13,665 | $30,002 | $25,977 | | Provision for Loan Losses | $219 | $1,300 | $495 | $2,575 | | **Net Income** | **$7,024** | **$6,105** | **$13,208** | **$11,209** | | Earnings per share - basic | $0.77 | $0.67 | $1.45 | $1.24 | | Earnings per share - diluted | $0.76 | $0.67 | $1.44 | $1.24 | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased from **$127.4 million** at the end of 2021 to **$131.5 million** at June 30, 2022, driven by **$13.2 million** in net income, partially offset by **$2.2 million** in cash dividends and a **$7.9 million** net unrealized loss on securities Changes in Shareholders' Equity - Six Months Ended June 30, 2022 (in thousands) | Component | Amount | | :--- | :--- | | Beginning Balance (Dec 31, 2021) | $127,408 | | Net Income | $13,208 | | Cash Dividends Declared | ($2,183) | | Net Change in AOCI (Unrealized Loss) | ($7,927) | | Stock-based Compensation & Options | $992 | | **Ending Balance (June 30, 2022)** | **$131,498** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, the company experienced a net decrease in cash and cash equivalents of **$81.4 million**, primarily due to **$233.0 million** in cash used in investing activities, partially offset by **$24.9 million** from operating activities and **$126.6 million** from financing activities Net Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $24,917 | $17,307 | | Net cash used in investing activities | ($232,972) | ($84,521) | | Net cash provided by financing activities | $126,640 | $101,045 | | **(Decrease) Increase in Cash and Cash Equivalents** | **($81,415)** | **$33,831** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information supporting the financial statements, including the acquisition of Watonga Bancshares, Inc., loan and debt securities portfolios, allowance for loan losses, nonperforming assets, regulatory capital adequacy, and off-balance sheet arrangements - On December 9, 2021, the Company acquired Watonga Bancshares, Inc. for **$29.3 million** in cash, which added approximately **$267.6 million** in assets and **$245.8 million** in liabilities[34](index=34&type=chunk)[36](index=36&type=chunk) - Gross loans increased to **$1.16 billion** at June 30, 2022, from **$1.03 billion** at December 31, 2021, with Commercial & Industrial and Construction & Development loans showing significant growth[53](index=53&type=chunk) - The allowance for loan losses increased to **$10.8 million** as of June 30, 2022, from **$10.3 million** at year-end 2021. The allowance as a percentage of gross loans was **0.94%**[56](index=56&type=chunk)[156](index=156&type=chunk) - As of June 30, 2022, the Company and the Bank met all capital adequacy requirements, with the Bank being categorized as well capitalized. The Bank's Tier 1 capital to risk-weighted assets ratio was **11.21%**, well above the **8.50%** requirement to be considered well-capitalized with the conservation buffer[87](index=87&type=chunk)[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance and condition, highlighting strong organic loan and deposit growth, with pre-tax income increasing year-over-year for both the second quarter and first six months of 2022, driven by higher net interest income [Results of Operations](index=32&type=section&id=Results%20of%20Operations) For the second quarter of 2022, pre-tax income rose to **$9.3 million** from **$8.1 million** year-over-year, driven by a **15.5%** increase in interest income, while net interest margin decreased to **4.47%** from **5.38%** due to lower loan yields and reduced PPP loan fee income Performance Summary (in thousands) | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Pre-tax Income | $9,304 | $8,069 | $17,491 | $14,899 | | Net Interest Income | $15,794 | $13,665 | $30,002 | $25,977 | | Provision for Loan Losses | $219 | $1,300 | $495 | $2,575 | - Net interest margin decreased to **4.47%** in Q2 2022 from **5.38%** in Q2 2021, primarily due to a **68 basis point** decrease in loan yields and a **$1.0 million** decrease in nonrecurring PPP loan fee income[141](index=141&type=chunk)[142](index=142&type=chunk) - Noninterest expense for Q2 2022 increased by **$2.1 million** (**42.8%**) year-over-year, with salaries and employee benefits rising by **$1.2 million** due to organic growth and the Watonga acquisition[161](index=161&type=chunk) [Financial Condition](index=39&type=section&id=Financial%20Condition) As of June 30, 2022, total assets increased **10.2%** to **$1.5 billion** from year-end 2021, fueled by strong organic loan growth, with gross loans reaching **$1.2 billion** and deposits growing to **$1.3 billion**, while nonperforming assets decreased to **$9.5 million** (**0.64%** of total assets) Loan Portfolio Composition (in thousands) | Loan Category | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Commercial real estate | $604,047 | $571,948 | | Commercial & industrial | $475,197 | $361,974 | | Agricultural | $59,644 | $73,010 | | Consumer & Other | $85,824 | $87,017 | | **Gross Loans** | **$1,155,445** | **$1,030,978** | Nonperforming Assets (in thousands) | Metric | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Nonaccrual loans | $9,473 | $9,885 | | Total nonperforming loans | $9,542 | $10,381 | | **Total nonperforming assets** | **$9,542** | **$10,381** | | Ratio of NPA to total assets | 0.64% | 0.77% | - Total deposits increased to **$1.35 billion**, with noninterest-bearing deposits growing to **33.2%** of total deposits, up from **30.1%** at year-end 2021[202](index=202&type=chunk)[203](index=203&type=chunk) [Critical Accounting Policies and Estimates](index=50&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies the Allowance for Loan and Lease Losses, Goodwill and Intangibles, and Income Taxes as critical accounting policies requiring significant estimates and judgments, and the company has elected to use the extended transition period for new accounting standards under the JOBS Act - The determination of the Allowance for Loan Losses is a critical estimate, involving a comprehensive loan grading system, historical loss factors, and evaluation of economic conditions[229](index=229&type=chunk)[230](index=230&type=chunk) - Goodwill is tested annually for impairment, and a prolonged strain on the U.S. economy could result in impairment of the **$8.7 million** balance[129](index=129&type=chunk)[233](index=233&type=chunk) - The company has elected to use the extended transition period for new or revised accounting standards as permitted by the JOBS Act for emerging growth companies[227](index=227&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no significant changes in its disclosures regarding market risk since its most recent annual report for the year ended December 31, 2021 - There have been no significant changes in market risk disclosures since the Annual Report on Form 10-K for the year ended December 31, 2021[238](index=238&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2022, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[239](index=239&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[240](index=240&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal actions incidental to its business but believes that none of these, individually or in aggregate, would have a material adverse effect on its financial statements - Management is of the opinion that no existing legal proceedings would have a material adverse effect on the company's financial statements if determined adversely[241](index=241&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes were reported from the risks disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[242](index=242&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company discusses its stock repurchase plan, noting that a new plan authorizing the repurchase of up to **750,000 shares** was approved in October 2021, with no shares repurchased under this plan during the six months ended June 30, 2022 - During the six months ended June 30, 2022, no shares were repurchased under the company's stock repurchase plan[243](index=243&type=chunk) - As of the reporting period, **750,000 shares** remained available for repurchase under the plan adopted in October 2021[85](index=85&type=chunk) [Defaults Upon Senior Securities](index=52&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[243](index=243&type=chunk) [Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reported no mine safety disclosures - None[243](index=243&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None[243](index=243&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and XBRL data files - Exhibits filed include certifications from the Principal Executive Officer and Principal Financial Officer (31.1, 31.2, 32.1) and XBRL Instance Documents (101 series)[246](index=246&type=chunk)