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RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Prior Period Adjustment [Abstract]

Schedule of effect of the restatement on financial statements

The tables below show the effects of the restatement on the Company’s condensed consolidated balance sheets, condensed consolidated statements of income, condensed consolidated statements of comprehensive income, condensed consolidated statements of changes in shareholders’ equity, and condensed consolidated statement of cash flows as of and for the quarter ended September 30, 2022 (in thousands, except for per share data):

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​	​	September 30, 2022
Consolidated Balance Sheet	​	(As Previously Reported)		Adjustments		(As Restated)
ASSETS		​		​		​
Cash and due from banks	​	$	32,206	$	—	$	32,206
Federal funds sold	​		192,475		—		192,475
Cash and cash equivalents	​	​	224,681	​	—	​	224,681
Interest bearing deposits in banks	​	​	2,490	​	—	​	2,490
Investment securities available-for-sale	​	​	167,213	​	(14,403)	​	152,810
Equity securities	​	​	—	​	14,403	​	14,403
Federal Home Loan Bank ("FHLB") stock, at par	​	​	10,679	​	—	​	10,679
Federal Reserve Bank ("FRB") stock, at par	​	​	9,595	​	—	​	9,595
Loans held for sale	​	​	3,491	​	—	​	3,491
Loans, net of allowance for loan losses of $18,050 at September 30, 2022 and $17,700 December 31, 2021	​	​	1,976,916	​	—	​	1,976,916
Premises and equipment, net	​	​	13,697	​	—	​	13,697
Other real estate owned ("OREO")	​	​	21	​	—	​	21
Core deposit intangible, net	​	​	5,718	​	—	​	5,718
Cash surrender value of bank owned life insurance ("BOLI") policies, net	​	​	22,043	​	—	​	22,043
Right-of-use assets ("ROU"), net	​	​	15,875	​	—	​	15,875
Goodwill	​	​	38,838	​	—	​	38,838
Interest receivable and other assets	​	​	43,241	​	—	​	43,241
Total assets	​	$	2,534,498	$	—	$	2,534,498
LIABILITIES AND SHAREHOLDERS’ EQUITY	​		​		​		​
Noninterest and interest bearing deposits	​	$	2,115,451	$	—	$	2,115,451
Junior subordinated deferrable interest debentures, net	​		8,464		—		8,464
Subordinated debt, net	​	​	63,669	​	—	​	63,669
Salary continuation plan	​		4,724		—		4,724
Lease liabilities	​		16,411		—		16,411
Interest payable and other liabilities	​		11,376		—		11,376
Total liabilities	​		2,220,095		—		2,220,095
Commitments and contingencies (Note 19)	​
Shareholders' equity	​
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding at both September 30, 2022 and December 31, 2021	​		—		—		—
Common stock, no par value; 100,000,000 shares authorized; 13,075,447 and 10,680,386 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	​		208,483		—		208,483
Additional paid in capital	​		287		—		287
Accumulated other comprehensive loss, net of tax	​		(14,338)		2,829		(11,509)
Retained earnings	​		119,971		(2,829)		117,142
Total shareholders’ equity	​		314,403		—		314,403
Total liabilities and shareholders’ equity	​	$	2,534,498	$	—	$	2,534,498

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​	​	Three months ended September 30, 2022
Consolidated Statement of Income		(As Previously Reported)		​	Adjustments		​	(As Restated)
Interest income:	​	​	​	​	​	​	​	​	​
Loans, including fees	​	$	24,010	​	$	—	​	$	24,010
Investment securities	​		1,555	​		—	​		1,555
Fed funds sold and interest bearing balances in banks	​	​	1,286	​	​	​	​	​	1,286
FHLB dividends	​		160	​		—	​		160
FRB dividends	​		126	​		—	​		126
Total interest and dividend income	​		27,137	​		—	​		27,137
Interest expense:	​			​			​
Deposits	​		1,387	​		—	​		1,387
Subordinated debt	​	​	896	​	​	—	​	​	896
Other borrowings	​		129	​		—	​		129
Total interest expense	​		2,412	​		—	​		2,412
Net interest income	​		24,725	​		—	​		24,725
Provision for loan losses	​		1,194	​		—	​		1,194
Net interest income after provision for loan losses	​		23,531	​		—	​		23,531
Noninterest income:	​			​			​
Gain on sale of loans	​		1,278	​		—	​		1,278
Loss on equity securities	​	​	—	​	​	(362)	​	​	(362)
Service charges and other fees	​		817	​		—	​		817
Loan servicing and other loan fees	​		488	​		—	​		488
Income on investment in Small Business Investment Company (“SBIC”) fund	​		(63)	​		—	​		(63)
Bargain purchase gain	​	​	—	​	​	—	​	​	—
Other income and fees	​		224	​		—	​		224
Total noninterest income	​		2,744	​		(362)	​		2,382
Noninterest expense:	​			​			​
Salaries and employee benefits	​		10,164	​		—	​		10,164
Occupancy and equipment	​		2,043	​		—	​		2,043
Data processing	​		1,562	​		—	​		1,562
Other expense	​		2,327	​		—	​		2,327
Total noninterest expense	​		16,096	​		—	​		16,096
Income before provision for income taxes	​		10,179	​		(362)	​		9,817
Provision for income taxes	​		2,950	​		(103)	​		2,847
Net income	​	$	7,229	​	$	(259)	​	$	6,970
Earnings per common share:	​		​	​			​		​
Basic earnings per common share	​	$	0.54	​	$	(0.02)	​	$	0.52
Weighted average shares outstanding	​		13,307,555	​		13,307,555	​		13,307,555
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Diluted earnings per common share	​	$	0.54	​	$	(0.02)	​	$	0.52
Weighted average shares outstanding	​		13,307,555	​		13,307,555	​		13,307,555

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​	​	Nine months ended September 30, 2022
Consolidated Statement of Income		(As Previously Reported)		​	Adjustments		​	(As Restated)
Interest income:	​	​	​	​	​	​	​	​	​
Loans, including fees	​	$	69,921	​	$	—	​	$	69,921
Investment securities and interest bearing deposits in banks	​		4,483	​		—	​		4,483
Fed funds sold and interest bearing balances in banks	​	​	2,303	​	​	​	​	​	2,303
FHLB dividends	​		467	​		—	​		467
FRB dividends	​		387	​		—	​		387
Total interest and dividend income	​		77,561	​		—	​		77,561
Interest expense:	​			​			​
Deposits	​		4,310	​		—	​		4,310
Subordinated debt	​	​	2,687	​	​	—	​	​	2,687
Other borrowings	​		319	​		—	​		319
Total interest expense	​		7,316	​		—	​		7,316
Net interest income	​		70,245	​		—	​		70,245
Provision for loan losses	​		3,824	​		—	​		3,824
Net interest income after provision for loan losses	​		66,421	​		—	​		66,421
Noninterest income:	​			​			​
Gain on sale of loans	​		2,714	​		—	​		2,714
Loss on equity securities	​	​	—	​	​	(3,971)	​	​	(3,971)
Service charges and other fees	​		2,165	​		—	​		2,165
Loan servicing and other loan fees	​		1,670	​		—	​		1,670
Income on investment in Small Business Investment Company (“SBIC”) fund	​		155	​		—	​		155
Bargain purchase gain	​	​	1,665	​	​	—	​	​	1,665
Other income and fees	​		796	​		—	​		796
Total noninterest income	​		9,165	​		(3,971)	​		5,194
Noninterest expense:	​			​			​
Salaries and employee benefits	​		29,751	​		—	​		29,751
Occupancy and equipment	​		6,388	​		—	​		6,388
Data processing	​		5,502	​		—	​		5,502
Other expense	​		7,986	​		—	​		7,986
Total noninterest expense	​		49,627	​		—	​		49,627
Income before provision for income taxes	​		25,959	​		(3,971)	​		21,988
Provision for income taxes	​		7,024	​		(1,142)	​		5,882
Net income	​	$	18,935	​	$	(2,829)	​	$	16,106
Earnings per common share:	​			​			​
Basic earnings per common share	​	$	1.44	​	$	(0.22)	​	$	1.22
Weighted average shares outstanding	​		13,179,263	​		13,179,263	​		13,179,263
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Diluted earnings per common share	​	$	1.44	​	$	(0.22)	​	$	1.22
Weighted average shares outstanding	​		13,179,263	​		13,179,263	​		13,179,263

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​	​	Three months ended September 30, 2022
Consolidated Statement of Comprehensive Income	​	(As Previously Reported)		​	Adjustments		​	(As Restated)
Net income	​	$	7,229	​	$	(259)	​	$	6,970
Other comprehensive loss:	​		​	​		​	​		​
Change in unrealized loss on available-for-sale securities	​		(7,198)	​		363	​		(6,835)
Deferred tax benefit	​		2,071	​		(104)	​		1,967
Other comprehensive loss, net of tax	​		(5,127)	​		259	​		(4,868)
Total comprehensive income	​	$	2,102	​	$	—	​	$	2,102

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​	​	Nine months ended September 30, 2022
Consolidated Statement of Comprehensive Income	​	(As Previously Reported)		​	Adjustments		​	(As Restated)
Net income	​	$	18,935	​	$	(2,829)	​	$	16,106
Other comprehensive loss:	​		​	​		​	​		​
Change in unrealized loss on available-for-sale securities	​		(23,172)	​		3,971	​		(19,201)
Deferred tax benefit	​		6,668	​		(1,142)	​		5,526
Other comprehensive loss, net of tax	​		(16,504)	​		2,829	​		(13,675)
Total comprehensive income	​	$	2,431	​	$	—	​	$	2,431

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​	​	Nine months ended September 30, 2022
Consolidated Statement of Cash Flow Changes		(As Previously Reported)		​	Adjustments		​	(As Restated)
Cash flows from operating activities:		​		​	​	​	​	​	​
Net income	​	$	18,935	​	​	(2,829)	​	​	16,106
Adjustments to reconcile net income to net cash provided by operating activities:	​			​	​		​	​
Decrease in deferred tax assets	​		(7)	​	​	(1,142)	​	​	(1,149)
Loss on equity securities	​	​	—	​	​	3,971	​	​	3,971
Net cash provided by operating activities	​		23,756	​	​	—	​	​	23,756
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Non-cash investing and financing activities:	​			​			​
Change in unrealized loss on available-for-sale securities, net of tax	​	$	(16,504)	​	$	2,829	​	$	(13,675)

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- References

No definition available.

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- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
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-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

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