Investar Holding Corporation
11/14/2025 | Press release | Distributed by Public on 11/14/2025 16:26
Unaudited Consolidated Financial Statements of Wichita Falls Bancshares, Inc. and Subsidiaries (Form 8-K)
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Unaudited Consolidated Financial Statements of Wichita Falls Bancshares, Inc. and Subsidiaries |
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Consolidated Balance Sheets at September 30, 2025 and December 31, 2024 |
1 |
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Consolidated Statements of Income for the Nine Months ended September 30, 2025 and 2024 |
2 |
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Consolidated Statements of Comprehensive Income for the Nine Months ended September 30, 2025 and 2024 |
3 |
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Consolidated Statements of Change in Stockholders' Equity for the Nine Months ended September 30, 2025 and 2024 |
4 |
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Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2025 and 2024 |
5 |
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Notes to Consolidated Financial Statements |
7 |
Wichita Falls Bancshares, Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, 2025 (Unaudited) and December 31, 2024
(in thousands, except per share data)
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September 30, 2025 |
December 31, 2024 |
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Assets |
||||||||
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Cash and cash equivalents |
||||||||
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Cash and due from banks |
$ | 9,113 | $ | 25,191 | ||||
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Interest-bearing deposits |
119,794 | 138,892 | ||||||
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Total cash and equivalents |
128,907 | 164,083 | ||||||
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Debt securities available for sale, at fair value (amortized cost $54,806 and $59,429, net of allowance for credit losses of $0 and $0) |
52,024 | 55,157 | ||||||
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Debt securities held to maturity, net of allowance for credit losses of $0 and $0, (fair value 9/30/2025 - $365, 12/31/2024 - $501) |
364 | 501 | ||||||
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Restricted stock, at cost |
4,676 | 12,686 | ||||||
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Investment in unconsolidated subsidiary |
278 | 279 | ||||||
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Loans held-for-sale |
433 | 1,999 | ||||||
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Loans, net of allowance for credit losses of $10,640 and $10,815 as of September 30, 2025 and December 31, 2024, respectively |
1,082,915 | 1,260,776 | ||||||
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Premises and equipment, net |
13,903 | 14,337 | ||||||
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Accrued interest receivable |
5,746 | 6,634 | ||||||
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Bank-owned life insurance |
13,636 | 13,606 | ||||||
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Goodwill |
4,379 | 4,379 | ||||||
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Other intangible assets, net |
813 | 948 | ||||||
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Other assets |
6,573 | 7,266 | ||||||
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Total assets |
$ | 1,314,647 | $ | 1,542,651 | ||||
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Liabilities |
||||||||
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Deposits |
$ | 1,110,928 | $ | 1,154,868 | ||||
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Federal funds purchased and repurchase agreements |
1,784 | 2,302 | ||||||
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Federal Home Loan Bank advances |
30,096 | 205,189 | ||||||
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Other borrowings |
37,196 | 37,336 | ||||||
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Subordinated debt |
20,924 | 33,128 | ||||||
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Allowance for credit losses on off-balance sheet credit exposures |
1,746 | 1,746 | ||||||
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Accrued interest payable |
2,105 | 2,177 | ||||||
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Other liabilities |
7,660 | 8,671 | ||||||
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Total liabilities |
1,212,439 | 1,445,417 | ||||||
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Stockholders' Equity |
||||||||
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Common stock, par value $1 a share |
||||||||
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Authorized - 1,000,000 shares; 620,912 shares issued and outstanding at September 30, 2025 and December 31, 2024 |
621 | 621 | ||||||
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Capital surplus |
33,277 | 33,277 | ||||||
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Retained earnings |
70,507 | 66,896 | ||||||
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Accumulated other comprehensive loss |
(2,197 | ) | (3,560 | ) | ||||
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Total stockholders' equity |
102,208 | 97,234 | ||||||
| $ | 1,314,647 | $ | 1,542,651 | |||||
See Notes to Consolidated Financial Statements
1
Wichita Falls Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income
Nine Months Ended September 30, 2025 and 2024 (Unaudited)
(in thousands, except per share data)
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Nine Months Ended September 30, |
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2025 |
2024 |
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Interest Income |
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Interest and fees on loans |
$ | 54,685 | $ | 56,681 | ||||
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Interest on debt securities |
||||||||
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Taxable |
1,046 | 940 | ||||||
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Tax-exempt |
797 | 866 | ||||||
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Interest on federal funds sold and interest-bearing deposits in banks |
1,459 | 1,360 | ||||||
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Total interest income |
57,987 | 59,847 | ||||||
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Interest Expense |
||||||||
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Deposits |
26,357 | 26,883 | ||||||
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Federal funds purchased and repurchase agreements |
20 | 26 | ||||||
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Borrowed funds |
6,720 | 8,959 | ||||||
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Subordinated debt |
541 | 617 | ||||||
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Total interest expense |
33,638 | 36,485 | ||||||
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Net interest income |
24,349 | 23,362 | ||||||
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Provision for credit losses |
164 | 1,560 | ||||||
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Net interest income after provision for credit losses |
24,185 | 21,802 | ||||||
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Non-Interest Income |
||||||||
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Service charges on deposit accounts |
304 | 338 | ||||||
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Mortgage loan sales/originations/processing |
467 | 387 | ||||||
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Loss on sale of securities |
- | (440 | ) | |||||
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Earnings on bank-owned life insurance |
331 | 288 | ||||||
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ATM/debit card interchange fees |
559 | 603 | ||||||
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Other |
645 | 727 | ||||||
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Total non-interest income |
2,306 | 1,903 | ||||||
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Non-Interest Expense |
||||||||
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Salaries and employee benefits |
10,710 | 12,289 | ||||||
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Occupancy |
1,773 | 2,057 | ||||||
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Data processing |
864 | 806 | ||||||
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Director fees |
402 | 410 | ||||||
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Legal and professional fees |
1,601 | 949 | ||||||
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FDIC assessment |
1,088 | 1,304 | ||||||
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Mortgage expense |
145 | 101 | ||||||
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Telephone |
386 | 374 | ||||||
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Loss on sale of assets |
1,913 | - | ||||||
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Loss on sale of foreclosed assets |
99 | - | ||||||
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Amortization of intangibles |
135 | 846 | ||||||
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Other |
2,958 | 3,255 | ||||||
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Total non-interest expense |
22,074 | 22,391 | ||||||
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Income before income taxes |
4,417 | 1,314 | ||||||
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Income tax expense (benefit) |
806 | (2,069 | ) | |||||
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Net Income |
$ | 3,611 | $ | 3,383 | ||||
See Notes to Consolidated Financial Statements
2
Wichita Falls Bancshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
Nine Months Ended September 30, 2025 and 2024 (Unaudited)
(in thousands, except per share data)
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Nine Months Ended September 30, |
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2025 |
2024 |
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Net Income |
$ | 3,611 | $ | 3,383 | ||||
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Other Comprehensive Income |
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Unrealized holding gains arising during period on debt securities available for sale |
1,489 | 686 | ||||||
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Reclassification adjustment for losses included in net income |
- | 440 | ||||||
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Tax effect |
(126 | ) | 271 | |||||
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Net of tax |
1,363 | 1,397 | ||||||
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Other comprehensive gain, net |
1,363 | 1,397 | ||||||
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Comprehensive Income |
$ | 4,974 | $ | 4,780 | ||||
See Notes to Consolidated Financial Statements
3
Wichita Falls Bancshares, Inc. and Subsidiaries
Consolidated Statements of Changes in Stockholders' Equity
Nine Months Ended September 30, 2025 and 2024 (Unaudited)
(in thousands, except per share data)
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Accumulated |
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Other |
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Common |
Capital |
Retained |
Comprehensive |
Treasury |
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Stock |
Surplus |
Earnings |
(Loss) |
Stock |
Total |
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Balance at December 31, 2023 |
$ | 592 | $ | 27,994 | $ | 61,098 | $ | (3,388 | ) | $ | (1,305 | ) | $ | 84,991 | ||||||||||
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Net income |
- | - | 3,383 | - | - | 3,383 | ||||||||||||||||||
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Other comprehensive gain |
- | - | - | 1,397 | - | 1,397 | ||||||||||||||||||
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Treasury stock sold |
- | 50 | - | - | 52 | 102 | ||||||||||||||||||
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Cash dividends |
- | - | (81 | ) | - | - | (81 | ) | ||||||||||||||||
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Balance at September 30, 2024 |
$ | 592 | $ | 28,044 | $ | 64,400 | $ | (1,991 | ) | $ | (1,253 | ) | $ | 89,792 | ||||||||||
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Balance at December 31, 2024 |
$ | 621 | $ | 33,277 | $ | 66,896 | $ | (3,560 | ) | $ | - | $ | 97,234 | |||||||||||
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Net income |
- | - | 3,611 | - | - | 3,611 | ||||||||||||||||||
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Other comprehensive gain |
- | - | - | 1,363 | - | 1,363 | ||||||||||||||||||
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Balance at September 30, 2025 |
$ | 621 | $ | 33,277 | $ | 70,507 | $ | (2,197 | ) | $ | - | $ | 102,208 | |||||||||||
See Notes to Consolidated Financial Statements
4
Wichita Falls Bancshares, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2025 and 2024 (Unaudited)
(in thousands)
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Nine Months Ended September 30, |
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2025 |
2024 |
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Operating Activities |
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Net income |
$ | 3,611 | $ | 3,383 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
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Provision for credit losses |
164 | 1,560 | ||||||
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Depreciation |
542 | 558 | ||||||
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Amortization of core deposit intangibles |
135 | 134 | ||||||
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Net loss on sales of debt securities |
- | 440 | ||||||
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Net loss on sales of foreclosed assets |
99 | - | ||||||
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Net loss on sales of premises and equipment |
25 | - | ||||||
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Net loss on sales of loans |
1,887 | - | ||||||
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Deferred tax benefit |
(122 | ) | (122 | ) | ||||
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Amortization of discounts and premiums on debt securities |
(1,229 | ) | (212 | ) | ||||
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Earnings on bank-owned life insurance policies |
(412 | ) | (288 | ) | ||||
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Changes in assets and liabilities |
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Net increase (decrease) in loans held-for-sale |
1,566 | (1,324 | ) | |||||
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Accrued interest receivable |
888 | (456 | ) | |||||
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Other assets |
(17 | ) | (623 | ) | ||||
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Accrued interest payable |
(72 | ) | 111 | |||||
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Other liabilities |
(584 | ) | (1,171 | ) | ||||
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Total adjustments |
2,870 | (1,393 | ) | |||||
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Net Cash Provided by Operating Activities |
6,481 | 1,990 | ||||||
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Investing Activities |
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Proceeds from maturities, paydowns, and sales of debt securities available for sale |
5,466 | 27,608 | ||||||
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Proceeds from maturities and paydowns of debt securities held to maturity |
137 | 130 | ||||||
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Purchases of debt securities available for sale |
(1,104 | ) | (27,835 | ) | ||||
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Proceeds from redemption of restricted stock |
11,560 | 3,003 | ||||||
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Purchases of restricted stock |
(3,550 | ) | (6,099 | ) | ||||
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Increase (decrease) in loans, net |
177,861 | (87,427 | ) | |||||
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Purchases of premises and equipment |
(134 | ) | (157 | ) | ||||
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Net Cash Provided by (Used in) Investing Activities |
190,236 | (90,777 | ) | |||||
See Notes to Consolidated Financial Statements
5
Wichita Falls Bancshares, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2025 and 2024 (Unaudited)
(in thousands)
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Nine Months Ended September 30, |
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2025 |
2024 |
|||||||
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Financing Activities |
||||||||
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Increase (decrease) in deposits |
(43,940 | ) | 36,550 | |||||
|
Proceeds from FHLB advances |
3,020,000 | 4,560,500 | ||||||
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Repayments of FHLB advances |
(3,195,093 | ) | (4,506,590 | ) | ||||
|
Proceeds from subordinated debt |
- | 8,700 | ||||||
|
Repayments of subordinated debt |
(12,203 | ) | - | |||||
|
Repayments of other borrowings |
(139 | ) | (177 | ) | ||||
|
Net change in fed funds purchased and repurchase agreements |
(518 | ) | (633 | ) | ||||
|
Dividends paid |
- | (81 | ) | |||||
|
Net Cash (Used in) Provided by Financing Activities |
(231,893 | ) | 98,269 | |||||
|
Net Change in Cash and Cash Equivalents |
(35,176 | ) | 9,482 | |||||
|
Cash and Cash Equivalents, Beginning of Year |
164,083 | 157,840 | ||||||
|
Cash and Cash Equivalents, End of Year |
$ | 128,907 | $ | 167,322 | ||||
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Supplemental Schedule of Operating and Investing Activities |
||||||||
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Interest paid |
$ | 24,880 | $ | 36,374 | ||||
|
Income taxes paid |
$ | 2,420 | $ | 666 | ||||
See Notes to Consolidated Financial Statements
6
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
Note 1 - Basis for Presentation and Summary of Significant Accounting Policies
The accompanying unaudited interim consolidated financial statements of Wichita Falls Bancshares, Inc. (Bancshares) and its wholly-owned subsidiaries, First National Bank (Bank) and 114 Dove LLC (which are referred to collectively herein as the Company), have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited interim consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto for the years ended December 31, 2024. In the opinion of management, all adjustments necessary for a fair presentation have been made and consist only of normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year.
Allowance for Credit Losses - Held to Maturity Securities
Management measures expected credit losses on held to maturity debt securities on a collective basis by major security type. Accrued interest receivable on held to maturity debt securities totaled approximately $0 at September 30, 2025 and December 31, 2024, and is excluded from the estimate of credit losses.
Allowance for Credit Losses - Available for Sale Securities
Accrued interest receivable on available for sale debt securities totaled approximately $313,000 and $529,000 at September 30, 2025 and December 31, 2024, respectively and is excluded from the estimate of credit losses.
Loans
Accrued interest receivable totaled approximately $5,433,000 and $6,104,000 at September 30, 2025 and December 31, 2024, respectively, and is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.
Subsequent Events
The Company has evaluated subsequent events through November 14, 2025, the date which the consolidated financial statements were available to be issued.
7
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
Note 2 - Debt Securities
The following tables summarize the Company's available for sale and held to maturity debt securities at September 30, 2025 and December 31, 2024 (in thousands):
|
September 30, 2025 |
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Gross |
Gross |
Allowance |
||||||||||||||||||
|
Amortized |
Unrealized |
Unrealized |
for |
Fair |
||||||||||||||||
|
Cost |
Gains |
Losses |
Credit Losses |
Value |
||||||||||||||||
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Available for sale |
||||||||||||||||||||
|
Obligations of states and municipal subdivisions |
$ | 27,546 | $ | - | $ | (2,809 | ) | $ | - | $ | 24,737 | |||||||||
|
Mortgage-backed securities |
14,387 | 208 | (280 | ) | - | 14,315 | ||||||||||||||
|
Collateralized mortgage obligations |
11,873 | 191 | (89 | ) | - | 11,975 | ||||||||||||||
|
Corporate bonds |
1,000 | - | (3 | ) | - | 997 | ||||||||||||||
|
Total available for sale |
$ | 54,806 | $ | 399 | $ | (3,181 | ) | $ | - | $ | 52,024 | |||||||||
|
Gross |
Gross |
Allowance |
||||||||||||||||||
|
Amortized |
Unrecognized |
Unrecognized |
Fair |
for |
||||||||||||||||
|
Cost |
Gains |
Losses |
Value |
Credit Losses |
||||||||||||||||
|
Held to maturity |
||||||||||||||||||||
|
Obligations of states and municipal subdivisions |
$ | 364 | $ | 1 | $ | - | $ | 365 | $ | - | ||||||||||
|
Total held to maturity |
$ | 364 | $ | 1 | $ | - | $ | 365 | $ | - | ||||||||||
|
December 31, 2024 |
||||||||||||||||||||
|
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Allowance for Credit Losses |
Fair Value |
||||||||||||||||
|
Available for sale |
||||||||||||||||||||
|
Obligations of states and municipal subdivisions |
$ | 28,659 | $ | - | $ | (3,278 | ) | $ | - | $ | 25,381 | |||||||||
|
Mortgage-backed securities |
16,367 | - | (689 | ) | - | 15,678 | ||||||||||||||
|
Collateralized mortgage obligations |
13,403 | 16 | (293 | ) | - | 13,126 | ||||||||||||||
|
Corporate bonds |
1,000 | - | (28 | ) | - | 972 | ||||||||||||||
|
Total available for sale |
$ | 59,429 | $ | 16 | $ | (4,288 | ) | $ | - | $ | 55,157 | |||||||||
|
Amortized Cost |
Gross Unrecognized Gains |
Gross Unrecognized Losses |
Fair Value |
Allowance for Credit Losses |
||||||||||||||||
|
Held to maturity |
||||||||||||||||||||
|
Obligations of states and municipal subdivisions |
$ | 501 | $ | - | $ | - | $ | 501 | $ | - | ||||||||||
|
Total held to maturity |
$ | 501 | $ | - | $ | - | $ | 501 | $ | - | ||||||||||
8
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
The amortized cost and fair value of debt securities at September 30, 2025, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|
Amortized |
Fair |
|||||||
|
Cost |
Value |
|||||||
|
Available-for-sale |
||||||||
|
One year or less |
$ | 265 | $ | 263 | ||||
|
After one year through five years |
18,907 | 18,837 | ||||||
|
After five years through ten years |
16,764 | 16,504 | ||||||
|
After ten years |
18,870 | 16,420 | ||||||
|
Total |
$ | 54,806 | $ | 52,024 | ||||
|
Held-to-maturity |
||||||||
|
One year or less |
$ | 69 | $ | 69 | ||||
|
After five years through ten years |
295 | 296 | ||||||
|
Total |
$ | 364 | $ | 365 | ||||
There were no sales of available for sale debt securities during the nine months ended September 30, 2025. There were sales of available for sale debt securities of approximately $20,858,000 during the nine months ended September 30, 2024. There were losses of approximately $440,000 on those sales.
Debt securities available for sale with a fair value of approximately $31,471,000 and $21,017,000 at September 30, 2025 and December 31, 2024, respectively, were pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law.
Unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 are summarized as follows (in thousands):
|
Continuous Unrealized |
Continuous Unrealized |
|||||||||||||||||||||||
|
Losses Existing for Less |
Losses Existing for 12 |
|||||||||||||||||||||||
|
Than 12 Months |
Months or Greater |
Total |
||||||||||||||||||||||
|
Gross |
Gross |
Gross |
||||||||||||||||||||||
|
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
|
Value |
Losses |
Value |
Losses |
Value |
Losses |
|||||||||||||||||||
|
September 30, 2025 |
||||||||||||||||||||||||
|
Obligations of states and municipal subdivisions |
$ | - | $ | - | $ | 23,731 | $ | (2,809 | ) | $ | 23,731 | $ | (2,809 | ) | ||||||||||
|
Mortgage-backed securities |
1,326 | (15 | ) | 3,947 | (265 | ) | 5,273 | (280 | ) | |||||||||||||||
|
Collateralized mortgage obligations |
- | - | 1,091 | (89 | ) | 1,091 | (89 | ) | ||||||||||||||||
|
Corporate bonds |
- | - | 997 | (3 | ) | 997 | (3 | ) | ||||||||||||||||
|
Total available for sale |
$ | 1,326 | $ | (15 | ) | $ | 29,766 | $ | (3,166 | ) | $ | 31,092 | $ | (3,181 | ) | |||||||||
There were no unrealized losses on held to maturity securities for the nine months ended September 30, 2025 or 2024.
There was no allowance for credit losses established for held to maturity or available for sale securities at September 30, 2025 or December 31, 2024.
9
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
Note 3 - Loans and Allowance for Credit Losses
A summary of loans by major category at September 30, 2025 and December 31, 2024 are as follows (in thousands):
|
September 30, |
December 31, |
|||||||
|
2025 |
2024 |
|||||||
|
Commercial |
$ | 80,177 | $ | 86,573 | ||||
|
Equipment finance leases |
78 | 96 | ||||||
|
Commercial real estate |
794,977 | 892,331 | ||||||
|
Residential real estate |
212,348 | 285,242 | ||||||
|
Consumer |
5,975 | 7,349 | ||||||
| 1,093,555 | 1,271,591 | |||||||
|
Less allowance for credit losses |
(10,640 | ) | (10,815 | ) | ||||
|
Loans, net |
$ | 1,082,915 | $ | 1,260,776 | ||||
The following table presents the activity in the allowance for credit losses by portfolio segment for the nine months ended September 30, 2025 and year ended December 31, 2024 (in thousands):
|
September 30, 2025 |
||||||||||||||||||||||||
|
Equipment |
Commercial |
Residential |
||||||||||||||||||||||
|
Commercial |
Finance Leases |
Real Estate |
Real Estate |
Consumer |
Total |
|||||||||||||||||||
|
Allowance for Credit Losses |
||||||||||||||||||||||||
|
Balance, beginning of period |
$ | (113 | ) | $ | - | $ | 2,411 | $ | 8,517 | $ | - | $ | 10,815 | |||||||||||
|
Charge-offs |
(218 | ) | - | - | (179 | ) | (19 | ) | (416 | ) | ||||||||||||||
|
Recoveries |
53 | - | 1 | - | 24 | 78 | ||||||||||||||||||
|
Provisions for credit losses |
1,746 | - | (1,661 | ) | (80 | ) | 158 | 163 | ||||||||||||||||
|
Balance, end of period |
$ | 1,468 | $ | - | $ | 751 | $ | 8,258 | $ | 163 | $ | 10,640 | ||||||||||||
|
December 31, 2024 |
||||||||||||||||||||||||
|
Equipment |
Commercial |
Residential |
||||||||||||||||||||||
|
Commercial |
Finance Leases |
Real Estate | Real Estate |
Consumer |
Total |
|||||||||||||||||||
|
Allowance for Credit Losses |
||||||||||||||||||||||||
|
Balance, beginning of period |
$ | 878 | $ | - | $ | 1,246 | $ | 8,141 | $ | 73 | $ | 10,338 | ||||||||||||
|
Reallocation of ACL for off-balance sheet credit exposures |
- | - | - | 100 | - | 100 | ||||||||||||||||||
|
Charge-offs |
(1,189 | ) | - | - | (96 | ) | (89 | ) | (1,374 | ) | ||||||||||||||
|
Recoveries |
85 | - | - | - | 6 | 91 | ||||||||||||||||||
|
Provisions for credit losses |
113 | - | 1,165 | 372 | 10 | 1,660 | ||||||||||||||||||
|
Balance, end of period |
$ | (113 | ) | $ | - | $ | 2,411 | $ | 8,517 | $ | - | $ | 10,815 | |||||||||||
10
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
In addition to the allowance for credit losses on loans, the Company has established an allowance for credit losses on off-balance sheet exposures of approximately $1,746,000 at September 30, 2025 and at December 31, 2024. The following table presents the activity in the allowance for credit losses on off-balance sheet exposures for the nine months ended September 30, 2025 and 2024.
|
Nine Months ended |
Nine Months ended |
|||||||
|
September 30, 2025 |
September 30, 2024 |
|||||||
|
Balance, beginning of period |
$ | 1,746 | $ | 1,846 | ||||
|
Balance, end of year |
$ | 1,746 | $ | 1,846 | ||||
Credit Quality Indicators
The following tables present the Company's loan portfolio by credit quality classification and original year (in thousands) at September 30, 2025 and December 31, 2024:
|
Term Loans Amortized Cost Basis by Origination Year |
||||||||||||||||||||||||||||||||
|
Revolving |
||||||||||||||||||||||||||||||||
|
Loans Amortized |
||||||||||||||||||||||||||||||||
|
2025 |
2024 |
2023 |
2022 |
2021 |
Prior |
Cost Basis |
Total |
|||||||||||||||||||||||||
|
As of September 30, 2025 |
||||||||||||||||||||||||||||||||
|
Commercial: |
||||||||||||||||||||||||||||||||
|
Pass |
$ | 15,002 | $ | 9,746 | $ | 11,733 | $ | 26,902 | $ | 5,280 | $ | 8,170 | $ | - | $ | 76,833 | ||||||||||||||||
|
Special Mention |
80 | - | 674 | 1,304 | - | 788 | - | 2,846 | ||||||||||||||||||||||||
|
Substandard |
- | - | 372 | 101 | 25 | - | - | 498 | ||||||||||||||||||||||||
|
Doubtful |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Total commercial loans |
$ | 15,082 | $ | 9,746 | $ | 12,779 | $ | 28,307 | $ | 5,305 | $ | 8,958 | $ | - | $ | 80,177 | ||||||||||||||||
|
Current period gross charge-offs |
$ | - | $ | - | $ | 74 | $ | 55 | $ | 72 | $ | 17 | $ | - | $ | 218 | ||||||||||||||||
|
Equipment finance leases: |
||||||||||||||||||||||||||||||||
|
Pass |
$ | 78 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 78 | ||||||||||||||||
|
Special Mention |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Substandard |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Doubtful |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Total equipment finance leases |
$ | 78 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 78 | ||||||||||||||||
|
Current period gross charge-offs |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
|
Commercial real estate: |
||||||||||||||||||||||||||||||||
|
Pass |
$ | 6,638 | $ | 20,541 | $ | 103,786 | $ | 324,955 | $ | 222,887 | $ | 110,606 | $ | - | $ | 789,413 | ||||||||||||||||
|
Special Mention |
- | - | - | 24 | 44 | 1,478 | - | 1,546 | ||||||||||||||||||||||||
|
Substandard |
798 | - | - | 3,220 | - | - | - | 4,018 | ||||||||||||||||||||||||
|
Doubtful |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Total commercial real estate loans |
$ | 7,436 | $ | 20,541 | $ | 103,786 | $ | 328,199 | $ | 222,931 | $ | 112,084 | $ | - | $ | 794,977 | ||||||||||||||||
|
Current period gross charge-offs |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
|
Residential real estate: |
||||||||||||||||||||||||||||||||
|
Pass |
$ | 21,688 | $ | 99,924 | $ | 45,017 | $ | 38,034 | $ | 3,470 | $ | - | $ | - | $ | 208,133 | ||||||||||||||||
|
Special Mention |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Substandard |
- | - | 3,513 | 702 | - | - | - | 4,215 | ||||||||||||||||||||||||
|
Doubtful |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Total residential real estate loans |
$ | 21,688 | $ | 99,924 | $ | 48,530 | $ | 38,736 | $ | 3,470 | $ | - | $ | - | $ | 212,348 | ||||||||||||||||
|
Current period gross charge-offs |
$ | - | $ | - | $ | - | $ | 179 | $ | - | $ | - | $ | - | $ | 179 | ||||||||||||||||
|
Consumer: |
||||||||||||||||||||||||||||||||
|
Pass |
$ | 1,793 | $ | 2,112 | $ | 961 | $ | 549 | $ | 180 | $ | 277 | $ | - | $ | 5,872 | ||||||||||||||||
|
Special Mention |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Substandard |
- | 62 | 35 | - | 2 | 4 | - | 103 | ||||||||||||||||||||||||
|
Doubtful |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Total consumer loans |
$ | 1,793 | $ | 2,174 | $ | 996 | $ | 549 | $ | 182 | $ | 281 | $ | - | $ | 5,975 | ||||||||||||||||
|
Current period gross charge-offs |
$ | - | $ | 9 | $ | - | $ | 6 | $ | - | $ | 4 | $ | - | $ | 19 | ||||||||||||||||
11
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
|
Term Loans Amortized Cost Basis by Origination Year |
||||||||||||||||||||||||||||
|
Revolving |
||||||||||||||||||||||||||||
|
Loans Amortized |
||||||||||||||||||||||||||||
|
2024 |
2023 |
2022 |
2021 |
Prior |
Cost Basis |
Total |
||||||||||||||||||||||
|
At December 31, 2024 |
||||||||||||||||||||||||||||
|
Commercial: |
||||||||||||||||||||||||||||
|
Pass |
$ | 24,692 | $ | 16,642 | $ | 20,842 | $ | 5,614 | $ | 4,255 | $ | 10,689 | $ | 82,734 | ||||||||||||||
|
Special Mention |
471 | 758 | 1,376 | - | - | 100 | 2,705 | |||||||||||||||||||||
|
Substandard |
49 | 127 | 203 | 32 | - | - | 411 | |||||||||||||||||||||
|
Doubtful |
- | 723 | - | - | - | - | 723 | |||||||||||||||||||||
|
Total commercial loans |
$ | 25,212 | $ | 18,250 | $ | 22,421 | $ | 5,646 | $ | 4,255 | $ | 10,789 | $ | 86,573 | ||||||||||||||
|
Current period gross charge-offs |
$ | - | $ | 626 | $ | 366 | $ | 128 | $ | 68 | $ | 1 | $ | 1,189 | ||||||||||||||
|
Equipment finance leases: |
||||||||||||||||||||||||||||
|
Pass |
$ | 87 | $ | - | $ | - | $ | 9 | $ | - | $ | - | $ | 96 | ||||||||||||||
|
Special Mention |
- | - | - | - | - | - | - | |||||||||||||||||||||
|
Substandard |
- | - | - | - | - | - | - | |||||||||||||||||||||
|
Doubtful |
- | - | - | - | - | - | - | |||||||||||||||||||||
|
Total equipment finance leases |
$ | 87 | $ | - | $ | - | $ | 9 | $ | - | $ | - | $ | 96 | ||||||||||||||
|
Current period gross charge-offs |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
|
Commercial real estate: |
||||||||||||||||||||||||||||
|
Pass |
$ | 41,234 | $ | 184,982 | $ | 424,222 | $ | 93,132 | $ | 121,241 | $ | 5,166 | $ | 869,977 | ||||||||||||||
|
Special Mention |
- | - | 718 | 80 | 15,718 | - | 16,516 | |||||||||||||||||||||
|
Substandard |
- | 835 | 4,490 | - | 56 | 457 | 5,838 | |||||||||||||||||||||
|
Doubtful |
- | - | - | - | - | - | - | |||||||||||||||||||||
|
Total commercial real estate loans |
$ | 41,234 | $ | 185,817 | $ | 429,430 | $ | 93,212 | $ | 137,015 | $ | 5,623 | $ | 892,331 | ||||||||||||||
|
Current period gross charge-offs |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
|
Residential real estate: |
||||||||||||||||||||||||||||
|
Pass |
$ | 87,359 | $ | 108,407 | $ | 78,824 | $ | 9,531 | $ | - | $ | - | $ | 284,121 | ||||||||||||||
|
Special Mention |
- | - | - | 357 | - | - | 357 | |||||||||||||||||||||
|
Substandard |
- | - | 764 | - | - | - | 764 | |||||||||||||||||||||
|
Doubtful |
- | - | - | - | - | - | - | |||||||||||||||||||||
|
Total residential real estate loans |
$ | 87,359 | $ | 108,407 | $ | 79,588 | $ | 9,888 | $ | - | $ | - | $ | 285,242 | ||||||||||||||
|
Current period gross charge-offs |
$ | - | $ | - | $ | 55 | $ | 41 | $ | - | $ | - | $ | 96 | ||||||||||||||
|
Consumer: |
||||||||||||||||||||||||||||
|
Pass |
$ | 4,023 | $ | 1,497 | $ | 1,043 | $ | 287 | $ | 453 | $ | - | $ | 7,303 | ||||||||||||||
|
Special Mention |
- | - | - | - | - | - | - | |||||||||||||||||||||
|
Substandard |
- | 19 | 27 | - | - | - | 46 | |||||||||||||||||||||
|
Doubtful |
- | - | - | - | - | - | - | |||||||||||||||||||||
|
Total consumer loans |
$ | 4,023 | $ | 1,516 | $ | 1,070 | $ | 287 | $ | 453 | $ | - | $ | 7,349 | ||||||||||||||
|
Current period gross charge-offs |
$ | 7 | $ | 33 | $ | 5 | $ | 43 | $ | 1 | $ | - | $ | 89 | ||||||||||||||
12
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing at September 30, 2025 and December 31, 2024 (in thousands):
|
September 30, 2025 |
||||||||||||
|
Nonaccrual |
Loans Past |
|||||||||||
|
With No |
Due Over |
|||||||||||
|
Allowance |
89 Days |
|||||||||||
|
for Credit Loss |
Nonaccrual |
Still Accruing |
||||||||||
|
Commercial |
$ | 86 | $ | 160 | $ | 42 | ||||||
|
Commercial real estate |
338 | 338 | - | |||||||||
|
Residential real estate |
798 | 5,631 | 46 | |||||||||
|
Consumer |
- | 104 | - | |||||||||
|
Total |
$ | 1,222 | $ | 6,233 | $ | 88 | ||||||
|
December 31, 2024 |
||||||||||||
|
Nonaccrual With No Allowance for Credit Loss |
Nonaccrual |
Loans Past Due Over 89 Days Still Accruing |
||||||||||
|
Commercial |
$ | 103 | $ | 424 | $ | 87 | ||||||
|
Equipment finance leases |
- | 6 | - | |||||||||
|
Commercial real estate |
1 | 1 | - | |||||||||
|
Residential real estate |
2,410 | 6,630 | 837 | |||||||||
|
Consumer |
39 | 46 | 4 | |||||||||
|
Total |
$ | 2,553 | $ | 7,107 | $ | 928 | ||||||
The Company recognized approximately $12,000 and $158,000 of interest income on nonaccrual loans during the nine months ended September 30, 2025 and December 31, 2024, respectively.
The following table presents the amortized cost basis of collateral-dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit loss allocated to these loans at September 30, 2025 and December 31, 2024:
|
September 30, 2025 |
||||||||||||||||||||
|
Collateral Type |
||||||||||||||||||||
|
Real Estate |
Equipment |
Other |
Total |
ACL |
||||||||||||||||
|
Commercial |
$ | - | $ | 160 | $ | - | $ | 160 | $ | 35 | ||||||||||
|
Equipment finance leases |
- | - | - | - | - | |||||||||||||||
|
Commercial real estate |
338 | - | - | 338 | - | |||||||||||||||
|
Residential real estate |
5,632 | - | - | 5,632 | 639 | |||||||||||||||
|
Consumer |
- | - | 103 | 103 | 20 | |||||||||||||||
|
Total |
$ | 5,970 | $ | 160 | $ | 103 | $ | 6,233 | $ | 694 | ||||||||||
|
December 31, 2024 |
||||||||||||||||||||
|
Collateral Type |
||||||||||||||||||||
|
Real Estate |
Equipment |
Other |
Total |
ACL |
||||||||||||||||
|
Commercial |
$ | - | $ | 45 | $ | 379 | $ | 424 | $ | 157 | ||||||||||
|
Equipment finance leases |
- | 6 | - | 6 | - | |||||||||||||||
|
Commercial real estate |
1 | - | - | 1 | - | |||||||||||||||
|
Residential real estate |
6,630 | - | - | 6,630 | 455 | |||||||||||||||
|
Consumer |
- | - | 46 | 46 | 7 | |||||||||||||||
|
Total |
$ | 6,631 | $ | 51 | $ | 425 | $ | 7,107 | $ | 619 | ||||||||||
13
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
The following table presents the aging of the amortized cost basis in past due loans at September 30, 2025 and December 31, 2024 by class of loans (in thousands):
|
30 - 89 Days |
Over 89 Days |
Total |
Loans Not |
|||||||||||||||||
|
Past Due |
Past Due |
Past Due |
Past Due |
Total |
||||||||||||||||
|
September 30, 2025 |
||||||||||||||||||||
|
Commercial |
$ | 864 | $ | 42 | $ | 906 | $ | 79,271 | $ | 80,177 | ||||||||||
|
Consumer |
124 | - | 124 | 5,851 | 5,975 | |||||||||||||||
|
Equipment finance leases |
126 | - | 126 | (48 | ) | 78 | ||||||||||||||
|
Commercial real estate |
424 | - | 424 | 794,553 | 794,977 | |||||||||||||||
|
Residential real estate |
2,646 | 46 | 2,692 | 209,656 | 212,348 | |||||||||||||||
| $ | 4,184 | $ | 88 | $ | 4,272 | $ | 1,089,283 | $ | 1,093,555 | |||||||||||
|
30 - 89 Days |
Over 89 Days |
Total |
Loans Not |
|||||||||||||||||
|
Past Due |
Past Due |
Past Due |
Past Due |
Total |
||||||||||||||||
|
December 31, 2024 |
||||||||||||||||||||
|
Commercial |
$ | 434 | $ | 87 | $ | 521 | $ | 86,052 | $ | 86,573 | ||||||||||
|
Consumer |
257 | 4 | 261 | 7,088 | 7,349 | |||||||||||||||
|
Equipment finance leases |
213 | - | 213 | (117 | ) | 96 | ||||||||||||||
|
Commercial real estate |
740 | - | 740 | 891,591 | 892,331 | |||||||||||||||
|
Residential real estate |
5,259 | 837 | 6,096 | 279,146 | 285,242 | |||||||||||||||
| $ | 6,903 | $ | 928 | $ | 7,831 | $ | 1,263,760 | $ | 1,271,591 | |||||||||||
There were no modifications of loans to borrowers experiencing financial difficulty that occurred during the nine months ended September 30, 2025 or 2024, and no previously modified loans defaulted during the nine months ended September 30, 2025 or 2024. The Company has made no commitments to lend additional funds on modified loans to borrowers experiencing financial difficulty.
The Company has not purchased any loans during the nine months ended September 30, 2025 or 2024. The Company sold approximately $136,391,000 and $0 in mortgage loans for the nine months ended September 30, 2025 and 2024, respectively.
Note 4 - Deposits
The carrying amount of deposits at September 30, 2025 and December 31, 2024 are as follows (in thousands):
|
September 30, |
December 31, |
|||||||
|
2025 |
2024 |
|||||||
|
Non-interest bearing demand accounts |
$ | 208,099 | $ | 217,335 | ||||
|
Interest-bearing checking accounts |
69,888 | 71,721 | ||||||
|
Limited access money market accounts |
394,781 | 402,104 | ||||||
|
Savings accounts |
27,382 | 25,511 | ||||||
|
Brokered CDs |
- | 70,000 | ||||||
|
Time deposits, less than $250 |
236,529 | 229,240 | ||||||
|
Time deposits, $250 and greater |
174,249 | 138,957 | ||||||
|
Total deposits |
$ | 1,110,928 | $ | 1,154,868 | ||||
14
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
At September 30, 2025, maturities of time deposits for the current and each of the next four years are (in thousands):
|
Certificates of |
Brokered |
|||||||
|
Deposits |
CDs |
|||||||
|
2025 |
$ | 150,580 | $ | - | ||||
|
2026 |
240,561 | - | ||||||
|
2027 |
14,176 | - | ||||||
|
2028 |
4,475 | - | ||||||
|
2029 |
836 | - | ||||||
|
Thereafter |
150 | - | ||||||
| $ | 410,778 | $ | - | |||||
Deposits from stockholders, officers and directors of the Company amounted to approximately $9,317,000 and $7,335,000 at September 30, 2025 and December 31, 2024, respectively. The amounts are included in various interest-bearing and non-interest-bearing deposit accounts.
Note 5 - Advances from Federal Home Loan Bank and Other Borrowings
As part of its management of interest rate risk, the Company periodically borrows from the Federal Home Loan Bank (FHLB). These advances are at fixed interest rates and are used as a source of funds from which the Company makes fixed rate mortgage loans. These advances are collateralized by a blanket lien on qualifying mortgage loans totaling approximately $483,278,000 and $552,791,000 at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025 and December 31, 2024, the Company had approximately $444,165,000 and $336,584,000 available for additional borrowings under this line of credit, respectively.
The Company also occasionally pledges standby FHLB letters of credit for municipalities in lieu of pledging debt securities. The balances were $9,000,000 and $11,000,000 at September 30, 2025 and December 31, 2024, respectively.
At September 30, 2025 and December 31, 2024, the Company had varying short-term and long-term advances outstanding with principal due at maturity and interest due monthly. The Bank had short-term advances from FHLB of $30,096,000 and $205,000,000 at September 30, 2025 and December 31, 2024, respectively.
The Bank had no long-term advances from FHLB at September 30, 2025 and $189,000 at December 31, 2024.
FHLB borrowings consisted of various variable rate advances at September 30, 2025 and December 31, 2024 as follows (in thousands):
|
September 30, 2025 |
December 31, 2024 |
|||||||||||||||||||||
|
Aggregate |
Weighted |
Aggregate |
Weighted |
|||||||||||||||||||
|
Advance |
Interest |
Average |
Advance |
Interest |
Average |
|||||||||||||||||
|
Amounts |
Rates |
Rate |
Amounts |
Rates |
Rate |
|||||||||||||||||
| $ | 30,096 | 3.605% - 4.5 | % | 4.43 | % | $ | 205,189 | 1.395% - 4.65 | % | 4.31 | % | |||||||||||
In addition to FHLB advances, the Company has 2 term notes from a financial institution. Outstanding borrowings on the notes totaled $32,000,000 at September 30, 2025 and December 31, 2024.
The Company also entered into a construction loan agreement with a financial institution. The fixed interest rate is set at 3.25 percent and the note is secured by a deed of trust for Lot 1, Block 1, La Paloma Addition in Southlake, TX. Principal and interest are due monthly and the note matures on October 30, 2029. At September 30, 2025 and December 31, 2024, outstanding borrowings totaled approximately $5,243,000 and $5,336,000, respectively.
15
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
The contractual maturities of short-term and long-term debt are as follows (in thousands):
|
Years ending December 31, |
||||
|
2025 |
$ | 35,645 | ||
|
2026 |
1,431 | |||
|
2027 |
1,845 | |||
|
2028 |
2,406 | |||
|
Thereafter |
25,965 | |||
| $ | 67,292 |
Note 6 - Securities Sold Under Agreements to Repurchase
Repurchase agreements are secured borrowings. These repurchase agreements have carrying values of approximately $2,374,000 and $2,302,000 at September 30, 2025 and December 31, 2024, respectively. The Company pledges investment securities to secure those borrowings. Securities sold under agreements to repurchase are secured by securities with a carrying amount of $2,531,000 and $2,545,000 at September 30, 2025 and December 31, 2024, respectively.
Note 7 - Convertible Subordinated Debt
At September 30, 2025, the Company had outstanding an aggregate of $12,204,000 in convertible subordinated notes. There were no notes converted into shares of common stock during the nine months ended September 30, 2025.
Note 8 - Short-Term Borrowings
In addition to the borrowing capacity at FHLB, the Company has established $30,000,000 in unsecured lines of credit for overnight purchase of federal funds. These lines may be cancelled without any prior notification. At September 30, 2025 and December 31, 2024, there were no outstanding balances.
Note 9 - Off-Balance-Sheet Activities
The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.
At September 30, 2025 and December 31, 2024, the amounts of these financial instruments were as follows (in thousands):
|
September 30, |
December 31, |
|||||||
|
2025 |
2024 |
|||||||
|
Financial instruments whose contract amounts represent credit risks |
||||||||
|
Commitments to extend credit and unfunded commitments |
$ | 86,461 | $ | 207,668 | ||||
|
Standby letters of credit |
839 | 727 | ||||||
16
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
Note 10 - Employee Benefit Plans
The Company maintains several individually designed supplemental deferred compensation agreements which provide a deferred compensation benefit payable at retirement or death. The liability under the agreements is recorded based upon the present value of the deferred compensation benefits. At September 30, 2025 and December 31, 2024, the Company's accrued liability under the agreements totaled approximately $3,496,000and $3,562,000, respectively. Deferred compensation expense of approximately $0 and $246,000 was recorded for the nine months ended September 30, 2025 and 2024, respectively. The Company has purchased life insurance policies to fund the benefits payable pursuant to the agreements. The Company is owner and beneficiary of the life insurance policies with aggregate death benefits of approximately $27,848,000 and $27,980,000 at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025 and December 31, 2024, the life insurance policies have cash surrender values of approximately $13,636,000 and $13,606,000, respectively.
Note 11 - Regulatory Matters
At September 30, 2025 and December 31, 2024, the Bank's actual and required capital amounts and ratios were as follows (dollars in thousands):
|
Minimum Required |
Required to be Well |
|||||||||||||||||||||||||||||||
|
for Capital |
Capitalized |
|||||||||||||||||||||||||||||||
|
Minimum Required |
Adequacy Purposes |
under the Prompt |
||||||||||||||||||||||||||||||
|
for Capital |
including Capital |
Corrective Action |
||||||||||||||||||||||||||||||
|
Actual |
Adequacy Purposes |
Conservation Buffer |
Provisions |
|||||||||||||||||||||||||||||
|
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
|||||||||||||||||||||||||
|
As of September 30, 2025 |
||||||||||||||||||||||||||||||||
|
Common Equity Tier 1 (to risk-weighted assets) |
$ | 142,198 | 17.27 | % | $ | 37,047 | 4.50 | % | $ | 57,629 | 7.00 | % | $ | 53,513 | 6.50 | % | ||||||||||||||||
|
Total capital (to risk- weighted assets) |
$ | 152,515 | 18.53 | % | $ | 65,862 | 8.00 | % | $ | 86,444 | 10.50 | % | $ | 82,327 | 10.00 | % | ||||||||||||||||
|
Tier 1 capital (to risk-weighted assets) |
$ | 142,198 | 17.27 | % | $ | 49,396 | 6.00 | % | $ | 69,978 | 8.50 | % | $ | 65,862 | 8.00 | % | ||||||||||||||||
|
Tier 1 capital (to average weighted assets) |
$ | 142,198 | 11.04 | % | $ | 32,931 | 4.00 | % | $ | 32,931 | 4.00 | % | $ | 41,164 | 5.00 | % | ||||||||||||||||
|
As of December 31, 2024 |
||||||||||||||||||||||||||||||||
|
Common Equity Tier 1 (to risk-weighted assets) |
$ | 146,028 | 14.33 | % | $ | 45,844 | 4.50 | % | $ | 71,313 | 7.00 | % | $ | 66,220 | 6.50 | % | ||||||||||||||||
|
Total capital (to risk- weighted assets) |
$ | 158,589 | 15.57 | % | $ | 81,501 | 8.00 | % | $ | 106,970 | 10.50 | % | $ | 101,876 | 10.00 | % | ||||||||||||||||
|
Tier 1 capital (to risk-weighted assets) |
$ | 146,028 | 14.33 | % | $ | 61,126 | 6.00 | % | $ | 86,595 | 8.50 | % | $ | 81,501 | 8.00 | % | ||||||||||||||||
|
Tier 1 capital (to average weighted assets) |
$ | 146,028 | 10.32 | % | $ | 40,751 | 4.00 | % | $ | 40,751 | 4.00 | % | $ | 50,938 | 5.00 | % | ||||||||||||||||
17
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
Note 12 - Fair Value of Financial Instruments
Fair Value Measurements
The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 (in thousands):
|
Level 1 |
Level 2 |
Level 3 |
Total Fair |
|||||||||||||
|
Inputs |
Inputs |
Inputs |
Value |
|||||||||||||
|
September 30, 2025 |
||||||||||||||||
|
Available for sale |
||||||||||||||||
|
Obligations of states and municipal subdivisions |
$ | - | $ | 24,737 | $ | - | $ | 24,737 | ||||||||
|
Mortgage-backed securities |
- | 14,315 | - | 14,315 | ||||||||||||
|
Collateralized mortgage obligations |
- | 11,975 | - | 11,975 | ||||||||||||
|
Corporate bonds |
- | 997 | - | 997 | ||||||||||||
|
Totals |
$ | - | $ | 52,024 | $ | - | $ | 52,024 | ||||||||
|
December 31, 2024 |
||||||||||||||||
|
Available for sale |
||||||||||||||||
|
Obligations of states and municipal subdivisions |
$ | - | $ | 25,381 | $ | - | $ | 25,381 | ||||||||
|
Mortgage-backed securities |
- | 15,678 | - | 15,678 | ||||||||||||
|
Collateralized mortgage obligations |
- | 13,126 | - | 13,126 | ||||||||||||
|
Corporate bonds |
- | 972 | - | 972 | ||||||||||||
|
Loans held-for-sale |
- | 1,999 | - | 1,999 | ||||||||||||
|
Totals |
$ | - | $ | 57,156 | $ | - | $ | 57,156 | ||||||||
The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets using fair value measurements in accordance with generally accepted account principles. Fair values of assets measured on a nonrecurring basis at September 30, 2025 and December 31, 2024 were as follows (in thousands):
|
Level 1 |
Level 2 |
Level 3 |
Total Fair |
|||||||||||||
|
Inputs |
Inputs |
Inputs |
Value |
|||||||||||||
|
September 30, 2025 |
||||||||||||||||
|
Collateral dependent loans |
$ | - | $ | - | $ | 5,539 | $ | 5,539 | ||||||||
| $ | - | $ | - | $ | 5,539 | $ | 5,539 | |||||||||
|
December 31, 2024 |
||||||||||||||||
|
Collateral dependent loans |
$ | - | $ | - | $ | 6,488 | $ | 6,488 | ||||||||
| $ | - | $ | - | $ | 6,488 | $ | 6,488 | |||||||||
The allowance for credit losses for collateral dependent loans are determined based on the fair value of collateral method. Under the fair value of collateral method, the allowance for credit loss is equal to the difference between the carrying value of the loan and the fair value of the collateral less estimated selling costs. The resulting fair value measurement is disclosed in the nonrecurring hierarchy table. Where estimates of fair value used for other collateral supporting commercial loans are based on assumptions not observable in the marketplace, such valuations have been classified as Level 3.
18
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
The following table presents the carrying values and estimated fair values of all financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or are measured at fair value on a non-recurring basis (in thousands):
|
September 30, 2025 |
||||||||||||||||||||
|
Carrying |
Total |
|||||||||||||||||||
|
Value |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
||||||||||||||||
|
Financial assets |
||||||||||||||||||||
|
Cash and due from banks |
$ | 9,113 | $ | 9,113 | $ | 9,113 | $ | - | $ | - | ||||||||||
|
Interest bearing deposits in banks |
119,794 | 119,794 | 119,794 | - | - | |||||||||||||||
|
Debt securities available for sale |
52,024 | 52,024 | - | 52,024 | - | |||||||||||||||
|
Debt securities held to maturity |
364 | 364 | - | 364 | - | |||||||||||||||
|
Loans, net |
1,082,915 | 1,051,933 | - | - | 1,051,933 | |||||||||||||||
|
Interest receivable |
5,746 | 5,746 | - | - | 5,746 | |||||||||||||||
|
Financial liabilities |
||||||||||||||||||||
|
Deposits |
$ | 1,110,928 | $ | 1,036,674 | $ | - | $ | - | $ | 1,036,674 | ||||||||||
|
Federal funds and repurchase agreements |
1,784 | 1,784 | - | - | 1,784 | |||||||||||||||
|
Federal Home Loan Bank advances |
30,096 | 30,096 | - | - | 30,096 | |||||||||||||||
|
Other borrowings |
37,196 | 37,196 | - | - | 37,196 | |||||||||||||||
|
Subordinated debentures |
20,924 | 20,924 | - | 20,924 | - | |||||||||||||||
|
Interest payable |
2,105 | 2,105 | - | - | 2,105 | |||||||||||||||
|
December 31, 2024 |
||||||||||||||||||||
|
Carrying |
Total |
|||||||||||||||||||
|
Value |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
||||||||||||||||
|
Financial assets |
||||||||||||||||||||
|
Cash and due from banks |
$ | 25,191 | $ | 25,191 | $ | 25,191 | $ | - | $ | - | ||||||||||
|
Interest bearing deposits in banks |
138,892 | 138,892 | 138,892 | - | - | |||||||||||||||
|
Debt securities available for sale |
55,157 | 55,157 | - | 55,157 | - | |||||||||||||||
|
Debt securities held to maturity |
501 | 501 | - | 501 | - | |||||||||||||||
|
Loans held-for-sale |
1,999 | 1,942 | - | 1,942 | - | |||||||||||||||
|
Loans, net |
1,260,776 | 1,224,705 | - | - | 1,224,705 | |||||||||||||||
|
Interest receivable |
6,634 | 6,634 | - | - | 6,634 | |||||||||||||||
|
Financial liabilities |
||||||||||||||||||||
|
Deposits |
$ | 1,154,868 | $ | 1,077,677 | $ | - | $ | - | $ | 1,077,677 | ||||||||||
|
Federal funds and repurchase agreements |
2,302 | 2,302 | - | - | 2,302 | |||||||||||||||
|
Federal Home Loan Bank advances |
205,189 | 205,189 | - | - | 205,189 | |||||||||||||||
|
Other borrowings |
37,336 | 37,336 | - | - | 37,336 | |||||||||||||||
|
Subordinated debentures |
33,128 | 33,128 | - | 33,128 | - | |||||||||||||||
|
Interest payable |
2,177 | 2,177 | - | - | 2,177 | |||||||||||||||
Note 13 - Income Taxes
Income tax expense at September 30, 2025 was as follows:
|
Current expense |
$ | 1,056 | ||
|
Deferred benefit |
(250 | ) | ||
|
Total |
$ | 806 |
19
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
Note 14 - Parent Company Only Condensed Financial Information
Condensed financial information of Wichita Falls Bancshares, Inc., on a parent company only basis, follows:
|
CONDENSED BALANCE SHEETS |
||||||||
|
September 30, |
December 31, |
|||||||
|
2025 |
2024 |
|||||||
|
Assets |
||||||||
|
Cash and cash equivalents |
$ | 7,174 | $ | 11,391 | ||||
|
Investment in subsidiaries |
147,425 | 150,011 | ||||||
|
Other assets |
540 | 1,022 | ||||||
|
Total assets |
$ | 155,139 | $ | 162,424 | ||||
|
Liabilities and equity |
||||||||
|
Debt |
$ | 52,924 | $ | 65,128 | ||||
|
Accrued expenses and other liabilities |
7 | 62 | ||||||
|
Shareholders' equity |
102,208 | 97,234 | ||||||
|
Total liabilities and shareholders' equity |
$ | 155,139 | $ | 162,424 | ||||
|
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
||||||||
|
Nine Months ended September 30, |
||||||||
|
2025 |
2024 |
|||||||
|
Dividends from subsidiaries |
$ | 12,546 | $ | 50 | ||||
|
Other income |
16 | 19 | ||||||
|
Interest expense |
(4,223 | ) | (3,611 | ) | ||||
|
Other expense |
(302 | ) | (5 | ) | ||||
|
Loss before income tax and undistributed subsidiary income |
8,037 | (3,547 | ) | |||||
|
Income tax benefit |
489 | - | ||||||
|
Equity in undistributed subsidiary income |
(4,915 | ) | 6,930 | |||||
|
Net income |
$ | 3,611 | $ | 3,383 | ||||
|
Comprehensive income |
$ | 4,974 | $ | 4,780 | ||||
20
Wichita Falls Bancshares, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
September 30, 2025 and 2024 (Unaudited)
|
CONDENSED STATEMENTS OF CASH FLOWS |
||||||||
|
Nine Months ended September 30, |
||||||||
|
2025 |
2024 |
|||||||
|
Operating Activities |
||||||||
|
Net income |
$ | 3,611 | $ | 3,383 | ||||
|
Adjustments: |
||||||||
|
Equity in undistributed subsidiary income |
4,914 | (6,930 | ) | |||||
|
Change in other assets |
485 | 5 | ||||||
|
Change in other liabilities |
(58 | ) | (115 | ) | ||||
|
Net cash from operating activities |
8,952 | (3,657 | ) | |||||
|
Financing Activities |
||||||||
|
Proceeds from subordinated debt |
- | 8,700 | ||||||
|
Repayments of subordinated debt |
(12,203 | ) | - | |||||
|
Paid in capital |
(966 | ) | (6,500 | ) | ||||
|
Dividends paid |
- | (81 | ) | |||||
|
Net cash from financing activities |
(13,169 | ) | 2,119 | |||||
|
Net change in cash and cash equivalents |
(4,217 | ) | (1,538 | ) | ||||
|
Beginning cash and cash equivalents |
11,391 | 14,168 | ||||||
|
Ending cash and cash equivalents |
$ | 7,174 | $ | 12,630 | ||||
Note 15 - Earnings Per Share
The factors used in the earnings per share computation follow:
|
Nine Months ended |
||||||||
|
September 30, |
||||||||
|
2025 |
2024 |
|||||||
|
Net Income |
$ | 3,611 | $ | 3,383 | ||||
|
Average Shares |
620,912 | 575,889 | ||||||
|
Earnings per common share |
$ | 5.82 | $ | 5.88 | ||||
21
Investar Holding Corporation published this content on November 14, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 14, 2025 at 22:26 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]