NEW INDEPENDENT BANCSHARES, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Nature of Operations New Independent Bancshares, Inc.( the Company) through its subsidiary, The New Washington State Bank( the Bank), provides a full range of banking services to individual and business customers in Southern Indiana and the contiguous interstate area. The Company and the Bank are subject to the regulations of various federal and state agencies and undergo periodic examination by regulators. New Independent Bancshares, Inc. is a bank holding company. The New Washington State Bank is a wholly-owned bank subsidiary.
The New Independent Title and Insurance Company, LLC is a wholly-owned subsidiary of The New Washington State Bank. The Insurance Company provides title insurance.
Substantially all of the assets, liabilities, and operations presented in the consolidated financial statements are attributable to The New Washington State Bank.
b. Principles of Consolidation The consolidated financial statements include the accounts of the parent company, New Independent Bancshares, Inc., its subsidiary, The New Washington State Bank, and the Bank ' s subsidiary, New Independent Title and Insurance Company, LLC. All significant intercompany balances and transactions have been eliminated.
c. Presentation of Cash Flows For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, amounts due from banks( including cash items in process of clearing), interest-bearing deposits in banks with an original maturity of 90 days or less, and federal funds sold. Generally federal funds are sold for oneday periods.
d. Investment Securities Debt securities classified as held-to-maturity are those debt securities the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost, adjusted for amortization of premium and accretion of discount, computed using the interest method, over their contractual lives.
Debt securities classified as available-for-sale are those debt securities that the Company intends to hold for an indefinite period but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movement in interest rates, changes in the maturity mix of the Company ' s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. These securities are carried at estimated fair value based on information provided by a third-party pricing service with any unrealized gains or losses excluded from net income and reported in accumulated other comprehensive income( loss), which is reported as a separate component of stockholders ' equity.
Gains and losses realized on sales of debt securities, determined using the adjusted cost basis of the specific securities sold, are included in other operating income in the Consolidated Statements of Income.
22 | 2024 NWSB Annual Report