|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer ☐
|
|
Non-accelerated filer ☐
|
Smaller reporting company
|
Emerging growth company
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
OTCQX
|
PART I. - FINANCIAL INFORMATION
|
Page
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
3
|
|
|
|
|
|
|
4
|
||
|
|
|
|
|
5
|
||
|
|
|
|
|
6
|
||
|
|
|
|
|
7
|
||
|
|
|
|
|
|
8
|
|
|
|
|
|
36
|
|||
|
|
|
|
57
|
|||
|
|
|
|
|
60
|
||
|
|
|
|
PART II. - OTHER INFORMATION
|
|
||
|
|
|
|
61 | |||
|
|
|
|
61
|
|||
|
|
|
|
|
61
|
||
|
|
|
|
|
61
|
||
|
|
|
|
|
61
|
||
|
|
|
|
|
61
|
||
|
|
|
|
|
61
|
||
|
|
|
|
62
|
Assets
|
September 30,
2021
|
December 31,
2020
|
September 30,
2020
|
|||||||||
Cash and Cash Equivalents:
|
||||||||||||
Cash and Due from Banks
|
$
|
|
$
|
|
$
|
|
||||||
Interest Bearing Deposits with Banks
|
|
|
|
|||||||||
Total Cash and Cash Equivalents
|
|
|
|
|||||||||
Investment Securities:
|
||||||||||||
Available-for-Sale
|
|
|
|
|||||||||
Held-to-Maturity, fair value $
|
|
|
|
|||||||||
Total Investment Securities
|
|
|
|
|||||||||
Loans & Leases:
|
|
|
|
|||||||||
Less: Allowance for Credit Losses
|
|
|
|
|||||||||
Loans & Leases, Net
|
|
|
|
|||||||||
Premises and Equipment, Net
|
|
|
|
|||||||||
Bank Owned Life Insurance, Net
|
|
|
|
|||||||||
Interest Receivable and Other Assets
|
|
|
|
|||||||||
Total Assets
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities
|
||||||||||||
Deposits:
|
||||||||||||
Demand
|
$
|
|
$
|
|
$
|
|
||||||
Interest Bearing Transaction
|
|
|
|
|||||||||
Savings and Money Market
|
|
|
|
|||||||||
Time
|
|
|
|
|||||||||
Total Deposits
|
|
|
|
|||||||||
Subordinated Debentures
|
|
|
|
|||||||||
Interest Payable and Other Liabilities
|
|
|
|
|||||||||
Total Liabilities
|
|
|
|
|||||||||
Shareholders’ Equity
|
||||||||||||
Preferred Stock:
|
|
|
|
|||||||||
Common Stock: Par Value $
|
|
|
|
|||||||||
Additional Paid-In Capital
|
|
|
|
|||||||||
Retained Earnings
|
|
|
|
|||||||||
Accumulated Other Comprehensive (Loss) Income, Net of Taxes
|
(
|
)
|
|
|
||||||||
Total Shareholders’ Equity
|
|
|
|
|||||||||
Total Liabilities and Shareholders’ Equity
|
$
|
|
$
|
|
$
|
|
(in thousands except per share data)
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Interest Income
|
||||||||||||||||
Interest and Fees on Loans & Leases
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest on Deposits with Banks
|
|
|
|
|
||||||||||||
Interest on Investment Securities:
|
||||||||||||||||
Taxable
|
|
|
|
|
||||||||||||
Exempt from Federal Tax
|
|
|
|
|
||||||||||||
Total Interest Income
|
|
|
|
|
||||||||||||
Interest Expense
|
||||||||||||||||
Deposits
|
|
|
|
|
||||||||||||
Subordinated Debentures
|
|
|
|
|
||||||||||||
Total Interest Expense
|
|
|
|
|
||||||||||||
Net Interest Income
|
|
|
|
|
||||||||||||
Provision for Credit Losses
|
|
|
|
|
||||||||||||
Net Interest Income After Provision for Loan Losses
|
|
|
|
|
||||||||||||
Non-Interest Income
|
||||||||||||||||
Service Charges on Deposit Accounts
|
|
|
|
|
||||||||||||
Net Gain on Sale of Investment Securities
|
|
|
|
|
||||||||||||
Increase in Cash Surrender Value of Bank Owned Life Insurance
|
|
|
|
|
||||||||||||
Debit Card and ATM Fees
|
|
|
|
|
||||||||||||
Net Gain on Deferred Compensation Investments
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total Non-Interest Income
|
|
|
|
|
||||||||||||
Non-Interest Expense
|
||||||||||||||||
Salaries and Employee Benefits
|
|
|
|
|
||||||||||||
Net Gain on Deferred Compensation Investments
|
|
|
|
|
||||||||||||
Occupancy
|
|
|
|
|
||||||||||||
Equipment
|
|
|
|
|
||||||||||||
Marketing
|
|
|
|
|
||||||||||||
Legal
|
|
|
|
|
||||||||||||
FDIC Insurance
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total Non-Interest Expense
|
|
|
|
|
||||||||||||
Income Before Provision for Income Taxes
|
|
|
|
|
||||||||||||
Provision for Income Taxes
|
|
|
|
|
||||||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Basic and Diluted Earnings Per Common Share
|
$
|
|
$
|
|
$
|
|
$
|
|
(in thousands)
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other Comprehensive Income
|
||||||||||||||||
Increase in Net Unrealized (Loss) Gain on Available-for-Sale Securities
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|||||||||
Deferred Tax Provision Benefit (Expense) Related to Unrealized (Loss) Gains
|
|
|
|
(
|
)
|
|||||||||||
Reclassification Adjustment for Realized Gains on Available-for-Sale Securities Included in Net
Income
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Deferred Tax Related to Reclassification Adjustment
|
|
|
|
|
||||||||||||
Amortization of Unrealized Loss on Securities Transferred to Held to Maturity
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Deferred Tax Benefit Related to Loss on Securities Transferred
|
|
|
|
|
||||||||||||
Total Other Comprehensive (Loss) Income
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|||||||||
Comprehensive Income
|
$
|
|
$
|
|
$
|
|
$
|
|
For the three and nine months ended September 30, 2021 and 2020
|
||||||||||||||||||||||||
(in thousands except share data)
|
Common
Shares
Outstanding
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income, net
|
Total
Shareholders’
Equity
|
||||||||||||||||||
Three Months Ended September 30, 2021
|
||||||||||||||||||||||||
Balance, June 30, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net Income
|
|
|
|
|
||||||||||||||||||||
Other Comprehensive Loss
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||
Balance, September 30, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Three Months Ended September 30, 2020
|
||||||||||||||||||||||||
Balance, June 30, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net Income
|
|
|
|
|
||||||||||||||||||||
Other Comprehensive Loss
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||
Balance, September 30, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Nine
Months Ended September 30, 2021
|
||||||||||||||||||||||||
Balance, December 31, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net Income
|
-
|
|
|
|
|
|||||||||||||||||||
Cash Dividends Declared on Common Stock ($
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||
Cash Dividends Returned
|
|
|
|
|
|
|||||||||||||||||||
Other Comprehensive Loss
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||
Balance, September 30, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Nine
Months Ended September 30, 2020
|
||||||||||||||||||||||||
Balance, December 31, 2019
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net Income
|
-
|
|
|
|
|
|||||||||||||||||||
Cash Dividends Declared on Common Stock ($
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||
Issuance of Common Stock
|
|
|
|
|
|
|
||||||||||||||||||
Other Comprehensive Income
|
|
|
|
|
|
|||||||||||||||||||
Balance, September 30, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Nine Months
|
||||||||
Ended September 30, | ||||||||
(in thousands) | 2021 |
2020 |
||||||
Operating Activities:
|
||||||||
Net Income
|
$
|
|
$
|
|
||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
||||||||
Provision for Credit Losses
|
|
|
||||||
Depreciation and Amortization
|
|
|
||||||
Net Amortization of Investment Security Premiums & Discounts
|
|
|
||||||
Amortization of Core Deposit Intangible
|
|
|
||||||
Accretion of Discount on Acquired Loans
|
(
|
)
|
(
|
)
|
||||
Net (Gain) on Sale of Investment Securities
|
(
|
)
|
(
|
)
|
||||
Net (Gain) on Sale of Property & Equipment
|
(
|
)
|
(
|
)
|
||||
Net Change in Operating Assets & Liabilities:
|
||||||||
Net (Increase) in Interest Receivable and Other Assets
|
(
|
)
|
(
|
)
|
||||
Net Increase (Decrease) in Interest Payable and Other Liabilities
|
|
(
|
)
|
|||||
Net Cash Provided by Operating Activities
|
|
|
||||||
Investing Activities:
|
||||||||
Purchase of Investment Securities Available-for-Sale
|
(
|
)
|
(
|
)
|
||||
Proceeds from Sold, Matured or Called Securities Available-for-Sale
|
|
|
||||||
Purchase of Investment Securities Held-to-Maturity
|
(
|
)
|
(
|
)
|
||||
Proceeds from Matured or Called Securities Held-to-Maturity
|
|
|
||||||
Net Loans & Leases Paid, Originated or Acquired
|
(
|
)
|
(
|
)
|
||||
Additions to Premises and Equipment, Net
|
(
|
)
|
(
|
)
|
||||
Purchase of Other Investments
|
(
|
)
|
(
|
)
|
||||
Redemption of Other Investment | ||||||||
Proceeds from Sale of Property & Equipment
|
|
|
||||||
Net Cash Used in Investing Activities
|
(
|
)
|
(
|
)
|
||||
Financing Activities:
|
||||||||
Net Increase in Deposits
|
|
|
||||||
Cash Dividends
|
(
|
)
|
(
|
)
|
||||
Cash Dividends Return
|
|
|
||||||
Net Cash Provided by Financing Activities
|
|
|
||||||
Net Change in Cash and Cash Equivalents
|
|
|
||||||
Cash and Cash Equivalents at Beginning of Period
|
|
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
|
$
|
|
||||
Supplementary Data
|
||||||||
Cash Payments Made for Income Taxes
|
$
|
|
$
|
|
||||
Issuance of Common Stock to the Bank’s Non-Qualified Retirement Plans
|
$
|
|
$
|
|
||||
Interest Paid
|
$
|
|
$
|
|
||||
Supplementary Noncash Disclosure
|
||||||||
Investment Securities Available-for-Sale Transferred to Held-to-Maturity
|
$
|
|
$ | |||||
Lease Liabilities Arising from Obtaining Right-of-Use Assets | $ | $ |
(in thousands)
|
2021
|
2022
|
2023
|
2024
|
2025
|
Thereafter
|
Total
|
|||||||||||||||||||||
Core Deposit Intangible Amortization
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Amortized
Cost
|
Gross Unrealized
|
Fair
Value
|
||||||||||||||
September 30, 2021
|
Gains
|
Losses
|
||||||||||||||
U.S. Treasury Notes
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. Government Agency SBA
|
|
|
|
|
||||||||||||
Mortgage-Backed Securities (1)(2)
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Amortized
Cost
|
Gross Unrealized
|
Fair
Value
|
||||||||||||||
December 31, 2020
|
Gains
|
Losses
|
||||||||||||||
U.S. Treasury Notes
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. Government Agency SBA
|
|
|
|
|
||||||||||||
Mortgage-Backed Securities (1)
|
|
|
|
|
||||||||||||
Corporate Securities
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Amortized
Cost
|
Gross Unrealized
|
Fair
Value
|
||||||||||||||
September 30, 2020
|
Gains
|
Losses
|
||||||||||||||
U.S. Treasury Notes
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. Government Agency SBA
|
|
|
|
|
||||||||||||
Mortgage-Backed Securities (1)
|
|
|
|
|
||||||||||||
Corporate Securities
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
Amortized
Cost
|
Gross Unrealized
|
Fair
Value
|
||||||||||||||
September 30, 2021
|
Gains
|
Losses
|
||||||||||||||
Obligations of States and Political Subdivisions
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Mortgage Backed Securities (1)(2)
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Amortized
Cost
|
Gross Unrealized
|
Fair
Value
|
||||||||||||||
December 31, 2020
|
Gains
|
Losses
|
||||||||||||||
Obligations of States and Political Subdivisions
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Amortized
Value
|
Gross Unrealized
|
Fair
Value
|
||||||||||||||
September 30, 2020
|
Gains
|
Losses
|
||||||||||||||
Obligations of States and Political Subdivisions
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
Available-for-Sale
|
Held-to-Maturity
|
|||||||||||||||
September 30, 2021
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
||||||||||||
Within one year
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
After one year through five years
|
|
|
|
|
||||||||||||
After five years through ten years
|
|
|
|
|
||||||||||||
After ten years
|
|
|
|
|
||||||||||||
|
|
|
|
|||||||||||||
Investment securities not due at a single maturity date:
|
||||||||||||||||
Mortgage-Backed securities
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
September 30, 2021
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||
U.S. Government Agency SBA
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Mortgage-Backed Securities
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||||||||||
Mortgage Backed Securities
|
|
|
|
|
$
|
|
$
|
|
||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
December 31, 2020
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||
U.S. Government Agency SBA
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Mortgage-Backed Securities
|
|
|
|
|
|
|
||||||||||||||||||
Corporate Securities
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
September 30, 2020
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||
U.S. Government Agency SBA
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||
Mortgage-Backed Securities
|
|
|
|
|
|
|
||||||||||||||||||
Corporate Securities
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Three Months
Ended September 30,
|
Nine
Months
Ended September 30,
|
||||||||||||||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Proceeds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Gains
|
|
|
|
|
||||||||||||
Losses
|
|
|
|
|
(in thousands)
|
September 30,
2021
|
December 31,
2020
|
September 30,
2020
|
|||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
||||
Agricultural Real Estate
|
|
|
|
|||||||
Real Estate Construction
|
|
|
|
|||||||
Residential 1st Mortgages
|
|
|
|
|||||||
Home Equity Lines & Loans
|
|
|
|
|||||||
Agricultural
|
|
|
|
|||||||
Commercial
|
|
|
|
|||||||
Consumer & Other (1)
|
|
|
|
|||||||
Leases
|
|
|
|
|||||||
Total Gross Loans & Leases
|
|
|
|
|||||||
Less: Unearned Income
|
|
|
|
|||||||
Subtotal
|
|
|
|
|||||||
Less: Allowance for Credit Losses
|
|
|
|
|||||||
Net Loans & Leases
|
$
|
|
$
|
|
$
|
|
(1)
|
|
September 30, 2021
|
Commercial
Real Estate
|
Agricultural
Real Estate
|
Real Estate
Construction
|
Residential 1st
Mortgages
|
Home Equity
Lines & Loans
|
Agricultural
|
Commercial
|
Consumer
& Other
|
Leases
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Charge-Offs
|
|
|
|
|
|
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Provision
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||||||||||||||||
Ending Balance- September 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Third Quarter Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- June 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Charge-Offs
|
|
|
|
|
|
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Provision
|
(
|
)
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
(
|
)
|
|
|||||||||||||||||||||||||||||
Ending Balance- September 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2020
|
Commercial
Real Estate
|
Agricultural
Real Estate
|
Real Estate
Construction
|
Residential 1st
Mortgages
|
Home Equity
Lines & Loans
|
Agricultural
|
Commercial
|
Consumer
& Other
|
Leases
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- December 31, 2019
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Charge-Offs
|
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Provision
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
||||||||||||||||||||||||||
Ending Balance- December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30, 2020
|
Commercial
Real Estate
|
Agricultural
Real Estate
|
Real Estate
Construction
|
Residential 1st
Mortgages
|
Home Equity
Lines & Loans
|
Agricultural
|
Commercial
|
Consumer
& Other
|
Leases
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- December 31, 2019
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Charge-Offs
|
|
|
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Provision
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
||||||||||||||||||||||||||
Ending Balance- September 30, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Third Quarter Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- June 30, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Charge-Offs
|
|
|
|
|
|
|
|
(
|
)
|
|
|
(
|
)
|
|||||||||||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Provision
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
|
|||||||||||||||||||||||||||
Ending Balance- September 30, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30, 2021
|
Pass(1)
|
Special
Mention
|
Substandard
|
Total Loans
& Leases
|
||||||||||||
Loans & Leases:
|
||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Agricultural Real Estate
|
|
|
|
|
||||||||||||
Real Estate Construction
|
|
|
|
|
||||||||||||
Residential 1st Mortgages
|
|
|
|
|
||||||||||||
Home Equity Lines & Loans
|
|
|
|
|
||||||||||||
Agricultural
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
||||||||||||
Consumer & Other
|
|
|
|
|
||||||||||||
Leases
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
December 31, 2020
|
Pass(1)
|
Special
Mention
|
Substandard
|
Total Loans
& Leases
|
||||||||||||
Loans & Leases:
|
||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Agricultural Real Estate
|
|
|
|
|
||||||||||||
Real Estate Construction
|
|
|
|
|
||||||||||||
Residential 1st Mortgages
|
|
|
|
|
||||||||||||
Home Equity Lines & Loans
|
|
|
|
|
||||||||||||
Agricultural
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
||||||||||||
Consumer & Other
|
|
|
|
|
||||||||||||
Leases
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
September 30, 2020
|
Pass(1)
|
Special
Mention
|
Substandard
|
Total Loans
& Leases
|
||||||||||||
Loans & Leases:
|
||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Agricultural Real Estate
|
|
|
|
|
||||||||||||
Real Estate Construction
|
|
|
|
|
||||||||||||
Residential 1st Mortgages
|
|
|
|
|
||||||||||||
Home Equity Lines & Loans
|
|
|
|
|
||||||||||||
Agricultural
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
||||||||||||
Consumer & Other
|
|
|
|
|
||||||||||||
Leases
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
September 30, 2021
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days and
Still Accruing
|
Nonaccrual
|
Total Past
Due
|
Current
|
Total
Loans & Leases
|
|||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Agricultural Real Estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Real Estate Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Residential 1st Mortgages
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer & Other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Leases
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2020
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days and
Still Accruing
|
Nonaccrual
|
Total Past
Due
|
Current
|
Total
Loans & Leases
|
|||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Agricultural Real Estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Real Estate Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Residential 1st Mortgages
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer & Other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Leases
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30, 2020
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days and
Still Accruing
|
Nonaccrual
|
Total Past
Due
|
Current
|
Total
Loans & Leases
|
|||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Agricultural Real Estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Real Estate Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Residential 1st Mortgages
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer & Other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Leases
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
September 30, 2021
|
Nine
Months Ended
September 30,
2021
|
|||||||||||||||||||||||||||
September 30, 2021
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
-
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Agricultural Real Estate
|
|
|
-
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
-
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
|
|
-
|
|
|
|
|
|||||||||||||||||||||
$
|
|
$
|
|
$
|
-
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Residential 1st Mortgages
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer & Other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2020
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
-
|
$
|
|
$
|
|
||||||||||
Agricultural Real Estate
|
|
|
-
|
|
|
|||||||||||||||
Agricultural
|
|
|
-
|
|
|
|||||||||||||||
Commercial
|
|
|
-
|
|
|
|||||||||||||||
$
|
|
$
|
|
$
|
-
|
$
|
|
$
|
|
|||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Agricultural Real Estate
|
|
|
|
|
|
|||||||||||||||
Residential 1st Mortgages
|
|
|
|
|
|
|||||||||||||||
Home Equity Lines & Loans
|
|
|
|
|
|
|||||||||||||||
Agricultural
|
|
|
|
|
|
|||||||||||||||
Commercial
|
|
|
|
|
|
|||||||||||||||
Consumer & Other
|
|
|
|
|
|
|||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
September 30, 2020
|
Nine
Months Ended
September 30,
2020
|
|||||||||||||||||||||||||||
September 30, 2020
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
-
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Agricultural Real Estate
|
|
|
-
|
|
|
|
|
|||||||||||||||||||||
Agricultural |
- |
|||||||||||||||||||||||||||
Commercial
|
|
|
-
|
|
|
|
|
|||||||||||||||||||||
$
|
|
$
|
|
$
|
-
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Agricultural Real Estate
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Residential 1st Mortgages
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer & Other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2020
|
||||||||||||
Troubled Debt Restructurings
|
Number of
Loans
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
|||||||||
Residential 1st Mortgages
|
|
$
|
|
$
|
|
|||||||
Agricultural
|
|
|
|
|||||||||
Commercial
|
|
|
|
|||||||||
Total
|
|
$
|
|
$
|
|
Three Months Ended
September 30,
2020
|
Nine
Months Ended
September 30,
2020
|
|||||||||||||||||||||||
Troubled Debt Restructurings
|
Number of
Loans
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Number of
Loans
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||||||||||
Residential 1st Mortgages
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
||||||||||||||
Agricultural
|
|
|
|
|
|
|
||||||||||||||||||
Commercial |
||||||||||||||||||||||||
Total
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
Fair Value Measurements
At September 30,
2021, Using
|
||||||||||||||||
Fair Value
|
Quoted Prices in
Active Markets
for Identical
Assets
|
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
|||||||||||||
(in thousands)
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Available-for-Sale Securities:
|
||||||||||||||||
U.S. Treasury Notes
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. Government Agency SBA
|
|
|
|
|
||||||||||||
Mortgage-Backed Securities
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value Measurements
At December 31, 2020,
Using
|
||||||||||||||||
Fair Value
|
Quoted Prices in
Active Markets
for Identical
Assets
|
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
|||||||||||||
(in thousands)
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Available-for-Sale Securities:
|
||||||||||||||||
U.S. Treasury Notes
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. Government Agency SBA
|
|
|
|
|
||||||||||||
Mortgage-Backed Securities
|
|
|
|
|
||||||||||||
Corporate Securities
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value Measurements
At September 30,
2020, Using
|
||||||||||||||||
Fair Value
|
Quoted Prices in
Active Markets
for Identical
Assets
|
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
|||||||||||||
(in thousands)
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Available-for-Sale Securities:
|
||||||||||||||||
U.S. Treasury Notes
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. Government Agency SBA
|
|
|
|
|
||||||||||||
Mortgage-Backed Securities
|
|
|
|
|
||||||||||||
Corporate Securities
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value Measurements
At September 30,
2021, Using
|
||||||||||||||||
(in thousands)
|
Fair Value
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Impaired Loans:
|
||||||||||||||||
Residential 1st Mortgage
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Home Equity Lines & Loans
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
||||||||||||
Consumer
|
|
|
|
|
||||||||||||
Total Impaired Loans
|
|
|
|
|
||||||||||||
Other Real Estate:
|
||||||||||||||||
Real Estate Construction
|
|
|
|
|
||||||||||||
Total Other Real Estate
|
|
|
|
|
||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value Measurements
At December 31, 2020,
Using
|
||||||||||||||||
(in thousands)
|
Fair Value
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Impaired Loans:
|
||||||||||||||||
Residential 1st Mortgage
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Home Equity Lines & Loans
|
|
|
|
|
||||||||||||
Agricultural
|
|
|
|
|
||||||||||||
Commercial
|
|
|
|
|
||||||||||||
Consumer
|
|
|
|
|
||||||||||||
Total Impaired Loans
|
|
|
|
|
||||||||||||
Other Real Estate:
|
||||||||||||||||
Real Estate Construction
|
|
|
|
|
||||||||||||
Total Other Real Estate
|
|
|
|
|
||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value Measurements
At September 30,
2020, Using
|
||||||||||||||||
(in thousands)
|
Fair Value
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Impaired Loans:
|
||||||||||||||||
Residential 1st Mortgage
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Home Equity Lines & Loans
|
|
|
|
|
||||||||||||
Agricultural
|
|
|
|
|
||||||||||||
Commercial | ||||||||||||||||
Consumer
|
|
|
|
|
||||||||||||
Total Impaired Loans
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Other Real Estate:
|
||||||||||||||||
Real Estate Construction
|
|
|
|
|
||||||||||||
Total Other Real Estate
|
|
|
|
|
||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis
|
$
|
|
$
|
|
$
|
|
$
|
|
September 30, 2021
|
||||||||||
(in thousands)
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range, Weighted Avg.
|
||||||
Impaired Loans:
|
||||||||||
Residential 1st Mortgage
|
$
|
|
Sales Comparison Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
||||
Home Equity Lines & Loans
|
$
|
|
Sales Comparison Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
||||
Commercial
|
$
|
|
Income Approach
|
Capitalization Rate
|
|
%
|
||||
Consumer
|
$
|
|
Income Approach
|
Capitalization Rate |
|
%
|
||||
Other Real Estate:
|
||||||||||
Real Estate Construction
|
$
|
|
Sales Comparison Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
December 31,
2020
|
||||||||||
(in thousands)
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range, Weighted Avg.
|
||||||
Impaired Loans:
|
||||||||||
Residential 1st Mortgage
|
$
|
|
Sales Comparison Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
||||
Home Equity Lines & Loans
|
$
|
|
Sales Comparison Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
||||
Agricultural
|
$
|
|
Income Approach
|
Capitalization Rate
|
|
%
|
||||
Commercial
|
$
|
|
Income Approach
|
Capitalization Rate
|
|
%
|
||||
Consumer
|
$
|
|
Income Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
||||
Other Real Estate:
|
||||||||||
Real Estate Construction
|
$
|
|
Sales Comparison Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
September 30,
2020
|
||||||||||
(in thousands)
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range, Weighted Avg.
|
||||||
Impaired Loans:
|
||||||||||
Residential 1st Mortgage
|
$
|
|
Sales Comparison Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
||||
Home Equity Lines & Loans
|
$
|
|
Sales Comparison Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
||||
Agricultural
|
$
|
|
Income Approach
|
Capitalization Rate
|
|
%
|
||||
Commercial | $ |
Income Approach | Capitalization Rate | % | ||||||
Consumer
|
$
|
|
Income Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
||||
Other Real Estate:
|
||||||||||
Real Estate Construction
|
$
|
|
Sales Comparison Approach
|
Adjustment for Difference
Between Comparable Sales
|
|
%
|
Fair Value of Financial Instruments Using
|
||||||||||||||||||||
September 30, 2021
(in thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
Estimated
Fair Value
|
|||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and Cash Equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Investment Securities Available-for-Sale
|
|
|
|
|
|
|||||||||||||||
Investment Securities Held-to-Maturity
|
|
|
|
|
|
|||||||||||||||
Loans & Leases, Net
|
|
|
|
|
|
|||||||||||||||
Accrued Interest Receivable
|
|
|
|
|
|
|||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposits
|
|
|
|
|
|
|||||||||||||||
Subordinated Debentures
|
|
|
|
|
|
|||||||||||||||
Accrued Interest Payable
|
|
|
|
|
|
Fair Value of Financial Instruments Using
|
||||||||||||||||||||
December 31, 2020
(in thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
Estimated
Fair Value
|
|||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and Cash Equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Investment Securities Available-for-Sale
|
|
|
|
|
|
|||||||||||||||
Investment Securities Held-to-Maturity
|
|
|
|
|
|
|||||||||||||||
Loans & Leases, Net
|
|
|
|
|
|
|||||||||||||||
Accrued Interest Receivable
|
|
|
|
|
|
|||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposits
|
|
|
|
|
|
|||||||||||||||
Subordinated Debentures
|
|
|
|
|
|
|||||||||||||||
Accrued Interest Payable
|
|
|
|
|
|
Fair Value of Financial Instruments Using
|
||||||||||||||||||||
September 30, 2020
(in thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
Estimated
Fair Value
|
|||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and Cash Equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Investment Securities Available-for-Sale
|
|
|
|
|
|
|||||||||||||||
Investment Securities Held-to-Maturity
|
|
|
|
|
|
|||||||||||||||
Loans & Leases, Net
|
|
|
|
|
|
|||||||||||||||
Accrued Interest Receivable
|
|
|
|
|
|
|||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposits
|
|
|
|
|
|
|||||||||||||||
Subordinated Debentures
|
|
|
|
|
|
|||||||||||||||
Accrued Interest Payable
|
|
|
|
|
|
Three Months
Ended September 30,
|
Nine
Months
Ended September 30,
|
|||||||||||||||
(net income in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted Average Number of Common Shares Outstanding
|
|
|
|
|
||||||||||||
Basic and Diluted Earnings Per Common Share
|
$
|
|
$
|
|
$
|
|
$
|
|
(in thousands except for
percent and period data)
|
Nine
Months Ended
September 30, 2021
|
Year Ended
December 31, 2020
|
Nine Months Ended
September 30, 2020
|
|||||||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
|
||||||||||||
Operating Cash Flow from Operating Leases
|
$
|
|
$
|
|
$
|
|
||||||
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities
|
$ | $ | $ | |||||||||
Weighted-Average Remaining Lease Term - Operating Leases, in Years
|
|
|
|
|||||||||
Weighted-Average Discount Rate - Operating Leases
|
|
%
|
|
%
|
|
%
|
(in thousands)
|
September 30, 2021
|
|||
2021
|
$
|
|
||
2022
|
|
|||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026 and thereafter
|
|
|||
Total Lease Payments
|
|
|||
Less: Interest
|
(
|
)
|
||
Present Value of Lease Liabilities
|
$
|
|
• |
Paycheck Protection Program (“PPP”) … The Small Business Administration (“SBA”) was directed by Congress to provide loans to small businesses with less than 500 employees to assist these businesses in meeting their payroll and other
financial obligations over the next several months (H.R. 133 reduced the number of employees to 300 for “second draw” PPP loans). These government guaranteed loans are made with an interest rate of 1%, a risk weight of 0% under risk-based
capital rules, have a term of two to five years, and under certain conditions the SBA can forgive them after eight or twenty-four weeks. Farmers & Merchants Bank of Central California has actively participated in the PPP, and since
April 2020 we have funded $494.9 million of loans for over 2,000 of our small business customers. As of September 30, 2021, $121.2 million of these loans remain outstanding. Although these loans carry a nominal interest rate of 1%, the SBA
will pay the banks an origination fee of 1-5% depending on the size of the loan. All fees have been capitalized and are being amortized over the life of the loans. The Company has collected $17.9 million in fees from the SBA and as of
September 30, 2021, $13.5 million of these fees have been accreted into income, since inception. Since these loans are currently in the process of being forgiven by the SBA, the income statement impact to the Company in the fourth quarter
of 2021 could be significant.
|
• |
Temporary Relief from Troubled Debt Restructurings … The CARES Act and H.R. 133 provide financial institutions, under specific circumstances, the opportunity to temporarily suspend certain requirements under generally accepted accounting
principles related to troubled debt restructurings (“TDR”) for a limited period of time to account for the effects of COVID-19. Farmers & Merchants Bank of Central California has, and continues to, actively work with existing borrowers
to restructure loans, primarily for up to six months, moving to either interest only payments or full deferral of principal and interest payments. After the deferral period ends, any deferred amounts would then be added to the final
principal balance. We believe that these actions will assist these borrowers in getting through these difficult times, but no guaranties can be made that at some time in the future these loans will not be required to be accounted for as a
TDR.
|
• |
Foreclosure Actions … The CARES Act and H.R. 133 restrict the ability of financial institutions to exercise their foreclosure rights on residential and multi-family properties backed by federally guaranteed mortgage loans. The State of
California went further and temporarily suspended all residential and commercial foreclosures through September 30, 2021, but these guidelines have now expired. The Company continues to work with its borrowers when they make requests to
defer payments on their mortgage loans.
|
• |
CECL Implementation Deferral … The Company was originally scheduled to implement ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“CECL”) as of January 1, 2020. The CARES Act and
H.R. 133 provide the election to defer CECL implementation until January 1, 2022. In addition, the national banking regulators have issued a joint statement allowing financial institutions to mitigate the effects of CECL in their regulatory
capital calculations for up to two years. The Company has elected to delay CECL implementation.
|
• |
We may not be able to maintain staff levels in order to operate key activities of our business.
|
• |
Our earnings may be affected by borrowers that cannot make payments on their loans. We have credit exposure to industries that have been impacted by either: (1) the public’s changing habits in response to the risks of COVID-19 (e.g.,
hotels, movie theaters, health clubs and restaurants); or (2) possible reinstatements of “shelter-in-place” orders by local, state and federal officials (e.g., small businesses determined to be “non-essential”).
|
• |
Our liquidity position may be affected as a result of significant and unusual deposit outflows or loan drawdowns.
|
• |
Liquidity consisting of $804 million of Fed Funds Sold and $884 million of Investment Securities;
|
• |
Strong Asset Quality as reflected by only $516,000 of non-performing loans, and a negligible delinquency ratio of .036% of total loans and leases;
|
• |
Risk Based Capital Ratio of 13.28%;
|
• |
Allowance for Credit Losses of $60.3 million or 1.92% of total loans and leases (2.00% exclusive of government fully guaranteed loans issued under the SBA’s PPP); and
|
• |
ROAA of 1.39% and ROAE of 15.64% in third quarter 2021.
|
• |
Net income increased 16.5% to $50.4 million from $43.2 million.
|
• |
Earnings per share increased 17.1% to $63.79 from $54.49.
|
• |
Total assets increased 18.6% to $5.1 billion from $4.3 billion.
|
• |
Loans & leases (exclusive of SBA PPP loans) increased 9.2% to $3.02 billion from $2.76 billion.
|
• |
Total deposits increased 19.8% to $4.6 billion from $3.8 billion.
|
• |
A $10.5 million increase in net interest income related to the growth in earning assets.
|
• |
A $2.5 million increase in gain on investment securities sold.
|
• |
A $1.1 million increase in Debit Card and ATM fees.
|
• |
A $1.1 million increase in other non-interest income.
|
• |
A $750,000 decrease in the provision for credit losses.
|
• |
A $5.1 million increase in salaries and employee benefits.
|
• |
A $646,000 increase in FDIC insurance expense.
|
• |
A $499,000 increase in other non-interest expense.
|
• |
An increase in the tax provision from 24.4% to 24.8%.
|
Three Months Ended
Sept 30, 2021
|
Three Months Ended
Sept 30, 2020
|
|||||||||||||||||||||||
Assets
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
Interest Bearing Deposits with Banks
|
$
|
856,159
|
$
|
328
|
0.15
|
%
|
$
|
314,049
|
$
|
81
|
0.10
|
%
|
||||||||||||
Investment Securities:
|
||||||||||||||||||||||||
U.S. Treasury Notes
|
9,911
|
59
|
2.36
|
%
|
27,423
|
89
|
1.29
|
%
|
||||||||||||||||
U.S. Government Agency SBA
|
7,151
|
14
|
0.78
|
%
|
9,167
|
24
|
1.05
|
%
|
||||||||||||||||
Municipals - Taxable
|
15,088
|
141
|
3.74
|
%
|
19,966
|
156
|
3.13
|
%
|
||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable (1)
|
49,616
|
503
|
4.06
|
%
|
49,452
|
525
|
4.24
|
%
|
||||||||||||||||
Mortgage-Backed Securities
|
708,322
|
2,937
|
1.66
|
%
|
430,145
|
2,567
|
2.39
|
%
|
||||||||||||||||
Other
|
46,511
|
132
|
1.14
|
%
|
25,477
|
53
|
0.83
|
%
|
||||||||||||||||
Total Investment Securities
|
836,599
|
3,786
|
1.81
|
%
|
561,630
|
3,414
|
2.43
|
%
|
||||||||||||||||
Loans & Leases: (2)
|
||||||||||||||||||||||||
Real Estate
|
2,169,270
|
25,354
|
4.64
|
%
|
1,952,892
|
24,193
|
4.93
|
%
|
||||||||||||||||
Home Equity Lines & Loans
|
32,112
|
360
|
4.45
|
%
|
37,815
|
423
|
4.45
|
%
|
||||||||||||||||
Agricultural
|
236,071
|
2,637
|
4.43
|
%
|
263,706
|
3,365
|
5.08
|
%
|
||||||||||||||||
Commercial
|
374,162
|
4,111
|
4.36
|
%
|
362,880
|
4,377
|
4.80
|
%
|
||||||||||||||||
Consumer
|
8,521
|
125
|
5.82
|
%
|
12,261
|
190
|
6.16
|
%
|
||||||||||||||||
Other (3)
|
146,661
|
2,138
|
5.78
|
%
|
348,093
|
2,415
|
2.76
|
%
|
||||||||||||||||
Leases
|
96,690
|
1,363
|
5.59
|
%
|
106,272
|
1,446
|
5.41
|
%
|
||||||||||||||||
Total Loans & Leases
|
3,063,487
|
36,088
|
4.67
|
%
|
3,083,919
|
36,409
|
4.70
|
%
|
||||||||||||||||
Total Earning Assets
|
4,756,245
|
$
|
40,202
|
3.35
|
%
|
3,959,598
|
$
|
39,904
|
4.01
|
%
|
||||||||||||||
Unrealized Gain on Securities Available-for-Sale
|
1,995
|
20,960
|
||||||||||||||||||||||
Allowance for Credit Losses
|
(60,268
|
)
|
(55,782
|
)
|
||||||||||||||||||||
Cash and Due From Banks
|
72,887
|
61,633
|
||||||||||||||||||||||
All Other Assets
|
264,724
|
244,056
|
||||||||||||||||||||||
Total Assets
|
$
|
5,035,583
|
$
|
4,230,465
|
||||||||||||||||||||
Liabilities & Shareholders’ Equity
|
||||||||||||||||||||||||
Interest Bearing Deposits:
|
||||||||||||||||||||||||
Interest Bearing DDA
|
$
|
1,068,707
|
$
|
293
|
0.11
|
%
|
$
|
824,587
|
$
|
383
|
0.18
|
%
|
||||||||||||
Savings and Money Market
|
1,385,430
|
346
|
0.10
|
%
|
1,176,238
|
594
|
0.20
|
%
|
||||||||||||||||
Time Deposits
|
399,246
|
290
|
0.29
|
%
|
468,072
|
1,034
|
0.88
|
%
|
||||||||||||||||
Total Interest Bearing Deposits
|
2,853,383
|
929
|
0.13
|
%
|
2,468,897
|
2,011
|
0.32
|
%
|
||||||||||||||||
Subordinated Debentures
|
10,310
|
78
|
3.00
|
%
|
10,310
|
83
|
3.20
|
%
|
||||||||||||||||
Total Interest Bearing Liabilities
|
2,863,693
|
$
|
1,007
|
0.14
|
%
|
2,479,207
|
$
|
2,094
|
0.34
|
%
|
||||||||||||||
Interest Rate Spread (4)
|
3.21
|
%
|
3.67
|
%
|
||||||||||||||||||||
Demand Deposits (Non-Interest Bearing)
|
1,655,738
|
1,279,142
|
||||||||||||||||||||||
All Other Liabilities
|
68,564
|
60,812
|
||||||||||||||||||||||
Total Liabilities
|
4,587,995
|
3,819,161
|
||||||||||||||||||||||
Shareholders’ Equity
|
447,588
|
411,304
|
||||||||||||||||||||||
Total Liabilities & Shareholders’ Equity
|
$
|
5,035,583
|
$
|
4,230,465
|
||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets (5)
|
39,195
|
3.27
|
%
|
37,810
|
3.80
|
%
|
||||||||||||||||||
Tax Equivalent Adjustment
|
(104
|
)
|
(111
|
)
|
||||||||||||||||||||
Net Interest Income
|
$
|
39,091
|
3.26
|
%
|
$
|
37,699
|
3.79
|
%
|
Nine Months Ended
Sept. 30, 2021
|
Nine Months Ended
Sept. 30, 2020
|
|||||||||||||||||||||||
Assets
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
Interest Bearing Deposits with Banks
|
$
|
620,757
|
$
|
595
|
0.13
|
%
|
$
|
286,049
|
$
|
1,093
|
0.51
|
%
|
||||||||||||
Investment Securities:
|
||||||||||||||||||||||||
U.S. Treasury Notes
|
12,071
|
212
|
2.35
|
%
|
19,897
|
267
|
1.79
|
%
|
||||||||||||||||
U.S. Government Agency SBA
|
7,590
|
41
|
0.72
|
%
|
9,799
|
94
|
1.28
|
%
|
||||||||||||||||
Municipals - Taxable
|
15,662
|
445
|
3.79
|
%
|
11,362
|
359
|
4.21
|
%
|
||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable (1)
|
52,816
|
1,562
|
3.94
|
%
|
52,741
|
1,587
|
4.01
|
%
|
||||||||||||||||
Mortgage-Backed Securities
|
738,454
|
9,396
|
1.70
|
%
|
445,336
|
8,432
|
2.52
|
%
|
||||||||||||||||
Other
|
45,970
|
687
|
1.99
|
%
|
10,747
|
64
|
0.79
|
%
|
||||||||||||||||
Total Investment Securities
|
872,563
|
12,343
|
1.89
|
%
|
549,882
|
10,803
|
2.62
|
%
|
||||||||||||||||
Loans & Leases: (2)
|
||||||||||||||||||||||||
Real Estate
|
2,131,071
|
75,041
|
4.71
|
%
|
1,885,455
|
71,031
|
5.03
|
%
|
||||||||||||||||
Home Equity Lines & Loans
|
32,417
|
1,083
|
4.47
|
%
|
39,162
|
1,447
|
4.94
|
%
|
||||||||||||||||
Agricultural
|
229,862
|
7,758
|
4.51
|
%
|
264,528
|
10,180
|
5.14
|
%
|
||||||||||||||||
Commercial
|
365,744
|
12,567
|
4.59
|
%
|
378,272
|
13,810
|
4.88
|
%
|
||||||||||||||||
Consumer
|
9,388
|
1,010
|
14.38
|
%
|
13,294
|
619
|
6.22
|
%
|
||||||||||||||||
Other (3)
|
194,295
|
8,245
|
5.67
|
%
|
209,653
|
3,521
|
2.24
|
%
|
||||||||||||||||
Leases
|
100,347
|
4,135
|
5.51
|
%
|
105,880
|
4,272
|
5.39
|
%
|
||||||||||||||||
Total Loans & Leases
|
3,063,124
|
109,839
|
4.79
|
%
|
2,896,244
|
104,880
|
4.84
|
%
|
||||||||||||||||
Total Earning Assets
|
4,556,444
|
$
|
122,777
|
3.60
|
%
|
3,732,175
|
$
|
116,776
|
4.18
|
%
|
||||||||||||||
Unrealized Gain on Securities Available-for-Sale
|
5,431
|
16,096
|
||||||||||||||||||||||
Allowance for Credit Losses
|
(59,971
|
)
|
(55,190
|
)
|
||||||||||||||||||||
Cash and Due From Banks
|
68,755
|
61,588
|
||||||||||||||||||||||
All Other Assets
|
255,847
|
238,898
|
||||||||||||||||||||||
Total Assets
|
$
|
4,826,506
|
$
|
3,993,567
|
||||||||||||||||||||
Liabilities & Shareholders’ Equity
|
||||||||||||||||||||||||
Interest Bearing Deposits:
|
||||||||||||||||||||||||
Interest Bearing DDA
|
$
|
1,002,267
|
$
|
869
|
0.12
|
%
|
$
|
761,437
|
$
|
1,342
|
0.24
|
%
|
||||||||||||
Savings and Money Market
|
1,336,826
|
1,136
|
0.11
|
%
|
1,091,672
|
2,280
|
0.28
|
%
|
||||||||||||||||
Time Deposits
|
408,730
|
1,195
|
0.39
|
%
|
503,319
|
3,991
|
1.06
|
%
|
||||||||||||||||
Total Interest Bearing Deposits
|
2,747,823
|
3,200
|
0.16
|
%
|
2,356,428
|
7,613
|
0.43
|
%
|
||||||||||||||||
Federal Home Loan Bank Advances
|
-
|
-
|
0.00
|
%
|
1
|
-
|
0.00
|
%
|
||||||||||||||||
Subordinated Debentures
|
10,310
|
236
|
3.06
|
%
|
10,310
|
296
|
3.83
|
%
|
||||||||||||||||
Total Interest Bearing Liabilities
|
2,758,133
|
$
|
3,436
|
0.17
|
%
|
2,366,739
|
$
|
7,909
|
0.45
|
%
|
||||||||||||||
Interest Rate Spread(4)
|
3.44
|
%
|
3.73
|
%
|
||||||||||||||||||||
Demand Deposits (Non-Interest Bearing)
|
1,567,089
|
1,169,333
|
||||||||||||||||||||||
All Other Liabilities
|
64,439
|
61,024
|
||||||||||||||||||||||
Total Liabilities
|
4,389,661
|
3,597,096
|
||||||||||||||||||||||
Shareholders’ Equity
|
436,845
|
396,471
|
||||||||||||||||||||||
Total Liabilities & Shareholders’ Equity
|
$
|
4,826,506
|
$
|
3,993,567
|
||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets (5)
|
119,341
|
3.50
|
%
|
108,867
|
3.90
|
%
|
||||||||||||||||||
Tax Equivalent Adjustment
|
(324
|
)
|
(327
|
)
|
||||||||||||||||||||
Net Interest Income
|
$
|
119,017
|
3.49
|
%
|
$
|
108,540
|
3.88
|
%
|
Three Months Ended
Sept. 30, 2021 compared to Sept. 30, 2020
|
Nine Months Ended
Sept. 30, 2021 compared to Sept. 30, 2020
|
|||||||||||||||||||||||
Interest Earning Assets
|
Volume
|
Rate
|
Net Chg.
|
Volume
|
Rate
|
Net Chg.
|
||||||||||||||||||
Interest Bearing Deposits with Banks
|
$
|
193
|
$
|
54
|
$
|
247
|
$
|
696
|
$
|
(1,194
|
)
|
$
|
(498
|
)
|
||||||||||
Investment Securities:
|
||||||||||||||||||||||||
U.S. Treasuries
|
(78
|
)
|
47
|
(30
|
)
|
(123
|
)
|
68
|
(55
|
)
|
||||||||||||||
U.S. Government Agency SBA
|
(14
|
)
|
4
|
(10
|
)
|
(31
|
)
|
(22
|
)
|
(53
|
)
|
|||||||||||||
Municipals - Taxable
|
(42
|
)
|
28
|
(15
|
)
|
117
|
(31
|
)
|
86
|
|||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable
|
2
|
(23
|
)
|
(21
|
)
|
2
|
(27
|
)
|
(25
|
)
|
||||||||||||||
Mortgage-Backed Securities
|
700
|
(330
|
)
|
370
|
1,922
|
(958
|
)
|
964
|
||||||||||||||||
Other
|
55
|
24
|
79
|
427
|
197
|
623
|
||||||||||||||||||
Total Investment Securities
|
623
|
(250
|
)
|
373
|
2,313
|
(773
|
)
|
1,540
|
||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||
Real Estate
|
2,490
|
(1,329
|
)
|
1,161
|
7,936
|
(3,926
|
)
|
4,010
|
||||||||||||||||
Home Equity Lines & Loans
|
(62
|
)
|
(0
|
)
|
(63
|
)
|
(198
|
)
|
(167
|
)
|
(364
|
)
|
||||||||||||
Agricultural
|
(576
|
)
|
(152
|
)
|
(728
|
)
|
1,035
|
(3,457
|
)
|
(2,422
|
)
|
|||||||||||||
Commercial
|
136
|
(403
|
)
|
(266
|
)
|
(481
|
)
|
(762
|
)
|
(1,243
|
)
|
|||||||||||||
Consumer
|
(54
|
)
|
(12
|
)
|
(65
|
)
|
(226
|
)
|
617
|
391
|
||||||||||||||
Other(1)
|
(1,915
|
)
|
1,638
|
(277
|
)
|
(277
|
)
|
5,002
|
4,724
|
|||||||||||||||
Leases
|
(131
|
)
|
48
|
(83
|
)
|
(230
|
)
|
92
|
(137
|
)
|
||||||||||||||
Total Loans & Leases
|
(113
|
)
|
(209
|
)
|
(321
|
)
|
7,559
|
(2,601
|
)
|
4,958
|
||||||||||||||
Total Earning Assets
|
703
|
(405
|
)
|
299
|
10,569
|
(4,568
|
)
|
6,001
|
||||||||||||||||
Interest Bearing Liabilities
|
||||||||||||||||||||||||
Interest Bearing Deposits:
|
||||||||||||||||||||||||
Interest Bearing DDA
|
231
|
(321
|
)
|
(90
|
)
|
782
|
(1,255
|
)
|
(473
|
)
|
||||||||||||||
Savings and Money Market
|
134
|
(382
|
)
|
(248
|
)
|
698
|
(1,842
|
)
|
(1,144
|
)
|
||||||||||||||
Time
|
(179
|
)
|
(565
|
)
|
(744
|
)
|
(954
|
)
|
(1,842
|
)
|
(2,796
|
)
|
||||||||||||
Total Interest Bearing Deposits
|
186
|
(1,268
|
)
|
(1,082
|
)
|
526
|
(4,939
|
)
|
(4,413
|
)
|
||||||||||||||
Subordinated Debentures
|
-
|
(5
|
)
|
(5
|
)
|
-
|
(60
|
)
|
(60
|
)
|
||||||||||||||
Total Interest Bearing Liabilities
|
186
|
(1,273
|
)
|
(1,087
|
)
|
526
|
(4,999
|
)
|
(4,473
|
)
|
||||||||||||||
Total Change on a Tax Equivalent Basis
|
$
|
517
|
$
|
868
|
$
|
1,386
|
$
|
10,043
|
$
|
431
|
$
|
10,474
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Balance at Beginning of Period
|
$
|
60,229
|
$
|
55,058
|
$
|
58,862
|
$
|
55,012
|
||||||||
Charge-Offs
|
(17
|
)
|
(25
|
)
|
(33
|
)
|
(487
|
)
|
||||||||
Recoveries
|
91
|
65
|
224
|
273
|
||||||||||||
Provision
|
-
|
1,700
|
1,250
|
2,000
|
||||||||||||
Balance at End of Period
|
$
|
60,303
|
$
|
56,798
|
$
|
60,303
|
$
|
56,798
|
September 30, 2021
|
Commercial Real Estate
|
Agricultural Real Estate
|
Real Estate Construction
|
Residential 1st Mortgages
|
Home Equity Lines & Loans
|
Agricultural
|
Commercial
|
Consumer & Other
|
Leases
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- December 31, 2020
|
$
|
27,679
|
$
|
8,633
|
$
|
1,643
|
$
|
960
|
$
|
2,024
|
$
|
4,814
|
$
|
9,961
|
$
|
333
|
$
|
1,731
|
$
|
1,084
|
$
|
58,862
|
||||||||||||||||||||||
Charge-Offs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(33
|
)
|
-
|
-
|
(33
|
)
|
|||||||||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
74
|
17
|
29
|
83
|
21
|
-
|
-
|
224
|
|||||||||||||||||||||||||||||||||
Provision
|
1,200
|
794
|
(210
|
)
|
(70
|
)
|
(129
|
)
|
(238
|
)
|
738
|
(23
|
)
|
(872
|
)
|
60
|
1,250
|
|||||||||||||||||||||||||||
Ending Balance- September 30, 2021
|
$
|
28,879
|
$
|
9,427
|
$
|
1,433
|
$
|
964
|
$
|
1,912
|
$
|
4,605
|
$
|
10,782
|
$
|
298
|
$
|
859
|
$
|
1,144
|
$
|
60,303
|
||||||||||||||||||||||
Third Quarter Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- June 30, 2021
|
$
|
28,890
|
$
|
9,107
|
$
|
1,405
|
$
|
957
|
$
|
1,899
|
$
|
4,552
|
$
|
9,920
|
$
|
281
|
$
|
1,639
|
$
|
1,579
|
$
|
60,229
|
||||||||||||||||||||||
Charge-Offs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(17
|
)
|
-
|
-
|
(17
|
)
|
|||||||||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
15
|
6
|
24
|
38
|
8
|
-
|
-
|
91
|
|||||||||||||||||||||||||||||||||
Provision
|
(11
|
)
|
320
|
28
|
(8
|
)
|
7
|
29
|
824
|
26
|
(780
|
)
|
(435
|
)
|
-
|
|||||||||||||||||||||||||||||
Ending Balance- September 30, 2021
|
$
|
28,879
|
$
|
9,427
|
$
|
1,433
|
$
|
964
|
$
|
1,912
|
$
|
4,605
|
$
|
10,782
|
$
|
298
|
$
|
859
|
$
|
1,144
|
$
|
60,303
|
(in thousands)
|
September 30, 2021
|
December 31, 2020
|
September 30, 2020
|
|||||||||||||||||||||
Commercial Real Estate
|
$
|
1,126,230
|
35.7
|
%
|
$
|
971,326
|
31.2
|
%
|
$
|
887,999
|
28.4
|
%
|
||||||||||||
Agricultural Real Estate
|
656,337
|
20.8
|
%
|
643,014
|
20.7
|
%
|
639,172
|
20.4
|
%
|
|||||||||||||||
Real Estate Construction
|
178,451
|
5.7
|
%
|
185,741
|
6.0
|
%
|
186,623
|
6.0
|
%
|
|||||||||||||||
Residential 1st Mortgages
|
309,728
|
9.8
|
%
|
299,379
|
9.6
|
%
|
293,489
|
9.4
|
%
|
|||||||||||||||
Home Equity Lines & Loans
|
31,664
|
1.0
|
%
|
34,239
|
1.1
|
%
|
35,875
|
1.1
|
%
|
|||||||||||||||
Agricultural
|
235,085
|
7.5
|
%
|
264,372
|
8.5
|
%
|
252,031
|
8.1
|
%
|
|||||||||||||||
Commercial
|
394,326
|
12.5
|
%
|
374,816
|
12.0
|
%
|
367,052
|
11.7
|
%
|
|||||||||||||||
Consumer & Other (1)
|
129,665
|
4.1
|
%
|
235,529
|
7.6
|
%
|
359,697
|
11.5
|
%
|
|||||||||||||||
Leases
|
90,022
|
2.9
|
%
|
103,117
|
3.3
|
%
|
105,511
|
3.4
|
%
|
|||||||||||||||
Total Gross Loans & Leases
|
3,151,508
|
100.0
|
%
|
3,111,533
|
100.0
|
%
|
3,127,449
|
100.0
|
%
|
|||||||||||||||
Less: Unearned Income
|
11,707
|
11,941
|
15,518
|
|||||||||||||||||||||
Subtotal
|
3,139,801
|
3,099,592
|
3,111,931
|
|||||||||||||||||||||
Less: Allowance for Credit Losses
|
60,303
|
58,862
|
56,798
|
|||||||||||||||||||||
Net Loans & Leases
|
$
|
3,079,498
|
$
|
3,040,730
|
$
|
3,055,133
|
(in thousands)
|
September 30, 2021
|
December 31, 2020
|
September 30, 2020
|
|||||||||
Non-Performing Loans & Leases
|
$
|
516
|
$
|
495
|
$
|
498
|
||||||
Other Real Estate
|
873
|
873
|
873
|
|||||||||
Total Non-Performing Assets
|
$
|
1,389
|
$
|
1,368
|
$
|
1,371
|
||||||
Non-Performing Loans & Leases
|
||||||||||||
as a % of Total Loans & Leases
|
0.02
|
%
|
0.02
|
%
|
0.02
|
%
|
||||||
Restructured Loans & Leases (Performing)
|
$
|
7,631
|
$
|
7,868
|
$
|
7,890
|
• |
The State of California experienced drought conditions from 2013 through most of 2016. After 2016, reasonable levels of rain and snow alleviated drought conditions in our primary service area, but the winter of 2020-2021 was once again
dry. Despite this, the availability of water in our primary service area was not an issue for the 2021 growing season. However, the weather patterns over the past eight years further reinforce the fact that the long-term risks associated
with the availability of water are significant.
|
• |
While tremendous strides have been made in fighting the COVID-19 virus, particularly with the development of a vaccine, the lingering effects of COVID-19 are still with us, and it is impossible to predict the ultimate impact on
classified and non-performing loans and leases (see “Part I, ITEM 2. COVID-19 (Coronavirus) Disclosure”).
|
• |
Demand and interest-bearing transaction accounts increased $619 million or 28.8% since September 30, 2020.
|
• |
Savings and money market accounts have increased $201 million or 16.7% since September 30, 2020.
|
• |
Time deposit accounts have decreased $66.4 million or 14.4% since September 30, 2020.
|
(in thousands)
|
Actual
|
Current Regulatory
Capital Requirements
|
Well Capitalized
Under Prompt
Corrective Action
|
|||||||||||||||||||||
The Company:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of September 30, 2021
|
||||||||||||||||||||||||
Total Capital Ratio
|
$
|
497,797
|
13.28
|
%
|
$
|
299,941
|
8.0
|
%
|
N/A
|
N/A
|
||||||||||||||
Common Equity Tier 1 Capital Ratio
|
$
|
440,761
|
11.76
|
%
|
$
|
168,717
|
4.5
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier 1 Capital Ratio
|
$
|
450,761
|
12.02
|
%
|
$
|
224,956
|
6.0
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier 1 Leverage Ratio
|
$
|
450,761
|
8.97
|
%
|
$
|
200,908
|
4.0
|
%
|
N/A
|
N/A
|
||||||||||||||
(in thousands)
|
Actual
|
Current Regulatory
Capital Requirements
|
Well Capitalized
Under Prompt
Corrective Action
|
|||||||||||||||||||||
The Bank:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of September 30, 2021
|
||||||||||||||||||||||||
Total Capital Ratio
|
$
|
497,783
|
13.28
|
%
|
$
|
299,906
|
8.0
|
%
|
$
|
374,883
|
10.0
|
%
|
||||||||||||
Common Equity Tier 1 Capital Ratio
|
$
|
450,753
|
12.02
|
%
|
$
|
168,697
|
4.5
|
%
|
$
|
243,674
|
6.5
|
%
|
||||||||||||
Tier 1 Capital Ratio
|
$
|
450,753
|
12.02
|
%
|
$
|
224,930
|
6.0
|
%
|
$
|
299,906
|
8.0
|
%
|
||||||||||||
Tier 1 Leverage Ratio
|
$
|
450,753
|
8.98
|
%
|
$
|
200,850
|
4.0
|
%
|
$
|
251,063
|
5.0
|
%
|
(in thousands)
|
September 30, 2021
|
December 31, 2020
|
September 30, 2020
|
|||||||||
Commitments to Extend Credit
|
$
|
1,058,760
|
$
|
1,040,844
|
$
|
969,258
|
||||||
Letters of Credit
|
19,391
|
18,846
|
19,816
|
|||||||||
Performance Guarantees Under Interest Rate Swap Contracts Entered Into Between Our Borrowing Customers and Third Parties
|
1,808
|
2,786
|
3,797
|
• |
general economic and business conditions affecting the key service areas of the Company;
|
• |
credit quality trends (including trends in collateral values, delinquencies and non-performing loans & leases);
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• |
loan & lease volumes, growth rates and concentrations;
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• |
loan & lease portfolio seasoning;
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• |
specific industry and crop conditions;
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• |
recent loss experience; and
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• |
duration of the current business cycle.
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Exhibit No.
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Description
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Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Certifications of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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101.INS
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Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
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101.SCH
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Inline XBRL Taxonomy Extension Schema Document.
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101.CAL
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Inline XBRL Taxonomy Extension Calculation Linkbase Document.
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101.DEF
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Inline XBRL Taxonomy Extension Definition Linkbase Document.
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101.LAB
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Inline XBRL Taxonomy Extension Label Linkbase Document.
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101.PRE
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Inline XBRL Taxonomy Extension Presentation Linkbase Document.
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104
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Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
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FARMERS & MERCHANTS BANCORP
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||
Date: November 8, 2021
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/s/ Kent A. Steinwert
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Kent A. Steinwert
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||
Chairman, President
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||
& Chief Executive Officer
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(Principal Executive Officer)
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Date: November 8, 2021
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/s/ Stephen W. Haley
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Stephen W. Haley
|
||
Executive Vice President and
|
||
Chief Financial Officer
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(Principal Financial & Accounting Officer)
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1. |
I have reviewed this quarterly report on Form 10-Q of Farmers & Merchants Bancorp;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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/s/ Kent A. Steinwert
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||
|
||
Kent A. Steinwert
|
||
Chairman, President & Chief Executive Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Farmers & Merchants Bancorp;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
/s/ Stephen W. Haley
|
||
|
||
Stephen W. Haley
|
||
Executive Vice President & Chief Financial Officer
|
1. |
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. § 78m or 78o(d)); and
|
2. |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Kent A. Steinwert
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|
|
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Kent A. Steinwert
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Chairman, President & Chief Executive Officer
|
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/s/ Stephen W. Haley
|
|
|
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Stephen W. Haley
|
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Executive Vice President & Chief Financial Officer
|
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|---|
Investment Securities: | |||
Held-to-Maturity at fair value | $ 540,308 | $ 70,049 | $ 71,055 |
Shareholders' Equity | |||
Preferred Stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 7,500,000 | 7,500,000 | 7,500,000 |
Common Stock, shares issued (in shares) | 789,646 | 789,646 | 793,556 |
Common Stock, shares outstanding (in shares) | 789,646 | 789,646 | 793,556 |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Interest Income | ||||
Interest and Fees on Loans & Leases | $ 36,088 | $ 36,409 | $ 109,839 | $ 104,880 |
Interest on Deposits with Banks | 328 | 81 | 595 | 1,093 |
Interest on Investment Securities: | ||||
Taxable | 3,283 | 2,889 | 10,781 | 9,216 |
Exempt from Federal Tax | 399 | 414 | 1,238 | 1,260 |
Total Interest Income | 40,098 | 39,793 | 122,453 | 116,449 |
Interest Expense | ||||
Deposits | 929 | 2,011 | 3,200 | 7,613 |
Subordinated Debentures | 78 | 83 | 236 | 296 |
Total Interest Expense | 1,007 | 2,094 | 3,436 | 7,909 |
Net Interest Income | 39,091 | 37,699 | 119,017 | 108,540 |
Provision for Credit Losses | 0 | 1,700 | 1,250 | 2,000 |
Net Interest Income After Provision for Loan Losses | 39,091 | 35,999 | 117,767 | 106,540 |
Non-Interest Income | ||||
Service Charges on Deposit Accounts | 808 | 654 | 2,125 | 1,948 |
Net Gain on Sale of Investment Securities | 0 | 0 | 2,554 | 13 |
Increase in Cash Surrender Value of Bank Owned Life Insurance | 549 | 528 | 1,616 | 1,557 |
Debit Card and ATM Fees | 1,788 | 1,465 | 5,173 | 4,044 |
Net Gain on Deferred Compensation Investments | 615 | 1,022 | 1,828 | 883 |
Other | 1,100 | 870 | 3,641 | 2,535 |
Total Non-Interest Income | 4,860 | 4,539 | 16,937 | 10,980 |
Non-Interest Expense | ||||
Salaries and Employee Benefits | 14,453 | 13,606 | 47,375 | 42,269 |
Net Gain on Deferred Compensation Investments | 615 | 1,022 | 1,828 | 883 |
Occupancy | 1,145 | 1,186 | 3,554 | 3,429 |
Equipment | 1,251 | 1,272 | 3,688 | 3,726 |
Marketing | 63 | 245 | 669 | 515 |
Legal | 85 | 23 | 485 | 100 |
FDIC Insurance | 317 | 249 | 902 | 256 |
Other | 2,656 | 3,180 | 9,231 | 9,182 |
Total Non-Interest Expense | 20,585 | 20,783 | 67,732 | 60,360 |
Income Before Provision for Income Taxes | 23,366 | 19,755 | 66,972 | 57,160 |
Provision for Income Taxes | 5,864 | 4,945 | 16,604 | 13,919 |
Net Income | $ 17,502 | $ 14,810 | $ 50,368 | $ 43,241 |
Basic Earnings Per Common Share (in dollars per share) | $ 22.16 | $ 18.66 | $ 63.79 | $ 54.49 |
Diluted Earnings Per Common Share (in dollars per share) | $ 22.16 | $ 18.66 | $ 63.79 | $ 54.49 |
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash Dividends Declared per Share of Common Stock (in dollars per share) | $ 7.50 | $ 7.25 |
Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies |
1. Significant Accounting Policies
Farmers & Merchants Bancorp (the “Company”) was organized March 10, 1999. Primary operations are related to traditional banking
activities through its subsidiary Farmers & Merchants Bank of Central California (the “Bank”) which was established in 1916. The Bank’s wholly owned subsidiaries include Farmers & Merchants Investment Corporation and Farmers/Merchants Corp.
Farmers & Merchants Investment Corporation has been dormant since 1991. Farmers/Merchants Corp. acts as trustee on deeds of trust originated by the Bank.
The Company’s other wholly owned subsidiaries include F & M Bancorp, Inc. and FMCB Statutory Trust I. F & M Bancorp, Inc. was
created in March 2002 to protect the name F & M Bank. During 2002, the Company completed a fictitious name filing in California to begin using the streamlined name “F & M Bank” as part of a larger effort to enhance the Company’s image and
build brand name recognition. In December 2003, the Company formed a wholly owned subsidiary, FMCB Statutory Trust I, for the sole purpose of issuing Trust Preferred Securities and related subordinated debentures, in accordance with generally
accepted accounting principles in the United States (“U.S. GAAP”). FMCB Statutory Trust I is a non-consolidated subsidiary.
The accounting and reporting policies of the Company conform to U.S. GAAP and prevailing practice within the banking industry. The
following is a summary of the significant accounting and reporting policies used in preparing the consolidated financial statements.
Basis of Presentation
The accompanying consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally
accepted in the United States of America for financial information.
The accompanying consolidated financial statements include the accounts of the Company and the Company’s wholly owned subsidiaries, F &
M Bancorp, Inc. and the Bank, along with the Bank’s wholly owned subsidiaries, Farmers & Merchants Investment Corporation and Farmers/Merchants Corp. Significant inter-company transactions have been eliminated in consolidation.
The unaudited consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements
do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K, as amended (“2020 Annual Report on Form 10-K”), for the year ended December 31, 2020 and, accordingly,
should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included.
Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions.
These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these
estimates.
Accounting Guidance Pending Adoption at
September 30, 2021
The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect
on the Company’s financial position or results of operations.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments. The ASU will require the earlier recognition of credit losses on loans and other financial instruments based on an expected loss model,
replacing the incurred loss model that is currently in use. Under the new guidance, an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and
reasonable and supportable forecasts. The expected loss model will apply to loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. The impairment model for
available-for-sale debt securities will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. During 2019, the Company completed an assessment of its current expected credit losses (CECL) data and system needs, and engaged a third-party vendor to assist in developing a CECL model. The Company, in conjunction with this vendor, researched and analyzed modeling standards, loan segmentation, as well as potential
external inputs to supplement our historical loss history. Model validation began in the third quarter of 2019, enabling the Company to complete parallel runs using data beginning with the second quarter of 2019.
The new guidance had been effective on January 1, 2020. However, the Coronavirus Aid, Relief and Economic
Security Act (“CARES Act”) and H.R. 133, resulted in federal banking regulators issuing an interim final rule allowing banks the option of delaying
the implementation of CECL until January 1, 2022. In addition, the national banking regulators have issued a joint statement allowing financial institutions to mitigate the effects of CECL in their regulatory capital calculations for up to two years. The Company has elected to delay CECL adoption, but continues to run its CECL model quarterly to accumulate data for the ultimate implementation. Management is currently
evaluating the impact that the standard will have on its consolidated financial statements.
Cash and Cash Equivalents
For purposes of the Consolidated Statements of Cash Flows, the
Company has defined cash and cash equivalents as those amounts included in the balance sheet captions Cash and Due from Banks, Interest-Bearing Deposits with Banks, and Federal Funds Sold, which have original maturity dates of three months or less. For these instruments, the carrying amount is a reasonable estimate of fair value.
Investment Securities
Investment securities are classified at the time of purchase as held-to-maturity (“HTM”) if it is management’s intent and the Company has
the ability to hold the securities until maturity. These securities are carried at cost, adjusted for amortization of premium to earliest call date and accretion of discount using a level yield of interest over the estimated remaining period until
maturity. Losses, reflecting a decline in value judged by the Company to be other than temporary, are recognized in the period in which they occur.
Securities are classified as available-for-sale (“AFS”) if it is management’s intent, at the time of purchase, to hold the securities for
an indefinite period of time and/or to use the securities as part of the Company’s asset/liability management strategy. These securities are reported at fair value with aggregate unrealized gains or losses excluded from income and included as a
separate component of shareholders’ equity, net of related income taxes. Fair values are based on quoted market prices or broker/dealer price quotations on a specific identification basis. Gains or losses on the sale of these securities are computed
using the specific identification method.
Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of
transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are
amortized or accreted using the effective interest method over the life of the security as an adjustment of yield. Unrealized holding gains or losses that remain in accumulated other comprehensive income are amortized or accreted over the remaining
life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount.
Trading securities, if any, are acquired for short-term appreciation and are recorded in a trading portfolio and are carried at fair value,
with unrealized gains and losses recorded in non-interest income.
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when
economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer.
Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or
requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement; and (2) OTTI related to other factors, which
is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis.
Equity securities are carried at fair value with changes in market value recognized through earnings.
Loans & Leases
Loans & leases are reported at the principal amount outstanding net of unearned discounts and deferred loan & lease fees and costs.
Interest income on loans & leases is accrued daily on the outstanding balances using the simple interest method. Loan & lease origination fees are deferred and recognized over the contractual life of the loan or lease as an adjustment to the
yield. Loans & leases are placed on non-accrual status when the collection of principal or interest is in doubt or when they become past due for 90
days or more unless they are both well-secured and in the process of collection. For this purpose, a loan or lease is considered well-secured if it is collateralized by property having a net realizable value in excess of the amount of the loan or
lease or is guaranteed by a financially capable party. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and charged against current income; thereafter, interest income is recognized only as
it is collected in cash. Additionally, cash would be applied to principal if all principal was not expected to be collected. Loans & leases placed on non-accrual status are returned to accrual status when the loans or leases are paid current as
to principal and interest and future payments are expected to be made in accordance with the contractual terms of the loan or lease.
A loan or lease is considered impaired when, based on current
information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Impaired loans & leases are either: (1)
non-accrual loans & leases; or (2) restructured loans & leases that are still accruing interest. Loans or leases determined to be impaired are individually evaluated for impairment. When a loan or lease is impaired, the Company measures
impairment based on the present value of expected future cash flows discounted at the loan or lease’s effective interest rate, except that as a practical expedient, it may measure impairment based on a loan or lease’s observable market price, or
the fair value of the collateral if the loan or lease is collateral dependent. A loan or lease is collateral dependent if the repayment of the loan or lease is expected to be provided solely by the underlying collateral.
A restructuring of a loan or lease constitutes a troubled debt restructuring (TDR) if the Company for economic or legal reasons related to
the borrower’s (the term “borrower” is used herein to describe a customer who has entered into either a loan or lease transaction) financial difficulties grants a more than insignificant concession to the borrower that it would not otherwise
consider. Restructured loans & leases typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. If the restructured loan or lease was current on all payments at the
time of restructure and management reasonably expects the borrower will continue to perform after the restructure, management may keep the loan or lease on accrual. Loans & leases that are on non-accrual status at the time they become TDR, remain
on non-accrual status until the borrower demonstrates a sustained period of performance, which the Company generally believes to be
consecutive months of payments, or equivalent. A loan or lease can be removed from TDR status if it was restructured at a market rate in a prior calendar year and is currently in compliance with its modified terms. However, these loans or leases
continue to be classified as impaired and are individually evaluated for impairment as described above.Generally, the Company will not restructure loans or leases for borrowers unless: (1) the existing loan or lease is brought current as to
principal and interest payments; and (2) the restructured loan or lease can be underwritten to reasonable underwriting standards. If these standards are not met other actions will be pursued (e.g., foreclosure) to collect outstanding loan or lease
amounts. After restructure, a determination is made whether the loan or lease will be kept on accrual status based upon the underwriting and historical performance of the restructured credit.
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law by
Congress and was amended and extended by the Consolidated Appropriations Act of 2021 (“H.R. 133”) on December 21, 2020. The CARES Act and H.R. 133 provide financial institutions, under specific circumstances, the opportunity to
temporarily suspend certain requirements under generally accepted accounting principles related to modifications for a limited period of time to account for the effects of COVID-19. In March 2020, a joint statement was issued by federal and state regulatory agencies, after consultation
with the FASB, to clarify that short-term loan modifications are not TDRs if made on a good-faith basis in response to COVID-19 to borrowers who
were current prior to any relief. Under this guidance, six months is provided as an example of short-term, and current is defined as less than 30 days past due at the time the modification program is implemented. The guidance also provides that these modified loans generally will not be classified as
non-accrual during the term of the modification. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act and H.R. 133 and the impact of COVID-19 on the Company.
Allowance for Credit Losses
The allowance for credit losses is an estimate of probable incurred credit losses inherent in the Company’s loan & lease portfolio as of the balance sheet date. The allowance is established through a provision for credit losses, which is charged to expense. Additions to the allowance are
expected to maintain the adequacy of the total allowance after credit losses and loan & lease growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded
as a recovery to the allowance. The overall allowance consists of three primary components: specific reserves related to impaired loans
& leases; general reserves for inherent losses related to loans & leases that are not impaired; and an unallocated component that takes into account the imprecision in estimating and allocating allowance balances associated with macro
factors.
The determination of the general reserve for loans & leases that are collectively evaluated for impairment is based on estimates made
by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, qualitative factors that include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan & lease portfolio, and probable losses
inherent in the portfolio taken as a whole.
The Company maintains a separate allowance for each portfolio segment (loan & lease type). These portfolio segments include: (1)
commercial real estate; (2) agricultural real estate; (3) real estate construction (including land and development loans); (4) residential 1st mortgages; (5) home equity lines and loans; (6) agricultural; (7) commercial; (8) consumer and
other; and (9) equipment leases. The allowance for credit losses attributable to each portfolio segment, which includes both individually evaluated impaired loans & leases and loans & leases that are collectively evaluated for impairment, is
combined to determine the Company’s overall allowance, which is included on the consolidated balance sheet.
The Company assigns a risk rating to all loans & leases and periodically performs detailed reviews of all such loans & leases over
a certain threshold to identify credit risks and assess overall collectability. For smaller balance loans & leases, such as consumer and residential real estate, a credit grade is established at inception, and then updated only when the loan or
lease becomes contractually delinquent or when the borrower requests a modification. For larger balance loans, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate
and the fair values of collateral securing these loans & leases. These credit quality indicators are used to assign a risk rating to each individual loan or lease. These risk ratings are also subject to examination by independent specialists
engaged by the Company. The risk ratings can be grouped into five major categories, defined as follows:
Pass and Watch – A pass loan or lease is a strong credit with no existing or known potential weaknesses deserving of management’s close attention. This category also includes “Watch” loans, which is a loan with an emerging weakness in either the individual credit or industry that
requires additional attention. A credit may also be classified Watch if cash flows have not yet stabilized, such as in the case of a development project. Included in this category are all loans in which the Bank entered into a CARES Act modification.
Special Mention – A special mention loan or lease has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company’s credit position at some future date. Special mention loans & leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.
Substandard – A substandard loan or lease is not adequately protected by the current financial condition and paying capacity of the
borrower or the value of the collateral pledged, if any. Loans or leases classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well-defined weaknesses include a project’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project’s failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
Doubtful – Loans or leases classified doubtful have all the weaknesses inherent in those classified as substandard with the added
characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, highly questionable or improbable.
Loss – Loans or leases classified as loss are considered uncollectible. Once a loan or lease becomes delinquent and repayment becomes
questionable, the Company will address collateral shortfalls with the borrower and attempt to obtain additional collateral. If this is not forthcoming and payment in full is unlikely, the Company will estimate its probable loss and immediately
charge-off some or all of the balance.
The general reserve component of the allowance for credit losses also consists of reserve factors that are based on management’s assessment of the following for each portfolio segment: (1) inherent credit risk; (2) historical losses; and (3) other qualitative factors. These reserve
factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below:
Commercial Real Estate – Commercial real estate mortgage loans are generally considered to possess a higher inherent risk of loss than the
Company’s commercial, agricultural and consumer loan types. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the
credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations.
Real Estate Construction – Real estate construction loans, including land loans, are generally considered to possess a higher inherent risk
of loss than the Company’s commercial, agricultural and consumer loan types. A major risk arises from the necessity to complete projects within specified cost and time lines. Trends in the construction industry significantly impact the credit quality
of these loans, as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects.
Commercial – These loans are generally considered to possess a moderate inherent risk of loss because they are shorter-term; typically made
to relationship customers; generally underwritten to existing cash flows of operating businesses; and may be collateralized by fixed assets, inventory and/or accounts receivable. Debt coverage is provided by business cash flows and economic trends
influenced by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans.
Agricultural Real Estate and Agricultural – These loans are generally considered to possess a moderate inherent risk of loss since they are
typically made to relationship customers and are secured by crop production, livestock and related real estate. These loans are vulnerable to two
risk factors that are largely outside the control of Company and borrowers: commodity prices and weather conditions.
Leases – Equipment leases are generally considered to possess a moderate inherent risk of loss. As lessor, the Company is subject to both
the credit risk of the borrower and the residual value risk of the equipment. Credit risks are underwritten using the same credit criteria the Company would use when making an equipment term loan. Residual value risk is managed through the use of
qualified, independent appraisers that establish the residual values the Company uses in structuring a lease.
Residential 1st Mortgages and Home Equity Lines and Loans – These loans are generally considered to possess a lower inherent risk of loss.
The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s
ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating.
Consumer & Other – A consumer installment loan portfolio is usually comprised of a large number of small loans scheduled to be
amortized over a specific period. Most installment loans are made for consumer purchases. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic
trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating.
At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the
portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s and Bank’s regulators, including the Federal Reserve Board (“FRB”), the California Department of Financial Protection and Innovation (“DFPI”) and the Federal Deposit Insurance Corporation (“FDIC”),
as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations.
Acquired Loans
Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit
discounts, which reflect estimates of credit losses, expected to be incurred over the life of the loan, are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date.
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures
The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates anticipated losses using historical
data and utilization assumptions. The allowance for off-balance-sheet commitments is included in Interest Payable and Other Liabilities on the Company’s Consolidated Balance Sheet.
Right of Use Lease Asset & Lease Liability
The Company leases retail space and office space under
operating leases. Most leases require the Company to pay real estate taxes, maintenance, insurance and other similar costs in addition to the base rent. Certain leases also contain lease incentives, such as tenant improvement allowances and rent
abatement. Variable lease payments are recognized as lease expense as they are incurred. We record an operating lease right of use (ROU) asset and an operating lease liability (lease liability) for operating leases with a lease term greater than 12 months. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated statement of financial
condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement
date based on the present value of lease payments over the lease term. Accordingly, ROU assets are reduced by tenant improvement allowances from landlords plus any prepaid rent. We do not separate lease and non-lease components of contracts. As
most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Many of our
leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule, which are factored into our determination of lease payments when appropriate. A
majority of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. The
ROU asset and lease liability terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Revenue from Contracts with Customers
The Company records revenue from contracts with customers in
accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer,
identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation.
Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods.
The Company’s primary sources of revenue are derived from
interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The
Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was
not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity.
Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is limited judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.
Premises and Equipment
Premises, equipment, and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation is
computed principally by the straight-line method over the estimated useful lives of the assets. Estimated useful lives of buildings range from 30
to 40 years, and for furniture and equipment from
to seven years. Leasehold improvements are amortized over the lesser of the terms of the
respective leases, or their useful lives, which are generally to ten years. Remodeling and capital improvements are capitalized while maintenance and repairs are charged directly to occupancy expense.Other Real Estate
Other real estate, which is included in other assets, is expected to be sold and is comprised of properties no longer utilized for business
operations and property acquired through foreclosure in satisfaction of indebtedness. These properties are recorded at fair value less estimated selling costs upon acquisition. Revised estimates to the fair value less cost to sell are reported as
adjustments to the carrying amount of the asset, provided that such adjusted value is not in excess of the carrying amount at acquisition. Initial losses on properties acquired through full or partial satisfaction of debt are treated as credit losses
and charged to the allowance for credit losses at the time of acquisition. Subsequent declines in value from the recorded amounts, routine holding costs, and gains or losses upon disposition, if any, are included in non-interest expense as incurred.
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law by Congress and was amended and extended by the
Consolidated Appropriations Act of 2021 (“H.R. 133”) on December 21, 2020. The CARES Act and H.R. 133 restrict the ability of financial institutions to exercise their foreclosure rights on residential and multi-family properties backed by federally
guaranteed mortgage loans. The State of California went further and temporarily suspended all residential and commercial foreclosures through September 30, 2021, but these guidelines have now expired. The Company continues to work with its borrowers
when they make requests to defer payments on their mortgage loans. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act and H.R. 133 and the impact of COVID-19 on the Company.
Income Taxes
The Company uses the liability method of accounting for income taxes. This method results in the recognition of deferred tax assets and
liabilities that are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and
liabilities are adjusted through the provision for income taxes. The deferred provision for income taxes is the result of the net change in the deferred tax asset and deferred tax liability balances during the year. This amount combined with the
current taxes payable or refundable results in the income tax expense for the current year.
The Company follows the standards set forth in the “Income Taxes” topic of the Financial Accounting Standards Board (“FASB”) Accounting
Standard Codification (“ASC”) 740, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard prescribes a recognition threshold and measurement standard for the financial
statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and
transition.
The Company accounts for leases with Investment Tax Credits (ITC) under the deferred method as established in ASC 740-10. ITC are viewed
and accounted for as a reduction of the cost of the related assets and presented as deferred income on the Company’s financial statement.
The Company accounts for its interest in Low Income Housing Tax Credits (LIHTC) using the cost method as established in ASC 323-740. As an
investor, the Company obtains income tax credits and deductions from the operating losses of these tax credit entities. The income tax credits and deductions are allocated to the investors based on their ownership percentages and are recorded as a
reduction of income tax expense (or an increase to income tax benefit) and a reduction of federal income taxes payable.
When tax returns are filed, it is highly certain that some
positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax
position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals
or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50
percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that
exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities
upon examination.
For the three and nine-month periods ended September 30, 2021 and 2020, the Company had no material uncertain tax positions and recognized no interest or penalties. The Company’s policy is to recognize interest and penalties related to income taxes in the provision for income taxes in the Consolidated Statements of Income.
Basic and Diluted Earnings Per Common Share
The Company’s common stock is not traded on any exchange.
However, trades are reported on the OTCQX under the symbol “FMCB”. The shares are primarily held by local residents and are not actively traded. Basic earnings per common share amounts are computed by dividing net income by the weighted average
number of common shares outstanding for the period. There are no common stock equivalent shares. Therefore, diluted and basic earnings per common share are the same. See Note 9 –
“Dividends and Basic and Diluted Earnings Per Common Share” for additional information.
Segment Reporting
The “Segment Reporting” topic of the FASB ASC 280 requires that public companies report certain information about operating segments. It also requires that public companies report certain information about
their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a community bank, which offers a wide array of products and services to its customers. Pursuant to its banking
strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized around discernible lines of business and prefers to work as an integrated unit
to customize solutions for its customers, with business line emphasis and product offerings changing over time as needs and demands change.
Comprehensive Income
The “Comprehensive Income” topic of the FASB ASC 220 establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Other comprehensive income refers to
revenues, expenses, gains, and losses that U.S. GAAP recognize as changes in value to an enterprise but are excluded from net income. For the Company, comprehensive income includes net income, changes in fair value of its available-for-sale
investment securities and amortization of net unrealized gains or losses on securities transferred from available-for-sale to held-to-maturity, net of related taxes.
Goodwill and Other Intangible Assets
Goodwill is determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling
interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill that arises from a business combination is periodically evaluated for impairment at the reporting unit level, at
least annually. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible (“CDI”)
represents the estimated future benefit of deposits related to an acquisition and is booked separately from the related deposits and evaluated periodically for impairment. The CDI asset is amortized on a straight-line method over its estimated useful
life of ten years.
At September 30, 2021, the future estimated amortization expense for the CDI arising from our past
acquisitions is as follows:
We make a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit where goodwill is assigned
is less than its carrying amount. If we conclude that it is more likely than not that the fair value is more than its carrying amount, no impairment is recorded. Goodwill is tested for impairment on an interim basis if circumstances change or an
event occurs between annual tests that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The qualitative assessment includes adverse events or circumstances identified that could negatively affect the
reporting units’ fair value as well as positive and mitigating events. Such indicators may include, among others, a significant change in legal factors or in the general business climate, significant change in our stock price and market
capitalization, unanticipated competition, and an action or assessment by a regulator. If the fair value of a reporting unit is less than its carrying amount, an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.
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Risks and Uncertainties |
9 Months Ended |
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Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties |
2. Risks and Uncertainties
The COVID-19 pandemic has affected all of us. Designated as
an “essential business”, the Company’s subsidiary, Farmers & Merchants Bank of Central California, has kept all branches open and maintained regular business hours during these difficult times. Our staffing levels have remained stable during
the COVID-19 crisis. We have taken what we believe are prudent measures to protect our employees and customers, while still providing core banking services.
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law and was amended and extended
by the Consolidated Appropriations Act of 2021 (“H.R. 133”) on December 21, 2020. Through this legislation, as well as related federal and state regulatory actions, the federal government has taken extraordinary efforts to provide financial
assistance to individuals and companies to help them move through these difficult times. However, there are no guarantees how long the COVID-19 virus may continue to impact our economy, and therefore, the Company.
While tremendous strides have been made in fighting the virus, particularly with the development of a vaccine, the lingering effects of
COVID-19 could have an adverse future impact on our business, financial condition and results of operations, however, we are unable to predict the extent or nature of these impacts at the current time.
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Investment Securities |
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Investment Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities |
3. Investment Securities
The amortized cost, fair values, and unrealized gains and losses of the debt securities available-for-sale are as
follows
(in thousands):
The amortized cost, estimated fair values and unrealized gains
and losses of investments classified as held-to-maturity are as follows (in thousands):
As part of our ongoing review of our investment securities
portfolio, we reassessed the classification of certain MBS securities. During the first quarter of 2021, we transferred $316.9 million of these securities, which we intend and have the ability to hold to maturity, from available-for-sale securities to held-to-maturity at fair value. The unrealized pre-tax loss of $2,000 at the date of transfer remained in accumulated other
comprehensive income and is amortized to yield over the remaining lives of the securities.
Fair values are based on quoted market prices or dealer quotes. If a quoted market price or dealer quote is not available, fair value is
estimated using quoted market prices for similar securities.
The amortized cost and estimated fair values of investment
securities at September 30, 2021 by contractual maturity are shown in the following table (in thousands):
Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
The following tables show those investments with gross
unrealized losses and their market value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at the dates indicated (in thousands):
There were no HTM investments
with gross unrealized losses at December 31, 2020.
There were no HTM investments
with gross unrealized losses at September 30, 2020.
As of September 30, 2021, the Company held 590
investment securities of which 68 were in an unrealized loss position for less than twelve months and 60 securities were in an unrealized loss position for twelve months or more. Management periodically evaluates each investment security for
other-than-temporary impairment relying primarily on industry analyst reports and observations of market conditions and interest rate fluctuations. Management believes it will be able to collect all amounts due according to the contractual terms of
the underlying investment securities.
U.S. Treasury Notes – At September 30, 2021, December 31, 2020, and September 30, 2020, no U.S. Treasury Note
security investments were in an unrealized loss position.
U.S. Government Agency SBA – At September 30, 2021, 4 U.S. Government SBA security investments were in an
unrealized loss position for less than 12 months and 44 were in a loss position for 12 months or more. The unrealized losses on the Company's investment in U.S. Government Agency SBA securities were $43,000, $93,000, and $102,000 at September 30, 2021, December 31, 2020, and September 30, 2020, respectively. The unrealized losses were caused by interest rate fluctuations. Because the decline in market value is attributable to changes in interest rates
and not credit quality, and because the Company does not intend to sell the securities and it is more likely than not that the Company will not have to sell the securities before recovery of their cost basis, the Company did not consider these
investments to be other-than-temporarily impaired at September 30, 2021, December 31, 2020, and
September 30, 2020.
Mortgage-Backed Securities – At September 30, 2021, 64 mortgage-backed security investments were in an unrealized loss position for less than 12 months and 16 were in an unrealized loss position for 12 months or more. The unrealized losses on the Company's investment in mortgage-backed securities were $16.5 million, $48,000, and $39,000 at September 30, 2021, December 31, 2020, and September 30, 2020, respectively. The unrealized losses were caused by interest rate fluctuations. The contractual cash flows of these investments are guaranteed by an agency or government-sponsored
entity of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company's investment. Because the decline in market value is attributable to changes in interest
rates and not credit quality, and because the Company does not intend to sell the securities and it is more likely than not that the Company will not have to sell the securities before recovery of their cost basis, the Company did not consider
these investments to be other-than-temporarily impaired at September 30, 2021, December 31, 2020, and September 30, 2020.
Corporate Securities - At September 30, 2021, we had no corporate securities in our portfolio, having sold all positions during the second quarter of 2021. The unrealized loss on the Company’s investment in the corporate securities were $0, $18,000 and $98,000 at September 30, 2021, December 31, 2020 and September 30, 2020, respectively. Changes in the prices of corporate securities are primarily influenced by: (1) changes in market interest rates; (2) changes in perceived credit risk in the general economy or in particular industries; (3) changes in the perceived credit risk of a particular company; and (4) day to day trading supply, demand and liquidity. The Company monitors the status of each of our corporate securities and at the current time does not believe any of them to be exhibiting financial problems that could result in a loss in
any individual security. Because the Company did not intend to sell the securities and it was more likely than not that the Company would not have to sell the securities before recovery of their cost basis, the Company did not consider these
investments to be other-than-temporarily impaired at December 31, 2020 and September 30, 2020.
Other Securities – At September 30, 2021, none
of the other securities were in an unrealized loss position. Other securities consisted of Money Market accounts held at investment brokerages.
Obligations of States and Political
Subdivisions – At September 30, 2021, December 31, 2020 and
September 30,2020, no obligation of states and political subdivisions was in an unrealized loss position. As of September 30, 2021, the Company’s bank-qualified municipal bond portfolio was rated at either the issue or issuer
level, and all of these ratings are “investment grade.” The Company monitors the status of all municipal investments in the portfolio and at the current time does not believe any of them to be exhibiting financial problems that could result in a
loss in any individual security.
Proceeds from sales and calls of securities for the periods shown were as follows:
Pledged Securities
As of September 30, 2021, securities carried at $445.2 million were pledged to secure public deposits, Federal Home Loan Bank (“FHLB”) borrowings, and other government agency deposits as required by law. This amount was $439.7 million at December 31, 2020, and $333.2
million at September 30, 2020.
|
Federal Home Loan Bank Stock and Other Equity Securities, at Cost |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Federal Home Loan Bank Stock and Other Equity Securities, at Cost [Abstract] | |
Federal Home Loan Bank Stock and Other Equity Securities, at Cost |
4. Federal Home Loan Bank Stock and Other Equity Securities, at Cost
The Bank is a member of the FHLB system. Members are required
to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock and other equity securities are carried at cost, classified as restricted securities, and periodically evaluated
for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. FHLB stock and other equity securities are reported in Interest Receivable and Other Assets on the Company’s Consolidated Balance Sheets
and totaled $15.5 million at
September 30, 2021, and $12.7 at
December 31, 2020 and September 2020.
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Loans & Leases |
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Loans & Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans & Leases |
5. Loans & Leases
Loans & Leases consisted of the following:
Paycheck Protection Program (“PPP”) ... Under the CARES Act
and H.R. 133 (see “Note 2 – Risks and Uncertainties”) the Small Business Administration (“SBA”) was directed by Congress to provide loans to small businesses with less than 500 employees to assist these businesses in meeting their payroll and other
financial obligations during the COVID-19 pandemic. These government guaranteed loans are made with an interest rate of 1%, a risk weight of 0% under risk-based capital rules, have a term of two to five years, and under certain conditions the SBA
will forgive them. The Bank actively participated in the PPP, and since April, 2020 the Bank has funded $494.9 million of loans for over 2,000 small business customers.
At September 30, 2021, the portion of loans that were approved for pledging as collateral on borrowing lines with the Federal Home Loan
Bank (“FHLB”) and the Federal Reserve Bank (“FRB”) were $1 billion and $742.4 million, respectively. The borrowing capacity on these loans were $749.5
million from FHLB and $467.8 million from the FRB.
|
Allowance for Credit Losses |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Allowance for Credit Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses |
6. Allowance for Credit Losses
The Company was originally scheduled to implement ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on
Financial Instruments (“CECL”) as of January 1, 2020. The CARES Act and H.R. 133 provide the election to defer CECL implementation until January 1, 2022. The Company has elected to delay CECL implementation.
The following tables show the allocation of the allowance for credit losses by portfolio segment and by impairment methodology at the
dates indicated (in thousands):
The ending balance of loans individually evaluated for impairment includes restructured loans in the amount of $327,200 at September 30, 2021, $876,000 at
December 31, 2020, and $828,500 at September 30, 2020, which are no longer disclosed or classified as TDRs since they were restructured at
market terms.
The following tables show the loan & lease portfolio, including unearned income, allocated by management’s internal risk ratings at the
dates indicated (in thousands):
See “Note 1. Significant Accounting Policies - Allowance for Credit Losses” for a description of the internal risk ratings used by the
Company. There were no loans or leases outstanding at September 30, 2021, December 31, 2020, and September 30, 2020, rated doubtful or
loss.
The following tables show an aging analysis of the loan & lease portfolio, including unearned income, past due at the dates indicated (in thousands):
Non-accrual loans & leases were $516,000
at September 30, 2021, $495,000 at December 31, 2020 and $498,000 at September 30, 2020. Foregone interest income on non-accrual loans & leases, which would have been recognized during the period, if all such loans & leases had been current in accordance with
their original terms, totaled $35,700, $22,000,
and $15,530 at September 30, 2021, December 31, 2020 and September 30, 2020 respectively.
The following tables show information related to impaired loans & leases for the periods indicated (in thousands):
Total recorded investment shown in the prior table will not equal the total ending balance of loans & leases individually evaluated for
impairment on the allocation of allowance table. This is because this table does not include impaired loans that were previously modified in a troubled debt restructuring, are currently performing and are no longer disclosed or classified as TDR’s
since they were restructured at market terms.
Since April 2020, we have restructured $278.1
million of loans under the CARES Act and H.R. 133 guidelines. As of September 30, 2021, all of these loans have returned to making principal and/or interest payments. We believe that these actions have assisted these borrowers in getting through these difficult times, but no guarantees can be made
that at some time in the future these loans will not be required to be accounted for as a TDR. For borrowers who were 30 days or more past due when enrolling in a loan modification program related to the COVID-19 pandemic, we evaluated the loan
modifications under our existing TDR framework, and where such a loan modification would have resulted in a more than insignificant concession to a borrower experiencing financial difficulty, the loan was accounted for as a TDR and would
generally not accrue interest. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act and H.R. 133, and the impact of COVID-19 on the Company.
At September 30, 2021, there were no
formal foreclosure proceedings in process for consumer mortgage loans secured by residential real estate properties.
At September 30, 2021, the Company allocated $123,800
of specific reserves to $8.1 million of troubled debt restructured loans & leases, of which $7.6 million were performing. The Company had no commitments at
September 30, 2021, to lend additional amounts to customers with outstanding loans or leases that are classified as TDRs.
During the three and nine-month periods ended September 30, 2021, there were no loans or leases modified as a troubled debt restructuring.
During the three and nine-month periods ended September 30, 2021, the year ended December 31, 2020, and the three and nine-month periods
ended September 30, 2020 there were no payment defaults on loans or leases modified as troubled debt restructurings within twelve
months following the modification. The Company considers a loan or lease to be in payment default once it is greater than 90 days
contractually past due under the modified terms.
At December 31, 2020, there were no
formal foreclosure proceedings in process for consumer mortgage loans secured by residential real estate properties.
At December 31, 2020, the Company allocated $158,000
of specific reserves to $7.9 million of troubled debt restructured loans, all of which were performing. The Company had no commitments at December 31, 2020 to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings.
The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for
new debt with similar risk; or a permanent reduction of the recorded investment in the loan.
Modifications involving a reduction of the stated interest rate of the loan were for 5 years. Modifications involving an extension of the maturity date range from 3
months to 10 years.
The following table presents loans or leases by class modified as troubled debt restructured loans or leases for the year ended December
31, 2020 (in thousands):
The troubled debt restructurings described above increased the allowance for credit losses by $120,000 for the twelve months ended December 31, 2020.
During the year ended December 31, 2020, there were no payment defaults on loans modified as troubled debt restructurings within twelve months following the modification.
At September 30, 2020, there were no
formal foreclosure proceedings in process for consumer mortgage loans secured by residential real estate properties.
At September 30, 2020, the Company allocated $156,000
of specific reserves to $7.9 million of troubled debt restructured loans & leases, all of which were performing. The Company had no commitments at September 30, 2020, to lend additional amounts to customers with outstanding loans or leases that were classified as TDRs.
During the nine-month period ended September 30, 2020, there were six loans modified as a troubled debt restructuring. The modifications involved a reduction of the stated interest rate of the loans for 5 years and extended the maturity dates for 10 years.
The following table presents loans or leases by class modified
as troubled debt restructured loans or leases during the three and nine-month periods ended September 30, 2020 (in
thousands):
TDRs described above had minimal impact on the allowance for
credit losses and resulted in charge-offs of $7,000 for the nine-month period ended September 30, 2020.
During the three and nine-month periods ended September 30, 2020, there were no payment defaults on loans or leases modified as troubled debt restructurings
within twelve months following the modification. The Company considers a loan or lease to be in payment default once it is greater than 90 days contractually past due under the modified terms.
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Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
7. Fair Value Measurements
The Company follows the “Fair Value Measurement and Disclosures” topic of the FASB ASC 820, which establishes a framework for measuring
fair value in U.S. GAAP and expands disclosures about fair value measurements. This standard applies whenever other standards require, or permit, assets or liabilities to be measured at fair value but does not expand the use of fair value in any new
circumstances. In this standard, the FASB clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability. In support of this principle, this standard establishes a fair
value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy is as follows:
Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access
at the measurement date.
Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or
indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at
commonly quoted intervals.
Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions
about the assumptions that market participants would use in pricing the assets or liabilities.
Management monitors the availability of observable market data to assess the appropriate classification of financial instruments within the
fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the
reporting period.
Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the
transfer relative to total assets, total liabilities or total earnings.
Securities classified as available-for-sale are reported at fair value on a recurring basis utilizing Level 1, 2 and 3 inputs. For these
securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading
levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.
The Company does not record all loans & leases at fair value on a recurring basis. However, from time to time, a loan or lease is
considered impaired and an allowance for credit losses is established. Once a loan or lease is identified as individually impaired, management measures impairment in accordance with the “Receivable” topic of the FASB ASC 310. The fair value of
impaired loans or leases is estimated using one of several methods, including collateral value when the loan is collateral dependent, market value of similar debt, enterprise value, and discounted cash flows. Impaired loans & leases not requiring
an allowance represent loans & leases for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans & leases. Impaired loans & leases where an allowance is established based on the fair
value of collateral require classification in the fair value hierarchy. The fair value of collateral dependent impaired loans is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a
combination of approaches including sales comparison, cost and the income approach. Adjustments are often made in the appraisal process by the appraisers to take into account differences between the comparable sales and income and other available
data. Such adjustments can be significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation technique used for Level 3 nonrecurring impaired loans is primarily the sales comparison approach less
selling costs of 10%.
Other Real Estate (“ORE”) is reported at fair value on a non-recurring basis. Fair values are based on recent real estate appraisals. These
appraisals may use a single valuation approach or a combination of approaches including sales comparison, cost and the income approach. Adjustments are often made in the appraisal process by the appraisers to take into account differences between the
comparable sales and income and other available data. Such adjustments can be significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation technique used for Level 3 nonrecurring ORE is
primarily the sales comparison approach less selling costs of 10%.
The following tables present information about the Company’s assets measured at fair value on a recurring basis and indicate the fair value
hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated.
Fair values for Level 2 available-for-sale investment securities are based on quoted market prices for similar securities. During the three and nine-month periods ended September 30, 2021 and 2020, there were no transfers in or out of Level 1, 2, or 3.
The following tables present information about the Company’s other real estate and impaired loans or leases, classes of assets or
liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans or
leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment
of a specific reserve.
The Company’s property appraisals are primarily based on the sales comparison approach and the income approach methodologies, which
consider recent sales of comparable properties, including their income generating characteristics, and then make adjustments to reflect the general assumptions that a market participant would make when analyzing the property for purchase. These
adjustments may increase or decrease an appraised value and can vary significantly depending on the location, physical characteristics and income producing potential of each property. Additionally, the quality and volume of market information
available at the time of the appraisal can vary from period to period and cause significant changes to the nature and magnitude of comparable sale adjustments. Given these variations, comparable sale adjustments are generally not a reliable indicator
for how fair value will increase or decrease from period to period. Under certain circumstances, management discounts are applied based on specific characteristics of an individual property.
The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair
value on a nonrecurring basis at the dates indicated.
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Fair Value of Financial Instruments |
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Fair Value of Financial Instruments |
8. Fair Value of Financial Instruments
U.S. GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for
which it is practical to estimate that value. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies based on the assumptions market participants would use when
pricing the asset or liability. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, will likely reduce the comparability of fair value disclosures between financial
institutions. In some cases, book value is a reasonable estimate of fair value due to the relatively short period of time between origination of the instrument and its expected realization. The fair value of loans held for investment, excluding
previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses consistent with ASC 820. The discount rates used to determine fair value use interest rate spreads that reflect
factors such as liquidity, risk premium, credit, and non-performance risk of the loans. Loans are considered a Level 3 classification.
The following tables summarize the book value and estimated fair value of financial instruments for the periods indicated:
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Dividends and Basic and Diluted Earnings Per Common Share |
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Dividends and Basic and Diluted Earnings Per Common Share |
9. Dividends and Basic and Diluted Earnings Per Common Share
Farmers & Merchants Bancorp common stock is not traded on any exchange. The shares are primarily held by local residents and are not
actively traded. However, trades are reported on the OTCQX under the symbol “FMCB”.
On May 13, 2021, the Board
of Directors declared a mid-year cash dividend of $7.50 per share, a 3.4% increase over the $7.25 per share paid on July 1, 2020. The cash dividend was paid on July 1, 2021,
to shareholders of record on June 11, 2021.
Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. The Company has no securities or other contracts,
such as stock options, that could require the issuance of additional common stock. Accordingly, diluted earnings per share are equal to basic earnings per share.
The following table calculates the basic earnings per common share for the three and nine-month periods ended September 30, 2021 and 2020.
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Leases |
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Leases |
10. Leases
Lessee – Operating Leases
Operating
leases in which we are the lessee are recorded as operating lease right-of-use (“ROU”) assets and operating lease liabilities, included in
and , respectively, on our consolidated balance sheets. We do not currently have any significant finance leases in
which we are the lessee.Operating
lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at
lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease
expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded net in occupancy expense in the consolidated
statements of income.
Our leases relate primarily to office space and bank branches with remaining lease terms of generally
to ten years. Certain lease
arrangements contain extension options which typically range from to ten years at the then fair market rental rates. ASC 842 requires lessees to evaluate whether option periods, if available, will be exercised in order to determine the full life of the lease.
The Company used the first option period, unless it is a relatively new lease that has a long initial lease term or other extenuating circumstances.As of September 30, 2021, operating lease ROU assets and liabilities were $4.19 million and $4.29 million, respectively. As of December 31, 2020,
operating lease ROU assets and liabilities were $4.80 million and $4.92 million, respectively. As of September 30, 2020, operating lease ROU assets and liabilities were $4.47 million and $4.55 million, respectively. In the first quarter of 2021, early termination of one lease resulted in a reduction to ROU assets and liabilities of $482,000 and $494,000, respectively. In the third quarter of 2021, a new modification to renew a lease for more years resulted in an addition to ROU assets and liabilities of $302,000.
The table below summarizes the information related to our operating leases:
The table below summarizes the maturity of remaining lease liability:
As of September 30, 2021, we have no
additional operating leases for office space that have not yet commenced or that are
anticipated to commence during the fourth quarter of 2021.
Lessor - Direct Financing Leases
The Company is the lessor in direct finance lease arrangements. Leases are recorded at the principal balance outstanding, net of unearned
income and charge-offs. Interest income is recognized using the interest method. Leases typically have a maturity of
to ten years, and fixed rates that are most often tied to treasury indices with an appropriate spread based on the amount of perceived risk. Credit risks are
underwritten using the same credit criteria the Company would use when making an equipment term loan. Residual value risk is managed through the use of qualified, independent appraisers that establish the residual values the Company uses in
structuring a lease.Lease payments due to the Company are typically fixed and paid in equal installments over the lease term. Variable lease payments that do
not depend on an index or a rate (e.g., property taxes) that are paid directly by the Company are minimal. The majority of property taxes are paid directly by the client to a third party and are not considered part of variable payments and therefore
are not recorded by the Company.
As a lessor, the Company leases certain types of agriculture
equipment, solar equipment, construction equipment and other equipment to its customers. The Company’s net investment in direct financing leases was $90.4 million at September 30, 2021, $103.5 million at December 31, 2020, and $106.4 million at September 30, 2020.
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Recent Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2021 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements |
11. Recent Accounting Pronouncements
Accounting Standards Adopted in 2021
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). The updated guidance simplifies the accounting for income taxes by removing
certain exceptions and improves the consistent application of GAAP by clarifying and amending other existing guidance. We adopted this ASU prospectively on January 1, 2021, which did not have a material impact on our financial condition or results of
operations.
Accounting Guidance Pending Adoption at September 30, 2021
The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s
financial position or results of operations.
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU are elective and provide optional
guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying generally accepted
accounting principles (GAAP) to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU may be elected as of
March 12, 2020 through December 31, 2022. An entity may choose to elect the amendments in this
update at an interim period subsequent to March 12, 2020 with adoption methods varying based on transaction type. We have not elected to apply these amendments. However, we will assess the applicability of the ASU to us and continue to monitor guidance for reference rate reform from FASB and
its impact on our financial condition and results of operations.
In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The main amendments in this ASU are intended to
clarify certain optional expedients and scope of derivative instruments. The amendments are elective and effective immediately upon issuance of this ASU. Amendments may be elected through December 31, 2022. We have not elected to apply amendments at
this time, however, will assess the applicability of this ASU to us as we continue to monitor guidance for reference rate reform from FASB and its impact on our financial condition and results of operations.
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Significant Accounting Policies (Policies) |
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Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation |
Basis of Presentation
The accompanying consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally
accepted in the United States of America for financial information.
The accompanying consolidated financial statements include the accounts of the Company and the Company’s wholly owned subsidiaries, F &
M Bancorp, Inc. and the Bank, along with the Bank’s wholly owned subsidiaries, Farmers & Merchants Investment Corporation and Farmers/Merchants Corp. Significant inter-company transactions have been eliminated in consolidation.
The unaudited consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements
do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K, as amended (“2020 Annual Report on Form 10-K”), for the year ended December 31, 2020 and, accordingly,
should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included.
Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions.
These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these
estimates.
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Accounting Guidance Pending Adoption |
Accounting Guidance Pending Adoption at
September 30, 2021
The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect
on the Company’s financial position or results of operations.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments. The ASU will require the earlier recognition of credit losses on loans and other financial instruments based on an expected loss model,
replacing the incurred loss model that is currently in use. Under the new guidance, an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and
reasonable and supportable forecasts. The expected loss model will apply to loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. The impairment model for
available-for-sale debt securities will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. During 2019, the Company completed an assessment of its current expected credit losses (CECL) data and system needs, and engaged a third-party vendor to assist in developing a CECL model. The Company, in conjunction with this vendor, researched and analyzed modeling standards, loan segmentation, as well as potential
external inputs to supplement our historical loss history. Model validation began in the third quarter of 2019, enabling the Company to complete parallel runs using data beginning with the second quarter of 2019.
The new guidance had been effective on January 1, 2020. However, the Coronavirus Aid, Relief and Economic
Security Act (“CARES Act”) and H.R. 133, resulted in federal banking regulators issuing an interim final rule allowing banks the option of delaying
the implementation of CECL until January 1, 2022. In addition, the national banking regulators have issued a joint statement allowing financial institutions to mitigate the effects of CECL in their regulatory capital calculations for up to two years. The Company has elected to delay CECL adoption, but continues to run its CECL model quarterly to accumulate data for the ultimate implementation. Management is currently
evaluating the impact that the standard will have on its consolidated financial statements.
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Cash and Cash Equivalents |
Cash and Cash Equivalents
For purposes of the Consolidated Statements of Cash Flows, the
Company has defined cash and cash equivalents as those amounts included in the balance sheet captions Cash and Due from Banks, Interest-Bearing Deposits with Banks, and Federal Funds Sold, which have original maturity dates of three months or less. For these instruments, the carrying amount is a reasonable estimate of fair value.
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Investment Securities |
Investment Securities
Investment securities are classified at the time of purchase as held-to-maturity (“HTM”) if it is management’s intent and the Company has
the ability to hold the securities until maturity. These securities are carried at cost, adjusted for amortization of premium to earliest call date and accretion of discount using a level yield of interest over the estimated remaining period until
maturity. Losses, reflecting a decline in value judged by the Company to be other than temporary, are recognized in the period in which they occur.
Securities are classified as available-for-sale (“AFS”) if it is management’s intent, at the time of purchase, to hold the securities for
an indefinite period of time and/or to use the securities as part of the Company’s asset/liability management strategy. These securities are reported at fair value with aggregate unrealized gains or losses excluded from income and included as a
separate component of shareholders’ equity, net of related income taxes. Fair values are based on quoted market prices or broker/dealer price quotations on a specific identification basis. Gains or losses on the sale of these securities are computed
using the specific identification method.
Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of
transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are
amortized or accreted using the effective interest method over the life of the security as an adjustment of yield. Unrealized holding gains or losses that remain in accumulated other comprehensive income are amortized or accreted over the remaining
life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount.
Trading securities, if any, are acquired for short-term appreciation and are recorded in a trading portfolio and are carried at fair value,
with unrealized gains and losses recorded in non-interest income.
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when
economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer.
Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or
requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement; and (2) OTTI related to other factors, which
is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis.
Equity securities are carried at fair value with changes in market value recognized through earnings.
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Loans & Leases |
Loans & Leases
Loans & leases are reported at the principal amount outstanding net of unearned discounts and deferred loan & lease fees and costs.
Interest income on loans & leases is accrued daily on the outstanding balances using the simple interest method. Loan & lease origination fees are deferred and recognized over the contractual life of the loan or lease as an adjustment to the
yield. Loans & leases are placed on non-accrual status when the collection of principal or interest is in doubt or when they become past due for 90
days or more unless they are both well-secured and in the process of collection. For this purpose, a loan or lease is considered well-secured if it is collateralized by property having a net realizable value in excess of the amount of the loan or
lease or is guaranteed by a financially capable party. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and charged against current income; thereafter, interest income is recognized only as
it is collected in cash. Additionally, cash would be applied to principal if all principal was not expected to be collected. Loans & leases placed on non-accrual status are returned to accrual status when the loans or leases are paid current as
to principal and interest and future payments are expected to be made in accordance with the contractual terms of the loan or lease.
A loan or lease is considered impaired when, based on current
information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Impaired loans & leases are either: (1)
non-accrual loans & leases; or (2) restructured loans & leases that are still accruing interest. Loans or leases determined to be impaired are individually evaluated for impairment. When a loan or lease is impaired, the Company measures
impairment based on the present value of expected future cash flows discounted at the loan or lease’s effective interest rate, except that as a practical expedient, it may measure impairment based on a loan or lease’s observable market price, or
the fair value of the collateral if the loan or lease is collateral dependent. A loan or lease is collateral dependent if the repayment of the loan or lease is expected to be provided solely by the underlying collateral.
A restructuring of a loan or lease constitutes a troubled debt restructuring (TDR) if the Company for economic or legal reasons related to
the borrower’s (the term “borrower” is used herein to describe a customer who has entered into either a loan or lease transaction) financial difficulties grants a more than insignificant concession to the borrower that it would not otherwise
consider. Restructured loans & leases typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. If the restructured loan or lease was current on all payments at the
time of restructure and management reasonably expects the borrower will continue to perform after the restructure, management may keep the loan or lease on accrual. Loans & leases that are on non-accrual status at the time they become TDR, remain
on non-accrual status until the borrower demonstrates a sustained period of performance, which the Company generally believes to be
consecutive months of payments, or equivalent. A loan or lease can be removed from TDR status if it was restructured at a market rate in a prior calendar year and is currently in compliance with its modified terms. However, these loans or leases
continue to be classified as impaired and are individually evaluated for impairment as described above.Generally, the Company will not restructure loans or leases for borrowers unless: (1) the existing loan or lease is brought current as to
principal and interest payments; and (2) the restructured loan or lease can be underwritten to reasonable underwriting standards. If these standards are not met other actions will be pursued (e.g., foreclosure) to collect outstanding loan or lease
amounts. After restructure, a determination is made whether the loan or lease will be kept on accrual status based upon the underwriting and historical performance of the restructured credit.
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law by
Congress and was amended and extended by the Consolidated Appropriations Act of 2021 (“H.R. 133”) on December 21, 2020. The CARES Act and H.R. 133 provide financial institutions, under specific circumstances, the opportunity to
temporarily suspend certain requirements under generally accepted accounting principles related to modifications for a limited period of time to account for the effects of COVID-19. In March 2020, a joint statement was issued by federal and state regulatory agencies, after consultation
with the FASB, to clarify that short-term loan modifications are not TDRs if made on a good-faith basis in response to COVID-19 to borrowers who
were current prior to any relief. Under this guidance, six months is provided as an example of short-term, and current is defined as less than 30 days past due at the time the modification program is implemented. The guidance also provides that these modified loans generally will not be classified as
non-accrual during the term of the modification. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act and H.R. 133 and the impact of COVID-19 on the Company.
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Allowance for Credit Losses |
Allowance for Credit Losses
The allowance for credit losses is an estimate of probable incurred credit losses inherent in the Company’s loan & lease portfolio as of the balance sheet date. The allowance is established through a provision for credit losses, which is charged to expense. Additions to the allowance are
expected to maintain the adequacy of the total allowance after credit losses and loan & lease growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded
as a recovery to the allowance. The overall allowance consists of three primary components: specific reserves related to impaired loans
& leases; general reserves for inherent losses related to loans & leases that are not impaired; and an unallocated component that takes into account the imprecision in estimating and allocating allowance balances associated with macro
factors.
The determination of the general reserve for loans & leases that are collectively evaluated for impairment is based on estimates made
by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, qualitative factors that include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan & lease portfolio, and probable losses
inherent in the portfolio taken as a whole.
The Company maintains a separate allowance for each portfolio segment (loan & lease type). These portfolio segments include: (1)
commercial real estate; (2) agricultural real estate; (3) real estate construction (including land and development loans); (4) residential 1st mortgages; (5) home equity lines and loans; (6) agricultural; (7) commercial; (8) consumer and
other; and (9) equipment leases. The allowance for credit losses attributable to each portfolio segment, which includes both individually evaluated impaired loans & leases and loans & leases that are collectively evaluated for impairment, is
combined to determine the Company’s overall allowance, which is included on the consolidated balance sheet.
The Company assigns a risk rating to all loans & leases and periodically performs detailed reviews of all such loans & leases over
a certain threshold to identify credit risks and assess overall collectability. For smaller balance loans & leases, such as consumer and residential real estate, a credit grade is established at inception, and then updated only when the loan or
lease becomes contractually delinquent or when the borrower requests a modification. For larger balance loans, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate
and the fair values of collateral securing these loans & leases. These credit quality indicators are used to assign a risk rating to each individual loan or lease. These risk ratings are also subject to examination by independent specialists
engaged by the Company. The risk ratings can be grouped into five major categories, defined as follows:
Pass and Watch – A pass loan or lease is a strong credit with no existing or known potential weaknesses deserving of management’s close attention. This category also includes “Watch” loans, which is a loan with an emerging weakness in either the individual credit or industry that
requires additional attention. A credit may also be classified Watch if cash flows have not yet stabilized, such as in the case of a development project. Included in this category are all loans in which the Bank entered into a CARES Act modification.
Special Mention – A special mention loan or lease has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company’s credit position at some future date. Special mention loans & leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.
Substandard – A substandard loan or lease is not adequately protected by the current financial condition and paying capacity of the
borrower or the value of the collateral pledged, if any. Loans or leases classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well-defined weaknesses include a project’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project’s failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
Doubtful – Loans or leases classified doubtful have all the weaknesses inherent in those classified as substandard with the added
characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, highly questionable or improbable.
Loss – Loans or leases classified as loss are considered uncollectible. Once a loan or lease becomes delinquent and repayment becomes
questionable, the Company will address collateral shortfalls with the borrower and attempt to obtain additional collateral. If this is not forthcoming and payment in full is unlikely, the Company will estimate its probable loss and immediately
charge-off some or all of the balance.
The general reserve component of the allowance for credit losses also consists of reserve factors that are based on management’s assessment of the following for each portfolio segment: (1) inherent credit risk; (2) historical losses; and (3) other qualitative factors. These reserve
factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below:
Commercial Real Estate – Commercial real estate mortgage loans are generally considered to possess a higher inherent risk of loss than the
Company’s commercial, agricultural and consumer loan types. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the
credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations.
Real Estate Construction – Real estate construction loans, including land loans, are generally considered to possess a higher inherent risk
of loss than the Company’s commercial, agricultural and consumer loan types. A major risk arises from the necessity to complete projects within specified cost and time lines. Trends in the construction industry significantly impact the credit quality
of these loans, as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects.
Commercial – These loans are generally considered to possess a moderate inherent risk of loss because they are shorter-term; typically made
to relationship customers; generally underwritten to existing cash flows of operating businesses; and may be collateralized by fixed assets, inventory and/or accounts receivable. Debt coverage is provided by business cash flows and economic trends
influenced by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans.
Agricultural Real Estate and Agricultural – These loans are generally considered to possess a moderate inherent risk of loss since they are
typically made to relationship customers and are secured by crop production, livestock and related real estate. These loans are vulnerable to two
risk factors that are largely outside the control of Company and borrowers: commodity prices and weather conditions.
Leases – Equipment leases are generally considered to possess a moderate inherent risk of loss. As lessor, the Company is subject to both
the credit risk of the borrower and the residual value risk of the equipment. Credit risks are underwritten using the same credit criteria the Company would use when making an equipment term loan. Residual value risk is managed through the use of
qualified, independent appraisers that establish the residual values the Company uses in structuring a lease.
Residential 1st Mortgages and Home Equity Lines and Loans – These loans are generally considered to possess a lower inherent risk of loss.
The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s
ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating.
Consumer & Other – A consumer installment loan portfolio is usually comprised of a large number of small loans scheduled to be
amortized over a specific period. Most installment loans are made for consumer purchases. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic
trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating.
At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the
portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s and Bank’s regulators, including the Federal Reserve Board (“FRB”), the California Department of Financial Protection and Innovation (“DFPI”) and the Federal Deposit Insurance Corporation (“FDIC”),
as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations.
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Acquired Loans |
Acquired Loans
Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit
discounts, which reflect estimates of credit losses, expected to be incurred over the life of the loan, are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date.
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Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures
The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates anticipated losses using historical
data and utilization assumptions. The allowance for off-balance-sheet commitments is included in Interest Payable and Other Liabilities on the Company’s Consolidated Balance Sheet.
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Right of Use Lease Asset & Lease Liability |
Right of Use Lease Asset & Lease Liability
The Company leases retail space and office space under
operating leases. Most leases require the Company to pay real estate taxes, maintenance, insurance and other similar costs in addition to the base rent. Certain leases also contain lease incentives, such as tenant improvement allowances and rent
abatement. Variable lease payments are recognized as lease expense as they are incurred. We record an operating lease right of use (ROU) asset and an operating lease liability (lease liability) for operating leases with a lease term greater than 12 months. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated statement of financial
condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement
date based on the present value of lease payments over the lease term. Accordingly, ROU assets are reduced by tenant improvement allowances from landlords plus any prepaid rent. We do not separate lease and non-lease components of contracts. As
most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Many of our
leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule, which are factored into our determination of lease payments when appropriate. A
majority of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. The
ROU asset and lease liability terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
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Revenue from Contracts with Customers |
Revenue from Contracts with Customers
The Company records revenue from contracts with customers in
accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer,
identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation.
Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods.
The Company’s primary sources of revenue are derived from
interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The
Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was
not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity.
Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is limited judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.
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Premises and Equipment |
Premises and Equipment
Premises, equipment, and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation is
computed principally by the straight-line method over the estimated useful lives of the assets. Estimated useful lives of buildings range from 30
to 40 years, and for furniture and equipment from
to seven years. Leasehold improvements are amortized over the lesser of the terms of the
respective leases, or their useful lives, which are generally to ten years. Remodeling and capital improvements are capitalized while maintenance and repairs are charged directly to occupancy expense. |
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Other Real Estate |
Other Real Estate
Other real estate, which is included in other assets, is expected to be sold and is comprised of properties no longer utilized for business
operations and property acquired through foreclosure in satisfaction of indebtedness. These properties are recorded at fair value less estimated selling costs upon acquisition. Revised estimates to the fair value less cost to sell are reported as
adjustments to the carrying amount of the asset, provided that such adjusted value is not in excess of the carrying amount at acquisition. Initial losses on properties acquired through full or partial satisfaction of debt are treated as credit losses
and charged to the allowance for credit losses at the time of acquisition. Subsequent declines in value from the recorded amounts, routine holding costs, and gains or losses upon disposition, if any, are included in non-interest expense as incurred.
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law by Congress and was amended and extended by the
Consolidated Appropriations Act of 2021 (“H.R. 133”) on December 21, 2020. The CARES Act and H.R. 133 restrict the ability of financial institutions to exercise their foreclosure rights on residential and multi-family properties backed by federally
guaranteed mortgage loans. The State of California went further and temporarily suspended all residential and commercial foreclosures through September 30, 2021, but these guidelines have now expired. The Company continues to work with its borrowers
when they make requests to defer payments on their mortgage loans. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act and H.R. 133 and the impact of COVID-19 on the Company.
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Income Taxes |
Income Taxes
The Company uses the liability method of accounting for income taxes. This method results in the recognition of deferred tax assets and
liabilities that are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and
liabilities are adjusted through the provision for income taxes. The deferred provision for income taxes is the result of the net change in the deferred tax asset and deferred tax liability balances during the year. This amount combined with the
current taxes payable or refundable results in the income tax expense for the current year.
The Company follows the standards set forth in the “Income Taxes” topic of the Financial Accounting Standards Board (“FASB”) Accounting
Standard Codification (“ASC”) 740, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard prescribes a recognition threshold and measurement standard for the financial
statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and
transition.
The Company accounts for leases with Investment Tax Credits (ITC) under the deferred method as established in ASC 740-10. ITC are viewed
and accounted for as a reduction of the cost of the related assets and presented as deferred income on the Company’s financial statement.
The Company accounts for its interest in Low Income Housing Tax Credits (LIHTC) using the cost method as established in ASC 323-740. As an
investor, the Company obtains income tax credits and deductions from the operating losses of these tax credit entities. The income tax credits and deductions are allocated to the investors based on their ownership percentages and are recorded as a
reduction of income tax expense (or an increase to income tax benefit) and a reduction of federal income taxes payable.
When tax returns are filed, it is highly certain that some
positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax
position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals
or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50
percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that
exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities
upon examination.
For the three and nine-month periods ended September 30, 2021 and 2020, the Company had no material uncertain tax positions and recognized no interest or penalties. The Company’s policy is to recognize interest and penalties related to income taxes in the provision for income taxes in the Consolidated Statements of Income.
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Basic and Diluted Earnings Per Common Share |
Basic and Diluted Earnings Per Common Share
The Company’s common stock is not traded on any exchange.
However, trades are reported on the OTCQX under the symbol “FMCB”. The shares are primarily held by local residents and are not actively traded. Basic earnings per common share amounts are computed by dividing net income by the weighted average
number of common shares outstanding for the period. There are no common stock equivalent shares. Therefore, diluted and basic earnings per common share are the same. See Note 9 –
“Dividends and Basic and Diluted Earnings Per Common Share” for additional information.
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Segment Reporting |
Segment Reporting
The “Segment Reporting” topic of the FASB ASC 280 requires that public companies report certain information about operating segments. It also requires that public companies report certain information about
their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a community bank, which offers a wide array of products and services to its customers. Pursuant to its banking
strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized around discernible lines of business and prefers to work as an integrated unit
to customize solutions for its customers, with business line emphasis and product offerings changing over time as needs and demands change.
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Comprehensive Income |
Comprehensive Income
The “Comprehensive Income” topic of the FASB ASC 220 establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Other comprehensive income refers to
revenues, expenses, gains, and losses that U.S. GAAP recognize as changes in value to an enterprise but are excluded from net income. For the Company, comprehensive income includes net income, changes in fair value of its available-for-sale
investment securities and amortization of net unrealized gains or losses on securities transferred from available-for-sale to held-to-maturity, net of related taxes.
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Goodwill and Other Intangible Assets |
Goodwill and Other Intangible Assets
Goodwill is determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling
interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill that arises from a business combination is periodically evaluated for impairment at the reporting unit level, at
least annually. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible (“CDI”)
represents the estimated future benefit of deposits related to an acquisition and is booked separately from the related deposits and evaluated periodically for impairment. The CDI asset is amortized on a straight-line method over its estimated useful
life of ten years.
At September 30, 2021, the future estimated amortization expense for the CDI arising from our past
acquisitions is as follows:
We make a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit where goodwill is assigned
is less than its carrying amount. If we conclude that it is more likely than not that the fair value is more than its carrying amount, no impairment is recorded. Goodwill is tested for impairment on an interim basis if circumstances change or an
event occurs between annual tests that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The qualitative assessment includes adverse events or circumstances identified that could negatively affect the
reporting units’ fair value as well as positive and mitigating events. Such indicators may include, among others, a significant change in legal factors or in the general business climate, significant change in our stock price and market
capitalization, unanticipated competition, and an action or assessment by a regulator. If the fair value of a reporting unit is less than its carrying amount, an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.
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Recent Accounting Pronouncements (Policies) |
9 Months Ended |
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Sep. 30, 2021 | |
Recent Accounting Pronouncements [Abstract] | |
Accounting Standards Adopted and Pending Adoption |
Accounting Standards Adopted in 2021
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). The updated guidance simplifies the accounting for income taxes by removing
certain exceptions and improves the consistent application of GAAP by clarifying and amending other existing guidance. We adopted this ASU prospectively on January 1, 2021, which did not have a material impact on our financial condition or results of
operations.
Accounting Guidance Pending Adoption at September 30, 2021
The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s
financial position or results of operations.
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU are elective and provide optional
guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying generally accepted
accounting principles (GAAP) to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU may be elected as of
March 12, 2020 through December 31, 2022. An entity may choose to elect the amendments in this
update at an interim period subsequent to March 12, 2020 with adoption methods varying based on transaction type. We have not elected to apply these amendments. However, we will assess the applicability of the ASU to us and continue to monitor guidance for reference rate reform from FASB and
its impact on our financial condition and results of operations.
In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The main amendments in this ASU are intended to
clarify certain optional expedients and scope of derivative instruments. The amendments are elective and effective immediately upon issuance of this ASU. Amendments may be elected through December 31, 2022. We have not elected to apply amendments at
this time, however, will assess the applicability of this ASU to us as we continue to monitor guidance for reference rate reform from FASB and its impact on our financial condition and results of operations.
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Significant Accounting Policies (Tables) |
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Future Estimated Amortization Expense for CDI |
At September 30, 2021, the future estimated amortization expense for the CDI arising from our past
acquisitions is as follows:
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Investment Securities (Tables) |
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-Sale |
The amortized cost, fair values, and unrealized gains and losses of the debt securities available-for-sale are as
follows
(in thousands):
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Amortized Cost, Estimated Fair Values and Unrealized Gains and Losses of Investments Classified as Held-to-Maturity |
The amortized cost, estimated fair values and unrealized gains
and losses of investments classified as held-to-maturity are as follows (in thousands):
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Amortized Cost and Estimated Fair Values of Investment Securities by Contractual Maturity |
The amortized cost and estimated fair values of investment
securities at September 30, 2021 by contractual maturity are shown in the following table (in thousands):
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Investments with Gross Unrealized Losses and Their Market Value Aggregated by Investment Category and Length of Time that Individual Securities Have Been in a Continuous Unrealized Loss Position |
The following tables show those investments with gross
unrealized losses and their market value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at the dates indicated (in thousands):
There were no HTM investments
with gross unrealized losses at December 31, 2020.
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Proceeds from Sales and Calls of Securities |
Proceeds from sales and calls of securities for the periods shown were as follows:
|
Loans & Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans & Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Loans & Leases |
Loans & Leases consisted of the following:
|
Allowance for Credit Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Allowance for Credit Losses by Portfolio Segment and by Impairment Methodology |
The following tables show the allocation of the allowance for credit losses by portfolio segment and by impairment methodology at the
dates indicated (in thousands):
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Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings |
The following tables show the loan & lease portfolio, including unearned income, allocated by management’s internal risk ratings at the
dates indicated (in thousands):
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Aging Analysis of Loan & Lease Portfolio by Past Due |
The following tables show an aging analysis of the loan & lease portfolio, including unearned income, past due at the dates indicated (in thousands):
|
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Impaired Loans & Leases |
The following tables show information related to impaired loans & leases for the periods indicated (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans or Leases by Class Modified as Troubled Debt Restructured Loans |
The following table presents loans or leases by class modified as troubled debt restructured loans or leases for the year ended December
31, 2020 (in thousands):
The following table presents loans or leases by class modified
as troubled debt restructured loans or leases during the three and nine-month periods ended September 30, 2020 (in
thousands):
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following tables present information about the Company’s assets measured at fair value on a recurring basis and indicate the fair value
hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis |
The following tables present information about the Company’s other real estate and impaired loans or leases, classes of assets or
liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans or
leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment
of a specific reserve.
|
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Quantitative Information about Level 3 Fair Value Measurements for Financial Assets Measured at Fair Value on a Nonrecurring Basis |
The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair
value on a nonrecurring basis at the dates indicated.
|
Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Book Value and Estimated Fair Value of Financial Instruments |
The following tables summarize the book value and estimated fair value of financial instruments for the periods indicated:
|
Dividends and Basic and Diluted Earnings Per Common Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and Basic and Diluted Earnings Per Common Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earnings per Common Share |
The following table calculates the basic earnings per common share for the three and nine-month periods ended September 30, 2021 and 2020.
|
Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Related to Operating Leases |
The table below summarizes the information related to our operating leases:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity of Remaining Lease Liability |
The table below summarizes the maturity of remaining lease liability:
|
Significant Accounting Policies, Investment Securities (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021
Component
| |
Investment Securities [Abstract] | |
Number of components into which amount of impairment is split | 2 |
Significant Accounting Policies, Loans & Leases and Allowance for Credit Losses (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021
Component
Category
Factor
| |
Loans & Leases [Abstract] | |
Consecutive months of payments to demonstrate sustained period of performance | 6 months |
Allowance for Credit Losses [Abstract] | |
Number of primary components of overall allowance for credit losses | Component | 3 |
Number of categories into which risk ratings are grouped | Category | 5 |
Minimum [Member] | |
Loans & Leases [Abstract] | |
Period after which loans are placed on non accrual status | 90 days |
Agricultural Real Estate [Member] | |
Allowance for Credit Losses [Abstract] | |
Number of risk factors on loans | 2 |
Agricultural [Member] | |
Allowance for Credit Losses [Abstract] | |
Number of risk factors on loans | 2 |
Significant Accounting Policies, Premises and Equipment (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Buildings [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 30 years |
Buildings [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 40 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 3 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 10 years |
Significant Accounting Policies, Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Tax Penalties and Interest Expense [Abstract] | ||||
Interest | $ 0 | $ 0 | $ 0 | $ 0 |
Penalties | $ 0 | $ 0 | $ 0 | $ 0 |
Significant Accounting Policies, Basic and Diluted Earnings Per Common Share (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021
shares
| |
Basic and Diluted Earnings Per Common Share [Abstract] | |
Common stock equivalent shares (in shares) | 0 |
Significant Accounting Policies, Goodwill and Other Intangible Assets (Details) - Core Deposit Intangible [Member] $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Goodwill and Other Intangible Assets [Abstract] | |
Estimated useful life | 10 years |
Future estimated amortization expense for CDI [Abstract] | |
2021 | $ 153 |
2022 | 593 |
2023 | 573 |
2024 | 549 |
2025 | 522 |
Thereafter | 1,165 |
Total | $ 3,555 |
Investment Securities, Securities Held-to-Maturity (Details) - USD ($) |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
|||||
Amortized cost, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | ||||||||
Amortized cost | $ 550,618,000 | $ 68,933,000 | $ 69,913,000 | |||||
Gross unrealized gains | 816,000 | 1,116,000 | 1,142,000 | |||||
Gross unrealized losses | 11,126,000 | 0 | 0 | |||||
Fair value | 540,308,000 | 70,049,000 | 71,055,000 | |||||
Obligations of States and Political Subdivisions [Member] | ||||||||
Amortized cost, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | ||||||||
Amortized cost | 62,936,000 | 68,933,000 | 69,913,000 | |||||
Gross unrealized gains | 768,000 | 1,116,000 | 1,142,000 | |||||
Gross unrealized losses | 0 | 0 | 0 | |||||
Fair value | 63,704,000 | $ 70,049,000 | $ 71,055,000 | |||||
Mortgage Backed Securities [Member] | ||||||||
Securities Transferred [Abstract] | ||||||||
Fair value of securities transferred to held-to-maturity category | $ 316,900,000 | |||||||
Unrealized pre-tax loss from securities transferred | $ 2,000 | |||||||
Amortized cost, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | ||||||||
Amortized cost | [1],[2] | 487,682,000 | ||||||
Gross unrealized gains | [1],[2] | 48,000 | ||||||
Gross unrealized losses | [1],[2] | 11,126,000 | ||||||
Fair value | [1],[2] | $ 476,604,000 | ||||||
|
Investment Securities, Contractual Maturity (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|---|
Amortized Cost [Abstract] | |||
Within one year | $ 51,503 | ||
After one year through five years | 5,100 | ||
After five years through ten years | 563 | ||
After ten years | 6,161 | ||
Amortized cost, excluding investment securities not due at a single maturity date | 63,327 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 270,667 | ||
Amortized cost | 333,994 | $ 789,175 | $ 550,053 |
Fair Value [Abstract] | |||
Within one year | 51,569 | ||
After one year through five years | 5,262 | ||
After five years through ten years | 566 | ||
After ten years | 6,185 | ||
Fair value, excluding investment securities not due at a single maturity date | 63,582 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 269,569 | ||
Fair value | 333,151 | 807,732 | 568,536 |
Amortized Cost [Abstract] | |||
Within one year | 308 | ||
After one year through five years | 6,969 | ||
After five years through ten years | 19,543 | ||
After ten years | 36,116 | ||
Book value, excluding investment securities not due at a single maturity date | 62,936 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 487,682 | ||
Amortized cost | 550,618 | 68,933 | 69,913 |
Fair Value [Abstract] | |||
Within one year | 308 | ||
After one year through five years | 7,012 | ||
After five years through ten years | 20,254 | ||
After ten years | 36,130 | ||
Fair value, excluding investment securities not due at a single maturity date | 63,704 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 476,604 | ||
Fair value | $ 540,308 | $ 70,049 | $ 71,055 |
Investment Securities, Securities in Continuous Unrealized Loss Position (Details) |
Sep. 30, 2021
USD ($)
Security
|
Dec. 31, 2020
USD ($)
Security
|
Sep. 30, 2020
USD ($)
Security
|
---|---|---|---|
Investment Securities, Qualitative Disclosure [Abstract] | |||
Number of investment securities held | Security | 590 | ||
Less than 12 months, number of positions | Security | 68 | ||
12 months or more, number of positions | Security | 60 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 172,057,000 | $ 25,924,000 | $ 33,416,000 |
12 months or more, fair value | 2,257,000 | 6,303,000 | 6,004,000 |
Total, fair value | 174,314,000 | 32,227,000 | 39,420,000 |
Less than 12 months, unrealized loss | 5,340,000 | 66,000 | 137,000 |
12 months or more, unrealized loss | 44,000 | 93,000 | 102,000 |
Total, unrealized loss | 5,384,000 | $ 159,000 | $ 239,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 468,360,000 | ||
12 months or more, fair value | 0 | ||
Total, fair value | 468,360,000 | ||
Less than 12 months, unrealized loss | 11,126,000 | ||
12 months or more, unrealized loss | 0 | ||
Total, unrealized loss | 11,126,000 | ||
Number of HTM investments with gross unrealized losses | Security | 0 | 0 | |
Mortgage-Backed Securities [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 468,360,000 | ||
12 months or more, fair value | 0 | ||
Total, fair value | 468,360,000 | ||
Less than 12 months, unrealized loss | 11,126,000 | ||
12 months or more, unrealized loss | 0 | ||
Total, unrealized loss | $ 11,126,000 | ||
Obligations of States and Political Subdivisions [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of HTM investments with gross unrealized losses | Security | 0 | 0 | 0 |
U.S. Treasury Notes [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, number of positions | Security | 0 | 0 | 0 |
U.S. Government Agency SBA [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 188,000 | $ 1,741,000 | $ 2,312,000 |
12 months or more, fair value | 2,141,000 | 6,126,000 | 5,810,000 |
Total, fair value | 2,329,000 | 7,867,000 | 8,122,000 |
Less than 12 months, unrealized loss | 1,000 | 3,000 | 4,000 |
12 months or more, unrealized loss | 42,000 | 90,000 | 98,000 |
Total, unrealized loss | $ 43,000 | 93,000 | 102,000 |
Less than 12 months, number of positions | Security | 4 | ||
12 months or more, number of positions | Security | 44 | ||
Mortgage-Backed Securities [Member] | |||
Investment Securities, Qualitative Disclosure [Abstract] | |||
Less than 12 months, number of positions | Security | 64 | ||
12 months or more, number of positions | Security | 16 | ||
Total, unrealized loss | $ 16,500,000 | 48,000 | 39,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 171,869,000 | 20,142,000 | 20,741,000 |
12 months or more, fair value | 116,000 | 177,000 | 194,000 |
Total, fair value | 171,985,000 | 20,319,000 | 20,935,000 |
Less than 12 months, unrealized loss | 5,339,000 | 45,000 | 35,000 |
12 months or more, unrealized loss | 2,000 | 3,000 | 4,000 |
Total, unrealized loss | $ 5,341,000 | 48,000 | 39,000 |
Corporate Securities [Member] | |||
Investment Securities, Qualitative Disclosure [Abstract] | |||
Number of investment securities held | Security | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 4,041,000 | 10,363,000 | |
12 months or more, fair value | 0 | 0 | |
Total, fair value | 4,041,000 | 10,363,000 | |
Less than 12 months, unrealized loss | 18,000 | 98,000 | |
12 months or more, unrealized loss | 0 | 0 | |
Total, unrealized loss | $ 0 | $ 18,000 | $ 98,000 |
Other Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, number of positions | Security | 0 |
Investment Securities, Proceeds from Sales (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Proceeds from sales and calls of securities [Abstract] | ||||
Gross proceeds | $ 1,450 | $ 50,620 | $ 301,320 | $ 53,620 |
Gross gains | 0 | 0 | 5,570 | 13 |
Gross losses | $ 0 | $ 0 | $ 3,016 | $ 0 |
Investment Securities, Pledged Securities (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|---|
Investment Securities [Abstract] | |||
Carrying amount of pledged securities | $ 445.2 | $ 439.7 | $ 333.2 |
Federal Home Loan Bank Stock and Other Equity Securities, at Cost (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|---|
Federal Home Loan Bank Stock and Other Equity Securities, at Cost [Abstract] | |||
FHLB stock and other equity securities | $ 15.5 | $ 12.7 | $ 12.7 |
Loans & Leases (Details) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2021
USD ($)
Loan
|
Dec. 31, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
|||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | $ 3,151,508 | $ 3,111,533 | $ 3,127,449 | ||
Less: Unearned Income | 11,707 | 11,941 | 15,518 | ||
Total Loans & Leases | 3,139,801 | 3,099,592 | 3,111,931 | ||
Less: Allowance for Credit Losses | 60,303 | 58,862 | 56,798 | ||
Loans & Leases, Net | 3,079,498 | 3,040,730 | 3,055,133 | ||
Federal Home Loan Bank [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Collateral on borrowing lines | 1,000,000 | ||||
Maximum borrowing capacity | 749,500 | ||||
Federal Reserve Bank [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Collateral on borrowing lines | 742,400 | ||||
Maximum borrowing capacity | 467,800 | ||||
Paycheck Protection Program [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | 121,182 | 224,309 | 347,180 | ||
Loans funded for the small business customers | $ 494,900 | ||||
Paycheck Protection Program [Member] | Minimum [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Number of small business customers | Loan | 2,000 | ||||
Commercial Real Estate [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | $ 1,126,230 | 971,326 | 887,999 | ||
Total Loans & Leases | 1,114,149 | 958,980 | 871,623 | ||
Agricultural Real Estate [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | 656,337 | 643,014 | 639,172 | ||
Total Loans & Leases | 656,337 | 643,014 | 639,172 | ||
Real Estate Construction [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | 178,451 | 185,741 | 186,623 | ||
Total Loans & Leases | 178,451 | 185,741 | 186,623 | ||
Residential 1st Mortgages [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | 309,728 | 299,379 | 293,489 | ||
Total Loans & Leases | 309,728 | 299,379 | 293,489 | ||
Home Equity Lines & Loans [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | 31,664 | 34,239 | 35,875 | ||
Total Loans & Leases | 31,664 | 34,239 | 35,875 | ||
Agricultural [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | 235,085 | 264,372 | 252,031 | ||
Total Loans & Leases | 235,085 | 264,372 | 252,031 | ||
Commercial [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | 394,326 | 374,816 | 367,052 | ||
Total Loans & Leases | 394,326 | 374,816 | 367,052 | ||
Consumer & Other [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | [1] | 129,665 | 235,529 | 359,697 | |
Total Loans & Leases | 129,665 | 235,529 | 359,697 | ||
Leases [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Gross Loans & Leases | 90,022 | 103,117 | 105,511 | ||
Total Loans & Leases | $ 90,396 | $ 103,522 | $ 106,369 | ||
|
Allowance for Credit Losses, Allocation of The Allowance For Credit Losses by Portfolio Segment and By Impairment Methodology (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | $ 60,229,000 | $ 55,058,000 | $ 58,862,000 | $ 55,012,000 | $ 55,012,000 |
Charge-Offs | (17,000) | (25,000) | (33,000) | (487,000) | (1,174,000) |
Recoveries | 91,000 | 65,000 | 224,000 | 273,000 | 524,000 |
Provision | 0 | 1,700,000 | 1,250,000 | 2,000,000 | 4,500,000 |
Ending Balance | 60,303,000 | 56,798,000 | 60,303,000 | 56,798,000 | 58,862,000 |
Ending Balance Individually Evaluated for Impairment | 140,000 | 287,000 | 140,000 | 287,000 | 289,000 |
Ending Balance Collectively Evaluated for Impairment | 60,163,000 | 56,511,000 | 60,163,000 | 56,511,000 | 58,573,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 3,139,801,000 | 3,111,931,000 | 3,139,801,000 | 3,111,931,000 | 3,099,592,000 |
Ending Balance Individually Evaluated for Impairment | 8,475,000 | 9,218,000 | 8,475,000 | 9,218,000 | 9,238,000 |
Ending Balance Collectively Evaluated for Impairment | 3,131,326,000 | 3,102,713,000 | 3,131,326,000 | 3,102,713,000 | 3,090,354,000 |
Commercial Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 28,890,000 | 21,423,000 | 27,679,000 | 11,053,000 | 11,053,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | (11,000) | 2,866,000 | 1,200,000 | 13,236,000 | 16,626,000 |
Ending Balance | 28,879,000 | 24,289,000 | 28,879,000 | 24,289,000 | 27,679,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 28,879,000 | 24,289,000 | 28,879,000 | 24,289,000 | 27,679,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 1,114,149,000 | 871,623,000 | 1,114,149,000 | 871,623,000 | 958,980,000 |
Ending Balance Individually Evaluated for Impairment | 74,000 | 108,000 | 74,000 | 108,000 | 104,000 |
Ending Balance Collectively Evaluated for Impairment | 1,114,075,000 | 871,515,000 | 1,114,075,000 | 871,515,000 | 958,876,000 |
Agricultural Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 9,107,000 | 9,021,000 | 8,633,000 | 15,128,000 | 15,128,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | 320,000 | (229,000) | 794,000 | (6,336,000) | (6,495,000) |
Ending Balance | 9,427,000 | 8,792,000 | 9,427,000 | 8,792,000 | 8,633,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 9,427,000 | 8,792,000 | 9,427,000 | 8,792,000 | 8,633,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 656,337,000 | 639,172,000 | 656,337,000 | 639,172,000 | 643,014,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 5,629,000 | 0 | 5,629,000 | 5,629,000 |
Ending Balance Collectively Evaluated for Impairment | 656,337,000 | 633,543,000 | 656,337,000 | 633,543,000 | 637,385,000 |
Real Estate Construction [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,405,000 | 1,452,000 | 1,643,000 | 1,949,000 | 1,949,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | 28,000 | 116,000 | (210,000) | (381,000) | (306,000) |
Ending Balance | 1,433,000 | 1,568,000 | 1,433,000 | 1,568,000 | 1,643,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 1,433,000 | 1,568,000 | 1,433,000 | 1,568,000 | 1,643,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 178,451,000 | 186,623,000 | 178,451,000 | 186,623,000 | 185,741,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 178,451,000 | 186,623,000 | 178,451,000 | 186,623,000 | 185,741,000 |
Residential 1st Mortgages [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 957,000 | 1,771,000 | 960,000 | 855,000 | 855,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 15,000 | 3,000 | 74,000 | 49,000 | 52,000 |
Provision | (8,000) | (825,000) | (70,000) | 45,000 | 53,000 |
Ending Balance | 964,000 | 949,000 | 964,000 | 949,000 | 960,000 |
Ending Balance Individually Evaluated for Impairment | 88,000 | 118,000 | 88,000 | 118,000 | 117,000 |
Ending Balance Collectively Evaluated for Impairment | 876,000 | 831,000 | 876,000 | 831,000 | 843,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 309,728,000 | 293,489,000 | 309,728,000 | 293,489,000 | 299,379,000 |
Ending Balance Individually Evaluated for Impairment | 1,764,000 | 2,390,000 | 1,764,000 | 2,390,000 | 2,365,000 |
Ending Balance Collectively Evaluated for Impairment | 307,964,000 | 291,099,000 | 307,964,000 | 291,099,000 | 297,014,000 |
Home Equity Lines & Loans [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,899,000 | 2,239,000 | 2,024,000 | 2,675,000 | 2,675,000 |
Charge-Offs | 0 | 0 | 0 | (7,000) | (7,000) |
Recoveries | 6,000 | 31,000 | 17,000 | 65,000 | 78,000 |
Provision | 7,000 | (154,000) | (129,000) | (617,000) | (722,000) |
Ending Balance | 1,912,000 | 2,116,000 | 1,912,000 | 2,116,000 | 2,024,000 |
Ending Balance Individually Evaluated for Impairment | 6,000 | 8,000 | 6,000 | 8,000 | 8,000 |
Ending Balance Collectively Evaluated for Impairment | 1,906,000 | 2,108,000 | 1,906,000 | 2,108,000 | 2,016,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 31,664,000 | 35,875,000 | 31,664,000 | 35,875,000 | 34,239,000 |
Ending Balance Individually Evaluated for Impairment | 112,000 | 164,000 | 112,000 | 164,000 | 158,000 |
Ending Balance Collectively Evaluated for Impairment | 31,552,000 | 35,711,000 | 31,552,000 | 35,711,000 | 34,081,000 |
Agricultural [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 4,552,000 | 4,790,000 | 4,814,000 | 8,076,000 | 8,076,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 24,000 | 24,000 | 29,000 | 54,000 | 81,000 |
Provision | 29,000 | (142,000) | (238,000) | (3,458,000) | (3,343,000) |
Ending Balance | 4,605,000 | 4,672,000 | 4,605,000 | 4,672,000 | 4,814,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 92,000 | 0 | 92,000 | 92,000 |
Ending Balance Collectively Evaluated for Impairment | 4,605,000 | 4,580,000 | 4,605,000 | 4,580,000 | 4,722,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 235,085,000 | 252,031,000 | 235,085,000 | 252,031,000 | 264,372,000 |
Ending Balance Individually Evaluated for Impairment | 6,129,000 | 498,000 | 6,129,000 | 498,000 | 495,000 |
Ending Balance Collectively Evaluated for Impairment | 228,956,000 | 251,533,000 | 228,956,000 | 251,533,000 | 263,877,000 |
Commercial [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 9,920,000 | 10,043,000 | 9,961,000 | 11,466,000 | 11,466,000 |
Charge-Offs | 0 | 0 | 0 | (426,000) | (1,101,000) |
Recoveries | 38,000 | 0 | 83,000 | 80,000 | 280,000 |
Provision | 824,000 | (50,000) | 738,000 | (1,127,000) | (684,000) |
Ending Balance | 10,782,000 | 9,993,000 | 10,782,000 | 9,993,000 | 9,961,000 |
Ending Balance Individually Evaluated for Impairment | 6,000 | 13,000 | 6,000 | 13,000 | 20,000 |
Ending Balance Collectively Evaluated for Impairment | 10,776,000 | 9,980,000 | 10,776,000 | 9,980,000 | 9,941,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 394,326,000 | 367,052,000 | 394,326,000 | 367,052,000 | 374,816,000 |
Ending Balance Individually Evaluated for Impairment | 218,000 | 235,000 | 218,000 | 235,000 | 233,000 |
Ending Balance Collectively Evaluated for Impairment | 394,108,000 | 366,817,000 | 394,108,000 | 366,817,000 | 374,583,000 |
Consumer & Other [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 281,000 | 359,000 | 333,000 | 456,000 | 456,000 |
Charge-Offs | (17,000) | (25,000) | (33,000) | (54,000) | (66,000) |
Recoveries | 8,000 | 7,000 | 21,000 | 25,000 | 33,000 |
Provision | 26,000 | 23,000 | (23,000) | (63,000) | (90,000) |
Ending Balance | 298,000 | 364,000 | 298,000 | 364,000 | 333,000 |
Ending Balance Individually Evaluated for Impairment | 40,000 | 56,000 | 40,000 | 56,000 | 52,000 |
Ending Balance Collectively Evaluated for Impairment | 258,000 | 308,000 | 258,000 | 308,000 | 281,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 129,665,000 | 359,697,000 | 129,665,000 | 359,697,000 | 235,529,000 |
Ending Balance Individually Evaluated for Impairment | 178,000 | 194,000 | 178,000 | 194,000 | 254,000 |
Ending Balance Collectively Evaluated for Impairment | 129,487,000 | 359,503,000 | 129,487,000 | 359,503,000 | 235,275,000 |
Leases [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,639,000 | 2,800,000 | 1,731,000 | 3,162,000 | 3,162,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | (780,000) | 114,000 | (872,000) | (248,000) | (1,431,000) |
Ending Balance | 859,000 | 2,914,000 | 859,000 | 2,914,000 | 1,731,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 859,000 | 2,914,000 | 859,000 | 2,914,000 | 1,731,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 90,396,000 | 106,369,000 | 90,396,000 | 106,369,000 | 103,522,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 90,396,000 | 106,369,000 | 90,396,000 | 106,369,000 | 103,522,000 |
Unallocated [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,579,000 | 1,160,000 | 1,084,000 | 192,000 | 192,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | (435,000) | (19,000) | 60,000 | 949,000 | 892,000 |
Ending Balance | 1,144,000 | 1,141,000 | 1,144,000 | 1,141,000 | 1,084,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 1,144,000 | 1,141,000 | 1,144,000 | 1,141,000 | 1,084,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 0 | 0 | 0 | 0 | 0 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Restructured Loans [Member] | |||||
Loans & Leases [Abstract] | |||||
Ending Balance Individually Evaluated for Impairment | $ 327,200 | $ 828,500 | $ 327,200 | $ 828,500 | $ 876,000 |
Allowance for Credit Losses, Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | $ 3,139,801 | $ 3,099,592 | $ 3,111,931 | |||||||||
Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 3,102,315 | [1] | 3,071,556 | [2] | 3,082,975 | [3] | ||||||
Watch [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 954,400 | 958,200 | 947,400 | |||||||||
Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 20,671 | 9,405 | 8,080 | |||||||||
Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 16,815 | 18,631 | 20,876 | |||||||||
Doubtful [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 0 | 0 | 0 | |||||||||
Loss [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 0 | 0 | 0 | |||||||||
Commercial Real Estate [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 1,114,149 | 958,980 | 871,623 | |||||||||
Commercial Real Estate [Member] | Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 1,098,929 | [1] | 946,621 | [2] | 861,874 | [3] | ||||||
Commercial Real Estate [Member] | Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 7,371 | 7,849 | 5,239 | |||||||||
Commercial Real Estate [Member] | Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 7,849 | 4,510 | 4,510 | |||||||||
Agricultural Real Estate [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 656,337 | 643,014 | 639,172 | |||||||||
Agricultural Real Estate [Member] | Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 646,486 | [1] | 631,043 | [2] | 624,859 | [3] | ||||||
Agricultural Real Estate [Member] | Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 3,312 | 400 | 1,525 | |||||||||
Agricultural Real Estate [Member] | Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 6,539 | 11,571 | 12,788 | |||||||||
Real Estate Construction [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 178,451 | 185,741 | 186,623 | |||||||||
Real Estate Construction [Member] | Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 178,451 | [1] | 185,741 | [2] | 186,623 | [3] | ||||||
Real Estate Construction [Member] | Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 0 | 0 | 0 | |||||||||
Real Estate Construction [Member] | Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 0 | 0 | 0 | |||||||||
Residential 1st Mortgages [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 309,728 | 299,379 | 293,489 | |||||||||
Residential 1st Mortgages [Member] | Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 308,960 | [1] | 298,689 | [2] | 292,792 | [3] | ||||||
Residential 1st Mortgages [Member] | Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 0 | 0 | 0 | |||||||||
Residential 1st Mortgages [Member] | Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 768 | 690 | 697 | |||||||||
Home Equity Lines & Loans [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 31,664 | 34,239 | 35,875 | |||||||||
Home Equity Lines & Loans [Member] | Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 31,490 | [1] | 34,058 | [2] | 35,691 | [3] | ||||||
Home Equity Lines & Loans [Member] | Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 0 | 0 | 0 | |||||||||
Home Equity Lines & Loans [Member] | Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 174 | 181 | 184 | |||||||||
Agricultural [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 235,085 | 264,372 | 252,031 | |||||||||
Agricultural [Member] | Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 233,493 | [1] | 263,781 | [2] | 251,108 | [3] | ||||||
Agricultural [Member] | Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 1,018 | 96 | 0 | |||||||||
Agricultural [Member] | Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 574 | 495 | 923 | |||||||||
Commercial [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 394,326 | 374,816 | 367,052 | |||||||||
Commercial [Member] | Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 384,660 | [1] | 373,038 | [2] | 364,465 | [3] | ||||||
Commercial [Member] | Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 8,970 | 1,060 | 1,316 | |||||||||
Commercial [Member] | Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 696 | 718 | 1,271 | |||||||||
Consumer & Other [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 129,665 | 235,529 | 359,697 | |||||||||
Consumer & Other [Member] | Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 129,450 | [1] | 235,063 | [2] | 359,194 | [3] | ||||||
Consumer & Other [Member] | Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 0 | 0 | 0 | |||||||||
Consumer & Other [Member] | Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 215 | 466 | 503 | |||||||||
Leases [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 90,396 | 103,522 | 106,369 | |||||||||
Leases [Member] | Pass [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 90,396 | [1] | 103,522 | [2] | 106,369 | [3] | ||||||
Leases [Member] | Special Mention [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | 0 | 0 | 0 | |||||||||
Leases [Member] | Substandard [Member] | ||||||||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||||||||
Loans & Leases | $ 0 | $ 0 | $ 0 | |||||||||
|
Allowance for Credit Losses, Aging Analysis of Loan & Lease Portfolio Including Unearned Income, Past Due (Details) - USD ($) |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | $ 0 | $ 0 | $ 0 |
Nonaccrual | 516,000 | 498,000 | 495,000 |
Total Loans & Leases | 3,139,801,000 | 3,111,931,000 | 3,099,592,000 |
Interest income forgone on nonaccrual loans | 35,700 | 15,530 | 22,000 |
Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 1,126,000 | 1,197,000 | 506,000 |
30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 610,000 | 699,000 | 11,000 |
60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 3,138,675,000 | 3,110,734,000 | 3,099,086,000 |
Commercial Real Estate [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 1,114,149,000 | 871,623,000 | 958,980,000 |
Commercial Real Estate [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 453,000 | 0 | 0 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 453,000 | 0 | 0 |
Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Commercial Real Estate [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 1,113,696,000 | 871,623,000 | 958,980,000 |
Agricultural Real Estate [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 19,000 | 498,000 | 495,000 |
Total Loans & Leases | 656,337,000 | 639,172,000 | 643,014,000 |
Agricultural Real Estate [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 19,000 | 498,000 | 495,000 |
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Agricultural Real Estate [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 656,318,000 | 638,674,000 | 642,519,000 |
Real Estate Construction [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 178,451,000 | 186,623,000 | 185,741,000 |
Real Estate Construction [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 85,000 | 0 |
Real Estate Construction [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 85,000 | 0 |
Real Estate Construction [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Real Estate Construction [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 178,451,000 | 186,538,000 | 185,741,000 |
Residential 1st Mortgages [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 309,728,000 | 293,489,000 | 299,379,000 |
Residential 1st Mortgages [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 102,000 | 0 | 0 |
Residential 1st Mortgages [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 102,000 | 0 | 0 |
Residential 1st Mortgages [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Residential 1st Mortgages [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 309,626,000 | 293,489,000 | 299,379,000 |
Home Equity Lines & Loans [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 31,664,000 | 35,875,000 | 34,239,000 |
Home Equity Lines & Loans [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Home Equity Lines & Loans [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Home Equity Lines & Loans [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Home Equity Lines & Loans [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 31,664,000 | 35,875,000 | 34,239,000 |
Agricultural [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 497,000 | 0 | 0 |
Total Loans & Leases | 235,085,000 | 252,031,000 | 264,372,000 |
Agricultural [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 497,000 | 0 | 0 |
Agricultural [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Agricultural [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Agricultural [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 234,588,000 | 252,031,000 | 264,372,000 |
Commercial [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 394,326,000 | 367,052,000 | 374,816,000 |
Commercial [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 50,000 | 547,000 | 0 |
Commercial [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 50,000 | 547,000 | 0 |
Commercial [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Commercial [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 394,276,000 | 366,505,000 | 374,816,000 |
Consumer & Other [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 129,665,000 | 359,697,000 | 235,529,000 |
Consumer & Other [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 5,000 | 67,000 | 11,000 |
Consumer & Other [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 5,000 | 67,000 | 11,000 |
Consumer & Other [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Consumer & Other [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 129,660,000 | 359,630,000 | 235,518,000 |
Leases [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 90,396,000 | 106,369,000 | 103,522,000 |
Leases [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Leases [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Leases [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Leases [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | $ 90,396,000 | $ 106,369,000 | $ 103,522,000 |
Allowance for Credit Losses, Impaired Loans & Lease (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
With no related allowance recorded [Abstract] | |||||
Recorded Investment | $ 6,202 | $ 5,718 | $ 6,202 | $ 5,718 | $ 5,716 |
Unpaid Principal Balance | 6,245 | 5,719 | 6,245 | 5,719 | 5,716 |
Average Recorded Investment | 6,207 | 5,674 | 6,098 | 7,128 | 6,772 |
Interest Income Recognized | 101 | 90 | 372 | 313 | 403 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 1,951 | 2,672 | 1,951 | 2,672 | 2,651 |
Unpaid Principal Balance | 2,179 | 2,949 | 2,179 | 2,949 | 2,929 |
Related Allowance | 124 | 248 | 124 | 248 | 248 |
Average Recorded Investment | 2,040 | 2,603 | 2,217 | 3,203 | 2,603 |
Interest Income Recognized | 24 | 42 | 80 | 139 | 171 |
Total [Abstract] | |||||
Recorded Investment | 8,153 | 8,390 | 8,153 | 8,390 | 8,367 |
Unpaid Principal Balance | 8,424 | 8,668 | 8,424 | 8,668 | 8,645 |
Related Allowance | 124 | 248 | 124 | 248 | 248 |
Average Recorded Investment | 8,247 | 8,277 | 8,315 | 10,331 | 9,375 |
Interest Income Recognized | 125 | 132 | 452 | 452 | 574 |
Commercial Real Estate [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 65 | 84 | 65 | 84 | 84 |
Unpaid Principal Balance | 65 | 84 | 65 | 84 | 84 |
Average Recorded Investment | 73 | 42 | 52 | 991 | 764 |
Interest Income Recognized | 1 | 2 | 2 | 33 | 35 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 42 | 28 | 498 | 21 |
Interest Income Recognized | 0 | 0 | 3 | 1 | 1 |
Total [Abstract] | |||||
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Agricultural Real Estate [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 5,613 | 5,629 | 5,613 | 5,629 | 5,629 |
Unpaid Principal Balance | 5,613 | 5,629 | 5,613 | 5,629 | 5,629 |
Average Recorded Investment | 5,621 | 5,629 | 5,626 | 5,633 | 5,629 |
Interest Income Recognized | 88 | 88 | 324 | 264 | 352 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 183 | 137 | ||
Interest Income Recognized | 0 | 0 | 0 | ||
Total [Abstract] | |||||
Related Allowance | 0 | 0 | 0 | ||
Residential 1st Mortgages [Member] | |||||
With an allowance recorded [Abstract] | |||||
Recorded Investment | 1,503 | 1,686 | 1,503 | 1,686 | 1,671 |
Unpaid Principal Balance | 1,719 | 1,909 | 1,719 | 1,909 | 1,895 |
Related Allowance | 75 | 84 | 75 | 84 | 84 |
Average Recorded Investment | 1,585 | 1,694 | 1,638 | 1,625 | 1,652 |
Interest Income Recognized | 16 | 18 | 52 | 58 | 76 |
Total [Abstract] | |||||
Related Allowance | 75 | 84 | 75 | 84 | 84 |
Home Equity Lines & Loans [Member] | |||||
With an allowance recorded [Abstract] | |||||
Recorded Investment | 60 | 65 | 60 | 65 | 64 |
Unpaid Principal Balance | 71 | 76 | 71 | 76 | 75 |
Related Allowance | 3 | 3 | 3 | 3 | 3 |
Average Recorded Investment | 61 | 66 | 62 | 67 | 66 |
Interest Income Recognized | 1 | 1 | 3 | 3 | 4 |
Total [Abstract] | |||||
Related Allowance | 3 | 3 | 3 | 3 | 3 |
Agricultural [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 516 | 5 | 516 | 5 | 3 |
Unpaid Principal Balance | 559 | 6 | 559 | 6 | 3 |
Average Recorded Investment | 504 | 3 | 415 | 1 | 2 |
Interest Income Recognized | 12 | 0 | 46 | 0 | 0 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 0 | 492 | 0 | 492 | 492 |
Unpaid Principal Balance | 0 | 534 | 0 | 534 | 534 |
Related Allowance | 0 | 92 | 0 | 92 | 92 |
Average Recorded Investment | 0 | 483 | 82 | 333 | 410 |
Interest Income Recognized | 0 | 7 | 0 | 52 | 59 |
Total [Abstract] | |||||
Related Allowance | 0 | 92 | 0 | 92 | 92 |
Commercial [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 8 | 0 | 8 | 0 | 0 |
Unpaid Principal Balance | 8 | 0 | 8 | 0 | 0 |
Average Recorded Investment | 9 | 0 | 5 | 503 | 377 |
Interest Income Recognized | 0 | 0 | 0 | 16 | 16 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 210 | 235 | 210 | 235 | 234 |
Unpaid Principal Balance | 210 | 235 | 210 | 235 | 234 |
Related Allowance | 6 | 13 | 6 | 13 | 13 |
Average Recorded Investment | 213 | 123 | 222 | 301 | 123 |
Interest Income Recognized | 4 | 13 | 12 | 15 | 18 |
Total [Abstract] | |||||
Related Allowance | 6 | 13 | 6 | 13 | 13 |
Consumer & Other [Member] | |||||
With an allowance recorded [Abstract] | |||||
Recorded Investment | 178 | 194 | 178 | 194 | 190 |
Unpaid Principal Balance | 179 | 195 | 179 | 195 | 191 |
Related Allowance | 40 | 56 | 40 | 56 | 56 |
Average Recorded Investment | 181 | 195 | 185 | 196 | 194 |
Interest Income Recognized | 3 | 3 | 10 | 10 | 13 |
Total [Abstract] | |||||
Related Allowance | $ 40 | $ 56 | $ 40 | $ 56 | $ 56 |
Allowance for Credit Losses, Loans or Leases by Class Modified as Troubled Debt Restructured Loans (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021
USD ($)
Loan
|
Sep. 30, 2020
USD ($)
Loan
|
Sep. 30, 2021
USD ($)
Loan
|
Sep. 30, 2020
USD ($)
Loan
|
Dec. 31, 2020
USD ($)
Loan
|
|
CARES Act [Abstract] | |||||
Loans restructured under the CARES act | $ 278,100,000 | ||||
Formal foreclosure proceedings in process for consumer mortgage loans secured by residential real estate properties | $ 0 | $ 0 | 0 | $ 0 | $ 0 |
Troubled Debt Restructured Loans [Abstract] | |||||
Specific reserves allocated to troubled debt restructured loans & leases | 123,800 | 156,000 | 123,800 | 156,000 | 158,000 |
Troubled debt restructured loans | 8,100,000 | 8,100,000 | |||
Commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 0 | 1 | 0 | 6 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 224,000 | $ 875,000 | $ 875,000 | ||
Post-Modification Outstanding Recorded Investment | $ 224,000 | 875,000 | 875,000 | ||
Increase in allowance for loan losses due to TDR | $ 120,000 | ||||
TDR's charge-offs | $ 7,000 | ||||
Number of loans modified as troubled debt restructurings with subsequent payment defaults | Loan | 0 | 0 | 0 | 0 | 0 |
Threshold period after which loan is considered to be in payment default | 90 days | ||||
Stated Interest Rate Reduction [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Period of modifications | 5 years | 5 years | |||
Extended Maturity [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Period of modifications | 10 years | ||||
Extended Maturity [Member] | Minimum [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Period of modifications | 3 months | ||||
Extended Maturity [Member] | Maximum [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Period of modifications | 10 years | ||||
Performing [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Troubled debt restructured loans | $ 7,600,000 | $ 7,900,000 | $ 7,600,000 | $ 7,900,000 | $ 7,900,000 |
Residential 1st Mortgages [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 0 | 2 | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 156,000 | $ 156,000 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 156,000 | $ 156,000 | ||
Agricultural [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 0 | 3 | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 495,000 | $ 495,000 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 495,000 | $ 495,000 | ||
Commercial [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 1 | 1 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 224,000 | $ 224,000 | $ 224,000 | ||
Post-Modification Outstanding Recorded Investment | $ 224,000 | $ 224,000 | $ 224,000 |
Fair Value Measurements, Summary (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Impaired Loans [Member] | |
Fair Value Measurements [Abstract] | |
Percentage of selling costs | 10.00% |
ORE [Member] | |
Fair Value Measurements [Abstract] | |
Percentage of selling costs | 10.00% |
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | $ 333,151 | $ 568,536 | $ 333,151 | $ 568,536 | $ 807,732 | ||||||
Level 1 to Level 2 transfers | 0 | 0 | 0 | 0 | |||||||
Level 2 to Level 1 transfers | 0 | 0 | 0 | 0 | |||||||
Transfer into Level 3 | 0 | 0 | 0 | 0 | |||||||
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |||||||
U.S. Treasury Notes [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 10,150 | 95,342 | 10,150 | 95,342 | 15,288 | ||||||
U.S. Government Agency SBA [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 6,919 | 8,429 | 6,919 | 8,429 | 8,160 | ||||||
Mortgage-Backed Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | [1] | 269,569 | [2] | 439,274 | 269,569 | [2] | 439,274 | 737,873 | |||
Corporate Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 25,063 | 25,063 | 45,919 | ||||||||
Other [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 46,513 | 428 | 46,513 | 428 | 492 | ||||||
Recurring [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 333,151 | 568,536 | 333,151 | 568,536 | 807,732 | ||||||
Recurring [Member] | U.S. Treasury Notes [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 10,150 | 95,342 | 10,150 | 95,342 | 15,288 | ||||||
Recurring [Member] | U.S. Government Agency SBA [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 6,919 | 8,429 | 6,919 | 8,429 | 8,160 | ||||||
Recurring [Member] | Mortgage-Backed Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 269,569 | 439,274 | 269,569 | 439,274 | 737,873 | ||||||
Recurring [Member] | Corporate Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 25,063 | 25,063 | 45,919 | ||||||||
Recurring [Member] | Other [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 46,513 | 428 | 46,513 | 428 | 492 | ||||||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 56,353 | 95,460 | 56,353 | 95,460 | 15,470 | ||||||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Notes [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 10,150 | 95,342 | 10,150 | 95,342 | 15,288 | ||||||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government Agency SBA [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | ||||||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage-Backed Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | ||||||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | ||||||||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 46,203 | 118 | 46,203 | 118 | 182 | ||||||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 276,798 | 473,076 | 276,798 | 473,076 | 792,262 | ||||||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | U.S. Treasury Notes [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | ||||||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | U.S. Government Agency SBA [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 6,919 | 8,429 | 6,919 | 8,429 | 8,160 | ||||||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Mortgage-Backed Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 269,569 | 439,274 | 269,569 | 439,274 | 737,873 | ||||||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 25,063 | 25,063 | 45,919 | ||||||||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Other [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 310 | 310 | 310 | 310 | 310 | ||||||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | ||||||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury Notes [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | ||||||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Government Agency SBA [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | ||||||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-Backed Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | ||||||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | ||||||||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | |||||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | |||||||||||
Investment Securities Available-for-Sale | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
|
Fair Value Measurements, Assets or Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - Nonrecurring [Member] - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|---|
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | $ 1,822 | $ 2,396 | $ 2,421 |
Other Real Estate | 873 | 873 | 873 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 2,695 | 3,269 | 3,294 |
Residential 1st Mortgage [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 1,423 | 1,584 | 1,599 |
Home Equity Lines & Loans [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 57 | 61 | 62 |
Agricultural [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 400 | 400 | |
Commercial [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 204 | 213 | 222 |
Consumer [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 138 | 138 | 138 |
Real Estate Construction [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Other Real Estate | 873 | 873 | 873 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate | 0 | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Residential 1st Mortgage [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Home Equity Lines & Loans [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Agricultural [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Consumer [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Construction [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Other Real Estate | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate | 0 | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Residential 1st Mortgage [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Home Equity Lines & Loans [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Agricultural [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | |
Other Observable Inputs (Level 2) [Member] | Commercial [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Consumer [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Real Estate Construction [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Other Real Estate | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 1,822 | 2,396 | 2,421 |
Other Real Estate | 873 | 873 | 873 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 2,695 | 3,269 | 3,294 |
Significant Unobservable Inputs (Level 3) [Member] | Residential 1st Mortgage [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 1,423 | 1,584 | 1,599 |
Significant Unobservable Inputs (Level 3) [Member] | Home Equity Lines & Loans [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 57 | 61 | 62 |
Significant Unobservable Inputs (Level 3) [Member] | Agricultural [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 400 | 400 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 204 | 213 | 222 |
Significant Unobservable Inputs (Level 3) [Member] | Consumer [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 138 | 138 | 138 |
Significant Unobservable Inputs (Level 3) [Member] | Real Estate Construction [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Other Real Estate | $ 873 | $ 873 | $ 873 |
Fair Value Measurements, Quantitative Information (Details) $ in Thousands |
Sep. 30, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
---|---|---|---|
Level 3 [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Minimum [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.0068 | 0.0072 | 0.0073 |
Level 3 [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Maximum [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.0402 | 0.0413 | 0.0416 |
Level 3 [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.0254 | 0.0257 | 0.0258 |
Level 3 [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Minimum [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.011 | 0.011 | 0.011 |
Level 3 [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Maximum [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.013 | 0.014 | 0.014 |
Level 3 [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.0120 | 0.0125 | 0.0128 |
Level 3 [Member] | Agricultural [Member] | Income Approach [Member] | Capitalization Rate [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | |
Level 3 [Member] | Agricultural [Member] | Income Approach [Member] | Capitalization Rate [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | |
Level 3 [Member] | Commercial [Member] | Income Approach [Member] | Capitalization Rate [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | 0.10 |
Level 3 [Member] | Commercial [Member] | Income Approach [Member] | Capitalization Rate [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | 0.10 |
Level 3 [Member] | Consumer [Member] | Income Approach [Member] | Capitalization Rate [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | ||
Level 3 [Member] | Consumer [Member] | Income Approach [Member] | Capitalization Rate [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | ||
Level 3 [Member] | Consumer [Member] | Income Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | |
Level 3 [Member] | Consumer [Member] | Income Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | |
Level 3 [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | |||
Quantitative Information [Abstract] | |||
Other real estate, measurement input | 0.10 | 0.10 | 0.10 |
Level 3 [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Other real estate, measurement input | 0.10 | 0.10 | 0.10 |
Nonrecurring [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | $ 1,822 | $ 2,396 | $ 2,421 |
Other real estate | 873 | 873 | 873 |
Nonrecurring [Member] | Residential 1st Mortgage [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 1,423 | 1,584 | 1,599 |
Nonrecurring [Member] | Home Equity Lines and Loans [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 57 | 61 | 62 |
Nonrecurring [Member] | Agricultural [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 400 | 400 | |
Nonrecurring [Member] | Commercial [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 204 | 213 | 222 |
Nonrecurring [Member] | Consumer [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 138 | 138 | 138 |
Nonrecurring [Member] | Real Estate Construction [Member] | |||
Quantitative Information [Abstract] | |||
Other real estate | 873 | 873 | 873 |
Nonrecurring [Member] | Level 3 [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 1,822 | 2,396 | 2,421 |
Other real estate | 873 | 873 | 873 |
Nonrecurring [Member] | Level 3 [Member] | Residential 1st Mortgage [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 1,423 | 1,584 | 1,599 |
Nonrecurring [Member] | Level 3 [Member] | Home Equity Lines and Loans [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 57 | 61 | 62 |
Nonrecurring [Member] | Level 3 [Member] | Agricultural [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 400 | 400 | |
Nonrecurring [Member] | Level 3 [Member] | Commercial [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 204 | 213 | 222 |
Nonrecurring [Member] | Level 3 [Member] | Consumer [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 138 | 138 | 138 |
Nonrecurring [Member] | Level 3 [Member] | Real Estate Construction [Member] | |||
Quantitative Information [Abstract] | |||
Other real estate | $ 873 | $ 873 | $ 873 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|---|
Assets [Abstract] | |||
Investment Securities Available-for-Sale | $ 333,151 | $ 807,732 | $ 568,536 |
Carrying Amount [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 870,763 | 383,837 | 358,368 |
Investment Securities Available-for-Sale | 333,151 | 807,732 | 568,536 |
Investment Securities Held-to-Maturity | 550,618 | 68,933 | 69,913 |
Loans & Leases, Net | 3,079,498 | 3,040,730 | 3,055,133 |
Accrued Interest Receivable | 18,762 | 20,333 | 22,596 |
Liabilities [Abstract] | |||
Deposits | 4,568,394 | 4,060,267 | 3,814,777 |
Subordinated Debentures | 10,310 | 10,310 | 10,310 |
Accrued Interest Payable | 451 | 1,383 | 1,618 |
Estimated Fair Value [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 870,763 | 383,837 | 358,368 |
Investment Securities Available-for-Sale | 333,151 | 807,732 | 568,536 |
Investment Securities Held-to-Maturity | 540,308 | 70,049 | 71,055 |
Loans & Leases, Net | 3,090,187 | 3,045,911 | 3,065,624 |
Accrued Interest Receivable | 18,762 | 20,333 | 22,596 |
Liabilities [Abstract] | |||
Deposits | 4,568,719 | 4,061,240 | 3,816,282 |
Subordinated Debentures | 6,830 | 6,888 | 6,518 |
Accrued Interest Payable | 451 | 1,383 | 1,618 |
Estimated Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 870,763 | 383,837 | 358,368 |
Investment Securities Available-for-Sale | 56,353 | 15,470 | 95,460 |
Investment Securities Held-to-Maturity | 0 | 0 | 0 |
Loans & Leases, Net | 0 | 0 | 0 |
Accrued Interest Receivable | 0 | 0 | 0 |
Liabilities [Abstract] | |||
Deposits | 4,174,561 | 3,638,400 | 3,354,528 |
Subordinated Debentures | 0 | 0 | 0 |
Accrued Interest Payable | 0 | 0 | 0 |
Estimated Fair Value [Member] | Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Investment Securities Available-for-Sale | 276,798 | 792,262 | 473,076 |
Investment Securities Held-to-Maturity | 499,432 | 26,262 | 28,244 |
Loans & Leases, Net | 0 | 0 | 0 |
Accrued Interest Receivable | 18,762 | 20,333 | 22,596 |
Liabilities [Abstract] | |||
Deposits | 0 | 0 | 0 |
Subordinated Debentures | 6,830 | 6,888 | 6,518 |
Accrued Interest Payable | 451 | 1,383 | 1,618 |
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Investment Securities Available-for-Sale | 0 | 0 | 0 |
Investment Securities Held-to-Maturity | 40,876 | 43,787 | 42,811 |
Loans & Leases, Net | 3,090,187 | 3,045,911 | 3,065,624 |
Accrued Interest Receivable | 0 | 0 | 0 |
Liabilities [Abstract] | |||
Deposits | 394,158 | 422,840 | 461,754 |
Subordinated Debentures | 0 | 0 | 0 |
Accrued Interest Payable | $ 0 | $ 0 | $ 0 |
Dividends and Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
May 13, 2021 |
Jul. 01, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Dividends [Abstract] | ||||||
Cash dividends declared per share of common stock (in dollars per share) | $ 7.50 | $ 7.25 | ||||
Basic Earnings per Common Share [Abstract] | ||||||
Net Income | $ 17,502 | $ 14,810 | $ 50,368 | $ 43,241 | ||
Weighted Average Number of Common Shares Outstanding (in shares) | 789,646 | 793,556 | 789,646 | 793,539 | ||
Basic Earnings Per Common Share (in dollars per share) | $ 22.16 | $ 18.66 | $ 63.79 | $ 54.49 | ||
Diluted Earnings Per Common Share (in dollars per share) | $ 22.16 | $ 18.66 | $ 63.79 | $ 54.49 | ||
Mid-Year Cash Dividend Declared in 2021 [Member] | ||||||
Dividends [Abstract] | ||||||
Dividend, declared date | May 13, 2021 | |||||
Cash dividends declared per share of common stock (in dollars per share) | $ 7.50 | |||||
Percentage increase in cash dividend per share | 3.40% | |||||
Dividends payable, date paid | Jul. 01, 2021 | |||||
Dividend, record date | Jun. 11, 2021 | |||||
Mid-Year Cash Dividend Declared in 2020 [Member] | ||||||
Dividends [Abstract] | ||||||
Cash dividends paid per share of common stock (in dollars per share) | $ 7.25 | |||||
Dividends payable, date paid | Jul. 01, 2020 |
Leases, Summary (Details) |
3 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021
USD ($)
|
Mar. 31, 2021
USD ($)
Lease
|
Dec. 31, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
|
Operating Leases [Abstract] | ||||
Lease extension option term | 5 years | |||
Operating lease ROU assets | $ 4,190,000 | $ 4,800,000 | $ 4,470,000 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Interest Receivable and Other Assets | Interest Receivable and Other Assets | ||
Operating lease liability | $ 4,286,000 | $ 4,920,000 | $ 4,550,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Interest Payable and Other Liabilities | Interest Payable and Other Liabilities | ||
Early termination of lease | Lease | 1 | |||
Addition (Reduction) in ROU assets | $ 302,000 | $ (482,000) | ||
Addition (Reduction) in lease liability | $ 302,000 | $ (494,000) | ||
Minimum [Member] | ||||
Operating Leases [Abstract] | ||||
Remaining lease term | 1 year | |||
Lease extension option term | 5 years | |||
Maximum [Member] | ||||
Operating Leases [Abstract] | ||||
Remaining lease term | 10 years | |||
Lease extension option term | 10 years |
Leases, Information Related to Operating Leases (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Cash Paid for Amounts Included in the Measurement of Lease Liabilities [Abstract] | |||
Operating Cash Flow from Operating Leases | $ 536 | $ 594 | $ 795 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | $ 302 | $ 0 | $ 0 |
Weighted-Average Remaining Lease Term - Operating Leases | 6 years 9 months 3 days | 7 years 3 months 14 days | 7 years 3 months 29 days |
Weighted-Average Discount Rate - Operating Leases | 2.60% | 3.20% | 2.90% |
Leases, Maturity of Remaining Lease Liability (Details) $ in Thousands |
Sep. 30, 2021
USD ($)
Lease
|
Dec. 31, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
---|---|---|---|
Maturity of Remaining Lease Liability [Abstract] | |||
2021 | $ 174 | ||
2022 | 702 | ||
2023 | 714 | ||
2024 | 730 | ||
2025 | 741 | ||
2026 and thereafter | 1,602 | ||
Total Lease Payments | 4,663 | ||
Less: Interest | (377) | ||
Present Value of Lease Liabilities | $ 4,286 | $ 4,920 | $ 4,550 |
Number of operating leases for office space that will expire after current period | Lease | 0 |
Leases, Lessor - Direct Financing Leases (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|---|
Lessor - Direct Financing Leases [Abstract] | |||
Net investment in direct financing leases | $ 90.4 | $ 103.5 | $ 106.4 |
Minimum [Member] | |||
Lessor - Direct Financing Leases [Abstract] | |||
Term of direct financing leases | 3 years | ||
Maximum [Member] | |||
Lessor - Direct Financing Leases [Abstract] | |||
Term of direct financing leases | 10 years |
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