x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2019 | |
or | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from __________ to __________ |
IOWA | 42-1230603 |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
1601 22nd Street, West Des Moines, Iowa | 50266 | ||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, no par value | WTBA | The Nasdaq Global Select Market |
Large accelerated filer | o | ||||
Accelerated filer | x | ||||
Non-accelerated filer | o | ||||
Smaller reporting company | x | ||||
Emerging growth company | o |
Page | ||
PART I. | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
West Bancorporation, Inc. and Subsidiary | ||||||||
Consolidated Balance Sheets | ||||||||
(unaudited) | ||||||||
(in thousands, except share and per share data) | September 30, 2019 | December 31, 2018 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 62,119 | $ | 46,369 | ||||
Federal funds sold | 67,168 | 1,105 | ||||||
Cash and cash equivalents | 129,287 | 47,474 | ||||||
Investment securities available for sale, at fair value | 410,371 | 453,758 | ||||||
Federal Home Loan Bank stock, at cost | 11,685 | 12,037 | ||||||
Loans | 1,836,730 | 1,721,830 | ||||||
Allowance for loan losses | (17,042 | ) | (16,689 | ) | ||||
Loans, net | 1,819,688 | 1,705,141 | ||||||
Premises and equipment, net | 30,057 | 21,491 | ||||||
Accrued interest receivable | 7,995 | 7,631 | ||||||
Bank-owned life insurance | 34,731 | 34,249 | ||||||
Deferred tax assets, net | 6,085 | 6,518 | ||||||
Other assets | 7,337 | 8,269 | ||||||
Total assets | $ | 2,457,236 | $ | 2,296,568 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 395,925 | $ | 400,530 | ||||
Interest-bearing demand | 322,487 | 336,089 | ||||||
Savings | 1,015,443 | 950,501 | ||||||
Time of $250 or more | 71,669 | 55,745 | ||||||
Other time | 219,283 | 151,664 | ||||||
Total deposits | 2,024,807 | 1,894,529 | ||||||
Federal funds purchased | 3,535 | 19,985 | ||||||
Subordinated notes, net | 20,435 | 20,425 | ||||||
Federal Home Loan Bank advances, net | 153,998 | 137,878 | ||||||
Long-term debt | 22,954 | 27,040 | ||||||
Accrued expenses and other liabilities | 27,370 | 5,688 | ||||||
Total liabilities | 2,253,099 | 2,105,545 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 8) | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock, $0.01 par value; authorized 50,000,000 shares; no shares issued and outstanding at September 30, 2019 and December 31, 2018 | — | — | ||||||
Common stock, no par value; authorized 50,000,000 shares; 16,379,752 and 16,295,494 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 3,000 | 3,000 | ||||||
Additional paid-in capital | 26,475 | 25,128 | ||||||
Retained earnings | 180,654 | 169,709 | ||||||
Accumulated other comprehensive loss | (5,992 | ) | (6,814 | ) | ||||
Total stockholders' equity | 204,137 | 191,023 | ||||||
Total liabilities and stockholders' equity | $ | 2,457,236 | $ | 2,296,568 |
West Bancorporation, Inc. and Subsidiary | ||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest income: | ||||||||||||||||
Loans, including fees | $ | 22,203 | $ | 18,347 | $ | 63,699 | $ | 51,989 | ||||||||
Investment securities: | ||||||||||||||||
Taxable | 2,445 | 2,296 | 7,405 | 5,995 | ||||||||||||
Tax-exempt | 353 | 1,199 | 1,675 | 3,867 | ||||||||||||
Federal funds sold | 611 | 78 | 819 | 336 | ||||||||||||
Total interest income | 25,612 | 21,920 | 73,598 | 62,187 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 6,771 | 4,768 | 19,405 | 11,578 | ||||||||||||
Federal funds purchased | 17 | 61 | 219 | 140 | ||||||||||||
Subordinated notes | 258 | 287 | 766 | 819 | ||||||||||||
Federal Home Loan Bank advances | 1,300 | 930 | 3,666 | 2,669 | ||||||||||||
Long-term debt | 150 | 187 | 499 | 579 | ||||||||||||
Total interest expense | 8,496 | 6,233 | 24,555 | 15,785 | ||||||||||||
Net interest income | 17,116 | 15,687 | 49,043 | 46,402 | ||||||||||||
Provision for loan losses | 300 | (400 | ) | 300 | (250 | ) | ||||||||||
Net interest income after provision for loan losses | 16,816 | 16,087 | 48,743 | 46,652 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 630 | 649 | 1,841 | 1,925 | ||||||||||||
Debit card usage fees | 426 | 422 | 1,235 | 1,254 | ||||||||||||
Trust services | 572 | 445 | 1,536 | 1,465 | ||||||||||||
Increase in cash value of bank-owned life insurance | 168 | 158 | 482 | 468 | ||||||||||||
Realized investment securities gains (losses), net | 1 | (78 | ) | (64 | ) | (103 | ) | |||||||||
Other income | 361 | 518 | 1,246 | 1,041 | ||||||||||||
Total noninterest income | 2,158 | 2,114 | 6,276 | 6,050 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 5,440 | 4,774 | 16,324 | 14,062 | ||||||||||||
Occupancy | 1,379 | 1,250 | 3,956 | 3,731 | ||||||||||||
Data processing | 695 | 670 | 2,091 | 2,020 | ||||||||||||
FDIC insurance | — | 172 | 404 | 499 | ||||||||||||
Professional fees | 204 | 196 | 647 | 608 | ||||||||||||
Director fees | 233 | 248 | 742 | 758 | ||||||||||||
Write-down of premises | — | — | — | 333 | ||||||||||||
Other expenses | 1,585 | 1,251 | 4,666 | 3,795 | ||||||||||||
Total noninterest expense | 9,536 | 8,561 | 28,830 | 25,806 | ||||||||||||
Income before income taxes | 9,438 | 9,640 | 26,189 | 26,896 | ||||||||||||
Income taxes | 1,912 | 2,507 | 5,106 | 5,615 | ||||||||||||
Net income | $ | 7,526 | $ | 7,133 | $ | 21,083 | $ | 21,281 | ||||||||
Basic earnings per common share | $ | 0.46 | $ | 0.44 | $ | 1.29 | $ | 1.31 | ||||||||
Diluted earnings per common share | $ | 0.46 | $ | 0.43 | $ | 1.28 | $ | 1.30 |
West Bancorporation, Inc. and Subsidiary | ||||||||||||||||
Consolidated Statements of Comprehensive Income | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 7,526 | $ | 7,133 | $ | 21,083 | $ | 21,281 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||||||||
Unrealized holding gains (losses) arising during the period | 1,706 | (4,182 | ) | 13,673 | (12,373 | ) | ||||||||||
Unrealized gains on investment securities transferred from held to maturity to available for sale | — | — | — | 363 | ||||||||||||
Plus: reclassification adjustment for net (gains) losses realized in net income | (1 | ) | 78 | 64 | 103 | |||||||||||
Less: other reclassification adjustment | — | — | — | (36 | ) | |||||||||||
Income tax benefit (expense) | (426 | ) | 1,026 | (3,434 | ) | 2,988 | ||||||||||
Other comprehensive income (loss) on investment securities | 1,279 | (3,078 | ) | 10,303 | (8,955 | ) | ||||||||||
Unrealized gains (losses) on derivatives: | ||||||||||||||||
Unrealized holding gains (losses) arising during the period | (5,187 | ) | 964 | (12,357 | ) | 3,512 | ||||||||||
Plus: reclassification adjustment for net (gains) losses on derivatives realized in net income | (100 | ) | (10 | ) | (351 | ) | 25 | |||||||||
Plus: reclassification adjustment for amortization of derivative termination costs | 24 | 24 | 71 | 71 | ||||||||||||
Income tax benefit (expense) | 1,315 | (246 | ) | 3,156 | (905 | ) | ||||||||||
Other comprehensive income (loss) on derivatives | (3,948 | ) | 732 | (9,481 | ) | 2,703 | ||||||||||
Total other comprehensive income (loss) | (2,669 | ) | (2,346 | ) | 822 | (6,252 | ) | |||||||||
Comprehensive income | $ | 4,857 | $ | 4,787 | $ | 21,905 | $ | 15,029 |
West Bancorporation, Inc. and Subsidiary | |||||||||||||||||||||||||||
Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||
Additional | Other | ||||||||||||||||||||||||||
Preferred | Common Stock | Paid-In | Retained | Comprehensive | |||||||||||||||||||||||
Stock | Shares | Amount | Capital | Earnings | Income (Loss) | Total | |||||||||||||||||||||
Balance, June 30, 2019 | $ | — | 16,379,752 | $ | 3,000 | $ | 25,691 | $ | 176,567 | $ | (3,323 | ) | $ | 201,935 | |||||||||||||
Net income | — | — | — | — | 7,526 | — | 7,526 | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (2,669 | ) | (2,669 | ) | ||||||||||||||||||
Cash dividends declared, $0.21 per common share | — | — | — | — | (3,439 | ) | — | (3,439 | ) | ||||||||||||||||||
Stock-based compensation costs | — | — | — | 784 | — | — | 784 | ||||||||||||||||||||
Balance, September 30, 2019 | $ | — | 16,379,752 | $ | 3,000 | $ | 26,475 | $ | 180,654 | $ | (5,992 | ) | $ | 204,137 | |||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||
Additional | Other | ||||||||||||||||||||||||||
Preferred | Common Stock | Paid-In | Retained | Comprehensive | |||||||||||||||||||||||
Stock | Shares | Amount | Capital | Earnings | Income (Loss) | Total | |||||||||||||||||||||
Balance, June 30, 2018 | $ | — | 16,295,494 | $ | 3,000 | $ | 23,653 | $ | 161,867 | $ | (6,168 | ) | $ | 182,352 | |||||||||||||
Net income | — | — | — | — | 7,133 | — | 7,133 | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (2,346 | ) | (2,346 | ) | ||||||||||||||||||
Cash dividends declared, $0.20 per common share | — | — | — | — | (3,259 | ) | — | (3,259 | ) | ||||||||||||||||||
Stock-based compensation costs | — | — | — | 738 | — | — | 738 | ||||||||||||||||||||
Balance, September 30, 2018 | $ | — | 16,295,494 | $ | 3,000 | $ | 24,391 | $ | 165,741 | $ | (8,514 | ) | $ | 184,618 | |||||||||||||
West Bancorporation, Inc. and Subsidiary | |||||||||||||||||||||||||||
Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||
Additional | Other | ||||||||||||||||||||||||||
Preferred | Common Stock | Paid-In | Retained | Comprehensive | |||||||||||||||||||||||
Stock | Shares | Amount | Capital | Earnings | Income (Loss) | Total | |||||||||||||||||||||
Balance, December 31, 2018 | $ | — | 16,295,494 | $ | 3,000 | $ | 25,128 | $ | 169,709 | $ | (6,814 | ) | $ | 191,023 | |||||||||||||
Net income | — | — | — | — | 21,083 | — | 21,083 | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 822 | 822 | ||||||||||||||||||||
Cash dividends declared, $0.62 per common share | — | — | — | — | (10,138 | ) | (10,138 | ) | |||||||||||||||||||
Stock-based compensation costs | — | — | — | 2,208 | — | — | 2,208 | ||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes | — | 84,258 | — | (861 | ) | — | — | (861 | ) | ||||||||||||||||||
Balance, September 30, 2019 | $ | — | 16,379,752 | $ | 3,000 | $ | 26,475 | $ | 180,654 | $ | (5,992 | ) | $ | 204,137 | |||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||
Additional | Other | ||||||||||||||||||||||||||
Preferred | Common Stock | Paid-In | Retained | Comprehensive | |||||||||||||||||||||||
Stock | Shares | Amount | Capital | Earnings | Income (Loss) | Total | |||||||||||||||||||||
Balance, December 31, 2017 | $ | — | 16,215,672 | $ | 3,000 | $ | 23,463 | $ | 153,527 | $ | (1,892 | ) | $ | 178,098 | |||||||||||||
Reclassification of stranded tax effects of rate change | — | — | — | — | 370 | (370 | ) | — | |||||||||||||||||||
Net income | — | — | — | — | 21,281 | — | 21,281 | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (6,252 | ) | (6,252 | ) | ||||||||||||||||||
Cash dividends declared, $0.58 per common share | — | — | — | — | (9,437 | ) | — | (9,437 | ) | ||||||||||||||||||
Stock-based compensation costs | — | — | — | 2,004 | — | — | 2,004 | ||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units, net of shares withheld for payroll taxes | — | 79,822 | — | (1,076 | ) | — | — | (1,076 | ) | ||||||||||||||||||
Balance, September 30, 2018 | $ | — | 16,295,494 | $ | 3,000 | $ | 24,391 | $ | 165,741 | $ | (8,514 | ) | $ | 184,618 |
West Bancorporation, Inc. and Subsidiary | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 21,083 | $ | 21,281 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 300 | (250 | ) | |||||
Net amortization and accretion | 2,895 | 3,715 | ||||||
Investment securities losses, net | 64 | 103 | ||||||
Stock-based compensation | 2,208 | 2,004 | ||||||
Increase in cash value of bank-owned life insurance | (482 | ) | (468 | ) | ||||
Gain on sale of premises | (307 | ) | — | |||||
Depreciation | 1,060 | 1,053 | ||||||
Write-down of premises | — | 333 | ||||||
Deferred income taxes | 155 | (173 | ) | |||||
Change in assets and liabilities: | ||||||||
Increase in accrued interest receivable | (364 | ) | (438 | ) | ||||
Increase in other assets | (932 | ) | (1,095 | ) | ||||
Increase in accrued expenses and other liabilities | 1,623 | 881 | ||||||
Net cash provided by operating activities | 27,303 | 26,946 | ||||||
Cash Flows from Investing Activities: | ||||||||
Proceeds from sales of securities available for sale | 156,437 | 66,140 | ||||||
Proceeds from maturities and calls of investment securities | 33,477 | 34,883 | ||||||
Purchases of securities available for sale | (134,548 | ) | (96,170 | ) | ||||
Purchases of Federal Home Loan Bank stock | (23,378 | ) | (10,634 | ) | ||||
Proceeds from redemption of Federal Home Loan Bank stock | 23,730 | 9,747 | ||||||
Net increase in loans | (114,847 | ) | (89,824 | ) | ||||
Proceeds from sale of premises | 604 | — | ||||||
Purchases of premises and equipment | (708 | ) | (86 | ) | ||||
Net cash used in investing activities | (59,233 | ) | (85,944 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Net increase in deposits | 130,278 | 28,479 | ||||||
Net increase (decrease) in federal funds purchased | (16,450 | ) | 25,700 | |||||
Principal payments on Federal Home Loan Bank advances | (160,000 | ) | — | |||||
Proceeds from Federal Home Loan Bank advances | 175,000 | — | ||||||
Principal payments on long-term debt | (4,086 | ) | (5,335 | ) | ||||
Common stock dividends paid | (10,138 | ) | (9,437 | ) | ||||
Restricted stock units withheld for payroll taxes | (861 | ) | (1,076 | ) | ||||
Net cash provided by financing activities | 113,743 | 38,331 | ||||||
Net increase (decrease) in cash and cash equivalents | 81,813 | (20,667 | ) | |||||
Cash and Cash Equivalents: | ||||||||
Beginning | 47,474 | 47,949 | ||||||
Ending | $ | 129,287 | $ | 27,282 | ||||
Supplemental Disclosures of Cash Flow Information: | ||||||||
Cash payments for: | ||||||||
Interest | $ | 23,726 | $ | 15,471 | ||||
Income taxes | 3,280 | 4,822 | ||||||
Supplemental Disclosure of Noncash Investing Activities: | ||||||||
Establishment of lease liability and right-of-use asset | $ | 10,435 | $ | — | ||||
Transfer of investment securities held to maturity to available for sale | — | 45,527 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income | $ | 7,526 | $ | 7,133 | $ | 21,083 | $ | 21,281 | |||||||
Weighted average common shares outstanding | 16,380 | 16,295 | 16,352 | 16,268 | |||||||||||
Weighted average effect of restricted stock units outstanding | 86 | 106 | 79 | 132 | |||||||||||
Diluted weighted average common shares outstanding | 16,466 | 16,401 | 16,431 | 16,400 | |||||||||||
Basic earnings per common share | $ | 0.46 | $ | 0.44 | $ | 1.29 | $ | 1.31 | |||||||
Diluted earnings per common share | $ | 0.46 | $ | 0.43 | $ | 1.28 | $ | 1.30 | |||||||
Number of anti-dilutive common stock equivalents excluded from diluted earnings per share computation | 160 | 137 | 183 | 92 |
September 30, 2019 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||
Securities available for sale: | |||||||||||||||
State and political subdivisions | $ | 46,164 | $ | 1,754 | $ | — | $ | 47,918 | |||||||
Collateralized mortgage obligations (1) | 202,616 | 2,055 | (469 | ) | 204,202 | ||||||||||
Mortgage-backed securities (1) | 50,908 | 303 | (123 | ) | 51,088 | ||||||||||
Asset-backed securities (2) | 18,568 | 63 | (28 | ) | 18,603 | ||||||||||
Collateralized loan obligations | 71,909 | 32 | (70 | ) | 71,871 | ||||||||||
Corporate notes | 17,300 | 164 | (775 | ) | 16,689 | ||||||||||
$ | 407,465 | $ | 4,371 | $ | (1,465 | ) | $ | 410,371 | |||||||
December 31, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||
Securities available for sale: | |||||||||||||||
State and political subdivisions | $ | 152,293 | $ | 156 | $ | (3,293 | ) | $ | 149,156 | ||||||
Collateralized mortgage obligations (1) | 161,392 | — | (4,388 | ) | 157,004 | ||||||||||
Mortgage-backed securities (1) | 64,813 | — | (1,435 | ) | 63,378 | ||||||||||
Asset-backed securities (2) | 32,076 | 2 | (175 | ) | 31,903 | ||||||||||
Trust preferred security | 2,153 | — | (253 | ) | 1,900 | ||||||||||
Corporate notes | 51,862 | 124 | (1,569 | ) | 50,417 | ||||||||||
$ | 464,589 | $ | 282 | $ | (11,113 | ) | $ | 453,758 |
(1) | All collateralized mortgage obligations and mortgage-backed securities consist of residential mortgage pass-through securities guaranteed by FHLMC or FNMA, real estate mortgage investment conduits guaranteed by FNMA, FHLMC or GNMA, and commercial mortgage pass-through securities guaranteed by the SBA. |
(2) | Pass-through asset-backed securities guaranteed by the SBA. |
September 30, 2019 | |||||||
Amortized Cost | Fair Value | ||||||
Due in one year or less | $ | 2,000 | $ | 2,001 | |||
Due after one year through five years | 19,967 | 19,979 | |||||
Due after five years through ten years | 69,079 | 68,432 | |||||
Due after ten years | 44,327 | 46,066 | |||||
135,373 | 136,478 | ||||||
Collateralized mortgage obligations, mortgage-backed securities and asset-backed securities | 272,092 | 273,893 | |||||
$ | 407,465 | $ | 410,371 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Proceeds from sales | $ | 11,095 | $ | 56,924 | $ | 156,437 | $ | 66,140 | |||||||
Gross gains on sales | 37 | 64 | 868 | 98 | |||||||||||
Gross losses on sales | 36 | 142 | 932 | 201 |
September 30, 2019 | |||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | ||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
Collateralized mortgage obligations | $ | 43,662 | $ | (168 | ) | $ | 40,628 | $ | (301 | ) | $ | 84,290 | $ | (469 | ) | ||||||||
Mortgage-backed securities | 14,916 | (55 | ) | 4,821 | (68 | ) | 19,737 | (123 | ) | ||||||||||||||
Asset-backed securities | 3,842 | (6 | ) | 7,618 | (22 | ) | 11,460 | (28 | ) | ||||||||||||||
Collateralized loan obligations | 26,890 | (70 | ) | — | — | 26,890 | (70 | ) | |||||||||||||||
Corporate notes | — | — | 9,225 | (775 | ) | 9,225 | (775 | ) | |||||||||||||||
$ | 89,310 | $ | (299 | ) | $ | 62,292 | $ | (1,166 | ) | $ | 151,602 | $ | (1,465 | ) | |||||||||
December 31, 2018 | |||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | Fair Value | Gross Unrealized (Losses) | ||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
State and political subdivisions | $ | 21,264 | $ | (221 | ) | $ | 102,853 | $ | (3,072 | ) | $ | 124,117 | $ | (3,293 | ) | ||||||||
Collateralized mortgage obligations | 32,230 | (250 | ) | 124,775 | (4,138 | ) | 157,005 | (4,388 | ) | ||||||||||||||
Mortgage-backed securities | 10,960 | (103 | ) | 51,823 | (1,332 | ) | 62,783 | (1,435 | ) | ||||||||||||||
Asset-backed securities | 6,668 | (31 | ) | 16,486 | (144 | ) | 23,154 | (175 | ) | ||||||||||||||
Trust preferred security | — | — | 1,900 | (253 | ) | 1,900 | (253 | ) | |||||||||||||||
Corporate notes | 19,470 | (611 | ) | 19,041 | (958 | ) | 38,511 | (1,569 | ) | ||||||||||||||
$ | 90,592 | $ | (1,216 | ) | $ | 316,878 | $ | (9,897 | ) | $ | 407,470 | $ | (11,113 | ) |
September 30, 2019 | December 31, 2018 | ||||||
Commercial | $ | 396,202 | $ | 358,763 | |||
Real estate: | |||||||
Construction, land and land development | 252,242 | 245,810 | |||||
1-4 family residential first mortgages | 49,460 | 49,052 | |||||
Home equity | 13,158 | 14,469 | |||||
Commercial | 1,120,433 | 1,050,025 | |||||
Consumer and other | 7,423 | 6,211 | |||||
1,838,918 | 1,724,330 | ||||||
Net unamortized fees and costs | (2,188 | ) | (2,500 | ) | |||
$ | 1,836,730 | $ | 1,721,830 |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||
Commercial | $ | 442 | $ | 442 | $ | — | $ | 1,014 | $ | 1,014 | $ | — | |||||||||||
Real estate: | |||||||||||||||||||||||
Construction, land and land development | — | — | — | — | — | — | |||||||||||||||||
1-4 family residential first mortgages | 13 | 13 | — | 106 | 106 | — | |||||||||||||||||
Home equity | 34 | 34 | — | 41 | 41 | — | |||||||||||||||||
Commercial | 32 | 32 | — | 652 | 652 | — | |||||||||||||||||
Consumer and other | — | — | — | — | — | — | |||||||||||||||||
521 | 521 | — | 1,813 | 1,813 | — | ||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||
Commercial | — | — | — | 15 | 15 | 15 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction, land and land development | — | — | — | — | — | — | |||||||||||||||||
1-4 family residential first mortgages | — | — | — | — | — | — | |||||||||||||||||
Home equity | — | — | — | — | — | — | |||||||||||||||||
Commercial | — | — | — | 100 | 100 | 100 | |||||||||||||||||
Consumer and other | — | — | — | — | — | — | |||||||||||||||||
— | — | — | 115 | 115 | 115 | ||||||||||||||||||
Total: | |||||||||||||||||||||||
Commercial | 442 | 442 | — | 1,029 | 1,029 | 15 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction, land and land development | — | — | — | — | — | — | |||||||||||||||||
1-4 family residential first mortgages | 13 | 13 | — | 106 | 106 | — | |||||||||||||||||
Home equity | 34 | 34 | — | 41 | 41 | — | |||||||||||||||||
Commercial | 32 | 32 | — | 752 | 752 | 100 | |||||||||||||||||
Consumer and other | — | — | — | — | — | — | |||||||||||||||||
$ | 521 | $ | 521 | $ | — | $ | 1,928 | $ | 1,928 | $ | 115 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||
Commercial | $ | 546 | $ | 39 | $ | 950 | $ | — | $ | 796 | $ | 39 | $ | 661 | $ | — | |||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||
Construction, land and land development | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
1-4 family residential first mortgages | 16 | — | 113 | — | 52 | 6 | 115 | — | |||||||||||||||||||||||
Home equity | 35 | — | 129 | 6 | 34 | 2 | 155 | 6 | |||||||||||||||||||||||
Commercial | 305 | 22 | 707 | — | 495 | 22 | 581 | — | |||||||||||||||||||||||
Consumer and other | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
902 | 61 | 1,899 | 6 | 1,377 | 69 | 1,512 | 6 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||
Commercial | — | — | — | — | 9 | — | — | — | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||
Construction, land and land development | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
1-4 family residential first mortgages | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Home equity | — | — | 15 | — | — | — | 17 | — | |||||||||||||||||||||||
Commercial | 45 | 6 | 107 | — | 76 | 6 | 112 | — | |||||||||||||||||||||||
Consumer and other | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
45 | 6 | 122 | — | 85 | 6 | 129 | — | ||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||
Commercial | 546 | 39 | 950 | — | 805 | 39 | 661 | — | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||
Construction, land and land development | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
1-4 family residential first mortgages | 16 | — | 113 | — | 52 | 6 | 115 | — | |||||||||||||||||||||||
Home equity | 35 | — | 144 | 6 | 34 | 2 | 172 | 6 | |||||||||||||||||||||||
Commercial | 350 | 28 | 814 | — | 571 | 28 | 693 | — | |||||||||||||||||||||||
Consumer and other | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
$ | 947 | $ | 67 | $ | 2,021 | $ | 6 | $ | 1,462 | $ | 75 | $ | 1,641 | $ | 6 |
September 30, 2019 | |||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Nonaccrual Loans | Total Loans | |||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | 395,760 | $ | 442 | $ | 396,202 | |||||||||||||
Real estate: | |||||||||||||||||||||||||||
Construction, land and | |||||||||||||||||||||||||||
land development | — | — | — | — | 252,242 | — | 252,242 | ||||||||||||||||||||
1-4 family residential | |||||||||||||||||||||||||||
first mortgages | 171 | — | — | 171 | 49,276 | 13 | 49,460 | ||||||||||||||||||||
Home equity | — | — | — | — | 13,124 | 34 | 13,158 | ||||||||||||||||||||
Commercial | — | — | — | — | 1,120,401 | 32 | 1,120,433 | ||||||||||||||||||||
Consumer and other | — | — | — | — | 7,423 | — | 7,423 | ||||||||||||||||||||
Total | $ | 171 | $ | — | $ | — | $ | 171 | $ | 1,838,226 | $ | 521 | $ | 1,838,918 |
December 31, 2018 | |||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Nonaccrual Loans | Total Loans | |||||||||||||||||||||
Commercial | $ | 54 | $ | — | $ | — | $ | 54 | $ | 357,680 | $ | 1,029 | $ | 358,763 | |||||||||||||
Real estate: | |||||||||||||||||||||||||||
Construction, land and | |||||||||||||||||||||||||||
land development | — | — | — | — | 245,810 | — | 245,810 | ||||||||||||||||||||
1-4 family residential | |||||||||||||||||||||||||||
first mortgages | 157 | — | — | 157 | 48,789 | 106 | 49,052 | ||||||||||||||||||||
Home equity | — | — | — | — | 14,428 | 41 | 14,469 | ||||||||||||||||||||
Commercial | — | — | — | — | 1,049,273 | 752 | 1,050,025 | ||||||||||||||||||||
Consumer and other | — | — | — | — | 6,211 | — | 6,211 | ||||||||||||||||||||
Total | $ | 211 | $ | — | $ | — | $ | 211 | $ | 1,722,191 | $ | 1,928 | $ | 1,724,330 |
September 30, 2019 | |||||||||||||||||||
Pass | Watch | Substandard | Doubtful | Total | |||||||||||||||
Commercial | $ | 373,737 | $ | 21,168 | $ | 1,297 | $ | — | $ | 396,202 | |||||||||
Real estate: | |||||||||||||||||||
Construction, land and land development | 252,242 | — | — | — | 252,242 | ||||||||||||||
1-4 family residential first mortgages | 47,627 | 1,360 | 473 | — | 49,460 | ||||||||||||||
Home equity | 13,086 | 38 | 34 | — | 13,158 | ||||||||||||||
Commercial | 1,091,736 | 28,587 | 110 | — | 1,120,433 | ||||||||||||||
Consumer and other | 7,373 | 50 | — | — | 7,423 | ||||||||||||||
Total | $ | 1,785,801 | $ | 51,203 | $ | 1,914 | $ | — | $ | 1,838,918 |
December 31, 2018 | |||||||||||||||||||
Pass | Watch | Substandard | Doubtful | Total | |||||||||||||||
Commercial | $ | 336,861 | $ | 19,886 | $ | 2,016 | $ | — | $ | 358,763 | |||||||||
Real estate: | |||||||||||||||||||
Construction, land and land development | 245,810 | — | — | — | 245,810 | ||||||||||||||
1-4 family residential first mortgages | 47,923 | 963 | 166 | — | 49,052 | ||||||||||||||
Home equity | 14,352 | 46 | 71 | — | 14,469 | ||||||||||||||
Commercial | 1,019,256 | 29,063 | 1,706 | — | 1,050,025 | ||||||||||||||
Consumer and other | 6,186 | — | 25 | — | 6,211 | ||||||||||||||
Total | $ | 1,670,388 | $ | 49,958 | $ | 3,984 | $ | — | $ | 1,724,330 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||
Commercial | Construction and Land | 1-4 Family Residential | Home Equity | Commercial | Consumer and Other | Total | |||||||||||||||||||||
Beginning balance | $ | 3,732 | $ | 2,286 | $ | 222 | $ | 139 | $ | 10,275 | $ | 83 | $ | 16,737 | |||||||||||||
Charge-offs | (199 | ) | — | — | — | — | — | (199 | ) | ||||||||||||||||||
Recoveries | 168 | — | 5 | 27 | 3 | 1 | 204 | ||||||||||||||||||||
Provision (1) | 12 | 81 | (8 | ) | (19 | ) | 233 | 1 | 300 | ||||||||||||||||||
Ending balance | $ | 3,713 | $ | 2,367 | $ | 219 | $ | 147 | $ | 10,511 | $ | 85 | $ | 17,042 | |||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||
Commercial | Construction and Land | 1-4 Family Residential | Home Equity | Commercial | Consumer and Other | Total | |||||||||||||||||||||
Beginning balance | $ | 3,673 | $ | 1,911 | $ | 304 | $ | 182 | $ | 10,369 | $ | 79 | $ | 16,518 | |||||||||||||
Charge-offs | — | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 539 | — | 7 | 6 | 2 | 1 | 555 | ||||||||||||||||||||
Provision (1) | (907 | ) | 185 | (23 | ) | — | 346 | (1 | ) | (400 | ) | ||||||||||||||||
Ending balance | $ | 3,305 | $ | 2,096 | $ | 288 | $ | 188 | $ | 10,717 | $ | 79 | $ | 16,673 | |||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||
Commercial | Construction and Land | 1-4 Family Residential | Home Equity | Commercial | Consumer and Other | Total | |||||||||||||||||||||
Beginning balance | $ | 3,508 | $ | 2,384 | $ | 250 | $ | 171 | $ | 10,301 | $ | 75 | $ | 16,689 | |||||||||||||
Charge-offs | (254 | ) | — | — | — | — | — | (254 | ) | ||||||||||||||||||
Recoveries | 227 | — | 14 | 50 | 9 | 7 | 307 | ||||||||||||||||||||
Provision (1) | 232 | (17 | ) | (45 | ) | (74 | ) | 201 | 3 | 300 | |||||||||||||||||
Ending balance | $ | 3,713 | $ | 2,367 | $ | 219 | $ | 147 | $ | 10,511 | $ | 85 | $ | 17,042 | |||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||
Commercial | Construction and Land | 1-4 Family Residential | Home Equity | Commercial | Consumer and Other | Total | |||||||||||||||||||||
Beginning balance | $ | 3,866 | $ | 2,213 | $ | 319 | $ | 186 | $ | 9,770 | $ | 76 | $ | 16,430 | |||||||||||||
Charge-offs | (208 | ) | — | — | (1 | ) | — | — | (209 | ) | |||||||||||||||||
Recoveries | 649 | — | 14 | 17 | 9 | 13 | 702 | ||||||||||||||||||||
Provision (1) | (1,002 | ) | (117 | ) | (45 | ) | (14 | ) | 938 | (10 | ) | (250 | ) | ||||||||||||||
Ending balance | $ | 3,305 | $ | 2,096 | $ | 288 | $ | 188 | $ | 10,717 | $ | 79 | $ | 16,673 |
(1) | The negative provisions for the various segments are related to the decline in outstanding balances in each of those portfolio segments during the time periods disclosed and/or improvement in the credit quality factors related to those portfolio segments. |
September 30, 2019 | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||
Commercial | Construction and Land | 1-4 Family Residential | Home Equity | Commercial | Consumer and Other | Total | |||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Collectively evaluated for impairment | 3,713 | 2,367 | 219 | 147 | 10,511 | 85 | 17,042 | ||||||||||||||||||||
Total | $ | 3,713 | $ | 2,367 | $ | 219 | $ | 147 | $ | 10,511 | $ | 85 | $ | 17,042 | |||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||
Commercial | Construction and Land | 1-4 Family Residential | Home Equity | Commercial | Consumer and Other | Total | |||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 15 | $ | — | $ | — | $ | — | $ | 100 | $ | — | $ | 115 | |||||||||||||
Collectively evaluated for impairment | 3,493 | 2,384 | 250 | 171 | 10,201 | 75 | 16,574 | ||||||||||||||||||||
Total | $ | 3,508 | $ | 2,384 | $ | 250 | $ | 171 | $ | 10,301 | $ | 75 | $ | 16,689 |
September 30, 2019 | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||
Commercial | Construction and Land | 1-4 Family Residential | Home Equity | Commercial | Consumer and Other | Total | |||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 442 | $ | — | $ | 13 | $ | 34 | $ | 32 | $ | — | $ | 521 | |||||||||||||
Collectively evaluated for impairment | 395,760 | 252,242 | 49,447 | 13,124 | 1,120,401 | 7,423 | 1,838,397 | ||||||||||||||||||||
Total | $ | 396,202 | $ | 252,242 | $ | 49,460 | $ | 13,158 | $ | 1,120,433 | $ | 7,423 | $ | 1,838,918 |
December 31, 2018 | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||
Commercial | Construction and Land | 1-4 Family Residential | Home Equity | Commercial | Consumer and Other | Total | |||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,029 | $ | — | $ | 106 | $ | 41 | $ | 752 | $ | — | $ | 1,928 | |||||||||||||
Collectively evaluated for impairment | 357,734 | 245,810 | 48,946 | 14,428 | 1,049,273 | 6,211 | 1,722,402 | ||||||||||||||||||||
Total | $ | 358,763 | $ | 245,810 | $ | 49,052 | $ | 14,469 | $ | 1,050,025 | $ | 6,211 | $ | 1,724,330 |
Notional Amount | Fair Value | Balance Sheet Category | Weighted Average Floating Rate Received | Weighted Average Fixed Rate Paid | Weighted Average Maturity - Years | |||||||||||||
September 30, 2019 | ||||||||||||||||||
Interest rate swaps | $ | 260,000 | $ | (9,249 | ) | Other Liabilities | 2.42 | % | 2.34 | % | 5.7 | |||||||
Forward-starting interest rate swaps | 75,000 | (1,594 | ) | Other Liabilities | — | % | 1.73 | % | 6.0 | |||||||||
December 31, 2018 | ||||||||||||||||||
Interest rate swaps | $ | 110,000 | $ | 1,863 | Other Assets | 3.22 | % | 2.82 | % | 5.7 |
Reclassified from AOCI into Income | ||||||||||||||||||
Amount of Pre-tax Gain (Loss) Recognized in OCI | ||||||||||||||||||
Amount of Gain (Loss) | ||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2019 | 2018 | Category | 2019 | 2018 | ||||||||||||||
Interest rate swaps | $ | (12,357 | ) | $ | 3,512 | Interest Expense | $ | 280 | $ | (96 | ) |
September 30, 2019 | December 31, 2018 | ||||||
Deferred tax assets: | |||||||
Allowance for loan losses | $ | 4,261 | $ | 4,172 | |||
Net unrealized losses on securities available for sale | — | 2,708 | |||||
Net unrealized losses on interest rate swaps | 2,727 | — | |||||
Lease liability | 2,362 | — | |||||
Accrued expenses | 238 | 346 | |||||
Restricted stock compensation | 636 | 704 | |||||
State net operating loss carryforward | 1,096 | 1,021 | |||||
Capital loss carryforward | 3 | — | |||||
Other | 57 | 67 | |||||
11,380 | 9,018 | ||||||
Deferred tax liabilities: | |||||||
Right-of-use asset | 2,304 | — | |||||
Net deferred loan fees and costs | 199 | 183 | |||||
Net unrealized gains on securities available for sale | 726 | — | |||||
Net unrealized gains on interest rate swaps | — | 429 | |||||
Premises and equipment | 758 | 694 | |||||
Other | 209 | 173 | |||||
4,196 | 1,479 | ||||||
Net deferred tax assets before valuation allowance | 7,184 | 7,539 | |||||
Valuation allowance | (1,099 | ) | (1,021 | ) | |||
Net deferred tax assets | $ | 6,085 | $ | 6,518 |
Unrealized | Unrealized | Accumulated | ||||||||||
Gains | Gains | Other | ||||||||||
(Losses) on | (Losses) on | Comprehensive | ||||||||||
Securities | Derivatives | Income (Loss) | ||||||||||
Balance, December 31, 2018 | $ | (8,123 | ) | $ | 1,309 | $ | (6,814 | ) | ||||
Other comprehensive income (loss) before reclassifications | 10,255 | (9,268 | ) | 987 | ||||||||
Amounts reclassified from accumulated other comprehensive income | 48 | (213 | ) | (165 | ) | |||||||
Net current period other comprehensive income (loss) | 10,303 | (9,481 | ) | 822 | ||||||||
Balance, September 30, 2019 | $ | 2,180 | $ | (8,172 | ) | $ | (5,992 | ) | ||||
Balance, December 31, 2017 | $ | (2,237 | ) | $ | 345 | $ | (1,892 | ) | ||||
Transfer of securities held to maturity to securities available for sale | 273 | — | 273 | |||||||||
Other comprehensive income (loss) before reclassifications | (9,281 | ) | 2,634 | (6,647 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | 53 | 69 | 122 | |||||||||
Net current period other comprehensive income (loss) | (8,955 | ) | 2,703 | (6,252 | ) | |||||||
Reclassification of stranded tax effects | (475 | ) | 105 | (370 | ) | |||||||
Balance, September 30, 2018 | $ | (11,667 | ) | $ | 3,153 | $ | (8,514 | ) |
September 30, 2019 | December 31, 2018 | ||||||
Commitments to extend credit | $ | 682,185 | $ | 641,581 | |||
Standby letters of credit | 6,630 | 6,631 | |||||
$ | 688,815 | $ | 648,212 |
2019 | $ | 421 | |
2020 | 1,681 | ||
2021 | 1,627 | ||
2022 | 1,583 | ||
2023 | 1,565 | ||
Thereafter | 3,882 | ||
Total lease payments | 10,759 | ||
Less: interest | (1,310 | ) | |
Present value of lease liability | $ | 9,449 |
September 30, 2019 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
State and political subdivisions | $ | 47,918 | $ | — | $ | 47,918 | $ | — | ||||||||
Collateralized mortgage obligations | 204,202 | — | 204,202 | — | ||||||||||||
Mortgage-backed securities | 51,088 | — | 51,088 | — | ||||||||||||
Asset-backed securities | 18,603 | — | 18,603 | — | ||||||||||||
Collateralized loan obligations | 71,871 | — | 71,871 | — | ||||||||||||
Corporate notes | 16,689 | — | 16,689 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Derivative instruments, interest rate swaps | $ | 10,843 | $ | — | $ | 10,843 | $ | — |
December 31, 2018 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Investment securities available for sale: | ||||||||||||||||
State and political subdivisions | $ | 149,156 | $ | — | $ | 149,156 | $ | — | ||||||||
Collateralized mortgage obligations | 157,004 | — | 157,004 | — | ||||||||||||
Mortgage-backed securities | 63,378 | — | 63,378 | — | ||||||||||||
Asset-backed securities | 31,903 | — | 31,903 | — | ||||||||||||
Trust preferred security | 1,900 | — | 1,900 | — | ||||||||||||
Corporate notes | 50,417 | — | 50,417 | — | ||||||||||||
Derivative instruments, interest rate swaps | 1,863 | — | 1,863 | — |
September 30, 2019 | December 31, 2018 | ||||||||||||||||
Fair Value Hierarchy Level | Carrying Amount | Approximate Fair Value | Carrying Amount | Approximate Fair Value | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | Level 1 | $ | 62,119 | $ | 62,119 | $ | 46,369 | $ | 46,369 | ||||||||
Federal funds sold | Level 1 | 67,168 | 67,168 | 1,105 | 1,105 | ||||||||||||
Investment securities available for sale | Level 2 | 410,371 | 410,371 | 453,758 | 453,758 | ||||||||||||
Federal Home Loan Bank stock | Level 1 | 11,685 | 11,685 | 12,037 | 12,037 | ||||||||||||
Loans, net | Level 2 | 1,819,688 | 1,839,219 | 1,705,141 | 1,688,700 | ||||||||||||
Accrued interest receivable | Level 1 | 7,995 | 7,995 | 7,631 | 7,631 | ||||||||||||
Interest rate swaps | Level 2 | — | — | 1,863 | 1,863 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | Level 2 | $ | 2,024,807 | $ | 2,025,620 | $ | 1,894,529 | $ | 1,893,621 | ||||||||
Federal funds purchased | Level 1 | 3,535 | 3,535 | 19,985 | 19,985 | ||||||||||||
Subordinated notes, net | Level 2 | 20,435 | 17,854 | 20,425 | 15,498 | ||||||||||||
Federal Home Loan Bank advances, net | Level 2 | 153,998 | 153,998 | 137,878 | 137,878 | ||||||||||||
Long-term debt | Level 2 | 22,954 | 22,934 | 27,040 | 27,000 | ||||||||||||
Accrued interest payable | Level 1 | 2,146 | 2,146 | 1,317 | 1,317 | ||||||||||||
Interest rate swaps | Level 2 | 10,843 | 10,843 | — | — | ||||||||||||
Off-balance-sheet financial instruments: | |||||||||||||||||
Commitments to extend credit | Level 3 | — | — | — | — | ||||||||||||
Standby letters of credit | Level 3 | — | — | — | — |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Reconciliation of net interest income and net interest margin on an FTE basis to GAAP: | ||||||||||||||||
Net interest income (GAAP) | $ | 17,116 | $ | 15,687 | $ | 49,043 | $ | 46,402 | ||||||||
Tax-equivalent adjustment (1) | 28 | 49 | 96 | 574 | ||||||||||||
Net interest income on an FTE basis (non-GAAP) | 17,144 | 15,736 | 49,139 | 46,976 | ||||||||||||
Average interest-earning assets | 2,334,365 | 2,118,129 | 2,249,520 | 2,058,934 | ||||||||||||
Net interest margin on an FTE basis (non-GAAP) | 2.91 | % | 2.95 | % | 2.92 | % | 3.05 | % | ||||||||
Reconciliation of efficiency ratio on an FTE basis to GAAP: | ||||||||||||||||
Net interest income on an FTE basis (non-GAAP) | $ | 17,144 | $ | 15,736 | $ | 49,139 | $ | 46,976 | ||||||||
Noninterest income | 2,158 | 2,114 | 6,276 | 6,050 | ||||||||||||
Adjustment for realized investment securities (gains) losses, net | (1 | ) | 78 | 64 | 103 | |||||||||||
Adjustment for losses on disposal of premises and equipment, net | — | 14 | — | 14 | ||||||||||||
Adjustment for gain on sale of premises | — | — | (307 | ) | — | |||||||||||
Adjusted income | 19,301 | 17,942 | 55,172 | 53,143 | ||||||||||||
Noninterest expense | 9,536 | 8,561 | 28,830 | 25,806 | ||||||||||||
Adjustment for write-down of premises | — | — | — | (333 | ) | |||||||||||
Adjusted expense | 9,536 | 8,561 | 28,830 | 25,473 | ||||||||||||
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2) | 49.41 | % | 47.71 | % | 52.26 | % | 47.93 | % |
(1) | Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. |
(2) | The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. |
West Bancorporation, Inc. | Peer Group Range | ||
As of and for the nine months ended September 30, 2019 | As of and for the six months ended June 30, 2019 (3) | ||
Return on average assets | 1.20% | 0.57% - 1.91% | |
Return on average equity | 14.25% | 4.84% - 14.51% | |
Efficiency ratio(1) (2) | 52.26% | 51.62% - 78.15% | |
Texas ratio(2) | 0.24% | 1.95% - 17.31% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2019 | 2018 | Change | Change % | 2019 | 2018 | Change | Change % | ||||||||||||||||||||||
Net income | $ | 7,526 | $ | 7,133 | $ | 393 | 5.51 | % | $ | 21,083 | $ | 21,281 | $ | (198 | ) | (0.93 | )% | ||||||||||||
Average assets | 2,448,529 | 2,211,263 | 237,266 | 10.73 | % | 2,358,409 | 2,151,993 | 206,416 | 9.59 | % | |||||||||||||||||||
Average stockholders' equity | 202,372 | 183,835 | 18,537 | 10.08 | % | 197,827 | 180,462 | 17,365 | 9.62 | % | |||||||||||||||||||
Return on average assets | 1.22 | % | 1.28 | % | (0.06 | )% | 1.20 | % | 1.32 | % | (0.12 | )% | |||||||||||||||||
Return on average equity | 14.76 | % | 15.40 | % | (0.64 | )% | 14.25 | % | 15.77 | % | (1.52 | )% | |||||||||||||||||
Net interest margin (1) | 2.91 | % | 2.95 | % | (0.04 | )% | 2.92 | % | 3.05 | % | (0.13 | )% | |||||||||||||||||
Efficiency ratio (1) (2) | 49.41 | % | 47.71 | % | 1.70 | % | 52.26 | % | 47.93 | % | 4.33 | % | |||||||||||||||||
Dividend payout ratio | 45.70 | % | 45.69 | % | 0.01 | % | 48.09 | % | 44.34 | % | 3.75 | % | |||||||||||||||||
Average equity to average assets ratio | 8.27 | % | 8.31 | % | (0.04 | )% | 8.39 | % | 8.39 | % | — | % | |||||||||||||||||
As of September 30, | |||||||||||||||||||||||||||||
2019 | 2018 | Change | |||||||||||||||||||||||||||
Texas ratio (2) | 0.24 | % | 0.92 | % | (0.68 | )% | |||||||||||||||||||||||
Equity to assets ratio | 8.31 | % | 8.50 | % | (0.19 | )% | |||||||||||||||||||||||
Tangible common equity ratio | 8.31 | % | 8.50 | % | (0.19 | )% |
• | Return on average assets - annualized net income divided by average assets. |
• | Return on average equity - annualized net income divided by average stockholders' equity. |
• | Net interest margin - annualized tax-equivalent net interest income divided by average interest-earning assets. |
• | Efficiency ratio - noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains (losses) and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income. |
• | Dividend payout ratio - dividends paid to common stockholders divided by net income. |
• | Average equity to average assets ratio - average equity divided by average assets. |
• | Texas ratio - total nonperforming assets divided by tangible common equity plus the allowance for loan losses. |
• | Equity to assets ratio - equity divided by assets. |
• | Tangible common equity ratio - common equity less intangible assets (none held) divided by tangible assets. |
Data for the three months ended September 30: | ||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Yield/Rate | ||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | Change- % | 2019 | 2018 | Change | Change- % | 2019 | 2018 | Change | ||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Loans: (1) (2) | ||||||||||||||||||||||||||||||||||||||
Commercial | $ | 396,228 | $ | 323,648 | $ | 72,580 | 22.43 | % | $ | 5,088 | $ | 3,938 | $ | 1,150 | 29.20 | % | 5.09 | % | 4.83 | % | 0.26 | % | ||||||||||||||||
Real estate (3) | 1,413,114 | 1,244,540 | 168,574 | 13.55 | % | 17,044 | 14,334 | 2,710 | 18.91 | % | 4.79 | % | 4.57 | % | 0.22 | % | ||||||||||||||||||||||
Consumer and other | 7,108 | 6,570 | 538 | 8.19 | % | 87 | 71 | 16 | 22.54 | % | 4.89 | % | 4.29 | % | 0.60 | % | ||||||||||||||||||||||
Total loans | 1,816,450 | 1,574,758 | 241,692 | 15.35 | % | 22,219 | 18,343 | 3,876 | 21.13 | % | 4.85 | % | 4.62 | % | 0.23 | % | ||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 357,585 | 360,672 | (3,087 | ) | (0.86 | )% | 2,445 | 2,296 | 149 | 6.49 | % | 2.74 | % | 2.55 | % | 0.19 | % | |||||||||||||||||||||
Tax-exempt (3) | 48,532 | 166,768 | (118,236 | ) | (70.90 | )% | 365 | 1,252 | (887 | ) | (70.85 | )% | 3.01 | % | 3.01 | % | — | % | ||||||||||||||||||||
Total investment securities | 406,117 | 527,440 | (121,323 | ) | (23.00 | )% | 2,810 | 3,548 | (738 | ) | (20.80 | )% | 2.77 | % | 2.69 | % | 0.08 | % | ||||||||||||||||||||
Federal funds sold | 111,798 | 15,931 | 95,867 | 601.76 | % | 611 | 78 | 533 | 683.33 | % | 2.17 | % | 1.96 | % | 0.21 | % | ||||||||||||||||||||||
Total interest-earning assets (3) | $ | 2,334,365 | $ | 2,118,129 | $ | 216,236 | 10.21 | % | 25,640 | 21,969 | 3,671 | 16.71 | % | 4.36 | % | 4.12 | % | 0.24 | % | |||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing demand, | ||||||||||||||||||||||||||||||||||||||
savings and money | ||||||||||||||||||||||||||||||||||||||
market | $ | 1,347,942 | $ | 1,313,645 | $ | 34,297 | 2.61 | % | 5,022 | 4,060 | 962 | 23.69 | % | 1.48 | % | 1.23 | % | 0.25 | % | |||||||||||||||||||
Time deposits | 297,229 | 184,028 | 113,201 | 61.51 | % | 1,749 | 708 | 1,041 | 147.03 | % | 2.33 | % | 1.53 | % | 0.80 | % | ||||||||||||||||||||||
Total deposits | 1,645,171 | 1,497,673 | 147,498 | 9.85 | % | 6,771 | 4,768 | 2,003 | 42.01 | % | 1.63 | % | 1.26 | % | 0.37 | % | ||||||||||||||||||||||
Other borrowed funds | 190,501 | 127,196 | 63,305 | 49.77 | % | 1,725 | 1,465 | 260 | 17.75 | % | 3.59 | % | 4.57 | % | (0.98 | )% | ||||||||||||||||||||||
Total interest-bearing | ||||||||||||||||||||||||||||||||||||||
liabilities | $ | 1,835,672 | $ | 1,624,869 | $ | 210,803 | 12.97 | % | 8,496 | 6,233 | 2,263 | 36.31 | % | 1.84 | % | 1.52 | % | 0.32 | % | |||||||||||||||||||
Tax-equivalent net interest income (FTE) (4) | $ | 17,144 | $ | 15,736 | $ | 1,408 | 8.95 | % | ||||||||||||||||||||||||||||||
Net interest spread (FTE) | 2.52 | % | 2.60 | % | (0.08 | )% | ||||||||||||||||||||||||||||||||
Net interest margin (FTE) (4) | 2.91 | % | 2.95 | % | (0.04 | )% |
Data for the nine months ended September 30: | ||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Yield/Rate | ||||||||||||||||||||||||||||||||||||
2019 | 2018 | Change | Change- % | 2019 | 2018 | Change | Change- % | 2019 | 2018 | Change | ||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Loans: (1) (2) | ||||||||||||||||||||||||||||||||||||||
Commercial | $ | 381,778 | $ | 324,074 | $ | 57,704 | 17.81 | % | $ | 14,628 | $ | 11,439 | $ | 3,189 | 27.88 | % | 5.12 | % | 4.72 | % | 0.40 | % | ||||||||||||||||
Real estate (3) | 1,385,089 | 1,198,497 | 186,592 | 15.57 | % | 48,867 | 40,483 | 8,384 | 20.71 | % | 4.72 | % | 4.52 | % | 0.20 | % | ||||||||||||||||||||||
Consumer and other | 6,709 | 6,657 | 52 | 0.78 | % | 246 | 207 | 39 | 18.84 | % | 4.91 | % | 4.15 | % | 0.76 | % | ||||||||||||||||||||||
Total loans | 1,773,576 | 1,529,228 | 244,348 | 15.98 | % | 63,741 | 52,129 | 11,612 | 22.28 | % | 4.81 | % | 4.56 | % | 0.25 | % | ||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 349,719 | 324,279 | 25,440 | 7.85 | % | 7,405 | 5,995 | 1,410 | 23.52 | % | 2.82 | % | 2.46 | % | 0.36 | % | ||||||||||||||||||||||
Tax-exempt (3) | 76,836 | 180,271 | (103,435 | ) | (57.38 | )% | 1,729 | 4,301 | (2,572 | ) | (59.80 | )% | 3.00 | % | 3.18 | % | (0.18 | )% | ||||||||||||||||||||
Total investment securities | 426,555 | 504,550 | (77,995 | ) | (15.46 | )% | 9,134 | 10,296 | (1,162 | ) | (11.29 | )% | 2.86 | % | 2.72 | % | 0.14 | % | ||||||||||||||||||||
Federal funds sold | 49,389 | 25,156 | 24,233 | 96.33 | % | 819 | 336 | 483 | 143.75 | % | 2.22 | % | 1.79 | % | 0.43 | % | ||||||||||||||||||||||
Total interest-earning assets (3) | $ | 2,249,520 | $ | 2,058,934 | $ | 190,586 | 9.26 | % | 73,694 | 62,761 | 10,933 | 17.42 | % | 4.38 | % | 4.08 | % | 0.30 | % | |||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing demand, | ||||||||||||||||||||||||||||||||||||||
savings and money | ||||||||||||||||||||||||||||||||||||||
market | $ | 1,328,439 | $ | 1,257,925 | $ | 70,514 | 5.61 | % | 15,267 | 9,804 | 5,463 | 55.72 | % | 1.54 | % | 1.04 | % | 0.50 | % | |||||||||||||||||||
Time deposits | 253,355 | 178,005 | 75,350 | 42.33 | % | 4,138 | 1,774 | 2,364 | 133.26 | % | 2.18 | % | 1.33 | % | 0.85 | % | ||||||||||||||||||||||
Total deposits | 1,581,794 | 1,435,930 | 145,864 | 10.16 | % | 19,405 | 11,578 | 7,827 | 67.60 | % | 1.64 | % | 1.08 | % | 0.56 | % | ||||||||||||||||||||||
Other borrowed funds | 180,423 | 127,170 | 53,253 | 41.88 | % | 5,150 | 4,207 | 943 | 22.42 | % | 3.82 | % | 4.42 | % | (0.60 | )% | ||||||||||||||||||||||
Total interest-bearing | ||||||||||||||||||||||||||||||||||||||
liabilities | $ | 1,762,217 | $ | 1,563,100 | $ | 199,117 | 12.74 | % | 24,555 | 15,785 | 8,770 | 55.56 | % | 1.86 | % | 1.35 | % | 0.51 | % | |||||||||||||||||||
Net interest income (FTE) (4) | $ | 49,139 | $ | 46,976 | $ | 2,163 | 4.60 | % | ||||||||||||||||||||||||||||||
Net interest spread (FTE) | 2.52 | % | 2.73 | % | (0.21 | )% | ||||||||||||||||||||||||||||||||
Net interest margin (FTE) (4) | 2.92 | % | 3.05 | % | (0.13 | )% |
(1) | Average loan balances include nonaccrual loans. Interest income recognized on nonaccrual loans has been included. |
(2) | Interest income on loans includes amortization of loan fees and costs and prepayment penalties collected, which are not material. |
(3) | Tax-exempt income has been adjusted to a tax-equivalent basis using a federal income tax rate of 21 percent and is adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt investment securities and loans. |
(4) | Net interest income (FTE) and net interest margin (FTE) are non-GAAP financial measures. For further information, refer to the Non-GAAP Financial Measures section of this report. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
Balance at beginning of period | $ | 16,737 | $ | 16,518 | $ | 219 | $ | 16,689 | $ | 16,430 | $ | 259 | |||||||||||
Charge-offs | (199 | ) | — | (199 | ) | (254 | ) | (209 | ) | (45 | ) | ||||||||||||
Recoveries | 204 | 555 | (351 | ) | 307 | 702 | (395 | ) | |||||||||||||||
Net recoveries | 5 | 555 | (550 | ) | 53 | 493 | (440 | ) | |||||||||||||||
Provision for loan losses charged to operations | 300 | (400 | ) | 700 | 300 | (250 | ) | 550 | |||||||||||||||
Balance at end of period | $ | 17,042 | $ | 16,673 | $ | 369 | $ | 17,042 | $ | 16,673 | $ | 369 | |||||||||||
Average loans outstanding | $ | 1,816,450 | $ | 1,574,758 | $ | 1,773,576 | $ | 1,529,228 | |||||||||||||||
Ratio of annualized net recoveries during the period to average loans outstanding | 0.00 | % | 0.14 | % | 0.01 | % | 0.04 | % | |||||||||||||||
Ratio of allowance for loan losses to average loans outstanding | 0.94 | % | 1.06 | % | 0.96 | % | 1.09 | % | |||||||||||||||
Ratio of allowance for loan losses to total loans at end of period | 0.93 | % | 1.04 | % | 0.93 | % | 1.04 | % |
Three Months Ended September 30, | ||||||||||||||
Noninterest income: | 2019 | 2018 | Change | Change % | ||||||||||
Service charges on deposit accounts | $ | 630 | $ | 649 | $ | (19 | ) | (2.93 | )% | |||||
Debit card usage fees | 426 | 422 | 4 | 0.95 | % | |||||||||
Trust services | 572 | 445 | 127 | 28.54 | % | |||||||||
Increase in cash value of bank-owned life insurance | 168 | 158 | 10 | 6.33 | % | |||||||||
Realized investment securities gains (losses), net | 1 | (78 | ) | 79 | 101.28 | % | ||||||||
Other income: | ||||||||||||||
Guarantee fees | — | 254 | (254 | ) | (100.00 | )% | ||||||||
All other income | 361 | 264 | 97 | 36.74 | % | |||||||||
Total other income | 361 | 518 | (157 | ) | (30.31 | )% | ||||||||
Total noninterest income | $ | 2,158 | $ | 2,114 | $ | 44 | 2.08 | % | ||||||
Nine Months Ended September 30, | ||||||||||||||
Noninterest income: | 2019 | 2018 | Change | Change % | ||||||||||
Service charges on deposit accounts | $ | 1,841 | $ | 1,925 | $ | (84 | ) | (4.36 | )% | |||||
Debit card usage fees | 1,235 | 1,254 | (19 | ) | (1.52 | )% | ||||||||
Trust services | 1,536 | 1,465 | 71 | 4.85 | % | |||||||||
Increase in cash value of bank-owned life insurance | 482 | 468 | 14 | 2.99 | % | |||||||||
Realized investment securities losses, net | (64 | ) | (103 | ) | 39 | 37.86 | % | |||||||
Other income: | ||||||||||||||
Gain on sale of premises | 307 | — | 307 | N/A | ||||||||||
Guarantee fees | — | 254 | (254 | ) | (100.00 | )% | ||||||||
All other income | 939 | 787 | 152 | 19.31 | % | |||||||||
Total other income | 1,246 | 1,041 | 205 | 19.69 | % | |||||||||
Total noninterest income | $ | 6,276 | $ | 6,050 | $ | 226 | 3.74 | % |
Three Months Ended September 30, | ||||||||||||||
Noninterest expense: | 2019 | 2018 | Change | Change % | ||||||||||
Salaries and employee benefits | $ | 5,440 | $ | 4,774 | $ | 666 | 13.95 | % | ||||||
Occupancy | 1,379 | 1,250 | 129 | 10.32 | % | |||||||||
Data processing | 695 | 670 | 25 | 3.73 | % | |||||||||
FDIC insurance | — | 172 | (172 | ) | (100.00 | )% | ||||||||
Professional fees | 204 | 196 | 8 | 4.08 | % | |||||||||
Director fees | 233 | 248 | (15 | ) | (6.05 | )% | ||||||||
Other expenses: | ||||||||||||||
Marketing | 52 | 46 | 6 | 13.04 | % | |||||||||
Business development | 229 | 205 | 24 | 11.71 | % | |||||||||
Insurance expense | 95 | 92 | 3 | 3.26 | % | |||||||||
Charitable contributions | 45 | — | 45 | N/A | ||||||||||
Postage and courier | 65 | 72 | (7 | ) | (9.72 | )% | ||||||||
Subscriptions | 102 | 80 | 22 | 27.50 | % | |||||||||
Trust | 120 | 102 | 18 | 17.65 | % | |||||||||
Consulting fees | 62 | 67 | (5 | ) | (7.46 | )% | ||||||||
Low income housing projects amortization | 120 | 130 | (10 | ) | (7.69 | )% | ||||||||
New market tax credit project amortization | 230 | — | 230 | N/A | ||||||||||
All other | 465 | 457 | 8 | 1.75 | % | |||||||||
Total other | 1,585 | 1,251 | 334 | 26.70 | % | |||||||||
Total noninterest expense | $ | 9,536 | $ | 8,561 | $ | 975 | 11.39 | % | ||||||
Nine Months Ended September 30, | ||||||||||||||
Noninterest expense: | 2019 | 2018 | Change | Change % | ||||||||||
Salaries and employee benefits | $ | 16,324 | $ | 14,062 | $ | 2,262 | 16.09 | % | ||||||
Occupancy | 3,956 | 3,731 | 225 | 6.03 | % | |||||||||
Data processing | 2,091 | 2,020 | 71 | 3.51 | % | |||||||||
FDIC insurance | 404 | 499 | (95 | ) | (19.04 | )% | ||||||||
Professional fees | 647 | 608 | 39 | 6.41 | % | |||||||||
Director fees | 742 | 758 | (16 | ) | (2.11 | )% | ||||||||
Write-down of premises | — | 333 | (333 | ) | (100.00 | )% | ||||||||
Other expenses: | ||||||||||||||
Marketing | 154 | 141 | 13 | 9.22 | % | |||||||||
Business development | 765 | 692 | 73 | 10.55 | % | |||||||||
Insurance expense | 284 | 269 | 15 | 5.58 | % | |||||||||
Charitable contributions | 135 | 150 | (15 | ) | (10.00 | )% | ||||||||
Postage and courier | 207 | 212 | (5 | ) | (2.36 | )% | ||||||||
Subscriptions | 287 | 251 | 36 | 14.34 | % | |||||||||
Trust | 331 | 291 | 40 | 13.75 | % | |||||||||
Consulting fees | 193 | 192 | 1 | 0.52 | % | |||||||||
Low income housing projects amortization | 311 | 394 | (83 | ) | (21.07 | )% | ||||||||
New market tax credit project amortization | 689 | — | 689 | N/A | ||||||||||
All other | 1,310 | 1,203 | 107 | 8.89 | % | |||||||||
Total other | 4,666 | 3,795 | 871 | 22.95 | % | |||||||||
Total noninterest expense | $ | 28,830 | $ | 25,806 | $ | 3,024 | 11.72 | % |
September 30, 2019 | December 31, 2018 | Change | |||||||||
Nonaccrual loans | $ | 521 | $ | 1,928 | $ | (1,407 | ) | ||||
Loans past due 90 days and still accruing interest | — | — | — | ||||||||
Troubled debt restructured loans (1) | — | — | — | ||||||||
Total nonperforming loans | 521 | 1,928 | (1,407 | ) | |||||||
Other real estate owned | — | — | — | ||||||||
Total nonperforming assets | $ | 521 | $ | 1,928 | $ | (1,407 | ) | ||||
Nonperforming loans to total loans | 0.03 | % | 0.11 | % | (0.08 | )% | |||||
Nonperforming assets to total assets | 0.02 | % | 0.08 | % | (0.06 | )% |
(1) | While TDR loans are commonly reported by the industry as nonperforming, those not classified in the nonaccrual category are accruing interest due to payment performance. TDR loans on nonaccrual status are categorized as nonaccrual. There was one TDR loan as of September 30, 2019 and two TDR loans as of December 31, 2018 with balances of $32 and $652, respectively, categorized as nonaccrual. |
Actual | For Capital Adequacy Purposes | For Capital Adequacy Purposes With Capital Conservation Buffer | To Be Well-Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of September 30, 2019: | |||||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | |||||||||||||||||||||||||||
Consolidated | $ | 247,171 | 11.64 | % | $ | 169,823 | 8.00 | % | $ | 222,893 | 10.50 | % | N/A | N/A | |||||||||||||
West Bank | 254,511 | 11.99 | % | 169,771 | 8.00 | % | 222,825 | 10.50 | % | $ | 212,214 | 10.00 | % | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | |||||||||||||||||||||||||||
Consolidated | 230,129 | 10.84 | % | 127,367 | 6.00 | % | 180,437 | 8.50 | % | N/A | N/A | ||||||||||||||||
West Bank | 237,469 | 11.19 | % | 127,329 | 6.00 | % | 180,382 | 8.50 | % | 169,771 | 8.00 | % | |||||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | |||||||||||||||||||||||||||
Consolidated | 210,129 | 9.90 | % | 95,525 | 4.50 | % | 148,595 | 7.00 | % | N/A | N/A | ||||||||||||||||
West Bank | 237,469 | 11.19 | % | 95,496 | 4.50 | % | 148,550 | 7.00 | % | 137,939 | 6.50 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||||
Consolidated | 230,129 | 9.41 | % | 97,840 | 4.00 | % | 97,840 | 4.00 | % | N/A | N/A | ||||||||||||||||
West Bank | 237,469 | 9.71 | % | 97,801 | 4.00 | % | 97,801 | 4.00 | % | 122,252 | 5.00 | % | |||||||||||||||
As of December 31, 2018: | |||||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | |||||||||||||||||||||||||||
Consolidated | $ | 234,526 | 11.50 | % | $ | 163,213 | 8.00 | % | $ | 201,466 | 9.875 | % | N/A | N/A | |||||||||||||
West Bank | 245,962 | 12.07 | % | 163,076 | 8.00 | % | 201,297 | 9.875 | % | $ | 203,845 | 10.00 | % | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | |||||||||||||||||||||||||||
Consolidated | 217,837 | 10.68 | % | 122,410 | 6.00 | % | 160,663 | 7.875 | % | N/A | N/A | ||||||||||||||||
West Bank | 229,273 | 11.25 | % | 122,307 | 6.00 | % | 160,528 | 7.875 | % | 163,076 | 8.00 | % | |||||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | |||||||||||||||||||||||||||
Consolidated | 197,837 | 9.70 | % | 91,807 | 4.50 | % | 130,060 | 6.375 | % | N/A | N/A | ||||||||||||||||
West Bank | 229,273 | 11.25 | % | 91,730 | 4.50 | % | 129,951 | 6.375 | % | 132,499 | 6.50 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||||
Consolidated | 217,837 | 9.74 | % | 89,485 | 4.00 | % | 89,485 | 4.00 | % | N/A | N/A | ||||||||||||||||
West Bank | 229,273 | 10.26 | % | 89,410 | 4.00 | % | 89,410 | 4.00 | % | 111,762 | 5.00 | % |
Exhibits | Description |
31.1 | |
31.2 | |
32.1 | |
32.2 | |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
West Bancorporation, Inc. | |||
(Registrant) | |||
October 24, 2019 | By: | /s/ David D. Nelson | |
Date | David D. Nelson | ||
Chief Executive Officer and President | |||
(Principal Executive Officer) | |||
October 24, 2019 | By: | /s/ Douglas R. Gulling | |
Date | Douglas R. Gulling | ||
Executive Vice President, Treasurer and Chief Financial Officer | |||
(Principal Financial Officer) | |||
October 24, 2019 | By: | /s/ Jane M. Funk | |
Date | Jane M. Funk | ||
Senior Vice President, Controller and Chief Accounting Officer | |||
(Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of West Bancorporation, Inc.; |
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: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of West Bancorporation, Inc.; |
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: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis by level as of September 30, 2019 and December 31, 2018.
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Carrying Amounts And Approximate Fair Values Of Financial Instruments [Table Text Block] | The following table presents the carrying amounts and approximate fair values of financial assets and liabilities as of September 30, 2019 and December 31, 2018.
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Deferred Income Taxes (Tables) |
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Components of Deferred Tax Assets and Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax assets consisted of the following as of September 30, 2019 and December 31, 2018.
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Earnings Per Common Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculations of earnings per common share and diluted earnings per common share for the three and nine months ended September 30, 2019 and 2018 are presented in the following table.
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Derivatives (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2020 |
Dec. 31, 2018 |
Dec. 31, 2015 |
|
Derivative [Line Items] | ||||
Average remaining maturity | 5 years 8 months 12 days | 5 years 8 months 12 days | ||
Forward-starting interest rate swaps [Member] | ||||
Derivative [Line Items] | ||||
Average remaining maturity | 6 years | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Average variable interest rate | 2.42% | 3.22% | ||
Average fixed interest rate | 2.34% | 2.82% | ||
Cash Flow Hedging [Member] | Notional of swaps hedging rolling funding [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 100,000 | |||
Cash Flow Hedging [Member] | Forward-starting interest rate swaps [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 75,000 | |||
Average variable interest rate | 0.00% | |||
Average fixed interest rate | 1.73% | |||
Cash Flow Hedging [Member] | Notional amount of swaps hedging money market deposits [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 50,000 | |||
Cash Flow Hedging [Member] | Terminated interest rate swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative termination fee paid | $ 541 | |||
Cash Flow Hedging [Member] | Terminated interest rate swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 70,000 | |||
Cash Flow Hedging [Member] | Interest rate swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 260,000 | $ 110,000 | ||
Collateral posted | 10,770 | 0 | ||
Cash Flow Hedging [Member] | Interest rate swap [Member] | Designated as Hedging Instrument [Member] | Counterparties [Member] | ||||
Derivative [Line Items] | ||||
Collateral posted | 0 | 2,410 | ||
Cash Flow Hedging [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Interest rate cash flow hedge liability at fair value | (9,249) | |||
Cash Flow Hedging [Member] | Other Liabilities [Member] | Forward-starting interest rate swaps [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Interest rate cash flow hedge liability at fair value | $ (1,594) | |||
Cash Flow Hedging [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Interest rate cash flow hedge asset at fair value | $ 1,863 | |||
Forecast [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative instruments, gain (loss) reclassification from AOCI to interest expense, estimated net amount to be transferred | $ 155 |
Deferred Income Taxes Capital loss carryforwards (Details) |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Maximum [Member] | |
Operating Loss Carryforwards [Line Items] | |
Capital loss carryforwards, expiration date | Dec. 31, 2022 |
Fair Value Measurements Carrying Amounts and Fair Values (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | $ 62,119 | $ 46,369 |
Federal funds sold | 67,168 | 1,105 |
Investment securities available for sale | 410,371 | 453,758 |
Federal Home Loan Bank stock | 11,685 | 12,037 |
Loans, net | 1,819,688 | 1,705,141 |
Accrued interest receivable | 7,995 | 7,631 |
Deposits | 2,024,807 | 1,894,529 |
Federal funds purchased | 3,535 | 19,985 |
Federal Home Loan Bank advances, net of discount | 153,998 | 137,878 |
Long-term debt | 22,954 | 27,040 |
Carrying value [Member] | Fair value, inputs, level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 62,119 | 46,369 |
Federal funds sold | 67,168 | 1,105 |
Federal Home Loan Bank stock | 11,685 | 12,037 |
Accrued interest receivable | 7,995 | 7,631 |
Federal funds purchased | 3,535 | 19,985 |
Accrued interest payable | 2,146 | 1,317 |
Carrying value [Member] | Fair value, inputs, level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 410,371 | 453,758 |
Loans, net | 1,819,688 | 1,705,141 |
Derivative asset, interest rate swap | 0 | 1,863 |
Deposits | 2,024,807 | 1,894,529 |
Subordinated notes, net | 20,435 | 20,425 |
Federal Home Loan Bank advances, net of discount | 153,998 | 137,878 |
Long-term debt | 22,954 | 27,040 |
Interest rate swaps | 10,843 | 0 |
Carrying value [Member] | Fair value, inputs, level 3 [Member] | Commitments to extend credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value disclosure, off-balance sheet risks, Face Amount, Liability | 0 | 0 |
Carrying value [Member] | Fair value, inputs, level 3 [Member] | Standby letters of credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value disclosure, off-balance sheet risks, Face Amount, Liability | 0 | 0 |
Approximate fair value [Member] | Fair value, inputs, level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 62,119 | 46,369 |
Federal funds sold | 67,168 | 1,105 |
Federal Home Loan Bank stock | 11,685 | 12,037 |
Accrued interest receivable | 7,995 | 7,631 |
Federal funds purchased | 3,535 | 19,985 |
Accrued interest payable | 2,146 | 1,317 |
Approximate fair value [Member] | Fair value, inputs, level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 410,371 | 453,758 |
Loans, net | 1,839,219 | 1,688,700 |
Derivative asset, interest rate swap | 0 | 1,863 |
Deposits | 2,025,620 | 1,893,621 |
Subordinated notes, net | 17,854 | 15,498 |
Federal Home Loan Bank advances, net of discount | 153,998 | 137,878 |
Long-term debt | 22,934 | 27,000 |
Interest rate swaps | 10,843 | 0 |
Approximate fair value [Member] | Fair value, inputs, level 3 [Member] | Commitments to extend credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value disclosure, off-balance sheet risks, Face Amount, Liability | 0 | 0 |
Approximate fair value [Member] | Fair value, inputs, level 3 [Member] | Standby letters of credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value disclosure, off-balance sheet risks, Face Amount, Liability | $ 0 | $ 0 |
Leases Lease Rental Commitments (Details) $ in Thousands |
Sep. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Operating leases, liability, payments, remainder of fiscal year | $ 421 |
Operating leases, liability, payments, due in year two | 1,681 |
Operating leases, liability, payments, due in year three | 1,627 |
Operating leases, liability, payments, due in year four | 1,583 |
Operating leases, liability, payments, due in year five | 1,565 |
Operating leases, liability, payments, due thereafter | 3,882 |
Operating leases, future minimum payments due | 10,759 |
Operating lease discount effect | (1,310) |
Operating leases, liability, current | $ 9,449 |
Comprehensive Income Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Accumulated Other Comprehensive Income, Changes [Roll Forward] | ||||
Accumulated other comprehensive income (loss), balance beg. of period | $ (6,814) | |||
Net current period other comprehensive income (loss), net of tax | $ (2,669) | $ (2,346) | 822 | $ (6,252) |
Accumulated other comprehensive income (loss), balance end of period | (5,992) | (5,992) | ||
Unrealized gains (losses) on securities [Member] | ||||
Accumulated Other Comprehensive Income, Changes [Roll Forward] | ||||
Accumulated other comprehensive income (loss), balance beg. of period | (8,123) | (2,237) | ||
Held to maturity securities, transferred to available for sale securities, unrealized gain (loss) | 273 | |||
Other comprehensive income (loss) before reclassifications, net of tax | 10,255 | (9,281) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax. | 48 | 53 | ||
Net current period other comprehensive income (loss), net of tax | 10,303 | (8,955) | ||
Reclassification of stranded tax effects | (475) | |||
Accumulated other comprehensive income (loss), balance end of period | 2,180 | (11,667) | 2,180 | (11,667) |
Unrealized gains (losses) on derivatives [Member] | ||||
Accumulated Other Comprehensive Income, Changes [Roll Forward] | ||||
Accumulated other comprehensive income (loss), balance beg. of period | 1,309 | 345 | ||
Held to maturity securities, transferred to available for sale securities, unrealized gain (loss) | 0 | |||
Other comprehensive income (loss) before reclassifications, net of tax | (9,268) | 2,634 | ||
Amounts reclassified from accumulated other comprehensive income, net of tax. | (213) | 69 | ||
Net current period other comprehensive income (loss), net of tax | (9,481) | 2,703 | ||
Reclassification of stranded tax effects | 105 | |||
Accumulated other comprehensive income (loss), balance end of period | (8,172) | 3,153 | (8,172) | 3,153 |
Accumulated other comprehensive income (loss) [Member] | ||||
Accumulated Other Comprehensive Income, Changes [Roll Forward] | ||||
Accumulated other comprehensive income (loss), balance beg. of period | (6,814) | (1,892) | ||
Held to maturity securities, transferred to available for sale securities, unrealized gain (loss) | 273 | |||
Other comprehensive income (loss) before reclassifications, net of tax | 987 | (6,647) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax. | (165) | 122 | ||
Net current period other comprehensive income (loss), net of tax | (2,669) | (2,346) | 822 | (6,252) |
Reclassification of stranded tax effects | (370) | |||
Accumulated other comprehensive income (loss), balance end of period | $ (5,992) | $ (8,514) | $ (5,992) | $ (8,514) |
Investment Securities Contractual Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||
Due in one year or less, amortized cost | $ 2,000 | |
Due after one year through five years, amortized cost | 19,967 | |
Due after five years through ten years, amortized cost | 69,079 | |
Due after ten years, amortized cost | 44,327 | |
Subtotal before securities without single maturities, amortized cost | 135,373 | |
Collateralized mortgage obligations and mortgage-backed and asset-backed securities, amortized cost | 272,092 | |
Investment securities available for sale, amortized cost | 407,465 | $ 464,589 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Due in one year or less, fair value | 2,001 | |
Due after one year through five years, fair value | 19,979 | |
Due after five years through ten years, fair value | 68,432 | |
Due after ten years, fair value | 46,066 | |
Subtotal before securities without single maturities, fair value | 136,478 | |
Collateralized mortgage obligations and mortgage-backed and asset-backed securities, fair value | 273,893 | |
Investment securities available for sale, fair value | $ 410,371 | $ 453,758 |
Loans and Allowance for Loan Losses Schedule of Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Loans Receivable [Line Items] | ||
Loans receivable, gross | $ 1,838,918 | $ 1,724,330 |
Net unamortized fees and costs | (2,188) | (2,500) |
Loans, net of unamortized fees and costs | 1,836,730 | 1,721,830 |
Commercial [Member] | ||
Loans Receivable [Line Items] | ||
Loans receivable, gross | 396,202 | 358,763 |
Construction, land and land development [Member] | ||
Loans Receivable [Line Items] | ||
Loans receivable, gross | 252,242 | 245,810 |
1-4 family residential first mortgages [Member] | ||
Loans Receivable [Line Items] | ||
Loans receivable, gross | 49,460 | 49,052 |
Home equity [Member] | ||
Loans Receivable [Line Items] | ||
Loans receivable, gross | 13,158 | 14,469 |
Commercial real estate [Member] | ||
Loans Receivable [Line Items] | ||
Loans receivable, gross | 1,120,433 | 1,050,025 |
Consumer and other [Member] | ||
Loans Receivable [Line Items] | ||
Loans receivable, gross | $ 7,423 | $ 6,211 |
Loans and Allowance for Loan Losses Schedule of Past Due Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | $ 171 | $ 211 |
Loans, recorded investment, current | 1,838,226 | 1,722,191 |
Loans, recorded investment, nonaccrual status | 521 | 1,928 |
Loans | 1,838,918 | 1,724,330 |
Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 54 |
Loans, recorded investment, current | 395,760 | 357,680 |
Loans, recorded investment, nonaccrual status | 442 | 1,029 |
Loans | 396,202 | 358,763 |
Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, recorded investment, current | 252,242 | 245,810 |
Loans, recorded investment, nonaccrual status | 0 | 0 |
Loans | 252,242 | 245,810 |
1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 171 | 157 |
Loans, recorded investment, current | 49,276 | 48,789 |
Loans, recorded investment, nonaccrual status | 13 | 106 |
Loans | 49,460 | 49,052 |
Home equity [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, recorded investment, current | 13,124 | 14,428 |
Loans, recorded investment, nonaccrual status | 34 | 41 |
Loans | 13,158 | 14,469 |
Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, recorded investment, current | 1,120,401 | 1,049,273 |
Loans, recorded investment, nonaccrual status | 32 | 752 |
Loans | 1,120,433 | 1,050,025 |
Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, recorded investment, current | 7,423 | 6,211 |
Loans, recorded investment, nonaccrual status | 0 | 0 |
Loans | 7,423 | 6,211 |
Loans, 30 to 59 days past due [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 171 | 211 |
Loans, 30 to 59 days past due [Member] | Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 54 |
Loans, 30 to 59 days past due [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 30 to 59 days past due [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 171 | 157 |
Loans, 30 to 59 days past due [Member] | Home equity [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 30 to 59 days past due [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 30 to 59 days past due [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 60 to 89 days past due [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 60 to 89 days past due [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Home equity [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, 60 to 89 days past due [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, equal to greater than 90 days past due [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, equal to greater than 90 days past due [Member] | Commercial [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, equal to greater than 90 days past due [Member] | Construction, land and land development [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, equal to greater than 90 days past due [Member] | 1-4 family residential first mortgages [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, equal to greater than 90 days past due [Member] | Home equity [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, equal to greater than 90 days past due [Member] | Commercial real estate [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | 0 | 0 |
Loans, equal to greater than 90 days past due [Member] | Consumer and other [Member] | ||
Loans, Recorded Investment, Past Due [Line Items] | ||
Loans, recorded investment, past due | $ 0 | $ 0 |
Commitments and Contingencies (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Text Block] | Commitments and Contingencies Financial instruments with off-balance-sheet risk: The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations that it uses for on-balance-sheet instruments. The Company's commitments consisted of the following approximate amounts as of September 30, 2019 and December 31, 2018.
West Bank previously executed Mortgage Partnership Finance (MPF) Master Commitments (Commitments) with the FHLB of Des Moines to deliver residential mortgage loans and to guarantee the payment of any realized losses that exceed the FHLB's first loss account for mortgages delivered under the Commitments. West Bank receives credit enhancement fees from the FHLB for providing this guarantee and continuing to assist with managing the credit risk of the MPF Program residential mortgage loans. The outstanding balance of mortgage loans sold under the MPF Program was $68,271 and $78,024 at September 30, 2019 and December 31, 2018, respectively. Contractual commitments: The Company had remaining commitments to invest in qualified affordable housing projects totaling $2,241 and $4,421 as of September 30, 2019 and December 31, 2018, respectively. Contingencies: Neither the Company nor West Bank is a party, and no property of these entities is subject, to any material pending legal proceedings, other than ordinary routine litigation incidental to West Bank's business. The Company does not know of any proceeding contemplated by a governmental authority against the Company or West Bank. |
Loans and Allowance for Loan Losses (Notes) |
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Loans and Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses [Text Block] | Loans and Allowance for Loan Losses Loans consisted of the following segments as of September 30, 2019 and December 31, 2018.
Real estate loans of approximately $850,000 and $800,000 were pledged as security for Federal Home Loan Bank (FHLB) advances as of September 30, 2019 and December 31, 2018, respectively. Loans are stated at the principal amounts outstanding, net of unamortized loan fees and costs, with interest income recognized on the interest method based upon the terms of the loan. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans are reported by the portfolio segments identified above and are analyzed by management on this basis. All loan policies identified below apply to all segments of the loan portfolio. Delinquencies are determined based on the payment terms of the individual loan agreements. The accrual of interest on past due and other impaired loans is generally discontinued at 90 days past due or when, in the opinion of management, the borrower may be unable to make all payments pursuant to contractual terms. Unless considered collectible, all interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, if accrued in the current year, or charged to the allowance for loan losses, if accrued in the prior year. Generally, all payments received while a loan is on nonaccrual status are applied to the principal balance of the loan. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is classified as a troubled debt restructured (TDR) loan when the Company separately concludes that a borrower is experiencing financial difficulties and a concession is granted that would not otherwise be considered. Concessions may include a restructuring of the loan terms to alleviate the burden of the borrower's cash requirements, such as an extension of the payment terms beyond the original maturity date or a change in the interest rate charged. TDR loans with extended payment terms are accounted for as impaired until performance is established. A change to the interest rate would change the classification of a loan to a TDR loan if the restructured loan yields a rate that is below a market rate for that of a new loan with comparable risk. TDR loans with below-market rates are considered impaired until fully collected. TDR loans may also be reported as nonaccrual or 90 days past due if they are not performing per the restructured terms. Based upon its ongoing assessment of credit quality within the loan portfolio, the Company maintains a Watch List, which includes loans classified as Doubtful, Substandard and Watch according to the Company's classification criteria. These loans involve the anticipated potential for payment defaults or collateral inadequacies. A loan on the Watch List is considered impaired when management believes it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral if the loan is collateral dependent. The amount of impairment, if any, and any subsequent changes are included in the allowance for loan losses. TDR loans totaled $32 and $652 as of September 30, 2019 and December 31, 2018, respectively, and were included in the nonaccrual category. There were no loan modifications considered to be TDR that occurred during the three and nine months ended September 30, 2019 and the three months ended September 30, 2018. There was one loan modification considered to be TDR, with a pre- and post-modification recorded investment of $560, that occurred during the nine months ended September 30, 2018. No TDR loans that were modified within the twelve months preceding September 30, 2019 have subsequently had a payment default. One TDR loan that was modified within the twelve months preceding September 30, 2018, with a recorded investment of $552, has subsequently had a payment default. A TDR loan is considered to have a payment default when it is past due 30 days or more. The following table summarizes the recorded investment in impaired loans by segment, broken down by loans with no related allowance for loan losses and loans with a related allowance and the amount of that allowance as of September 30, 2019 and December 31, 2018.
The balance of impaired loans at September 30, 2019 and December 31, 2018 was composed of six and ten different borrowers, respectively. The Company has no commitments to advance additional funds on any of the impaired loans. The following table summarizes the average recorded investment and interest income recognized on impaired loans by segment for the three and nine months ended September 30, 2019 and 2018.
The following tables provide an analysis of the payment status of the recorded investment in loans as of September 30, 2019 and December 31, 2018.
The following tables present the recorded investment in loans by credit quality indicator and loan segment as of September 30, 2019 and December 31, 2018.
All loans are subject to the assessment of a credit quality indicator. Risk ratings are assigned for each loan at the time of approval, and they change as circumstances dictate during the term of the loan. The Company utilizes a 9-point risk rating scale as shown below, with ratings 1 - 5 included in the Pass column, rating 6 included in the Watch column, ratings 7 - 8 included in the Substandard column and rating 9 included in the Doubtful column. All loans classified as impaired that are included in the specific evaluation of the allowance for loan losses are included in the Substandard column along with all other loans with ratings of 7 - 8. Risk rating 1: The loan is secured by cash equivalent collateral. Risk rating 2: The loan is secured by properly margined marketable securities, bonds or cash surrender value of life insurance. Risk rating 3: The borrower is in strong financial condition and has strong debt service capacity. The loan is performing as agreed, and the financial characteristics and trends of the borrower exceed industry statistics. Risk rating 4: The borrower's financial condition is satisfactory and stable. The borrower has satisfactory debt service capacity, and the loan is well secured. The loan is performing as agreed, and the financial characteristics and trends fall in line with industry statistics. Risk rating 5: The borrower's financial condition is less than satisfactory. The loan is still generally paying as agreed, but strained cash flows may cause some slowness in payments. The collateral values adequately preclude loss on the loan. Financial characteristics and trends lag industry statistics. There may be noncompliance with loan covenants. Risk rating 6: The borrower's financial condition is deficient. Payment delinquencies may be more common. Collateral values still protect from loss, but margins are narrow. The loan may be reliant on secondary sources of repayment, including liquidation of collateral and guarantor support. Risk rating 7: The loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Well-defined weaknesses exist that jeopardize the liquidation of the debt. The Company is inadequately protected by the valuation or paying capacity of the collateral pledged. If deficiencies are not corrected, there is a distinct possibility that a loss will be sustained. Risk rating 8: All the characteristics of rating 7 exist with the added condition that the loan is past due more than 90 days or there is reason to believe the Company will not receive its principal and interest according to the terms of the loan agreement. Risk rating 9: All the weaknesses inherent in risk ratings 7 and 8 exist with the added condition that collection or liquidation, on the basis of currently known facts, conditions and values, is highly questionable and improbable. A loan reaching this category would most likely be charged off. Credit quality indicators for all loans and the Company's risk rating process are dynamic and updated on a continuous basis. Risk ratings are updated as circumstances that could affect the repayment of an individual loan are brought to management's attention through an established monitoring process. Individual lenders initiate changes as appropriate for ratings 1 through 5, and changes for ratings 6 through 9 are initiated via communications with management. The likelihood of loss increases as the risk rating increases and is generally preceded by a loan appearing on the Watch List, which consists of all loans with a risk rating of 6 or worse. Written action plans with firm target dates for resolution of identified problems are maintained and reviewed on a quarterly basis for all segments of loans included on the Watch List. In addition to the Company's internal credit monitoring practices and procedures, an outsourced independent credit review function is in place to further assess assigned internal risk classifications and monitor compliance with internal lending policies and procedures. In all portfolio segments, the primary risks are that a borrower's income stream diminishes to the point that the borrower is not able to make scheduled principal and interest payments and any collateral securing the loan declines in value. The risk of declining collateral values is present for most types of loans. Commercial loans consist primarily of loans to businesses for various purposes, including revolving lines to finance current operations, inventory and accounts receivable, and capital expenditure loans to finance equipment and other fixed assets. These loans generally have short maturities, have either adjustable or fixed interest rates, and are either unsecured or secured by inventory, accounts receivable and/or fixed assets. For commercial loans, the primary source of repayment is from the operation of the business. Real estate loans include various types of loans for which the Company holds real property as collateral, and consist of loans on commercial properties and single and multifamily residences. Real estate loans are typically structured to mature or reprice every five to ten years with payments based on amortization periods up to 30 years. The majority of construction loans are to contractors and developers for construction of commercial buildings or residential real estate. These loans typically have maturities of up to 24 months. The Company's loan policy includes minimum appraisal and other credit guidelines. Consumer loans include loans extended to individuals for household, family and other personal expenditures not secured by real estate. The majority of the Company's consumer lending is for vehicles, consolidation of personal debts and household improvements. The repayment source for consumer loans, including 1-4 family residential and home equity loans, is typically wages. The allowance for loan losses is established through a provision for loan losses charged to expense. The allowance is an amount that management believes will be adequate to absorb probable losses on existing loans based on an evaluation of the collectability of loans and prior loss experience. This evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, the review of specific problem loans, and the current economic conditions that may affect the borrower's ability to pay. Loans are charged-off against the allowance for loan losses when management believes that collectability of the principal is unlikely. While management uses the best information available to make its evaluations, future adjustments to the allowance may be necessary if there are significant changes in economic conditions or the other factors relied upon. The allowance for loan losses consists of specific and general components. The specific component relates to loans that meet the definition of impaired. The general component covers the remaining loans and is based on historical loss experience adjusted for qualitative factors such as delinquency trends, loan growth, economic elements and local market conditions. These same policies are applied to all segments of loans. In addition, regulatory agencies, as an integral part of their examination processes, periodically review the Company's allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. The following tables detail the changes in the allowance for loan losses by segment for the three and nine months ended September 30, 2019 and 2018.
The following tables present a breakdown of the allowance for loan losses disaggregated on the basis of impairment analysis method by segment as of September 30, 2019 and December 31, 2018.
The following tables present the recorded investment in loans, exclusive of unamortized fees and costs, disaggregated on the basis of impairment analysis method by segment as of September 30, 2019 and December 31, 2018.
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Leases Lease Discounting Reconciliation (Details) $ in Thousands |
Sep. 30, 2019
USD ($)
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Leases [Abstract] | |
Operating leases, undiscounted cash flows | $ 10,759 |
Operating leases, discount effect of cash flows | (1,310) |
Operating leases, liability, current | $ 9,449 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
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Commitments [Line Items] | ||
Outstanding loan commitments | $ 688,815 | $ 648,212 |
Commitments to extend credit [Member] | ||
Commitments [Line Items] | ||
Outstanding loan commitments | 682,185 | 641,581 |
Standby letters of credit [Member] | ||
Commitments [Line Items] | ||
Outstanding loan commitments | $ 6,630 | $ 6,631 |
Fair Value Measurements Fair Value Measurements Narratives (Details) |
9 Months Ended |
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Sep. 30, 2019
USD ($)
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Fair Value Disclosures [Abstract] | |
Transfers between levels, fair value disclosure | $ 0 |
Loans and Allowance for Loan Losses Schedule of Impaired Loans With and Without an Allowance 2 (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Loans, Impaired [Line Items] | ||||
Impaired loans, with no related allowance, average recorded investment | $ 902 | $ 1,899 | $ 1,377 | $ 1,512 |
Impaired loans, with no related allowance, interest income, accrual method | 61 | 6 | 69 | 6 |
Impaired loans, with related allowance, average recorded investment | 45 | 122 | 85 | 129 |
Impaired loans, with related allowance, interest income, accrual method | 6 | 0 | 6 | 0 |
Impaired loans, average recorded investment | 947 | 2,021 | 1,462 | 1,641 |
Impaired loans, interest income, accrual method | 67 | 6 | 75 | 6 |
Commercial [Member] | ||||
Loans, Impaired [Line Items] | ||||
Impaired loans, with no related allowance, average recorded investment | 546 | 950 | 796 | 661 |
Impaired loans, with no related allowance, interest income, accrual method | 39 | 0 | 39 | 0 |
Impaired loans, with related allowance, average recorded investment | 0 | 0 | 9 | 0 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 | 0 |
Impaired loans, average recorded investment | 546 | 950 | 805 | 661 |
Impaired loans, interest income, accrual method | 39 | 0 | 39 | 0 |
Construction, land and land development [Member] | ||||
Loans, Impaired [Line Items] | ||||
Impaired loans, with no related allowance, average recorded investment | 0 | 0 | 0 | 0 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 0 | 0 |
Impaired loans, with related allowance, average recorded investment | 0 | 0 | 0 | 0 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 | 0 |
Impaired loans, average recorded investment | 0 | 0 | 0 | 0 |
Impaired loans, interest income, accrual method | 0 | 0 | 0 | 0 |
1-4 family residential first mortgages [Member] | ||||
Loans, Impaired [Line Items] | ||||
Impaired loans, with no related allowance, average recorded investment | 16 | 113 | 52 | 115 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 6 | 0 |
Impaired loans, with related allowance, average recorded investment | 0 | 0 | 0 | 0 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 | 0 |
Impaired loans, average recorded investment | 16 | 113 | 52 | 115 |
Impaired loans, interest income, accrual method | 0 | 0 | 6 | 0 |
Home equity [Member] | ||||
Loans, Impaired [Line Items] | ||||
Impaired loans, with no related allowance, average recorded investment | 35 | 129 | 34 | 155 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 6 | 2 | 6 |
Impaired loans, with related allowance, average recorded investment | 0 | 15 | 0 | 17 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 | 0 |
Impaired loans, average recorded investment | 35 | 144 | 34 | 172 |
Impaired loans, interest income, accrual method | 0 | 6 | 2 | 6 |
Commercial real estate [Member] | ||||
Loans, Impaired [Line Items] | ||||
Impaired loans, with no related allowance, average recorded investment | 305 | 707 | 495 | 581 |
Impaired loans, with no related allowance, interest income, accrual method | 22 | 0 | 22 | 0 |
Impaired loans, with related allowance, average recorded investment | 45 | 107 | 76 | 112 |
Impaired loans, with related allowance, interest income, accrual method | 6 | 0 | 6 | 0 |
Impaired loans, average recorded investment | 350 | 814 | 571 | 693 |
Impaired loans, interest income, accrual method | 28 | 0 | 28 | 0 |
Consumer and other [Member] | ||||
Loans, Impaired [Line Items] | ||||
Impaired loans, with no related allowance, average recorded investment | 0 | 0 | 0 | 0 |
Impaired loans, with no related allowance, interest income, accrual method | 0 | 0 | 0 | 0 |
Impaired loans, with related allowance, average recorded investment | 0 | 0 | 0 | 0 |
Impaired loans, with related allowance, interest income, accrual method | 0 | 0 | 0 | 0 |
Impaired loans, average recorded investment | 0 | 0 | 0 | 0 |
Impaired loans, interest income, accrual method | $ 0 | $ 0 | $ 0 | $ 0 |
Investment Securities Security Type - Available for Sale (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | $ 407,465 | $ 464,589 |
Investment securities available for sale, gross unrealized gains | 4,371 | 282 |
Investment securities available for sale, gross unrealized (losses) | (1,465) | (11,113) |
Investment securities available for sale, at fair value | 410,371 | 453,758 |
State and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 46,164 | 152,293 |
Investment securities available for sale, gross unrealized gains | 1,754 | 156 |
Investment securities available for sale, gross unrealized (losses) | 0 | (3,293) |
Investment securities available for sale, at fair value | 47,918 | 149,156 |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 202,616 | 161,392 |
Investment securities available for sale, gross unrealized gains | 2,055 | 0 |
Investment securities available for sale, gross unrealized (losses) | (469) | (4,388) |
Investment securities available for sale, at fair value | 204,202 | 157,004 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 50,908 | 64,813 |
Investment securities available for sale, gross unrealized gains | 303 | 0 |
Investment securities available for sale, gross unrealized (losses) | (123) | (1,435) |
Investment securities available for sale, at fair value | 51,088 | 63,378 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 18,568 | 32,076 |
Investment securities available for sale, gross unrealized gains | 63 | 2 |
Investment securities available for sale, gross unrealized (losses) | (28) | (175) |
Investment securities available for sale, at fair value | 18,603 | 31,903 |
Collateralized loan obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 71,909 | |
Investment securities available for sale, gross unrealized gains | 32 | |
Investment securities available for sale, gross unrealized (losses) | (70) | |
Investment securities available for sale, at fair value | 71,871 | |
Trust preferred security [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 2,153 | |
Investment securities available for sale, gross unrealized gains | 0 | |
Investment securities available for sale, gross unrealized (losses) | (253) | |
Investment securities available for sale, at fair value | 1,900 | |
Corporate notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale, amortized cost | 17,300 | 51,862 |
Investment securities available for sale, gross unrealized gains | 164 | 124 |
Investment securities available for sale, gross unrealized (losses) | (775) | (1,569) |
Investment securities available for sale, at fair value | $ 16,689 | $ 50,417 |
Investment Securities Other Narratives - AFS securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Dec. 31, 2018 |
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Investments, Debt and Equity Securities [Abstract] | ||
Securities pledged as collateral at amortized cost | $ 138,973 | $ 126,531 |
Leases Leases (Notes) |
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Leases Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Leases of Lessee Disclosure [Text Block] | Leases Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) and all subsequent ASUs that modified Topic 842. The Company leases real estate for its main office, nine branch offices and office space for operations departments under various operating lease agreements. The lease agreements have maturity dates ranging from May 2021 to February 2033, some of which include options to renew at the Company's discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the measurement of the right-of-use asset and lease liability. The weighted average remaining life of the term of these leases was 7.9 years as of September 30, 2019. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption and as of the lease commencement date for leases entered into subsequent to January 1, 2019. The weighted average discount rate used in the measurement of the operating lease liability was 3.16% as of September 30, 2019. The total operating lease costs were $418 and $1,212 for the three and nine months ended September 30, 2019, respectively. The right-of-use asset and lease liability were $9,216 and $9,449 as of September 30, 2019, respectively. Total estimated rental commitments for the operating leases were as follows as of September 30, 2019.
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Derivatives (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Text Block] | Derivatives The Company has entered into various interest rate swaps as part of its interest rate risk management strategy. The Company uses interest rate swap agreements to manage its exposures to the variability in certain interest payments due to interest rate movements. The interest rate swaps involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed payments. At December 31, 2018, the Company had three interest rate swaps with a total notional amount of $110,000 hedging the variable interest payments on certain borrowings and customer deposits. In the first nine months of 2019, the Company has entered into eight additional interest rate swaps. Four of these swaps with a total notional amount of $100,000 hedge the interest payments of rolling fixed-rate one- or three-month funding consisting of FHLB advances or brokered deposits. Three of these swaps with a total notional amount of $75,000 are forward-starting swaps to hedge the interest payments of rolling one-month funding consisting of FHLB advances or brokered deposits, with starting dates from December 2019 to September 2020. Lastly, the Company entered into one interest rate swap with a notional amount of $50,000 to hedge the interest payments of money market deposit accounts. The interest rate swaps are designated as cash flow hedges. The Company is exposed to credit risk in the event of nonperformance by counterparties to the interest rate swaps, which is minimized by collateral-pledging provisions in the agreements. Derivative contracts are executed with a Credit Support Annex, which is a bilateral ratings-sensitive agreement that requires collateral postings at established credit threshold levels. These agreements protect the interests of the Company and its counterparties should either party suffer a credit rating deterioration. As of September 30, 2019 and December 31, 2018, the Company pledged $10,770 and $0, respectively, of collateral to the counterparty in the form of cash on deposit with a third party. The Company's counterparty was required to pledge $0 and $2,410 at September 30, 2019 and December 31, 2018, respectively. The Company estimates there will be approximately $155 reclassified from accumulated other comprehensive income (AOCI) to interest expense through the 12 months ending September 30, 2020. Interest rate swaps with a total notional amount of $70,000 were terminated in 2015, subject to termination fees totaling $541. The termination fees are being reclassified from accumulated other comprehensive income to interest expense over the remaining life of the underlying cash flows through June 2020. The table below identifies the balance sheet category and fair values of the Company's derivative instruments designated as cash flow hedges as of September 30, 2019 and December 31, 2018.
The following table identifies the pre-tax gains or losses recognized on the Company's derivative instruments designated as cash flow hedges for the nine months ended September 30, 2019 and 2018.
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Comprehensive Income (Tables) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2019 and 2018.
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments [Table Text Block] | The following tables show the amortized cost, gross unrealized gains and losses, and fair value of investment securities, by investment security type as of September 30, 2019 and December 31, 2018.
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Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of investment securities available for sale as of September 30, 2019, by contractual maturity, are shown below. Certain securities have call features that allow the issuer to call the securities prior to maturity. Expected maturities may differ from contractual maturities for collateralized mortgage obligations, mortgage-backed securities and asset-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, collateralized mortgage obligations, mortgage-backed securities and asset-backed securities are not included in the maturity categories within the following maturity summary.
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Schedule of Realized Gain (Loss) [Table Text Block] | The details of the sales of investment securities available for sale for the three and nine months ended September 30, 2019 and 2018 are summarized in the following table.
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Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables show the fair value and gross unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous loss position, as of September 30, 2019 and December 31, 2018.
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Balance Sheet Parenthetical (Parentheticals) - $ / shares |
Sep. 30, 2019 |
Dec. 31, 2018 |
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Preferred Stock: | ||
Preferred stock, par value ($ per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock: | ||
Common Stock, No Par Value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 16,379,752 | 16,295,494 |
Common stock, shares outstanding | 16,379,752 | 16,295,494 |
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Earnings Per Share [Abstract] | ||||
Net income | $ 7,526 | $ 7,133 | $ 21,083 | $ 21,281 |
Weighted average common shares outstanding (shares) | 16,380 | 16,295 | 16,352 | 16,268 |
Weighted average effect of restricted stock units outstanding (shares) | 86 | 106 | 79 | 132 |
Diluted weighted average common shares outstanding (shares) | 16,466 | 16,401 | 16,431 | 16,400 |
Basic earnings per common share | $ 0.46 | $ 0.44 | $ 1.29 | $ 1.31 |
Diluted earnings per common share | $ 0.46 | $ 0.43 | $ 1.28 | $ 1.30 |
Number of anti-dilutive common stock equivalents excluded from earnings per share computation (shares) | 160 | 137 | 183 | 92 |
Stockholders' Equity Parenthetical (Parentheticals) - $ / shares |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share | $ 0.21 | $ 0.20 | $ 0.62 | $ 0.58 |
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