FORM 10-Q | ||
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number 001-35968 |
Iowa | 42-1206172 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |
Non-accelerated filer | ☐ (Do not check if a smaller reporting company) | Smaller reporting company | ☐ | |
Emerging growth company | ☐ |
Page No. | ||||
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. | ||||
March 31, 2018 | December 31, 2017 | ||||||
(dollars in thousands) | (unaudited) | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 39,929 | $ | 44,818 | |||
Interest-bearing deposits in banks | 2,467 | 5,474 | |||||
Federal funds sold | — | 680 | |||||
Cash and cash equivalents | 42,396 | 50,972 | |||||
Investment securities: | |||||||
Equity securities | 2,815 | 2,336 | |||||
Available for sale debt securities | 446,087 | 445,324 | |||||
Held to maturity debt securities (fair value of $190,593 as of March 31, 2018 and $194,343 as of December 31, 2017) | 194,617 | 195,619 | |||||
Loans held for sale | 870 | 856 | |||||
Loans | 2,326,158 | 2,286,695 | |||||
Allowance for loan losses | (29,671 | ) | (28,059 | ) | |||
Net loans | 2,296,487 | 2,258,636 | |||||
Premises and equipment, net | 77,552 | 75,969 | |||||
Accrued interest receivable | 13,337 | 14,732 | |||||
Goodwill | 64,654 | 64,654 | |||||
Other intangible assets, net | 11,389 | 12,046 | |||||
Bank-owned life insurance | 59,812 | 59,831 | |||||
Other real estate owned | 1,001 | 2,010 | |||||
Deferred income taxes, net | 7,866 | 6,525 | |||||
Other assets | 22,759 | 22,761 | |||||
Total assets | $ | 3,241,642 | $ | 3,212,271 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Deposits: | |||||||
Non-interest-bearing demand | $ | 450,168 | $ | 461,969 | |||
Interest-bearing checking | 1,240,208 | 1,228,112 | |||||
Savings | 215,940 | 213,430 | |||||
Certificates of deposit under $100,000 | 332,727 | 324,681 | |||||
Certificates of deposit $100,000 and over | 392,878 | 377,127 | |||||
Total deposits | 2,631,921 | 2,605,319 | |||||
Federal funds purchased | 25,573 | 1,000 | |||||
Securities sold under agreements to repurchase | 67,738 | 96,229 | |||||
Federal Home Loan Bank borrowings | 123,000 | 115,000 | |||||
Junior subordinated notes issued to capital trusts | 23,817 | 23,793 | |||||
Long-term debt | 11,250 | 12,500 | |||||
Deferred compensation liability | 5,258 | 5,199 | |||||
Accrued interest payable | 1,459 | 1,428 | |||||
Other liabilities | 10,249 | 11,499 | |||||
Total liabilities | 2,900,265 | 2,871,967 | |||||
Shareholders' equity: | |||||||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding at March 31, 2018 and December 31, 2017 | $ | — | $ | — | |||
Common stock, $1.00 par value; authorized 30,000,000 shares at March 31, 2018 and December 31, 2017; issued 12,463,481 shares at March 31, 2018 and December 31, 2017; outstanding 12,214,942 shares at March 31, 2018 and 12,219,611 shares at December 31, 2017 | 12,463 | 12,463 | |||||
Additional paid-in capital | 187,188 | 187,486 | |||||
Treasury stock at cost, 248,539 shares as of March 31, 2018 and 243,870 shares as of December 31, 2017 | (5,612 | ) | (5,121 | ) | |||
Retained earnings | 153,542 | 148,078 | |||||
Accumulated other comprehensive loss | (6,204 | ) | (2,602 | ) | |||
Total shareholders' equity | 341,377 | 340,304 | |||||
Total liabilities and shareholders' equity | $ | 3,241,642 | $ | 3,212,271 |
Three Months Ended | ||||||||
March 31, | ||||||||
(unaudited) (dollars in thousands, except per share amounts) | 2018 | 2017 | ||||||
Interest income: | ||||||||
Interest and fees on loans | $ | 26,567 | $ | 24,279 | ||||
Interest on bank deposits | 8 | 5 | ||||||
Interest on investment securities: | ||||||||
Taxable securities | 2,888 | 2,718 | ||||||
Tax-exempt securities | 1,529 | 1,565 | ||||||
Total interest income | 30,992 | 28,567 | ||||||
Interest expense: | ||||||||
Interest on deposits: | ||||||||
Interest-bearing checking | 1,085 | 798 | ||||||
Savings | 63 | 51 | ||||||
Certificates of deposit under $100,000 | 995 | 859 | ||||||
Certificates of deposit $100,000 and over | 1,393 | 917 | ||||||
Total interest expense on deposits | 3,536 | 2,625 | ||||||
Interest on federal funds purchased | 125 | 46 | ||||||
Interest on securities sold under agreements to repurchase | 134 | 38 | ||||||
Interest on Federal Home Loan Bank borrowings | 517 | 443 | ||||||
Interest on other borrowings | 2 | 3 | ||||||
Interest on junior subordinated notes issued to capital trusts | 258 | 221 | ||||||
Interest on long-term debt | 107 | 110 | ||||||
Total interest expense | 4,679 | 3,486 | ||||||
Net interest income | 26,313 | 25,081 | ||||||
Provision for loan losses | 1,850 | 1,041 | ||||||
Net interest income after provision for loan losses | 24,463 | 24,040 | ||||||
Noninterest income: | ||||||||
Trust, investment, and insurance fees | 1,640 | 1,612 | ||||||
Service charges and fees on deposit accounts | 1,168 | 1,283 | ||||||
Loan origination and servicing fees | 941 | 802 | ||||||
Other service charges and fees | 1,380 | 1,458 | ||||||
Bank-owned life insurance income | 433 | 328 | ||||||
Gain on sale or call of available for sale debt securities | 9 | — | ||||||
Gain on sale or call of held to maturity debt securities | — | 43 | ||||||
Loss on sale of premises and equipment | (1 | ) | (2 | ) | ||||
Other gain | 102 | 13 | ||||||
Total noninterest income | 5,672 | 5,537 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 12,371 | 11,884 | ||||||
Net occupancy and equipment expense | 3,251 | 3,304 | ||||||
Professional fees | 794 | 1,022 | ||||||
Data processing expense | 688 | 711 | ||||||
FDIC insurance expense | 319 | 367 | ||||||
Amortization of intangible assets | 657 | 849 | ||||||
Other operating expense | 2,278 | 2,198 | ||||||
Total noninterest expense | 20,358 | 20,335 | ||||||
Income before income tax expense | 9,777 | 9,242 | ||||||
Income tax expense | 1,984 | 2,529 | ||||||
Net income | $ | 7,793 | $ | 6,713 | ||||
Share and per share information: | ||||||||
Ending number of shares outstanding | 12,214,942 | 11,959,521 | ||||||
Average number of shares outstanding | 12,222,690 | 11,505,687 | ||||||
Diluted average number of shares | 12,241,714 | 11,555,356 | ||||||
Earnings per common share - basic | $ | 0.64 | $ | 0.58 | ||||
Earnings per common share - diluted | 0.64 | 0.58 | ||||||
Dividends paid per common share | 0.195 | 0.165 |
Three Months Ended | ||||||||
March 31, | ||||||||
(unaudited) (dollars in thousands, except per share amounts) | 2018 | 2017 | ||||||
Net income | $ | 7,793 | $ | 6,713 | ||||
Other comprehensive income, available for sale debt securities: | ||||||||
Unrealized holding gains (losses) arising during period | (4,788 | ) | 1,567 | |||||
Reclassification adjustment for gains included in net income | (9 | ) | — | |||||
Income tax (expense) benefit | 1,252 | (616 | ) | |||||
Other comprehensive income (loss) on available for sale debt securities | (3,545 | ) | 951 | |||||
Other comprehensive income (loss), net of tax | (3,545 | ) | 951 | |||||
Comprehensive income | $ | 4,248 | $ | 7,664 |
(unaudited) (dollars in thousands, except per share amounts) | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||
Balance at December 31, 2016 | $ | — | $ | 11,713 | $ | 163,667 | $ | (5,766 | ) | $ | 136,975 | $ | (1,133 | ) | $ | 305,456 | ||||||||||||
Net income | — | — | — | — | 6,713 | — | 6,713 | |||||||||||||||||||||
Issuance of common stock (500,000 shares), net of expenses of $983 | — | 500 | 15,642 | — | — | — | 16,142 | |||||||||||||||||||||
Dividends paid on common stock ($0.165 per share) | — | — | — | — | (1,891 | ) | — | (1,891 | ) | |||||||||||||||||||
Stock options exercised (5,800 shares) | — | — | (74 | ) | 121 | — | — | 47 | ||||||||||||||||||||
Release/lapse of restriction on RSUs (20,200 shares) | — | — | (420 | ) | 317 | — | — | (103 | ) | |||||||||||||||||||
Stock compensation | — | — | 199 | — | — | 199 | ||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 951 | 951 | |||||||||||||||||||||
Balance at March 31, 2017 | $ | — | $ | 12,213 | $ | 179,014 | $ | (5,328 | ) | $ | 141,797 | $ | (182 | ) | $ | 327,514 | ||||||||||||
Balance at December 31, 2017 | $ | — | $ | 12,463 | $ | 187,486 | $ | (5,121 | ) | $ | 148,078 | $ | (2,602 | ) | $ | 340,304 | ||||||||||||
Net income | — | — | — | — | 7,793 | — | 7,793 | |||||||||||||||||||||
Dividends paid on common stock ($0.195 per share) | — | — | — | — | (2,386 | ) | — | (2,386 | ) | |||||||||||||||||||
Stock options exercised (9,700 shares) | — | — | (68 | ) | 204 | — | — | 136 | ||||||||||||||||||||
Release/lapse of restriction on RSUs (22,200 shares) | — | — | (467 | ) | 387 | — | — | (80 | ) | |||||||||||||||||||
Repurchase of common stock (33,998 shares) | — | — | — | (1,082 | ) | — | — | (1,082 | ) | |||||||||||||||||||
Stock compensation | — | — | 237 | — | — | — | 237 | |||||||||||||||||||||
ASU 2016-01, reclassification from AOCI to Retained Earnings, unrealized gain on equity securities, net of tax | — | — | — | — | 57 | (57 | ) | — | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (3,545 | ) | (3,545 | ) | |||||||||||||||||||
Balance at March 31, 2018 | $ | — | $ | 12,463 | $ | 187,188 | $ | (5,612 | ) | $ | 153,542 | $ | (6,204 | ) | $ | 341,377 |
Three Months Ended March 31, | |||||||
(unaudited) (dollars in thousands) | 2018 | 2017 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 7,793 | $ | 6,713 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan losses | 1,850 | 1,041 | |||||
Depreciation of premises and equipment | 1,034 | 1,040 | |||||
Amortization of other intangibles | 657 | 849 | |||||
Amortization of premiums and discounts on investment securities, net | 244 | 373 | |||||
Loss on sale of premises and equipment | 1 | 2 | |||||
Deferred income taxes | (89 | ) | (289 | ) | |||
Excess tax benefit from share-based award activity | — | (75 | ) | ||||
Stock-based compensation | 237 | 199 | |||||
Net losses on equity securities | 24 | — | |||||
Net gain on sale or call of available for sale debt securities | (9 | ) | — | ||||
Net gain on sale or call of held to maturity debt securities | — | (43 | ) | ||||
Net gain on sale of other real estate owned | (93 | ) | (19 | ) | |||
Net gain on sale of loans held for sale | (253 | ) | (323 | ) | |||
Writedown of other real estate owned | 5 | 23 | |||||
Origination of loans held for sale | (12,916 | ) | (18,770 | ) | |||
Proceeds from sales of loans held for sale | 13,155 | 22,953 | |||||
Decrease in accrued interest receivable | 1,395 | 1,175 | |||||
Increase in cash surrender value of bank-owned life insurance | (433 | ) | (328 | ) | |||
Decrease in other assets | 2 | 784 | |||||
Increase in deferred compensation liability | 59 | 20 | |||||
Increase (decrease) in accrued interest payable, accounts payable, accrued expenses, and other liabilities | (1,219 | ) | 2,921 | ||||
Net cash provided by operating activities | 11,444 | 18,246 | |||||
Cash flows from investing activities: | |||||||
Purchases of equity securities | (503 | ) | (1,002 | ) | |||
Proceeds from sales of available for sale debt securities | 496 | — | |||||
Proceeds from maturities and calls of available for sale debt securities | 13,546 | 15,005 | |||||
Purchases of available for sale debt securities | (19,770 | ) | (6,811 | ) | |||
Proceeds from sales of held to maturity debt securities | — | 1,153 | |||||
Proceeds from maturities and calls of held to maturity debt securities | 1,488 | 1,047 | |||||
Purchase of held to maturity debt securities | (553 | ) | (8,474 | ) | |||
Net increase in loans | (40,065 | ) | (672 | ) | |||
Purchases of premises and equipment | (2,594 | ) | (1,004 | ) | |||
Proceeds from sale of other real estate owned | 1,461 | 494 | |||||
Proceeds of principal and earnings from bank-owned life insurance | 452 | — | |||||
Net cash used in investing activities | (46,042 | ) | (264 | ) | |||
Cash flows from financing activities: | |||||||
Net increase in deposits | 26,602 | 50,445 | |||||
Increase (decrease) in federal funds purchased | 24,573 | (35,684 | ) | ||||
Decrease in securities sold under agreements to repurchase | (28,491 | ) | (14,596 | ) | |||
Proceeds from Federal Home Loan Bank borrowings | 35,000 | 50,000 | |||||
Repayment of Federal Home Loan Bank borrowings | (27,000 | ) | (70,000 | ) | |||
Proceeds from stock options exercised | 135 | 123 | |||||
Excess tax benefit from share-based award activity | — | 75 | |||||
Taxes paid relating to net share settlement of equity awards | (79 | ) | (104 | ) | |||
Payments on long-term debt | (1,250 | ) | (1,250 | ) | |||
Dividends paid | (2,386 | ) | (1,891 | ) | |||
Proceeds from issuance of common stock | — | 17,125 | |||||
Payment of stock issuance costs | — | (983 | ) | ||||
Repurchase of common stock | (1,082 | ) | — | ||||
Net cash provided by (used in) financing activities | 26,022 | (6,740 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (8,576 | ) | 11,242 | ||||
Cash and cash equivalents at beginning of period | 50,972 | 43,228 | |||||
Cash and cash equivalents at end of period | $ | 42,396 | $ | 54,470 |
(unaudited) (dollars in thousands) | Three Months Ended March 31, | ||||||
2018 | 2017 | ||||||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for interest | $ | 4,648 | $ | 3,553 | |||
Supplemental schedule of non-cash investing activities: | |||||||
Transfer of loans to other real estate owned | $ | 364 | $ | 97 | |||
Transfer due to adoption of ASU 2016-01, equity securities fair value adjustment, reclassification from AOCI to Retained Earnings, net of tax | $ | 57 | $ | — |
As of March 31, 2018 | ||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Government agencies and corporations | $ | 15,678 | $ | — | $ | 279 | $ | 15,399 | ||||||||
State and political subdivisions | 146,386 | 1,663 | 523 | 147,526 | ||||||||||||
Mortgage-backed securities | 48,065 | 147 | 952 | 47,260 | ||||||||||||
Collateralized mortgage obligations | 178,068 | 13 | 7,276 | 170,805 | ||||||||||||
Corporate debt securities | 66,285 | 25 | 1,213 | 65,097 | ||||||||||||
Total | $ | 454,482 | $ | 1,848 | $ | 10,243 | $ | 446,087 |
As of December 31, 2017 | ||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Government agencies and corporations | $ | 15,716 | $ | — | $ | 90 | $ | 15,626 | ||||||||
State and political subdivisions | 139,561 | 2,475 | 197 | 141,839 | ||||||||||||
Mortgage-backed securities | 48,744 | 181 | 428 | 48,497 | ||||||||||||
Collateralized mortgage obligations | 173,339 | 29 | 5,172 | 168,196 | ||||||||||||
Corporate debt securities | 71,562 | 31 | 427 | 71,166 | ||||||||||||
Total debt securities | 448,922 | 2,716 | 6,314 | 445,324 | ||||||||||||
Other equity securities | 2,268 | 124 | 56 | 2,336 | ||||||||||||
Total | $ | 451,190 | $ | 2,840 | $ | 6,370 | $ | 447,660 |
As of March 31, 2018 | ||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Government agencies and corporations | $ | 10,047 | $ | — | $ | 278 | $ | 9,769 | ||||||||
State and political subdivisions | 126,356 | 315 | 3,089 | 123,582 | ||||||||||||
Mortgage-backed securities | 1,882 | 2 | 45 | 1,839 | ||||||||||||
Collateralized mortgage obligations | 21,204 | — | 932 | 20,272 | ||||||||||||
Corporate debt securities | 35,128 | 504 | 501 | 35,131 | ||||||||||||
Total | $ | 194,617 | $ | 821 | $ | 4,845 | $ | 190,593 |
As of December 31, 2017 | ||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Government agencies and corporations | $ | 10,049 | $ | — | $ | — | $ | 10,049 | ||||||||
State and political subdivisions | 126,413 | 804 | 1,631 | 125,586 | ||||||||||||
Mortgage-backed securities | 1,906 | 4 | 13 | 1,897 | ||||||||||||
Collateralized mortgage obligations | 22,115 | — | 707 | 21,408 | ||||||||||||
Corporate debt securities | 35,136 | 548 | 281 | 35,403 | ||||||||||||
Total | $ | 195,619 | $ | 1,356 | $ | 2,632 | $ | 194,343 |
As of March 31, 2018 | |||||||||||||||||||||||||||
Number of Securities | Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||
Available for Sale | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||
U.S. Government agencies and corporations | 3 | $ | 15,399 | $ | 279 | $ | — | $ | — | $ | 15,399 | $ | 279 | ||||||||||||||
State and political subdivisions | 72 | 33,470 | 452 | 2,757 | 71 | 36,227 | 523 | ||||||||||||||||||||
Mortgage-backed securities | 21 | 36,330 | 871 | 3,627 | 81 | 39,957 | 952 | ||||||||||||||||||||
Collateralized mortgage obligations | 41 | 47,328 | 1,010 | 117,834 | 6,266 | 165,162 | 7,276 | ||||||||||||||||||||
Corporate debt securities | 12 | 54,639 | 995 | 8,576 | 218 | 63,215 | 1,213 | ||||||||||||||||||||
Total | 149 | $ | 187,166 | $ | 3,607 | $ | 132,794 | $ | 6,636 | $ | 319,960 | $ | 10,243 |
As of December 31, 2017 | |||||||||||||||||||||||||||
Number of Securities | Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||
U.S. Government agencies and corporations | 3 | $ | 15,626 | $ | 90 | $ | — | $ | — | $ | 15,626 | $ | 90 | ||||||||||||||
State and political subdivisions | 34 | 11,705 | 167 | 1,800 | 30 | 13,505 | 197 | ||||||||||||||||||||
Mortgage-backed securities | 20 | 37,964 | 359 | 3,961 | 69 | 41,925 | 428 | ||||||||||||||||||||
Collateralized mortgage obligations | 35 | 37,881 | 489 | 122,757 | 4,683 | 160,638 | 5,172 | ||||||||||||||||||||
Corporate debt securities | 12 | 55,340 | 298 | 8,778 | 129 | 64,118 | 427 | ||||||||||||||||||||
Other equity securities | 1 | — | — | 1,944 | 56 | 1,944 | 56 | ||||||||||||||||||||
Total | 105 | $ | 158,516 | $ | 1,403 | $ | 139,240 | $ | 4,967 | $ | 297,756 | $ | 6,370 |
As of March 31, 2018 | |||||||||||||||||||||||||||
Number of Securities | Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||
Held to Maturity | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||
U.S. Government agencies and corporations | 1 | $ | 9,769 | $ | 278 | $ | — | $ | — | $ | 9,769 | $ | 278 | ||||||||||||||
State and political subdivisions | 227 | 52,946 | 1,212 | 25,191 | 1,877 | 78,137 | 3,089 | ||||||||||||||||||||
Mortgage-backed securities | 5 | 902 | 15 | 857 | 30 | 1,759 | 45 | ||||||||||||||||||||
Collateralized mortgage obligations | 7 | 4,941 | 155 | 15,314 | 777 | 20,255 | 932 | ||||||||||||||||||||
Corporate debt securities | 5 | 11,236 | 222 | 2,616 | 279 | 13,852 | 501 | ||||||||||||||||||||
Total | 245 | $ | 79,794 | $ | 1,882 | $ | 43,978 | $ | 2,963 | $ | 123,772 | $ | 4,845 |
As of December 31, 2017 | |||||||||||||||||||||||||||
Number of Securities | Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||
State and political subdivisions | 167 | $ | 33,237 | $ | 393 | $ | 25,843 | $ | 1,238 | $ | 59,080 | $ | 1,631 | ||||||||||||||
Mortgage-backed securities | 4 | 349 | 2 | 887 | 11 | 1,236 | 13 | ||||||||||||||||||||
Collateralized mortgage obligations | 7 | 5,221 | 90 | 16,168 | 617 | 21,389 | 707 | ||||||||||||||||||||
Corporate debt securities | 3 | 3,093 | 4 | 2,617 | 277 | 5,710 | 281 | ||||||||||||||||||||
Total | 181 | $ | 41,900 | $ | 489 | $ | 45,515 | $ | 2,143 | $ | 87,415 | $ | 2,632 |
Available For Sale | Held to Maturity | |||||||||||||||
(in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less | $ | 28,726 | $ | 28,807 | $ | — | $ | — | ||||||||
Due after one year through five years | 116,063 | 115,334 | 18,777 | 18,573 | ||||||||||||
Due after five years through ten years | 70,509 | 71,045 | 91,309 | 90,725 | ||||||||||||
Due after ten years | 13,051 | 12,836 | 61,445 | 59,184 | ||||||||||||
Debt securities without a single maturity date | 226,133 | 218,065 | 23,086 | 22,111 | ||||||||||||
Total | $ | 454,482 | $ | 446,087 | $ | 194,617 | $ | 190,593 |
Three Months Ended March 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Available for sale debt securities: | ||||||||
Gross realized gains | $ | 9 | $ | — | ||||
Gross realized losses | — | — | ||||||
Other-than-temporary impairment | — | — | ||||||
9 | — | |||||||
Held to maturity debt securities: | ||||||||
Gross realized gains | — | 43 |
Three Months Ended March 31, | ||||
(in thousands) | 2018 | |||
Net losses recognized | $ | (24 | ) | |
Less: Net gains and losses recognized due to sales | — | |||
Unrealized losses on securities still held at the reporting date | $ | (24 | ) |
Allowance for Loan Losses and Recorded Investment in Loan Receivables | ||||||||||||||||||||||||
As of March 31, 2018 and December 31, 2017 | ||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | ||||||||||||||||||
March 31, 2018 | ||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 580 | $ | 1,708 | $ | 3,338 | $ | 167 | $ | — | $ | 5,793 | ||||||||||||
Collectively evaluated for impairment | 2,573 | 6,654 | 11,408 | 2,254 | 282 | 23,171 | ||||||||||||||||||
Purchased credit impaired loans | — | — | 251 | 456 | — | 707 | ||||||||||||||||||
Total | $ | 3,153 | $ | 8,362 | $ | 14,997 | $ | 2,877 | $ | 282 | $ | 29,671 | ||||||||||||
Loans receivable | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 10,945 | $ | 10,899 | $ | 17,448 | $ | 3,855 | $ | — | $ | 43,147 | ||||||||||||
Collectively evaluated for impairment | 101,030 | 502,824 | 1,166,913 | 457,180 | 36,030 | 2,263,977 | ||||||||||||||||||
Purchased credit impaired loans | — | 55 | 14,085 | 4,894 | — | 19,034 | ||||||||||||||||||
Total | $ | 111,975 | $ | 513,778 | $ | 1,198,446 | $ | 465,929 | $ | 36,030 | $ | 2,326,158 |
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | ||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 140 | $ | 1,126 | $ | 2,157 | $ | 226 | $ | — | $ | 3,649 | ||||||||||||
Collectively evaluated for impairment | 2,650 | 7,392 | 11,144 | 2,182 | 244 | 23,612 | ||||||||||||||||||
Purchased credit impaired loans | — | — | 336 | 462 | — | 798 | ||||||||||||||||||
Total | $ | 2,790 | $ | 8,518 | $ | 13,637 | $ | 2,870 | $ | 244 | $ | 28,059 | ||||||||||||
Loans receivable | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,969 | $ | 9,734 | $ | 10,386 | $ | 3,722 | $ | — | $ | 26,811 | ||||||||||||
Collectively evaluated for impairment | 102,543 | 493,844 | 1,147,133 | 460,475 | 36,158 | 2,240,153 | ||||||||||||||||||
Purchased credit impaired loans | — | 46 | 14,452 | 5,233 | — | 19,731 | ||||||||||||||||||
Total | $ | 105,512 | $ | 503,624 | $ | 1,171,971 | $ | 469,430 | $ | 36,158 | $ | 2,286,695 |
Allowance for Loan Loss Activity | ||||||||||||||||||||||||
For the Three Months Ended March 31, 2018 and 2017 | ||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | ||||||||||||||||||
2018 | ||||||||||||||||||||||||
Beginning balance | $ | 2,790 | $ | 8,518 | $ | 13,637 | $ | 2,870 | $ | 244 | $ | 28,059 | ||||||||||||
Charge-offs | — | (87 | ) | (264 | ) | (104 | ) | (21 | ) | (476 | ) | |||||||||||||
Recoveries | 6 | 79 | 76 | 62 | 15 | 238 | ||||||||||||||||||
Provision | 357 | (148 | ) | 1,548 | 49 | 44 | 1,850 | |||||||||||||||||
Ending balance | $ | 3,153 | $ | 8,362 | $ | 14,997 | $ | 2,877 | $ | 282 | $ | 29,671 | ||||||||||||
2017 | ||||||||||||||||||||||||
Beginning balance | $ | 2,003 | $ | 6,274 | $ | 9,860 | $ | 3,458 | $ | 255 | $ | 21,850 | ||||||||||||
Charge-offs | (537 | ) | (65 | ) | (61 | ) | (28 | ) | (25 | ) | (716 | ) | ||||||||||||
Recoveries | 10 | 19 | 10 | — | 3 | 42 | ||||||||||||||||||
Provision | 984 | (207 | ) | (58 | ) | 334 | (12 | ) | 1,041 | |||||||||||||||
Ending balance | $ | 2,460 | $ | 6,021 | $ | 9,751 | $ | 3,764 | $ | 221 | $ | 22,217 |
• | The debtor is currently in default on any of its debt. |
• | The debtor has declared or is in the process of declaring bankruptcy. |
• | There is significant doubt as to whether the debtor will continue to be a going concern. |
• | Currently, the debtor has securities being held as collateral that have been delisted, are in the process of being delisted, or are under threat of being delisted from an exchange. |
• | Based on estimates and projections that only encompass the current business capabilities, the debtor forecasts that its entity-specific cash flows will be insufficient to service the debt (both interest and principal) in accordance with the contractual terms of the existing agreement through maturity. |
• | Absent the current modification, the debtor cannot obtain funds from sources other than the existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor. |
• | The borrower receives a reduction of the stated interest rate for the remaining original life of the debt. |
• | The borrower receives an extension of the maturity date or dates at a stated interest rate lower that the current market interest rate for new debt with similar risk characteristics. |
• | The borrower receives a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. |
• | The borrower receives a deferral of required payments (principal and/or interest). |
• | The borrower receives a reduction of the accrued interest. |
Three Months Ended March 31, | ||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||
(dollars in thousands) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||
Troubled Debt Restructurings(1): | ||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||
Extended maturity date | — | $ | — | $ | — | 6 | $ | 2,037 | $ | 2,083 | ||||||||||||
Commercial real estate: | ||||||||||||||||||||||
Commercial real estate-other | ||||||||||||||||||||||
Extended maturity date | — | — | — | 1 | 968 | 968 | ||||||||||||||||
Total | — | $ | — | $ | — | 7 | $ | 3,005 | $ | 3,051 |
Three Months Ended March 31, | ||||||||||||||
2018 | 2017 | |||||||||||||
(dollars in thousands) | Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | ||||||||||
Troubled Debt Restructurings(1) That Subsequently Defaulted: | ||||||||||||||
Commercial and industrial | ||||||||||||||
Extended maturity date | — | $ | — | 3 | $ | 954 | ||||||||
Commercial real estate: | ||||||||||||||
Commercial real estate-other | ||||||||||||||
Extended maturity date | 1 | 2,657 | — | — | ||||||||||
Total | 1 | $ | 2,657 | 3 | $ | 954 |
• | Changes in national and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. |
• | Changes in the quality and experience of lending staff and management. |
• | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses. |
• | Changes in the volume and severity of past due loans, classified loans and non-performing loans. |
• | The existence and potential impact of any concentrations of credit. |
• | Changes in the nature and terms of loans such as growth rates and utilization rates. |
• | Changes in the value of underlying collateral for collateral-dependent loans, considering the Company’s disposition bias. |
• | The effect of other external factors such as the legal and regulatory environment. |
(in thousands) | Pass | Special Mention/ Watch | Substandard | Doubtful | Loss | Total | ||||||||||||||||||
March 31, 2018 | ||||||||||||||||||||||||
Agricultural | $ | 80,471 | $ | 19,883 | $ | 11,621 | $ | — | $ | — | $ | 111,975 | ||||||||||||
Commercial and industrial | 465,235 | 30,574 | 17,963 | 6 | — | 513,778 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Construction and development | 192,384 | 1,054 | 1,274 | — | — | 194,712 | ||||||||||||||||||
Farmland | 71,590 | 8,216 | 7,224 | — | — | 87,030 | ||||||||||||||||||
Multifamily | 124,203 | 1,417 | 1,182 | — | — | 126,802 | ||||||||||||||||||
Commercial real estate-other | 737,765 | 33,505 | 18,632 | — | — | 789,902 | ||||||||||||||||||
Total commercial real estate | 1,125,942 | 44,192 | 28,312 | — | — | 1,198,446 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One- to four- family first liens | 338,419 | 2,495 | 8,828 | — | — | 349,742 | ||||||||||||||||||
One- to four- family junior liens | 114,074 | 641 | 1,472 | — | — | 116,187 | ||||||||||||||||||
Total residential real estate | 452,493 | 3,136 | 10,300 | — | — | 465,929 | ||||||||||||||||||
Consumer | 35,817 | 136 | 47 | 30 | — | 36,030 | ||||||||||||||||||
Total | $ | 2,159,958 | $ | 97,921 | $ | 68,243 | $ | 36 | $ | — | $ | 2,326,158 |
(in thousands) | Pass | Special Mention/ Watch | Substandard | Doubtful | Loss | Total | ||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
Agricultural | $ | 80,377 | $ | 21,989 | $ | 3,146 | $ | — | $ | — | $ | 105,512 | ||||||||||||
Commercial and industrial | 453,363 | 23,153 | 27,102 | 6 | — | 503,624 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Construction and development | 162,968 | 1,061 | 1,247 | — | — | 165,276 | ||||||||||||||||||
Farmland | 76,740 | 10,357 | 771 | — | — | 87,868 | ||||||||||||||||||
Multifamily | 131,507 | 2,498 | 501 | — | — | 134,506 | ||||||||||||||||||
Commercial real estate-other | 731,231 | 34,056 | 19,034 | — | — | 784,321 | ||||||||||||||||||
Total commercial real estate | 1,102,446 | 47,972 | 21,553 | — | — | 1,171,971 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One- to four- family first liens | 340,446 | 2,776 | 9,004 | — | — | 352,226 | ||||||||||||||||||
One- to four- family junior liens | 114,763 | 952 | 1,489 | — | — | 117,204 | ||||||||||||||||||
Total residential real estate | 455,209 | 3,728 | 10,493 | — | — | 469,430 | ||||||||||||||||||
Consumer | 36,059 | — | 68 | 31 | — | 36,158 | ||||||||||||||||||
Total | $ | 2,127,454 | $ | 96,842 | $ | 62,362 | $ | 37 | $ | — | $ | 2,286,695 |
March 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
(in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Agricultural | $ | 8,764 | $ | 9,264 | $ | — | $ | 1,523 | $ | 2,023 | $ | — | ||||||||||||
Commercial and industrial | 3,781 | 4,147 | — | 7,588 | 7,963 | — | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Construction and development | 84 | 84 | — | 84 | 84 | — | ||||||||||||||||||
Farmland | 3,952 | 3,952 | — | 287 | 287 | — | ||||||||||||||||||
Multifamily | 826 | 826 | — | — | — | — | ||||||||||||||||||
Commercial real estate-other | 6,806 | 7,312 | — | 5,746 | 6,251 | — | ||||||||||||||||||
Total commercial real estate | 11,668 | 12,174 | — | 6,117 | 6,622 | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One- to four- family first liens | 2,591 | 2,634 | — | 2,449 | 2,482 | — | ||||||||||||||||||
One- to four- family junior liens | 292 | 293 | — | 26 | 26 | — | ||||||||||||||||||
Total residential real estate | 2,883 | 2,927 | — | 2,475 | 2,508 | — | ||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 27,096 | $ | 28,512 | $ | — | $ | 17,703 | $ | 19,116 | $ | — | ||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Agricultural | $ | 2,181 | $ | 2,181 | $ | 580 | $ | 1,446 | $ | 1,446 | $ | 140 | ||||||||||||
Commercial and industrial | 7,118 | 7,207 | 1,708 | 2,146 | 2,177 | 1,126 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Farmland | 2,092 | 2,092 | 676 | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | — | — | — | ||||||||||||||||||
Commercial real estate-other | 3,688 | 11,320 | 2,662 | 4,269 | 11,536 | 2,157 | ||||||||||||||||||
Total commercial real estate | 5,780 | 13,412 | 3,338 | 4,269 | 11,536 | 2,157 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One- to four- family first liens | 972 | 972 | 167 | 979 | 979 | 185 | ||||||||||||||||||
One- to four- family junior liens | — | — | — | 268 | 268 | 41 | ||||||||||||||||||
Total residential real estate | 972 | 972 | 167 | 1,247 | 1,247 | 226 | ||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 16,051 | $ | 23,772 | $ | 5,793 | $ | 9,108 | $ | 16,406 | $ | 3,649 | ||||||||||||
Total: | ||||||||||||||||||||||||
Agricultural | $ | 10,945 | $ | 11,445 | $ | 580 | $ | 2,969 | $ | 3,469 | $ | 140 | ||||||||||||
Commercial and industrial | 10,899 | 11,354 | 1,708 | 9,734 | 10,140 | 1,126 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Construction and development | 84 | 84 | — | 84 | 84 | — | ||||||||||||||||||
Farmland | 6,044 | 6,044 | 676 | 287 | 287 | — | ||||||||||||||||||
Multifamily | 826 | 826 | — | — | — | — | ||||||||||||||||||
Commercial real estate-other | 10,494 | 18,632 | 2,662 | 10,015 | 17,787 | 2,157 | ||||||||||||||||||
Total commercial real estate | 17,448 | 25,586 | 3,338 | 10,386 | 18,158 | 2,157 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One- to four- family first liens | 3,563 | 3,606 | 167 | 3,428 | 3,461 | 185 | ||||||||||||||||||
One- to four- family junior liens | 292 | 293 | — | 294 | 294 | 41 | ||||||||||||||||||
Total residential real estate | 3,855 | 3,899 | 167 | 3,722 | 3,755 | 226 | ||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 43,147 | $ | 52,284 | $ | 5,793 | $ | 26,811 | $ | 35,522 | $ | 3,649 |
Three Months Ended March 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
(in thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||
With no related allowance recorded: | ||||||||||||||||
Agricultural | $ | 5,015 | $ | 124 | $ | 2,230 | $ | 13 | ||||||||
Commercial and industrial | 3,189 | 46 | 12,431 | 72 | ||||||||||||
Commercial real estate: | ||||||||||||||||
Construction and development | 84 | — | 1,064 | — | ||||||||||||
Farmland | 1,976 | 39 | 2,535 | 26 | ||||||||||||
Multifamily | 413 | 10 | — | — | ||||||||||||
Commercial real estate-other | 5,930 | 67 | 3,248 | — | ||||||||||||
Total commercial real estate | 8,403 | 116 | 6,847 | 26 | ||||||||||||
Residential real estate: | ||||||||||||||||
One- to four- family first liens | 1,602 | — | 2,563 | — | ||||||||||||
One- to four- family junior liens | 293 | — | 13 | — | ||||||||||||
Total residential real estate | 1,895 | — | 2,576 | — | ||||||||||||
Consumer | — | — | — | — | ||||||||||||
Total | $ | 18,502 | $ | 286 | $ | 24,084 | $ | 111 | ||||||||
With an allowance recorded: | ||||||||||||||||
Agricultural | $ | 1,946 | $ | 17 | $ | 2,087 | $ | — | ||||||||
Commercial and industrial | 7,088 | — | 4,812 | 20 | ||||||||||||
Commercial real estate: | ||||||||||||||||
Construction and development | — | — | 434 | — | ||||||||||||
Farmland | 1,046 | 27 | — | — | ||||||||||||
Multifamily | — | — | — | — | ||||||||||||
Commercial real estate-other | 4,141 | — | 6,369 | — | ||||||||||||
Total commercial real estate | 5,187 | 27 | 6,803 | — | ||||||||||||
Residential real estate: | ||||||||||||||||
One- to four- family first liens | 976 | 9 | 1,400 | 9 | ||||||||||||
One- to four- family junior liens | — | — | — | — | ||||||||||||
Total residential real estate | 976 | 9 | 1,400 | 9 | ||||||||||||
Consumer | — | — | — | — | ||||||||||||
Total | $ | 15,197 | $ | 53 | $ | 15,102 | $ | 29 | ||||||||
Total: | ||||||||||||||||
Agricultural | $ | 6,961 | $ | 141 | $ | 4,317 | $ | 13 | ||||||||
Commercial and industrial | 10,277 | 46 | 17,243 | 92 | ||||||||||||
Commercial real estate: | ||||||||||||||||
Construction and development | 84 | — | 1,498 | — | ||||||||||||
Farmland | 3,022 | 66 | 2,535 | 26 | ||||||||||||
Multifamily | 413 | 10 | — | — | ||||||||||||
Commercial real estate-other | 10,071 | 67 | 9,617 | — | ||||||||||||
Total commercial real estate | 13,590 | 143 | 13,650 | 26 | ||||||||||||
Residential real estate: | ||||||||||||||||
One- to four- family first liens | 2,578 | 9 | 3,963 | 9 | ||||||||||||
One- to four- family junior liens | 293 | — | 13 | — | ||||||||||||
Total residential real estate | 2,871 | 9 | 3,976 | 9 | ||||||||||||
Consumer | — | — | — | — | ||||||||||||
Total | $ | 33,699 | $ | 339 | $ | 39,186 | $ | 140 |
(in thousands) | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||
March 31, 2018 | ||||||||||||||||||||||||
Agricultural | $ | 1,722 | $ | 175 | $ | 138 | $ | 2,035 | $ | 109,940 | $ | 111,975 | ||||||||||||
Commercial and industrial | 5,523 | 136 | 1,599 | 7,258 | 506,520 | 513,778 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Construction and development | 11 | — | 177 | 188 | 194,524 | 194,712 | ||||||||||||||||||
Farmland | 363 | — | — | 363 | 86,667 | 87,030 | ||||||||||||||||||
Multifamily | — | — | — | — | 126,802 | 126,802 | ||||||||||||||||||
Commercial real estate-other | 2,778 | 48 | 1,081 | 3,907 | 785,995 | 789,902 | ||||||||||||||||||
Total commercial real estate | 3,152 | 48 | 1,258 | 4,458 | 1,193,988 | 1,198,446 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One- to four- family first liens | 2,968 | 444 | 1,177 | 4,589 | 345,153 | 349,742 | ||||||||||||||||||
One- to four- family junior liens | 244 | 30 | 356 | 630 | 115,557 | 116,187 | ||||||||||||||||||
Total residential real estate | 3,212 | 474 | 1,533 | 5,219 | 460,710 | 465,929 | ||||||||||||||||||
Consumer | 58 | 15 | 19 | 92 | 35,938 | 36,030 | ||||||||||||||||||
Total | $ | 13,667 | $ | 848 | $ | 4,547 | $ | 19,062 | $ | 2,307,096 | $ | 2,326,158 | ||||||||||||
Included in the totals above are the following purchased credit impaired loans | $ | — | $ | 206 | $ | 340 | $ | 546 | $ | 18,488 | $ | 19,034 | ||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
Agricultural | $ | 95 | $ | 118 | $ | 168 | $ | 381 | $ | 105,131 | $ | 105,512 | ||||||||||||
Commercial and industrial | 1,434 | 1,336 | 1,576 | 4,346 | 499,278 | 503,624 | ||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Construction and development | 57 | 97 | 82 | 236 | 165,040 | 165,276 | ||||||||||||||||||
Farmland | 217 | — | 373 | 590 | 87,278 | 87,868 | ||||||||||||||||||
Multifamily | — | 25 | — | 25 | 134,481 | 134,506 | ||||||||||||||||||
Commercial real estate-other | 74 | — | 1,852 | 1,926 | 782,395 | 784,321 | ||||||||||||||||||
Total commercial real estate | 348 | 122 | 2,307 | 2,777 | 1,169,194 | 1,171,971 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
One- to four- family first liens | 3,854 | 756 | 1,019 | 5,629 | 346,597 | 352,226 | ||||||||||||||||||
One- to four- family junior liens | 325 | 770 | 271 | 1,366 | 115,838 | 117,204 | ||||||||||||||||||
Total residential real estate | 4,179 | 1,526 | 1,290 | 6,995 | 462,435 | 469,430 | ||||||||||||||||||
Consumer | 79 | 15 | 29 | 123 | 36,035 | 36,158 | ||||||||||||||||||
Total | $ | 6,135 | $ | 3,117 | $ | 5,370 | $ | 14,622 | $ | 2,272,073 | $ | 2,286,695 | ||||||||||||
Included in the totals above are the following purchased credit impaired loans | $ | 164 | $ | 756 | $ | 553 | $ | 1,473 | $ | 18,258 | $ | 19,731 |
March 31, 2018 | December 31, 2017 | |||||||||||||||
(in thousands) | Non-Accrual | Loans Past Due 90 Days or More and Still Accruing | Non-Accrual | Loans Past Due 90 Days or More and Still Accruing | ||||||||||||
Agricultural | $ | 390 | $ | — | $ | 168 | $ | — | ||||||||
Commercial and industrial | 7,125 | — | 7,124 | — | ||||||||||||
Commercial real estate: | ||||||||||||||||
Construction and development | 186 | — | 188 | — | ||||||||||||
Farmland | 140 | — | 386 | — | ||||||||||||
Multifamily | — | — | — | — | ||||||||||||
Commercial real estate-other | 3,924 | — | 5,279 | — | ||||||||||||
Total commercial real estate | 4,250 | — | 5,853 | — | ||||||||||||
Residential real estate: | ||||||||||||||||
One- to four- family first liens | 1,312 | 103 | 1,228 | 205 | ||||||||||||
One- to four- family junior liens | 434 | 13 | 346 | 2 | ||||||||||||
Total residential real estate | 1,746 | 116 | 1,574 | 207 | ||||||||||||
Consumer | 55 | — | 65 | — | ||||||||||||
Total | $ | 13,566 | $ | 116 | $ | 14,784 | $ | 207 |
• | Purchased non-credit impaired loans are accounted for in accordance with ASC 310-20 “Nonrefundable Fees and Other Costs” as these loans do not have evidence of significant credit deterioration since origination and it is probable all contractually required payments will be received from the borrower. |
• | Purchased credit impaired loans are accounted for in accordance with ASC 310-30 “Loans and Debt Securities Acquired with Deteriorated Credit Quality” as they display significant credit deterioration since origination and it is probable, as of the acquisition date, that the Company will be unable to collect all contractually required payments from the borrower. |
Three Months Ended March 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Balance at beginning of period | $ | 840 | $ | 1,961 | ||||
Accretion | (277 | ) | (416 | ) | ||||
Reclassification from nonaccretable difference | 45 | 88 | ||||||
Balance at end of period | $ | 608 | $ | 1,633 |
Interest Rate Derivative | Number of Instruments | Notional | ||||
(dollars in thousands) | ||||||
Interest Rate Swaps | 1 | 4,354 |
Line Item in the Balance Sheet in Which the Hedged Item is Included | Carrying Amount of the Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | ||||
(in thousands) | ||||||
Loans | 4,516 | 161 |
Fair Values of Derivative Instruments | ||||||||||
As of March 31, 2018 | As of December 31, 2017 | |||||||||
(in thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||
Derivatives designated as hedging instruments: | ||||||||||
Interest rate products | Other Liabilities | 161 | N/A | — |
Location and Amount of Gain or Loss Recognized in Income on Fair Value Hedging Relationships | ||||||||||||
For the Three Months Ended March 31, | ||||||||||||
2018 | 2017 | |||||||||||
(in thousands) | Interest Income (Expense) | Other Gain (Loss) | Interest Income (Expense) | Other Gain (Loss) | ||||||||
Total amounts of income and expense line items presented in the Consolidated Statements of Operation in which the effects of fair value hedges are recorded | (1 | ) | — | — | — | |||||||
The effects of fair value hedging: | ||||||||||||
Loss on fair value hedging relationships in subtopic 815-20: | ||||||||||||
Interest contracts: | ||||||||||||
Hedged items | (162 | ) | — | — | — | |||||||
Derivative designated as hedging instruments | 161 | — | — | — |
Offsetting of Derivative Assets | Gross Amounts Not Offset in the Balance Sheet | |||||||||||||||||
(in thousands) | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets (Liabilities) presented in the Balance Sheet | Financial Instruments | Cash Collateral Received (Paid) | Net Assets (Liabilities) | ||||||||||||
As of March 31, 2018 | ||||||||||||||||||
Derivatives | (161 | ) | — | (161 | ) | — | (130 | ) | (31 | ) | ||||||||
As of December 31, 2017 | ||||||||||||||||||
Derivatives | — | — | — | — | — | — |
(in thousands) | Insurance Agency Intangible | Core Deposit Intangible | Indefinite-Lived Trade Name Intangible | Finite-Lived Trade Name Intangible | Customer List Intangible | Total | |||||||||||||||||||
March 31, 2018 | |||||||||||||||||||||||||
Balance, beginning of period | $ | 148 | $ | 4,011 | $ | 7,040 | $ | 744 | $ | 103 | $ | 12,046 | |||||||||||||
Amortization expense | (9 | ) | (594 | ) | — | (50 | ) | (4 | ) | (657 | ) | ||||||||||||||
Balance at end of period | $ | 139 | $ | 3,417 | $ | 7,040 | $ | 694 | $ | 99 | $ | 11,389 | |||||||||||||
Gross carrying amount | $ | 1,320 | $ | 18,206 | $ | 7,040 | $ | 1,380 | $ | 330 | $ | 28,276 | |||||||||||||
Accumulated amortizations | (1,181 | ) | (14,789 | ) | — | (686 | ) | (231 | ) | (16,887 | ) | ||||||||||||||
Net book value | $ | 139 | $ | 3,417 | $ | 7,040 | $ | 694 | $ | 99 | $ | 11,389 |
(in thousands) | March 31, 2018 | December 31, 2017 | ||||||
Federal Home Loan Bank Stock | $ | 12,780 | $ | 11,324 | ||||
Prepaid expenses | 2,067 | 2,992 | ||||||
Mortgage servicing rights | 2,536 | 2,316 | ||||||
Federal & state income taxes receivable, current | 897 | 3,120 | ||||||
Accounts receivable & other miscellaneous assets | 4,479 | 3,009 | ||||||
$ | 22,759 | $ | 22,761 |
March 31, 2018 | December 31, 2017 | ||||||||||||||
(in thousands) | Weighted Average Cost | Balance | Weighted Average Cost | Balance | |||||||||||
Federal funds purchased | 1.95 | % | $ | 25,573 | 1.77 | % | $ | 1,000 | |||||||
Securities sold under agreements to repurchase | 0.72 | 67,738 | 0.71 | 96,229 | |||||||||||
Total | 1.06 | % | $ | 93,311 | 0.73 | % | $ | 97,229 |
Face Value | Book Value | Interest Rate | Interest Rate at | Maturity Date | Callable Date | |||||||||||||
(in thousands) | 3/31/2018 | |||||||||||||||||
March 31, 2018 | ||||||||||||||||||
Central Bancshares Capital Trust II(1) (2) | $ | 7,217 | $ | 6,688 | Three-month LIBOR + 3.50% | 5.62 | % | 03/15/2038 | 03/15/2013 | |||||||||
Barron Investment Capital Trust I(1) (2) | 2,062 | 1,665 | Three-month LIBOR + 2.15% | 4.42 | % | 09/23/2036 | 09/23/2011 | |||||||||||
MidWestOne Statutory Trust II(1) | 15,464 | 15,464 | Three-month LIBOR + 1.59% | 3.71 | % | 12/15/2037 | 12/15/2012 | |||||||||||
Total | $ | 24,743 | $ | 23,817 |
Face Value | Book Value | Interest Rate | Interest Rate at | Maturity Date | Callable Date | |||||||||||||
(in thousands) | 12/31/2017 | |||||||||||||||||
December 31, 2017 | ||||||||||||||||||
Central Bancshares Capital Trust II(1) (2) | $ | 7,217 | $ | 6,674 | Three-month LIBOR + 3.50% | 5.09 | % | 03/15/2038 | 03/15/2013 | |||||||||
Barron Investment Capital Trust I(1) (2) | 2,062 | 1,655 | Three-month LIBOR + 2.15% | 3.82 | % | 09/23/2036 | 09/23/2011 | |||||||||||
MidWestOne Statutory Trust II(1) | 15,464 | 15,464 | Three-month LIBOR + 1.59% | 3.18 | % | 12/15/2037 | 12/15/2012 | |||||||||||
Total | $ | 24,743 | $ | 23,793 |
March 31, 2018 | December 31, 2017 | |||||||||||||
(in thousands) | Weighted Average Cost | Balance | Weighted Average Cost | Balance | ||||||||||
FHLB Borrowings | 1.93 | % | $ | 123,000 | 1.72 | % | $ | 115,000 | ||||||
Note payable to unaffiliated bank | 3.41 | 11,250 | 3.32 | 12,500 | ||||||||||
Total | 2.05 | % | $ | 134,250 | 1.88 | % | $ | 127,500 |
For the Three Months Ended March 31, | ||||||||||||||
2018 | 2017 | |||||||||||||
(in thousands) | Amount | % of Pretax Income | Amount | % of Pretax Income | ||||||||||
Expected provision | $ | 2,053 | 21.0 | % | $ | 3,235 | 35.0 | % | ||||||
Tax-exempt interest | (490 | ) | (5.0 | ) | (786 | ) | (8.5 | ) | ||||||
Bank-owned life insurance | (91 | ) | (0.9 | ) | (115 | ) | (1.2 | ) | ||||||
State income taxes, net of federal income tax benefit | 529 | 5.4 | 405 | 4.4 | ||||||||||
General business credits | (47 | ) | (0.8 | ) | (21 | ) | (0.2 | ) | ||||||
Other | 30 | 0.6 | (189 | ) | (2.1 | ) | ||||||||
Total income tax provision | $ | 1,984 | 20.3 | % | $ | 2,529 | 27.4 | % |
Three Months Ended March 31, | |||||||||
(dollars in thousands, except per share amounts) | 2018 | 2017 | |||||||
Basic earnings per common share computation | |||||||||
Numerator: | |||||||||
Net income | $ | 7,793 | $ | 6,713 | |||||
Denominator: | |||||||||
Weighted average shares outstanding | 12,222,690 | 11,505,687 | |||||||
Basic earnings per common share | $ | 0.64 | $ | 0.58 | |||||
Diluted earnings per common share computation | |||||||||
Numerator: | |||||||||
Net income | $ | 7,793 | $ | 6,713 | |||||
Denominator: | |||||||||
Weighted average shares outstanding, including all dilutive potential shares | 12,241,714 | 11,555,356 | |||||||
Diluted earnings per common share | $ | 0.64 | $ | 0.58 |
• | Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2 Inputs – Inputs other than quoted prices within Level 1 that are observable for assets or liabilities, either directly or indirectly. |
• | Level 3 Inputs – Unobservable inputs for the asset or liability. |
Fair Value Measurement at March 31, 2018 Using | ||||||||||||||||
(in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Available for sale debt securities: | ||||||||||||||||
U.S. Government agencies and corporations | $ | 15,399 | $ | — | $ | 15,399 | $ | — | ||||||||
State and political subdivisions | 147,526 | — | 147,526 | — | ||||||||||||
Mortgage-backed securities | 47,260 | — | 47,260 | — | ||||||||||||
Collateralized mortgage obligations | 170,805 | — | 170,805 | — | ||||||||||||
Corporate debt securities | 65,097 | — | 65,097 | — | ||||||||||||
Total available for sale debt securities | $ | 446,087 | $ | — | $ | 446,087 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivatives | $ | 161 | $ | — | $ | 161 | $ | — |
Fair Value Measurement at December 31, 2017 Using | ||||||||||||||||
(in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Available for sale debt securities: | ||||||||||||||||
U.S. Government agencies and corporations | $ | 15,626 | $ | — | $ | 15,626 | $ | — | ||||||||
State and political subdivisions | 141,839 | — | 141,839 | — | ||||||||||||
Mortgage-backed securities | 48,497 | — | 48,497 | — | ||||||||||||
Collateralized mortgage obligations | 168,196 | — | 168,196 | — | ||||||||||||
Corporate debt securities | 71,166 | — | 71,166 | — | ||||||||||||
Total available for sale debt securities | $ | 445,324 | $ | — | $ | 445,324 | $ | — | ||||||||
Other equity securities | 2,336 | 2,336 | — | — | ||||||||||||
Total securities available for sale | $ | 447,660 | $ | 2,336 | $ | 445,324 | $ | — |
Fair Value Measurement at March 31, 2018 Using | ||||||||||||||||
(in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Collateral dependent impaired loans | $ | 8,877 | $ | — | $ | — | $ | 8,877 | ||||||||
Other real estate owned | $ | 1,001 | $ | — | $ | — | $ | 1,001 |
Fair Value Measurement at December 31, 2017 Using | ||||||||||||||||
(in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Collateral dependent impaired loans | $ | 3,927 | $ | — | $ | — | $ | 3,927 | ||||||||
Other real estate owned | $ | 2,010 | $ | — | $ | — | $ | 2,010 |
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||
(dollars in thousands) | Fair Value at March 31, 2018 | Valuation Techniques(s) | Unobservable Input | Range of Inputs | Weighted Average | |||||||||
Collateral dependent impaired loans | $ | 8,877 | Modified appraised value | Third party appraisal | NM * | - | NM * | NM * | ||||||
Appraisal discount | NM * | - | NM * | NM * | ||||||||||
Other real estate owned | $ | 1,001 | Modified appraised value | Third party appraisal | NM * | - | NM * | NM * | ||||||
Appraisal discount | NM * | - | NM * | NM * |
March 31, 2018 | ||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 42,396 | $ | 42,396 | $ | 42,396 | $ | — | $ | — | ||||||||||
Investment securities: | ||||||||||||||||||||
Equity securities | 2,815 | 2,815 | 2,815 | — | — | |||||||||||||||
Available for sale debt securities | 446,087 | 446,087 | — | 446,087 | — | |||||||||||||||
Held to maturity debt securities | 194,617 | 190,593 | — | 190,593 | — | |||||||||||||||
Total investment securities | 643,519 | 639,495 | 2,815 | 636,680 | — | |||||||||||||||
Loans held for sale | 870 | 895 | — | 895 | — | |||||||||||||||
Loans, net | 2,296,487 | 2,247,398 | — | — | 2,247,398 | |||||||||||||||
Accrued interest receivable | 13,337 | 13,337 | 13,337 | — | — | |||||||||||||||
Federal Home Loan Bank stock | 12,780 | 12,780 | — | 12,780 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest bearing demand | 450,168 | 450,168 | 450,168 | — | — | |||||||||||||||
Interest-bearing checking | 1,240,208 | 1,240,208 | 1,240,208 | — | — | |||||||||||||||
Savings | 215,940 | 215,940 | 215,940 | — | — | |||||||||||||||
Certificates of deposit under $100,000 | 332,727 | 328,009 | — | 328,009 | — | |||||||||||||||
Certificates of deposit $100,000 and over | 392,878 | 389,430 | — | 389,430 | — | |||||||||||||||
Total deposits | 2,631,921 | 2,623,755 | 1,906,316 | 717,439 | — | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 93,311 | 93,311 | 93,311 | — | — | |||||||||||||||
Federal Home Loan Bank borrowings | 123,000 | 120,850 | — | 120,850 | — | |||||||||||||||
Junior subordinated notes issued to capital trusts | 23,817 | 21,032 | — | 21,032 | — | |||||||||||||||
Long-term debt | 11,250 | 11,250 | — | 11,250 | — | |||||||||||||||
Derivative liability | 161 | 161 | — | 161 | — |
December 31, 2017 | ||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 50,972 | $ | 50,972 | $ | 50,972 | $ | — | $ | — | ||||||||||
Investment securities: | ||||||||||||||||||||
Equity securities | 2,336 | 2,336 | 2,336 | — | — | |||||||||||||||
Available for sale debt securities | 445,324 | 445,324 | — | 445,324 | — | |||||||||||||||
Held to maturity debt securities | 195,619 | 194,343 | — | 194,343 | — | |||||||||||||||
Total investment securities | 643,279 | 642,003 | 2,336 | 639,667 | — | |||||||||||||||
Loans held for sale | 856 | 871 | — | — | 871 | |||||||||||||||
Loans, net | 2,258,636 | 2,256,726 | — | 2,256,726 | — | |||||||||||||||
Accrued interest receivable | 14,732 | 14,732 | 14,732 | — | — | |||||||||||||||
Federal Home Loan Bank stock | 11,324 | 11,324 | — | 11,324 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest bearing demand | 461,969 | 461,969 | 461,969 | — | — | |||||||||||||||
Interest-bearing checking | 1,228,112 | 1,228,112 | 1,228,112 | — | — | |||||||||||||||
Savings | 213,430 | 213,430 | 213,430 | — | — | |||||||||||||||
Certificates of deposit under $100,000 | 324,681 | 321,197 | — | 321,197 | — | |||||||||||||||
Certificates of deposit $100,000 and over | 377,127 | 374,685 | — | 374,685 | — | |||||||||||||||
Total deposits | 2,605,319 | 2,599,393 | 1,903,511 | 695,882 | — | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 97,229 | 97,229 | 97,229 | — | — | |||||||||||||||
Federal Home Loan Bank borrowings | 115,000 | 114,945 | — | 114,945 | — | |||||||||||||||
Junior subordinated notes issued to capital trusts | 23,793 | 19,702 | — | 19,702 | — | |||||||||||||||
Long-term debt | 12,500 | 12,500 | — | 12,500 | — |
As of and for the Three Months Ended March 31, | |||||||
(dollars in thousands, except per share amounts) | 2018 | 2017 | |||||
Net Income | $ | 7,793 | $ | 6,713 | |||
Average Assets | 3,216,018 | 3,059,397 | |||||
Average Shareholders’ Equity | 340,550 | 308,318 | |||||
Return on Average Assets* | 0.98 | % | 0.89 | % | |||
Return on Average Shareholders’ Equity* | 9.28 | 8.83 | |||||
Return on Average Tangible Equity*(1) | 12.70 | 12.71 | |||||
Total Equity to Assets (end of period) | 10.53 | 10.62 | |||||
Tangible Equity to Tangible Assets (end of period)(1) | 8.41 | 8.36 | |||||
Tangible Book Value per Share(1) | $ | 21.81 | $ | 21.01 | |||
* Annualized | |||||||
(1) A non-GAAP financial measure. See below for a reconciliation to the most comparable GAAP equivalents. |
For the Three Months Ended March 31, | |||||||
(dollars in thousands, except per share amounts) | 2018 | 2017 | |||||
Net Income: | |||||||
Net income | $ | 7,793 | $ | 6,713 | |||
Plus: Intangible amortization, net of tax (1) | 519 | 552 | |||||
Adjusted net income | $ | 8,312 | $ | 7,265 | |||
Average Tangible Equity: | |||||||
Average total shareholders’ equity | $ | 340,550 | $ | 308,318 | |||
Less: Average intangibles, net of amortization | (76,364 | ) | (79,381 | ) | |||
Plus: Average deferred tax liability associated with intangibles | 1,154 | 2,899 | |||||
Average tangible equity | $ | 265,340 | $ | 231,836 | |||
Return on Average Tangible Equity (annualized) | 12.70 | % | 12.71 | % | |||
(1) Computed on a tax-equivalent basis, assuming a federal income tax rate of 21% for 2018 and 35%. for 2017. |
Adjusted Noninterest Income: | |||||||
Noninterest income | $ | 5,672 | $ | 5,537 | |||
Less: Gain on sale of available for sale debt securities | (9 | ) | — | ||||
Gain on sale of held to maturity debt securities | — | (43 | ) | ||||
Loss on sale of premises and equipment | 1 | 2 | |||||
Other gain | (102 | ) | (13 | ) | |||
Adjusted noninterest income | $ | 5,562 | $ | 5,483 | |||
Total Revenue: | |||||||
Net interest income | $ | 26,313 | $ | 25,081 | |||
Plus: Noninterest income | 5,672 | 5,537 | |||||
Less: Gain on sale of available for sale debt securities | (9 | ) | — | ||||
Gain on sale of held to maturity debt securities | — | (43 | ) | ||||
Loss on sale of premises and equipment | 1 | 2 | |||||
Other gain | (102 | ) | (13 | ) | |||
Total Revenue | $ | 31,875 | $ | 30,564 | |||
Adjusted Noninterest Income as a Percentage of Total Revenue(1) | 17.4 | % | 17.9 | % | |||
(1) This measure tracks management’s strategic goal for this measure to be at 25%. |
As of March 31, | |||||||
(dollars in thousands, except per share amounts) | 2018 | 2017 | |||||
Tangible Equity: | |||||||
Total shareholders’ equity | $ | 341,377 | $ | 327,514 | |||
Plus: Deferred tax liability associated with intangibles | 1,073 | 2,741 | |||||
Less: Intangible assets, net | (76,043 | ) | (78,976 | ) | |||
Tangible equity | $ | 266,407 | $ | 251,279 | |||
Tangible Assets: | |||||||
Total assets | $ | 3,241,642 | $ | 3,083,515 | |||
Plus: Deferred tax liability associated with intangibles | 1,073 | 2,741 | |||||
Less: Intangible assets, net | (76,043 | ) | (78,976 | ) | |||
Tangible assets | $ | 3,166,672 | $ | 3,007,280 | |||
Common shares outstanding | 12,214,942 | 11,959,521 | |||||
Tangible Book Value Per Share | $ | 21.81 | $ | 21.01 | |||
Tangible Equity/Tangible Assets | 8.41 | % | 8.36 | % |
Three Months Ended March 31, | |||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense | Average Rate/ Yield | Average Balance | Interest Income/ Expense | Average Rate/ Yield | |||||||||||||||
Average Earning Assets: | |||||||||||||||||||||
Loans (1)(2)(3) | $ | 2,304,984 | $ | 26,808 | 4.72 | % | $ | 2,161,054 | $ | 24,682 | 4.63 | % | |||||||||
Investment securities: | |||||||||||||||||||||
Taxable investments | 439,723 | 2,888 | 2.66 | 440,381 | 2,718 | 2.50 | |||||||||||||||
Tax exempt investments (2) | 216,590 | 1,930 | 3.61 | 215,194 | 2,395 | 4.51 | |||||||||||||||
Total investment securities | 656,313 | 4,818 | 2.98 | 655,575 | 5,113 | 3.16 | |||||||||||||||
Federal funds sold and interest-bearing balances | 2,421 | 8 | 1.34 | 2,577 | 5 | 0.79 | |||||||||||||||
Total interest-earning assets | $ | 2,963,718 | $ | 31,634 | 4.33 | % | $ | 2,819,206 | $ | 29,800 | 4.29 | % | |||||||||
Cash and due from banks | 35,388 | 35,071 | |||||||||||||||||||
Premises and equipment | 76,955 | 74,975 | |||||||||||||||||||
Allowance for loan losses | (28,743 | ) | (22,246 | ) | |||||||||||||||||
Other assets | 168,700 | 152,391 | |||||||||||||||||||
Total assets | $ | 3,216,018 | $ | 3,059,397 | |||||||||||||||||
Average Interest-Bearing Liabilities: | |||||||||||||||||||||
Savings and interest-bearing demand deposits | $ | 1,413,342 | $ | 1,148 | 0.33 | % | $ | 1,338,035 | $ | 849 | 0.26 | % | |||||||||
Certificates of deposit | 718,312 | 2,388 | 1.35 | 669,290 | 1,776 | 1.08 | |||||||||||||||
Total deposits | 2,131,654 | 3,536 | 0.67 | 2,007,325 | 2,625 | 0.53 | |||||||||||||||
Federal funds purchased and repurchase agreements | 106,746 | 259 | 0.98 | 89,260 | 84 | 0.38 | |||||||||||||||
Federal Home Loan Bank borrowings | 123,644 | 517 | 1.70 | 111,111 | 443 | 1.62 | |||||||||||||||
Long-term debt and other | 37,559 | 367 | 3.96 | 42,565 | 334 | 3.18 | |||||||||||||||
Total borrowed funds | 267,949 | 1,143 | 1.73 | 242,936 | 861 | 1.44 | |||||||||||||||
Total interest-bearing liabilities | $ | 2,399,603 | $ | 4,679 | 0.79 | % | $ | 2,250,261 | $ | 3,486 | 0.63 | % | |||||||||
Net interest spread(2) | 3.54 | % | 3.66 | % | |||||||||||||||||
Demand deposits | 456,883 | 480,681 | |||||||||||||||||||
Other liabilities | 18,982 | 20,137 | |||||||||||||||||||
Shareholders’ equity | 340,550 | 308,318 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,216,018 | $ | 3,059,397 | |||||||||||||||||
Interest income/earning assets (2) | $ | 2,963,718 | $ | 31,634 | 4.33 | % | $ | 2,819,206 | $ | 29,800 | 4.29 | % | |||||||||
Interest expense/earning assets | $ | 2,963,718 | $ | 4,679 | 0.64 | % | $ | 2,819,206 | $ | 3,486 | 0.50 | % | |||||||||
Net interest margin (2)(4) | $ | 26,955 | 3.69 | % | $ | 26,314 | 3.79 | % | |||||||||||||
Non-GAAP to GAAP Reconciliation: | |||||||||||||||||||||
Tax Equivalent Adjustment: | |||||||||||||||||||||
Loans | $ | 241 | $ | 403 | |||||||||||||||||
Securities | 401 | 830 | |||||||||||||||||||
Total tax equivalent adjustment | 642 | 1,233 | |||||||||||||||||||
Net Interest Income | $ | 26,313 | $ | 25,081 |
(1) | Loan fees included in interest income are not material. | |
(2) | Computed on a tax-equivalent basis, assuming a federal income tax rate of 21% for 2018 and 35% for 2017. | |
(3) | Non-accrual loans have been included in average loans, net of unearned discount. | |
(4) | Net interest margin is tax-equivalent net interest income as a percentage of average earning assets. |
Three Months Ended March 31, | |||||||||||
2018 Compared to 2017 Change due to | |||||||||||
(in thousands) | Volume | Rate/Yield | Net | ||||||||
Increase (decrease) in interest income: | |||||||||||
Loans, tax equivalent | $ | 1,646 | $ | 480 | $ | 2,126 | |||||
Investment securities: | |||||||||||
Taxable investments | (28 | ) | 198 | 170 | |||||||
Tax exempt investments | 107 | (572 | ) | (465 | ) | ||||||
Total investment securities | 79 | (374 | ) | (295 | ) | ||||||
Federal funds sold and interest-bearing balances | (2 | ) | 5 | 3 | |||||||
Change in interest income | 1,723 | 111 | 1,834 | ||||||||
Increase (decrease) in interest expense: | |||||||||||
Savings and interest-bearing demand deposits | 52 | 247 | 299 | ||||||||
Certificates of deposit | 139 | 473 | 612 | ||||||||
Total deposits | 191 | 720 | 911 | ||||||||
Federal funds purchased and repurchase agreements | 19 | 156 | 175 | ||||||||
Federal Home Loan Bank borrowings | 51 | 23 | 74 | ||||||||
Other long-term debt | (205 | ) | 238 | 33 | |||||||
Total borrowed funds | (135 | ) | 417 | 282 | |||||||
Change in interest expense | 56 | 1,137 | 1,193 | ||||||||
Change in net interest income | $ | 1,667 | $ | (1,026 | ) | $ | 641 | ||||
Percentage change in net interest income over prior period | 2.4 | % |
Three Months Ended March 31, | ||||||||||||||
(dollars in thousands) | 2018 | 2017 | $ Change | % Change | ||||||||||
Trust, investment, and insurance fees | $ | 1,640 | $ | 1,612 | $ | 28 | 1.7 | % | ||||||
Service charges and fees on deposit accounts | 1,168 | 1,283 | (115 | ) | (9.0 | ) | ||||||||
Loan origination and servicing fees | 941 | 802 | 139 | 17.3 | ||||||||||
Other service charges and fees | 1,380 | 1,458 | (78 | ) | (5.3 | ) | ||||||||
Bank-owned life insurance income | 433 | 328 | 105 | 32.0 | ||||||||||
Gain on sale or call of available for sale debt securities | 9 | — | 9 | NM | ||||||||||
Gain on sale or call of held to maturity debt securities | — | 43 | (43 | ) | NM | |||||||||
Loss on sale of premises and equipment | (1 | ) | (2 | ) | 1 | (50.0 | ) | |||||||
Other gain | 102 | 13 | 89 | NM | ||||||||||
Total noninterest income | $ | 5,672 | $ | 5,537 | $ | 135 | 2.4 | % | ||||||
Adjusted noninterest income as a % of total revenue* | 17.4 | % | 17.9 | % | ||||||||||
NM - Percentage change not considered meaningful. | ||||||||||||||
* See the non-GAAP reconciliation at the beginning of this section for the reconciliation of this non-GAAP measure to its most directly comparable GAAP financial measures. |
Three Months Ended March 31, | ||||||||||||||
(dollars in thousands) | 2018 | 2017 | $ Change | % Change | ||||||||||
Salaries and employee benefits | $ | 12,371 | $ | 11,884 | $ | 487 | 4.1 | % | ||||||
Net occupancy and equipment expense | 3,251 | 3,304 | (53 | ) | (1.6 | ) | ||||||||
Professional fees | 794 | 1,022 | (228 | ) | (22.3 | ) | ||||||||
Data processing expense | 688 | 711 | (23 | ) | (3.2 | ) | ||||||||
FDIC insurance expense | 319 | 367 | (48 | ) | (13.1 | ) | ||||||||
Amortization of intangible assets | 657 | 849 | (192 | ) | (22.6 | ) | ||||||||
Other operating expense | 2,278 | 2,198 | 80 | 3.6 | ||||||||||
Total noninterest expense | $ | 20,358 | $ | 20,335 | $ | 23 | 0.1 | % |
March 31, 2018 | December 31, 2017 | ||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | |||||||||
Agricultural | $ | 111,975 | 4.8 | % | $ | 105,512 | 4.6 | % | |||||
Commercial and industrial | 513,778 | 22.1 | 503,624 | 22.0 | |||||||||
Commercial real estate: | |||||||||||||
Construction and development | 194,712 | 8.4 | 165,276 | 7.3 | |||||||||
Farmland | 87,030 | 3.7 | 87,868 | 3.8 | |||||||||
Multifamily | 126,802 | 5.5 | 134,506 | 5.9 | |||||||||
Commercial real estate-other | 789,902 | 34.0 | 784,321 | 34.3 | |||||||||
Total commercial real estate | 1,198,446 | 51.6 | 1,171,971 | 51.3 | |||||||||
Residential real estate: | |||||||||||||
One- to four-family first liens | 349,742 | 15.0 | 352,226 | 15.4 | |||||||||
One- to four-family junior liens | 116,187 | 5.0 | 117,204 | 5.1 | |||||||||
Total residential real estate | 465,929 | 20.0 | 469,430 | 20.5 | |||||||||
Consumer | 36,030 | 1.5 | 36,158 | 1.6 | |||||||||
Total loans | $ | 2,326,158 | 100.0 | % | $ | 2,286,695 | 100.0 | % |
(in thousands) | 90 Days or More Past Due and Still Accruing Interest | Restructured | Nonaccrual | Total | |||||||||||
March 31, 2018 | |||||||||||||||
Agricultural | $ | — | $ | 2,502 | $ | 390 | $ | 2,892 | |||||||
Commercial and industrial | — | 492 | 7,125 | 7,617 | |||||||||||
Commercial real estate: | |||||||||||||||
Construction and development | — | — | 186 | 186 | |||||||||||
Farmland | — | — | 140 | 140 | |||||||||||
Multifamily | — | — | — | — | |||||||||||
Commercial real estate-other | — | 3,774 | 3,924 | 7,698 | |||||||||||
Total commercial real estate | — | 3,774 | 4,250 | 8,024 | |||||||||||
Residential real estate: | |||||||||||||||
One- to four- family first liens | 103 | 687 | 1,312 | 2,102 | |||||||||||
One- to four- family junior liens | 13 | — | 434 | 447 | |||||||||||
Total residential real estate | 116 | 687 | 1,746 | 2,549 | |||||||||||
Consumer | — | — | 55 | 55 | |||||||||||
Total | $ | 116 | $ | 7,455 | $ | 13,566 | $ | 21,137 |
(in thousands) | 90 Days or More Past Due and Still Accruing Interest | Restructured | Nonaccrual | Total | |||||||||||
December 31, 2017 | |||||||||||||||
Agricultural | $ | — | $ | 2,637 | $ | 168 | $ | 2,805 | |||||||
Commercial and industrial | — | 1,450 | 7,124 | 8,574 | |||||||||||
Commercial real estate: | |||||||||||||||
Construction and development | — | — | 188 | 188 | |||||||||||
Farmland | — | — | 386 | 386 | |||||||||||
Multifamily | — | — | — | — | |||||||||||
Commercial real estate-other | — | 4,028 | 5,279 | 9,307 | |||||||||||
Total commercial real estate | — | 4,028 | 5,853 | 9,881 | |||||||||||
Residential real estate: | |||||||||||||||
One- to four- family first liens | 205 | 755 | 1,228 | 2,188 | |||||||||||
One- to four- family junior liens | 2 | — | 346 | 348 | |||||||||||
Total residential real estate | 207 | 755 | 1,574 | 2,536 | |||||||||||
Consumer | — | — | 65 | 65 | |||||||||||
Total | $ | 207 | $ | 8,870 | $ | 14,784 | $ | 23,861 |
• | The borrower receives a reduction of the stated interest rate for the remaining original life of the debt. |
• | The borrower receives an extension of the maturity date or dates at a stated interest rate lower than the current market interest rate for new debt with similar risk characteristics. |
• | The borrower receives a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. |
• | The borrower receives a deferral of required payments (principal and/or interest). |
• | The borrower receives a reduction of the accrued interest. |
March 31, | December 31, | ||||||
(in thousands) | 2018 | 2017 | |||||
Restructured Loans (TDRs): | |||||||
In compliance with modified terms | $ | 7,455 | $ | 8,870 | |||
Not in compliance with modified terms - on nonaccrual status or 90 days or more past due and still accruing interest | 3,492 | 4,778 | |||||
Total restructured loans | $ | 10,947 | $ | 13,648 |
At March 31, 2018 | |||||||||||||||||||||
(dollars in thousands) | Gross Loans (A) | Discount (B) | Loans, Net of Discount (A-B) | Allowance (C) | Allowance/Gross Loans (C/A) | Allowance + Discount/Gross Loans ((B+C)/A) | |||||||||||||||
Total Non-Acquired Loans | $ | 2,033,998 | $ | — | $ | 2,033,998 | $ | 28,943 | 1.42 | % | 1.42 | % | |||||||||
Total Acquired Loans | 299,757 | 7,597 | 292,160 | 728 | 0.24 | 2.78 | |||||||||||||||
Total Loans | $ | 2,333,755 | $ | 7,597 | $ | 2,326,158 | $ | 29,671 | 1.28 | % | 1.60 | % |
At December 31, 2017 | |||||||||||||||||||||
(dollars in thousands) | Gross Loans (A) | Discount (B) | Loans, Net of Discount (A-B) | Allowance (C) | Allowance/Gross Loans (C/A) | Allowance + Discount/Gross Loans ((B+C)/A) | |||||||||||||||
Total Non-Acquired Loans | $ | 1,964,047 | $ | — | $ | 1,964,047 | $ | 27,209 | 1.39 | % | 1.39 | % | |||||||||
Total Acquired Loans | 331,122 | 8,474 | 322,648 | 850 | 0.26 | 2.82 | |||||||||||||||
Total Loans | $ | 2,295,169 | $ | 8,474 | $ | 2,286,695 | $ | 28,059 | 1.23 | % | 1.59 | % |
At March 31, | At December 31, | ||||||
(in thousands) | 2018 | 2017 | |||||
Tier 1 capital | |||||||
Total shareholders’ equity | $ | 341,377 | $ | 340,304 | |||
Less: Net unrealized gains on securities available for sale | 6,204 | 2,602 | |||||
Disallowed Intangibles | (74,808 | ) | (73,340 | ) | |||
Common equity tier 1 capital | $ | 272,773 | 269,566 | ||||
Plus: Junior subordinated notes issued to capital trusts (qualifying restricted core capital) | 23,817 | 23,793 | |||||
Tier 1 capital | $ | 296,590 | $ | 293,359 | |||
Risk-weighted assets | $ | 2,726,654 | $ | 2,677,721 | |||
Tier 1 capital to risk-weighted assets | 10.88 | % | 10.96 | % | |||
Common Equity Tier 1 capital to risk-weighted assets | 10.00 | % | 10.07 | % |
Actual | For Capital Adequacy Purposes* | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
At March 31, 2018 | ||||||||||||||||||||
Consolidated: | ||||||||||||||||||||
Total capital/risk based assets | $ | 326,261 | 11.97 | % | $ | 269,257 | 9.875 | % | N/A | N/A | ||||||||||
Tier 1 capital/risk based assets | 296,590 | 10.88 | 214,724 | 7.875 | N/A | N/A | ||||||||||||||
Common equity tier 1 capital/risk based assets | 272,773 | 10.00 | 173,824 | 6.375 | N/A | N/A | ||||||||||||||
Tier 1 capital/adjusted average assets | 296,590 | 9.44 | 125,717 | 4.000 | N/A | N/A | ||||||||||||||
MidWestOne Bank: | ||||||||||||||||||||
Total capital/risk based assets | $ | 325,149 | 11.96 | % | $ | 268,468 | 9.875 | % | $ | 271,867 | 10.00 | % | ||||||||
Tier 1 capital/risk based assets | 295,478 | 10.87 | 214,095 | 7.875 | 217,493 | 8.00 | ||||||||||||||
Common equity tier 1 capital/risk based assets | 295,478 | 10.87 | 173,315 | 6.375 | 176,713 | 6.50 | ||||||||||||||
Tier 1 capital/adjusted average assets | 295,478 | 9.42 | 125,501 | 4.000 | 156,876 | 5.00 | ||||||||||||||
At December 31, 2017 | ||||||||||||||||||||
Consolidated: | ||||||||||||||||||||
Total capital/risk based assets | $ | 321,459 | 12.00 | % | $ | 247,689 | 9.250 | % | N/A | N/A | ||||||||||
Tier 1 capital/risk based assets | 293,359 | 10.96 | 194,135 | 7.250 | N/A | N/A | ||||||||||||||
Common equity tier 1 capital/risk based assets | 269,566 | 10.07 | 153,969 | 5.750 | N/A | N/A | ||||||||||||||
Tier 1 capital/adjusted average assets | 293,359 | 9.48 | 123,831 | 4.000 | N/A | N/A | ||||||||||||||
MidWestOne Bank: | ||||||||||||||||||||
Total capital/risk based assets | $ | 322,679 | 12.08 | % | $ | 247,010 | 9.250 | % | $ | 267,038 | 10.00 | % | ||||||||
Tier 1 capital/risk based assets | 294,620 | 11.03 | 193,603 | 7.250 | 213,631 | 8.00 | ||||||||||||||
Common equity tier 1 capital/risk based assets | 294,620 | 11.03 | 153,547 | 5.750 | 173,575 | 6.50 | ||||||||||||||
Tier 1 capital/adjusted average assets | 294,620 | 9.53 | 123,678 | 4.000 | 154,598 | 5.00 | ||||||||||||||
* The ratios for December 31, 2017 include a capital conservation buffer of 1.25%, and the ratios for March 31, 2018 include a capital conservation buffer of 1.875% |
• | credit quality deterioration or pronounced and sustained reduction in real estate market values that cause an increase in our allowance for credit losses and a reduction in net earnings; |
• | our management’s ability to reduce and effectively manage interest rate risk and the impact of interest rates in general on the volatility of our net interest income; |
• | changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; |
• | fluctuations in the value of our investment securities; |
• | governmental monetary and fiscal policies; |
• | legislative and regulatory changes, including changes in banking, securities, trade and tax laws and regulations and their application by our regulators; |
• | the ability to attract and retain key executives and employees experienced in banking and financial services; |
• | the sufficiency of the allowance for loan losses to absorb the amount of actual losses inherent in our existing loan portfolio; |
• | our ability to adapt successfully to technological changes to compete effectively in the marketplace; |
• | credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; |
• | the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, and other financial institutions operating in our markets or elsewhere or providing similar services; |
• | the failure of assumptions underlying the establishment of allowances for loan losses and estimation of values of collateral and various financial assets and liabilities; |
• | the risks of mergers, including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; |
• | volatility of rate-sensitive deposits; |
• | operational risks, including data processing system failures or fraud; |
• | asset/liability matching risks and liquidity risks; |
• | the costs, effects and outcomes of existing or future litigation; |
• | changes in general economic or industry conditions, internationally, nationally or in the communities in which we conduct business; |
• | changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the FASB; |
• | war or terrorist activities which may cause further deterioration in the economy or cause instability in credit markets; |
• | the effects of cyber-attacks; and |
• | other factors and risks described under “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2017 and otherwise in our reports and filings with the Securities and Exchange Commission. |
Immediate Change in Rates | |||||||||||||
(dollars in thousands) | -100 | +100 | +200 | ||||||||||
March 31, 2018 | |||||||||||||
Dollar change | $ | (345 | ) | $ | (54 | ) | $ | (594 | ) | ||||
Percent change | (0.3 | )% | (0.1 | )% | (0.6 | )% | |||||||
December 31, 2017 | |||||||||||||
Dollar change | $ | (729 | ) | $ | 55 | $ | (361 | ) | |||||
Percent change | (0.7 | )% | 0.1 | % | (0.4 | )% |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs | ||||||||||
January 1 - 31, 2018 | — | $ | — | — | $ | 5,000,000 | ||||||||
February 1 - 28, 2018 | 24,400 | 31.75 | 24,400 | 4,225,343 | ||||||||||
March 1 - 31, 2018 | 9,598 | 31.98 | 9,598 | 3,918,396 | ||||||||||
Total | 33,998 | $ | 31.81 | 33,998 | $ | 3,918,396 | ||||||||
Exhibit Number | Description | Incorporated by Reference to: | ||
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) | Filed herewith | |||
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) | Filed herewith | |||
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||
Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||
101.INS | XBRL Instance Document | Filed herewith | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith | ||
MIDWESTONE FINANCIAL GROUP, INC. | |||||||
Dated: | May 3, 2018 | By: | /s/ CHARLES N. FUNK | ||||
Charles N. Funk | |||||||
President and Chief Executive Officer | |||||||
(Principal Executive Officer) | |||||||
By: | /s/ JAMES M. CANTRELL | ||||||
James M. Cantrell | |||||||
Vice President and Interim Chief Financial Officer | |||||||
(Principal Financial Officer) |
1) | I have reviewed this Quarterly Report on Form 10-Q of MidWestOne Financial Group, 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 (the registrant's fourth fiscal quarter in the case of an annual report) 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. |
/s/ CHARLES N. FUNK | |
Charles N. Funk | |
President and Chief Executive Officer | |
Date: | May 3, 2018 |
1) | I have reviewed this Quarterly Report on Form 10-Q of MidWestOne Financial Group, 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 (the registrant's fourth fiscal quarter in the case of an annual report) 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. |
/s/ JAMES M. CANTRELL | |
James M. Cantrell | |
Vice President and Interim Chief Financial Officer | |
Date: | May 3, 2018 |
(a) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc. |
/s/ CHARLES N. FUNK | |
Charles N. Funk | |
President and Chief Executive Officer | |
Date: | May 3, 2018 |
(a) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc. |
/s/ JAMES M. CANTRELL | |
James M. Cantrell | |
Vice President and Interim Chief Financial Officer | |
Date: | May 3, 2018 |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
May 01, 2018 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | MIDWESTONE FINANCIAL GROUP, INC. | |
Entity Central Index Key | 0001412665 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | MOFG | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 12,215,342 |
Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Held to maturity, estimated fair value | $ 190,593 | $ 194,343 |
Shareholders' equity: | ||
Preferred stock, par value | $ 0.00 | $ 0.00 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 1.00 | $ 1.00 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 12,463,481 | 12,463,481 |
Common stock, shares outstanding | 12,214,942 | 12,219,611 |
Shares of Treasury stock | 248,539 | 243,870 |
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Net income | $ 7,793 | $ 6,713 |
Other comprehensive income, available for sale debt securities: | ||
Unrealized holding gains (losses) arising during period | (4,788) | 1,567 |
Reclassification adjustment for gains included in net income | (9) | 0 |
Income tax (expense) benefit | 1,252 | (616) |
Other comprehensive income (loss) on available for sale debt securities | (3,545) | 951 |
Other comprehensive income (loss), net of tax | (3,545) | 951 |
Comprehensive income | 4,248 | 7,664 |
AOCI Attributable to Parent [Member] | ||
Net income | 0 | 0 |
Other comprehensive income, available for sale debt securities: | ||
Other comprehensive income (loss), net of tax | $ (3,545) | $ 951 |
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands |
Total |
Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Treasury Stock |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2016 | $ 305,456 | $ 0 | $ 11,713 | $ 163,667 | $ (5,766) | $ 136,975 | $ (1,133) |
Net income | 6,713 | 0 | 0 | 0 | 0 | 6,713 | 0 |
Issuance of common stock, net of expenses | 16,142 | 0 | 500 | 15,642 | 0 | 0 | 0 |
Dividends paid on common stock | (1,891) | 0 | 0 | 0 | 0 | (1,891) | 0 |
Stock options exercised | 47 | 0 | 0 | (74) | 121 | 0 | 0 |
Release/lapse of restriction on RSUs | (103) | 0 | 0 | (420) | 317 | 0 | 0 |
Stock compensation | 199 | 0 | 0 | 199 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 951 | 0 | 0 | 0 | 0 | 0 | 951 |
Balance at Mar. 31, 2017 | 327,514 | 0 | 12,213 | 179,014 | (5,328) | 141,797 | (182) |
Balance at Dec. 31, 2017 | 340,304 | 0 | 12,463 | 187,486 | (5,121) | 148,078 | (2,602) |
Net income | 7,793 | 0 | 0 | 0 | 0 | 7,793 | 0 |
Dividends paid on common stock | (2,386) | 0 | 0 | 0 | 0 | (2,386) | 0 |
Stock options exercised | 136 | 0 | 0 | (68) | 204 | 0 | 0 |
Release/lapse of restriction on RSUs | (80) | 0 | 0 | (467) | 387 | 0 | 0 |
Repurchase of common stock | (1,082) | (1,082) | |||||
Stock compensation | 237 | 0 | 0 | 237 | 0 | 0 | 0 |
ASU 2016-01, reclassification from AOCI to Retained Earnings, unrealized gain on equity securities | 0 | 0 | 0 | 0 | 0 | 57 | (57) |
Other comprehensive income (loss), net of tax | (3,545) | 0 | 0 | 0 | 0 | 0 | (3,545) |
Balance at Mar. 31, 2018 | $ 341,377 | $ 0 | $ 12,463 | $ 187,188 | $ (5,612) | $ 153,542 | $ (6,204) |
Consolidated Statements of Shareholders' Equity Parenthetical - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Dividends paid on common stock (per share) | $ 0.195 | $ 0.165 |
Additional Paid-in Capital | ||
Expenses incurred in issuance of common stock | $ 0 | $ 983 |
Common Stock | ||
Issuance of common stock (shares) | 0 | 500,000 |
Stock options exercised (shares) | 9,700 | 5,800 |
Release/lapse of restriction on RSUs (shares) | 22,200 | 20,200 |
Common Stock | ||
Repurchase of common stock (shares) | 33,998 | 0 |
Principles of Consolidation and Presentation |
3 Months Ended |
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Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Principles of Consolidation and Presentation MidWestOne Financial Group, Inc. (the “Company,” which is also referred to herein as “we,” “our” or “us”) is an Iowa corporation incorporated in 1983, a bank holding company under the Bank Holding Company Act of 1956, as amended, and a financial holding company under the Gramm-Leach-Bliley Act of 1999. Our principal executive offices are located at 102 South Clinton Street, Iowa City, Iowa 52240. The Company owns all of the common stock of MidWestOne Bank, an Iowa state non-member bank chartered in 1934 with its main office in Iowa City, Iowa (the “Bank”), and all of the common stock of MidWestOne Insurance Services, Inc., Oskaloosa, Iowa. We operate primarily through MidWestOne Bank, our bank subsidiary, and MidWestOne Insurance Services, Inc., our wholly-owned subsidiary that operates an insurance agency business through six offices located in central and east-central Iowa. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all the information and notes necessary for complete financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”). The information in this Quarterly Report on Form 10-Q is written with the presumption that the users of the interim financial statements have read or have access to the most recent Annual Report on Form 10-K of the Company, which contains the latest audited financial statements and notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations as of December 31, 2017 and for the year then ended. Management believes that the disclosures in this Form 10-Q are adequate to make the information presented not misleading. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position as of March 31, 2018 and December 31, 2017, and the results of operations and cash flows for the three months ended March 31, 2018 and 2017. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect: (1) the reported amounts of assets and liabilities, (2) the disclosure of contingent assets and liabilities at the date of the financial statements, and (3) the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available to management at the time the estimates are made. Actual results could differ from those estimates. The results for the three months ended March 31, 2018 may not be indicative of results for the year ending December 31, 2018, or for any other period. All significant accounting policies followed in the preparation of the quarterly financial statements are disclosed in the Annual Report on Form 10-K for the year ended December 31, 2017. In the consolidated statements of cash flows, cash and cash equivalents include cash and due from banks, interest-bearing deposits in banks, and federal funds sold. Certain reclassifications have been made to prior periods’ consolidated financial statements to present them on a basis comparable with the current period’s consolidated financial statements. |
Effect of New Financial Accounting Standards |
3 Months Ended |
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Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Effect of New Financial Accounting Standards Accounting Guidance Adopted in 2018 In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contract with Customers (Topic 606). Subsequent to the issuance of ASU 2014-09, the FASB issued targeted updates to clarify specific implementation issues including ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” ASU No. 2016-12, “Narrow-Scope Improvements and Practical Expedients,” and ASU No. 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.” For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including trust and asset management fees, service charges on deposit accounts, sales of other real estate, and debit card interchange fees. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. The Company also completed its evaluation of certain costs related to these revenue streams to determine whether such costs should be presented as expenses or contra-revenue (i.e., gross vs. net). Based on its evaluation, the Company determined that ASU 2014-09 also did not materially change the method in which the Company currently recognizes costs for these revenue streams. The Company adopted this update on January 1, 2018, utilizing the modified retrospective transition method. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. See Note 14 “Revenue Recognition” for more information. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance in this update makes changes to the current GAAP model primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged. The treatment of gains and losses for all equity securities, including those without a readily determinable market value, is expected to result in additional volatility in the income statement, with the loss of mark to market via equity for these investments. Additionally, changes in the allowable method for determining the fair value of financial instruments in the financial statement footnotes (“exit price” only) require changes to current methodologies of determining these vales, and how they are disclosed in the financial statement footnotes. The new standard applies to public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this update on January 1, 2018. With the elimination of the classification of available for sale equity securities, the net unrealized gain or loss on these securities that had been included in accumulated other comprehensive income at December 31, 2017, in the amount of $57,000, has been transferred to retained earnings, as shown in the Consolidated Statement of Shareholders’ Equity. Changes in the fair value of equity securities with readily determinable fair values are now reflected in the noninterest income portion of the Consolidated Statements of Operations, in the other gains (losses) line item. In accordance with the ASU requirements, the Company measured the fair value of its loan portfolio as of March 31, 2018 using an exit price notion. See Note 13. “Estimated Fair Value of Financial Instruments and Fair Value Measurements” to our consolidated financial statements. Accounting Guidance Pending Adoption at March 31, 2018 In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842). The guidance in this update is meant to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, Elements of Financial Statements, and, therefore, recognition of those lease assets and lease liabilities represents an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. Disclosures are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. To meet that objective, qualitative disclosures along with specific quantitative disclosures are required. The new standard applies to public business entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore not recognized on the Company’s consolidated balance sheets. The Company expects the new guidance will require these lease agreements to now be recognized on the consolidated balance sheets as right-of-use assets and a corresponding lease liability. However, the Company continues to evaluate the extent of the potential impact the new guidance will have on the Company’s consolidated financial statements and the availability of outside vendor products to assist in the implementation, and does not expect to early adopt the standard. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The amendment requires the use of a new model covering current expected credit losses (CECL), which will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. Upon initial recognition of the exposure, the CECL model requires an entity to estimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses (ECL) should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments. The new guidance also amends the current available for sale (AFS) security OTTI model for debt securities. The new model will require an estimate of ECL only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. As such, it is no longer an other-than-temporary model. Finally, the purchased financial assets with credit deterioration (PCD) model applies to purchased financial assets (measured at amortized cost or AFS) that have experienced more than insignificant credit deterioration since origination. This represents a change from the scope of what are considered purchased credit-impaired assets under today’s model. Different than the accounting for originated or purchased assets that do not qualify as PCD, the initial estimate of expected credit losses for a PCD would be recognized through an allowance for loan and lease losses with an offset to the cost basis of the related financial asset at acquisition. The new standard applies to public business entities that are SEC filers in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 31, 2018, including interim periods within those fiscal years, and is expected to increase the allowance for loan losses upon adoption. The Company has formed a working group to evaluate the impact of the standard’s adoption on the Company’s consolidated financial statements, and has completed viewing demonstrations of the capabilities of outside vendor software systems, and is currently evaluating the ability of these systems to meet the processing necessary to support the data collection, retention, and disclosure requirements of the Company in implementation of the new standard. |
Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities The amortized cost and fair value of investment securities available for sale, with gross unrealized gains and losses, are as follows:
The amortized cost and fair value of investment debt securities held to maturity, with gross unrealized gains and losses, are as follows:
Investment securities with a carrying value of $238.2 million and $237.4 million at March 31, 2018 and December 31, 2017, respectively, were pledged on public deposits, securities sold under agreements to repurchase and for other purposes, as required or permitted by law. As of March 31, 2018, the Company owned $0.4 million of equity securities in banks and financial service-related companies, and $2.4 million of mutual funds invested in debt securities and other debt instruments that will cause units of the fund to be deemed to be qualified under the Community Reinvestment Act. Prior to January 1, 2018, we accounted for our marketable equity securities at fair value with unrealized gains and losses recognized in accumulated other comprehensive income on the balance sheet. Realized gains and losses on marketable equity securities sold or impaired were recognized in noninterest income. Effective with the January 1, 2018 adoption of ASU 2016-01, both the realized and unrealized net gains and losses on equity securities are required to be recognized in the statement of operations. A breakdown between net realized and unrealized gains and losses is provided later in this financial statement footnote. These net changes are included in the other gains line item in the noninterest income section of the Consolidated Statements of Operations. The summary of investment securities shows that some of the securities in the available for sale and held to maturity investment portfolios had unrealized losses, or were temporarily impaired, as of March 31, 2018 and December 31, 2017. This temporary impairment represents the estimated amount of loss that would be realized if the securities were sold on the valuation date. The following tables present information pertaining to securities with gross unrealized losses as of March 31, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position:
The Company's assessment of other-than-temporary impairment ("OTTI") is based on its reasonable judgment of the specific facts and circumstances impacting each individual debt security at the time such assessments are made. The Company reviews and considers factual information, including expected cash flows, the structure of the debt security, the creditworthiness of the issuer, the type of underlying assets and the current and anticipated market conditions. At March 31, 2018 and December 31, 2017, the Company’s mortgage-backed securities and collateralized mortgage obligations portfolios consisted of securities predominantly backed by one- to four-family mortgage loans and underwritten to the standards of and guaranteed by the following government-sponsored agencies: the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Government National Mortgage Association. The receipt of principal, at par, and interest on mortgage-backed securities is guaranteed by the respective government-sponsored agency guarantor, such that the Company believes that its mortgage-backed securities and collateralized mortgage obligations do not expose the Company to credit-related losses. At March 31, 2018, approximately 56% of the municipal bonds held by the Company were Iowa-based, and approximately 22% were Minnesota-based. The Company does not intend to sell these municipal obligations, and it is more likely than not that the Company will not be required to sell them until the recovery of their cost. Due to the issuers’ continued satisfaction of their obligations under the securities in accordance with their contractual terms and the expectation that they will continue to do so, management’s intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in fair value, as well as the evaluation of the fundamentals of the issuers’ financial conditions and other objective evidence, the Company believed that the municipal obligations identified in the tables above were temporarily impaired as of March 31, 2018 and December 31, 2017. At March 31, 2018 and December 31, 2017, all but one of the Company’s corporate bonds held an investment grade rating from Moody’s, S&P or Kroll, or carried a guarantee from an agency of the US government. We have evaluated financial statements of the company issuing the non-investment grade bond and found the company’s earnings and equity position to be satisfactory and in line with industry norms. Therefore, we expect to receive all contractual payments. The internal evaluation of the non-investment grade bond along with the investment grade ratings on the remainder of the corporate portfolio lead us to conclude that all of the corporate bonds in our portfolio will continue to pay according to their contractual terms. Since the Company has the ability and intent to hold securities until price recovery, we believe that there is no other-than-temporary-impairment in the corporate bond portfolio. It is reasonably possible that the fair values of the Company’s investment securities could decline in the future if interest rates increase or the overall economy or the financial conditions of the issuers deteriorate. As a result, there is a risk that OTTI may be recognized in the future, and any such amounts could be material to the Company’s consolidated statements of operations. During the first quarter of 2017 as part of the Company’s annual review and analysis of municipal investments, $1.2 million of municipal bonds from a single issuer in the held to maturity portfolio, which did not carry a credit rating from one of the major statistical rating agencies, were identified as having an elevated level of credit risk. While the instruments were currently making payments as agreed, certain financial trends were identified that provided material doubt as to the ability of the entity to continue to service the debt in the future. The investment securities were classified as “watch,” and the Company’s asset and liability management committee was notified of the situation. In early March 2017 the Company learned of a potential buyer for the investments and a bid to purchase was received and accepted. Investment securities designated as held to maturity may generally not be sold without calling into question the Company’s stated intention to hold other debt securities to maturity in the future (“tainting”), unless certain conditions are met that provide for an exception to accounting policy. One of these exceptions, as outlined under Accounting Standards Codification (“ASC”) 320-10-25-6(a), allows for the sale of an investment that is classified as held to maturity due to significant deterioration of the issuer’s creditworthiness. Since the bonds had been internally classified as “watch” due to credit deterioration, the Company believes that the sale was in accordance with the allowable provisions of ASC 320-10-25-6(a), and as such, does not “taint” the remainder of the held to maturity portfolio. A small gain was realized on the sale. The contractual maturity distribution of investment debt securities at March 31, 2018, is summarized as follows:
Mortgage-backed securities and collateralized mortgage obligations are collateralized by mortgage loans and guaranteed by U.S. government agencies. Our experience has indicated that principal payments will be collected sooner than scheduled because of prepayments. Therefore, these securities are not scheduled in the maturity categories indicated above. Proceeds from the sales of investment debt securities available for sale during the three months ended March 31, 2018 and March 31, 2017 were $0.5 million and zero, respectively. Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. Realized gains (losses) on investments, including impairment losses for the three months ended March 31, 2018 and 2017, were as follows:
The following tables present the net gains and losses on equity investments during the three months ended March 31, 2018, disaggregated into realized and unrealized gains and losses:
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Loans Receivable and the Allowance for Loan Losses |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Loans Receivable and the Allowance for Loan Losses The composition of allowance for loan losses and loans by portfolio segment and based on impairment method are as follows:
As of March 31, 2018, the gross purchased credit impaired loans included above were $20.5 million, with a discount of $1.5 million. Loans with unpaid principal in the amount of $487.7 million and $477.6 million at March 31, 2018 and December 31, 2017, respectively, were pledged to the Federal Home Loan Bank (the “FHLB”) as collateral for borrowings. The changes in the allowance for loan losses by portfolio segment were as follows:
Loan Portfolio Segment Risk Characteristics Agricultural - Agricultural loans, most of which are secured by crops, livestock, and machinery, are provided to finance capital improvements and farm operations as well as acquisitions of livestock and machinery. The ability of the borrower to repay may be affected by many factors outside of the borrower’s control including adverse weather conditions, loss of livestock due to disease or other factors, declines in market prices for agricultural products and the impact of government regulations. The ultimate repayment of agricultural loans is dependent upon the profitable operation or management of the agricultural entity. Collateral for these loans generally includes accounts receivable, inventory, equipment and real estate. However, depending on the overall financial condition of the borrower, some loans are made on an unsecured basis. The collateral securing these loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. Commercial and Industrial - Commercial and industrial loans are primarily made based on the reported cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The collateral support provided by the borrower for most of these loans and the probability of repayment are based on the liquidation of the pledged collateral and enforcement of a personal guarantee, if any exists. The primary repayment risks of commercial and industrial loans are that the cash flows of the borrower may be unpredictable, and the collateral securing these loans may fluctuate in value. The size of the loans the Company can offer to commercial customers is less than the size of the loans that competitors with larger lending limits can offer. This may limit the Company’s ability to establish relationships with the largest businesses in the areas in which the Company operates. As a result, the Company may assume greater lending risks than financial institutions that have a lesser concentration of such loans and tend to make loans to larger businesses. Collateral for these loans generally includes accounts receivable, inventory, equipment and real estate. However, depending on the overall financial condition of the borrower, some loans are made on an unsecured basis. The collateral securing these loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. In addition, a decline in the U.S. economy could harm or continue to harm the businesses of the Company’s commercial and industrial customers and reduce the value of the collateral securing these loans. Commercial Real Estate - The Company offers mortgage loans to commercial and agricultural customers for the acquisition of real estate used in their businesses, such as offices, warehouses and production facilities, and to real estate investors for the acquisition of apartment buildings, retail centers, office buildings and other commercial buildings. The market value of real estate securing commercial real estate loans can fluctuate significantly in a short period of time as a result of market conditions in the geographic area in which the real estate is located. Adverse developments affecting real estate values in one or more of the Company’s markets could increase the credit risk associated with its loan portfolio. Additionally, real estate lending typically involves higher loan principal amounts than other loans, and the repayment of the loans generally is dependent, in large part, on sufficient income from the properties securing the loans to cover operating expenses and debt service. Economic events or governmental regulations outside of the Company’s control or that of the borrower could negatively impact the future cash flow and market values of the affected properties. Residential Real Estate - The Company generally retains short-term residential mortgage loans that are originated for its own portfolio but sells most long-term loans to other parties while retaining servicing rights on the majority of those loans. The market value of real estate securing residential real estate loans can fluctuate as a result of market conditions in the geographic area in which the real estate is located. Adverse developments affecting real estate values in one or more of the Company’s markets could increase the credit risk associated with its loan portfolio. Additionally, real estate lending typically involves higher loan principal amounts than other loans, and the repayment of the loans generally is dependent, in large part, on the borrower’s continuing financial stability, and is therefore more likely to be affected by adverse personal circumstances. Consumer - Consumer loans typically have shorter terms, lower balances, higher yields and higher risks of default than real estate-related loans. Consumer loan collections are dependent on the borrower’s continuing financial stability, and are therefore more likely to be affected by adverse personal circumstances. Collateral for these loans generally includes automobiles, boats, recreational vehicles, mobile homes, and real estate. However, depending on the overall financial condition of the borrower, some loans are made on an unsecured basis. The collateral securing these loans may depreciate over time, may be difficult to recover and may fluctuate in value based on condition. In addition, a decline in the United States economy could result in reduced employment, impacting the ability of customers to repay their obligations. Purchased Loans Policy All purchased loans (nonimpaired and impaired) are initially measured at fair value as of the acquisition date in accordance with applicable authoritative accounting guidance. Credit discounts are included in the determination of fair value. An allowance for loan losses is not recorded at the acquisition date for loans purchased. Individual loans acquired through the completion of a transfer, including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are referred to herein as “purchased credit impaired loans.” In determining the acquisition date fair value and estimated credit losses of purchased credit impaired loans, and in subsequent accounting, the Company accounts for loans individually. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment or as a loss accrual or valuation allowance. Expected cash flows at the purchase date in excess of the fair value of loans, if any, are recorded as interest income over the expected life of the loans if the timing and amount of future cash flows are reasonably estimable. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording an allowance for loan losses and a provision for loan losses. If the Company does not have the information necessary to reasonably estimate cash flows to be expected, it may use the cost-recovery method or cash-basis method of income recognition. Charge-off Policy The Company requires a loan to be charged-off, in whole or in part, as soon as it becomes apparent that some loss will be incurred, or when its collectability is sufficiently questionable that it no longer is considered a bankable asset. The primary considerations when determining if and how much of a loan should be charged-off are as follows: (1) the potential for future cash flows; (2) the value of any collateral; and (3) the strength of any co-makers or guarantors. When it is determined that a loan requires a partial or full charge-off, a request for approval of a charge-off is submitted to the Company's President, Executive Vice President and Chief Credit Officer, and the Senior Regional Loan officer. The Bank's board of directors formally approves all loan charge-offs. Once a loan is charged-off, it cannot be restructured and returned to the Company's books. Allowance for Loan and Lease Losses The Company requires the maintenance of an adequate allowance for loan and lease losses (“ALLL”) in order to cover estimated probable losses without eroding the Company’s capital base. Calculations are done at each quarter end, or more frequently if warranted, to analyze the collectability of loans and to ensure the adequacy of the allowance. In line with FDIC directives, the ALLL calculation does not include consideration of loans held for sale or off-balance-sheet credit exposures (such as unfunded letters of credit). Determining the appropriate level for the ALLL relies on the informed judgment of management, and as such, is subject to inexactness. Given the inherently imprecise nature of calculating the necessary ALLL, the Company’s policy permits the actual ALLL to be between 20% above and 5% below the “indicated reserve.” Loans Reviewed Individually for Impairment The Company identifies loans to be reviewed and evaluated individually for impairment based on current information and events and the probability that the borrower will be unable to repay all amounts due according to the contractual terms of the loan agreement. Specific areas of consideration include: size of credit exposure, risk rating, delinquency, nonaccrual status, and loan classification. The level of individual impairment is measured using one of the following methods: (1) the fair value of the collateral less costs to sell; (2) the present value of expected future cash flows, discounted at the loan's effective interest rate; or (3) the loan's observable market price. Loans that are deemed fully collateralized or have been charged down to a level corresponding with any of the three measurements require no assignment of reserves from the ALLL. A loan modification is a change in an existing loan contract that has been agreed to by the borrower and the Bank, which may or may not be a troubled debt restructure or “TDR.” All loans deemed TDR are considered impaired. A loan is considered a TDR when, for economic or legal reasons related to a borrower’s financial difficulties, a concession is granted to the borrower that would not otherwise be considered. Both financial distress on the part of the borrower and the Bank’s granting of a concession, which are detailed further below, must be present in order for the loan to be considered a TDR. All of the following factors are indicators that the debtor is experiencing financial difficulties (one or more items may be present):
The following factors are potential indicators that a concession has been granted (one or multiple items may be present):
The following table sets forth information on the Company’s TDRs by class of loan occurring during the stated periods:
(1) TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. Loans by class modified as TDRs within 12 months of modification and for which there was a payment default during the stated periods were as follows:
(1) TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. Loans Reviewed Collectively for Impairment All loans not evaluated individually for impairment will be separated into homogeneous pools to be collectively evaluated. Loans will be first grouped into the various loan types (i.e. commercial, agricultural, consumer, etc.) and further segmented within each subset by risk classification (i.e. pass, special mention/watch, and substandard). Homogeneous loans past due 60-89 days and 90 days or more are classified special mention/watch and substandard, respectively, for allocation purposes. The Company’s historical loss experience for each group segmented by loan type is calculated for the prior 20 quarters as a starting point for estimating losses. In addition, other prevailing qualitative or environmental factors likely to cause probable losses to vary from historical data are incorporated in the form of adjustments to increase or decrease the loss rate applied to each group. These adjustments are documented and fully explain how the current information, events, circumstances, and conditions impact the historical loss measurement assumptions. Although not a comprehensive list, the following are considered key factors and are evaluated with each calculation of the ALLL to determine if adjustments to historical loss rates are warranted:
The Company may also consider other qualitative factors for additional allowance allocations, including changes in the Company’s loan review process. Changes in the criteria used in this evaluation or the availability of new information could cause the allowance to be increased or decreased in future periods. In addition, bank regulatory agencies, as part of their examination process, may require adjustments to the allowance for loan losses based on their judgments and estimates. The items listed above are used to determine the pass percentage for loans evaluated under ASC 450, and as such, are applied to the loans risk rated pass. Due to the inherent risks associated with special mention/watch risk-rated loans (i.e. early stages of financial deterioration, technical exceptions, etc.), this subset is reserved at a level that will cover losses above a pass allocation for loans that had a loss in the last 20 quarters in which the loan was risk-rated special mention/watch at the time of the loss. Substandard loans carry greater risk than special mention/watch loans, and as such, this subset is reserved at a level that will cover losses above a pass allocation for loans that had a loss in the last 20 quarters in which the loan was risk-rated substandard at the time of the loss. Ongoing analysis is performed to support these factor multiples. The following tables set forth the risk category of loans by class of loans and credit quality indicator based on the most recent analysis performed, as of March 31, 2018 and December 31, 2017:
Included within the special mention/watch, substandard, and doubtful categories at March 31, 2018 and December 31, 2017 are purchased credit impaired loans totaling $12.0 million and $12.6 million, respectively. Below are descriptions of the risk classifications of our loan portfolio. Special Mention/Watch - A special mention/watch asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention/watch assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard - Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. The following table presents loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, as of March 31, 2018 and December 31, 2017:
The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, during the stated periods:
The following table presents the contractual aging of the recorded investment in past due loans by class of loans at March 31, 2018 and December 31, 2017:
Non-accrual and Delinquent Loans Loans are placed on non-accrual when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 days or more (unless the loan is both well secured with marketable collateral and in the process of collection). All loans rated doubtful or worse, and certain loans rated substandard, are placed on non-accrual. A non-accrual asset may be restored to an accrual status when (1) all past due principal and interest has been paid (excluding renewals and modifications that involve the capitalizing of interest) or (2) the loan becomes well secured with marketable collateral and is in the process of collection. An established track record of performance is also considered when determining accrual status. Delinquency status of a loan is determined by the number of days that have elapsed past the loan’s payment due date, using the following classification groupings: 30-59 days, 60-89 days and 90 days or more. Once a TDR has gone 90 days or more past due or is placed on nonaccrual status, it is included in the 90 days or more past due or nonaccrual totals. The following table sets forth the composition of the Company’s recorded investment in loans on nonaccrual status and past due 90 days or more and still accruing by class of loans, excluding purchased credit impaired loans, as of March 31, 2018 and December 31, 2017:
Not included in the loans above as of March 31, 2018 and December 31, 2017 were purchased credit impaired loans with an outstanding balance of $0.5 million and $0.7 million, net of a discount of zero and $0.1 million, respectively. As of March 31, 2018, the Company had no commitments to lend additional funds to any borrowers who have had a TDR. Purchased Loans Purchased loans acquired in a business combination are recorded and initially measured at their estimated fair value as of the acquisition date. Credit discounts are included in the determination of fair value. An allowance for loan losses is not carried over. These purchased loans are segregated into two types: purchased credit impaired loans and purchased non-credit impaired loans.
For purchased non-credit impaired loans the accretable discount is the discount applied to the expected cash flows of the portfolio to account for the differences between the interest rates at acquisition and rates currently expected on similar portfolios in the marketplace. As the accretable discount is accreted to interest income over the expected average life of the portfolio, the result will be interest income on loans at the estimated current market rate. We record a provision for the acquired portfolio as the loans acquired in the Central Bancshares, Inc. (“Central”) merger renew and the discount is accreted. For purchased credit impaired loans the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the expected remaining life of the loan if the timing and amount of the future cash flows are reasonably estimable. This discount includes an adjustment on loans that are not accruing or paying contractual interest so that interest income will be recognized at the estimated current market rate. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording an allowance for credit losses and a provision for loan losses. Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the three months ended March 31, 2018 and 2017:
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Derivative and Hedging Activities (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives and Hedging Activities FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company does not use derivatives for trading or speculative purposes. In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loans and borrowings. The Company is exposed to changes in the fair value of certain of its fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate, LIBOR. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. As of March 31, 2018, the Company had the following outstanding interest rate derivatives that were used to hedge changes in fair value attributable to interest rate risk:
As of March 31, 2018, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of March 31, 2018 and December 31, 2017:
The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three months ended March 31, 2018 and March 31, 2017:
The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2018 and December 31, 2017. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Balance Sheet.
Credit-risk-related Contingent Features The Company has an unsecured federal funds line with its derivative counterparty.The Company has an agreement with its derivative counterparty that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has an agreement with its derivative counterparty that contains a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of March 31, 2018, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0.2 million. If the Company had breached any of these provisions at March 31, 2018, it could have been required to settle its obligations under the agreements at their termination value of $0.2 million. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets The excess of the cost of an acquisition over the fair value of the net assets acquired, including core deposit, trade name, and client relationship intangibles, consists of goodwill. Under ASC Topic 350, goodwill and the non-amortizing portion of the trade name intangible are subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill and the non-amortizing portion of the trade name intangible at the reporting unit level to determine potential impairment annually on October 1, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable, by comparing the carrying value of the reporting unit with the fair value of the reporting unit. No impairment was recorded on either the goodwill or the trade name intangible assets during the three months ended March 31, 2018. The carrying amount of goodwill was $64.7 million at March 31, 2018, the same as at December 31, 2017. The following table presents the changes in the carrying amount of intangibles (excluding goodwill), gross carrying amount, accumulated amortization, and net book value as of and for the three months ended March 31, 2018:
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Other Assets |
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Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets Disclosure [Text Block] | Other Assets The components of the Company’s other assets were as follows:
The Bank is a member of the FHLB of Des Moines, and ownership of FHLB stock is a requirement for such membership. The amount of FHLB stock the Bank is required to hold is directly related to the amount of FHLB advances borrowed. Because this security is not readily marketable and there are no available market values, this security is carried at cost and evaluated for potential impairment each quarter. Redemption of this investment is at the option of the FHLB. No impairment was recorded on FHLB stock in the three months ended March 31, 2018 or in the year ended December 31, 2017. As part of the Central merger, the Company became a party to certain loss-share agreements with the FDIC from previous Central-related acquisitions. These agreements cover realized losses on loans and foreclosed real estate for specified periods. These loss-share assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition dates were estimated based on projected cash flows available for loss-share based on the credit adjustments estimated for each loan. The loss-share assets are recorded within other assets on the balance sheet. On July 14, 2017, the Bank, entered into an agreement with the FDIC that terminated all of the Bank's loss sharing agreements related to the former Central Bank. Mortgage servicing rights are recorded at fair value based on assumptions provided by a third-party valuation service. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the servicing cost per loan, the discount rate, the escrow float rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. |
Short-Term Borrowings |
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Short-term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Text Block] | Short-Term Borrowings Short-term borrowings were as follows as of March 31, 2018 and December 31, 2017:
At March 31, 2018 and December 31, 2017, the Company had no borrowings through the Federal Reserve Discount Window, while the borrowing capacity was $11.5 million as of March 31, 2018 and December 31, 2017. As of March 31, 2018 and December 31, 2017, the Bank had municipal securities pledged with a market value of $12.7 million and $12.8 million, respectively, to the Federal Reserve to secure potential borrowings. The Company also has various other unsecured federal funds agreements with correspondent banks. As of March 31, 2018 and December 31, 2017, there were $25.6 million and $1.0 million of borrowings through these correspondent bank federal funds agreements, respectively. Securities sold under agreements to repurchase are agreements in which the Company acquires funds by selling assets to another party under a simultaneous agreement to repurchase the same assets at a specified price and date. The Company enters into repurchase agreements and also offers a demand deposit account product to customers that sweeps their balances in excess of an agreed upon target amount into overnight repurchase agreements. All securities sold under agreements to repurchase are recorded on the face of the balance sheet. On April 30, 2015, the Company entered into a $5.0 million unsecured line of credit with a correspondent bank. Interest is payable at a rate of one-month LIBOR plus 2.00%. The line was renewed in May 2017, and matured on April 28, 2018. It is expected to be renewed. The Company had no balance outstanding under this agreement as of March 31, 2018. |
Subordinated Notes Payable |
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Junior Subordinated Notes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Borrowings Disclosure [Text Block] | Subordinated Notes Payable The Company has established three statutory business trusts under the laws of the state of Delaware: Central Bancshares Capital Trust II, Barron Investment Capital Trust I, and MidWestOne Statutory Trust II. The trusts exist for the exclusive purposes of (i) issuing trust securities representing undivided beneficial interests in the assets of the respective trust; (ii) investing the gross proceeds of the trust securities in junior subordinated deferrable interest debentures (junior subordinated notes); and (iii) engaging in only those activities necessary or incidental thereto. For regulatory capital purposes, these trust securities qualify as a component of Tier 1 capital. The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of March 31, 2018 and December 31, 2017:
(1) All distributions are cumulative and paid in cash quarterly. (2) Central Bancshares Capital Trust II and Barron Investment Capital Trust I were established by Central prior to the Company’s merger with Central, and the junior subordinated notes issued by Central were assumed by the Company. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at the stated maturity date or upon redemption of the junior subordinated notes. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligation under the junior subordinated notes and other relevant trust agreements, in aggregate, constitutes a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the junior subordinated notes and, therefore, distributions on the trust preferred securities, for up to five years, but not beyond the stated maturity date in the table above. During any such deferral period the Company may not pay cash dividends on its stock and generally may not repurchase its stock. |
Long-Term Borrowings |
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Long-term Debt, by Type, Current and Noncurrent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt [Text Block] | Long-Term Borrowings Long-term borrowings were as follows as of March 31, 2018 and December 31, 2017:
The Company utilizes FHLB borrowings as a supplement to customer deposits to fund interest-earning assets and to assist in managing interest rate risk. As a member of the Federal Home Loan Bank of Des Moines, the Bank may borrow funds from the FHLB in amounts up to 35% of the Bank’s total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. Advances from the FHLB are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 4 “Loans Receivable and the Allowance for Loan Losses” of the notes to the consolidated financial statements. On April 30, 2015, the Company entered into a $35.0 million unsecured note payable with a correspondent bank with a maturity date of June 30, 2020. The Company drew $25.0 million on the note prior to June 30, 2015, at which time the ability to obtain additional advances ceased. Payments of principal and interest are payable quarterly, which began on September 30, 2015. As of March 31, 2018, $11.3 million of that note was outstanding. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] | Income Taxes The income tax provisions for the three months ended March 31, 2018 and 2017 were less than the amounts computed by applying the maximum effective federal income tax rate of 21% and 35%, respectively, to the income before income taxes, because of the following items:
In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), which provides guidance regarding how a company is to reflect provisional amounts when necessary information is not yet available, prepared or analyzed sufficiently to complete its accounting for the effect of the changes in the Tax Cuts and Jobs Act (the “Tax Act”). During the first quarter of 2018, the income tax expense recorded during the fourth quarter of 2017 was determined to be final. |
Earnings per Share |
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Earnings Per Share Disclosure [Text Block] | Earnings per Share Basic per-share amounts are computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator). Diluted per-share amounts assume issuance of all common stock issuable upon conversion or exercise of other securities, unless the effect is to reduce the loss or increase the income per common share from continuing operations. The following table presents the computation of earnings per common share for the respective periods:
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Estimated Fair Value of Financial Instruments and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: 1) an unrelated party; 2) knowledgeable (having a reasonable understanding about the asset or liability and the transaction based on all available information; including information that might be obtained through due diligence efforts that are usual or customary); 3) able to transact; and 4) willing to transact (motivated but not forced or otherwise compelled to do so). The FASB states “valuation techniques that are appropriate in the circumstances and for which sufficient data are available shall be used to measure fair value.” The valuation techniques for measuring fair value are consistent with the three traditional approaches to value: the market approach, the income approach, and the cost or asset approach. In applying valuation techniques, the use of relevant inputs (both observable and unobservable) based on the facts and circumstances must be used. The FASB has defined a fair value hierarchy for these inputs which prioritizes the inputs into three broad levels:
Unobservable inputs should be used only to the extent that relevant observable inputs are not available; this allows for situations where there is little, if any, market activity for the asset or liability at the measurement date. Unobservable inputs should reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. The Company is required to use observable inputs, to the extent available, in the fair value estimation process unless that data results from forced liquidations or distressed sales. The Company used the following methods and significant assumptions to estimate fair value: Investment Securities - The fair value for investment securities are determined by quoted market prices, if available (Level 1). The Company utilizes an independent pricing service to obtain the fair value of debt securities. On a quarterly basis, the Company selects a sample of 30 securities from its primary pricing service and compares them to a secondary independent pricing service to validate value. In addition, the Company periodically reviews the pricing methodology utilized by the primary independent service for reasonableness. Debt securities issued by the U.S. Treasury and other U.S. Government agencies and corporations, mortgage-backed securities, and collateralized mortgage obligations are priced utilizing industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace (Level 2). Municipal securities are valued using a type of matrix, or grid, pricing in which securities are benchmarked against the treasury rate based on credit rating (Level 2). On an annual basis, a group of selected municipal securities have their credit rating evaluated by a securities dealer and that information is used to verify the primary independent service’s rating and pricing. Loans Held for Sale - Loans held for sale are carried at the lower of cost or fair value, with fair value being based on binding contracts from third party investors (Level 2). The portfolio has historically consisted primarily of residential real estate loans. Loans, Net - The estimated fair value of loans, net, was performed using the income approach, with the market approach used for certain nonperforming loans, resulting in a Level 3 fair value classification. The application of the income approach establishes value by methods that discount or capitalize earnings and/or cash flow, by a discount or capitalization rate that reflects market rate of return expectations, market conditions, and the relative risk of the investment. Generally, this can be accomplished by the discounted cash flow method. For loans that exhibited some characteristics of performance and where it appears that the borrower may have adequate cash flows to service the loan, a discounted cash flow analysis was used. The discounted cash flow analysis was based on the contractual maturity of the loan and market indications of rates, prepayment speeds, defaults and credit risk. For loans with balloon or interest only payment structures, the repayment was extended by assuming a renewal period beyond the current contractual maturity date. For loans analyzed using the asset approach, the fair value was determined based on the estimated values of the underlying collateral. For impaired loans, the estimated net sales proceeds was used to determine the fair value of the loans when deemed appropriate. The implied sales proceeds value provides a better indication of value than the income stream as these loans are not performing or exhibit strong signs indicative of nonperformance. Collateral Dependent Impaired Loans - From time to time, a loan is considered impaired and an allowance for credit losses is established. The specific reserves for collateral dependent impaired loans are based on the fair value of the collateral less estimated costs to sell, based on appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans, and resulted in a Level 3 classification for inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. Other Real Estate Owned (“OREO”) - OREO represents property acquired through foreclosures and settlements of loans. Property acquired through or in lieu of foreclosure are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and the collateral underlying such loans, resulting in a Level 3 classification for inputs for determining fair value. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral dependent impaired loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Special Assets Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Interest Rate Swaps and Loans - Interest rate swaps are valued by the Company's Swap Dealers using cash flow valuation techniques with observable market data inputs. The fair value of loans accounted for under the fair value option represents the net carrying value of the loan, plus the equal and opposite amount of the value of the swap needed to hedge the interest rate risk and an adjustment for credit risk based on our assessment of existing market conditions for the specific portfolio of loans. This is used due to the strict prepayment penalties put in the loan terms to cover the cost of exiting the hedge of the loans in the case of early prepayment or termination. The adjustment for credit risk on loans accounted for under the fair value option is not significant to the overall fair value of the loans. The fair values estimated by the Company's Swap Dealers use interest rates that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. The Company has entered into Collateral Agreements with its Swap Dealers which entitle it to receive collateral to cover market values on derivatives which are in asset position, thus a credit risk adjustment on interest rate swaps is not warranted. The Company regularly enters into interest rate lock commitments on mortgage loans to be held for sale with corresponding forward sales contracts related to these interest rate lock commitments, the fair values of which are calculated by applying observable market values from Fannie Mae TBA pricing to each interest rate lock commitment and forward sales contract, therefore, are classified within Level 2 of the valuation hierarchy. The following table summarizes assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017. The assets and liabilities are segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value:
There were no transfers of assets between Level 3 of the fair value hierarchy during the three months ended March 31, 2018 or the year ended December 31, 2017. Changes in the fair value of available for sale debt securities are included in other comprehensive income, and changes in the fair value of equity securities are included in noninterest income. The following table discloses the Company’s estimated fair value amounts of its assets recorded at fair value on a nonrecurring basis. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of March 31, 2018 and December 31, 2017, as more fully described above.
The following presents the valuation technique(s), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company at March 31, 2018, categorized within Level 3 of the fair value hierarchy:
* Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered include age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing a range would not be meaningful. Due to the adoption of ASU 2016-01 as of January 1, 2018, the estimated fair value amounts shown for December 31, 2017 are not comparable to those for March 31, 2018, due to a change in the required methodology (“exit price” only) for determining current estimated fair value. The carrying amount and estimated fair value of financial instruments not carried at fair value, at March 31, 2018 and December 31, 2017 are as follows:
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Revenue Recognition (Notes) |
3 Months Ended |
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Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 2. “Effect of New Financial Accounting Standards,” the implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust and asset management fees, service charges on deposit accounts, sales of other real estate, and debit card interchange fees. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Trust and Asset Management Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, Exchange, and Other Service Charges Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Gains/Losses on Sales of OREO Gain or loss from the sale of OREO occurs when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. OREO sales for the three months ended March 31, 2018 and March 31, 2017 were not financed by the Bank. Other Other noninterest income consists of other recurring revenue streams such as safe deposit box rental fees, and other miscellaneous revenue streams. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2018 and December 31, 2017, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Operating Segments |
3 Months Ended |
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Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Operating Segments The Company’s activities are considered to be a single industry segment for financial reporting purposes. The Company is engaged in the business of commercial and retail banking, investment management and insurance services with operations throughout central and eastern Iowa, the Twin Cities area of Minnesota and Wisconsin, Florida, and Denver, Colorado. Substantially all income is derived from a diverse base of commercial, mortgage and retail lending activities, and investments. |
Subsequent Events |
3 Months Ended |
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Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Management evaluated subsequent events through the date the consolidated financial statements were issued. Events or transactions occurring after March 31, 2018, but prior to the date the consolidated financial statements were issued, that provided additional evidence about conditions that existed at March 31, 2018 have been recognized in the consolidated financial statements for the three months ended March 31, 2018. Events or transactions that provided evidence about conditions that did not exist at March 31, 2018, but arose before the consolidated financial statements were issued, have not been recognized in the consolidated financial statements for the three months ended March 31, 2018. On April 19, 2018, the board of directors of the Company declared a cash dividend of $0.195 per share payable on June 15, 2018 to shareholders of record as of the close of business on June 1, 2018. |
Significant Accounting Policies (Policies) |
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Certain Loans and Debt Securities Acquired in Transfer, Recognizing Interest Income on Impaired Loans, Policy [Policy Text Block] | Purchased Loans Policy All purchased loans (nonimpaired and impaired) are initially measured at fair value as of the acquisition date in accordance with applicable authoritative accounting guidance. Credit discounts are included in the determination of fair value. An allowance for loan losses is not recorded at the acquisition date for loans purchased. Individual loans acquired through the completion of a transfer, including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are referred to herein as “purchased credit impaired loans.” In determining the acquisition date fair value and estimated credit losses of purchased credit impaired loans, and in subsequent accounting, the Company accounts for loans individually. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment or as a loss accrual or valuation allowance. Expected cash flows at the purchase date in excess of the fair value of loans, if any, are recorded as interest income over the expected life of the loans if the timing and amount of future cash flows are reasonably estimable. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording an allowance for loan losses and a provision for loan losses. If the Company does not have the information necessary to reasonably estimate cash flows to be expected, it may use the cost-recovery method or cash-basis method of income recognition. |
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Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts [Policy Text Block] | Charge-off Policy The Company requires a loan to be charged-off, in whole or in part, as soon as it becomes apparent that some loss will be incurred, or when its collectability is sufficiently questionable that it no longer is considered a bankable asset. The primary considerations when determining if and how much of a loan should be charged-off are as follows: (1) the potential for future cash flows; (2) the value of any collateral; and (3) the strength of any co-makers or guarantors. When it is determined that a loan requires a partial or full charge-off, a request for approval of a charge-off is submitted to the Company's President, Executive Vice President and Chief Credit Officer, and the Senior Regional Loan officer. The Bank's board of directors formally approves all loan charge-offs. Once a loan is charged-off, it cannot be restructured and returned to the Company's books. |
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Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan and Lease Losses The Company requires the maintenance of an adequate allowance for loan and lease losses (“ALLL”) in order to cover estimated probable losses without eroding the Company’s capital base. Calculations are done at each quarter end, or more frequently if warranted, to analyze the collectability of loans and to ensure the adequacy of the allowance. In line with FDIC directives, the ALLL calculation does not include consideration of loans held for sale or off-balance-sheet credit exposures (such as unfunded letters of credit). Determining the appropriate level for the ALLL relies on the informed judgment of management, and as such, is subject to inexactness. Given the inherently imprecise nature of calculating the necessary ALLL, the Company’s policy permits the actual ALLL to be between 20% above and 5% below the “indicated reserve.” |
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Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block] | Loans Reviewed Individually for Impairment The Company identifies loans to be reviewed and evaluated individually for impairment based on current information and events and the probability that the borrower will be unable to repay all amounts due according to the contractual terms of the loan agreement. Specific areas of consideration include: size of credit exposure, risk rating, delinquency, nonaccrual status, and loan classification. The level of individual impairment is measured using one of the following methods: (1) the fair value of the collateral less costs to sell; (2) the present value of expected future cash flows, discounted at the loan's effective interest rate; or (3) the loan's observable market price. Loans that are deemed fully collateralized or have been charged down to a level corresponding with any of the three measurements require no assignment of reserves from the ALLL. A loan modification is a change in an existing loan contract that has been agreed to by the borrower and the Bank, which may or may not be a troubled debt restructure or “TDR.” All loans deemed TDR are considered impaired. A loan is considered a TDR when, for economic or legal reasons related to a borrower’s financial difficulties, a concession is granted to the borrower that would not otherwise be considered. Both financial distress on the part of the borrower and the Bank’s granting of a concession, which are detailed further below, must be present in order for the loan to be considered a TDR. All of the following factors are indicators that the debtor is experiencing financial difficulties (one or more items may be present):
The following factors are potential indicators that a concession has been granted (one or multiple items may be present):
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Loans and Leases Receivable, Past Due Status, Policy [Policy Text Block] | Non-accrual and Delinquent Loans Loans are placed on non-accrual when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 days or more (unless the loan is both well secured with marketable collateral and in the process of collection). All loans rated doubtful or worse, and certain loans rated substandard, are placed on non-accrual. A non-accrual asset may be restored to an accrual status when (1) all past due principal and interest has been paid (excluding renewals and modifications that involve the capitalizing of interest) or (2) the loan becomes well secured with marketable collateral and is in the process of collection. An established track record of performance is also considered when determining accrual status. Delinquency status of a loan is determined by the number of days that have elapsed past the loan’s payment due date, using the following classification groupings: 30-59 days, 60-89 days and 90 days or more. Once a TDR has gone 90 days or more past due or is placed on nonaccrual status, it is included in the 90 days or more past due or nonaccrual totals. |
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Derivatives, Policy [Policy Text Block] | FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company does not use derivatives for trading or speculative purposes. In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. |
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Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: 1) an unrelated party; 2) knowledgeable (having a reasonable understanding about the asset or liability and the transaction based on all available information; including information that might be obtained through due diligence efforts that are usual or customary); 3) able to transact; and 4) willing to transact (motivated but not forced or otherwise compelled to do so). The FASB states “valuation techniques that are appropriate in the circumstances and for which sufficient data are available shall be used to measure fair value.” The valuation techniques for measuring fair value are consistent with the three traditional approaches to value: the market approach, the income approach, and the cost or asset approach. In applying valuation techniques, the use of relevant inputs (both observable and unobservable) based on the facts and circumstances must be used. The FASB has defined a fair value hierarchy for these inputs which prioritizes the inputs into three broad levels:
Unobservable inputs should be used only to the extent that relevant observable inputs are not available; this allows for situations where there is little, if any, market activity for the asset or liability at the measurement date. Unobservable inputs should reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. The Company is required to use observable inputs, to the extent available, in the fair value estimation process unless that data results from forced liquidations or distressed sales. |
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Fair Value Measurement, Policy [Policy Text Block] | The Company used the following methods and significant assumptions to estimate fair value: Investment Securities - The fair value for investment securities are determined by quoted market prices, if available (Level 1). The Company utilizes an independent pricing service to obtain the fair value of debt securities. On a quarterly basis, the Company selects a sample of 30 securities from its primary pricing service and compares them to a secondary independent pricing service to validate value. In addition, the Company periodically reviews the pricing methodology utilized by the primary independent service for reasonableness. Debt securities issued by the U.S. Treasury and other U.S. Government agencies and corporations, mortgage-backed securities, and collateralized mortgage obligations are priced utilizing industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace (Level 2). Municipal securities are valued using a type of matrix, or grid, pricing in which securities are benchmarked against the treasury rate based on credit rating (Level 2). On an annual basis, a group of selected municipal securities have their credit rating evaluated by a securities dealer and that information is used to verify the primary independent service’s rating and pricing. Loans Held for Sale - Loans held for sale are carried at the lower of cost or fair value, with fair value being based on binding contracts from third party investors (Level 2). The portfolio has historically consisted primarily of residential real estate loans. Loans, Net - The estimated fair value of loans, net, was performed using the income approach, with the market approach used for certain nonperforming loans, resulting in a Level 3 fair value classification. The application of the income approach establishes value by methods that discount or capitalize earnings and/or cash flow, by a discount or capitalization rate that reflects market rate of return expectations, market conditions, and the relative risk of the investment. Generally, this can be accomplished by the discounted cash flow method. For loans that exhibited some characteristics of performance and where it appears that the borrower may have adequate cash flows to service the loan, a discounted cash flow analysis was used. The discounted cash flow analysis was based on the contractual maturity of the loan and market indications of rates, prepayment speeds, defaults and credit risk. For loans with balloon or interest only payment structures, the repayment was extended by assuming a renewal period beyond the current contractual maturity date. For loans analyzed using the asset approach, the fair value was determined based on the estimated values of the underlying collateral. For impaired loans, the estimated net sales proceeds was used to determine the fair value of the loans when deemed appropriate. The implied sales proceeds value provides a better indication of value than the income stream as these loans are not performing or exhibit strong signs indicative of nonperformance. Collateral Dependent Impaired Loans - From time to time, a loan is considered impaired and an allowance for credit losses is established. The specific reserves for collateral dependent impaired loans are based on the fair value of the collateral less estimated costs to sell, based on appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans, and resulted in a Level 3 classification for inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. Other Real Estate Owned (“OREO”) - OREO represents property acquired through foreclosures and settlements of loans. Property acquired through or in lieu of foreclosure are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and the collateral underlying such loans, resulting in a Level 3 classification for inputs for determining fair value. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral dependent impaired loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Special Assets Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Interest Rate Swaps and Loans - Interest rate swaps are valued by the Company's Swap Dealers using cash flow valuation techniques with observable market data inputs. The fair value of loans accounted for under the fair value option represents the net carrying value of the loan, plus the equal and opposite amount of the value of the swap needed to hedge the interest rate risk and an adjustment for credit risk based on our assessment of existing market conditions for the specific portfolio of loans. This is used due to the strict prepayment penalties put in the loan terms to cover the cost of exiting the hedge of the loans in the case of early prepayment or termination. The adjustment for credit risk on loans accounted for under the fair value option is not significant to the overall fair value of the loans. The fair values estimated by the Company's Swap Dealers use interest rates that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. The Company has entered into Collateral Agreements with its Swap Dealers which entitle it to receive collateral to cover market values on derivatives which are in asset position, thus a credit risk adjustment on interest rate swaps is not warranted. The Company regularly enters into interest rate lock commitments on mortgage loans to be held for sale with corresponding forward sales contracts related to these interest rate lock commitments, the fair values of which are calculated by applying observable market values from Fannie Mae TBA pricing to each interest rate lock commitment and forward sales contract, therefore, are classified within Level 2 of the valuation hierarchy. |
Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The amortized cost and fair value of investment securities available for sale, with gross unrealized gains and losses, are as follows:
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Held-to-maturity Securities [Table Text Block] | The amortized cost and fair value of investment debt securities held to maturity, with gross unrealized gains and losses, are as follows:
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Schedule of Temporary Impairment Losses, Investments [Table Text Block] | The following tables present information pertaining to securities with gross unrealized losses as of March 31, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position:
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Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturity distribution of investment debt securities at March 31, 2018, is summarized as follows:
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Realized Gain (Loss) on Investments [Table Text Block] | Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. Realized gains (losses) on investments, including impairment losses for the three months ended March 31, 2018 and 2017, were as follows:
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Trading Securities [Table Text Block] | The following tables present the net gains and losses on equity investments during the three months ended March 31, 2018, disaggregated into realized and unrealized gains and losses:
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Loans Receivable and the Allowance for Loan Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The composition of allowance for loan losses and loans by portfolio segment and based on impairment method are as follows:
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Allowance for Credit Losses on Financing Receivables [Table Text Block] | The changes in the allowance for loan losses by portfolio segment were as follows:
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Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following table sets forth information on the Company’s TDRs by class of loan occurring during the stated periods:
(1) TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. Loans by class modified as TDRs within 12 months of modification and for which there was a payment default during the stated periods were as follows:
(1) TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. |
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Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables set forth the risk category of loans by class of loans and credit quality indicator based on the most recent analysis performed, as of March 31, 2018 and December 31, 2017:
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Impaired Financing Receivables [Table Text Block] | The following table presents loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, as of March 31, 2018 and December 31, 2017:
The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, during the stated periods:
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Past Due Financing Receivables [Table Text Block] | The following table presents the contractual aging of the recorded investment in past due loans by class of loans at March 31, 2018 and December 31, 2017:
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Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | The following table sets forth the composition of the Company’s recorded investment in loans on nonaccrual status and past due 90 days or more and still accruing by class of loans, excluding purchased credit impaired loans, as of March 31, 2018 and December 31, 2017:
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Schedule of Changes in Accretable Yield for Purchased Credit Impaired Loans [Table Text Block] | Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the three months ended March 31, 2018 and 2017:
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Derivative and Hedging Activities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | As of March 31, 2018, the Company had the following outstanding interest rate derivatives that were used to hedge changes in fair value attributable to interest rate risk:
As of March 31, 2018, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of March 31, 2018 and December 31, 2017:
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Derivative Instruments, Gain (Loss) [Table Text Block] | The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three months ended March 31, 2018 and March 31, 2017:
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Offsetting Liabilities [Table Text Block] | The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2018 and December 31, 2017. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Balance Sheet.
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Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table presents the changes in the carrying amount of intangibles (excluding goodwill), gross carrying amount, accumulated amortization, and net book value as of and for the three months ended March 31, 2018:
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Other Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets [Table Text Block] | The components of the Company’s other assets were as follows:
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Short-Term Borrowings (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings were as follows as of March 31, 2018 and December 31, 2017:
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Subordinated Notes Payable (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Subordinated Borrowing [Table Text Block] | The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of March 31, 2018 and December 31, 2017:
(1) All distributions are cumulative and paid in cash quarterly. (2) Central Bancshares Capital Trust II and Barron Investment Capital Trust I were established by Central prior to the Company’s merger with Central, and the junior subordinated notes issued by Central were assumed by the Company. |
Long-Term Borrowings (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Type, Current and Noncurrent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term borrowings were as follows as of March 31, 2018 and December 31, 2017:
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income tax provisions for the three months ended March 31, 2018 and 2017 were less than the amounts computed by applying the maximum effective federal income tax rate of 21% and 35%, respectively, to the income before income taxes, because of the following items:
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Earnings per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | The following table presents the computation of earnings per common share for the respective periods:
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Estimated Fair Value of Financial Instruments and Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017. The assets and liabilities are segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value:
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | The following table discloses the Company’s estimated fair value amounts of its assets recorded at fair value on a nonrecurring basis. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of March 31, 2018 and December 31, 2017, as more fully described above.
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Fair Value, by Balance Sheet Grouping [Table Text Block] | Due to the adoption of ASU 2016-01 as of January 1, 2018, the estimated fair value amounts shown for December 31, 2017 are not comparable to those for March 31, 2018, due to a change in the required methodology (“exit price” only) for determining current estimated fair value. The carrying amount and estimated fair value of financial instruments not carried at fair value, at March 31, 2018 and December 31, 2017 are as follows:
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Table Text Block] | The following presents the valuation technique(s), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company at March 31, 2018, categorized within Level 3 of the fair value hierarchy:
* Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered include age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing a range would not be meaningful. |
Investment Securities Realized Gains and Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Held-to-maturity Securities [Abstract] | ||
Gross realized gains | $ 0 | $ 43 |
Marketable Securities, Equity Securities [Abstract] | ||
Equity Securities, FV-NI, Realized Gain (Loss) | (24) | |
Gain (Loss) on Sale of Equity Investments | 0 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | (24) | |
Debt securities | ||
Available-for-sale Securities [Abstract] | ||
Gross realized gains | 9 | 0 |
Gross realized losses | 0 | 0 |
Other than Temporary Impairment | 0 | 0 |
Available for sale securities, gross realized gain (loss) | 9 | |
Held-to-maturity Securities [Abstract] | ||
Gross realized gains | $ 0 | $ 43 |
Loans Receivable and the Allowance for Loan Losses New Troubled Debt Restructurings During Past Twelve Months That Defaulted During the Period (Details) $ in Thousands |
3 Months Ended | ||||
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Mar. 31, 2018
USD ($)
count
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Mar. 31, 2017
USD ($)
count
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Financing Receivable, Modifications | |||||
Financing receivable, modifications, subsequent default, number of contracts | count | 1 | 3 | |||
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 2,657 | $ 954 | |||
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | Extended Maturity | |||||
Financing Receivable, Modifications | |||||
Financing receivable, modifications, subsequent default, number of contracts | count | [1] | 3 | |||
Financing receivable, modifications, subsequent default, recorded investment | $ | [1] | $ 954 | |||
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | Extended Maturity | |||||
Financing Receivable, Modifications | |||||
Financing receivable, modifications, subsequent default, number of contracts | count | [1] | 1 | |||
Financing receivable, modifications, subsequent default, recorded investment | $ | [1] | $ 2,657 | |||
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Loans Receivable and the Allowance for Loan Losses Loans by Internally Assigned Credit Quality Indicators (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment | ||
Loans receivable, net | $ 2,326,158 | $ 2,286,695 |
Purchased credit-impaired loans, internally classified as other than pass | 12,000 | 12,600 |
Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,159,958 | 2,127,454 |
Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 97,921 | 96,842 |
Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 68,243 | 62,362 |
Internally Assigned Grade Doubtful | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 36 | 37 |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 111,975 | 105,512 |
Agricultural Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 80,471 | 80,377 |
Agricultural Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 19,883 | 21,989 |
Agricultural Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 11,621 | 3,146 |
Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 513,778 | 503,624 |
Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 465,235 | 453,363 |
Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 30,574 | 23,153 |
Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 17,963 | 27,102 |
Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Doubtful | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 6 | 6 |
Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 194,712 | 165,276 |
Commercial Real Estate Construction and Development Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 192,384 | 162,968 |
Commercial Real Estate Construction and Development Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,054 | 1,061 |
Commercial Real Estate Construction and Development Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,274 | 1,247 |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 87,030 | 87,868 |
Farmland Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 71,590 | 76,740 |
Farmland Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 8,216 | 10,357 |
Farmland Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 7,224 | 771 |
Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 126,802 | 134,506 |
Multifamily Real Estate Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 124,203 | 131,507 |
Multifamily Real Estate Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,417 | 2,498 |
Multifamily Real Estate Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,182 | 501 |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 789,902 | 784,321 |
Commercial Real Estate Loan Other Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 737,765 | 731,231 |
Commercial Real Estate Loan Other Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 33,505 | 34,056 |
Commercial Real Estate Loan Other Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 18,632 | 19,034 |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 349,742 | 352,226 |
Residential Real Estate First Lien Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 338,419 | 340,446 |
Residential Real Estate First Lien Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,495 | 2,776 |
Residential Real Estate First Lien Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 8,828 | 9,004 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 116,187 | 117,204 |
Residential Real Estate Junior Lien Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 114,074 | 114,763 |
Residential Real Estate Junior Lien Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 641 | 952 |
Residential Real Estate Junior Lien Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,472 | 1,489 |
Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 36,030 | 36,158 |
Consumer Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 35,817 | 36,059 |
Consumer Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 136 | |
Consumer Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 47 | 68 |
Consumer Loan Financing Receivable | Internally Assigned Grade Doubtful | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 30 | 31 |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 111,975 | 105,512 |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 513,778 | 503,624 |
Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,198,446 | 1,171,971 |
Commercial Real Estate Portfolio Segment | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,125,942 | 1,102,446 |
Commercial Real Estate Portfolio Segment | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 44,192 | 47,972 |
Commercial Real Estate Portfolio Segment | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 28,312 | 21,553 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 194,712 | 165,276 |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 87,030 | 87,868 |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 126,802 | 134,506 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 789,902 | 784,321 |
Residential Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 465,929 | 469,430 |
Residential Portfolio Segment | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 452,493 | 455,209 |
Residential Portfolio Segment | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 3,136 | 3,728 |
Residential Portfolio Segment | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 10,300 | 10,493 |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 349,742 | 352,226 |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 116,187 | 117,204 |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | $ 36,030 | $ 36,158 |
Loans Receivable and the Allowance for Loan Losses Amounts and Categories of Impaired Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | $ 27,096 | $ 17,703 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 28,512 | 19,116 | |
Impaired financing receivable, with related allowance, recorded investment | 16,051 | 9,108 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 23,772 | 16,406 | |
Impaired financing receivable, related allowance | 5,793 | 3,649 | |
Impaired financing receivable, recorded investment | 43,147 | 26,811 | |
Impaired financing receivable, unpaid principal balance | 52,284 | 35,522 | |
Impaired financing receivable, with no related allowance, average recorded investment | 18,502 | $ 24,084 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 286 | 111 | |
Impaired financing receivable, with related allowance, average recorded investment | 15,197 | 15,102 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 53 | 29 | |
Impaired financing receivable, average recorded investment | 33,699 | 39,186 | |
Impaired financing receivable, interest income, accrual method | 339 | 140 | |
Loans and leases receivable, impaired, commitment to lend | 0 | ||
Agricultural Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 8,764 | 1,523 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 9,264 | 2,023 | |
Impaired financing receivable, with related allowance, recorded investment | 2,181 | 1,446 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 2,181 | 1,446 | |
Impaired financing receivable, related allowance | 580 | 140 | |
Impaired financing receivable, with no related allowance, average recorded investment | 5,015 | 2,230 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 124 | 13 | |
Impaired financing receivable, with related allowance, average recorded investment | 1,946 | 2,087 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 17 | ||
Commercial and Industrial Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 3,781 | 7,588 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 4,147 | 7,963 | |
Impaired financing receivable, with related allowance, recorded investment | 7,118 | 2,146 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 7,207 | 2,177 | |
Impaired financing receivable, related allowance | 1,708 | 1,126 | |
Impaired financing receivable, with no related allowance, average recorded investment | 3,189 | 12,431 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 46 | 72 | |
Impaired financing receivable, with related allowance, average recorded investment | 7,088 | 4,812 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 20 | ||
Commercial Real Estate Construction and Development Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 84 | 84 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 84 | 84 | |
Impaired financing receivable, with no related allowance, average recorded investment | 84 | 1,064 | |
Impaired financing receivable, with related allowance, average recorded investment | 434 | ||
Farmland Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 3,952 | 287 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 3,952 | 287 | |
Impaired financing receivable, with related allowance, recorded investment | 2,092 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 2,092 | ||
Impaired financing receivable, related allowance | 676 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 1,976 | 2,535 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 39 | 26 | |
Impaired financing receivable, with related allowance, average recorded investment | 1,046 | ||
Impaired financing receivable, with related allowance, interest income, accrual method | 27 | ||
Multifamily Real Estate Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 826 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 826 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 413 | ||
Impaired financing receivable, with no related allowance, interest income, accrual method | 10 | ||
Commercial Real Estate Loan Other Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 6,806 | 5,746 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 7,312 | 6,251 | |
Impaired financing receivable, with related allowance, recorded investment | 3,688 | 4,269 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 11,320 | 11,536 | |
Impaired financing receivable, related allowance | 2,662 | 2,157 | |
Impaired financing receivable, with no related allowance, average recorded investment | 5,930 | 3,248 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 67 | ||
Impaired financing receivable, with related allowance, average recorded investment | 4,141 | 6,369 | |
Residential Real Estate First Lien Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 2,591 | 2,449 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,634 | 2,482 | |
Impaired financing receivable, with related allowance, recorded investment | 972 | 979 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 972 | 979 | |
Impaired financing receivable, related allowance | 167 | 185 | |
Impaired financing receivable, with no related allowance, average recorded investment | 1,602 | 2,563 | |
Impaired financing receivable, with related allowance, average recorded investment | 976 | 1,400 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 9 | 9 | |
Residential Real Estate Junior Lien Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 292 | 26 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 293 | 26 | |
Impaired financing receivable, with related allowance, recorded investment | 268 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 268 | ||
Impaired financing receivable, related allowance | 41 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 293 | 13 | |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, related allowance | 580 | 140 | |
Impaired financing receivable, recorded investment | 10,945 | 2,969 | |
Impaired financing receivable, unpaid principal balance | 11,445 | 3,469 | |
Impaired financing receivable, average recorded investment | 6,961 | 4,317 | |
Impaired financing receivable, interest income, accrual method | 141 | 13 | |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, related allowance | 1,708 | 1,126 | |
Impaired financing receivable, recorded investment | 10,899 | 9,734 | |
Impaired financing receivable, unpaid principal balance | 11,354 | 10,140 | |
Impaired financing receivable, average recorded investment | 10,277 | 17,243 | |
Impaired financing receivable, interest income, accrual method | 46 | 92 | |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 11,668 | 6,117 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 12,174 | 6,622 | |
Impaired financing receivable, with related allowance, recorded investment | 5,780 | 4,269 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 13,412 | 11,536 | |
Impaired financing receivable, related allowance | 3,338 | 2,157 | |
Impaired financing receivable, recorded investment | 17,448 | 10,386 | |
Impaired financing receivable, unpaid principal balance | 25,586 | 18,158 | |
Impaired financing receivable, with no related allowance, average recorded investment | 8,403 | 6,847 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 116 | 26 | |
Impaired financing receivable, with related allowance, average recorded investment | 5,187 | 6,803 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 27 | ||
Impaired financing receivable, average recorded investment | 13,590 | 13,650 | |
Impaired financing receivable, interest income, accrual method | 143 | 26 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, recorded investment | 84 | 84 | |
Impaired financing receivable, unpaid principal balance | 84 | 84 | |
Impaired financing receivable, average recorded investment | 84 | 1,498 | |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, related allowance | 676 | ||
Impaired financing receivable, recorded investment | 6,044 | 287 | |
Impaired financing receivable, unpaid principal balance | 6,044 | 287 | |
Impaired financing receivable, average recorded investment | 3,022 | 2,535 | |
Impaired financing receivable, interest income, accrual method | 66 | 26 | |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, recorded investment | 826 | ||
Impaired financing receivable, unpaid principal balance | 826 | ||
Impaired financing receivable, average recorded investment | 413 | ||
Impaired financing receivable, interest income, accrual method | 10 | ||
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, related allowance | 2,662 | 2,157 | |
Impaired financing receivable, recorded investment | 10,494 | 10,015 | |
Impaired financing receivable, unpaid principal balance | 18,632 | 17,787 | |
Impaired financing receivable, average recorded investment | 10,071 | 9,617 | |
Impaired financing receivable, interest income, accrual method | 67 | ||
Residential Portfolio Segment | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, with no related allowance, recorded investment | 2,883 | 2,475 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,927 | 2,508 | |
Impaired financing receivable, with related allowance, recorded investment | 972 | 1,247 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 972 | 1,247 | |
Impaired financing receivable, related allowance | 167 | 226 | |
Impaired financing receivable, recorded investment | 3,855 | 3,722 | |
Impaired financing receivable, unpaid principal balance | 3,899 | 3,755 | |
Impaired financing receivable, with no related allowance, average recorded investment | 1,895 | 2,576 | |
Impaired financing receivable, with related allowance, average recorded investment | 976 | 1,400 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 9 | 9 | |
Impaired financing receivable, average recorded investment | 2,871 | 3,976 | |
Impaired financing receivable, interest income, accrual method | 9 | 9 | |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, related allowance | 167 | 185 | |
Impaired financing receivable, recorded investment | 3,563 | 3,428 | |
Impaired financing receivable, unpaid principal balance | 3,606 | 3,461 | |
Impaired financing receivable, average recorded investment | 2,578 | 3,963 | |
Impaired financing receivable, interest income, accrual method | 9 | 9 | |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | |||
Financing Receivable, Impaired | |||
Impaired financing receivable, related allowance | 41 | ||
Impaired financing receivable, recorded investment | 292 | 294 | |
Impaired financing receivable, unpaid principal balance | 293 | $ 294 | |
Impaired financing receivable, average recorded investment | $ 293 | $ 13 |
Loans Receivable and the Allowance for Loan Losses Past Due Loan Aging (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | $ 19,062 | $ 14,622 |
Loans current | 2,307,096 | 2,272,073 |
Total Loans Receivable | 2,326,158 | 2,286,695 |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 2,035 | 381 |
Loans current | 109,940 | 105,131 |
Total Loans Receivable | 111,975 | 105,512 |
Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 7,258 | 4,346 |
Loans current | 506,520 | 499,278 |
Total Loans Receivable | 513,778 | 503,624 |
Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 188 | 236 |
Loans current | 194,524 | 165,040 |
Total Loans Receivable | 194,712 | 165,276 |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 363 | 590 |
Loans current | 86,667 | 87,278 |
Total Loans Receivable | 87,030 | 87,868 |
Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 25 | |
Loans current | 126,802 | 134,481 |
Total Loans Receivable | 126,802 | 134,506 |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 3,907 | 1,926 |
Loans current | 785,995 | 782,395 |
Total Loans Receivable | 789,902 | 784,321 |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 4,589 | 5,629 |
Loans current | 345,153 | 346,597 |
Total Loans Receivable | 349,742 | 352,226 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 630 | 1,366 |
Loans current | 115,557 | 115,838 |
Total Loans Receivable | 116,187 | 117,204 |
Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 92 | 123 |
Loans current | 35,938 | 36,035 |
Total Loans Receivable | 36,030 | 36,158 |
Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 546 | 1,473 |
Loans current | 18,488 | 18,258 |
Total Loans Receivable | 19,034 | 19,731 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 13,667 | 6,135 |
Financing Receivables, 30 to 59 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,722 | 95 |
Financing Receivables, 30 to 59 Days Past Due | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 5,523 | 1,434 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 11 | 57 |
Financing Receivables, 30 to 59 Days Past Due | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 363 | 217 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 2,778 | 74 |
Financing Receivables, 30 to 59 Days Past Due | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 2,968 | 3,854 |
Financing Receivables, 30 to 59 Days Past Due | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 244 | 325 |
Financing Receivables, 30 to 59 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 58 | 79 |
Financing Receivables, 30 to 59 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 164 | |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 848 | 3,117 |
Financing Receivables, 60 to 89 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 175 | 118 |
Financing Receivables, 60 to 89 Days Past Due | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 136 | 1,336 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 97 | |
Financing Receivables, 60 to 89 Days Past Due | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 25 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 48 | |
Financing Receivables, 60 to 89 Days Past Due | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 444 | 756 |
Financing Receivables, 60 to 89 Days Past Due | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 30 | 770 |
Financing Receivables, 60 to 89 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 15 | 15 |
Financing Receivables, 60 to 89 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 206 | 756 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 4,547 | 5,370 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 138 | 168 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,599 | 1,576 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 177 | 82 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 373 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,081 | 1,852 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,177 | 1,019 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 356 | 271 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 19 | 29 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 340 | 553 |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans Receivable | 111,975 | 105,512 |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans Receivable | 513,778 | 503,624 |
Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 4,458 | 2,777 |
Loans current | 1,193,988 | 1,169,194 |
Total Loans Receivable | 1,198,446 | 1,171,971 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans Receivable | 194,712 | 165,276 |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans Receivable | 87,030 | 87,868 |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans Receivable | 126,802 | 134,506 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans Receivable | 789,902 | 784,321 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 3,152 | 348 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 48 | 122 |
Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,258 | 2,307 |
Residential Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 5,219 | 6,995 |
Loans current | 460,710 | 462,435 |
Total Loans Receivable | 465,929 | 469,430 |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans Receivable | 349,742 | 352,226 |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans Receivable | 116,187 | 117,204 |
Residential Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 3,212 | 4,179 |
Residential Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 474 | 1,526 |
Residential Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,533 | 1,290 |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans Receivable | $ 36,030 | $ 36,158 |
Loans Receivable and the Allowance for Loan Losses Nonaccrual and 90+ Days Past Due and Still Accruing Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Financing Receivable, Recorded Investment, Past Due | ||
Document Period End Date | Mar. 31, 2018 | |
Loans in nonaccrual status | $ 13,566 | $ 14,784 |
Loans 90 days past due and still accruing | 116 | 207 |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 390 | 168 |
Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 7,125 | 7,124 |
Commercial Real Estate Construction and Development Loan Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 186 | 188 |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 140 | 386 |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 3,924 | 5,279 |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 1,312 | 1,228 |
Loans 90 days past due and still accruing | 103 | 205 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 434 | 346 |
Loans 90 days past due and still accruing | 13 | 2 |
Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans, nonaccrual or 90 days past due and still accruing | 500 | 700 |
Loans, discount, nonaccrual or 90 days past due and still accruing | 0 | 100 |
Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 55 | 65 |
Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 4,250 | 5,853 |
Loans 90 days past due and still accruing | 0 | |
Residential Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 1,746 | 1,574 |
Loans 90 days past due and still accruing | $ 116 | $ 207 |
Loans Receivable and the Allowance for Loan Losses Accretable Yield for Loans Acquired and Accounted for Under ASC 310-30 (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Loans and Leases Receivable Disclosure [Abstract] | ||
Balance at beginning of period | $ 840 | $ 1,961 |
Accretion | (277) | (416) |
Reclassifications (to) from nonaccretable difference | 45 | 88 |
Balance at end of period | $ 608 | $ 1,633 |
Loans Receivable and the Allowance for Loan Losses Textual References (Details) $ in Millions |
Mar. 31, 2018
USD ($)
quarters
|
Dec. 31, 2017
USD ($)
|
---|---|---|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans pledged for Federal Home Loan Bank debt | $ 487.7 | $ 477.6 |
Allowance for loan losses, maximum overage percentage | 20.00% | |
Allowance for loan losses, maximum shortage percentage | 5.00% | |
Loans reviewed collectively for impairment, historical loss lookback, number of quarters | quarters | 20 | |
Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Purchased credit-impaired loans, outstanding balance | $ 20.5 | |
Purchased credit-impaired loans, discount | $ 1.5 |
Derivative and Hedging Activities Derivative Instruments (Details) - Fair Value Hedging $ in Thousands |
Mar. 31, 2018
USD ($)
count
|
---|---|
Interest Rate Swap | |
Derivative [Line Items] | |
Number of instruments held | count | 1 |
Notional amount | $ 4,354 |
Hedged Item, Loans [Member] | |
Derivative [Line Items] | |
Carrying amount of the hedged asset | 4,516 |
Adjustment included in the carrying amount of the hedged asset | $ 161 |
Derivative and Hedging Activities Fair Values of Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Other Liabilities [Member] | Interest Rate Swap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of interest rate derivative liabilities | $ 161 | $ 0 |
Derivative and Hedging Activities Effect of Derivative Instruments on Income (Details) - Interest Rate Swap - Designated as Hedging Instrument - Fair Value Hedging - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative, net | $ (1) | $ 0 |
Loss on derivative | (162) | 0 |
Interest Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain on derivative | 161 | 0 |
Other gain (loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative, net | 0 | 0 |
Loss on derivative | 0 | 0 |
Gain on derivative | $ 0 | $ 0 |
Derivative and Hedging Activities Offsetting of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized liabilities | $ (161) | $ 0 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in balance sheet | (161) | 0 |
Financial instruments | 0 | 0 |
Cash collateral pledged | (130) | 0 |
Net liabilities | $ (31) | $ 0 |
Goodwill and Intangible Assets Changes in Carrying Amount of Non-Goodwill Intangibles (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
|
Schedule of Intangible Assets [Line Items] | |||
Balance, beginning of period | $ 12,046 | ||
Amortization expense | (657) | $ (849) | |
Balance at end of period | 11,389 | ||
Gross carrying amount | $ 28,276 | ||
Accumulated amortizations | (16,887) | ||
Net book value | 12,046 | 11,389 | |
Trade names intangible | |||
Schedule of Intangible Assets [Line Items] | |||
Balance, beginning of period | 7,040 | ||
Amortization expense | 0 | ||
Balance at end of period | 7,040 | ||
Gross carrying amount | 7,040 | ||
Net book value | 7,040 | 7,040 | |
Insurance agency intangible | |||
Schedule of Intangible Assets [Line Items] | |||
Balance, beginning of period | 148 | ||
Amortization expense | (9) | ||
Balance at end of period | 139 | ||
Gross carrying amount | 1,320 | ||
Accumulated amortizations | (1,181) | ||
Net book value | 148 | 139 | |
Core deposit intangible | |||
Schedule of Intangible Assets [Line Items] | |||
Balance, beginning of period | 4,011 | ||
Amortization expense | (594) | ||
Balance at end of period | 3,417 | ||
Gross carrying amount | 18,206 | ||
Accumulated amortizations | (14,789) | ||
Net book value | 4,011 | 3,417 | |
Trade names intangible | |||
Schedule of Intangible Assets [Line Items] | |||
Balance, beginning of period | 744 | ||
Amortization expense | (50) | ||
Balance at end of period | 694 | ||
Gross carrying amount | 1,380 | ||
Accumulated amortizations | (686) | ||
Net book value | 744 | 694 | |
Customer list intangible | |||
Schedule of Intangible Assets [Line Items] | |||
Balance, beginning of period | 103 | ||
Amortization expense | (4) | ||
Balance at end of period | 99 | ||
Gross carrying amount | 330 | ||
Accumulated amortizations | (231) | ||
Net book value | $ 103 | $ 99 |
Goodwill and Intangible Assets Textual References (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Schedule of Intangible Assets [Line Items] | ||
Goodwill, impairment loss | $ 0 | |
Goodwill | 64,654 | $ 64,654 |
Trade names intangible | ||
Schedule of Intangible Assets [Line Items] | ||
Impairment of indefinite-lived trade name intangible | $ 0 |
Other Assets (Details) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Other Assets [Abstract] | ||
Federal Home Loan Bank stock | $ 12,780,000 | $ 11,324,000 |
Prepaid expense | 2,067,000 | 2,992,000 |
Mortgage Servicing Rights | 2,536,000 | 2,316,000 |
Federal & state income taxes receivable, current | 897,000 | 3,120,000 |
Accounts receivable & other miscellaneous assets | 4,479,000 | 3,009,000 |
Other assets | 22,759,000 | 22,761,000 |
Investment in Federal Home Loan Bank Stock | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other than Temporary Impairment Losses, Investments | $ 0 | $ 0 |
Short-Term Borrowings (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Short-term Debt [Line Items] | ||
Weighted Average Cost | 1.06% | 0.73% |
Short-term debt | $ 93,311 | $ 97,229 |
Available-for-sale securities pledged as collateral | 238,200 | 237,400 |
Federal Reserve Bank advances | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | 0 |
Unsercured line of credit, maximum borrowing capacity | 11,500 | 11,536 |
Available-for-sale securities pledged as collateral | $ 12,700 | $ 12,800 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Weighted Average Cost | 1.95% | 1.77% |
Short-term debt | $ 25,573 | $ 1,000 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Weighted Average Cost | 0.72% | 0.71% |
Short-term debt | $ 67,738 | $ 96,229 |
Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | |
Unsercured line of credit, maximum borrowing capacity | $ 5,000 | |
Debt Instrument, Issuance Date | Apr. 30, 2015 | |
Debt instrument, maturity date | Apr. 28, 2018 | |
London Interbank Offered Rate (LIBOR) | Line of credit | ||
Short-term Debt [Line Items] | ||
Description of variable interest rate basis | one-month LIBOR | |
Debt instrument, basis spread on variable rate | 2.00% |
Subordinated Notes Payable (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
||||||
Debt Instrument [Line Items] | |||||||
Junior subordinated notes issued to capital trusts, book value | $ 23,817 | $ 23,793 | |||||
Junior subordinated notes | |||||||
Debt Instrument [Line Items] | |||||||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1] | 24,743 | 24,743 | ||||
Junior subordinated notes issued to capital trusts, book value | 23,817 | 23,793 | |||||
Junior subordinated notes | CBI Capital Trust II | |||||||
Debt Instrument [Line Items] | |||||||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1],[2] | 7,217 | 7,217 | ||||
Junior subordinated notes issued to capital trusts, book value | [1],[2] | $ 6,688 | $ 6,674 | ||||
Interest rate | [1],[2] | 5.62% | 5.09% | ||||
Debt instrument, maturity date | [1],[2] | Mar. 15, 2038 | Mar. 15, 2038 | ||||
Debt instrument, earliest call date | [1],[2] | Mar. 15, 2013 | Mar. 15, 2013 | ||||
Junior subordinated notes | CBI Capital Trust II | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable interest rate basis | [1],[2] | Three-month LIBOR | |||||
Debt instrument, basis spread on variable rate | [1],[2] | 3.50% | |||||
Junior subordinated notes | Barron Investment Capital Trust I | |||||||
Debt Instrument [Line Items] | |||||||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1],[2] | $ 2,062 | $ 2,062 | ||||
Junior subordinated notes issued to capital trusts, book value | [1],[2] | $ 1,665 | $ 1,655 | ||||
Interest rate | [1],[2] | 4.42% | 3.82% | ||||
Debt instrument, maturity date | [1],[2] | Sep. 23, 2036 | Sep. 23, 2036 | ||||
Debt instrument, earliest call date | [1],[2] | Sep. 23, 2011 | Sep. 23, 2011 | ||||
Junior subordinated notes | Barron Investment Capital Trust I | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable interest rate basis | [1],[2] | Three-month LIBOR | |||||
Debt instrument, basis spread on variable rate | [1],[2] | 2.15% | |||||
Junior subordinated notes | MidWestOne Statutory Trust II | |||||||
Debt Instrument [Line Items] | |||||||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1] | $ 15,464 | $ 15,464 | ||||
Junior subordinated notes issued to capital trusts, book value | [1] | $ 15,464 | $ 15,464 | ||||
Interest rate | [1] | 3.71% | 3.18% | ||||
Debt instrument, maturity date | [1] | Dec. 15, 2037 | Dec. 15, 2037 | ||||
Debt instrument, earliest call date | [1] | Dec. 15, 2012 | Dec. 15, 2012 | ||||
Junior subordinated notes | MidWestOne Statutory Trust II | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Description of variable interest rate basis | [1] | Three-month LIBOR | |||||
Debt instrument, basis spread on variable rate | [1] | 1.59% | |||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Junior subordinated debenture owed to unconsolidated subsidiary, deferral period | 5 years | ||||||
|
Long-Term Borrowings (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2015 |
Apr. 30, 2015 |
|
Debt Instrument [Line Items] | ||||
Long-term debt, excluding subordinated debt, weighted average interest rate | 2.05% | 1.88% | ||
Long-term Debt, Gross | $ 134,250 | $ 127,500 | ||
Federal Home Loan Bank Borrowings | ||||
Debt Instrument [Line Items] | ||||
Weighted average cost | 1.93% | 1.72% | ||
Long-term Debt, Gross | $ 123,000 | $ 115,000 | ||
Federal Home Loan, Bank advances general debt obligations, disclosures maximum borrowing capacity as percentage of total assets | 35.00% | |||
Note payable to unaffiliated bank | ||||
Debt Instrument [Line Items] | ||||
Weighted average cost | 3.41% | 3.32% | ||
Long-term Debt, Gross | $ 11,250 | $ 12,500 | ||
Debt Instrument, Issuance Date | Apr. 30, 2015 | |||
Original note face amount | $ 35,000 | |||
Debt instrument, maturity date | Jun. 30, 2020 | |||
Long-term debt, amount advanced | $ 25,000 | |||
Debt instrument, frequency of periodic payment | quarterly | |||
Debt Instrument, Date of First Required Payment | Sep. 30, 2015 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Expected provision, amount | $ 2,053 | $ 3,235 |
Tax-exempt interest, amount | (490) | (786) |
Bank-owned life insurance, amount | (91) | (115) |
State income taxes, net of federal income tax benefit, amount | 529 | 405 |
General business credits, amount | (47) | (21) |
Other, amount | 30 | (189) |
Total income tax provision, amount | $ 1,984 | $ 2,529 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Expected provision, percent | 21.00% | 35.00% |
Tax-exempt interest, percent | (5.00%) | (8.50%) |
Bank-owned life insurance, percent | (0.90%) | (1.20%) |
State income taxes, net of federal income tax benefit, percent | 5.40% | 4.40% |
General business credits, percent | (0.80%) | (0.20%) |
Other, percent | 0.60% | (2.10%) |
Total income tax provision, percent | 20.30% | 27.40% |
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Earnings Per Share [Abstract] | ||
Net income | $ 7,793 | $ 6,713 |
Earnings per common share - basic | $ 0.64 | $ 0.58 |
Earnings per common share - diluted | $ 0.64 | $ 0.58 |
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value Financial Assets and Liabilities Measured on a Recurring Basis (Details) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2018
USD ($)
count
|
Dec. 31, 2017
USD ($)
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 446,087 | $ 447,660 |
Derivative liability | 161 | 0 |
Transfer of assets, fair value, to (from) Level 3, amount | 0 | 0 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative liability | 0 | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative liability | 161 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative liability | 0 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 447,660 | |
Derivative liability | 161 | |
Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 2,336 | |
Derivative liability | 0 | |
Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 445,324 | |
Derivative liability | 161 | |
Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative liability | 0 | |
U.S. Government agencies and corporations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 15,399 | 15,626 |
U.S. Government agencies and corporations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 15,399 | 15,626 |
U.S. Government agencies and corporations | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 15,399 | 15,626 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 147,526 | 141,839 |
State and political subdivisions | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 147,526 | 141,839 |
State and political subdivisions | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 147,526 | 141,839 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 47,260 | 48,497 |
Mortgage-backed securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 47,260 | 48,497 |
Mortgage-backed securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 47,260 | 48,497 |
Collateralized mortgage obligations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 170,805 | 168,196 |
Collateralized mortgage obligations | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 170,805 | 168,196 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 65,097 | 71,166 |
Corporate debt securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 65,097 | 71,166 |
Corporate debt securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 65,097 | 71,166 |
Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Sample size used to validate pricing service results | count | 30 | |
Available for sale securities | 445,324 | |
Debt securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 446,087 | 445,324 |
Debt securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 446,087 | 445,324 |
Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 2,336 | |
Other equity securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 2,336 | |
Other equity securities | Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 2,336 |
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value Assets and Liabilities Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | $ 1,001 | $ 2,010 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 8,877 | 3,927 |
Other real estate owned | 1,001 | 2,010 |
Nonrecurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 8,877 | 3,927 |
Other real estate owned | $ 1,001 | $ 2,010 |
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Investment securities: | ||
Equity securities | $ 2,815 | |
Equity securities | $ 2,336 | |
Available for sale debt securities | 446,087 | 445,324 |
Held to maturity securities | 194,617 | 195,619 |
Held to maturity, estimated fair value | 190,593 | 194,343 |
Accrued interest receivable | 13,337 | 14,732 |
Federal Home Loan Bank stock | 12,780 | 11,324 |
Deposits: | ||
Non-interest-bearing demand | 450,168 | 461,969 |
Interest-bearing checking | 1,240,208 | 1,228,112 |
Savings | 215,940 | 213,430 |
Derivative liability | 161 | 0 |
Accrued interest payable | 1,459 | 1,428 |
Reported Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | 42,396 | 50,972 |
Investment securities: | ||
Equity securities | 2,815 | |
Equity securities | 2,336 | |
Available for sale debt securities | 446,087 | 445,324 |
Held to maturity securities | 194,617 | 195,619 |
Total investment securities | 643,519 | 643,279 |
Loans held for sale | 870 | 856 |
Loans, net | 2,296,487 | 2,258,636 |
Accrued interest receivable | 13,337 | 14,732 |
Deposits: | ||
Non-interest-bearing demand | 450,168 | 461,969 |
Interest-bearing checking | 1,240,208 | 1,228,112 |
Savings | 215,940 | 213,430 |
Certificates of deposit under $100,000 | 332,727 | 324,681 |
Certificates of deposit $100,000 and over | 392,878 | 377,127 |
Total deposits | 2,631,921 | 2,605,319 |
Federal funds purchased and securities sold under agreements to repurchase | 93,311 | 97,229 |
Federal Home Loan Bank borrowings | 123,000 | 115,000 |
Junior subordinated notes issued to capital trusts | 23,817 | 23,793 |
Long-term debt | 11,250 | 12,500 |
Derivative liability | 161 | |
Estimate of Fair Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | 42,396 | 50,972 |
Investment securities: | ||
Equity securities | 2,815 | |
Equity securities | 2,336 | |
Available for sale debt securities | 446,087 | 445,324 |
Held to maturity, estimated fair value | 190,593 | 194,343 |
Total investment securities | 639,495 | 642,003 |
Loans held for sale | 895 | 871 |
Loans, net | 2,247,398 | 2,256,726 |
Accrued interest receivable | 13,337 | 14,732 |
Federal Home Loan Bank stock | 12,780 | 11,324 |
Deposits: | ||
Non-interest-bearing demand | 450,168 | 461,969 |
Interest-bearing checking | 1,240,208 | 1,228,112 |
Savings | 215,940 | 213,430 |
Certificates of deposit under $100,000 | 328,009 | 321,197 |
Certificates of deposit $100,000 and over | 389,430 | 374,685 |
Total deposits | 2,623,755 | 2,599,393 |
Federal funds purchased and securities sold under agreements to repurchase | 93,311 | 97,229 |
Federal Home Loan Bank borrowings | 120,850 | 114,945 |
Junior subordinated notes issued to capital trusts | 21,032 | 19,702 |
Long-term debt | 11,250 | 12,500 |
Derivative liability | 161 | |
Fair Value, Inputs, Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 42,396 | 50,972 |
Investment securities: | ||
Equity securities | 2,815 | |
Equity securities | 2,336 | |
Total investment securities | 2,815 | 2,336 |
Accrued interest receivable | 13,337 | 14,732 |
Deposits: | ||
Non-interest-bearing demand | 450,168 | 461,969 |
Interest-bearing checking | 1,240,208 | 1,228,112 |
Savings | 215,940 | 213,430 |
Total deposits | 1,906,316 | 1,903,511 |
Federal funds purchased and securities sold under agreements to repurchase | 93,311 | 97,229 |
Derivative liability | 0 | |
Fair Value, Inputs, Level 2 | ||
Investment securities: | ||
Equity securities | 0 | |
Equity securities | 0 | |
Available for sale debt securities | 446,087 | 445,324 |
Held to maturity, estimated fair value | 190,593 | 194,343 |
Total investment securities | 636,680 | 639,667 |
Loans held for sale | 895 | |
Loans, net | 2,256,726 | |
Federal Home Loan Bank stock | 12,780 | 11,324 |
Deposits: | ||
Certificates of deposit under $100,000 | 328,009 | 321,197 |
Certificates of deposit $100,000 and over | 389,430 | 374,685 |
Total deposits | 717,439 | 695,882 |
Federal Home Loan Bank borrowings | 120,850 | 114,945 |
Junior subordinated notes issued to capital trusts | 21,032 | 19,702 |
Long-term debt | 11,250 | 12,500 |
Derivative liability | 161 | |
Fair Value, Inputs, Level 3 | ||
Investment securities: | ||
Equity securities | 0 | |
Equity securities | 0 | |
Loans held for sale | 871 | |
Loans, net | 2,247,398 | |
Deposits: | ||
Derivative liability | $ 0 |
Subsequent Events (Details) - Subsequent Event - Common Stock |
Apr. 19, 2018
$ / shares
|
---|---|
Subsequent Event | |
Dividends payable, amount per share | $ 0.195 |
Dividends payable, date to be paid | Jun. 15, 2018 |
Dividends payable, date of record | Jun. 01, 2018 |
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