Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2018

Loans and Allowance for Loan Losses

Summary of loans

	September 30,		December 31,
	2018		2017
	(In thousands)
Mortgage warehouse lines of credit	$	406,287	$	224,937
Residential real estate		399,970		330,410
Multi-family and healthcare financing		738,879		529,259
Commercial and commercial real estate		290,126		228,668
Agricultural production and real estate		70,280		51,966
Consumer and margin loans		11,560		9,420
		1,917,102		1,374,660
Less
Allowance for loan losses		11,243		8,311
Loans Receivable	$	1,905,859	$	1,366,349

Summary of activity in the allowance for loans and recorded investment by loan portfolio

	At or For the Three Months Ended September 30, 2018
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	646	$	1,812	$	4,662	$	2,803	$	392	$	273	$	10,588
Provision (credit) for loan losses		73		96		240		184		35		(11)		617
Loans charged to the allowance		—		—		—		46		—		28		74
Recoveries of loans previously charged off		—		(16)		—		(1)		—		(19)		(36)
Balance, end of period	$	719	$	1,892	$	4,902	$	3,032	$	427	$	271	$	11,243
Ending balance: individually evaluated for impairment	$	175	$	—	$	—	$	200	$	20	$	146	$	541
Ending balance: collectively evaluated for impairment	$	544	$	1,892	$	4,902	$	2,832	$	407	$	125	$	10,702
Loans
Ending balance	$	406,287	$	399,970	$	738,879	$	290,126	$	70,280	$	11,560	$	1,917,102
Ending balance individually evaluated for impairment	$	579	$	1,048	$	109	$	6,974	$	370	$	187	$	9,267
Ending balance collectively evaluated for impairment	$	405,708	$	398,922	$	738,770	$	283,152	$	69,910	$	11,373	$	1,907,835

	For the Three Months Ended September 30, 2017
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	281	$	1,938	$	2,426	$	1,845	$	271	$	104	$	6,865
Provision (credit) for loan losses		(8)		(414)		276		688		36		14		592
Loans charged to the allowance		—		—		—		—		—		—		—
Recoveries of loans previously charged off		—		—		—		—		—		—		—
Balance, end of period	$	273	$	1,524	$	2,702	$	2,533	$	307	$	118	$	7,457

	At or For the Nine Months Ended September 30, 2018
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	283	$	1,587	$	3,502	$	2,362	$	320	$	257	$	8,311
Provision for loan losses		436		305		1,400		759		107		14		3,021
Loans charged to the allowance		—		—		—		(89)		—		—		(89)
Recoveries of loans previously charged off		—		—		—		—		—		—		—
Balance, end of period	$	719	$	1,892	$	4,902	$	3,032	$	427	$	271	$	11,243

	At or For the Nine Months Ended September 30, 2017
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	373	$	2,170	$	1,962	$	1,374	$	269	$	102	$	6,250
Provision (credit) for loan losses		(100)		(646)		740		1,058		38		(18)		1,072
Loans charged to the allowance		—		—		—		—		—		—		—
Recoveries of loans previously charged off		—		—		—		101		—		34		135
Balance, end of period	$	273	$	1,524	$	2,702	$	2,533	$	307	$	118	$	7,457

Summary of activity in the allowance for loan losses

	December 31, 2017
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, December 31, 2017	$	283	$	1,587	$	3,502	$	2,362	$	320	$	257	$	8,311
Ending balance: individually evaluated for impairment	$	—	$	—	$	—	$	200	$	16	$	146	$	362
Ending balance: collectively evaluated for impairment	$	283	$	1,587	$	3,502	$	2,162	$	304	$	111	$	7,949
Loans
Ending balance	$	224,937	$	330,410	$	529,259	$	228,668	$	51,966	$	9,420	$	1,374,660
Ending balance individually evaluated for impairment	$	—	$	729	$	—	$	6,179	$	282		146	$	7,336
Ending balance collectively evaluated for impairment	$	224,937	$	329,681	$	529,259	$	222,489	$	51,684	$	9,274	$	1,367,324

Schedule of credit risk profile of loan portfolio

	September 30, 2018
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Special Mention (Watch)	$	—	$	301	$	45,762	$	15,714	$	3,317	$	1,261	$	66,355
Substandard		579		1,048		109		6,974		370		187		9,267
Doubtful		—		—		—		—		—		—		—
Acceptable and Above		405,708		398,621		693,008		267,438		66,593		10,112		1,841,480
Total	$	406,287	$	399,970	$	738,879	$	290,126	$	70,280	$	11,560	$	1,917,102

	December 31, 2017
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Special Mention (Watch)	$	—	$	—	$	1,800	$	12,608	$	323	$	1,563	$	16,294
Substandard		—		729		—		6,179		282		146		7,336
Doubtful		—		—		—		—		—		—		—
Acceptable and Above		224,937		329,681		527,459		209,881		51,361		7,711		1,351,030
Total	$	224,937	$	330,410	$	529,259	$	228,668	$	51,966	$	9,420	$	1,374,660

Schedule of aging analysis of the recorded investment in loans

	September 30, 2018
	30-59 Days		60-89 Days		Greater Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Loans
	(In thousands)
MTG WHLOC	$	—	$	—	$	324	$	324	$	405,963	$	406,287
RES RE		1,111		80		359		1,550		398,420		399,970
MF RE		—		—		—		—		738,879		738,879
CML & CRE		109		—		165		274		289,852		290,126
AG & AGRE		71		—		588		659		69,621		70,280
CON & MAR		57		18		153		228		11,332		11,560
	$	1,348	$	98	$	1,589	$	3,035	$	1,914,067	$	1,917,102

	December 31, 2017
	30-59 Days		60-89 Days		Greater Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Loans
	(In thousands)
MTG WHLOC	$	—	$	—	$	—	$	—	$	224,937	$	224,937
RES RE		—		194		534		728		329,682		330,410
MF RE		—		—		—		—		529,259		529,259
CML & CRE		—		860		2,061		2,921		225,747		228,668
AG & AGRE		59		—		399		458		51,508		51,966
CON & MAR		—		—		146		146		9,274		9,420
	$	59	$	1,054	$	3,140	$	4,253	$	1,370,407	$	1,374,660

Schedule of components of impaired loans and specific valuation allowance

	September 30, 2018
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Impaired loans without a specific allowance:
Recorded investment	$	255	$	1,048	$	109	$	4,974	$	88	$	41	$	6,515
Unpaid principal balance		255		1,048		109		4,974		88		41		6,515
Impaired loans with a specific allowance:
Recorded investment		324		—		—		2,000		282		146		2,752
Unpaid principal balance		324		—		—		2,000		282		146		2,752
Specific allowance		175		—		—		200		20		146		541
Total impaired loans:
Recorded investment		579		1,048		109		6,974		370		187		9,267
Unpaid principal balance		579		1,048		109		6,974		370		187		9,267
Specific allowance		175		—		—		200		20		146		541

	December 31, 2017
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Impaired loans without a specific allowance:
Recorded investment	$	—	$	729	$	—	$	4,119	$	—	$	—	$	4,848
Unpaid principal balance		—		729		—		4,119		—		—		4,848
Impaired loans with a specific allowance:
Recorded investment		—		—		—		2,060		282		146		2,488
Unpaid principal balance		—		—		—		2,060		282		146		2,488
Specific allowance		—		—		—		200		16		146		362
Total impaired loans:
Recorded investment		—		729		—		6,179		282		146		7,336
Unpaid principal balance		—		729		—		6,179		282		146		7,336
Specific allowance		—		—		—		200		16		146		362

Schedule of average recorded investment and interest income recognized in impaired loans

	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Three months ended September 30, 2018:
Average recorded investment in impaired loans	$	691	$	1,042	$	109	$	7,254	$	425	$	187	$	9,708
Interest income recognized		26		21		6		98		4		—		155
Three months ended September 30, 2017:
Average recorded investment in impaired loans	$	—	$	231	$	—	$	3,133	$	282	$	—	$	3,646
Interest income recognized		—		—		—		11		—		—		11

	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Nine months ended September 30, 2018:
Average recorded investment in impaired loans	$	1,030	$	1,097	$	113	$	7,556	$	525	$	184	$	10,505
Interest income recognized		66		51		8		177		43		1		346
Nine months ended September 30, 2017:
Average recorded investment in impaired loans	$	—	$	274	$	—	$	3,275	$	282	$	—	$	3,831
Interest income recognized		—		—		—		21		—		—		21

Schedule of nonaccrual loans and loans past due 90 days or more and still accruing

	September 30,				December 31,
	2018				2017
			Total Loans >				Total Loans >
			90 Days &				90 Days &
	Nonaccrual		Accruing		Nonaccrual		Accruing
	(In thousands)
MTG WHLOC	$	579	$	—	$	—	$	—
RES RE		263		155		60		475
MF RE		—		—		—		—
CML & CRE		165		—		2,060		—
AG & AGRE		282		307		282		117
CON & MAR		154		—		146		—
	$	1,443	$	462	$	2,548	$	592