Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2019

Loans and Allowance for Loan Losses

Summary of loans

	September 30,		December 31,
	2019		2018
	(In thousands)
Mortgage warehouse lines of credit	$	796,344	$	337,332
Residential real estate		410,550		410,871
Multi-family and healthcare financing		1,145,646		914,393
Commercial and commercial real estate		297,788		299,194
Agricultural production and real estate		85,737		79,255
Consumer and margin loans		19,728		17,082
		2,755,793		2,058,127
Less
Allowance for loan losses		13,705		12,704
Loans Receivable	$	2,742,088	$	2,045,423

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

	At or For the Three Months Ended September 30, 2019
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	1,565	$	1,929	$	5,144	$	3,271	$	515	$	180	$	12,604
Provision (credit) for loan losses		533		63		753		(174)		14		4		1,193
Loans charged to the allowance		(107)		—		—		—		—		—		(107)
Recoveries of loans previously charged off		—		—		—		15		—		—		15
Balance, end of period	$	1,991	$	1,992	$	5,897	$	3,112	$	529	$	184	$	13,705
Ending balance: individually evaluated for impairment	$	—		14		—		544		27		8	$	593
Ending balance: collectively evaluated for impairment	$	1,991	$	1,978	$	5,897	$	2,568	$	502	$	176	$	13,112
Loans
Ending balance	$	796,344	$	410,550	$	1,145,646	$	297,788	$	85,737	$	19,728	$	2,755,793
Ending balance individually evaluated for impairment	$	237	$	5,161	$	—	$	8,437	$	214	$	25	$	14,074
Ending balance collectively evaluated for impairment	$	796,107	$	405,389	$	1,145,646	$	289,351	$	85,523	$	19,703	$	2,741,719

	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

	For the Nine Months Ended September 30, 2019
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	1,068	$	1,986	$	6,030	$	3,051	$	429	$	140	$	12,704
Provision for loan losses		1,030		6		(133)		900		100		44		1,947
Loans charged to the allowance		(107)		—		—		(854)		(3)		—		(964)
Recoveries of loans previously charged off		—		—		—		15		3		—		18
Balance, end of period	$	1,991	$	1,992	$	5,897	$	3,112	$	529	$	184	$	13,705

	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 (credit) 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

Summary of activity in the allowance for loan losses

	December 31, 2018
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, December 31, 2018	$	1,068	$	1,986	$	6,030	$	3,051	$	429	$	140	$	12,704
Ending balance: individually evaluated for impairment	$	225	$	—	$	—	$	400	$	20	$	—	$	645
Ending balance: collectively evaluated for impairment	$	843	$	1,986	$	6,030	$	2,651	$	409	$	140	$	12,059
Loans
Balance, December 31, 2018	$	337,332	$	410,871	$	914,393	$	299,194	$	79,255	$	17,082	$	2,058,127
Ending balance individually evaluated for impairment	$	575	$	1,606	$	—	$	8,576	$	370	$	58	$	11,185
Ending balance collectively evaluated for impairment	$	336,757	$	409,265	$	914,393	$	290,618	$	78,885	$	17,024	$	2,046,942

Schedule of credit risk profile of loan portfolio

	September 30, 2019
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Special Mention (Watch)	$	—	$	674	$	38,999	$	11,259	$	5,116	$	38	$	56,086
Substandard		237		5,161		—		8,437		214		25		14,074
Doubtful		—		—		—		—		—		—		—
Acceptable and Above		796,107		404,715		1,106,647		278,092		80,407		19,665		2,685,633
Total	$	796,344	$	410,550	$	1,145,646	$	297,788	$	85,737	$	19,728	$	2,755,793

	December 31, 2018
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Special Mention (Watch)	$	—	$	443	$	71,734	$	14,650	$	3,096	$	681	$	90,604
Substandard		575		1,606		—		8,576		370		58		11,185
Doubtful		—		—		—		—		—		—		—
Acceptable and Above		336,757		408,822		842,659		275,968		75,789		16,343		1,956,338
Total	$	337,332	$	410,871	$	914,393	$	299,194	$	79,255	$	17,082	$	2,058,127

Schedule of aging analysis of the recorded investment in loans

	September 30, 2019
	30-59 Days		60-89 Days		Greater Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Loans
	(In thousands)
MTG WHLOC	$	—	$	—	$	—	$	—	$	796,344	$	796,344
RES RE		438		548		3,206		4,192		406,358		410,550
MF RE		—		—		—		—		1,145,646		1,145,646
CML & CRE		2,443		111		1,664		4,218		293,570		297,788
AG & AGRE		159		—		601		760		84,977		85,737
CON & MAR		25		22		27		74		19,654		19,728
	$	3,065	$	681	$	5,498	$	9,244	$	2,746,549	$	2,755,793

	December 31, 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	$	337,008	$	337,332
RES RE		579		178		825		1,582		409,289		410,871
MF RE		—		—		—		—		914,393		914,393
CML & CRE		245		52		253		550		298,644		299,194
AG & AGRE		91		—		588		679		78,576		79,255
CON & MAR		2		52		28		82		17,000		17,082
	$	917	$	282	$	2,018	$	3,217	$	2,054,910	$	2,058,127

Schedule of components of impaired loans and specific valuation allowance

	September 30, 2019
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Impaired loans without a specific allowance:
Recorded investment	$	237	$	5,016	$	—	$	6,019	$	—	$	14	$	11,286
Unpaid principal balance		237		5,016		—		6,019		—		14		11,286
Impaired loans with a specific allowance:
Recorded investment		—		145		—		2,418		214		11		2,788
Unpaid principal balance		—		145		—		2,418		214		11		2,788
Specific allowance		—		14		—		544		27		8		593
Total impaired loans:
Recorded investment		237		5,161		—		8,437		214		25		14,074
Unpaid principal balance		237		5,161		—		8,437		214		25		14,074
Specific allowance		—		14		—		544		27		8		593

	December 31, 2018
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Impaired loans without a specific allowance:
Recorded investment	$	251	$	1,606	$	—	$	5,636	$	88	$	58	$	7,639
Unpaid principal balance		251		1,606		—		5,636		88		58		7,639
Impaired loans with a specific allowance:
Recorded investment		324		—		—		2,940		282		—		3,546
Unpaid principal balance		324		—		—		2,940		282		—		3,546
Specific allowance		225		—		—		400		20		—		645
Total impaired loans:
Recorded investment		575		1,606		—		8,576		370		58		11,185
Unpaid principal balance		575		1,606		—		8,576		370		58		11,185
Specific allowance		225		—		—		400		20		—		645

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, 2019
Average recorded investment in impaired loans	$	239	$	5,172	$	—	$	8,264	$	214	$	26	$	13,915
Interest income recognized		—		9		—		127		—		—		136
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

	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Nine Months Ended September 30, 2019
Average recorded investment in impaired loans	$	244	$	5,206	$	—	$	8,351	$	239	$	28	$	14,068
Interest income recognized		—		62		—		375		—		1		438
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

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

	September 30,				December 31,
	2019				2018
			Total Loans >				Total Loans >
			90 Days &				90 Days &
	Nonaccrual		Accruing		Nonaccrual		Accruing
	(In thousands)
MTG WHLOC	$	237	$	—	$	575	$	—
RES RE		833		2,772		893		74
MF RE		—		—		—		—
CML & CRE		858		805		136		117
AG & AGRE		214		386		282		307
CON & MAR		18		10		18		9
	$	2,160	$	3,973	$	1,904	$	507