Delaware | 94-3327828 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
111 W. Pine Street, Lodi, California | 95240 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
None | Not Applicable | Not Applicable |
Large accelerated filer ☐ | Accelerated filer ☒ |
Non-accelerated filer ☐ | Smaller reporting company☐ |
Emerging growth company☐ |
PART I | Page | |
3 | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 5. | ||
Item 6. | 40 | |
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
Item 9C. | 124 | |
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. | ||
Item 16. | ||
127 | ||
Item 1. | Business |
F&M Bank | All Banks | F&M Bank | ||||||||||
County | Deposits | Deposits | Deposit Share | |||||||||
(Dollars in thousands) | ||||||||||||
San Joaquin | $ | 2,142,903 | $ | 16,146,195 | 13.27 | % | ||||||
Merced | 295,062 | 3,478,972 | 8.48 | % | ||||||||
Stanislaus | 1,040,376 | 12,326,338 | 8.44 | % | ||||||||
Solano | 204,523 | 7,100,485 | 2.88 | % | ||||||||
Sacramento | 669,990 | 50,151,517 | 1.34 | % | ||||||||
Contra Costa | 398,741 | 66,591,080 | 0.60 | % | ||||||||
Napa | 22,563 | 6,050,434 | 0.37 | % | ||||||||
Alameda | 817 | 72,077,695 | 0.00 | % | ||||||||
Total | $ | 4,774,975 | $ | 233,922,716 | 2.04 | % |
Minimum to be Categorized as "Well Capitalized" | Minimum to be Categorized as "Adequately Capitalized" | Under- capitalized | Significantly Under- capitalized | Critically Under- capitalized | ||||||||||||||||
Risk-based capital to risk-weighted assets | 10.00 | %+ | 8.00 | %+ | < 8.00% | < 6.00% | N/A | |||||||||||||
Tier 1 capital to risk-weighted assets | 8.00 | %+ | 6.00 | %+ | < 6.00% | < 4.00% | N/A | |||||||||||||
CET1 capital to risk-weighted assets | 6.50 | %+ | 4.50 | %+ | < 4.50% | < 3.00% | N/A | |||||||||||||
Tier 1 leverage capital ratio | 5.00 | %+ | 4.00 | %+ | < 4.00% | < 3.00% | N/A | |||||||||||||
Tangible equity to assets | N/A | N/A | N/A | N/A | < 2.00% | |||||||||||||||
Supplemental leverage ratio | N/A | 3.00 | %+ | < 3.00% | N/A | N/A |
Risk Factors |
We may be adversely affected by the lack of soundness of other financial institutions or financial market utilities. Our ability to engage in routine funding and other transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial institutions are interrelated because of trading, clearing, counterparty or other relationships. Defaults by, or even rumors or questions about, one or more financial institutions or financial market utilities, or the financial services industry generally, may lead to market-wide liquidity problems and losses of client, creditor and counterparty confidence and could lead to losses or defaults by us or by other financial institutions. Risks Related to Cyber-security and Information Technology Cyber-attacks or other security breaches could have a material adverse effect on our business. In the normal course of business, we collect, process, and retain sensitive and confidential information regarding our clients. We also have arrangements in place with other third parties through which we share and receive information about their clients who are or may become our clients. Although we devote significant resources and management focus to ensuring the integrity of our systems through information security and business continuity programs, our facilities and systems, and those of third-party service providers, are vulnerable to external or internal security breaches, acts of vandalism, computer viruses, misplaced or lost data, programming or human errors or other similar events. Information security risks for financial institutions have increased recently in part because of new technologies, the use of the Internet and telecommunications technologies (including mobile devices) to conduct financial and other business transactions, and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists and others. In addition to cyber-attacks or other security breaches involving the theft of sensitive and confidential information, hackers recently have engaged in attacks against large financial institutions, particularly denial of service attacks that are designed to disrupt key business services, such as client-facing websites. We are not able to anticipate or implement effective preventive measures against all potential security breaches, because the techniques used change frequently and because attacks can originate from a wide variety of sources. We employ detection and response mechanisms designed to contain and mitigate security incidents, but early detection may be thwarted by sophisticated attacks and malware designed to avoid detection. We also face risks related to cyber-attacks and other security breaches in connection with credit and debit card transactions that typically involve the transmission of sensitive information regarding our clients through various third parties, including merchant acquiring banks, payment processors, payment card networks and our core processors. Some of these parties have in the past been the target of security breaches and cyber-attacks, and because the transactions involve third parties and environments such as the point of sale that we do not control or secure, future security breaches or cyber-attacks affecting any of these third parties could impact us through no fault of our own, and in some cases we may have exposure and suffer losses for breaches or attacks relating to them. We also rely on numerous other third-party service providers to conduct other aspects of our business operations and face similar risks relating to them. While we regularly conduct security assessments on these third parties, we cannot be sure that their information security protocols are sufficient at all times to withstand a cyber-attack or other security breach. The access by unauthorized persons to, or the improper disclosure by us of, confidential information regarding our clients or our own proprietary information, software, methodologies, and business secrets could result in significant legal and financial exposure, supervisory liability, damage to our reputation or a loss of confidence in the security of our systems, products and services, which could have a material adverse effect on our financial condition or operations. In the past several years, there have been a number of well-publicized attacks or breaches affecting others in our industry that have heightened concern by consumers and have resulted in increased regulatory focus. Furthermore, cyber-attacks or other breaches in the future, whether affecting others or us, could intensify consumer concern and regulatory focus and result in reduced use of our cards and increased costs, all of which could have a material adverse effect on our business. To the extent we are involved in any future cyber-attacks or other breaches, our brand and reputation could be affected, and this could have a material adverse effect on our financial condition and operations. If we experience a cyber-attack, our insurance coverage may not cover all losses, and furthermore, we may experience a loss of reputation. We rely on our information technology and telecommunications systems and third-party servicers, and the failure of these systems could adversely affect our business. Our business is highly dependent on the successful and uninterrupted functioning of our information technology and telecommunications systems and third-party servicers. We rely on these systems to process new and renewal loans, provide client service, facilitate collections and share data across our organization. The failure of these systems, or the termination of a third-party software license or service agreement on which any of these systems is based, could interrupt our operations. Because our information technology and telecommunications systems interface with and depend on third-party systems, we could experience service denials if demand for such services exceeds capacity or such third-party systems fail or experience interruptions. If sustained or repeated, a system failure or service denial could result in a deterioration of our ability to process new and renewal loans and provide client service or compromise our ability to collect loan payments in a timely manner. Our ability to adopt new information technology and technological products needed to meet our clients’ banking needs may be limited if our third-party servicers are slow to adopt or choose not to adopt such new technology and products. Such a failure to provide this technology and products to our clients could result in a loss of clients, which would negatively affect our financial condition and operations. Other Operational Risks Our risk management framework may not be effective in mitigating risks and losses to us. Our risk management framework is comprised of various processes, systems and strategies, and is designed to manage the types of risk to which we are subject, including, among others, credit, market, liquidity, interest rate and compliance. Our framework also includes financial or other modeling methodologies that involve management assumptions and judgment. Our risk management framework may not be effective under all circumstances and may not adequately mitigate any risk of loss to us. If our framework is not effective, we could suffer unexpected losses and our financial condition, operations or business prospects could be materially and adversely affected. We may also be subject to potentially adverse regulatory consequences. We are subject to certain operating risks, related to client or employee fraud, which could harm our reputation and business. Employee error, or employee or client misconduct, could subject us to financial losses or regulatory sanctions and seriously harm our reputation. Misconduct by our employees could include hiding unauthorized activities from us, improper or unauthorized activities on behalf of our clients or improper use of confidential information. It is not always possible to prevent employee error and misconduct, and the precautions we take to prevent and detect this activity may not be effective in all cases. Employee error could also subject us to financial claims for negligence. If our internal controls fail to prevent or detect an occurrence, or if any resulting loss is not insured, excess insurance coverage is denied or not available, it could have a material adverse effect on our financial condition and operations. We depend on the accuracy and completeness of information about clients and counterparties. In deciding whether to extend credit or enter into other transactions with clients and counterparties, we may rely on information furnished to us by or on behalf of clients and counterparties, including financial statements and other financial information. We also may rely on representations of clients and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. In deciding whether to extend credit, we may rely upon our clients’ representations that their financial statements conform to U.S. generally accepted accounting principles, or GAAP, and present fairly, in all material respects, the financial condition, operations and cash flows of the client. We also may rely on client representations and certifications, or other auditors’ reports, with respect to the business and financial condition of our clients. Our financial condition, operations, financial reporting and reputation could be negatively affected if we rely on materially misleading, false, inaccurate or fraudulent information provided by or about clients and counterparties. Catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, floods, prolonged drought, and pandemics may adversely affect the general economy, financial and capital markets, specific industries, and the Bank. The Bank has significant operations and a significant customer base in regions where natural and other disasters may occur. These regions are known for being vulnerable to natural disasters and other risks, such as earthquakes, fires, floods, and prolonged drought. These types of natural catastrophic events at times have disrupted the local economy, the Bank’s business and clients, and could pose physical risks to the Bank’s property. In addition, catastrophic events, such as natural disasters or global pandemics, occurring in other regions of the world may have an impact on the Bank’s clients and in turn on the Bank. Although we have business continuity and disaster recovery programs in place, a significant catastrophic event could materially adversely affect the Bank’s operating results. The physical effects of climate change, as well as governmental and societal responses to climate change could materially adversely affect our operations, businesses and customers. There is increasing concern over the risks of climate change and related environmental sustainability matters. The physical effects of climate change include rising average global temperatures, rising sea levels and an increase in the frequency and severity of extreme weather events and natural disasters, including droughts, wildfires, floods, hurricanes and tornados. Most of the Company’s operations and customers are located in California, which could be adversely impacted by severe weather events. Agriculture is especially dependent on climate, and climate impacts could include shifting average growing conditions, increased climate and weather variability, decreases in available water sources, and more uncertainty in predicting climate and weather conditions, any or all of which could have a particularly adverse impact on our agricultural customers. Additional legislation and regulatory requirements and changes in consumer preferences, including those associated with the transition to a low-carbon economy, could increase expenses of, or otherwise adversely affect, the Company, its businesses or its customers. Our customers and we may face cost increases, asset value reductions, operating process changes, reduced availability of insurance, and the like, because of governmental actions or societal responses to climate change. New and/or more stringent regulatory requirements relating to climate change or environmental sustainability could materially affect the Company’s results of operations by increasing our compliance costs. Regulatory changes or market shifts to low-carbon products could also affect the creditworthiness of some of our customers or reduce the value of assets securing loans, which may require the Company to adjust our lending portfolios and business strategies. Risks Related to Our Regulatory Environment We are subject to regulation, which increases the cost and expense of regulatory compliance, and may restrict our growth and our ability to acquire other financial institutions. Supervision, regulation, and examination of the Company and the Bank by the bank regulatory agencies are intended primarily for the protection of consumers, bank clients and the Deposit Insurance Fund of the FDIC, rather than holders of our common shares. As a bank holding company under federal law, we are subject to regulation under the BHCA, and the examination and reporting requirements of the FRB. In addition to supervising and examining us, the FRB, through its adoption of regulations implementing the BHCA, places certain restrictions on the permissible activities for bank holding companies. Changes in the number or scope of permissible activities could have an adverse effect on our ability to realize our strategic goals. As a California state-chartered bank that |
Item 1B. | Unresolved Staff Comments |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Year Ended December 31, 2022 | ||||||||||||||||
High | Low | Close | Dividend Declared | |||||||||||||
First quarter | $ | 960 | $ | 913 | $ | 950 | $ | - | ||||||||
Second quarter | 960 | 914 | 927 | 7.85 | ||||||||||||
Third quarter | 975 | 922 | 956 | - | ||||||||||||
Fourth quarter | 1,088 | 952 | 1,050 | 8.30 |
Year Ended December 31, 2021 | ||||||||||||||||
High | Low | Close | Dividend Declared | |||||||||||||
First quarter | $ | 788 | $ | 731 | $ | 778 | $ | - | ||||||||
Second quarter | 925 | 773 | 862 | 7.50 | ||||||||||||
Third quarter | 920 | 862 | 897 | - | ||||||||||||
Fourth quarter | 1,156 | 897 | 960 | 7.80 |
Calendar Quarter | High | Low | Close | Cash Dividends Declared (Per Share) | |||||||||||||
2017 | Fourth quarter | $ | 689 | $ | 635 | $ | 676 | $ | 6.80 | ||||||||
Third quarter | 645 | 605 | 639 | - | |||||||||||||
Second quarter | 630 | 595 | 620 | 6.75 | |||||||||||||
First quarter | 640 | 595 | 605 | - |
Calendar Quarter | High | Low | Close | Cash Dividends Declared (Per Share) | |||||||||||||
2016 | Fourth quarter | $ | 650 | $ | 595 | $ | 622 | $ | 6.55 | ||||||||
Third quarter | 600 | 550 | 596 | - | |||||||||||||
Second quarter | 645 | 501 | 579 | 6.55 | |||||||||||||
First quarter | 644 | 501 | 544 | - |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares that may yet purchased under the plans or programs (In thousands) (1) | ||||||||||||
Total 1st Quarter 2022 | 4,500 | $ | 945.00 | 4,500 | $ | 15,748 | ||||||||||
Total 2nd Quarter 2022 | 7,956 | 954.32 | 7,956 | 8,155 | ||||||||||||
Total 3rd Quarter 2022 | 6,368 | 951.68 | 6,368 | 2,095 | ||||||||||||
October 1, 2022 to October 31, 2022 | 1,465 | $ | 962.22 | 1,465 | $ | 685 | ||||||||||
November 1, 2022 to November 30, 2022 | 709 | 973.47 | 709 | 19,995 | ||||||||||||
December 1, 2022 to December 31, 2022 | 311 | 979.84 | 311 | 19,690 | ||||||||||||
Total 4th Quarter 2022 | 2,485 | $ | 967.64 | 2,485 | $ | 19,690 | ||||||||||
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Total 2022 | 21,309 | $ | 953.12 | 21,309 | $ | 19,690 | ||||||||||
Item 6. |
Summary of Income: | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Total Interest Income | $ | 114,612 | $ | 99,266 | $ | 90,075 | $ | 81,521 | $ | 76,531 | ||||||||||
Total Interest Expense | 6,289 | 4,196 | 3,325 | 2,813 | 2,891 | |||||||||||||||
Net Interest Income | 108,323 | 95,070 | 86,750 | 78,708 | 73,640 | |||||||||||||||
Provision for Credit Losses | 2,850 | 6,335 | 750 | 1,175 | 425 | |||||||||||||||
Net Interest Income After Provision for Credit Losses | 105,473 | 88,735 | 86,000 | 77,533 | 73,215 | |||||||||||||||
Total Non-Interest Income | 16,762 | 15,257 | 14,575 | 14,329 | 15,937 | |||||||||||||||
Total Non-Interest Expense | 67,754 | 58,172 | 56,259 | 51,366 | 50,870 | |||||||||||||||
Income Before Income Taxes | 54,481 | 45,820 | 44,316 | 40,496 | 38,282 | |||||||||||||||
Provision for Income Taxes | 26,111 | 16,097 | 16,924 | 15,094 | 14,221 | |||||||||||||||
Net Income | $ | 28,370 | $ | 29,723 | $ | 27,392 | $ | 25,402 | $ | 24,061 | ||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Total Assets | $ | 3,075,452 | $ | 2,922,121 | $ | 2,615,345 | $ | 2,360,551 | $ | 2,076,073 | ||||||||||
Loans & Leases | 2,215,295 | 2,177,601 | 1,996,359 | 1,712,244 | 1,388,236 | |||||||||||||||
Allowance for Credit Losses | 50,342 | 47,919 | 41,523 | 35,401 | 34,274 | |||||||||||||||
Investment Securities | 536,056 | 506,372 | 430,533 | 430,405 | 473,144 | |||||||||||||||
Deposits | 2,723,228 | 2,581,711 | 2,277,532 | 2,064,073 | 1,807,691 | |||||||||||||||
Shareholders' Equity | 299,660 | 279,981 | 251,835 | 233,178 | 209,904 | |||||||||||||||
Selected Ratios: | ||||||||||||||||||||
Return on Average Assets | 0.94 | % | 1.12 | % | 1.12 | % | 1.17 | % | 1.21 | % | ||||||||||
Return on Average Equity | 9.66 | % | 11.17 | % | 11.21 | % | 11.43 | % | 11.54 | % | ||||||||||
Dividend Payout Ratio | 38.71 | % | 35.25 | % | 37.08 | % | 39.05 | % | 40.41 | % | ||||||||||
Average Loans & Leases to Average Deposits | 82.18 | % | 88.63 | % | 84.44 | % | 79.99 | % | 74.28 | % | ||||||||||
Average Equity to Average Assets | 9.77 | % | 10.05 | % | 10.02 | % | 10.28 | % | 10.52 | % | ||||||||||
Period-end Shareholders' Equity to Total Assets | 9.74 | % | 9.58 | % | 9.63 | % | 9.88 | % | 10.11 | % | ||||||||||
Basic Per Share Data: | ||||||||||||||||||||
Net Income (1) | $ | 35.03 | $ | 37.44 | $ | 34.82 | $ | 32.64 | $ | 30.93 | ||||||||||
Cash Dividends Per Share | $ | 13.55 | $ | 13.10 | $ | 12.90 | $ | 12.70 | $ | 12.50 |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
◾ | changes in general economic conditions, either nationally, in California, or in our local markets; |
◾ | inflation, changes in interest rates, securities market volatility and monetary fluctuations; |
◾ | increases in competitive pressures among financial institutions and businesses offering similar products and services; |
◾ | the future impact of the COVID-19 virus; |
◾ | higher defaults in our loan portfolio than we expect; |
◾ | changes in management’s estimate of the adequacy of the allowance for credit losses; |
◾ | risks associated with our growth and expansion strategy and related costs; |
◾ | increased lending risks associated with our high concentration of real estate loans; |
◾ | legislative or regulatory changes or changes in accounting principles, policies or guidelines; |
◾ | technological changes; |
◾ | failure to raise the debt limit on U.S. debt; |
◾ | regulatory or judicial proceedings; and |
◾ | other factors and risks including those described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K. |
Financial Performance Indicator | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Pre Tax Income | $ | 54,481 | $ | 45,820 | $ | 44,316 | $ | 40,496 | $ | 38,282 | ||||||||||
Income Tax Expense | 26,111 | 16,097 | 16,924 | 15,094 | 14,221 | |||||||||||||||
Effect of Income Tax Rate Change | ||||||||||||||||||||
DTA Re-measurement | (6,300 | ) | - | - | - | - | ||||||||||||||
Adjusted Income Tax Expense | 19,811 | 16,097 | 16,924 | 15,094 | 14,221 | |||||||||||||||
Non-GAAP Adjusted Net Income | 34,670 | 29,723 | 27,392 | 25,402 | 24,061 | |||||||||||||||
Effect of Income Tax Rate Change | ||||||||||||||||||||
DTA Re-measurement | (6,300 | ) | - | - | - | - | ||||||||||||||
Net Income (See Note 1) | $ | 28,370 | $ | 29,723 | $ | 27,392 | $ | 25,402 | $ | 24,061 | ||||||||||
Total Assets | 3,075,452 | 2,922,121 | 2,615,345 | 2,360,551 | 2,076,073 | |||||||||||||||
Total Loans & Leases | 2,215,295 | 2,177,601 | 1,996,359 | 1,712,244 | 1,388,236 | |||||||||||||||
Total Deposits | 2,723,228 | 2,581,711 | 2,277,532 | 2,064,073 | 1,807,691 | |||||||||||||||
Total Shareholders’ Equity | 299,660 | 279,981 | 251,835 | 233,178 | 209,904 | |||||||||||||||
Total Risk-Based Capital Ratio | 13.07 | % | 12.80 | % | 12.23 | % | 12.93 | % | 13.99 | % | ||||||||||
Non-Performing Loans as a % of Total Loans | 0.00 | % | 0.14 | % | 0.11 | % | 0.13 | % | 0.19 | % | ||||||||||
Substandard Loans as a % of Total Loans | 0.40 | % | 0.29 | % | 0.31 | % | 0.21 | % | 0.41 | % | ||||||||||
Net Charge-Offs (Recoveries) to Average Loans | 0.02 | % | 0.00 | % | (0.30 | %) | 0.00 | % | 0.03 | % | ||||||||||
Loan Loss Allowance as a % of Total Loans | 2.27 | % | 2.19 | % | 2.07 | % | 2.06 | % | 2.46 | % | ||||||||||
Return on Average Assets | 0.94 | % | 1.12 | % | 1.12 | % | 1.17 | % | 1.21 | % | ||||||||||
Adjusted Return on Average Assets | 1.15 | % | 1.12 | % | 1.12 | % | 1.17 | % | 1.21 | % | ||||||||||
Return on Average Equity | 9.66 | % | 11.17 | % | 11.21 | % | 11.43 | % | 11.54 | % | ||||||||||
Adjusted Return on Average Equity | 11.79 | % | 11.17 | % | 11.21 | % | 11.43 | % | 11.54 | % | ||||||||||
Earnings Per Share | 35.03 | 37.44 | 34.82 | 32.64 | 30.93 | |||||||||||||||
Adjusted Earnings Per Share | 42.81 | 37.44 | 34.82 | 32.64 | 30.93 | |||||||||||||||
Cash Dividends Per Share | 13.55 | 13.10 | 12.90 | 12.70 | 12.50 | |||||||||||||||
Cash Dividends Declared | 10,982 | 10,478 | 10,157 | 9,919 | 9,723 |
Years Ended December 31 | ||||||||||||
(Dollars in thousands, except per share data) | 2022 | 2021 | 2020 | |||||||||
Selected Income Statement Information: | ||||||||||||
Interest income | $ | 198,413 | $ | 165,268 | $ | 159,294 | ||||||
Interest expense | 4,840 | 4,332 | 9,491 | |||||||||
Net interest income | 193,573 | 160,936 | 149,803 | |||||||||
Provision for credit losses | 6,450 | 1,910 | 4,500 | |||||||||
Net interest income after provision for credit losses | 187,123 | 159,026 | 145,303 | |||||||||
Non-interest income | 6,178 | 21,056 | 15,054 | |||||||||
Non-interest expense | 93,560 | 91,761 | 82,406 | |||||||||
Income before income tax expense | 99,741 | 88,321 | 77,951 | |||||||||
Income tax expense | 24,651 | 21,985 | 19,217 | |||||||||
Net income | $ | 75,090 | $ | 66,336 | $ | 58,734 | ||||||
Selected financial ratios: | ||||||||||||
Basic and diluted earnings per share | $ | 96.55 | $ | 84.01 | $ | 74.03 | ||||||
Cash dividends per common share | 16.15 | 15.30 | 14.75 | |||||||||
Dividend ratio | 16.73 | % | 18.21 | % | 19.92 | % | ||||||
Net interest margin | 3.80 | % | 3.46 | % | 3.88 | % | ||||||
Non-interest income to average assets | 0.12 | % | 0.43 | % | 0.37 | % | ||||||
Non-interest expense to average assets | 1.75 | % | 1.87 | % | 2.00 | % | ||||||
Efficiency ratio | 46.84 | % | 50.42 | % | 49.99 | % | ||||||
Return on average assets | 1.41 | % | 1.35 | % | 1.43 | % | ||||||
Return on average equity | 16.04 | % | 15.00 | % | 14.60 | % | ||||||
Net charge-offs (recoveries) to average loans | 0.01 | % | (0.01 | %) | 0.02 | % |
As of December 31, | ||||||||||||
(Dollars in thousands, except per share data) | 2022 | 2021 | 2020 | |||||||||
Selected Balance Sheet Information: | ||||||||||||
Cash and cash equivalents | $ | 588,257 | $ | 715,460 | $ | 383,837 | ||||||
Investment securities | 997,817 | 1,007,506 | 876,665 | |||||||||
Gross loans held for investment | 3,512,361 | 3,237,177 | 3,099,592 | |||||||||
Total assets | 5,327,399 | 5,177,720 | 4,550,453 | |||||||||
Total deposits | 4,759,269 | 4,640,152 | 4,060,267 | |||||||||
Shareholders' equity | 485,308 | 463,136 | 423,665 | |||||||||
Average Balances: | ||||||||||||
Average earning assets | 5,091,684 | 4,656,337 | 3,861,070 | |||||||||
Average assets | 5,341,901 | 4,913,999 | 4,112,537 | |||||||||
Average shareholders' equity | 468,001 | 442,246 | 402,329 | |||||||||
Selected financial ratios: | ||||||||||||
Book value per share | $ | 631.63 | $ | 586.51 | $ | 536.53 | ||||||
Tangible book value per share | $ | 613.42 | $ | 568.04 | $ | 517.28 | ||||||
Allowance for credit losses to total loans | 1.90 | % | 1.88 | % | 1.89 | % | ||||||
Non-performing assets to total assets | 0.03 | % | 0.03 | % | 0.03 | % | ||||||
Loans held for investment to deposits | 73.80 | % | 69.76 | % | 76.34 | % | ||||||
Capital ratios: | ||||||||||||
Tier 1 leverage capital | 9.36 | % | 8.92 | % | 9.13 | % | ||||||
Total risk-based capital | 13.06 | % | 13.19 | % | 12.59 | % | ||||||
Average equity to average assets | 8.76 | % | 9.00 | % | 9.78 | % | ||||||
Tangible common equity to tangible assets | 8.87 | % | 8.69 | % | 9.01 | % |
Year ended December 31, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 704,082 | $ | 12,102 | 1.72 | % | $ | 666,167 | $ | 902 | 0.14 | % | ||||||||||||
Investment securities:(1) | ||||||||||||||||||||||||
Taxable securities | 1,044,954 | 19,678 | 1.88 | % | 838,710 | 14,646 | 1.75 | % | ||||||||||||||||
Non-taxable securities(2) | 48,168 | 1,569 | 3.26 | % | 52,384 | 1,648 | 3.15 | % | ||||||||||||||||
Total investment securities | 1,093,122 | 21,247 | 1.94 | % | 891,094 | 16,294 | 1.83 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,202,548 | 58,966 | 4.90 | % | 1,037,554 | 53,298 | 5.14 | % | ||||||||||||||||
Agricultural | 705,222 | 35,010 | 4.96 | % | 641,086 | 29,544 | 4.61 | % | ||||||||||||||||
Residential and home equity | 369,619 | 14,551 | 3.94 | % | 339,345 | 12,717 | 3.75 | % | ||||||||||||||||
Construction | 182,523 | 9,788 | 5.36 | % | 182,722 | 7,965 | 4.36 | % | ||||||||||||||||
Total real estate | 2,459,912 | 118,315 | 4.81 | % | 2,200,707 | 103,524 | 4.70 | % | ||||||||||||||||
Commercial & industrial | 440,510 | 22,452 | 5.10 | % | 373,497 | 16,935 | 4.53 | % | ||||||||||||||||
Agricultural | 262,461 | 14,084 | 5.37 | % | 233,544 | 10,385 | 4.45 | % | ||||||||||||||||
Commercial leases | 94,040 | 5,702 | 6.06 | % | 98,056 | 5,485 | 5.59 | % | ||||||||||||||||
Consumer and other | 22,008 | 3,469 | 15.76 | % | 178,535 | 10,879 | 6.09 | % | ||||||||||||||||
Total loans and leases | 3,278,931 | 164,022 | 5.00 | % | 3,084,339 | 147,208 | 4.77 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 1,042 | 6.70 | % | 14,737 | 864 | 5.86 | % | ||||||||||||||||
Total interest earning assets | 5,091,684 | 198,413 | 3.90 | % | 4,656,337 | 165,268 | 3.55 | % | ||||||||||||||||
Allowance for credit losses | (62,588 | ) | (60,059 | ) | ||||||||||||||||||||
Non-interest earning assets | 312,805 | 317,721 | ||||||||||||||||||||||
Total average assets | $ | 5,341,901 | $ | 4,913,999 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,120,198 | 1,497 | 0.13 | % | $ | 1,024,009 | 1,128 | 0.11 | % | ||||||||||||||
Savings and money market accounts | 1,542,310 | 1,981 | 0.13 | % | 1,352,258 | 1,458 | 0.11 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 157,623 | 460 | 0.29 | % | 170,040 | 701 | 0.41 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 215,044 | 411 | 0.19 | % | 235,746 | 730 | 0.31 | % | ||||||||||||||||
Total interest bearing deposits | 3,035,175 | 4,349 | 0.14 | % | 2,782,053 | 4,017 | 0.14 | % | ||||||||||||||||
Short-term borrowings | 1 | - | 0.00 | % | 1 | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 491 | 4.76 | % | 10,310 | 315 | 3.06 | % | ||||||||||||||||
Total interest bearing liabilities | 3,045,486 | 4,840 | 0.16 | % | 2,792,364 | 4,332 | 0.16 | % | ||||||||||||||||
Non-interest bearing deposits | 1,751,797 | 1,610,611 | ||||||||||||||||||||||
Total funding | 4,797,283 | 4,840 | 0.10 | % | 4,402,975 | 4,332 | 0.10 | % | ||||||||||||||||
Other non-interest bearing liabilities | 76,617 | 68,778 | ||||||||||||||||||||||
Shareholders' equity | 468,001 | 442,246 | ||||||||||||||||||||||
Total average liabilities and shareholders' equity | $ | 5,341,901 | $ | 4,913,999 | ||||||||||||||||||||
Net interest income | $ | 193,573 | $ | 160,936 | ||||||||||||||||||||
Interest rate spread | 3.74 | % | 3.39 | % | ||||||||||||||||||||
Net interest margin(4) | 3.80 | % | 3.46 | % | ||||||||||||||||||||
(1) | Excludes average unrealized (losses) gains of ($24.5) million and $3.4 million for the years ended December 31, 2022, and 2021, respectively, which are included in non-interest earning assets. |
(2) | The average yield does not include the federal tax benefits at an assumed effective yield of 26% related to income earned on tax-exempt municipal securities totaling $415,000 and $436,000 for the years ended December 31, 2022, and 2021, respectively. |
(3) | Loan interest income includes loan fees of $11.6 million and $17.0 million for the years ended December 31, 2022 and 2021, respectively. |
(4) | Net interest margin is computed by dividing net interest income by average interest earning assets. |
Year Ended December 31, 2017 | ||||||||||||
Assets | Balance | Interest | Rate | |||||||||
Interest Bearing Deposits with Banks | $ | 176,283 | $ | 2,060 | 1.17 | % | ||||||
Investment Securities: | ||||||||||||
U.S. Treasuries | 81,833 | 891 | 1.09 | % | ||||||||
U.S. Govt SBA | 33,255 | 522 | 1.57 | % | ||||||||
Government Agency & Government-Sponsored Entities | 3,104 | 88 | 2.84 | % | ||||||||
Obligations of States and Political Subdivisions - Non-Taxable | 56,484 | 2,676 | 4.74 | % | ||||||||
Mortgage Backed Securities | 287,114 | 6,595 | 2.30 | % | ||||||||
Other | 1,170 | 27 | 2.31 | % | ||||||||
Total Investment Securities | 462,960 | 10,799 | 2.33 | % | ||||||||
Loans & Leases | ||||||||||||
Real Estate | 1,556,122 | 73,710 | 4.74 | % | ||||||||
Home Equity Lines and Loans | 32,606 | 1,658 | 5.08 | % | ||||||||
Agricultural | 263,711 | 12,059 | 4.57 | % | ||||||||
Commercial | 238,650 | 11,117 | 4.66 | % | ||||||||
Consumer | 5,557 | 289 | 5.20 | % | ||||||||
Other | 1,653 | 37 | 2.24 | % | ||||||||
Leases | 80,389 | 3,812 | 4.74 | % | ||||||||
Total Loans & Leases | 2,178,688 | 102,682 | 4.71 | % | ||||||||
Total Earning Assets | 2,817,931 | $ | 115,541 | 4.10 | % | |||||||
Unrealized Gain on Securities Available-for-Sale | 674 | |||||||||||
Allowance for Credit Losses | (49,439 | ) | ||||||||||
Cash and Due From Banks | 45,063 | |||||||||||
All Other Assets | 192,978 | |||||||||||
Total Assets | $ | 3,007,207 | ||||||||||
Liabilities & Shareholders' Equity | ||||||||||||
Interest Bearing Deposits | ||||||||||||
Interest Bearing DDA | $ | 533,480 | $ | 1,053 | 0.20 | % | ||||||
Savings and Money Market | 812,127 | 1,303 | 0.16 | % | ||||||||
Time Deposits | 565,412 | 3,509 | 0.62 | % | ||||||||
Total Interest Bearing Deposits | 1,911,019 | 5,865 | 0.31 | % | ||||||||
Federal Home Loan Bank Advances | 1 | - | 0.00 | % | ||||||||
Subordinated Debt | 10,310 | 424 | 4.11 | % | ||||||||
Total Interest Bearing Liabilities | 1,921,330 | $ | 6,289 | 0.33 | % | |||||||
Interest Rate Spread | 3.77 | % | ||||||||||
Demand Deposits | 740,088 | |||||||||||
All Other Liabilities | 51,979 | |||||||||||
Total Liabilities | 2,713,397 | |||||||||||
Shareholders' Equity | 293,810 | |||||||||||
Total Liabilities & Shareholders' Equity | $ | 3,007,207 | ||||||||||
Impact of Non-Interest Bearing Deposits and Other Liabilities | 0.10 | % | ||||||||||
Net Interest Income and Margin on Total Earning Assets | 109,252 | 3.88 | % | |||||||||
Tax Equivalent Adjustment | (929 | ) | ||||||||||
Net Interest Income | $ | 108,323 | 3.84 | % |
Year Ended December 31, 2016 | ||||||||||||
Assets | Balance | Interest | Rate | |||||||||
Interest Bearing Deposits with Banks | $ | 53,659 | $ | 287 | 0.53 | % | ||||||
Investment Securities: | ||||||||||||
U.S. Treasuries | 60,191 | 572 | 0.95 | % | ||||||||
U.S. Govt SBA | 2,323 | 55 | 2.37 | % | ||||||||
Government Agency & Government-Sponsored Entities | 25,624 | 197 | 0.77 | % | ||||||||
Obligations of States and Political Subdivisions - Non-Taxable | 60,332 | 2,920 | 4.84 | % | ||||||||
Mortgage Backed Securities | 215,528 | 4,663 | 2.16 | % | ||||||||
Other | 781 | 18 | 2.30 | % | ||||||||
Total Investment Securities | 364,779 | 8,425 | 2.31 | % | ||||||||
Loans & Leases | ||||||||||||
Real Estate | 1,460,300 | 66,969 | 4.59 | % | ||||||||
Home Equity Lines and Loans | 31,939 | 1,562 | 4.89 | % | ||||||||
Agricultural | 266,053 | 10,908 | 4.10 | % | ||||||||
Commercial | 216,593 | 8,886 | 4.10 | % | ||||||||
Consumer | 4,987 | 307 | 6.16 | % | ||||||||
Other | 1,943 | 44 | 2.26 | % | ||||||||
Leases | 68,353 | 2,894 | 4.23 | % | ||||||||
Total Loans & Leases | 2,050,168 | 91,570 | 4.47 | % | ||||||||
Total Earning Assets | 2,468,606 | $ | 100,282 | 4.06 | % | |||||||
Unrealized Gain on Securities Available-for-Sale | 4,895 | |||||||||||
Allowance for Credit Losses | (43,684 | ) | ||||||||||
Cash and Due From Banks | 44,385 | |||||||||||
All Other Assets | 173,313 | |||||||||||
Total Assets | $ | 2,647,515 | ||||||||||
Liabilities & Shareholders' Equity | ||||||||||||
Interest Bearing Deposits | ||||||||||||
Interest Bearing DDA | $ | 423,305 | $ | 526 | 0.12 | % | ||||||
Savings and Money Market | 725,127 | 1,087 | 0.15 | % | ||||||||
Time Deposits | 513,105 | 2,194 | 0.43 | % | ||||||||
Total Interest Bearing Deposits | 1,661,537 | 3,807 | 0.23 | % | ||||||||
Federal Home Loan Bank Advances | 3,924 | 18 | 0.46 | % | ||||||||
Subordinated Debt | 10,310 | 371 | 3.60 | % | ||||||||
Total Interest Bearing Liabilities | 1,675,771 | $ | 4,196 | 0.25 | % | |||||||
Interest Rate Spread | 3.81 | % | ||||||||||
Demand Deposits | 651,709 | |||||||||||
All Other Liabilities | 53,950 | |||||||||||
Total Liabilities | 2,381,430 | |||||||||||
Shareholders' Equity | 266,085 | |||||||||||
Total Liabilities & Shareholders' Equity | $ | 2,647,515 | ||||||||||
Impact of Non-Interest Bearing Deposits and Other Liabilities | 0.08 | % | ||||||||||
Net Interest Income and Margin on Total Earning Assets | 96,086 | 3.89 | % | |||||||||
Tax Equivalent Adjustment | (1,016 | ) | ||||||||||
Net Interest Income | $ | 95,070 | 3.85 | % |
Year Ended December 31, 2015 | ||||||||||||
Assets | Balance | Interest | Rate | |||||||||
Interest Bearing Deposits with Banks | $ | 66,729 | $ | 172 | 0.26 | % | ||||||
Investment Securities: | ||||||||||||
U.S. Treasuries | 34,040 | 451 | 1.32 | % | ||||||||
Government Agency & Government-Sponsored Entities | 36,882 | 185 | 0.50 | % | ||||||||
Obligations of States and Political Subdivisions - Non-Taxable | 62,016 | 3,121 | 5.03 | % | ||||||||
Mortgage Backed Securities | 260,579 | 5,641 | 2.16 | % | ||||||||
Other | 5,323 | 34 | 0.64 | % | ||||||||
Total Investment Securities | 398,840 | 9,432 | 2.36 | % | ||||||||
Loans & Leases | ||||||||||||
Real Estate | 1,251,061 | 58,701 | 4.69 | % | ||||||||
Home Equity Lines and Loans | 31,918 | 1,709 | 5.35 | % | ||||||||
Agricultural | 229,850 | 9,201 | 4.00 | % | ||||||||
Commercial | 229,449 | 9,374 | 4.09 | % | ||||||||
Consumer | 4,820 | 266 | 5.52 | % | ||||||||
Other | 604 | 14 | 2.32 | % | ||||||||
Leases | 54,763 | 2,293 | 4.19 | % | ||||||||
Total Loans & Leases | 1,802,465 | 81,558 | 4.52 | % | ||||||||
Total Earning Assets | 2,268,034 | $ | 91,162 | 4.02 | % | |||||||
Unrealized Gain on Securities Available-for-Sale | 4,483 | |||||||||||
Allowance for Credit Losses | (38,560 | ) | ||||||||||
Cash and Due From Banks | 38,419 | |||||||||||
All Other Assets | 165,348 | |||||||||||
Total Assets | $ | 2,437,724 | ||||||||||
Liabilities & Shareholders' Equity | ||||||||||||
Interest Bearing Deposits | ||||||||||||
Interest Bearing DDA | $ | 350,917 | $ | 243 | 0.07 | % | ||||||
Savings and Money Market | 690,561 | 1,155 | 0.17 | % | ||||||||
Time Deposits | 487,560 | 1,591 | 0.33 | % | ||||||||
Total Interest Bearing Deposits | 1,529,038 | 2,989 | 0.20 | % | ||||||||
Federal Home Loan Bank Advances | 3,937 | 7 | 0.18 | % | ||||||||
Subordinated Debt | 10,310 | 329 | 3.19 | % | ||||||||
Total Interest Bearing Liabilities | 1,543,285 | $ | 3,325 | 0.22 | % | |||||||
Interest Rate Spread | 3.80 | % | ||||||||||
Demand Deposits | 605,592 | |||||||||||
All Other Liabilities | 44,476 | |||||||||||
Total Liabilities | 2,193,353 | |||||||||||
Shareholders' Equity | 244,371 | |||||||||||
Total Liabilities & Shareholders' Equity | $ | 2,437,724 | ||||||||||
Impact of Non-Interest Bearing Deposits and Other Liabilities | 0.07 | % | ||||||||||
Net Interest Income and Margin on Total Earning Assets | 87,837 | 3.87 | % | |||||||||
Tax Equivalent Adjustment | (1,087 | ) | ||||||||||
Net Interest Income | $ | 86,750 | 3.82 | % |
2017 versus 2016 | ||||||||||||
Amount of Increase | ||||||||||||
(Decrease) Due to Change in: | ||||||||||||
Interest Earning Assets | Volume | Rate | Net Chg. | |||||||||
Interest Bearing Deposits with Banks | $ | 1,168 | $ | 605 | $ | 1,773 | ||||||
Investment Securities: | ||||||||||||
U.S. Treasuries | 227 | 92 | 319 | |||||||||
U.S. Govt SBA | 492 | (25 | ) | 467 | ||||||||
Government Agency & Government-Sponsored Entities | (287 | ) | 178 | (109 | ) | |||||||
Obligations of States and Political Subdivisions - Non-Taxable | (237 | ) | (7 | ) | (244 | ) | ||||||
Mortgage Backed Securities | 1,629 | 303 | 1,932 | |||||||||
Other | 8 | 1 | 9 | |||||||||
Total Investment Securities | 1,832 | 542 | 2,374 | |||||||||
Loans & Leases: | ||||||||||||
Real Estate | 4,491 | 2,250 | 6,741 | |||||||||
Home Equity Lines and Loans | 33 | 63 | 96 | |||||||||
Agricultural | (97 | ) | 1,248 | 1,151 | ||||||||
Commercial | 957 | 1,274 | 2,231 | |||||||||
Consumer | 33 | (51 | ) | (18 | ) | |||||||
Other | (6 | ) | (1 | ) | (7 | ) | ||||||
Leases | 546 | 372 | 918 | |||||||||
Total Loans & Leases | 5,957 | 5,155 | 11,112 | |||||||||
Total Earning Assets | 8,957 | 6,302 | 15,259 | |||||||||
Interest Bearing Liabilities | ||||||||||||
Interest Bearing Deposits: | ||||||||||||
Interest Bearing DDA | 161 | 366 | 527 | |||||||||
Savings and Money Market | 137 | 79 | 216 | |||||||||
Time Deposits | 243 | 1,072 | 1,315 | |||||||||
Total Interest Bearing Deposits | 541 | 1,517 | 2,058 | |||||||||
Other Borrowed Funds | (9 | ) | (9 | ) | (18 | ) | ||||||
Subordinated Debt | - | 53 | 53 | |||||||||
Total Interest Bearing Liabilities | 532 | 1,561 | 2,093 | |||||||||
Total Change | $ | 8,425 | $ | 4,741 | $ | 13,166 |
2016 versus 2015 | ||||||||||||
Amount of Increase | ||||||||||||
(Decrease) Due to Change in: | ||||||||||||
Interest Earning Assets | Volume | Rate | Net Chg. | |||||||||
Interest Bearing Deposits with Banks | $ | (40 | ) | $ | 155 | $ | 115 | |||||
Investment Securities: | ||||||||||||
U.S. Treasuries | 275 | (154 | ) | 121 | ||||||||
U.S. Govt SBA | 55 | - | 55 | |||||||||
Government Agency & Government-Sponsored Entities | (68 | ) | 80 | 12 | ||||||||
Municipals - Taxable | - | - | - | |||||||||
Obligations of States and Political Subdivisions - Non-Taxable | (83 | ) | (118 | ) | (201 | ) | ||||||
Mortgage Backed Securities | (975 | ) | (3 | ) | (978 | ) | ||||||
Other | (48 | ) | 32 | (16 | ) | |||||||
Total Investment Securities | (844 | ) | (163 | ) | (1,007 | ) | ||||||
Loans & Leases: | ||||||||||||
Real Estate | 9,622 | (1,355 | ) | 8,267 | ||||||||
Home Equity Lines and Loans | 1 | (148 | ) | (147 | ) | |||||||
Agricultural | 1,479 | 228 | 1,707 | |||||||||
Commercial | (527 | ) | 39 | (488 | ) | |||||||
Consumer | 9 | 32 | 41 | |||||||||
Other | 30 | - | 30 | |||||||||
Leases | 575 | 26 | 601 | |||||||||
Total Loans & Leases | 11,189 | (1,178 | ) | 10,011 | ||||||||
Total Earning Assets | 10,305 | (1,186 | ) | 9,119 | ||||||||
Interest Bearing Liabilities | ||||||||||||
Interest Bearing Deposits: | ||||||||||||
Interest Bearing DDA | 58 | 225 | 283 | |||||||||
Savings and Money Market | 56 | (124 | ) | (68 | ) | |||||||
Time Deposits | 87 | 516 | 603 | |||||||||
Total Interest Bearing Deposits | 201 | 617 | 818 | |||||||||
Other Borrowed Funds | - | 11 | 11 | |||||||||
Subordinated Debt | - | 42 | 42 | |||||||||
Total Interest Bearing Liabilities | 201 | 670 | 871 | |||||||||
Total Change | $ | 10,104 | $ | (1,856 | ) | $ | 8,248 |
Year Ended December 31, 2022 compared with 2021 | ||||||||||||
Increase (Decrease) Due to: | ||||||||||||
(Dollars in thousands) | Volume | Rate | Net | |||||||||
Interest income: | ||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 54 | $ | 11,146 | $ | 11,200 | ||||||
Investment securities: | ||||||||||||
Taxable securities | 3,816 | 1,216 | 5,032 | |||||||||
Non-taxable securities | (136 | ) | 57 | (79 | ) | |||||||
Total investment securities | 3,680 | 1,273 | 4,953 | |||||||||
Loans: | ||||||||||||
Real estate: | ||||||||||||
Commercial | 7,805 | (2,137 | ) | 5,668 | ||||||||
Agricultural | 3,081 | 2,385 | 5,466 | |||||||||
Residential and home equity | 1,168 | 666 | 1,834 | |||||||||
Construction | (9 | ) | 1,832 | 1,823 | ||||||||
Total real estate | 12,045 | 2,746 | 14,791 | |||||||||
Commercial & industrial | 3,261 | 2,256 | 5,517 | |||||||||
Agricultural | 1,385 | 2,314 | 3,699 | |||||||||
Commercial leases | (231 | ) | 448 | 217 | ||||||||
Consumer and other(1) | (14,475 | ) | 7,065 | (7,410 | ) | |||||||
Total loans and leases | 1,986 | 14,828 | 16,814 | |||||||||
Non-marketable securities | 49 | 129 | 178 | |||||||||
Total interest income | 5,769 | 27,376 | 33,145 | |||||||||
Interest expense: | ||||||||||||
Interest bearing deposits: | ||||||||||||
Demand | 113 | 256 | 369 | |||||||||
Savings and money market accounts | 222 | 301 | 523 | |||||||||
Certificates of deposit greater than $250,000 | (48 | ) | (193 | ) | (241 | ) | ||||||
Certificates of deposit less than $250,000 | (60 | ) | (259 | ) | (319 | ) | ||||||
Total interest bearing deposits | 227 | 105 | 332 | |||||||||
Subordinated debentures | 8 | 168 | 176 | |||||||||
Total interest expense | 235 | 273 | 508 | |||||||||
Net interest income | $ | 5,534 | $ | 27,103 | $ | 32,637 |
Years Ended December 31 | ||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Better / (Worse) | % Better / (Worse) | ||||||||||||
Selected Income Statement Information: | ||||||||||||||||
Interest income | $ | 198,413 | $ | 165,268 | $ | 33,145 | 20.06 | % | ||||||||
Interest expense | 4,840 | 4,332 | (508 | ) | -11.73 | % | ||||||||||
Net interest income | 193,573 | 160,936 | 32,637 | 20.28 | % | |||||||||||
Provision for credit losses | 6,450 | 1,910 | (4,540 | ) | -237.70 | % | ||||||||||
Net interest income after provision for credit losses | 187,123 | 159,026 | 28,097 | 17.67 | % | |||||||||||
Non-interest income | 6,178 | 21,056 | (14,878 | ) | -70.66 | % | ||||||||||
Non-interest expense | 93,560 | 91,761 | (1,799 | ) | -1.96 | % | ||||||||||
Income before income tax expense | 99,741 | 88,321 | 11,420 | 12.93 | % | |||||||||||
Income tax expense | 24,651 | 21,985 | (2,666 | ) | -12.13 | % | ||||||||||
Net income | $ | 75,090 | $ | 66,336 | $ | 8,754 | 13.20 | % |
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Allowance for Credit Losses Beginning of Year | $ | 47,919 | $ | 41,523 | $ | 35,401 | $ | 34,274 | $ | 34,217 | ||||||||||
Provision Charged to Expense | 2,850 | 6,335 | 750 | 1,175 | 425 | |||||||||||||||
Charge-Offs: | ||||||||||||||||||||
Commercial Real Estate | 109 | - | - | - | 6 | |||||||||||||||
Agricultural Real Estate | - | - | - | - | 575 | |||||||||||||||
Real Estate Construction | - | - | - | - | - | |||||||||||||||
Residential 1st Mortgages | 53 | 21 | - | 73 | 16 | |||||||||||||||
Home Equity Lines and Loans | 3 | 46 | - | 70 | 91 | |||||||||||||||
Agricultural | 374 | - | - | - | 23 | |||||||||||||||
Commercial | - | - | 12 | 1 | 60 | |||||||||||||||
Consumer & Other | 146 | 105 | 84 | 132 | 120 | |||||||||||||||
Total Charge-Offs | 685 | 172 | 96 | 276 | 891 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial Real Estate | 109 | 2 | 2,939 | 11 | - | |||||||||||||||
Agricultural Real Estate | - | - | - | - | - | |||||||||||||||
Real Estate Construction | - | - | 2,225 | - | - | |||||||||||||||
Residential 1st Mortgages | 40 | 26 | 8 | - | - | |||||||||||||||
Home Equity Lines and Loans | 8 | 103 | 87 | 58 | 115 | |||||||||||||||
Agricultural | 17 | - | 4 | 8 | 42 | |||||||||||||||
Commercial | 8 | 47 | 136 | 86 | 312 | |||||||||||||||
Consumer & Other | 76 | 55 | 69 | 65 | 54 | |||||||||||||||
Total Recoveries | 258 | 233 | 5,468 | 228 | 523 | |||||||||||||||
Net (Charge-Offs) Recoveries | (427 | ) | 61 | 5,372 | (48 | ) | (368 | ) | ||||||||||||
Total Allowance for Credit Losses, End of Year | $ | 50,342 | $ | 47,919 | $ | 41,523 | $ | 35,401 | $ | 34,274 | ||||||||||
Ratios: | ||||||||||||||||||||
Allowance for Credit Losses to: | ||||||||||||||||||||
Total Loans & Leases at Year End | 2.27 | % | 2.19 | % | 2.07 | % | 2.06 | % | 2.00 | % | ||||||||||
Average Loans & Leases | 2.31 | % | 2.34 | % | 2.30 | % | 2.36 | % | 2.70 | % | ||||||||||
Consolidated Net (Charge-Offs) Recoveries to: | ||||||||||||||||||||
Total Loans & Leases at Year End | (0.02 | %) | 0.00 | % | 0.27 | % | (0.00 | %) | (0.02 | %) | ||||||||||
Average Loans & Leases | (0.02 | %) | 0.00 | % | 0.30 | % | (0.00 | %) | (0.03 | %) |
December 31, 2017 | Commercial Real Estate | Agricultural Real Estate | Real Estate Construction | Residential 1st Mortgages | Home Equity Lines & Loans | Agricultural | Commercial | Consumer & Other | Leases | Unallocated | Total | |||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- January 1, 2017 | $ | 11,110 | $ | 9,450 | $ | 3,223 | $ | 865 | $ | 2,140 | $ | 7,381 | $ | 8,515 | $ | 200 | $ | 3,586 | $ | 1,449 | $ | 47,919 | ||||||||||||||||||||||
Charge-Offs | (109 | ) | - | - | (53 | ) | (3 | ) | (374 | ) | - | (146 | ) | - | - | (685 | ) | |||||||||||||||||||||||||||
Recoveries | 109 | - | - | 40 | 8 | 17 | 8 | 76 | - | - | 258 | |||||||||||||||||||||||||||||||||
Provision | (188 | ) | 2,635 | (1,377 | ) | (37 | ) | 179 | 1,135 | 674 | 79 | (223 | ) | (27 | ) | 2,850 | ||||||||||||||||||||||||||||
Ending Balance- December 31, 2017 | $ | 10,922 | $ | 12,085 | $ | 1,846 | $ | 815 | $ | 2,324 | $ | 8,159 | $ | 9,197 | $ | 209 | $ | 3,363 | $ | 1,422 | $ | 50,342 |
Allowance Allocation at December 31, | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2017 Amount | Percent of Loans in Each Category to Total Loans | 2016 Amount | Percent of Loans in Each Category to Total Loans | 2015 Amount | Percent of Loans in Each Category to Total Loans | 2014 Amount | Percent of Loans in Each Category to Total Loans | 2013 Amount | Percent of Loans in Each Category to Total Loans | ||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 10,922 | 31.1 | % | $ | 11,110 | 30.9 | % | $ | 10,063 | 30.4 | % | $ | 7,842 | 28.9 | % | $ | 5,178 | 29.5 | % | ||||||||||||||||||||
Agricultural Real Estate | 12,085 | 22.5 | % | 9,450 | 21.4 | % | 6,881 | 21.2 | % | 4,185 | 20.8 | % | 3,576 | 23.6 | % | |||||||||||||||||||||||||
Real Estate Construction | 1,846 | 4.5 | % | 3,223 | 8.1 | % | 2,485 | 7.6 | % | 1,669 | 5.6 | % | 654 | 3.0 | % | |||||||||||||||||||||||||
Residential 1st Mortgages | 815 | 11.7 | % | 865 | 11.1 | % | 789 | 10.3 | % | 1,022 | 10.0 | % | 1,108 | 10.9 | % | |||||||||||||||||||||||||
Home Equity Lines and Loans | 2,324 | 1.6 | % | 2,140 | 1.4 | % | 2,146 | 1.7 | % | 2,426 | 1.9 | % | 2,767 | 2.5 | % | |||||||||||||||||||||||||
Agricultural | 8,159 | 12.3 | % | 7,381 | 13.5 | % | 6,308 | 14.7 | % | 6,104 | 16.4 | % | 12,205 | 18.4 | % | |||||||||||||||||||||||||
Commercial | 9,197 | 12.0 | % | 8,515 | 10.0 | % | 7,836 | 10.5 | % | 8,195 | 13.5 | % | 5,697 | 10.8 | % | |||||||||||||||||||||||||
Consumer & Other | 209 | 0.3 | % | 200 | 0.3 | % | 175 | 0.3 | % | 218 | 0.3 | % | 176 | 0.4 | % | |||||||||||||||||||||||||
Leases | 3,363 | 4.0 | % | 3,586 | 3.3 | % | 3,294 | 3.3 | % | 2,211 | 2.6 | % | 639 | 0.9 | % | |||||||||||||||||||||||||
Unallocated | 1,422 | 1,449 | 1,546 | 1,529 | 2,274 | |||||||||||||||||||||||||||||||||||
Total | $ | 50,342 | 100.0 | % | $ | 47,919 | 100.0 | % | $ | 41,523 | 100.0 | % | $ | 35,401 | 100.0 | % | $ | 34,274 | 100.0 | % |
As of December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Available-for-Sale Securities | ||||||||
U.S. Treasury notes | $ | 4,964 | $ | 10,089 | ||||
U.S. Government-sponsored securities | 4,427 | 6,374 | ||||||
Mortgage-backed securities(1) | 132,528 | 251,120 | ||||||
Collateralized mortgage obligations(1) | 1,054 | 2,436 | ||||||
Corporate securities | 9,581 | - | ||||||
Other | 310 | 435 | ||||||
Total available-for-sale securities | $ | 152,864 | $ | 270,454 |
As of December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Held-to-Maturity Securities | ||||||||
Mortgage-backed securities(1) | $ | 702,858 | $ | 596,775 | ||||
Collateralized mortgage obligations(1) | 80,186 | 73,781 | ||||||
Municipal securities(2) | 61,909 | 66,496 | ||||||
Total held-to-maturity securities | $ | 844,953 | $ | 737,052 |
Investment Securities | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Debt securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,964 | 2.37 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 4,964 | 2.37 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 3 | 2.17 | % | 53 | 2.29 | % | 380 | 4.52 | % | 3,991 | 4.52 | % | 4,427 | 4.29 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 13 | 2.82 | % | 16,460 | 2.31 | % | 15,156 | 2.41 | % | 100,899 | 1.82 | % | 132,528 | 1.95 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 1,054 | 2.35 | % | 1,054 | 2.35 | % | |||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | 9,581 | 3.13 | % | - | 0.00 | % | - | 0.00 | % | 9,581 | 3.13 | % | |||||||||||||||||||||||||
Other | 310 | 4.60 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 310 | 4.60 | % | |||||||||||||||||||||||||
Total debt securities available-for-sale | $ | 5,290 | 2.50 | % | $ | 26,094 | 2.61 | % | $ | 15,536 | 2.46 | % | $ | 105,944 | 1.93 | % | $ | 152,864 | 2.11 | % |
As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 18,197 | 1.22 | % | $ | 684,661 | 1.90 | % | $ | 702,858 | 1.88 | % | ||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 80,186 | 1.80 | % | 80,186 | 1.80 | % | |||||||||||||||||||||||||
Municipal securities | 883 | 5.92 | % | 8,058 | 3.98 | % | 15,670 | 3.70 | % | 37,691 | 4.83 | % | 62,302 | 4.45 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 883 | 5.92 | % | $ | 8,058 | 3.98 | % | $ | 33,867 | 2.37 | % | $ | 802,538 | 2.03 | % | $ | 845,346 | 2.07 | % |
Available for Sale | Held to Maturity | Available for Sale | Held to Maturity | Available for Sale | Held to Maturity | |||||||||||||||||||
December 31: (in thousands) | 2017 | 2016 | 2015 | |||||||||||||||||||||
U.S. Treasury Notes | $ | 144,164 | $ | - | $ | 134,428 | $ | - | $ | 72,884 | $ | - | ||||||||||||
U.S. Government SBA | 29,380 | - | 36,314 | - | - | - | ||||||||||||||||||
Government Agency & Government Sponsored Entities | 3,128 | - | 3,241 | - | 33,251 | - | ||||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable | - | 54,460 | - | 58,109 | - | 61,396 | ||||||||||||||||||
Mortgage Backed Securities | 301,914 | - | 273,270 | - | 262,493 | - | ||||||||||||||||||
Other | 3,010 | - | 1,010 | - | 509 | - | ||||||||||||||||||
Total Book Value | $ | 481,596 | $ | 54,460 | $ | 448,263 | $ | 58,109 | $ | 369,137 | $ | 61,396 | ||||||||||||
Fair Value | $ | 481,596 | $ | 55,236 | $ | 448,263 | $ | 58,408 | $ | 369,137 | $ | 62,388 |
Investment Securities | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 5,028 | 2.33 | % | $ | 5,061 | 2.38 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 10,089 | 2.36 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 2 | 1.80 | % | 148 | 2.29 | % | 512 | 1.55 | % | 5,712 | 1.26 | % | 6,374 | 1.30 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 13 | 1.50 | % | 21,155 | 2.36 | % | 50,554 | 2.36 | % | 179,398 | 1.61 | % | 251,120 | 1.83 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 2,436 | 2.30 | % | 2,436 | 2.30 | % | |||||||||||||||||||||||||
Other | 435 | 3.31 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 435 | 3.31 | % | |||||||||||||||||||||||||
Total securities available-for-sale | $ | 5,478 | 2.41 | % | $ | 26,364 | 2.36 | % | $ | 51,066 | 2.35 | % | $ | 187,546 | 1.61 | % | $ | 270,454 | 1.84 | % |
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 10,641 | 0.41 | % | $ | 586,134 | 1.72 | % | $ | 596,775 | 1.70 | % | ||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 73,781 | 1.71 | % | 73,781 | 1.71 | % | |||||||||||||||||||||||||
Municipal securities | 308 | 1.10 | % | 8,487 | 2.19 | % | 18,433 | 3.42 | % | 39,268 | 4.52 | % | 66,496 | 3.90 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 308 | 1.10 | % | $ | 8,487 | 2.19 | % | $ | 29,074 | 2.32 | % | $ | 699,183 | 1.88 | % | $ | 737,052 | 1.90 | % |
December 31, 2017 (in thousands) | Fair Value | Average Yield | ||||||
U.S. Treasury | ||||||||
One year or less | $ | 109,935 | 1.05 | % | ||||
After one year through five years | 24,926 | 1.01 | % | |||||
After five years through ten years | 9,303 | 2.28 | % | |||||
Total U.S. Treasury Securities | 144,164 | 1.13 | % | |||||
U.S. Government SBA | ||||||||
One year or less | 44 | 2.63 | % | |||||
After one year through five years | 1,925 | 2.55 | % | |||||
After five years through ten years | 3,619 | 2.95 | % | |||||
After ten years | 23,792 | 2.33 | % | |||||
Total U.S. Government Securities | 29,380 | 2.42 | % | |||||
Government Agency & Government Sponsored Entities | ||||||||
After one year through five years | 3,128 | 2.89 | % | |||||
Total Government Agency & Government Sponsored Entities | 3,128 | 2.89 | % | |||||
Other | ||||||||
One year or less | 3,010 | 2.25 | % | |||||
Total Other Securities | 3,010 | 2.25 | % | |||||
Mortgage Backed Securities | 301,914 | 2.39 | % | |||||
Total Investment Securities Available-for-Sale | $ | 481,596 | 2.02 | % |
December 31, 2017 (in thousands) | Book Value | Average Yield | ||||||
Obligations of States and Political Subdivisions - Non-Taxable | ||||||||
One year or less | $ | 1,760 | 6.17 | % | ||||
After one year through five years | 8,659 | 4.55 | % | |||||
After five years through ten years | 14,155 | 4.10 | % | |||||
After ten years | 29,886 | 5.14 | % | |||||
Total Obligations of States and Political Subdivisions - Non-Taxable | 54,460 | 4.81 | % | |||||
Total Investment Securities Held-to-Maturity | $ | 54,460 | 4.81 | % |
December 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Gross Loans and Leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 1,328,691 | 37.73 | % | $ | 1,167,516 | 35.95 | % | ||||||||
Agricultural | 726,938 | 20.64 | % | 672,830 | 20.72 | % | ||||||||||
Residential and home equity | 387,753 | 11.01 | % | 350,581 | 10.79 | % | ||||||||||
Construction | 166,538 | 4.73 | % | 177,163 | 5.45 | % | ||||||||||
Total real estate | 2,609,920 | 74.11 | % | 2,368,090 | 72.91 | % | ||||||||||
Commercial & industrial | 478,758 | 13.59 | % | 427,799 | 13.17 | % | ||||||||||
Agricultural | 314,525 | 8.93 | % | 276,684 | 8.52 | % | ||||||||||
Commercial leases | 112,629 | 3.20 | % | 96,971 | 2.99 | % | ||||||||||
Consumer and other(1) | 5,886 | 0.17 | % | 78,367 | 2.41 | % | ||||||||||
Total gross loans and leases | $ | 3,521,718 | 100.00 | % | $ | 3,247,911 | 100.00 | % |
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||
(in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 691,639 | 31.1 | % | $ | 674,445 | 30.9 | % | $ | 609,602 | 30.4 | % | $ | 495,316 | 28.9 | % | $ | 411,037 | 29.5 | % | ||||||||||||||||||||
Agricultural Real Estate | 499,231 | 22.5 | % | 467,685 | 21.4 | % | 424,034 | 21.2 | % | 357,207 | 20.8 | % | 328,264 | 23.6 | % | |||||||||||||||||||||||||
Real Estate Construction | 100,206 | 4.5 | % | 176,462 | 8.1 | % | 151,974 | 7.6 | % | 96,519 | 5.6 | % | 41,092 | 3.0 | % | |||||||||||||||||||||||||
Residential 1st Mortgages | 260,751 | 11.7 | % | 242,247 | 11.1 | % | 206,405 | 10.3 | % | 171,880 | 10.0 | % | 151,292 | 10.9 | % | |||||||||||||||||||||||||
Home Equity Lines and Loans | 34,525 | 1.6 | % | 31,625 | 1.4 | % | 33,056 | 1.7 | % | 33,017 | 1.9 | % | 35,477 | 2.5 | % | |||||||||||||||||||||||||
Agricultural | 273,582 | 12.3 | % | 295,325 | 13.5 | % | 293,966 | 14.7 | % | 281,963 | 16.4 | % | 256,414 | 18.4 | % | |||||||||||||||||||||||||
Commercial | 265,703 | 12.0 | % | 217,577 | 10.0 | % | 210,804 | 10.5 | % | 230,819 | 13.5 | % | 150,398 | 10.8 | % | |||||||||||||||||||||||||
Consumer & Other | 6,656 | 0.3 | % | 6,913 | 0.3 | % | 6,592 | 0.3 | % | 4,719 | 0.3 | % | 5,052 | 0.4 | % | |||||||||||||||||||||||||
Leases | 88,957 | 4.0 | % | 70,986 | 3.3 | % | 65,054 | 3.3 | % | 44,217 | 2.6 | % | 12,733 | 0.9 | % | |||||||||||||||||||||||||
Total Gross Loans & Leases | 2,221,250 | 100.0 | % | 2,183,265 | 100.0 | % | 2,001,487 | 100.0 | % | 1,715,657 | 100.0 | % | 1,391,759 | 100.0 | % | |||||||||||||||||||||||||
Less: Unearned Income | 5,955 | 5,664 | 5,128 | 3,413 | 3,523 | |||||||||||||||||||||||||||||||||||
Subtotal | 2,215,295 | 2,177,601 | 1,996,359 | 1,712,244 | 1,388,236 | |||||||||||||||||||||||||||||||||||
Less: Allowance for Credit Losses | 50,342 | 47,919 | 41,523 | 35,401 | 34,274 | |||||||||||||||||||||||||||||||||||
Loans & Leases, Net | $ | 2,164,953 | $ | 2,129,682 | $ | 1,954,836 | $ | 1,676,843 | $ | 1,353,962 |
(in thousands) | One Year or Less | Over One Year to Five Years | Over Five Years | Total | ||||||||||||
Commercial Real Estate | $ | 41,785 | $ | 169,991 | $ | 473,185 | $ | 684,961 | ||||||||
Agricultural Real Estate | 12,794 | 77,619 | 408,818 | 499,231 | ||||||||||||
Real Estate Construction | 72,246 | 24,345 | 3,615 | 100,206 | ||||||||||||
Residential 1st Mortgages | 384 | 9,423 | 250,944 | 260,751 | ||||||||||||
Home Equity Lines and Loans | 12 | 743 | 33,770 | 34,525 | ||||||||||||
Agricultural | 154,670 | 91,277 | 27,635 | 273,582 | ||||||||||||
Commercial | 124,238 | 103,011 | 38,454 | 265,703 | ||||||||||||
Consumer & Other | 752 | 5,552 | 352 | 6,656 | ||||||||||||
Leases | 331 | 40,571 | 48,778 | 89,680 | ||||||||||||
Total | $ | 407,212 | $ | 522,532 | $ | 1,285,551 | $ | 2,215,295 | ||||||||
Rate Sensitivity: | ||||||||||||||||
Fixed Rate | $ | 52,727 | $ | 276,272 | $ | 559,516 | $ | 888,515 | ||||||||
Variable Rate | 354,485 | 246,260 | 726,035 | 1,326,780 | ||||||||||||
Total | $ | 407,212 | $ | 522,532 | $ | 1,285,551 | $ | 2,215,295 | ||||||||
Percent | 18.38 | % | 23.59 | % | 58.03 | % | 100.00 | % |
Loan Contractual Maturity | ||||||||||||||||||||
(Dollars in thousands) | One Year or Less | After One But Within Five Years | After Five But Within Fifteen Years | After Fifteen Years | Total | |||||||||||||||
Gross loan and leases: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial | $ | 61,340 | $ | 326,671 | $ | 889,041 | $ | 51,639 | $ | 1,328,691 | ||||||||||
Agricultural | 26,588 | 172,766 | 452,249 | 75,335 | 726,938 | |||||||||||||||
Residential and home equity | 384 | 4,143 | 117,421 | 265,805 | 387,753 | |||||||||||||||
Construction | 94,238 | 72,300 | - | - | 166,538 | |||||||||||||||
Total real estate | 182,550 | 575,880 | 1,458,711 | 392,779 | 2,609,920 | |||||||||||||||
Commercial & industrial | 216,019 | 181,520 | 75,093 | 6,126 | 478,758 | |||||||||||||||
Agricultural | 197,010 | 98,898 | 18,617 | - | 314,525 | |||||||||||||||
Commercial leases | 45,503 | 61,377 | 5,749 | - | 112,629 | |||||||||||||||
Consumer and other | 753 | 3,989 | 1,144 | - | 5,886 | |||||||||||||||
Total gross loans and leases | $ | 641,835 | $ | 921,664 | $ | 1,559,314 | $ | 398,905 | $ | 3,521,718 | ||||||||||
Rate Structure for Loans | ||||||||||||||||||||
Fixed Rate | $ | 116,749 | $ | 475,248 | $ | 1,158,859 | $ | 255,628 | $ | 2,006,484 | ||||||||||
Adjustable Rate | 525,086 | 446,416 | 400,455 | 143,277 | 1,515,234 | |||||||||||||||
Total gross loans and leases | $ | 641,835 | $ | 921,664 | $ | 1,559,314 | $ | 398,905 | $ | 3,521,718 |
December 31, | ||||||||||||||||||||
(in thousands) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Non-Accrual Loans & Leases | ||||||||||||||||||||
Commercial Real Estate | $ | - | $ | - | $ | 19 | $ | - | $ | - | ||||||||||
Agricultural Real Estate | - | 1,304 | - | - | - | |||||||||||||||
Real Estate Construction | - | - | - | - | - | |||||||||||||||
Residential 1st Mortgages | - | 95 | 65 | 77 | 324 | |||||||||||||||
Home Equity Lines and Loans | - | - | 538 | 576 | 406 | |||||||||||||||
Agricultural | - | 243 | - | 18 | 35 | |||||||||||||||
Commercial | - | 1,426 | 1,524 | 1,586 | 1,815 | |||||||||||||||
Consumer & Other | - | 6 | 10 | 13 | 16 | |||||||||||||||
Total Non-Accrual Loans & Leases | - | 3,074 | 2,156 | 2,270 | 2,596 | |||||||||||||||
Accruing Loans & Leases Past Due 90 Days or More | ||||||||||||||||||||
Commercial Real Estate | - | - | - | - | - | |||||||||||||||
Agricultural Real Estate | - | - | - | - | - | |||||||||||||||
Real Estate Construction | - | - | - | - | - | |||||||||||||||
Residential 1st Mortgages | - | - | - | - | - | |||||||||||||||
Home Equity Lines and Loans | - | - | - | - | - | |||||||||||||||
Agricultural | - | - | - | - | - | |||||||||||||||
Commercial | - | - | - | - | - | |||||||||||||||
Consumer & Other | - | - | - | - | - | |||||||||||||||
Total Accruing Loans & Leases Past Due 90 Days or More | - | - | - | - | - | |||||||||||||||
Total Non-Performing Loans & Leases | $ | - | $ | 3,074 | $ | 2,156 | $ | 2,270 | $ | 2,596 | ||||||||||
Other Real Estate Owned | $ | 873 | $ | 3,745 | $ | 2,441 | $ | 3,299 | $ | 4,611 | ||||||||||
Total Non-Performing Assets | $ | 873 | $ | 6,819 | $ | 4,597 | $ | 5,569 | $ | 7,207 | ||||||||||
Restructured Loans & Leases (Performing) | $ | 6,301 | $ | 4,462 | $ | 4,953 | $ | 4,955 | $ | 4,649 | ||||||||||
Non-Performing Loans & Leases as a Percent of Total Loans & Leases | 0.00 | % | 0.14 | % | 0.11 | % | 0.13 | % | 0.19 | % |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Non-performing assets: | ||||||||
Non-accrual loans and leases, not TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 403 | $ | - | ||||
Agricultural | - | 18 | ||||||
Residential and home equity | - | - | ||||||
Construction | 168 | - | ||||||
Total real estate | 571 | 18 | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | 571 | 18 | ||||||
Non-accrual loans and leases, are TDRs | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | 498 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | - | 498 | ||||||
Total non-performing loans and leases | $ | 571 | $ | 516 | ||||
Other real estate owned ("OREO") | $ | 873 | $ | 873 | ||||
Total non-performing assets | $ | 1,444 | $ | 1,389 | ||||
Performing TDRs | $ | 1,311 | $ | 1,824 | ||||
Selected ratios: | ||||||||
Non-performing loans to total loans and leases | 0.02 | % | 0.02 | % | ||||
Non-performing assets to total assets | 0.03 | % | 0.03 | % | ||||
Year Ended December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Allowance for credit losses: | ||||||||
Balance at beginning of year | $ | 61,007 | $ | 58,862 | ||||
Provision / (recapture) for credit losses | 6,057 | 1,910 | ||||||
Charge-offs: | ||||||||
Real estate: | ||||||||
Commercial | (170 | ) | - | |||||
Agricultural | - | - | ||||||
Residential and home equity | (25 | ) | - | |||||
Construction | - | - | ||||||
Total real estate | (195 | ) | - | |||||
Commercial & industrial | (324 | ) | - | |||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | (62 | ) | (44 | ) | ||||
Total charge-offs | (581 | ) | (44 | ) | ||||
Recoveries: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | 131 | 98 | ||||||
Construction | - | - | ||||||
Total real estate | 131 | 98 | ||||||
Commercial & industrial | 195 | 99 | ||||||
Agricultural | 53 | 55 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | 23 | 27 | ||||||
Total recoveries | 402 | 279 | ||||||
Net charge-offs / recoveries | (179 | ) | 235 | |||||
Balance at end of year | $ | 66,885 | $ | 61,007 | ||||
Selected financial information: | ||||||||
Gross loans and leases held for investment | $ | 3,512,361 | $ | 3,237,177 | ||||
Average loans and leases | 3,278,931 | 3,084,339 | ||||||
Non-performing loans and leases | 571 | 516 | ||||||
Allowance for credit losses to non-performing loans and leases | 11713.66 | % | 11823.06 | % | ||||
Net charge-offs / (recoveries) to average loans and leases | 0.01 | % | (0.01 | %) | ||||
Provision for credit losses to average loans and leases | 0.18 | % | 0.06 | % | ||||
Allowance for credit losses to loans and leases held for investment | 1.90 | % | 1.88 | % |
December 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Each Loan Type to Total Loans | Dollars | Percent of Each Loan Type to Total Loans | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 18,055 | 37.73 | % | $ | 28,536 | 35.95 | % | ||||||||
Agricultural | 14,496 | 20.64 | % | 9,613 | 20.72 | % | ||||||||||
Residential and home equity | 7,508 | 11.01 | % | 2,847 | 10.79 | % | ||||||||||
Construction | 3,026 | 4.73 | % | 1,456 | 5.45 | % | ||||||||||
Total real estate | 43,085 | 74.11 | % | 42,452 | 72.91 | % | ||||||||||
Commercial & industrial | 11,503 | 13.59 | % | 11,489 | 13.17 | % | ||||||||||
Agricultural | 10,202 | 8.93 | % | 5,465 | 8.52 | % | ||||||||||
Commercial leases | 1,924 | 3.20 | % | 938 | 2.99 | % | ||||||||||
Consumer and other | 171 | 0.17 | % | 663 | 2.41 | % | ||||||||||
Total allowance for credit losses | $ | 66,885 | 100.00 | % | $ | 61,007 | 100.00 | % |
(in thousands) | ||||
Time Deposits of $250,000 or More | ||||
Three Months or Less | $ | 117,306 | ||
Over Three Months Through Six Months | 33,656 | |||
Over Six Months Through Twelve Months | 43,959 | |||
Over Twelve Months | 17,653 | |||
Total Time Deposits of $250,000 or More | $ | 212,574 |
As of December 31, | ||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | |||||||||||||||||||||||||||
Total deposits: | ||||||||||||||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||||||||||||||
Demand | $ | 1,120,198 | 1,497 | 0.13 | % | $ | 1,024,009 | 1,128 | 0.11 | % | $ | 787,306 | 1,618 | 0.21 | % | |||||||||||||||||||||
Savings and money market | 1,542,310 | 1,981 | 0.13 | % | 1,352,258 | 1,458 | 0.11 | % | 1,128,623 | 2,724 | 0.24 | % | ||||||||||||||||||||||||
Certificates of deposit greater than $250,000 | 157,623 | 460 | 0.29 | % | 170,040 | 701 | 0.41 | % | 220,952 | 2,535 | 1.15 | % | ||||||||||||||||||||||||
Certificates of deposit less than $250,000 | 215,044 | 411 | 0.19 | % | 235,746 | 730 | 0.31 | % | 268,294 | 2,236 | 0.83 | % | ||||||||||||||||||||||||
Total interest bearing deposits | 3,035,175 | 4,349 | 0.14 | % | 2,782,053 | 4,017 | 0.14 | % | 2,405,175 | 9,113 | 0.38 | % | ||||||||||||||||||||||||
Non-interest bearing deposits | 1,751,797 | 1,610,611 | 1,232,874 | |||||||||||||||||||||||||||||||||
Total deposits | $ | 4,786,972 | $ | 4,349 | 0.09 | % | $ | 4,392,664 | $ | 4,017 | 0.09 | % | $ | 3,638,049 | $ | 9,113 | 0.25 | % |
December 31 | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Non-Maturity Deposits greater than $250,000 | $ | 2,872,754 | $ | 2,708,576 | ||||
Certificates of deposit greater than $250,000, by maturity: | ||||||||
Less than 3 months | 45,078 | 59,591 | ||||||
3 months to 6 months | 30,426 | 37,182 | ||||||
6 months to 12 months | 44,189 | 59,945 | ||||||
More than 12 months | 9,153 | 12,147 | ||||||
Total certificates of deposit greater than $250,000 | $ | 128,846 | $ | 168,865 | ||||
Total deposits greater than $250,000 | $ | 3,001,600 | $ | 2,877,441 |
Minimum to be Categorized as "Well Capitalized" under Prompt Corrective Action Regulations | As of December 31, | ||||||||||
(Dollars in thousands) | 2022 | 2021 | |||||||||
Farmers & Merchants Bancorp | |||||||||||
CET1 capital to risk-weighted assets | N/A | 11.57 | % | 11.68 | % | ||||||
Tier 1 capital to risk-weighted assets | N/A | 11.80 | % | 11.94 | % | ||||||
Risk-based capital to risk-weighted assets | N/A | 13.06 | % | 13.19 | % | ||||||
Tier 1 leverage capital ratio | N/A | 9.36 | % | 8.92 | % | ||||||
Farmers & Merchants Bank | |||||||||||
CET1 capital to risk-weighted assets | 6.50% | 11.79 | % | 11.91 | % | ||||||
Tier 1 capital to risk-weighted assets | 8.00% | 11.79 | % | 11.91 | % | ||||||
Risk-based capital to risk-weighted assets | 10.00% | 13.04 | % | 13.17 | % | ||||||
Tier 1 leverage capital ratio | 5.00% | 9.35 | % | 8.91 | % |
(in thousands) | December 31, 2017 | December 31, 2016 | ||||||
Commitments to Extend Credit | $ | 735,678 | $ | 609,653 | ||||
Letters of Credit | 20,061 | 20,444 | ||||||
Performance Guarantees Under Interest Rate Swap Contracts Entered Into Between Our Borrowing Customers and Third Parties | 759 | 1,835 |
Amount of Commitment Expiration per Period | ||||||||||||||||||||
(Dollars in thousands) | Total Committed Amount | Less than One Year | One to Three Years | Three to Five Years | After Five Years | |||||||||||||||
Off-balance sheet commitments | ||||||||||||||||||||
Commitments to extend credit | $ | 1,141,036 | $ | 423,956 | $ | 203,186 | $ | 476,671 | $ | 37,223 | ||||||||||
Standby letters of credit | 17,138 | 10,770 | 4,468 | 1,470 | 430 | |||||||||||||||
Total off-balance sheet commitments | $ | 1,158,174 | $ | 434,726 | $ | 207,654 | $ | 478,141 | $ | 37,653 |
As of December 31, 2022 | ||||||||||||||||||||
(Dollars in thousands) | Total Credit Line Limit | Current Credit Line Available | Outstanding Amount | Remaining Credit Line Available | Value of Collateral Pledged | |||||||||||||||
Additional liquidity sources: | ||||||||||||||||||||
Federal Home Loan Bank | $ | 757,866 | $ | 757,866 | $ | - | $ | 757,866 | $ | 1,225,175 | ||||||||||
Federal Reserve BIC | 650,925 | 650,925 | - | 650,925 | 883,754 | |||||||||||||||
FHLB Fed Funds | 18,000 | 18,000 | - | 18,000 | - | |||||||||||||||
US Bank Fed Funds | 35,000 | 35,000 | - | 35,000 | - | |||||||||||||||
PCBB Fed Funds | 50,000 | 50,000 | - | 50,000 | - | |||||||||||||||
Total additional liquidity sources | $ | 1,511,791 | $ | 1,511,791 | $ | - | $ | 1,511,791 | $ | 2,108,929 |
(in thousands) | Total | 1 Year or Less | 2-3 Years | 4-5 Years | More Than 5 Years | |||||||||||||||
Operating Lease Obligations | $ | 2,695 | $ | 670 | $ | 1,278 | $ | 608 | $ | 139 | ||||||||||
Long-Term Subordinated Debentures | 10,310 | - | - | - | 10,310 | |||||||||||||||
Deferred Compensation (1) | 47,755 | 2,970 | 1,796 | 1,061 | 41,928 | |||||||||||||||
Total | $ | 60,760 | $ | 3,640 | $ | 3,074 | $ | 1,669 | $ | 52,377 |
Quantitative and Qualitative Disclosures |
Financial Statements and Supplementary Data |
Page | ||
Report of Independent Registered Public Accounting Firm (Eide Bailly LLP, San Ramon, California, PCAOB ID: 286) Report of Independent Registered Public Accounting Firm (Moss Adams LLP, San Francisco, California, PCAOB ID: 659) | ||
Consolidated Financial Statements | ||
Consolidated | ||
Consolidated Statements of Income | ||
Consolidated Statements of Comprehensive Income | ||
Consolidated Statements of Changes in | ||
Consolidated Statements of Cash Flows | ||
Notes to the Consolidated Financial Statements |
• | Obtaining an understanding of the Company’s process for establishing the ACL, including the models selected by management to estimate quantitative components of the ACL and qualitative adjustments made to the ACL. This includes the process utilized by management to challenge the model results and determine the best estimate of the ACL as of the balance sheet date. |
• | Evaluating the design and testing the operating effectiveness of controls relating to the development and approval of the ACL methodology, management’s identification, determination and controls related to the significant assumptions used in the models, controls around the reliability and accuracy of the data used in the models, analysis of the ACL results and management’s review and approval of the ACL. |
• | Determining whether the loan portfolio is segmented by similar risk characteristics by comparing to the Company’s business environment and relevant industry practices. |
• | Evaluating the identification and measurement of the qualitative adjustments, including the basis for concluding an adjustment was warranted and compared the adjustments utilized by management to both internal portfolio metrics and external macroeconomic data to support the adjustments and evaluated the trends in such adjustments. We searched for and evaluated information that corroborates or contradicts management’s identification and measurement of qualitative factors. |
• | Testing the completeness and accuracy of internal loan level data used as the basis for the calculation, including management’s controls. |
• | Testing the mathematical accuracy and computation of the ACL. |
December 31, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 73,358 | $ | 52,499 | ||||
Interest bearing deposits with banks | 514,899 | 662,961 | ||||||
Total cash and cash equivalents | 588,257 | 715,460 | ||||||
Securities available-for-sale, at fair value | 152,864 | 270,454 | ||||||
Securities held-to-maturity, fair value $688,393 and $725,841, respectively | 845,346 | 737,052 | ||||||
Allowance for credit losses - securities | (393 | ) | - | |||||
Total investment securities | 997,817 | 1,007,506 | ||||||
Non-marketable securities | 15,549 | 15,549 | ||||||
Loans and leases held for investment | 3,512,361 | 3,237,177 | ||||||
Allowance for credit losses - loans and leases | (66,885 | ) | (61,007 | ) | ||||
Loans held for investment, net | 3,445,476 | 3,176,170 | ||||||
Bank-owned life insurance | 73,038 | 71,411 | ||||||
Premises and equipment, net | 49,476 | 47,730 | ||||||
Deferred income tax assets | 31,507 | 25,542 | ||||||
Accrued interest receivable | 21,602 | 18,098 | ||||||
Goodwill | 11,183 | 11,183 | ||||||
Other intangibles | 2,809 | 3,402 | ||||||
Other real estate owned | 873 | 873 | ||||||
Other assets | 89,812 | 84,796 | ||||||
TOTAL ASSETS | $ | 5,327,399 | $ | 5,177,720 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Non-interest bearing | $ | 1,758,793 | $ | 1,750,330 | ||||
Interest bearing: | ||||||||
Demand | 1,125,014 | 1,097,337 | ||||||
Savings and money market | 1,544,062 | 1,400,000 | ||||||
Certificates of deposit | 331,400 | 392,485 | ||||||
Total interest bearing | 3,000,476 | 2,889,822 | ||||||
Total deposits | 4,759,269 | 4,640,152 | ||||||
Subordinated debentures | 10,310 | 10,310 | ||||||
Interest payable and other liabilities | 72,512 | 64,122 | ||||||
Total Liabilities | 4,842,091 | 4,714,584 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred shares, no par value, 1,000,000 shares authorized and, none issued or outstanding | - | - | ||||||
Common shares, $0.01 par value, 7,500,000 authorized, 768,337 and 789,646 issued and outstanding at December 31, 2022 and 2021, respectively | 8 | 8 | ||||||
Additional paid-in capital | 57,206 | 77,516 | ||||||
Retained earnings | 449,932 | 387,331 | ||||||
Accumulated other comprehensive (loss), net of taxes | (21,838 | ) | (1,719 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 485,308 | 463,136 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,327,399 | $ | 5,177,720 |
December 31, | ||||||||
Assets | 2017 | 2016 | ||||||
Cash and Cash Equivalents: | ||||||||
Cash and Due from Banks | $ | 65,956 | $ | 54,896 | ||||
Interest Bearing Deposits with Banks | 121,193 | 43,964 | ||||||
Total Cash and Cash Equivalents | 187,149 | 98,860 | ||||||
Investment Securities: | ||||||||
Available-for-Sale | 481,596 | 448,263 | ||||||
Held-to-Maturity | 54,460 | 58,109 | ||||||
Total Investment Securities | 536,056 | 506,372 | ||||||
Loans & Leases: | 2,215,295 | 2,177,601 | ||||||
Less: Allowance for Credit Losses | 50,342 | 47,919 | ||||||
Loans& Leases, Net | 2,164,953 | 2,129,682 | ||||||
Premises and Equipment, Net | 28,679 | 29,229 | ||||||
Bank Owned Life Insurance | 59,583 | 57,761 | ||||||
Interest Receivable and Other Assets | 99,032 | 100,217 | ||||||
Total Assets | $ | 3,075,452 | $ | 2,922,121 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Demand | $ | 832,652 | $ | 756,236 | ||||
Interest-Bearing Transaction | 601,476 | 495,063 | ||||||
Savings and Money Market | 813,703 | 760,119 | ||||||
Time | 475,397 | 570,293 | ||||||
Total Deposits | 2,723,228 | 2,581,711 | ||||||
Subordinated Debentures | 10,310 | 10,310 | ||||||
Interest Payable and Other Liabilities | 42,254 | 50,119 | ||||||
Total Liabilities | 2,775,792 | 2,642,140 | ||||||
Commitments & Contingencies (See Note 20) | ||||||||
Shareholders' Equity | ||||||||
Preferred Stock: No Par Value, 1,000,000 Shares Authorized, None Issued or Outstanding | - | - | ||||||
Common Stock: Par Value $0.01, 7,500,000 Shares Authorized, 812,304 and 807,329 Shares Issued and Outstanding at December 31, 2017 and 2016, respectively. | 8 | 8 | ||||||
Additional Paid-In Capital | 93,624 | 90,671 | ||||||
Retained Earnings | 206,845 | 189,313 | ||||||
Accumulated Other Comprehensive Income | (817 | ) | (11 | ) | ||||
Total Shareholders' Equity | 299,660 | 279,981 | ||||||
Total Liabilities and Shareholders' Equity | $ | 3,075,452 | $ | 2,922,121 |
Year Ended December 31, | ||||||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | 2020 | |||||||||
Interest income | ||||||||||||
Interest and fees on loans and leases | $ | 164,022 | $ | 147,208 | $ | 143,383 | ||||||
Interest and dividends on securities | 22,289 | 17,158 | 14,704 | |||||||||
Interest on deposits with others | 12,102 | 902 | 1,207 | |||||||||
Total interest income | 198,413 | 165,268 | 159,294 | |||||||||
Interest expense | ||||||||||||
Deposits | 4,349 | 4,017 | 9,113 | |||||||||
Subordinated debentures | 491 | 315 | 378 | |||||||||
Total interest expense | 4,840 | 4,332 | 9,491 | |||||||||
Net interest income | 193,573 | 160,936 | 149,803 | |||||||||
Provision for credit losses | 6,450 | 1,910 | 4,500 | |||||||||
Net interest income after provision for credit losses | 187,123 | 159,026 | 145,303 | |||||||||
Non-interest income | ||||||||||||
Card processing | 7,123 | 6,959 | 5,536 | |||||||||
Service charges on deposit accounts | 2,794 | 2,972 | 2,637 | |||||||||
Increase in cash surrender value of BOLI | 2,233 | 2,175 | 2,088 | |||||||||
Net (loss)/gain on sale of investment securities available-for-sale | (10,689 | ) | 2,554 | 40 | ||||||||
Net gain on deferred compensation benefits | 451 | 2,614 | 1,777 | |||||||||
Other | 4,266 | 3,782 | 2,976 | |||||||||
Total non-interest income | 6,178 | 21,056 | 15,054 | |||||||||
Non-interest expense | ||||||||||||
Salaries and employee benefits | 64,250 | 63,860 | 56,950 | |||||||||
Net gain on deferred compensation benefits | 451 | 2,614 | 1,777 | |||||||||
Occupancy | 4,717 | 4,675 | 4,640 | |||||||||
Data Processing | 4,968 | 4,967 | 4,994 | |||||||||
FDIC insurance | 1,444 | 1,237 | 517 | |||||||||
Marketing | 1,324 | 1,097 | 922 | |||||||||
Legal | 737 | 140 | 128 | |||||||||
Other | 15,669 | 13,171 | 12,478 | |||||||||
Total non-interest expense | 93,560 | 91,761 | 82,406 | |||||||||
INCOME BEFORE INCOME TAXES | 99,741 | 88,321 | 77,951 | |||||||||
Income tax expense | 24,651 | 21,985 | 19,217 | |||||||||
NET INCOME | $ | 75,090 | $ | 66,336 | $ | 58,734 | ||||||
Earnings per common share: | ||||||||||||
Basic | $ | 96.55 | $ | 84.01 | $ | 74.03 | ||||||
Diluted | $ | 96.55 | $ | 84.01 | $ | 74.03 | ||||||
Weighted average number of common shares | ||||||||||||
Basic | 777,726 | 789,646 | 793,337 | |||||||||
Diluted | 777,726 | 789,646 | 793,337 |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Interest Income | ||||||||||||
Interest and Fees on Loans & Leases | $ | 102,682 | $ | 91,570 | $ | 81,558 | ||||||
Interest on Deposits with Banks | 2,060 | 287 | 172 | |||||||||
Interest on Investment Securities: | ||||||||||||
Taxable | �� | 8,123 | 5,505 | 6,311 | ||||||||
Exempt from Federal Tax | 1,747 | 1,904 | 2,034 | |||||||||
Total Interest Income | 114,612 | 99,266 | 90,075 | |||||||||
Interest Expense | ||||||||||||
Deposits | 5,865 | 3,807 | 2,989 | |||||||||
Borrowed Funds | - | 18 | 7 | |||||||||
Subordinated Debentures | 424 | 371 | 329 | |||||||||
Total Interest Expense | 6,289 | 4,196 | 3,325 | |||||||||
Net Interest Income | 108,323 | 95,070 | 86,750 | |||||||||
Provision for Credit Losses | 2,850 | 6,335 | 750 | |||||||||
Net Interest Income After Provision for Credit Losses | 105,473 | 88,735 | 86,000 | |||||||||
Non-Interest Income | ||||||||||||
Service Charges on Deposit Accounts | 3,453 | 3,376 | 3,458 | |||||||||
Net Gain (Loss) on Investment Securities | 131 | (284 | ) | 275 | ||||||||
Increase in Cash Surrender Value of Life Insurance | 1,822 | 1,864 | 1,908 | |||||||||
Debit Card and ATM Fees | 3,873 | 3,398 | 3,183 | |||||||||
Net Gain on Deferred Compensation Investments | 2,563 | 1,999 | 1,375 | |||||||||
Bargain Purchase Gain | - | 1,832 | - | |||||||||
Other | 4,920 | 3,072 | 4,376 | |||||||||
Total Non-Interest Income | 16,762 | 15,257 | 14,575 | |||||||||
Non-Interest Expense | ||||||||||||
Salaries and Employee Benefits | 45,746 | 41,981 | 39,683 | |||||||||
Net Gain on Deferred Compensation Investments | 2,563 | 1,999 | 1,375 | |||||||||
Occupancy | 3,543 | 2,985 | 2,884 | |||||||||
Equipment | 3,994 | 3,493 | 3,162 | |||||||||
Marketing | 1,027 | 1,191 | 1,254 | |||||||||
Legal | 424 | 1,243 | 421 | |||||||||
FDIC Insurance | 932 | 1,174 | 1,193 | |||||||||
Gain on Sale of ORE | (414 | ) | (5,941 | ) | (299 | ) | ||||||
Other | 9,939 | 10,047 | 6,586 | |||||||||
Total Non-Interest Expense | 67,754 | 58,172 | 56,259 | |||||||||
Income Before Income Taxes | 54,481 | 45,820 | 44,316 | |||||||||
Provision for Income Taxes | 26,111 | 16,097 | 16,924 | |||||||||
Net Income | $ | 28,370 | $ | 29,723 | $ | 27,392 | ||||||
Basic Earnings Per Common Share | $ | 35.03 | $ | 37.44 | $ | 34.82 |
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | |||||||||
Net income | $ | 75,090 | $ | 66,336 | $ | 58,734 | ||||||
Other comprehensive income | ||||||||||||
Unrealized holding (losses)/gains on available-for-sale debt securities | (39,015 | ) | (17,986 | ) | 13,905 | |||||||
Reclassification adjustment for losses/(gains) on available-for-sale debt securities | 10,689 | (2,554 | ) | (40 | ) | |||||||
Amortization of unrealized loss on debt securities transferred to held-to-maturity | (238 | ) | (457 | ) | - | |||||||
Net unrealized holding (losses)/gains on available-for-sale debt securities | (28,564 | ) | (20,997 | ) | 13,865 | |||||||
Income tax benefit/(expense) | 8,445 | 6,207 | (4,099 | ) | ||||||||
Other comprehensive (loss)/income, net of tax | (20,119 | ) | (14,790 | ) | 9,766 | |||||||
Total comprehensive income | $ | 54,971 | $ | 51,546 | $ | 68,500 |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Net Income | $ | 28,370 | $ | 29,723 | $ | 27,392 | ||||||
Other Comprehensive Loss | ||||||||||||
Net Unrealized Loss on Available-for-Sale Securities | (1,011 | ) | (1,330 | ) | (3,069 | ) | ||||||
Deferred Tax Benefit Related to Unrealized Losses | 281 | 559 | 1,290 | |||||||||
Reclassification Adjustment for Realized (Gain) Loss on Available-for-Sale Securities Included in Net Income | (131 | ) | 284 | (275 | ) | |||||||
Tax Expense (Benefit) Related to Reclassification Adjustment | 55 | (119 | ) | 116 | ||||||||
Change in Net Unrealized Loss on Available-for-Sale Securities, Net of Tax | (806 | ) | (606 | ) | (1,938 | ) | ||||||
Total Other Comprehensive Loss | (806 | ) | (606 | ) | (1,938 | ) | ||||||
Comprehensive Income | $ | 27,564 | $ | 29,117 | $ | 25,454 |
(Dollars in thousands, except share and per share amounts) | Common Shares | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Total | ||||||||||||||||||
Balance as of January 1, 2020 | 793,033 | $ | 8 | $ | 79,947 | $ | 286,036 | $ | 3,305 | $ | 369,296 | |||||||||||||
Net income | - | - | - | 58,734 | - | 58,734 | ||||||||||||||||||
Other comprehensive income, net of tax | - | - | - | - | 9,766 | 9,766 | ||||||||||||||||||
Cash dividends declared ($14.75 per share) | - | - | - | (11,700 | ) | - | (11,700 | ) | ||||||||||||||||
Issuance of common stock | 523 | - | 403 | - | - | 403 | ||||||||||||||||||
Repurchase of common stock | (3,910 | ) | - | (2,834 | ) | - | - | (2,834 | ) | |||||||||||||||
Balance as of December 31, 2020 | 789,646 | $ | 8 | $ | 77,516 | $ | 333,070 | $ | 13,071 | $ | 423,665 | |||||||||||||
Net income | - | - | - | 66,336 | - | 66,336 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (14,790 | ) | (14,790 | ) | ||||||||||||||||
Cash dividends declared ($15.30 per share) | - | - | - | (12,075 | ) | - | (12,075 | ) | ||||||||||||||||
Balance as of December 31, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 387,331 | $ | (1,719 | ) | $ | 463,136 | ||||||||||||
Net income | - | - | - | 75,090 | - | 75,090 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (20,119 | ) | (20,119 | ) | ||||||||||||||||
Cash dividends declared ($16.15 per share) | - | - | - | (12,489 | ) | - | (12,489 | ) | ||||||||||||||||
Repurchase of common stock | (21,309 | ) | - | (20,310 | ) | - | - | (20,310 | ) | |||||||||||||||
Balance as of December 31, 2022 | 768,337 | $ | 8 | $ | 57,206 | $ | 449,932 | $ | (21,838 | ) | $ | 485,308 |
Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Shareholders' Equity | |||||||||||||||||||
Balance, January 1, 2015 | 784,082 | $ | 8 | $ | 77,804 | $ | 152,833 | $ | 2,533 | $ | 233,178 | |||||||||||||
Net Income | 27,392 | 27,392 | ||||||||||||||||||||||
Cash Dividends Declared on Common Stock ($12.90 per share) | (10,157 | ) | (10,157 | ) | ||||||||||||||||||||
Issuance of Common Stock | 6,705 | 3,360 | 3,360 | |||||||||||||||||||||
Change in Net Unrealized Gain on Securities Available-for-Sale | (1,938 | ) | (1,938 | ) | ||||||||||||||||||||
Balance, December 31, 2015 | 790,787 | $ | 8 | $ | 81,164 | $ | 170,068 | $ | 595 | $ | 251,835 | |||||||||||||
Net Income | 29,723 | 29,723 | ||||||||||||||||||||||
Cash Dividends Declared on Common Stock ($13.10 per share) | (10,478 | ) | (10,478 | ) | ||||||||||||||||||||
Issuance of Common Stock | 16,542 | 9,507 | 9,507 | |||||||||||||||||||||
Change in Net Unrealized Gain on Securities Available-for-Sale | (606 | ) | (606 | ) | ||||||||||||||||||||
Balance, December 31, 2016 | 807,329 | $ | 8 | $ | 90,671 | $ | 189,313 | $ | (11 | ) | $ | 279,981 | ||||||||||||
Net Income | 28,370 | 28,370 | ||||||||||||||||||||||
Cash Dividends Declared on Common Stock ($13.55 per share) | (10,982 | ) | (10,982 | ) | ||||||||||||||||||||
Issuance of Common Stock | 4,975 | 2,953 | 2,953 | |||||||||||||||||||||
Tax Adjustment of Available-for-Sale Securities Reclassed from AOCI | 144 | (144 | ) | - | ||||||||||||||||||||
Change in Net Unrealized (Loss) on Securities Available-for-Sale | (662 | ) | (662 | ) | ||||||||||||||||||||
Balance, December 31, 2017 | 812,304 | $ | 8 | $ | 93,624 | $ | 206,845 | $ | (817 | ) | $ | 299,660 |
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 75,090 | $ | 66,336 | $ | 58,734 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Provision for credit losses | 6,450 | 1,910 | 4,500 | |||||||||
Depreciation and amortization | 2,428 | 2,632 | 2,769 | |||||||||
Net amortization of securities premiums and discounts | 376 | 1,446 | 1,159 | |||||||||
Increase in cash surrender value of BOLI | (2,233 | ) | (2,175 | ) | (2,088 | ) | ||||||
Decrease/(increase) in deferred income taxes, net | 4,330 | (880 | ) | (1,962 | ) | |||||||
Loss/(gains) on sale of securities available-for-sale | 10,689 | (2,554 | ) | (40 | ) | |||||||
Net changes in: | ||||||||||||
Other assets | (8,262 | ) | (12,432 | ) | (818 | ) | ||||||
Other liabilities | 12,910 | 5,680 | (4,135 | ) | ||||||||
Net cash provided by operating activities | 101,778 | 59,963 | 58,119 | |||||||||
Cash flows from investing activities: | ||||||||||||
Net change in loans held for investment | (275,061 | ) | (137,216 | ) | (427,049 | ) | ||||||
Purchase of available-for-sale securities | (10,217 | ) | (257,231 | ) | (670,550 | ) | ||||||
Purchase of held-to-maturity securities | (173,907 | ) | (395,176 | ) | (22,020 | ) | ||||||
Purchase of non-marketable securities | - | (2,856 | ) | - | ||||||||
Proceeds from sales, maturities, calls and pay downs of available-for-sale securities | 88,504 | 458,855 | 383,257 | |||||||||
Proceeds from maturities, calls and pay downs of held-to-maturity securities | 65,493 | 43,287 | 13,299 | |||||||||
Purchase of premises and equipment | (4,190 | ) | (2,069 | ) | (7,709 | ) | ||||||
Purchase of other investments | (6,600 | ) | (8,192 | ) | (6,063 | ) | ||||||
Redemption of other investments | - | 2,752 | - | |||||||||
Proceeds from bank-owned life insurance | 606 | - | - | |||||||||
Proceeds from sale of assets | 73 | 1,696 | 81 | |||||||||
Net cash used in investing activities | (315,299 | ) | (296,150 | ) | (736,754 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net increase in deposits | 119,117 | 579,885 | 782,248 | |||||||||
Cash dividends paid | (12,489 | ) | (12,075 | ) | (11,700 | ) | ||||||
Net cash used in share repurchase of common stock | (20,310 | ) | - | (2,834 | ) | |||||||
Net provided by financing activities | 86,318 | 567,810 | 767,714 | |||||||||
Net change in cash and cash equivalents | (127,203 | ) | 331,623 | 89,079 | ||||||||
Cash and cash equivalents, beginning of year | 715,460 | 383,837 | 294,758 | |||||||||
Cash and cash equivalents, end of year | $ | 588,257 | $ | 715,460 | $ | 383,837 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 5,785 | $ | 4,369 | $ | 10,903 | ||||||
Income taxes paid | $ | 12,469 | $ | 29,941 | $ | 9,581 | ||||||
Issuance of common stock | $ | - | $ | - | $ | 403 | ||||||
Supplemental disclosures of non-cash transactions: | ||||||||||||
Investment securities available-for-sale transferred to held-to-maturity | $ | - | $ | 316,925 | $ | - | ||||||
Unrealized (losses)/gains on securities available for sale | $ | 28,326 | $ | 20,540 | $ | (13,865 | ) | |||||
Lease liabilities arising from obtaining right-of-use assets | $ | - | $ | 295 | $ | - |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Operating Activities | ||||||||||||
Net Income | $ | 28,370 | $ | 29,723 | $ | 27,392 | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||||||
Provision for Credit Losses | 2,850 | 6,335 | 750 | |||||||||
Depreciation and Amortization | 2,186 | 1,896 | 1,685 | |||||||||
Provision for Deferred Income Taxes | 12,605 | (2,299 | ) | (907 | ) | |||||||
Net Amortization of Investment Security Premium & Discounts | 1,430 | 1,481 | 1,554 | |||||||||
Amortization of Core Deposit Intangible | 110 | 13 | - | |||||||||
Accretion of Discount on Acquired Loans | (202 | ) | (43 | ) | - | |||||||
Net (Gain) Loss on Investment Securities | (131 | ) | 284 | (275 | ) | |||||||
Net (Gain) Loss on Sale of Property & Equipment | (1,189 | ) | 71 | (383 | ) | |||||||
Net Gain on sale of ORE | (414 | ) | (5,941 | ) | (299 | ) | ||||||
Net Gain from Acquisition | - | (1,832 | ) | - | ||||||||
Net Change in Operating Assets & Liabilities: | ||||||||||||
Net (Increase) Decrease in Interest Receivable and Other Assets | (275 | ) | 1,056 | 4,685 | ||||||||
Net (Decrease) Increase in Interest Payable and Other Liabilities | (5,396 | ) | 4,068 | 3,125 | ||||||||
Net Cash Provided by Operating Activities | 39,944 | 34,812 | 37,327 | |||||||||
Investing Activities | ||||||||||||
Purchase of Investment Securities Available-for-Sale | (325,573 | ) | (497,797 | ) | (203,996 | ) | ||||||
Proceeds from Sold, Matured, or Called Securities Available-for-Sale | 289,857 | 426,142 | 227,157 | |||||||||
Purchase of Investment Securities Held-to-Maturity | (1,205 | ) | (2,264 | ) | (17,747 | ) | ||||||
Proceeds from Matured, or Called Securities Held-to-Maturity | 4,794 | 5,499 | 18,031 | |||||||||
Net Loans & Leases Paid, Originated or Acquired | (38,178 | ) | (148,960 | ) | (284,211 | ) | ||||||
Principal Collected on Loans & Leases Previously Charged Off | 259 | 232 | 5,468 | |||||||||
Cash Acquired in Acquisition, Net of Cash Paid | - | 31,751 | - | |||||||||
Additions to Premises and Equipment | (4,254 | ) | (1,504 | ) | (2,726 | ) | ||||||
Purchase of Other Investment | (14,380 | ) | (6,825 | ) | (2,110 | ) | ||||||
Proceeds from Sale of Property & Equipment | 3,304 | - | 670 | |||||||||
Proceeds from Sale of ORE | 3,186 | 8,282 | 1,156 | |||||||||
Net Cash Used in Investing Activities | (82,190 | ) | (185,444 | ) | (258,308 | ) | ||||||
Financing Activities | ||||||||||||
Net Increase in Deposits | 141,517 | 200,524 | 213,459 | |||||||||
Cash Dividends | (10,982 | ) | (10,478 | ) | (10,157 | ) | ||||||
Net Cash Provided by Financing Activities | 130,535 | 190,046 | 203,302 | |||||||||
Increase (Decrease) in Cash and Cash Equivalents | 88,289 | 39,414 | (17,679 | ) | ||||||||
Cash and Cash Equivalents at Beginning of Year | 98,860 | 59,446 | $ | 77,125 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 187,149 | $ | 98,860 | $ | 59,446 | ||||||
Supplementary Data | ||||||||||||
Loans Transferred to Foreclosed Assets (ORE) | $ | - | $ | 538 | $ | - | ||||||
Cash Payments Made for Income Taxes | $ | 13,942 | $ | 12,891 | $ | 8,475 | ||||||
Issuance of Common Stock to the Bank's Non-Qualified Retirement Plans | $ | 2,953 | $ | 2,586 | $ | 3,360 | ||||||
Interest Paid | $ | 6,005 | $ | 3,856 | $ | 3,190 | ||||||
Acquisitions: | �� | |||||||||||
Fair Value of Assets Acquired | $ | - | $ | 114,871 | $ | - | ||||||
Fair Value of Liabilities Acquired | $ | - | $ | 103,861 | $ | - | ||||||
Issuance of Common Stock to Acquired Bank's Shareholders | $ | - | $ | 6,921 | $ | - |
◾ | 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 international, national, regional, 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 nature and volume of the portfolio and in the terms of loans. |
◾ | Changes in the experience, ability, and depth of lending management and other relevant staff. |
◾ | Changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans. |
◾ | Changes in the quality of the institution’s loan review system. |
◾ | Changes in the value of underlying collateral for collateral-dependent loans. |
◾ | The existence and effect of any concentrations of credit, and changes in the level of such concentrations. |
◾ | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. |
Building and building improvements | 30 to 40 years |
Leasehold improvements | term of lease |
Furniture and equipment | 3 to 7 years |
Computers, software and equipment | 3 to 7 years |
January-2022 | ||||||||||||
(Dollars in thousands) | Reported under ASC 326 | Reported Pre- Adoption | Impact of ASC 326 Adoption | |||||||||
Allowance for credit losses: | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | (17,379 | ) | $ | (28,536 | ) | $ | 11,157 | ||||
Agricultural | (14,580 | ) | (9,613 | ) | (4,967 | ) | ||||||
Residential and home equity | (5,879 | ) | (2,847 | ) | (3,032 | ) | ||||||
Construction | (3,311 | ) | (1,456 | ) | (1,855 | ) | ||||||
Total real estate | (41,149 | ) | (42,452 | ) | 1,303 | |||||||
Commercial & industrial | (11,417 | ) | (11,489 | ) | 72 | |||||||
Agricultural | (6,363 | ) | (5,465 | ) | (898 | ) | ||||||
Commercial leases | (1,567 | ) | (938 | ) | (629 | ) | ||||||
Consumer and other | (511 | ) | (663 | ) | 152 | |||||||
Total allowance for credit losses on loans | $ | (61,007 | ) | $ | (61,007 | ) | $ | - |
Gross Unrealized | ||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of December 31, 2022 | ||||||||||||||||
U.S. Treasury notes | $ | 4,989 | $ | - | $ | 25 | $ | 4,964 | ||||||||
U.S. Government-sponsored securities | 4,430 | 21 | 24 | 4,427 | ||||||||||||
Mortgage-backed securities(1) | 162,314 | 9 | 29,795 | 132,528 | ||||||||||||
Collateralized mortgage obligations(1) | 1,085 | - | 31 | 1,054 | ||||||||||||
Corporate securities | 10,043 | - | 462 | 9,581 | ||||||||||||
Other | 310 | - | - | 310 | ||||||||||||
Total available-for-sale securities | $ | 183,171 | $ | 30 | $ | 30,337 | $ | 152,864 |
December 31, 2017 | Amortized Cost | Gross Unrealized | Fair/Book Value | |||||||||||||
Gains | Losses | |||||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,080 | $ | 48 | $ | - | $ | 3,128 | ||||||||
US Treasury Notes | 144,606 | - | 442 | 144,164 | ||||||||||||
US Govt SBA | 29,559 | 29 | 208 | 29,380 | ||||||||||||
Mortgage Backed Securities (1) | 302,502 | 939 | 1,527 | 301,914 | ||||||||||||
Other | 3,010 | - | - | 3,010 | ||||||||||||
Total | $ | 482,757 | $ | 1,016 | $ | 2,177 | $ | 481,596 |
Gross Unrealized | ||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of December 31, 2021 | ||||||||||||||||
U.S. Treasury notes | $ | 9,938 | $ | 151 | $ | - | $ | 10,089 | ||||||||
U.S. Government-sponsored securities | 6,351 | 62 | 39 | 6,374 | ||||||||||||
Mortgage-backed securities(1) | 253,300 | 3,200 | 5,380 | 251,120 | ||||||||||||
Collateralized mortgage obligations(1) | 2,412 | 24 | - | 2,436 | ||||||||||||
Other | 435 | - | - | 435 | ||||||||||||
Total available-for-sale securities | $ | 272,436 | $ | 3,437 | $ | 5,419 | $ | 270,454 |
December 31, 2016 | Amortized Cost | Gross Unrealized | Fair/Book Value | |||||||||||||
Gains | Losses | |||||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,127 | $ | 114 | $ | - | $ | 3,241 | ||||||||
US Treasury Notes | 134,755 | 5 | 332 | 134,428 | ||||||||||||
US Govt SBA | 36,532 | 42 | 260 | 36,314 | ||||||||||||
Mortgage Backed Securities (1) | 272,858 | 1,725 | 1,313 | 273,270 | ||||||||||||
Other | 1,010 | - | - | 1,010 | ||||||||||||
Total | $ | 448,282 | $ | 1,886 | $ | 1,905 | $ | 448,263 |
December 31, 2017 | Book Value | Gross Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Obligations of States and Political Subdivisions | $ | 54,460 | $ | 776 | $ | - | $ | 55,236 | ||||||||
Total | $ | 54,460 | $ | 776 | $ | - | $ | 55,236 |
Gross Unrealized | ||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Allowance for Credit Losses | |||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||
Municipal securities | $ | 62,302 | $ | 49 | $ | 209 | $ | 62,142 | $ | 393 | ||||||||||
Mortgage-backed securities(1) | 702,858 | 29 | 141,121 | 561,766 | - | |||||||||||||||
Collateralized mortgage obligations(1) | 80,186 | - | 15,701 | 64,485 | - | |||||||||||||||
Total held-to-maturity securities | $ | 845,346 | $ | 78 | $ | 157,031 | $ | 688,393 | $ | 393 |
December 31, 2016 | Book Value | Gross Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Obligations of States and Political Subdivisions | $ | 58,109 | $ | 339 | $ | 40 | $ | 58,408 | ||||||||
Total | $ | 58,109 | $ | 339 | $ | 40 | $ | 58,408 |
Gross Unrealized | ||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of December 31, 2021 | ||||||||||||||||
Municipal securities | $ | 66,496 | $ | 701 | $ | - | $ | 67,197 | ||||||||
Mortgage-backed securities(1) | 596,775 | 45 | 11,764 | 585,056 | ||||||||||||
Collateralized mortgage obligations(1) | 73,781 | 36 | 229 | 73,588 | ||||||||||||
Total held-to-maturity securities | $ | 737,052 | $ | 782 | $ | 11,993 | $ | 725,841 |
December 31, 2022 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||||||
U.S.Treasury notes | $ | 4,964 | $ | 25 | $ | - | $ | - | $ | 4,964 | $ | 25 | ||||||||||||
U.S. Government-sponsored securities | 378 | 1 | 1,326 | 23 | 1,704 | 24 | ||||||||||||||||||
Mortgage-backed securities(1) | 35,117 | 1,639 | 96,589 | 28,156 | 131,706 | 29,795 | ||||||||||||||||||
Collateralized mortgage obligations(1) | 1,054 | 31 | - | - | 1,054 | 31 | ||||||||||||||||||
Corporate securities | - | - | 9,581 | 462 | 9,581 | 462 | ||||||||||||||||||
Total available-for-sale securities | $ | 41,513 | $ | 1,696 | $ | 107,496 | $ | 28,641 | $ | 149,009 | $ | 30,337 |
December 31, 2021 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||
U.S. Government-sponsored securities | $ | 183 | $ | - | $ | 2,007 | $ | 39 | $ | 2,190 | $ | 39 | ||||||||||||
Mortgage-backed securities(1) | 61,469 | 1,192 | 104,489 | 4,188 | 165,958 | 5,380 | ||||||||||||||||||
Total available-for-sale securities | $ | 61,652 | $ | 1,192 | $ | 106,496 | $ | 4,227 | $ | 168,148 | $ | 5,419 |
December 31, 2022 | ||||||||||||||||
(Dollars in thousands) | Municipal securities | Mortgage-backed securities | Collateralized mortgage obligations | Total | ||||||||||||
Allowance for credit losses - securities | ||||||||||||||||
Beginning Balance | $ | - | $ | - | $ | - | $ | - | ||||||||
Provision for credit losses | 393 | - | - | 393 | ||||||||||||
Ending Balance | $ | 393 | $ | - | $ | - | $ | 393 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Securities maturing in: | ||||||||||||||||
One year or less | $ | 5,316 | $ | 5,290 | $ | 883 | $ | 883 | ||||||||
After one year through five years | 27,290 | 26,094 | 8,058 | 8,004 | ||||||||||||
After five years through ten years | 17,241 | 15,536 | 33,867 | 32,030 | ||||||||||||
After ten years | 133,324 | 105,944 | 802,538 | 647,476 | ||||||||||||
Total | $ | 183,171 | $ | 152,864 | $ | 845,346 | $ | 688,393 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||
December 31, 2017 | Amortized Cost | Fair/Book Value | Book Value | Fair Value | ||||||||||||
Within One Year | $ | 113,065 | $ | 112,989 | $ | 1,760 | $ | 1,769 | ||||||||
After One Year Through Five Years | 30,207 | 29,979 | 8,659 | 8,664 | ||||||||||||
After Five Years Through Ten Years | 13,044 | 12,922 | 14,155 | 14,347 | ||||||||||||
After Ten Years | 23,939 | 23,792 | 29,886 | 30,456 | ||||||||||||
180,255 | 179,682 | 54,460 | 55,236 | |||||||||||||
Investment Securities Not Due at a Single Maturity Date: | ||||||||||||||||
Mortgage Backed Securities | 302,502 | 301,914 | - | - | ||||||||||||
Total | $ | 482,757 | $ | 481,596 | $ | 54,460 | $ | 55,236 |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
December 31, 2017 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||
US Treasury Notes | $ | 94,281 | $ | 144 | $ | 49,883 | $ | 298 | $ | 144,164 | $ | 442 | ||||||||||||
US Govt SBA | 8,379 | 51 | 12,900 | 157 | 21,279 | 208 | ||||||||||||||||||
Mortgage Backed Securities | 126,863 | 932 | 43,208 | 595 | 170,071 | 1,527 | ||||||||||||||||||
Total | $ | 229,523 | $ | 1,127 | $ | 105,991 | $ | 1,050 | $ | 335,514 | $ | 2,177 |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
December 31, 2016 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||
US Treasury Notes | $ | 99,429 | $ | 332 | $ | - | $ | - | $ | 99,429 | $ | 332 | ||||||||||||
US Govt SBA | 27,483 | 260 | - | - | 27,483 | 260 | ||||||||||||||||||
Mortgage Backed Securities | 123,157 | 1,313 | - | - | 123,157 | 1,313 | ||||||||||||||||||
Total | $ | 250,069 | $ | 1,905 | $ | - | $ | - | $ | 250,069 | $ | 1,905 | ||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 7,251 | $ | 40 | $ | - | $ | - | $ | 7,251 | $ | 40 | ||||||||||||
Total | $ | 7,251 | $ | 40 | $ | - | $ | - | $ | 7,251 | $ | 40 |
Held-to-Maturity | ||||||||||||||||
Amortized Cost | ||||||||||||||||
(Dollars in thousands) | AAA/AA/A | BBB/BB/B | Not Rated | Total | ||||||||||||
December 31, 2022 | ||||||||||||||||
Municipal securities | $ | 19,380 | $ | 388 | $ | 42,534 | $ | 62,302 | ||||||||
Total | $ | 19,380 | $ | 388 | $ | 42,534 | $ | 62,302 |
(Dollars in thousands) | Gross Proceeds | Gross Gains | Gross Losses | |||||||||
2022 | $ | 51,359 | $ | 2 | $ | 10,691 | ||||||
2021 | 301,320 | 5,570 | 3,016 | |||||||||
2020 | 5,080 | 40 | - |
(in thousands) Gross Gross Gross | Gross Proceeds | Gross Gains | Gross Losses | |||||||||
2017 | $ | 7,831 | $ | 143 | $ | 12 | ||||||
2016 | $ | 105,941 | $ | 250 | $ | 534 | ||||||
2015 | $ | 61,335 | $ | 275 | $ | - |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Loans and leases held-for-investment, net | ||||||||
Real estate: | ||||||||
Commercial | $ | 1,328,691 | $ | 1,167,516 | ||||
Agricultural | 726,938 | 672,830 | ||||||
Residential and home equity | 387,753 | 350,581 | ||||||
Construction | 166,538 | 177,163 | ||||||
Total real estate | 2,609,920 | 2,368,090 | ||||||
Commercial & industrial | 478,758 | 427,799 | ||||||
Agricultural | 314,525 | 276,684 | ||||||
Commercial leases | 112,629 | 96,971 | ||||||
Consumer and other(1) | 5,886 | 78,367 | ||||||
Total gross loans and leases | 3,521,718 | 3,247,911 | ||||||
Unearned income | (9,357 | ) | (10,734 | ) | ||||
Total net loans and leases | 3,512,361 | 3,237,177 | ||||||
Allowance for credit losses | (66,885 | ) | (61,007 | ) | ||||
Total loans and leases held-for-investment, net | $ | 3,445,476 | $ | 3,176,170 |
(in thousands) | 2017 | 2016 | ||||||
Commercial Real Estate | $ | 691,639 | $ | 674,445 | ||||
Agricultural Real Estate | 499,231 | 467,685 | ||||||
Real Estate Construction | 100,206 | 176,462 | ||||||
Residential 1st Mortgages | 260,751 | 242,247 | ||||||
Home Equity Lines and Loans | 34,525 | 31,625 | ||||||
Agricultural | 273,582 | 295,325 | ||||||
Commercial | 265,703 | 217,577 | ||||||
Consumer & Other | 6,656 | 6,913 | ||||||
Leases | 88,957 | 70,986 | ||||||
Total Gross Loans & Leases | 2,221,250 | 2,183,265 | ||||||
Less: Unearned Income | 5,955 | 5,664 | ||||||
Subtotal | 2,215,295 | 2,177,601 | ||||||
Less: Allowance for Credit Losses | 50,342 | 47,919 | ||||||
Loans & Leases, Net | $ | 2,164,953 | $ | 2,129,682 |
December 31, 2017 | Commercial Real Estate | Agricultural Real Estate | Real Estate Construction | Residential 1st Mortgages | Home Equity Lines & Loans | Agricultural | Commercial | Consumer & Other | Leases | Unallocated | Total | |||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- January 1, 2017 | $ | 11,110 | $ | 9,450 | $ | 3,223 | $ | 865 | $ | 2,140 | $ | 7,381 | $ | 8,515 | $ | 200 | $ | 3,586 | $ | 1,449 | $ | 47,919 | ||||||||||||||||||||||
Charge-Offs | (109 | ) | - | - | (53 | ) | (3 | ) | (374 | ) | - | (146 | ) | - | - | (685 | ) | |||||||||||||||||||||||||||
Recoveries | 109 | - | - | 40 | 8 | 17 | 8 | 76 | - | - | 258 | |||||||||||||||||||||||||||||||||
Provision | (188 | ) | 2,635 | (1,377 | ) | (37 | ) | 179 | 1,135 | 674 | 79 | (223 | ) | (27 | ) | 2,850 | ||||||||||||||||||||||||||||
Ending Balance- December 31, 2017 | $ | 10,922 | $ | 12,085 | $ | 1,846 | $ | 815 | $ | 2,324 | $ | 8,159 | $ | 9,197 | $ | 209 | $ | 3,363 | $ | 1,422 | $ | 50,342 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 366 | - | - | 73 | 17 | - | 220 | 8 | - | - | 684 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 10,556 | 12,085 | 1,846 | 742 | 2,307 | 8,159 | 8,977 | 201 | 3,363 | 1,422 | 49,658 | |||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 684,961 | $ | 499,231 | $ | 100,206 | $ | 260,751 | $ | 34,525 | $ | 273,582 | $ | 265,703 | $ | 6,656 | $ | 89,680 | $ | - | $ | 2,215,295 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 4,822 | - | - | 2,373 | 340 | - | 1,734 | 10 | - | - | 9,279 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 680,139 | 499,231 | 100,206 | 258,378 | 34,185 | 273,582 | 263,969 | 6,646 | 89,680 | - | 2,206,016 |
December 31, 2016 | Commercial Real Estate | Agricultural Real Estate | Real Estate Construction | Residential 1st Mortgages | Home Equity Lines & Loans | Agricultural | Commercial | Consumer & Other | Leases | Unallocated | Total | |||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- January 1, 2016 | $ | 10,063 | $ | 6,881 | $ | 2,485 | $ | 789 | $ | 2,146 | $ | 6,308 | $ | 7,836 | $ | 175 | $ | 3,294 | $ | 1,546 | $ | 41,523 | ||||||||||||||||||||||
Charge-Offs | - | - | - | (21 | ) | (46 | ) | - | - | (105 | ) | - | - | (172 | ) | |||||||||||||||||||||||||||||
Recoveries | 2 | - | - | 26 | 103 | - | 47 | 55 | - | - | 233 | |||||||||||||||||||||||||||||||||
Provision | 1,045 | 2,569 | 738 | 71 | (63 | ) | 1,073 | 632 | 75 | 292 | (97 | ) | 6,335 | |||||||||||||||||||||||||||||||
Ending Balance- December 31, 2016 | $ | 11,110 | $ | 9,450 | $ | 3,223 | $ | 865 | $ | 2,140 | $ | 7,381 | $ | 8,515 | $ | 200 | $ | 3,586 | $ | 1,449 | $ | 47,919 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | - | - | - | 70 | 18 | 128 | 608 | 7 | - | - | 831 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 11,110 | 9,450 | 3,223 | 795 | 2,122 | 7,253 | 7,907 | 193 | 3,586 | 1,449 | 47,088 | |||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 668,046 | $ | 467,685 | $ | 176,462 | $ | 242,247 | $ | 31,625 | $ | 295,325 | $ | 217,577 | $ | 6,913 | $ | 71,721 | $ | - | $ | 2,177,601 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 1,932 | 1,304 | - | 2,126 | 402 | 625 | 4,464 | 10 | - | - | 10,863 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 666,114 | 466,381 | 176,462 | 240,121 | 31,223 | 294,700 | 213,113 | 6,903 | 71,721 | - | 2,166,738 |
December 31, 2017 | Pass | Special Mention | Substandard | Total Loans | ||||||||||||
Loans & Leases: | ||||||||||||||||
Commercial Real Estate | $ | 677,636 | $ | 6,843 | $ | 482 | $ | 684,961 | ||||||||
Agricultural Real Estate | 488,672 | 6,529 | 4,030 | 499,231 | ||||||||||||
Real Estate Construction | 90,728 | 9,478 | - | 100,206 | ||||||||||||
Residential 1st Mortgages | 259,795 | 41 | 915 | 260,751 | ||||||||||||
Home Equity Lines and Loans | 34,476 | - | 49 | 34,525 | ||||||||||||
Agricultural | 264,425 | 6,439 | 2,718 | 273,582 | ||||||||||||
Commercial | 260,565 | 4,610 | 528 | 265,703 | ||||||||||||
Consumer & Other | 6,498 | - | 158 | 6,656 | ||||||||||||
Leases | 87,497 | 2,183 | - | 89,680 | ||||||||||||
Total | $ | 2,170,292 | $ | 36,123 | $ | 8,880 | $ | 2,215,295 |
December 31, 2016 | Pass | Special Mention | Substandard | Total Loans | ||||||||||||
Loans & Leases: | ||||||||||||||||
Commercial Real Estate | $ | 659,694 | $ | 6,817 | $ | 1,535 | $ | 668,046 | ||||||||
Agricultural Real Estate | 464,997 | 1,384 | 1,304 | 467,685 | ||||||||||||
Real Estate Construction | 176,462 | - | - | 176,462 | ||||||||||||
Residential 1st Mortgages | 241,816 | 47 | 384 | 242,247 | ||||||||||||
Home Equity Lines and Loans | 31,558 | - | 67 | 31,625 | ||||||||||||
Agricultural | 283,525 | 11,366 | 434 | 295,325 | ||||||||||||
Commercial | 208,172 | 6,974 | 2,431 | 217,577 | ||||||||||||
Consumer & Other | 6,705 | - | 208 | 6,913 | ||||||||||||
Leases | 71,721 | - | - | 71,721 | ||||||||||||
Total | $ | 2,144,650 | $ | 26,588 | $ | 6,363 | $ | 2,177,601 |
December 31, 2017 | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Still Accruing | Nonaccrual | Total Past Due | Current | Total Loans & Leases | |||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||
Commercial Real Estate | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 684,961 | $ | 684,961 | ||||||||||||||
Agricultural Real Estate | - | - | - | - | - | 499,231 | 499,231 | |||||||||||||||||||||
Real Estate Construction | - | - | - | - | - | 100,206 | 100,206 | |||||||||||||||||||||
Residential 1st Mortgages | 448 | - | - | - | 448 | 260,303 | 260,751 | |||||||||||||||||||||
Home Equity Lines and Loans | 10 | - | - | - | 10 | 34,515 | 34,525 | |||||||||||||||||||||
Agricultural | - | - | - | - | - | 273,582 | 273,582 | |||||||||||||||||||||
Commercial | 180 | - | - | - | 180 | 265,523 | 265,703 | |||||||||||||||||||||
Consumer & Other | 7 | - | - | - | 7 | 6,649 | 6,656 | |||||||||||||||||||||
Leases | - | - | - | - | - | 89,680 | 89,680 | |||||||||||||||||||||
Total | $ | 645 | $ | - | $ | - | $ | - | $ | 645 | $ | 2,214,650 | $ | 2,215,295 |
December 31, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- accrual | Total Past Due | Total | ||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,319,911 | $ | - | $ | - | $ | 403 | $ | 403 | $ | 1,320,314 | ||||||||||||
Agricultural | 726,938 | - | - | - | - | 726,938 | ||||||||||||||||||
Residential and home equity | 387,753 | - | - | - | - | 387,753 | ||||||||||||||||||
Construction | 166,370 | - | - | 168 | 168 | 166,538 | ||||||||||||||||||
Total real estate | 2,600,972 | - | - | 571 | 571 | 2,601,543 | ||||||||||||||||||
Commercial & industrial | 478,758 | - | - | - | - | 478,758 | ||||||||||||||||||
Agricultural | 314,525 | - | - | - | - | 314,525 | ||||||||||||||||||
Commercial leases | 111,649 | - | - | - | - | 111,649 | ||||||||||||||||||
Consumer and other | 5,789 | 97 | - | - | 97 | 5,886 | ||||||||||||||||||
Total loans and leases, net | $ | 3,511,693 | $ | 97 | $ | - | $ | 571 | $ | 668 | $ | 3,512,361 |
December 31, 2021 | ||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- accrual | Total Past Due | Total | ||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,156,879 | $ | 459 | $ | - | $ | - | $ | 459 | $ | 1,157,338 | ||||||||||||
Agricultural | 672,812 | - | - | 18 | 18 | 672,830 | ||||||||||||||||||
Residential and home equity | 350,492 | 89 | - | - | 89 | 350,581 | ||||||||||||||||||
Construction | 177,163 | - | - | - | - | 177,163 | ||||||||||||||||||
Total real estate | 2,357,346 | 548 | - | 18 | 566 | 2,357,912 | ||||||||||||||||||
Commercial & industrial | 427,799 | - | - | - | - | 427,799 | ||||||||||||||||||
Agricultural | 276,186 | - | - | 498 | 498 | 276,684 | ||||||||||||||||||
Commercial leases | 96,415 | - | - | - | - | 96,415 | ||||||||||||||||||
Consumer and other | 78,363 | 4 | - | - | 4 | 78,367 | ||||||||||||||||||
Total loans and leases, net | $ | 3,236,109 | $ | 552 | $ | - | $ | 516 | $ | 1,068 | $ | 3,237,177 |
December 31, 2016 | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Still Accruing | Nonaccrual | Total Past Due | Current | Total Loans & Leases | |||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||
Commercial Real Estate | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 668,046 | $ | 668,046 | ||||||||||||||
Agricultural Real Estate | - | - | - | 1,304 | 1,304 | 466,381 | 467,685 | |||||||||||||||||||||
Real Estate Construction | - | - | - | - | - | 176,462 | 176,462 | |||||||||||||||||||||
Residential 1st Mortgages | - | - | - | 95 | 95 | 242,152 | 242,247 | |||||||||||||||||||||
Home Equity Lines and Loans | - | - | - | - | - | 31,625 | 31,625 | |||||||||||||||||||||
Agricultural | - | - | - | 243 | 243 | 295,082 | 295,325 | |||||||||||||||||||||
Commercial | - | - | - | 1,425 | 1,425 | 216,152 | 217,577 | |||||||||||||||||||||
Consumer & Other | 10 | - | - | 7 | 17 | 6,896 | 6,913 | |||||||||||||||||||||
Leases | - | - | - | - | - | 71,721 | 71,721 | |||||||||||||||||||||
Total | $ | 10 | $ | - | $ | - | $ | 3,074 | $ | 3,084 | $ | 2,174,517 | $ | 2,177,601 |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Non-accrual loans and leases: | ||||||||
Non-accrual loans and leases, not TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 403 | $ | - | ||||
Agricultural | - | 18 | ||||||
Residential and home equity | - | - | ||||||
Construction | 168 | - | ||||||
Total real estate | 571 | 18 | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | 571 | 18 | ||||||
Non-accrual loans and leases, are TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | - | $ | - | ||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & Industrial | - | - | ||||||
Agricultural | - | 498 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | - | 498 | ||||||
Total non-accrual loans and leases | $ | 571 | $ | 516 |
December 31, 2017 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate | $ | 104 | $ | 104 | $ | - | $ | 107 | $ | 11 | ||||||||||
Agricultural Real Estate | - | - | - | 488 | - | |||||||||||||||
Residential 1st Mortgages | 911 | 1,012 | - | 532 | 11 | |||||||||||||||
Home Equity Lines and Loans | - | - | - | 16 | - | |||||||||||||||
Agricultural | - | - | - | 30 | - | |||||||||||||||
$ | 1,015 | $ | 1,116 | $ | - | $ | 1,173 | $ | 22 | |||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate | $ | 2,973 | $ | 2,961 | $ | 366 | $ | 2,999 | $ | 104 | ||||||||||
Residential 1st Mortgages | 508 | 571 | 25 | 469 | 16 | |||||||||||||||
Home Equity Lines and Loans | 73 | 89 | 4 | 74 | 3 | |||||||||||||||
Agricultural | - | - | - | 409 | 21 | |||||||||||||||
Commercial | 1,741 | 1,734 | 220 | 1,693 | 59 | |||||||||||||||
Consumer & Other | 8 | 9 | 8 | 11 | - | |||||||||||||||
$ | 5,303 | $ | 5,364 | $ | 623 | $ | 5,655 | $ | 203 | |||||||||||
Total | $ | 6,318 | $ | 6,480 | $ | 623 | $ | 6,828 | $ | 225 |
December 31, 2016 | Recorded Investment | Unpaid Principal | Related Allowance | Average Recorded | Interest Income | |||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate | $ | 184 | $ | 184 | $ | - | $ | 354 | $ | 7 | ||||||||||
Agricultural Real Estate | 1,305 | 1,305 | - | 569 | 3 | |||||||||||||||
Residential 1st Mortgages | 451 | 504 | - | 404 | 10 | |||||||||||||||
Home Equity Lines and Loans | - | - | - | 181 | - | |||||||||||||||
Agricultural | - | - | - | 144 | 5 | |||||||||||||||
Commercial | 3,023 | 3,023 | - | 3,053 | 133 | |||||||||||||||
$ | 4,963 | $ | 5,016 | $ | - | $ | 4,705 | $ | 158 | |||||||||||
With an allowance recorded: | ||||||||||||||||||||
Residential 1st Mortgages | $ | 430 | $ | 469 | $ | 21 | $ | 336 | $ | 13 | ||||||||||
Home Equity Lines and Loans | 90 | 97 | 5 | 123 | 4 | |||||||||||||||
Agricultural | 625 | 625 | 128 | 581 | 22 | |||||||||||||||
Commercial | 1,441 | 1,640 | 608 | 1,536 | 8 | |||||||||||||||
Consumer & Other | 6 | 13 | 6 | 12 | - | |||||||||||||||
$ | 2,592 | $ | 2,844 | $ | 768 | $ | 2,588 | $ | 47 | |||||||||||
Total | $ | 7,555 | $ | 7,860 | $ | 768 | $ | 7,293 | $ | 205 |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Troubled debt restructured loans and leases: | ||||||||
Accruing TDR loans and leases | ||||||||
Real estate: | ||||||||
Commercial | $ | - | $ | 41 | ||||
Agricultural | - | - | ||||||
Residential and home equity | 1,305 | 1,522 | ||||||
Construction | - | - | ||||||
Total real estate | 1,305 | 1,563 | ||||||
Commercial & industrial | 6 | 260 | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | 1 | ||||||
Subtotal | 1,311 | 1,824 | ||||||
Non-accruing TDR loans and leases | ||||||||
Real estate: | ||||||||
Commercial | $ | - | $ | - | ||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | 498 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | - | 498 | ||||||
Total TDR loans and leases | $ | 1,311 | $ | 2,322 |
Year Ended December 31, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | # of Accruing TDR | $ of Accruing TDR | # of Non- accruing TDR | $ of Non- accruing TDR | # of Total TDR | $ of Total TDR | ||||||||||||||||||
Loan and lease TDRs | ||||||||||||||||||||||||
2022 | - | $ | - | - | $ | - | - | $ | - | |||||||||||||||
2021 | - | - | - | - | - | - | ||||||||||||||||||
2020 | 4 | 257 | - | - | 4 | 257 | ||||||||||||||||||
2019 | - | - | - | - | - | - | ||||||||||||||||||
Prior | 8 | 1,054 | - | - | 8 | 1,054 | ||||||||||||||||||
Total | 12 | $ | 1,311 | - | $ | - | 12 | $ | 1,311 |
Year Ended December 31, 2021 | ||||||||||||||||||||||||
(Dollars in thousands) | # of Accruing TDR | $ of Accruing TDR | # of Non- accruing TDR | $ of Non- accruing TDR | # of Total TDR | $ of Total TDR | ||||||||||||||||||
Loan and lease TDRs | ||||||||||||||||||||||||
2021 | 1 | $ | 49 | - | $ | - | 1 | $ | 49 | |||||||||||||||
2020 | 5 | 476 | 2 | 498 | 7 | 974 | ||||||||||||||||||
2019 | - | - | - | - | - | - | ||||||||||||||||||
2018 | 1 | 84 | - | - | 1 | 84 | ||||||||||||||||||
Prior | 10 | 1,215 | - | - | 10 | 1,215 | ||||||||||||||||||
Total | 17 | $ | 1,824 | 2 | $ | 498 | 19 | $ | 2,322 |
December 31, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | ||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,314,377 | $ | 5,535 | $ | 402 | $ | - | $ | 1,320,314 | $ | 18,055 | ||||||||||||
Agricultural | 709,927 | 10,891 | 6,120 | - | 726,938 | 14,496 | ||||||||||||||||||
Residential and home equity | 387,371 | - | 382 | - | 387,753 | 7,508 | ||||||||||||||||||
Construction | 166,370 | - | 168 | - | 166,538 | 3,026 | ||||||||||||||||||
Total real estate | 2,578,045 | 16,426 | 7,072 | - | 2,601,543 | 43,085 | ||||||||||||||||||
Commercial & industrial | 478,437 | 63 | 258 | - | 478,758 | 11,503 | ||||||||||||||||||
Agricultural | 308,830 | 5,682 | 13 | - | 314,525 | 10,202 | ||||||||||||||||||
Commercial leases | 111,568 | 81 | - | - | 111,649 | 1,924 | ||||||||||||||||||
Consumer and other | 5,650 | - | 236 | - | 5,886 | 171 | ||||||||||||||||||
Total loans and leases, net | $ | 3,482,530 | $ | 22,252 | $ | 7,579 | $ | - | $ | 3,512,361 | $ | 66,885 |
December 31, 2021 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Loan Losses | ||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,142,175 | $ | 6,903 | $ | 8,260 | $ | - | $ | 1,157,338 | $ | 28,536 | ||||||||||||
Agricultural | 663,157 | 3,292 | 6,381 | - | 672,830 | 9,613 | ||||||||||||||||||
Residential and home equity | 350,148 | - | 433 | - | 350,581 | 2,847 | ||||||||||||||||||
Construction | 177,163 | - | - | - | 177,163 | 1,456 | ||||||||||||||||||
Total real estate | 2,332,643 | 10,195 | 15,074 | - | 2,357,912 | 42,452 | ||||||||||||||||||
Commercial & industrial | 417,806 | 9,321 | 672 | - | 427,799 | 11,489 | ||||||||||||||||||
Agricultural | 275,206 | 958 | 520 | - | 276,684 | 5,465 | ||||||||||||||||||
Commercial leases | 96,415 | - | - | - | 96,415 | 938 | ||||||||||||||||||
Consumer and other | 78,181 | - | 186 | - | 78,367 | 663 | ||||||||||||||||||
Total loans and leases, net | $ | 3,200,251 | $ | 20,474 | $ | 16,452 | $ | - | $ | 3,237,177 | $ | 61,007 |
December 31, 2022 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost | Total | ||||||||||||||||||||||||
Net loans and leases held for investment | ||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Pass | $ | 194,698 | $ | 234,478 | $ | 150,203 | $ | 71,333 | $ | 85,132 | $ | 218,261 | $ | 360,272 | $ | 1,314,377 | ||||||||||||||||
Special mention | - | - | - | - | 3,820 | 1,115 | 600 | 5,535 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 402 | - | 402 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial | $ | 194,698 | $ | 234,478 | $ | 150,203 | $ | 71,333 | $ | 88,952 | $ | 219,778 | $ | 360,872 | $ | 1,320,314 | ||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | 170 | $ | - | $ | - | $ | - | $ | - | $ | 170 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 67,044 | $ | 42,546 | $ | 54,893 | $ | 15,074 | $ | 50,186 | $ | 144,052 | $ | 336,132 | $ | 709,927 | ||||||||||||||||
Special mention | - | - | - | 2,636 | - | - | 8,255 | 10,891 | ||||||||||||||||||||||||
Substandard | - | - | - | - | 111 | 6,009 | - | 6,120 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Agricultural | $ | 67,044 | $ | 42,546 | $ | 54,893 | $ | 17,710 | $ | 50,297 | $ | 150,061 | $ | 344,387 | $ | 726,938 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Pass | $ | 66,847 | $ | 96,354 | $ | 86,545 | $ | 14,530 | $ | 6,632 | $ | 76,155 | $ | 40,308 | $ | 387,371 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 300 | 82 | 382 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Residential and home equity | $ | 66,847 | $ | 96,354 | $ | 86,545 | $ | 14,530 | $ | 6,632 | $ | 76,455 | $ | 40,390 | $ | 387,753 | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 25 | $ | - | $ | 25 | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Pass | $ | 2,000 | $ | 1 | $ | - | $ | 1,575 | $ | - | $ | 31 | $ | 162,763 | $ | 166,370 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | 168 | 168 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total construction | $ | 2,000 | $ | 1 | $ | - | $ | 1,575 | $ | - | $ | 31 | $ | 162,931 | $ | 166,538 | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Total Real estate | $ | 330,589 | $ | 373,379 | $ | 291,641 | $ | 105,148 | $ | 145,881 | $ | 446,325 | $ | 908,580 | $ | 2,601,543 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Pass | $ | 34,410 | $ | 36,846 | $ | 12,325 | $ | 8,245 | $ | 7,167 | $ | 5,679 | $ | 373,765 | $ | 478,437 | ||||||||||||||||
Special mention | - | 63 | - | - | - | - | - | 63 | ||||||||||||||||||||||||
Substandard | - | - | - | - | 1 | 5 | 252 | 258 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial & industrial | $ | 34,410 | $ | 36,909 | $ | 12,325 | $ | 8,245 | $ | 7,168 | $ | 5,684 | $ | 374,017 | $ | 478,758 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | 246 | $ | 78 | $ | - | $ | - | $ | 324 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 5,378 | $ | 3,083 | $ | 989 | $ | 1,515 | $ | 636 | $ | 2,071 | $ | 295,158 | $ | 308,830 | ||||||||||||||||
Special mention | - | - | - | - | - | - | 5,682 | 5,682 | ||||||||||||||||||||||||
Substandard | - | - | - | 11 | 2 | - | - | 13 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Agricultural | $ | 5,378 | $ | 3,083 | $ | 989 | $ | 1,526 | $ | 638 | $ | 2,071 | $ | 300,840 | $ | 314,525 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Pass | $ | 35,689 | $ | 15,874 | $ | 13,050 | $ | 5,904 | $ | 20,560 | $ | 20,491 | $ | - | $ | 111,568 | ||||||||||||||||
Special mention | - | - | - | 81 | - | - | - | 81 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial leases | $ | 35,689 | $ | 15,874 | $ | 13,050 | $ | 5,985 | $ | 20,560 | $ | 20,491 | $ | - | $ | 111,649 | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Pass | $ | 1,476 | $ | 634 | $ | 275 | $ | 176 | $ | 315 | $ | 1,769 | $ | 1,005 | $ | 5,650 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | 236 | - | - | - | - | - | - | 236 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Consumer and other | $ | 1,712 | $ | 634 | $ | 275 | $ | 176 | $ | 315 | $ | 1,769 | $ | 1,005 | $ | 5,886 | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | 40 | $ | 6 | $ | 7 | $ | 1 | $ | 4 | $ | 4 | $ | - | $ | 62 | ||||||||||||||||
Total net loans and leases | $ | 407,778 | $ | 429,879 | $ | 318,280 | $ | 121,080 | $ | 174,562 | $ | 476,340 | $ | 1,584,442 | $ | 3,512,361 |
December 31, 2017 | ||||||||||||
Troubled Debt Restructurings | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||
Residential 1st Mortgages | 2 | $ | 673 | $ | 630 | |||||||
Home Equity Lines and Loans | 1 | 32 | 32 | |||||||||
Commercial | 2 | 138 | 138 | |||||||||
Consumer & Other | 1 | 9 | 8 | |||||||||
Total | 6 | $ | 852 | $ | 808 |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Balance at beginning of the period | $ | 18,128 | $ | 11,682 | ||||
New loans or advances during year | 523 | 7,254 | ||||||
Repayments | (1,130 | ) | (808 | ) | ||||
Balance at end of period | $ | 17,521 | $ | 18,128 |
December 31, 2016 | ||||||||||||
Troubled Debt Restructurings | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||
Commercial Real Estate | 1 | $ | 112 | $ | 112 | |||||||
Residential 1st Mortgages | 2 | 289 | 281 | |||||||||
Home Equity Lines and Loans | 2 | 305 | 286 | |||||||||
Total | 5 | $ | 706 | $ | 679 |
Year Ended December 31, 2022 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | |||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Balance at beginning of year | $ | 38,149 | $ | 1,456 | $ | 2,847 | $ | 16,954 | $ | 938 | $ | 663 | $ | 61,007 | ||||||||||||||
Impact of Adopting ASC 326 | (6,190 | ) | 1,855 | 3,032 | 826 | 629 | (152 | ) | - | |||||||||||||||||||
Provision / (recapture) for credit losses | 762 | (285 | ) | 1,523 | 4,001 | 357 | (301 | ) | 6,057 | |||||||||||||||||||
Charge-offs | (170 | ) | - | (25 | ) | (324 | ) | - | (62 | ) | (581 | ) | ||||||||||||||||
Recoveries | - | - | 131 | 248 | - | 23 | 402 | |||||||||||||||||||||
Net (charge-offs) / recoveries | (170 | ) | - | 106 | (76 | ) | - | (39 | ) | (179 | ) | |||||||||||||||||
Balance at end of year | $ | 32,551 | $ | 3,026 | $ | 7,508 | $ | 21,705 | $ | 1,924 | $ | 171 | $ | 66,885 |
Year Ended December 31, 2021 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | |||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Balance at beginning of year | $ | 36,312 | $ | 1,643 | $ | 2,984 | $ | 14,775 | $ | 1,731 | $ | 1,417 | $ | 58,862 | ||||||||||||||
Provision / (recapture) for credit losses | 1,837 | (187 | ) | (235 | ) | 2,025 | (793 | ) | (737 | ) | 1,910 | |||||||||||||||||
Charge-offs | - | - | - | - | - | (44 | ) | (44 | ) | |||||||||||||||||||
Recoveries | - | - | 98 | 154 | - | 27 | 279 | |||||||||||||||||||||
Net (charge-offs) / recoveries | - | - | 98 | 154 | - | (17 | ) | 235 | ||||||||||||||||||||
Balance at end of year | $ | 38,149 | $ | 1,456 | $ | 2,847 | $ | 16,954 | $ | 938 | $ | 663 | $ | 61,007 |
Year Ended December 31, 2020 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | |||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Balance at beginning of year | $ | 26,181 | $ | 1,949 | $ | 3,530 | $ | 19,542 | $ | 3,162 | $ | 648 | $ | 55,012 | ||||||||||||||
Provision / (recapture) for credit losses | 10,050 | (306 | ) | (669 | ) | (3,946 | ) | (1,431 | ) | 802 | 4,500 | |||||||||||||||||
Charge-offs | - | - | (7 | ) | (1,101 | ) | - | (66 | ) | (1,174 | ) | |||||||||||||||||
Recoveries | 81 | - | 130 | 280 | - | 33 | 524 | |||||||||||||||||||||
Net (charge-offs) / recoveries | 81 | - | 123 | (821 | ) | - | (33 | ) | (650 | ) | ||||||||||||||||||
Balance at end of year | $ | 36,312 | $ | 1,643 | $ | 2,984 | $ | 14,775 | $ | 1,731 | $ | 1,417 | $ | 58,862 |
December 31, 2022 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles and Equipment | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 1,114 | $ | - | $ | 1,114 | ||||||
Agricultural | 11,035 | - | 11,035 | |||||||||
Residential and home equity | 2,153 | - | 2,153 | |||||||||
Construction | - | - | - | |||||||||
Total Real estate | 14,302 | - | 14,302 | |||||||||
Commercial & industrial | - | - | - | |||||||||
Agricultural | - | 13 | 13 | |||||||||
Commercial leases | - | - | - | |||||||||
Consumer and other | - | 158 | 158 | |||||||||
Total gross loans and leases | $ | 14,302 | $ | 171 | $ | 14,473 |
(in thousands) | 2017 | 2016 | ||||||
Land and Buildings | $ | 36,018 | $ | 37,003 | ||||
Furniture, Fixtures, and Equipment | 20,399 | 20,196 | ||||||
Leasehold Improvements | 3,117 | 2,439 | ||||||
Subtotal | 59,534 | 59,638 | ||||||
Less: Accumulated Depreciation and Amortization | 30,855 | 30,409 | ||||||
Total | $ | 28,679 | $ | 29,229 |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Premises and equipment: | ||||||||
Buildings and land | $ | 61,274 | $ | 59,325 | ||||
Furniture, fixtures, and equipment | 23,203 | 22,302 | ||||||
Leasehold improvements | 3,982 | 3,658 | ||||||
Subtotal | 88,459 | 85,285 | ||||||
Accumulated depreciation and amortization | (38,983 | ) | (37,555 | ) | ||||
Total premises and equipment | $ | 49,476 | $ | 47,730 |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Certificates of deposit: | ||||||||
Certificates of deposit less than or equal to $250,000 | $ | 202,554 | $ | 223,620 | ||||
Certificates of deposit greater than $250,000 | 128,846 | 168,865 | ||||||
Total certificates of deposit | $ | 331,400 | $ | 392,485 |
(Dollars in thousands) | Amount | |||
2023 | $ | 299,575 | ||
2024 | 26,097 | |||
2025 | 3,070 | |||
2026 | 1,310 | |||
2027 and beyond | 1,348 | |||
Total certificates of deposit | $ | 331,400 |
(in thousands) | 2017 | 2016 | ||||||
Balance | $ | 212,574 | $ | 289,955 |
(in thousands) | Scheduled Maturities | |||
2018 | $ | 426,874 | ||
2019 | 30,219 | |||
2020 | 10,317 | |||
2021 | 3,100 | |||
2022 | 4,887 | |||
Total | $ | 475,397 |
(in thousands) | 2017 | 2016 | 2015 | |||||||||
Current | ||||||||||||
Federal | $ | 9,460 | $ | 13,101 | $ | 11,979 | ||||||
State | 4,046 | 4,832 | 4,446 | |||||||||
Total Current | 13,506 | 17,933 | 16,425 | |||||||||
Deferred | ||||||||||||
Federal | 11,154 | (1,607 | ) | 383 | ||||||||
State | 1,451 | (229 | ) | 116 | ||||||||
Total Deferred | 12,605 | (1,836 | ) | 499 | ||||||||
Total Provision for Taxes | $ | 26,111 | $ | 16,097 | $ | 16,924 |
2017 | 2016 | 2015 | ||||||||||||||||||||||
(in thousands) | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||
Tax Provision at Federal Statutory Rate | $ | 19,068 | 35.0 | % | $ | 16,037 | 35.0 | % | $ | 15,510 | 35.0 | % | ||||||||||||
Interest on Obligations of States and Political Subdivisions exempt from Federal Taxation | (617 | ) | (1.1 | %) | (675 | ) | (1.5 | %) | (711 | ) | (1.6 | %) | ||||||||||||
State and Local Income Taxes, Net of Federal Income Tax Benefit | 3,573 | 6.5 | % | 2,992 | 6.5 | % | 2,966 | 6.7 | % | |||||||||||||||
Bank Owned Life Insurance | (696 | ) | (1.3 | %) | (731 | ) | (1.6 | %) | (712 | ) | (1.6 | %) | ||||||||||||
Low-Income Housing Tax Credit | (1,546 | ) | (2.8 | %) | (1,201 | ) | (2.6 | %) | (291 | ) | (0.7 | %) | ||||||||||||
Bargain Purchase Gain | - | 0.0 | % | (641 | ) | (1.4 | %) | - | 0.0 | % | ||||||||||||||
Deferred Tax Asset Remeasurement | 6,256 | 11.5 | % | - | 0.0 | % | - | 0.0 | % | |||||||||||||||
Other, Net | 73 | 0.1 | % | 316 | 0.7 | % | 162 | 0.4 | % | |||||||||||||||
Total Provision for Taxes | $ | 26,111 | 47.9 | % | $ | 16,097 | 35.1 | % | $ | 16,924 | 38.2 | % |
(in thousands) | 2017 | 2016 | ||||||
Deferred Tax Assets | ||||||||
Allowance for Credit Losses | $ | 14,962 | $ | 20,260 | ||||
Accrued Liabilities | 7,421 | 9,807 | ||||||
Deferred Compensation | 8,996 | 14,166 | ||||||
State Franchise Tax | 850 | 1,680 | ||||||
Acquired Net Operating Loss | 756 | 1,135 | ||||||
Fair Value Adjustment on Loans Acquired | 242 | 429 | ||||||
Fair Value Adjustment on ORE Acquired | 108 | 299 | ||||||
Unrealized Loss on Securities Available-for-Sale | 373 | 58 | ||||||
Low-Income Housing Investment | 470 | 366 | ||||||
Other | 17 | 233 | ||||||
Total Deferred Tax Assets | $ | 34,195 | $ | 48,433 | ||||
Deferred Tax Liabilities | ||||||||
Premises and Equipment | (1,361 | ) | (1,707 | ) | ||||
Securities Accretion | (164 | ) | (341 | ) | ||||
Leasing Activities | (12,389 | ) | (14,868 | ) | ||||
Core Deposit Intangible Asset | (247 | ) | (398 | ) | ||||
Prepaid | (964 | ) | (314 | ) | ||||
Other | (944 | ) | (494 | ) | ||||
Total Deferred Tax Liabilities | (16,069 | ) | (18,122 | ) | ||||
Net Deferred Tax Assets | $ | 18,126 | $ | 30,311 |
December 31, 2022 | ||||||||||||||||||||||||
Actual | Required for Capital Adequacy Purposes | Minimum to be Categorized as “Well Capitalized” Under Prompt Corrective Action Regulation | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 493,438 | 11.57 | % | $ | 191,984 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 503,438 | 11.80 | % | 255,978 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 556,964 | 13.06 | % | 341,305 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 503,438 | 9.36 | % | 215,201 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 502,838 | 11.79 | % | $ | 191,970 | 4.50 | % | $ | 277,290 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 502,838 | 11.79 | % | 255,960 | 6.00 | % | 341,280 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 556,361 | 13.04 | % | 341,280 | 8.00 | % | 426,600 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 502,838 | 9.35 | % | 215,018 | 4.00 | % | 268,772 | 5.00 | % |
(in thousands) | Actual | Current Regulatory Capital Requirements | Well Capitalized Under Prompt Corrective Action | |||||||||||||||||||||
December 31, 2017 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Total Bank Capital to Risk Weighted Assets | $ | 330,041 | 12.66 | % | $ | 208,552 | 8.0 | % | $ | 260,691 | 10.0 | % | ||||||||||||
Total Consolidated Capital to Risk Weighted Assets | $ | 342,210 | 13.07 | % | $ | 209,532 | 8.0 | % | N/A | N/A | ||||||||||||||
Total Bank Common Equity Tier 1 Capital Ratio | $ | 297,232 | 11.40 | % | $ | 117,311 | 4.5 | % | $ | 169,449 | 6.5 | % | ||||||||||||
Total Consolidated Common Equity Tier 1 Capital Ratio | $ | 299,401 | 11.43 | % | $ | 117,862 | 4.5 | % | N/A | N/A | ||||||||||||||
Tier 1 Bank Capital to Risk Weighted Assets | $ | 297,232 | 11.40 | % | $ | 156,414 | 6.0 | % | $ | 208,552 | 8.0 | % | ||||||||||||
Tier 1 Consolidated Capital to Risk Weighted Assets | $ | 309,250 | 11.81 | % | $ | 157,150 | 6.0 | % | N/A | N/A | ||||||||||||||
Tier 1 Bank Capital to Average Assets | $ | 297,232 | 9.65 | % | $ | 123,178 | 4.0 | % | $ | 153,972 | 5.0 | % | ||||||||||||
Tier 1 Consolidated Capital to Average Assets | $ | 309,250 | 9.99 | % | $ | 123,790 | 4.0 | % | N/A | N/A |
(in thousands) | Actual | Current Regulatory Capital Requirements | Well Capitalized Under Prompt Corrective Action | |||||||||||||||||||||
December 31, 2016 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Total Bank Capital to Risk Weighted Assets | $ | 319,776 | 12.79 | % | $ | 199,958 | 8.0 | % | $ | 249,947 | 10.0 | % | ||||||||||||
Total Consolidated Capital to Risk Weighted Assets | $ | 319,983 | 12.80 | % | $ | 199,981 | 8.0 | % | N/A | N/A | ||||||||||||||
Total Bank Common Equity Tier 1 Capital Ratio | $ | 288,324 | 11.54 | % | $ | 112,476 | 4.5 | % | $ | 162,466 | 6.5 | % | ||||||||||||
Total Consolidated Common Equity Tier 1 Capital Ratio | $ | 278,981 | 11.16 | % | $ | 112,489 | 4.5 | % | N/A | N/A | ||||||||||||||
Tier 1 Bank Capital to Risk Weighted Assets | $ | 288,323 | 11.54 | % | $ | 149,968 | 6.0 | % | $ | 199,958 | 8.0 | % | ||||||||||||
Tier 1 Consolidated Capital to Risk Weighted Assets | $ | 288,527 | 11.54 | % | $ | 149,986 | 6.0 | % | N/A | N/A | ||||||||||||||
Tier 1 Bank Capital to Average Assets | $ | 288,324 | 10.08 | % | $ | 114,409 | 4.0 | % | $ | 143,011 | 5.0 | % | ||||||||||||
Tier 1 Consolidated Capital to Average Assets | $ | 288,527 | 10.07 | % | $ | 114,568 | 4.0 | % | N/A | N/A |
December 31, 2021 | ||||||||||||||||||||||||
Actual | Required for Capital Adequacy Purposes | Minimum to be Categorized as “Well Capitalized” Under Prompt Corrective Action Regulation | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 450,687 | 11.68 | % | $ | 173,674 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 460,687 | 11.94 | % | 231,566 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 509,091 | 13.19 | % | 308,755 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 460,687 | 8.92 | % | 206,606 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 459,813 | 11.91 | % | $ | 173,664 | 4.50 | % | $ | 250,847 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 459,813 | 11.91 | % | 231,551 | 6.00 | % | 308,735 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 508,215 | 13.17 | % | 308,735 | 8.00 | % | 385,919 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 459,813 | 8.91 | % | 206,426 | 4.00 | % | 258,033 | 5.00 | % |
(net income in thousands) | 2017 | 2016 | 2015 | |||||||||
Net Income | $ | 28,370 | $ | 29,723 | $ | 27,392 | ||||||
Weighted Average Number of Common Shares Outstanding | 809,834 | 793,970 | 786,582 | |||||||||
Basic Earnings Per Common Share | $ | 35.03 | $ | 37.44 | $ | 34.82 |
Year Ended December 31, | ||||||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | 2020 | |||||||||
Numerator | ||||||||||||
Net income | $ | 75,090 | $ | 66,336 | $ | 58,734 | ||||||
Denominator | ||||||||||||
Weighted average number of common shares outstanding | 777,726 | 789,646 | 793,337 | |||||||||
Weighted average number of dilutive shares outstanding | 777,726 | 789,646 | 793,337 | |||||||||
Basic earnings per common share | $ | 96.55 | $ | 84.01 | $ | 74.03 | ||||||
Diluted earning per commons share | $ | 96.55 | $ | 84.01 | $ | 74.03 |
Fair Value Measurements At December 31, 2017, Using | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets | Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available-for-Sale Securities: | ||||||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,128 | $ | - | $ | 3,128 | $ | - | ||||||||
US Treasury Notes | 144,164 | 144,164 | - | - | ||||||||||||
US Govt SBA | 29,380 | - | 29,380 | - | ||||||||||||
Mortgage Backed Securities | 301,914 | - | 301,914 | - | ||||||||||||
Other | 3,010 | 200 | 310 | 2,500 | ||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis | $ | 481,596 | $ | 144,364 | $ | 334,732 | $ | 2,500 |
December 31, 2022 | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 588,257 | $ | 588,257 | $ | - | $ | - | $ | 588,257 | ||||||||||
Available-for-sale debt securities | 152,864 | 4,964 | 147,900 | - | 152,864 | |||||||||||||||
Held-to-maturity debt securities | 844,953 | - | 661,167 | 42,534 | 703,701 | |||||||||||||||
Non-marketable securities | 15,549 | - | - | 15,549 | 15,549 | |||||||||||||||
Loans and leases, net | 3,445,476 | - | - | 3,335,042 | 3,335,042 | |||||||||||||||
Bank-owned life insurance | 73,038 | 73,038 | - | - | 73,038 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Total deposits | $ | 4,759,269 | $ | - | $ | 4,427,869 | $ | 323,572 | $ | 4,751,441 | ||||||||||
Subordinated debentures | 10,310 | - | 12,211 | - | 12,211 |
December 31, 2021 | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 715,460 | $ | 715,460 | $ | - | $ | - | $ | 715,460 | ||||||||||
Available-for-sale debt securities | 270,454 | 10,214 | 260,240 | - | 270,454 | |||||||||||||||
Held-to-maturity debt securities | 737,052 | - | 681,588 | 44,446 | 726,034 | |||||||||||||||
Non-marketable securities | 15,549 | - | - | 15,549 | 15,549 | |||||||||||||||
Loans and leases, net | 3,176,170 | - | - | 3,179,857 | 3,179,857 | |||||||||||||||
Bank-owned life insurance | 71,411 | 71,411 | - | - | 71,411 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Total deposits | $ | 4,640,152 | $ | - | $ | 4,247,666 | $ | 391,732 | $ | 4,639,398 | ||||||||||
Subordinated debentures | 10,310 | - | 6,890 | - | 6,890 |
Fair Value Measurements At December 31, 2016, Using | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets | Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available-for-Sale Securities: | ||||||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,241 | $ | - | $ | 3,241 | $ | - | ||||||||
US Treasury Notes | 134,428 | 134,428 | - | - | ||||||||||||
US Govt SBA | 36,314 | 36,314 | ||||||||||||||
Mortgage Backed Securities | 273,270 | - | 273,270 | - | ||||||||||||
Other | 1,010 | 200 | 310 | 500 | ||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis | $ | 448,263 | $ | 134,628 | $ | 313,135 | $ | 500 |
December 31, 2022 | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Fair valued on a recurring basis: | ||||||||||||||||||||
Debt securities available-for-sale | ||||||||||||||||||||
U.S. Treasury notes | $ | 4,964 | $ | 4,964 | $ | - | $ | - | $ | 4,964 | ||||||||||
U.S. Government-sponsored securities | 4,427 | - | 4,427 | - | 4,427 | |||||||||||||||
Mortgage-backed securities | 132,528 | - | 132,528 | - | 132,528 | |||||||||||||||
Collateralized mortgage obligations | 1,054 | - | 1,054 | - | 1,054 | |||||||||||||||
Corporate securities | 9,581 | - | 9,581 | - | 9,581 | |||||||||||||||
Other | 310 | - | 310 | - | 310 | |||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||
Collateral dependent loans | $ | 14,473 | $ | - | $ | - | $ | 14,473 | $ | 14,473 | ||||||||||
Other real estate owned | 873 | - | - | 873 | 873 |
December 31, 2021 | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Fair valued on a recurring basis: | ||||||||||||||||||||
Debt securities available-for-sale | ||||||||||||||||||||
U.S. Treasury notes | $ | 10,089 | $ | 10,089 | $ | - | $ | - | $ | 10,089 | ||||||||||
U.S. Government-sponsored securities | 6,374 | - | 6,374 | - | 6,374 | |||||||||||||||
Mortgage-backed securities | 251,120 | - | 251,120 | - | 251,120 | |||||||||||||||
Collateralized mortgage obligations | 2,436 | - | 2,436 | - | 2,436 | |||||||||||||||
Other | 435 | 125 | 310 | - | 435 | |||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||
Individually evaluated loans | $ | 2,562 | $ | - | $ | - | $ | 2,562 | $ | 2,562 | ||||||||||
Other real estate owned | 873 | - | - | 873 | 873 |
Fair Value Measurements At December 31, 2017, Using | ||||||||||||||||
(in thousands) | Fair Value Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Impaired Loans: | ||||||||||||||||
Commercial Real Estate | $ | 2,595 | $ | - | $ | - | $ | 2,595 | ||||||||
Residential 1st Mortgage | 997 | - | - | 997 | ||||||||||||
Home Equity Lines and Loans | 75 | - | - | 75 | ||||||||||||
Commercial | 1,514 | - | - | 1,514 | ||||||||||||
Total Impaired Loans | 5,181 | - | - | 5,181 | ||||||||||||
Other Real Estate: | ||||||||||||||||
Real Estate Construction | 873 | - | - | 873 | ||||||||||||
Total Other Real Estate | 873 | - | - | 873 | ||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis | $ | 6,054 | $ | - | $ | - | $ | 6,054 |
Fair Value Measurements At December 31, 2016, Using | ||||||||||||||||
(in thousands) | Fair Value Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Impaired Loans: | ||||||||||||||||
Residential 1st Mortgage | $ | 480 | $ | - | $ | - | $ | 480 | ||||||||
Home Equity Lines and Loans | 83 | - | - | 83 | ||||||||||||
Agricultural | 497 | - | - | 497 | ||||||||||||
Commercial | 833 | - | - | 833 | ||||||||||||
Total Impaired Loans | 1,893 | - | - | 1,893 | ||||||||||||
Other Real Estate: | ||||||||||||||||
Home Equity Lines and Loans | 785 | - | - | 785 | ||||||||||||
Real Estate Construction | 2,960 | - | - | 2,960 | ||||||||||||
Total Other Real Estate | 3,745 | - | - | 3,745 | ||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis | $ | 5,638 | $ | - | $ | - | $ | 5,638 |
(in thousands) | Fair Value | Valuation Technique | Unobservable Inputs | Range, Weighted Avg. | |||||
Impaired Loans: | |||||||||
Commercial Real Estate | $ | 2,595 | Income Approach | Capitalization Rate | 3.25%, 3.25 % | ||||
Residential 1st Mortgages | $ | 997 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1% -4%, 2 % | ||||
Home Equity Lines and Loans | $ | 75 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1% - 2%, 2 % | ||||
Commercial | $ | 1,514 | Income Approach | Capitalization Rate | 2.95% - 8.70%, 3.40 % | ||||
Other Real Estate: | |||||||||
Real Estate Construction | $ | 873 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 10%, 10 % |
Fair Value of Financial Instruments Using | ||||||||||||||||||||
December 31, 2017 (in thousands) | Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Estimated Fair Value | |||||||||||||||
Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 187,149 | $ | 187,149 | $ | - | $ | - | $ | 187,149 | ||||||||||
Investment Securities Available-for-Sale | 481,596 | 29,580 | 449,516 | 2,500 | 481,596 | |||||||||||||||
Investment Securities Held-to-Maturity | 54,460 | - | 38,492 | 16,744 | 55,236 | |||||||||||||||
FHLB Stock | 10,342 | N/A | N/A | N/A | N/A | |||||||||||||||
Loans & Leases, Net of Deferred Fees & Allowance | 2,164,953 | - | - | 2,137,987 | 2,137,987 | |||||||||||||||
Accrued Interest Receivable | 10,999 | - | 10,999 | - | 10,999 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 2,723,228 | 2,247,831 | 472,671 | - | 2,720,502 | |||||||||||||||
Subordinated Debentures | 10,310 | - | 7,428 | - | 7,428 | |||||||||||||||
Accrued Interest Payable | 1,137 | - | 1,137 | - | 1,137 |
Fair Value of Financial Instruments Using | ||||||||||||||||||||
December 31, 2016 (in thousands) | Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Estimated Fair Value | |||||||||||||||
Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 98,960 | $ | 98,960 | $ | - | $ | - | $ | 98,960 | ||||||||||
Investment Securities Available-for-Sale | 448,263 | 134,628 | 313,135 | 500 | 448,263 | |||||||||||||||
Investment Securities Held-to-Maturity | 58,109 | - | 40,415 | 17,993 | 58,408 | |||||||||||||||
FHLB Stock | 8,872 | N/A | N/A | N/A | N/A | |||||||||||||||
Loans & Leases, Net of Deferred Fees & Allowance | 2,129,682 | - | - | 2,107,060 | 2,107,060 | |||||||||||||||
Accrued Interest Receivable | 10,047 | - | 10,047 | - | 10,047 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 2,581,711 | 2,011,418 | 569,183 | - | 2,580,601 | |||||||||||||||
Subordinated Debentures | 10,310 | - | 6,578 | - | 6,578 | |||||||||||||||
Accrued Interest Payable | 852 | - | 852 | - | 852 |
(in thousands) | December 31, 2017 | December 31, 2016 | ||||||
Commitments to Extend Credit | $ | 735,678 | $ | 609,653 | ||||
Letters of Credit | 20,061 | 20,444 | ||||||
Performance Guarantees Under Interest Rate Swap Contracts Entered Into Between Our Borrowing Customers and Third Parties | 759 | 1,835 |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Commitments to extend credit, including unsecured commitments of $20,401 and $21,036 as of December 31, 2022 and 2021, respectively | $ | 1,141,036 | $ | 937,009 | ||||
Stand-by letters of credit, including unsecured commitments of $7,954 and $9,091 as of December 31, 2022 and 2021, respectively | 17,138 | 17,880 | ||||||
Performance guarantees under interest rate swap contracts entered into with our clients and third-parties | - | 1,433 |
Year Ended December 31, | ||||||||
(in thousands except for percent and period data) | 2022 | 2021 | ||||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities | ||||||||
Operating Cash Flow from Operating Leases | $ | 704 | $ | 709 | ||||
Weighted-Average Remaining Lease Term - Operating Leases, in Years | 5.48 | 6.55 | ||||||
Weighted-Average Discount Rate - Operating Leases | 2.6 | % | 2.6 | % |
(Dollars in thousands) | Amount | |||
2023 | $ | 720 | ||
2024 | 716 | |||
2025 | 714 | |||
2026 | 679 | |||
2027 | 367 | |||
2028 and beyond | 520 | |||
Total lease payments | 3,716 | |||
Discount | (243 | ) | ||
Net present value of lease liabilities | $ | 3,473 |
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | |||||||||
Income tax expense / (benefit) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 10,638 | $ | 12,595 | $ | 12,174 | ||||||
State | 9,683 | 10,270 | 9,005 | |||||||||
Total current expense | 20,321 | 22,865 | 21,179 | |||||||||
Deferred: | ||||||||||||
Federal | 3,744 | 59 | (1,115 | ) | ||||||||
State | 586 | (939 | ) | (847 | ) | |||||||
Total current deferred benefit | 4,330 | (880 | ) | (1,962 | ) | |||||||
Provision for income tax expense | $ | 24,651 | $ | 21,985 | $ | 19,217 |
Year Ended December 31, | ||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||
Effective income tax rate | ||||||||||||||||||||||||
Federal statutory rate | $ | 20,946 | 21.00 | % | $ | 18,548 | 21.00 | % | $ | 16,370 | 21.00 | % | ||||||||||||
State taxes, net of Federal income tax benefit | 8,112 | 8.13 | % | 7,370 | 8.34 | % | 6,445 | 8.27 | % | |||||||||||||||
Low-income housing tax credits | (3,031 | ) | (3.04 | %) | (3,116 | ) | (3.53 | %) | (2,655 | ) | (3.41 | %) | ||||||||||||
Compensation expense | (578 | ) | (0.58 | %) | - | - | - | - | ||||||||||||||||
Bank owned life insurance | (494 | ) | (0.49 | %) | (471 | ) | (0.53 | %) | (444 | ) | (0.57 | %) | ||||||||||||
Tax-exempt interest income | (326 | ) | (0.32 | %) | (347 | ) | (0.39 | %) | (350 | ) | (0.45 | %) | ||||||||||||
Other, net | 22 | 0.02 | % | 1 | 0.00 | % | (149 | ) | (0.19 | %) | ||||||||||||||
Total provision for income tax expense and effective tax rate | $ | 24,651 | 24.72 | % | $ | 21,985 | 24.89 | % | $ | 19,217 | 24.65 | % |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Deferred income tax assets: | ||||||||
Allowance for credit losses | $ | 20,508 | $ | 18,129 | ||||
Deferred compensation | 20,564 | 15,339 | ||||||
Unrealized losses on debt securities | 9,341 | 945 | ||||||
Accrued liabilities | 3,832 | 9,415 | ||||||
State income taxes | 2,034 | 2,157 | ||||||
Lease liabilities | 1,027 | 1,222 | ||||||
SBA PPP loan fee income | - | 764 | ||||||
Acquired net operating losses | 584 | 614 | ||||||
Low-income housing tax investments | 565 | 503 | ||||||
Acquired loans fair valuation | 108 | 197 | ||||||
Acquired OREO fair valuation | 108 | 108 | ||||||
Other | 2 | 19 | ||||||
Total deferred income tax assets | 58,673 | 49,412 | ||||||
Deferred income tax liabilities: | ||||||||
Commercial leasing | $ | (21,204 | ) | $ | (17,892 | ) | ||
Premises and equipment | (1,940 | ) | (1,860 | ) | ||||
Deferred loan and lease costs | (1,105 | ) | (869 | ) | ||||
Right of use leasing asset | (996 | ) | (1,197 | ) | ||||
Core deposit intangible asset | (830 | ) | (1,006 | ) | ||||
Accretion on investment securities | (547 | ) | (523 | ) | ||||
FHLB dividends | (348 | ) | (348 | ) | ||||
Prepaid assets | (40 | ) | (43 | ) | ||||
Other | (156 | ) | (132 | ) | ||||
Total deferred income tax liabilities | (27,166 | ) | (23,870 | ) | ||||
Net deferred income tax assets | $ | 31,507 | $ | 25,542 |
(in thousands) | 2017 | 2016 | ||||||
Cash | $ | 332 | $ | 228 | ||||
Investment in Farmers & Merchants Bank of Central California | 297,643 | 289,778 | ||||||
Investment Securities | 409 | 409 | ||||||
Other Assets | 12,006 | 184 | ||||||
Total Assets | $ | 310,390 | $ | 290,599 | ||||
Subordinated Debentures | $ | 10,310 | $ | 10,310 | ||||
Liabilities | 420 | 308 | ||||||
Shareholders' Equity | 299,660 | 279,981 | ||||||
Total Liabilities and Shareholders' Equity | $ | 310,390 | $ | 290,599 |
Year Ended December 31, | ||||||||||||
(in thousands) | 2017 | 2016 | 2015 | |||||||||
Equity in Undistributed Earnings in Farmers & Merchants Bank of Central California | $ | 5,575 | $ | 17,043 | $ | 17,352 | ||||||
Dividends from Subsidiary | 23,575 | 14,275 | 10,875 | |||||||||
Interest Income | 13 | 11 | 10 | |||||||||
Other Expenses, Net | (1,552 | ) | (2,485 | ) | (1,451 | ) | ||||||
Tax Benefit | 759 | 879 | 606 | |||||||||
Net Income | $ | 28,370 | $ | 29,723 | $ | 27,392 |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Balance Sheets | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,582 | $ | 1,535 | ||||
Investment in subsidiaries | 495,019 | 472,573 | ||||||
Other assets | 304 | 241 | ||||||
Total assets | $ | 496,905 | $ | 474,349 | ||||
Liabilities and shareholders’ equity | ||||||||
Subordinated debentures | $ | 10,310 | $ | 10,310 | ||||
Other liabilities | 1,287 | 903 | ||||||
Shareholders’ equity | 485,308 | 463,136 | ||||||
Total liabilities and shareholders’ equity | $ | 496,905 | $ | 474,349 |
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | |||||||||
Statements of Income | ||||||||||||
Dividend and other income from subsidiaries | $ | 34,700 | $ | 9,900 | $ | 19,874 | ||||||
Interest and dividends | 14 | 9 | 11 | |||||||||
Total income | 34,714 | 9,909 | 19,885 | |||||||||
Reimbursement of expenses from subsidiaries | 714 | 780 | 821 | |||||||||
Other expenses | 2,388 | 1,469 | 1,656 | |||||||||
Total expense | 3,102 | 2,249 | 2,477 | |||||||||
Income before income taxes | 31,612 | 7,660 | 17,408 | |||||||||
Income tax benefit | 913 | 660 | 729 | |||||||||
32,525 | 8,320 | 18,137 | ||||||||||
Equity in undistributed net income of subsidiaries | 42,565 | 58,016 | 40,597 | |||||||||
Net income | $ | 75,090 | $ | 66,336 | $ | 58,734 |
Year Ended December 31, | ||||||||||||
(in thousands) | 2017 | 2016 | 2015 | |||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net Income | $ | 28,370 | $ | 29,723 | $ | 27,392 | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||||||
Equity in Undistributed Net Earnings from Subsidiary | (5,575 | ) | (17,043 | ) | (17,352 | ) | ||||||
Net (Increase) Decrease in Other Assets | (11,822 | ) | (124 | ) | (79 | ) | ||||||
Net Increase (Decrease) in Liabilities | 112 | 49 | 141 | |||||||||
Net Cash Provided by Operating Activities | 11,085 | 12,605 | 10,102 | |||||||||
Investing Activities: | ||||||||||||
Securities Sold or Matured | 1 | - | - | |||||||||
Payments for Business Acquisition | - | (2,207 | ) | - | ||||||||
Payments for Investments in Subsidiaries | (2,953 | ) | (2,586 | ) | (3,360 | ) | ||||||
Net Cash Used by Investing Activities | (2,952 | ) | (4,793 | ) | (3,360 | ) | ||||||
Financing Activities: | ||||||||||||
Issuance of Common Stock | 2,953 | 2,586 | 3,360 | |||||||||
Cash Dividends | (10,982 | ) | (10,478 | ) | (10,157 | ) | ||||||
Net Cash Used by Financing Activities | (8,029 | ) | (7,892 | ) | (6,797 | ) | ||||||
Increase (Decrease) in Cash and Cash Equivalents | 104 | (80 | ) | (55 | ) | |||||||
Cash and Cash Equivalents at Beginning of Year | 228 | 308 | 363 | |||||||||
Cash and Cash Equivalents at End of Year | $ | 332 | $ | 228 | $ | 308 |
(Dollars in thousands) | Year Ended December 31, | |||||||||||
Statements of Cash Flows | 2022 | 2021 | 2020 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 75,090 | $ | 66,336 | $ | 58,734 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in undistributed net income of the Bank | (42,565 | ) | (58,016 | ) | (40,597 | ) | ||||||
Change in other assets and liabilities | 197 | 739 | (393 | ) | ||||||||
Net cash provided by operating activities | 32,722 | 9,059 | 17,744 | |||||||||
Cash flows from investing activities: | ||||||||||||
Payments for investments in non-qualified retirement plans | - | - | (403 | ) | ||||||||
Securities sold or matured | 124 | - | - | |||||||||
Net cash used in investing activities | 124 | - | (403 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Common stock repurchases | (20,310 | ) | - | (2,834 | ) | |||||||
Issuance of common stock | - | - | 403 | |||||||||
Cash dividends paid | (12,489 | ) | (12,075 | ) | (11,700 | ) | ||||||
Net used in financing activities | (32,799 | ) | (12,075 | ) | (14,131 | ) | ||||||
Net change in cash and cash equivalents | 47 | (3,016 | ) | 3,210 | ||||||||
Cash and cash equivalents, beginning of year | 1,535 | 4,551 | 1,341 | |||||||||
Cash and cash equivalents, end of year | $ | 1,582 | $ | 1,535 | $ | 4,551 |
2017 (in thousands except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||||||||||||
Total Interest Income | $ | 27,242 | $ | 28,069 | $ | 29,609 | $ | 29,692 | $ | 114,612 | ||||||||||
Total Interest Expense | 1,376 | 1,538 | 1,759 | 1,616 | 6,289 | |||||||||||||||
Net Interest Income | 25,866 | 26,531 | 27,850 | 28,076 | 108,323 | |||||||||||||||
Provision for Credit Losses | 600 | 650 | 1,600 | - | 2,850 | |||||||||||||||
Net Interest Income After | ||||||||||||||||||||
Provision for Credit Losses | 25,266 | 25,881 | 26,250 | 28,076 | 105,473 | |||||||||||||||
Total Non-Interest Income | 5,406 | 3,539 | 3,638 | 4,179 | 16,762 | |||||||||||||||
Total Non-Interest Expense | 18,422 | 16,525 | 16,307 | 16,500 | 67,754 | |||||||||||||||
Income Before Income Taxes | 12,250 | 12,895 | 13,581 | 15,755 | 54,481 | |||||||||||||||
Provision for Income Taxes | 4,429 | 4,708 | 5,000 | 11,974 | 26,111 | |||||||||||||||
Net Income | $ | 7,821 | $ | 8,187 | $ | 8,581 | $ | 3,781 | $ | 28,370 | ||||||||||
Basic Earnings Per Common Share | $ | 9.68 | $ | 10.12 | $ | 10.59 | $ | 4.64 | $ | 35.03 |
2016 (in thousands except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||||||||||||
Total Interest Income | $ | 24,026 | $ | 24,314 | $ | 25,262 | $ | 25,664 | $ | 99,266 | ||||||||||
Total Interest Expense | 920 | 951 | 1,110 | 1,215 | 4,196 | |||||||||||||||
Net Interest Income | 23,106 | 23,363 | 24,152 | 24,449 | 95,070 | |||||||||||||||
Provision for Credit Losses | 2,600 | - | 250 | 3,485 | 6,335 | |||||||||||||||
Net Interest Income After | ||||||||||||||||||||
Provision for Credit Losses | 20,506 | 23,363 | 23,902 | 20,964 | 88,735 | |||||||||||||||
Total Non-Interest Income | 2,721 | 2,875 | 4,553 | 5,108 | 15,257 | |||||||||||||||
Total Non-Interest Expense | 12,019 | 14,737 | 16,414 | 15,002 | 58,172 | |||||||||||||||
Income Before Income Taxes | 11,208 | 11,501 | 12,041 | 11,070 | 45,820 | |||||||||||||||
Provision for Income Taxes | 4,036 | 4,169 | 4,503 | 3,389 | 16,097 | |||||||||||||||
Net Income | $ | 7,172 | $ | 7,332 | $ | 7,538 | $ | 7,681 | $ | 29,723 | ||||||||||
Basic Earnings Per Common Share | $ | 9.06 | $ | 9.25 | $ | 9.51 | $ | 9.62 | $ | 37.44 |
Controls and Procedures |
/s/ Kent A. Steinwert | /s/ Stephen W. Haley | |
Kent A. Steinwert | Stephen W. Haley | |
Chairman, President, and Chief Executive Officer | Executive Vice President and Chief Financial Officer |
(1) | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
(2) | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
(3) | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Executive Compensation |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Certain Relationships and Related Transactions, and Director Independence |
Principal Accounting Fees and Services |
(1) | Financial Statements and |
(2) | Financial Statement schedules required to be filed by Item 8 of this Annual Report on Form 10-K. |
(3) | The following exhibits are required by Item 601 of Regulation S-K and are included as part of this Annual Report on Form 10-K: |
Exhibit Number | Description |
Amended and Restated By-Laws year ended December 31, 2022. | |
Certificate of Designation for the Series A Junior Participating Preferred Stock (included as Exhibit A to the Rights Agreement between Farmers & Merchants Bancorp and Registrar and Transfer Company, dated as of August 5, 2008, filed as Exhibit 4.1 below), filed on the Registrant’s Form 10-Q for the quarter ended June 30, 2008, is incorporated herein by reference. | |
Rights Agreement between Farmers & Merchants Bancorp and Registrar and Transfer Company, dated as of August 5, 2008, including Form of Right Certificate attached thereto as Exhibit B, filed on the Registrant’s Form 10-Q for the quarter ended June 30, 2008, is incorporated herein by reference. | |
Amendment No. 1 to Rights Agreement between Farmers & Merchants Bancorp and Computershare Trust, N.A., as Rights Agent, dated as of February 18, 2016, incorporated herein by reference to Exhibit 4.2 of the Registrant’s Form 8-A/A filed on February 19, 2016. | |
Description of F&M Bancorp Capital Stock, filed on Registrant’s Form 10-K for the year ended December 31, 2019. | |
Amended and Restated Employment Agreement effective | |
Amended and Restated Employment Agreement effective | |
Amended and Restated Employment Agreement effective | |
Amended and Restated Employment Agreement effective |
Employment Agreement effective May 1, 2017, between Farmers & Merchants Bank of Central California and David M. Zitterow, filed on the Registrant’s Current Report on Form 8-K dated June 30, 2017, is incorporated herein by reference. | |
Employment Agreement effective August 1, 2022, between Farmers & Merchants Bank of Central California and Kyle Koelbel, filed on the Registrant’s Form 10-Q for the quarter ended September 30, 2022, is incorporated herein by reference. | |
Executive Retirement Plan – Performance Componentas amended on November 5, 2010, filed on Registrant’s Form 10-Q for the period ended September 30, 2010, is incorporated herein by reference. | |
Executive Retirement Plan – Retention Component as amended on November 5, 2010, filed on Registrant’s Form 10-Q for the period ended September 30, 2010, is incorporated herein by reference. | |
Executive Retirement Plan – Salary Component, amended and restated on November 29, 2014, filed on Registrant’s Form 10-K for the year ended December 31, 2014, is incorporated herein by reference. | |
Executive Retirement Plan – Equity Component, amended and restated on November 29, 2014, filed on Registrant’s Form 10-K for the year ended December 31, 2014, is incorporated herein by reference. | |
Senior Management Retention Plan, | |
Subsidiaries of the Registrant, filed on Registrant’s Form 10-K for the year ended December 31, 2003, is incorporated herein by reference. | |
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | |
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | |
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH | Inline XBRL Taxonomy Extension Schema |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |
Cover Page Interactive Data File (formatted as inline XBRL |
FARMERS & | MERCHANTS BANCORP | ||
/s/ Kent A. Steinwert | |||
Kent A. Steinwert | |||
Director, Chairman, President and Chief Executive Officer (Principal Executive Officer) |
FARMERS & MERCHANTS BANCORP | |||
/s/ Stephen W. Haley | |||
Stephen W. Haley | |||
Executive Vice President | |||
and Chief Financial Officer | (Principal Financial Officer) |
/s/ Kent A. Steinwert | Director, Chairman, President and Chief Executive Officer | ||
Kent A. Steinwert | (Principal Executive Officer) | ||
/s/ Stephen W. Haley | Executive Vice President | ||
Stephen W. Haley | (Principal Financial and Accounting Officer) | ||
/s/ Edward Corum, Jr. | Director | ||
Edward Corum, Jr. | |||
/s/ | |||
Stephenson K. Green | Director | ||
/s/ Gary Long | |||
Director | |||
Gary Long | |||
/s/ | Director | ||
Kevin Sanguinetti | |||
/s/ Calvin Suess | Director | ||
Calvin Suess | |||
/s/ Craig James | Director | ||
Craig James |