Delaware | 94-3327828 | |
(State or other jurisdiction of incorporation or organization) | ||
111 W. Pine Street, Lodi, California | 95240 | |
(Address of principal Executive offices) |
Large accelerated filer ☐ | Accelerated filer ☒ | |
Non-accelerated filer ☐ (Do not check if a smaller reporting company) | ||
Smaller Reporting Company | ||
Emerging growth company ☐ |
PART I. - FINANCIAL INFORMATION | Page | |||
3 | ||||
4 | ||||
5 | ||||
6 | ||||
7 | ||||
8 | ||||
Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||
55 | ||||
PART II. - OTHER INFORMATION | ||||
Item 5 - | Other Information | |||
Assets | Sept. 30, 2018 (Unaudited) | December 31, 2017 | Sept. 30, 2017 (Unaudited) | |||||||||
Cash and Cash Equivalents: | ||||||||||||
Cash and Due from Banks | $ | 52,709 | $ | 65,956 | $ | 44,166 | ||||||
Interest Bearing Deposits with Banks | 58,072 | 121,193 | 149,104 | |||||||||
Total Cash and Cash Equivalents | 110,781 | 187,149 | 193,270 | |||||||||
Investment Securities: | ||||||||||||
Available-for-Sale | 458,311 | 481,596 | 456,323 | |||||||||
Held-to-Maturity | 51,459 | 54,460 | 55,542 | |||||||||
Total Investment Securities | 509,770 | 536,056 | 511,865 | |||||||||
Loans & Leases: | 2,416,602 | 2,215,295 | 2,216,779 | |||||||||
Less: Allowance for Credit Losses | 53,067 | 50,342 | 50,744 | |||||||||
Loans & Leases, Net | 2,363,535 | 2,164,953 | 2,166,035 | |||||||||
Premises and Equipment, Net | 29,614 | 28,679 | 28,734 | |||||||||
Bank Owned Life Insurance | 60,968 | 59,583 | 59,128 | |||||||||
Interest Receivable and Other Assets | 108,794 | 99,032 | 112,743 | |||||||||
Total Assets | $ | 3,183,462 | $ | 3,075,452 | $ | 3,071,775 | ||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 867,552 | $ | 832,652 | $ | 767,162 | ||||||
Interest Bearing Transaction | 602,494 | 601,476 | 564,904 | |||||||||
Savings and Money Market | 844,553 | 813,703 | 827,588 | |||||||||
Time | 462,324 | 475,397 | 549,773 | |||||||||
Total Deposits | 2,776,923 | 2,723,228 | 2,709,427 | |||||||||
Subordinated Debentures | 10,310 | 10,310 | 10,310 | |||||||||
Interest Payable and Other Liabilities | 96,138 | 42,254 | 49,409 | |||||||||
Total Liabilities | 2,883,371 | 2,775,792 | 2,769,146 | |||||||||
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, 783,721, 812,304 and 812,304 | ||||||||||||
Shares Issued and Outstanding at September 30, 2018, December 31, 2017 and September 30, 2017, Respectively | 8 | 8 | 8 | |||||||||
Additional Paid-In Capital | 72,974 | 93,624 | 93,624 | |||||||||
Retained Earnings | 233,671 | 206,845 | 208,443 | |||||||||
Accumulated Other Comprehensive (Loss) Income, Net Of Taxes | (6,562 | ) | (817 | ) | 554 | |||||||
Total Shareholders' Equity | 300,091 | 299,660 | 302,629 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 3,183,462 | $ | 3,075,452 | $ | 3,071,775 |
(in thousands except share data) | ||||||||||||
Assets | March 31, 2018 (Unaudited) | December 31, 2017 | March 31, 2017 (Unaudited) | |||||||||
Cash and Cash Equivalents: | ||||||||||||
Cash and Due from Banks | $ | 37,974 | $ | 65,956 | $ | 42,164 | ||||||
Interest Bearing Deposits with Banks | 97,010 | 121,193 | 122,348 | |||||||||
Total Cash and Cash Equivalents | 134,984 | 187,149 | 164,512 | |||||||||
Investment Securities: | ||||||||||||
Available-for-Sale | 495,814 | 481,596 | 452,842 | |||||||||
Held-to-Maturity | 53,527 | 54,460 | 57,281 | |||||||||
Total Investment Securities | 549,341 | 536,056 | 510,123 | |||||||||
Loans & Leases: | 2,235,083 | 2,215,295 | 2,146,032 | |||||||||
Less: Allowance for Credit Losses | 50,677 | 50,342 | 48,400 | |||||||||
Loans & Leases, Net | 2,184,406 | 2,164,953 | 2,097,632 | |||||||||
Premises and Equipment, Net | 28,491 | 28,679 | 28,781 | |||||||||
Bank Owned Life Insurance | 60,035 | 59,583 | 58,216 | |||||||||
Interest Receivable and Other Assets | 102,726 | 99,032 | 93,745 | |||||||||
Total Assets | $ | 3,059,983 | $ | 3,075,452 | $ | 2,953,009 | ||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 797,435 | $ | 832,652 | $ | 709,908 | ||||||
Interest Bearing Transaction | 589,883 | 601,476 | 503,678 | |||||||||
Savings and Money Market | 831,324 | 813,703 | 804,383 | |||||||||
Time | 482,763 | 475,397 | 589,644 | |||||||||
Total Deposits | 2,701,405 | 2,723,228 | 2,607,613 | |||||||||
Subordinated Debentures | 10,310 | 10,310 | 10,310 | |||||||||
Interest Payable and Other Liabilities | 42,392 | 42,254 | 46,539 | |||||||||
Total Liabilities | 2,754,107 | 2,775,792 | 2,664,462 | |||||||||
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, 812,304 and 818,704 Shares Issued and Outstanding at March 31, 2018, December 31, 2017 and March 31, 2017, Respectively | 8 | 8 | 8 | |||||||||
Additional Paid-In Capital | 93,624 | 93,624 | 91,482 | |||||||||
Retained Earnings | 216,786 | 206,845 | 197,134 | |||||||||
Accumulated Other Comprehensive Loss | (4,542 | ) | (817 | ) | (77 | ) | ||||||
Total Shareholders' Equity | 305,876 | 299,660 | 288,547 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 3,059,983 | $ | 3,075,452 | $ | 2,953,009 |
(in thousands except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest Income | ||||||||||||||||
Interest and Fees on Loans & Leases | $ | 30,959 | $ | 26,491 | $ | 86,930 | $ | 76,270 | ||||||||
Interest on Deposits with Banks | 638 | 648 | 1,737 | 1,155 | ||||||||||||
Interest on Investment Securities: | ||||||||||||||||
Taxable | 2,074 | 2,038 | 6,770 | 6,174 | ||||||||||||
Exempt from Federal Tax | 394 | 432 | 1,217 | 1,321 | ||||||||||||
Total Interest Income | 34,065 | 29,609 | 96,654 | 84,920 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 2,020 | 1,644 | 4,954 | 4,353 | ||||||||||||
Subordinated Debentures | 137 | 115 | 385 | 320 | ||||||||||||
Total Interest Expense | 2,157 | 1,759 | 5,339 | 4,673 | ||||||||||||
Net Interest Income | 31,908 | 27,850 | 91,315 | 80,247 | ||||||||||||
Provision for Credit Losses | 2,500 | 1,600 | 3,333 | 2,850 | ||||||||||||
Net Interest Income After Provision for Credit Losses | 29,408 | 26,250 | 87,982 | 77,397 | ||||||||||||
Non-Interest Income | ||||||||||||||||
Service Charges on Deposit Accounts | 915 | 897 | 2,574 | 2,591 | ||||||||||||
Net (Loss) Gain on Sale of Investment Securities | - | - | (1,330 | ) | 131 | |||||||||||
Increase in Cash Surrender Value of Life Insurance | 473 | 458 | 1,385 | 1,367 | ||||||||||||
Debit Card and ATM Fees | 1,101 | 990 | 3,213 | 2,877 | ||||||||||||
Net Gain on Deferred Compensation Investments | 715 | 510 | 1,904 | 1,703 | ||||||||||||
Other | 1,004 | 783 | 3,410 | 3,914 | ||||||||||||
Total Non-Interest Income | 4,208 | 3,638 | 11,156 | 12,583 | ||||||||||||
Non-Interest Expense | ||||||||||||||||
Salaries and Employee Benefits | 12,329 | 10,809 | 37,509 | 34,751 | ||||||||||||
Net Gain on Deferred Compensation Investments | 715 | 510 | 1,904 | 1,703 | ||||||||||||
Occupancy | 984 | 864 | 2,833 | 2,580 | ||||||||||||
Equipment | 1,078 | 957 | 3,119 | 2,970 | ||||||||||||
Marketing | 257 | 329 | 976 | 867 | ||||||||||||
Legal | 261 | 51 | 1,553 | 309 | ||||||||||||
FDIC Insurance | 227 | 233 | 693 | 694 | ||||||||||||
Gain on Sale of ORE | - | - | - | (414 | ) | |||||||||||
Other | 2,770 | 2,554 | 8,115 | 7,794 | ||||||||||||
Total Non-Interest Expense | 18,621 | 16,307 | 56,702 | 51,254 | ||||||||||||
Income Before Income Taxes | 14,995 | 13,581 | 42,436 | 38,726 | ||||||||||||
Provision for Income Taxes | 2,995 | 5,000 | 9,945 | 14,137 | ||||||||||||
Net Income | $ | 12,000 | $ | 8,581 | $ | 32,491 | $ | 24,589 | ||||||||
Basic Earnings Per Common Share | $ | 15.12 | $ | 10.59 | $ | 40.26 | $ | 30.39 |
(in thousands except per share data) | Three Months Ended March 31, | |||||||
2018 | 2017 | |||||||
Interest Income | ||||||||
Interest and Fees on Loans & Leases | $ | 27,044 | $ | 24,531 | ||||
Interest on Deposits with Banks | 585 | 249 | ||||||
Interest on Investment Securities: | ||||||||
Taxable | 2,381 | 2,012 | ||||||
Exempt from Federal Tax | 418 | 450 | ||||||
Total Interest Income | 30,428 | 27,242 | ||||||
Interest Expense | ||||||||
Deposits | 1,405 | 1,276 | ||||||
Subordinated Debentures | 117 | 100 | ||||||
Total Interest Expense | 1,522 | 1,376 | ||||||
Net Interest Income | 28,906 | 25,866 | ||||||
Provision for Credit Losses | 333 | 600 | ||||||
Net Interest Income After Provision for Credit Losses | 28,573 | 25,266 | ||||||
Non-Interest Income | ||||||||
Service Charges on Deposit Accounts | 817 | 846 | ||||||
Increase in Cash Surrender Value of Life Insurance | 452 | 455 | ||||||
Debit Card and ATM Fees | 1,016 | 910 | ||||||
Net Gain on Deferred Compensation Investments | 782 | 794 | ||||||
Other | 1,598 | 2,401 | ||||||
Total Non-Interest Income | 4,665 | 5,406 | ||||||
Non-Interest Expense | ||||||||
Salaries and Employee Benefits | 13,527 | 12,492 | ||||||
Net Gain on Deferred Compensation Investments | 782 | 794 | ||||||
Occupancy | 942 | 848 | ||||||
Equipment | 1,023 | 987 | ||||||
Marketing | 329 | 175 | ||||||
Legal | 440 | 183 | ||||||
FDIC Insurance | 239 | 228 | ||||||
Gain on Sale of ORE | - | (114 | ) | |||||
Other | 2,654 | 2,829 | ||||||
Total Non-Interest Expense | 19,936 | 18,422 | ||||||
Income Before Income Taxes | 13,302 | 12,250 | ||||||
Provision for Income Taxes | 3,361 | 4,429 | ||||||
Net Income | $ | 9,941 | $ | 7,821 | ||||
Basic Earnings Per Common Share | $ | 12.24 | $ | 9.68 |
(in thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net Income | $ | 12,000 | $ | 8,581 | $ | 32,491 | $ | 24,589 | ||||||||
Other Comprehensive Income | ||||||||||||||||
Increase in Net Unrealized (Loss) Gain on Available-for-Sale Securities | (1,679 | ) | 322 | (9,486 | ) | 1,106 | ||||||||||
Deferred Tax Benefit (Expense) Related to Unrealized Gains | 496 | (135 | ) | 2,816 | (465 | ) | ||||||||||
Reclassification Adjustment for Realized Losses (Gains) on Available-for-Sale Securities Included in Net Income | - | - | 1,330 | (131 | ) | |||||||||||
Deferred Tax Benefit (Expense) Related to Reclassification Adjustment | - | - | (405 | ) | 55 | |||||||||||
Change in Net Unrealized (Losses) Gains on Available-for-Sale Securities, Net of Tax | (1,183 | ) | 187 | (5,745 | ) | 565 | ||||||||||
Total Other Comprehensive (Loss) Income | (1,183 | ) | 187 | (5,745 | ) | 565 | ||||||||||
Comprehensive Income | $ | 10,817 | $ | 8,768 | $ | 26,746 | $ | 25,154 |
(in thousands) | Three Months Ended March 31, | |||||||
2018 | 2017 | |||||||
Net Income | $ | 9,941 | $ | 7,821 | ||||
Other Comprehensive Income | ||||||||
Increase in Net Unrealized Loss on Available-for-Sale Securities | (5,288 | ) | (114 | ) | ||||
Deferred Tax Benefit Related to Unrealized Losses | 1,563 | 48 | ||||||
Change in Net Unrealized Loss on Available-for-Sale Securities, Net of Tax | (3,725 | ) | (66 | ) | ||||
Total Other Comprehensive Loss | (3,725 | ) | (66 | ) | ||||
Comprehensive Income | $ | 6,216 | $ | 7,755 |
(in thousands except share data) | Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, net | Total Shareholders' Equity | ||||||||||||||||||
Balance, January 1, 2017 | 807,329 | $ | 8 | $ | 90,671 | $ | 189,313 | $ | (11 | ) | $ | 279,981 | ||||||||||||
Net Income | - | 24,589 | - | 24,589 | ||||||||||||||||||||
Cash Dividends Declared on | - | |||||||||||||||||||||||
Common Stock ($6.75 per share) | - | - | (5,459 | ) | - | (5,459 | ) | |||||||||||||||||
Issuance of Common Stock | 4,975 | - | 2,953 | - | - | 2,953 | ||||||||||||||||||
Change in Net Unrealized Gains on Securities Available-for-Sale, Net of Tax | - | - | - | 565 | 565 | |||||||||||||||||||
Balance, September 30, 2017 | 812,304 | $ | 8 | $ | 93,624 | $ | 208,443 | $ | 554 | $ | 302,629 | |||||||||||||
Balance, January 1, 2018 | 812,304 | $ | 8 | $ | 93,624 | $ | 206,845 | $ | (817 | ) | $ | 299,660 | ||||||||||||
Net Income | - | 32,491 | - | 32,491 | ||||||||||||||||||||
Cash Dividends Declared on | - | |||||||||||||||||||||||
Common Stock ($6.90 per share) | - | - | (5,665 | ) | - | (5,665 | ) | |||||||||||||||||
Repurchase of Common Stock | (44,503 | ) | - | (31,152 | ) | - | - | (31,152 | ) | |||||||||||||||
Issuance of Common Stock | 15,920 | - | 10,502 | - | - | 10,502 | ||||||||||||||||||
Change in Net Unrealized Loss on Securities Available-for-Sale, Net of Tax | - | - | - | (5,745 | ) | (5,745 | ) | |||||||||||||||||
Balance, September 30, 2018 | 783,721 | $ | 8 | $ | 72,974 | $ | 233,671 | $ | (6,562 | ) | $ | 300,091 |
(in thousands except share data) | Accumulated | |||||||||||||||||||||||
Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Retained Earnings | Other Comprehensive Loss, net | Total Shareholders' Equity | |||||||||||||||||||
Balance, January 1, 2017 | 807,329 | $ | 8 | $ | 90,671 | $ | 189,313 | $ | (11 | ) | $ | 279,981 | ||||||||||||
Net Income | - | 7,821 | - | 7,821 | ||||||||||||||||||||
Issuance of Common Stock | 1,375 | - | 811 | - | - | 811 | ||||||||||||||||||
Change in Net Unrealized Loss on Securities Available-for-Sale, net of tax | - | - | - | (66 | ) | (66 | ) | |||||||||||||||||
Balance, March 31, 2017 | 808,704 | $ | 8 | $ | 91,482 | $ | 197,134 | $ | (77 | ) | $ | 288,547 | ||||||||||||
Balance, January 1, 2018 | 812,304 | $ | 8 | $ | 93,624 | $ | 206,845 | $ | (817 | ) | $ | 299,660 | ||||||||||||
Net Income | - | 9,941 | - | 9,941 | ||||||||||||||||||||
Change in Net Unrealized Loss on Securities Available-for-Sale, net of tax | - | - | - | (3,725 | ) | (3,725 | ) | |||||||||||||||||
Balance, March 31, 2018 | 812,304 | $ | 8 | $ | 93,624 | $ | 216,786 | $ | (4,542 | ) | $ | 305,876 |
Nine Months Ended September 30, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Operating Activities: | ||||||||
Net Income | $ | 32,491 | $ | 24,589 | ||||
Adjustments to Reconcile Net Income to Net | ||||||||
Cash Provided by Operating Activities: | ||||||||
Provision for Credit Losses | 3,333 | 2,850 | ||||||
Depreciation and Amortization | 1,751 | 1,595 | ||||||
Net Amortization of Investment Security Premiums & Discounts | 768 | 1,097 | ||||||
Amortization of Core Deposit Intangible | 81 | 82 | ||||||
Accretion of Discount on Acquired Loans | (115 | ) | (163 | ) | ||||
Net Loss (Gain) on Sale of Investment Securities | 1,330 | (131 | ) | |||||
Net Gain on Sale of Property & Equipment | (295 | ) | (1,189 | ) | ||||
Net Gain on Sale of ORE | - | (414 | ) | |||||
Earnings from Equity Investment | (381 | ) | - | |||||
Dividends from Equity Investment | 63 | - | ||||||
Net Change in Operating Assets & Liabilities: | ||||||||
Net Decrease (Increase) in Interest Receivable and Other Assets | 2,083 | (2,315 | ) | |||||
Net Increase in Interest Payable and Other Liabilities | 3,441 | 107 | ||||||
Net Cash Provided by Operating Activities | 44,550 | 26,108 | ||||||
Investing Activities: | ||||||||
Purchase of Investment Securities Available-for-Sale | (274,440 | ) | (208,985 | ) | ||||
Proceeds from Sold, Matured or Called Securities Available-for-Sale | 342,208 | 201,001 | ||||||
Purchase of Investment Securities Held-to-Maturity | (3,042 | ) | (1,070 | ) | ||||
Proceeds from Matured or Called Securities Held-to-Maturity | 5,998 | 3,592 | ||||||
Net Loans & Leases Paid, Originated or Acquired | (201,914 | ) | (39,245 | ) | ||||
Principal Collected on Loans & Leases Previously Charged Off | 115 | 205 | ||||||
Additions to Premises and Equipment | (3,654 | ) | (3,215 | ) | ||||
Purchase of Other Investments | (4,053 | ) | (12,728 | ) | ||||
Proceeds from Sale of Property & Equipment | 986 | 3,304 | ||||||
Proceeds from Sale of Other Real Estate | - | 3,186 | ||||||
Net Cash Used in Investing Activities | (137,796 | ) | (53,955 | ) | ||||
Financing Activities: | ||||||||
Net Increase in Deposits | 53,695 | 127,716 | ||||||
Common Stock Repurchases | (31,152 | ) | - | |||||
Cash Dividends | (5,665 | ) | (5,459 | ) | ||||
Net Cash Provided by Financing Activities | 16,878 | 122,257 | ||||||
(Decrease) Increase in Cash and Cash Equivalents | (76,368 | ) | 94,410 | |||||
Cash and Cash Equivalents at Beginning of Period | 187,149 | 98,860 | ||||||
Cash and Cash Equivalents at End of Period | $ | 110,781 | $ | 193,270 | ||||
Supplementary Data | ||||||||
Cash Payments Made for Income Taxes | $ | 5,421 | $ | 13,142 | ||||
Issuance of Common Stock | $ | 10,502 | $ | 2,953 | ||||
Interest Paid | $ | 5,248 | $ | 4,586 | ||||
Supplementary Noncash Disclosure | ||||||||
Security (purchases) sales settled in subsequent period | $ | (55,000 | ) | $ | - |
Three Months Ended | ||||||||
(in thousands) | March 31, 2018 | March 31, 2017 | ||||||
Operating Activities: | ||||||||
Net Income | $ | 9,941 | $ | 7,821 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
Provision for Credit Losses | 333 | 600 | ||||||
Depreciation and Amortization | 582 | 494 | ||||||
Net Amortization of Investment Security Premiums & Discounts | 277 | 402 | ||||||
Amortization of Core Deposit Intangible | 27 | 27 | ||||||
Accretion of Discount on Acquired Loans | (18 | ) | (66 | ) | ||||
Net (Gain) on Sale of Property & Equipment | (292 | ) | (1,108 | ) | ||||
Net Gain on Sale of ORE | - | (114 | ) | |||||
Net Change in Operating Assets & Liabilities: | ||||||||
Net Decrease in Interest Receivable and Other Assets | (2,525 | ) | 5,378 | |||||
Net Increase in Interest Payable and Other Liabilities | 682 | (3,452 | ) | |||||
Net Cash Provided by Operating Activities | 9,007 | 9,982 | ||||||
Investing Activities: | ||||||||
Purchase of Investment Securities Available-for-Sale | (109,482 | ) | (79,007 | ) | ||||
Proceeds from Sold, Matured or Called Securities Available-for-Sale | 89,724 | 73,905 | ||||||
Purchase of Investment Securities Held-to-Maturity | (1,952 | ) | (210 | ) | ||||
Proceeds from Matured or Called Securities Held-to-Maturity | 2,870 | 1,023 | ||||||
Net Loans & Leases Paid, Originated or Acquired | (19,791 | ) | 31,484 | |||||
Principal Collected on Loans & Leases Previously Charged Off | 23 | 32 | ||||||
Additions to Premises and Equipment | (1,085 | ) | (1,157 | ) | ||||
Purchase of Other Investments | (639 | ) | (128 | ) | ||||
Proceeds from Sale of Property & Equipment | 983 | 2,219 | ||||||
Proceeds from Sale of Other Real Estate | - | 1,607 | ||||||
Net Cash (Used in) Provided by Investing Activities | (39,349 | ) | 29,768 | |||||
Financing Activities: | ||||||||
Net (Decrease) Increase in Deposits | (21,823 | ) | 25,902 | |||||
Net Cash (Used in) Provided by Financing Activities | (21,823 | ) | 25,902 | |||||
(Decrease) Increase in Cash and Cash Equivalents | (52,165 | ) | 65,652 | |||||
Cash and Cash Equivalents at Beginning of Period | 187,149 | 98,860 | ||||||
Cash and Cash Equivalents at End of Period | $ | 134,984 | $ | 164,512 | ||||
Supplementary Data | ||||||||
Issuance of Common Stock to the Bank's Non-Qualified Retirement Plans | $ | - | $ | 811 | ||||
Interest Paid | $ | 1,750 | $ | 1,346 |
1. | Significant Accounting Policies |
2. | Investment Securities |
Amortized | Gross Unrealized | Fair/Book | ||||||||||||||
March 31, 2018 | Cost | Gains | Losses | Value | ||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,068 | $ | 27 | $ | - | $ | 3,095 | ||||||||
US Treasury Notes | 144,147 | 3 | 741 | 143,409 | ||||||||||||
US Govt SBA | 27,786 | 12 | 261 | 27,537 | ||||||||||||
Mortgage Backed Securities (1) | 324,251 | 393 | 5,881 | 318,763 | ||||||||||||
Other | 3,010 | - | - | 3,010 | ||||||||||||
Total | $ | 502,262 | $ | 435 | $ | 6,883 | $ | 495,814 |
Amortized | Gross Unrealized | Fair/Book | ||||||||||||||||||||||||||||||
December 31, 2017 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
September 30, 2018 | Amortized Cost | Gross Unrealized | Fair/Book Value | |||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,080 | $ | 48 | $ | - | $ | 3,128 | $ | 3,045 | $ | 7 | $ | - | $ | 3,052 | ||||||||||||||||
US Treasury Notes | 144,606 | - | 442 | 144,164 | 164,671 | - | 463 | 164,208 | ||||||||||||||||||||||||
US Govt SBA | 29,559 | 29 | 208 | 29,380 | 17,144 | 6 | 177 | 16,973 | ||||||||||||||||||||||||
Mortgage Backed Securities (1) | 302,502 | 939 | 1,527 | 301,914 | 279,757 | 265 | 8,955 | 271,067 | ||||||||||||||||||||||||
Other | 3,010 | - | - | 3,010 | 3,011 | - | - | 3,011 | ||||||||||||||||||||||||
Total | $ | 482,757 | $ | 1,016 | $ | 2,177 | $ | 481,596 | $ | 467,628 | $ | 278 | $ | 9,595 | $ | 458,311 |
Amortized | Gross Unrealized | Fair/Book | ||||||||||||||||||||||||||||||
March 31, 2017 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
December 31, 2017 | Amortized Cost | Gross Unrealized | Fair/Book Value | |||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,115 | $ | 102 | $ | - | $ | 3,217 | $ | 3,080 | $ | 48 | $ | - | $ | 3,128 | ||||||||||||||||
US Treasury Notes | 104,717 | 2 | 300 | 104,419 | 144,606 | - | 442 | 144,164 | ||||||||||||||||||||||||
US Govt SBA | 34,947 | 34 | 247 | 34,734 | 29,559 | 29 | 208 | 29,380 | ||||||||||||||||||||||||
Mortgage Backed Securities (1) | 309,187 | 1,820 | 1,545 | 309,462 | 302,502 | 939 | 1,527 | 301,914 | ||||||||||||||||||||||||
Other | 1,010 | - | - | 1,010 | 3,010 | - | - | 3,010 | ||||||||||||||||||||||||
Total | $ | 452,976 | $ | 1,958 | $ | 2,092 | $ | 452,842 | $ | 482,757 | $ | 1,016 | $ | 2,177 | $ | 481,596 |
September 30, 2017 | Amortized Cost | Gross Unrealized | Fair/Book Value | |||||||||||||
Gains | Losses | |||||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,091 | $ | 78 | $ | - | $ | 3,169 | ||||||||
US Treasury Notes | 144,657 | 2 | 249 | 144,410 | ||||||||||||
US Govt SBA | 31,732 | 45 | 86 | 31,691 | ||||||||||||
Mortgage Backed Securities (1) | 274,877 | 1,985 | 819 | 276,043 | ||||||||||||
Other | 1,010 | - | - | 1,010 | ||||||||||||
Total | $ | 455,367 | $ | 2,110 | $ | 1,154 | $ | 456,323 |
Book | Gross Unrealized | Fair | ||||||||||||||
March 31, 2018 | Value | Gains | Losses | Value | ||||||||||||
Obligations of States and Political Subdivisions | $ | 53,527 | $ | 274 | $ | 56 | $ | 53,745 | ||||||||
Total | $ | 53,527 | $ | 274 | $ | 56 | $ | 53,745 |
Book | Gross Unrealized | Fair | ||||||||||||||||||||||||||||||
December 31, 2017 | Value | Gains | Losses | Value | ||||||||||||||||||||||||||||
September 30, 2018 | Book Value | Gross Unrealized | Fair Value | |||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 54,460 | $ | 776 | $ | - | $ | 55,236 | $ | 51,459 | $ | 97 | $ | 174 | $ | 51,382 | ||||||||||||||||
Total | $ | 54,460 | $ | 776 | $ | - | $ | 55,236 | $ | 51,459 | $ | 97 | $ | 174 | $ | 51,382 |
Book | Gross Unrealized | Fair | ||||||||||||||||||||||||||||||
March 31, 2017 | Value | Gains | Losses | Value | ||||||||||||||||||||||||||||
December 31, 2017 | Book Value | Gross Unrealized | Fair Value | |||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 57,281 | $ | 414 | $ | 22 | $ | 57,673 | $ | 54,460 | $ | 776 | $ | - | $ | 55,236 | ||||||||||||||||
Total | $ | 57,281 | $ | 414 | $ | 22 | $ | 57,673 | $ | 54,460 | $ | 776 | $ | - | $ | 55,236 |
September 30, 2017 | Book Value | Gross Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Obligations of States and Political Subdivisions | $ | 55,542 | $ | 749 | $ | - | $ | 56,291 | ||||||||
Total | $ | 55,542 | $ | 749 | $ | - | $ | 56,291 |
Available-for-Sale | Held-to-Maturity | Available-for-Sale | Held-to-Maturity | |||||||||||||||||||||||||||||
March 31, 2018 | Amortized Cost | Fair/Book Value | Book Value | Fair Value | ||||||||||||||||||||||||||||
September 30, 2018 | Amortized Cost | Fair/Book Value | Book Value | Fair Value | ||||||||||||||||||||||||||||
Within one year | $ | 123,199 | $ | 122,897 | $ | 2,907 | $ | 2,915 | $ | 156,111 | $ | 155,934 | $ | 2,085 | $ | 2,086 | ||||||||||||||||
After one year through five years | 14,798 | 14,762 | 6,711 | 6,714 | 15,601 | 15,319 | 6,730 | 6,733 | ||||||||||||||||||||||||
After five years through ten years | 17,877 | 17,482 | 17,707 | 17,795 | 1,566 | 1,563 | 20,230 | 20,210 | ||||||||||||||||||||||||
After ten years | 22,137 | 21,910 | 26,202 | 26,321 | 14,593 | 14,428 | 22,414 | 22,353 | ||||||||||||||||||||||||
178,011 | 177,051 | 53,527 | 53,745 | 187,871 | 187,244 | 51,459 | 51,382 | |||||||||||||||||||||||||
Investment securities not due at a single maturity date: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 324,251 | 318,763 | - | - | 279,757 | 271,067 | - | - | ||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
Total | $ | 502,262 | $ | 495,814 | $ | 53,527 | $ | 53,745 | $ | 467,628 | $ | 458,311 | $ | 51,459 | $ | 51,382 |
Less Than 12 Months | 12 Months or More | Total | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||||||||||||||||||||||||
US Treasury Notes | $ | 23,551 | $ | 436 | $ | 59,866 | $ | 305 | $ | 83,417 | $ | 741 | $ | 84,315 | $ | 290 | $ | 24,902 | $ | 173 | $ | 109,217 | $ | 463 | ||||||||||||||||||||||||
US Govt SBA | 10,848 | 82 | 11,737 | 179 | 22,585 | 261 | 4,965 | 62 | 8,467 | 115 | 13,432 | 177 | ||||||||||||||||||||||||||||||||||||
Mortgage Backed Securities | 259,314 | 4,606 | 41,230 | 1,275 | 300,544 | 5,881 | 182,243 | 5,772 | 78,272 | 3,183 | 260,515 | 8,955 | ||||||||||||||||||||||||||||||||||||
Total | $ | 293,713 | $ | 5,124 | $ | 112,833 | $ | 1,759 | $ | 406,546 | $ | 6,883 | $ | 271,523 | $ | 6,124 | $ | 111,641 | $ | 3,471 | $ | 383,164 | $ | 9,595 | ||||||||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 7,654 | $ | 56 | $ | - | $ | - | $ | 7,654 | $ | 56 | $ | 15,309 | $ | 174 | $ | - | $ | - | $ | 15,309 | $ | 174 | ||||||||||||||||||||||||
Total | $ | 7,654 | $ | 56 | $ | - | $ | - | $ | 7,654 | $ | 56 | $ | 15,309 | $ | 174 | $ | - | $ | - | $ | 15,309 | $ | 174 |
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 | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||
March 31, 2017 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||||||||||||||||||||||||
US Treasury Notes | $ | 69,433 | $ | 300 | $ | - | $ | - | $ | 69,433 | $ | 300 | $ | 74,414 | $ | 249 | $ | - | $ | - | $ | 74,414 | $ | 249 | ||||||||||||||||||||||||
US Govt SBA | 26,412 | 247 | - | - | 26,412 | 247 | 18,669 | 86 | - | - | 18,669 | 86 | ||||||||||||||||||||||||||||||||||||
Mortgage Backed Securities | 168,546 | 1,545 | - | - | 168,546 | 1,545 | 122,887 | 819 | - | - | 122,887 | 819 | ||||||||||||||||||||||||||||||||||||
Total | $ | 264,391 | $ | 2,092 | $ | - | $ | - | $ | 264,391 | $ | 2,092 | $ | 215,970 | $ | 1,154 | $ | - | $ | - | $ | 215,970 | $ | 1,154 | ||||||||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 4,278 | $ | 22 | $ | - | $ | - | $ | 4,278 | $ | 22 | ||||||||||||||||||||||||||||||||||||
Total | $ | 4,278 | $ | 22 | $ | - | $ | - | $ | 4,278 | $ | 22 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Proceeds | $ | - | $ | - | $ | 31,370 | $ | 7,831 | ||||||||
Gains | - | - | 8 | 143 | ||||||||||||
Losses | - | - | 1,338 | 12 |
3. | Loans & Leases and Allowance for Credit Losses |
March 31, 2018 | Commercial Real Estate | Agricultural Real Estate | Real Estate Construction | Residential 1st Mortgages | Home Equity Lines & Loans | Agricultural | Commercial | Consumer & Other | Leases | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | 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: | Year-To-Date Allowance for Credit Losses: | Year-To-Date Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- January 1, 2018 | $ | 10,922 | $ | 12,085 | $ | 1,846 | $ | 815 | $ | 2,324 | $ | 8,159 | $ | 9,197 | $ | 209 | $ | 3,363 | $ | 1,422 | $ | 50,342 | $ | 10,922 | $ | 12,085 | $ | 1,846 | $ | 815 | $ | 2,324 | $ | 8,159 | $ | 9,197 | $ | 209 | $ | 3,363 | $ | 1,422 | $ | 50,342 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-Offs | - | - | - | - | (4 | ) | - | - | (17 | ) | - | - | (21 | ) | - | - | - | (12 | ) | (14 | ) | - | (613 | ) | (84 | ) | - | - | (723 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | - | - | - | 3 | 1 | 6 | 2 | 11 | - | - | 23 | - | - | - | 12 | 4 | 40 | 19 | 40 | - | - | 115 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | 156 | 157 | 27 | 9 | 22 | (297 | ) | 175 | 36 | 27 | 21 | 333 | (31 | ) | 1,422 | (372 | ) | 59 | 284 | 4 | 1,029 | 142 | 430 | 366 | 3,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance- March 31, 2018 | $ | 11,078 | $ | 12,242 | $ | 1,873 | $ | 827 | $ | 2,343 | $ | 7,868 | $ | 9,374 | $ | 239 | $ | 3,390 | $ | 1,443 | $ | 50,677 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance- September 30, 2018 | $ | 10,891 | $ | 13,507 | $ | 1,474 | $ | 874 | $ | 2,598 | $ | 8,203 | $ | 9,632 | $ | 307 | $ | 3,793 | $ | 1,788 | $ | 53,067 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Third Quarter Allowance for Credit Losses: | Third Quarter Allowance for Credit Losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- July 1, 2018 | $ | 10,783 | $ | 13,314 | $ | 1,616 | $ | 864 | $ | 2,548 | $ | 7,658 | $ | 9,436 | $ | 270 | $ | 3,400 | $ | 1,248 | $ | 51,137 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-Offs | - | - | - | - | (10 | ) | - | (599 | ) | (25 | ) | - | - | (634 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | - | - | - | 6 | 2 | 27 | 16 | 13 | - | - | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | 108 | 193 | (142 | ) | 4 | 58 | 518 | 779 | 49 | 393 | 540 | 2,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance- September 30, 2018 | $ | 10,891 | $ | 13,507 | $ | 1,474 | $ | 874 | $ | 2,598 | $ | 8,203 | $ | 9,632 | $ | 307 | $ | 3,793 | $ | 1,788 | $ | 53,067 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 335 | - | - | 76 | 17 | - | 205 | 8 | - | - | 641 | 314 | - | - | 121 | 15 | - | 192 | 7 | - | - | 649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 10,743 | 12,242 | 1,873 | 751 | 2,326 | 7,868 | 9,169 | 231 | 3,390 | 1,443 | 50,036 | 10,577 | 13,507 | 1,474 | 753 | 2,583 | 8,203 | 9,440 | 300 | 3,793 | 1,788 | 52,418 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 698,349 | $ | 508,400 | $ | 96,315 | $ | 264,137 | $ | 34,691 | $ | 261,427 | $ | 274,682 | $ | 6,685 | $ | 90,397 | $ | - | $ | 2,235,083 | $ | 767,410 | $ | 553,608 | $ | 92,521 | $ | 263,549 | $ | 38,490 | $ | 287,821 | $ | 304,333 | $ | 7,723 | $ | 101,147 | $ | - | $ | 2,416,602 | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 4,784 | - | - | 2,427 | 332 | - | 1,713 | 9 | - | - | 9,265 | 4,713 | 7,238 | - | 2,426 | 305 | - | 1,670 | 7 | - | - | 16,359 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | $ | 693,565 | $ | 508,400 | $ | 96,315 | $ | 261,710 | $ | 34,359 | $ | 261,427 | $ | 272,969 | $ | 6,676 | $ | 90,397 | $ | - | $ | 2,225,818 | $ | 762,697 | $ | 546,370 | $ | 92,521 | $ | 261,123 | $ | 38,185 | $ | 287,821 | $ | 302,663 | $ | 7,716 | $ | 101,147 | $ | - | $ | 2,400,243 |
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 | 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: | Year-To-Date Allowance for Credit Losses: | 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 | $ | 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 | ) | (109 | ) | - | - | (53 | ) | (3 | ) | (374 | ) | - | (146 | ) | - | - | (685 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 109 | - | - | 40 | 8 | 17 | 8 | 76 | - | - | 258 | 109 | - | - | 40 | 8 | 17 | 8 | 76 | - | - | 258 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | (188 | ) | 2,635 | (1,377 | ) | (37 | ) | 179 | 1,135 | 674 | 79 | (223 | ) | (27 | ) | 2,850 | (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 | $ | 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 | 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 | 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 | $ | 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 | 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 | $ | 680,139 | $ | 499,231 | $ | 100,206 | $ | 258,378 | $ | 34,185 | $ | 273,582 | $ | 263,969 | $ | 6,646 | $ | 89,680 | $ | - | $ | 2,206,016 |
March 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 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: | Year-To-Date Allowance for Credit Losses: | 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 | $ | 11,110 | $ | 9,450 | $ | 3,223 | $ | 865 | $ | 2,140 | $ | 7,381 | $ | 8,515 | $ | 200 | $ | 3,586 | $ | 1,449 | $ | 47,919 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-Offs | (109 | ) | - | - | - | - | (7 | ) | - | (35 | ) | - | - | (151 | ) | (109 | ) | - | - | - | - | (7 | ) | - | (114 | ) | - | - | (230 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 7 | - | - | 3 | 2 | - | 4 | 16 | - | - | 32 | 110 | - | - | 37 | 6 | - | 6 | 46 | - | - | 205 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | 657 | (57 | ) | (277 | ) | 12 | (17 | ) | (863 | ) | (40 | ) | 17 | 280 | 888 | 600 | (14 | ) | 1,946 | (473 | ) | 95 | 115 | (14 | ) | 539 | 77 | (392 | ) | 971 | 2,850 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance- March 31, 2017 | $ | 11,665 | $ | 9,393 | $ | 2,946 | $ | 880 | $ | 2,125 | $ | 6,511 | $ | 8,479 | $ | 198 | $ | 3,866 | $ | 2,337 | $ | 48,400 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance- September 30, 2017 | $ | 11,097 | $ | 11,396 | $ | 2,750 | $ | 997 | $ | 2,261 | $ | 7,360 | $ | 9,060 | $ | 209 | $ | 3,194 | $ | 2,420 | $ | 50,744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Third Quarter Allowance for Credit Losses: | Third Quarter Allowance for Credit Losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- July 1, 2017 | $ | 11,242 | $ | 10,265 | $ | 2,687 | $ | 872 | $ | 2,170 | $ | 7,236 | $ | 9,544 | $ | 205 | $ | 2,952 | $ | 1,891 | $ | 49,064 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-Offs | - | - | - | - | - | - | - | (54 | ) | - | - | (54 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 99 | - | - | 18 | 1 | - | 2 | 14 | - | - | 134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | (244 | ) | 1,131 | 63 | 107 | 90 | 124 | (486 | ) | 44 | 242 | 529 | 1,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance- September 30, 2017 | $ | 11,097 | $ | 11,396 | $ | 2,750 | $ | 997 | $ | 2,261 | $ | 7,360 | $ | 9,060 | $ | 209 | $ | 3,194 | $ | 2,420 | $ | 50,744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 471 | - | - | 69 | 17 | 331 | 268 | 6 | - | - | 1,162 | 385 | - | - | 61 | 17 | 69 | 231 | 5 | - | - | 768 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 11,194 | 9,393 | 2,946 | 811 | 2,108 | 6,180 | 8,211 | 192 | 3,866 | 2,337 | 47,238 | 10,712 | 11,396 | 2,750 | 936 | 2,244 | 7,291 | 8,829 | 204 | 3,194 | 2,420 | 49,976 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 676,527 | $ | 463,645 | $ | 164,791 | $ | 249,628 | $ | 31,817 | $ | 266,010 | $ | 209,184 | $ | 7,119 | $ | 77,311 | $ | - | $ | 2,146,032 | $ | 683,037 | $ | 470,738 | $ | 162,167 | $ | 257,920 | $ | 33,350 | $ | 259,127 | $ | 257,951 | $ | 7,312 | $ | 85,177 | $ | - | $ | 2,216,779 | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 4,924 | 975 | - | 2,069 | 451 | 698 | 1,633 | 9 | - | - | 10,759 | 4,855 | - | - | 1,887 | 369 | 368 | 1,752 | 7 | - | - | 9,238 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | $ | 671,603 | $ | 462,670 | $ | 164,791 | $ | 247,559 | $ | 31,366 | $ | 265,312 | $ | 207,551 | $ | 7,110 | $ | 77,311 | $ | - | $ | 2,135,273 | $ | 678,182 | $ | 470,738 | $ | 162,167 | $ | 256,033 | $ | 32,981 | $ | 258,759 | $ | 256,199 | $ | 7,305 | $ | 85,177 | $ | - | $ | 2,207,541 |
March 31, 2018 | Pass | Special Mention | Substandard | Total Loans & Leases | ||||||||||||||||||||||||||||
September 30, 2018 | Pass | Special Mention | Substandard | Total Loans & Leases | ||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 691,537 | $ | 6,812 | $ | - | $ | 698,349 | $ | 764,839 | $ | 2,571 | $ | - | $ | 767,410 | ||||||||||||||||
Agricultural Real Estate | 495,936 | 8,537 | 3,927 | 508,400 | 537,027 | 3,271 | 13,310 | 553,608 | ||||||||||||||||||||||||
Real Estate Construction | 86,779 | 9,536 | - | 96,315 | 92,521 | - | - | 92,521 | ||||||||||||||||||||||||
Residential 1st Mortgages | 263,101 | - | 1,036 | 264,137 | 262,946 | - | 603 | 263,549 | ||||||||||||||||||||||||
Home Equity Lines & Loans | 34,643 | - | 48 | 34,691 | 38,443 | - | 47 | 38,490 | ||||||||||||||||||||||||
Agricultural | 252,553 | 6,286 | 2,588 | 261,427 | 281,698 | 4,635 | 1,488 | 287,821 | ||||||||||||||||||||||||
Commercial | 268,745 | 5,460 | 477 | 274,682 | 303,507 | 171 | 655 | 304,333 | ||||||||||||||||||||||||
Consumer & Other | 6,565 | - | 120 | 6,685 | 7,552 | - | 171 | 7,723 | ||||||||||||||||||||||||
Leases | 88,320 | 2,077 | - | 90,397 | 101,147 | - | - | 101,147 | ||||||||||||||||||||||||
Total | $ | 2,188,179 | $ | 38,708 | $ | 8,196 | $ | 2,235,083 | $ | 2,389,680 | $ | 10,648 | $ | 16,274 | $ | 2,416,602 |
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 |
March 31, 2017 | Pass | Special Mention | Substandard | Total Loans & Leases | ||||||||||||||||||||||||||||
September 30, 2017 | Pass | Special Mention | Substandard | Total Loans &Leases | ||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 668,243 | $ | 6,768 | $ | 1,516 | $ | 676,527 | $ | 678,083 | $ | 4,458 | $ | 496 | $ | 683,037 | ||||||||||||||||
Agricultural Real Estate | 461,318 | 1,351 | 976 | 463,645 | 465,427 | 1,281 | 4,030 | 470,738 | ||||||||||||||||||||||||
Real Estate Construction | 156,426 | 8,365 | - | 164,791 | 152,989 | 9,178 | - | 162,167 | ||||||||||||||||||||||||
Residential 1st Mortgages | 249,238 | 45 | 345 | 249,628 | 256,906 | 43 | 971 | 257,920 | ||||||||||||||||||||||||
Home Equity Lines & Loans | 31,752 | - | 65 | 31,817 | 33,297 | - | 53 | 33,350 | ||||||||||||||||||||||||
Agricultural | 255,390 | 9,857 | 763 | 266,010 | 250,372 | 5,331 | 3,424 | 259,127 | ||||||||||||||||||||||||
Commercial | 204,792 | 3,638 | 754 | 209,184 | 253,144 | 4,184 | 623 | 257,951 | ||||||||||||||||||||||||
Consumer & Other | 6,965 | - | 154 | 7,119 | 7,142 | - | 170 | 7,312 | ||||||||||||||||||||||||
Leases | 74,817 | 2,494 | - | 77,311 | 82,889 | 2,288 | - | 85,177 | ||||||||||||||||||||||||
Total | $ | 2,108,941 | $ | 32,518 | $ | 4,573 | $ | 2,146,032 | $ | 2,180,249 | $ | 26,763 | $ | 9,767 | $ | 2,216,779 |
March 31, 2018 | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Still Accruing | Nonaccrual | Total Past Due | Current | Total Loans & Leases | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | 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 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 698,349 | $ | 698,349 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 767,410 | $ | 767,410 | ||||||||||||||||||||||||||||
Agricultural Real Estate | - | - | - | - | - | 508,400 | 508,400 | - | - | - | - | - | 553,608 | 553,608 | ||||||||||||||||||||||||||||||||||||||||||
Real Estate Construction | - | - | - | - | - | 96,315 | 96,315 | - | - | - | - | - | 92,521 | 92,521 | ||||||||||||||||||||||||||||||||||||||||||
Residential 1st Mortgages | 14 | 49 | - | 81 | 144 | 263,993 | 264,137 | 167 | - | - | - | 167 | 263,382 | 263,549 | ||||||||||||||||||||||||||||||||||||||||||
Home Equity Lines & Loans | 20 | - | - | - | 20 | 34,671 | 34,691 | - | - | - | - | - | 38,490 | 38,490 | ||||||||||||||||||||||||||||||||||||||||||
Agricultural | - | - | - | - | - | 261,427 | 261,427 | 150 | - | - | - | 150 | 287,671 | 287,821 | ||||||||||||||||||||||||||||||||||||||||||
Commercial | - | 14 | - | - | 14 | 274,668 | 274,682 | 21 | - | - | - | 21 | 304,312 | 304,333 | ||||||||||||||||||||||||||||||||||||||||||
Consumer & Other | 8 | - | - | - | 8 | 6,677 | 6,685 | 17 | - | - | 17 | 7,706 | 7,723 | |||||||||||||||||||||||||||||||||||||||||||
Leases | - | - | - | - | - | 90,397 | 90,397 | - | - | - | - | 101,147 | 101,147 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 42 | $ | 63 | $ | - | $ | 81 | $ | 186 | $ | 2,234,897 | $ | 2,235,083 | $ | 355 | $ | - | $ | - | $ | - | $ | 355 | $ | 2,416,247 | $ | 2,416,602 |
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 |
March 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 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 676,527 | $ | 676,527 | ||||||||||||||
Agricultural Real Estate | - | - | - | 976 | 976 | 462,669 | 463,645 | |||||||||||||||||||||
Real Estate Construction | - | - | - | - | - | 164,791 | 164,791 | |||||||||||||||||||||
Residential 1st Mortgages | 110 | - | - | 60 | 170 | 249,458 | 249,628 | |||||||||||||||||||||
Home Equity Lines & Loans | - | - | - | 64 | 64 | 31,753 | 31,817 | |||||||||||||||||||||
Agricultural | - | - | - | 315 | 315 | 265,695 | 266,010 | |||||||||||||||||||||
Commercial | - | - | - | - | - | 209,184 | 209,184 | |||||||||||||||||||||
Consumer & Other | 16 | - | - | 6 | 22 | 7,097 | 7,119 | |||||||||||||||||||||
Leases | - | - | - | - | - | 77,311 | 77,311 | |||||||||||||||||||||
Total | $ | 126 | $ | - | $ | - | $ | 1,421 | $ | 1,547 | $ | 2,144,485 | $ | 2,146,032 |
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 |
September 30, 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 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 683,037 | $ | 683,037 | ||||||||||||||
Agricultural Real Estate | - | - | - | - | - | 470,738 | 470,738 | |||||||||||||||||||||
Real Estate Construction | - | - | - | - | - | 162,167 | 162,167 | |||||||||||||||||||||
Residential 1st Mortgages | - | - | - | - | - | 257,920 | 257,920 | |||||||||||||||||||||
Home Equity Lines & Loans | - | - | - | - | - | 33,350 | 33,350 | |||||||||||||||||||||
Agricultural | - | - | - | - | - | 259,127 | 259,127 | |||||||||||||||||||||
Commercial | - | 3 | - | - | 3 | 257,948 | 257,951 | |||||||||||||||||||||
Consumer & Other | 16 | - | - | 4 | 20 | 7,292 | 7,312 | |||||||||||||||||||||
Leases | - | - | - | - | - | 85,177 | 85,177 | |||||||||||||||||||||
Total | $ | 16 | $ | 3 | $ | - | $ | 4 | $ | 23 | $ | 2,216,756 | $ | 2,216,779 |
March 31, 2018 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 102 | $ | 102 | $ | - | $ | 103 | $ | 2 | $ | 98 | $ | 98 | $ | - | $ | 99 | $ | 2 | $ | 101 | $ | 6 | ||||||||||||||||||||||||
Agricultural Real Estate | 7,239 | 7,238 | - | 3,620 | 6 | 804 | 6 | |||||||||||||||||||||||||||||||||||||||||
Residential 1st Mortgages | 903 | 1,005 | - | 907 | 8 | - | - | - | - | - | 553 | 8 | ||||||||||||||||||||||||||||||||||||
$ | 1,005 | $ | 1,107 | $ | - | $ | 1,010 | $ | 10 | $ | 7,337 | $ | 7,336 | $ | - | $ | 3,719 | $ | 8 | $ | 1,458 | $ | 20 | |||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 2,955 | $ | 2,943 | $ | 335 | $ | 2,964 | $ | 24 | $ | 2,920 | $ | 2,910 | $ | 314 | $ | 2,929 | $ | 24 | $ | 2,950 | $ | 72 | ||||||||||||||||||||||||
Residential 1st Mortgages | 583 | 649 | 29 | 546 | 7 | 1,562 | 1,739 | 77 | 1,630 | 12 | 989 | 32 | ||||||||||||||||||||||||||||||||||||
Home Equity Lines & Loans | 78 | 88 | 4 | 76 | 1 | 75 | 85 | 4 | 76 | 1 | 76 | 3 | ||||||||||||||||||||||||||||||||||||
Commercial | 1,720 | 1,713 | 205 | 1,731 | 15 | 1,675 | 1,670 | 192 | 1,986 | 14 | 1,879 | 44 | ||||||||||||||||||||||||||||||||||||
Consumer & Other | 8 | 8 | 8 | 8 | - | 7 | 7 | 7 | 7 | - | 8 | - | ||||||||||||||||||||||||||||||||||||
$ | 5,344 | $ | 5,401 | $ | 581 | $ | 5,325 | $ | 47 | $ | 6,239 | $ | 6,411 | $ | 594 | $ | 6,628 | $ | 51 | 5,902 | $ | 151 | ||||||||||||||||||||||||||
Total | $ | 6,349 | $ | 6,508 | $ | 581 | $ | 6,335 | $ | 57 | $ | 13,576 | $ | 13,747 | $ | 594 | $ | 10,347 | $ | 59 | $ | 7,360 | $ | 171 |
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 |
March 31, 2017 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 110 | $ | 110 | $ | - | $ | 147 | $ | 4 | $ | 106 | $ | 107 | $ | - | $ | 107 | $ | 2 | $ | 121 | $ | 9 | ||||||||||||||||||||||||
Agricultural Real Estate | 976 | 983 | - | 1,141 | - | - | - | - | 488 | - | 868 | - | ||||||||||||||||||||||||||||||||||||
Residential 1st Mortgages | 413 | 467 | - | 432 | - | 399 | 456 | - | 403 | 3 | 415 | 6 | ||||||||||||||||||||||||||||||||||||
Home Equity Lines & Loans | 64 | 65 | - | 32 | - | - | - | - | - | - | 21 | - | ||||||||||||||||||||||||||||||||||||
Agricultural | 60 | 66 | - | 30 | - | - | - | - | 30 | - | 40 | - | ||||||||||||||||||||||||||||||||||||
Commercial | - | - | - | 1,512 | - | - | - | - | - | - | 504 | - | ||||||||||||||||||||||||||||||||||||
$ | 1,623 | $ | 1,691 | $ | - | $ | 3,294 | $ | 4 | $ | 505 | $ | 563 | $ | - | $ | 1,028 | $ | 5 | $ | 1,969 | $ | 15 | |||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 3,024 | $ | 3,010 | $ | 471 | $ | 1,512 | $ | 30 | $ | 2,991 | $ | 2,977 | $ | 384 | $ | 3,000 | $ | 25 | 2,509 | $ | 80 | |||||||||||||||||||||||||
Residential 1st Mortgages | 426 | 466 | 20 | 428 | 5 | 519 | 574 | 26 | 472 | 3 | 442 | 12 | ||||||||||||||||||||||||||||||||||||
Home Equity Lines & Loans | 89 | 95 | 4 | 90 | 1 | 83 | 90 | 4 | 67 | - | 76 | 2 | ||||||||||||||||||||||||||||||||||||
Agricultural | 638 | 639 | 331 | 632 | 8 | 367 | 367 | 69 | 499 | 7 | 588 | 21 | ||||||||||||||||||||||||||||||||||||
Commercial | 1,641 | 1,633 | 268 | 1,541 | 16 | 1,760 | 1,752 | 234 | 1,696 | 14 | 1,624 | 44 | ||||||||||||||||||||||||||||||||||||
Consumer & Other | 6 | 12 | 6 | 6 | - | 4 | 11 | 4 | 14 | - | 12 | - | ||||||||||||||||||||||||||||||||||||
$ | 5,824 | $ | 5,855 | $ | 1,100 | $ | 4,209 | $ | 60 | $ | 5,724 | $ | 5,771 | $ | 721 | $ | 5,748 | $ | 49 | 5,251 | $ | 159 | ||||||||||||||||||||||||||
Total | $ | 7,447 | $ | 7,546 | $ | 1,100 | $ | 7,503 | $ | 64 | $ | 6,229 | $ | 6,334 | $ | 721 | $ | 6,776 | $ | 54 | $ | 7,220 | $ | 174 |
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Troubled Debt Restructurings | Number of Loans | Pre- Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||
Agricultural Real Estate | 1 | $ | 7,239 | $ | 7,239 | 1 | $ | 7,239 | $ | 7,239 | ||||||||||||||
Residential 1st Mortgages | - | - | - | 1 | 175 | 163 | ||||||||||||||||||
Total | 1 | $ | 7,239 | $ | 7,239 | 2 | $ | 7,414 | $ | 7,402 |
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, 2017 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||||
Residential 1st Mortgages | 2 | $ | 673 | $ | 630 | 1 | $ | 112 | $ | 112 | 1 | $ | 112 | $ | 112 | |||||||||||||||||||||
Home Equity Lines and Loans | 1 | 32 | 32 | |||||||||||||||||||||||||||||||||
Home Equity Lines & Loans | 1 | 32 | 32 | 1 | 32 | 32 | ||||||||||||||||||||||||||||||
Commercial | 2 | 138 | 138 | 2 | 138 | 138 | 2 | 138 | 138 | |||||||||||||||||||||||||||
Consumer & Other | 1 | 9 | 8 | |||||||||||||||||||||||||||||||||
Total | 6 | $ | 852 | $ | 808 | 4 | $ | 282 | $ | 282 | 4 | $ | 282 | $ | 282 |
4. | Fair Value Measurements |
Fair Value Measurements At March 31, 2018, Using | Fair Value Measurements At September 30, 2018, 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) | Fair Value Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,095 | $ | - | $ | 3,095 | $ | - | $ | 3,052 | $ | - | $ | 3,052 | $ | - | ||||||||||||||||
US Treasury Notes | 143,409 | 143,409 | - | - | 164,208 | 164,208 | - | - | ||||||||||||||||||||||||
US Govt SBA | 27,537 | - | 27,537 | - | 16,973 | - | 16,973 | - | ||||||||||||||||||||||||
Mortgage Backed Securities | 318,763 | - | 318,763 | - | 271,067 | - | 271,067 | - | ||||||||||||||||||||||||
Other | 3,010 | 200 | 310 | 2,500 | 3,011 | 201 | 310 | 2,500 | ||||||||||||||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis | $ | 495,814 | $ | 143,609 | $ | 349,705 | $ | 2,500 | $ | 458,311 | $ | 164,409 | $ | 291,402 | $ | 2,500 |
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) | ||||||||||||
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 |
Fair Value Measurements At March 31, 2017, Using | Fair Value Measurements At September 30, 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) | Fair Value Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Available-for-Sale Securities: | ||||||||||||||||||||||||||||||||
Government Agency & Government-Sponsored Entities | $ | 3,217 | $ | - | $ | 3,217 | $ | - | $ | 3,169 | $ | - | $ | 3,169 | $ | - | ||||||||||||||||
US Treasury Notes | 104,419 | 104,419 | - | - | 144,410 | 144,410 | - | - | ||||||||||||||||||||||||
US Govt SBA | 34,734 | - | 34,734 | - | 31,691 | - | 31,691 | - | ||||||||||||||||||||||||
Mortgage Backed Securities | 309,462 | - | 309,462 | - | 276,043 | - | 276,043 | - | ||||||||||||||||||||||||
Other | 1,010 | 200 | 310 | 500 | 1,010 | 200 | 310 | 500 | ||||||||||||||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis | $ | 452,842 | $ | 104,619 | $ | 347,723 | $ | 500 | $ | 456,323 | $ | 144,610 | $ | 311,213 | $ | 500 |
Fair Value Measurements At March 31, 2018, Using | Fair Value Measurements At September 30, 2018, 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) | 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 | $ | 2,608 | $ | - | $ | - | $ | 2,608 | $ | 2,596 | $ | - | $ | - | $ | 2,596 | ||||||||||||||||
Residential 1st Mortgage | 475 | - | - | 475 | 1,476 | - | - | 1,476 | ||||||||||||||||||||||||
Home Equity Lines and Loans | 74 | - | - | 74 | 71 | - | - | 71 | ||||||||||||||||||||||||
Commercial | 1,508 | - | - | 1,508 | 1,478 | - | - | 1,478 | ||||||||||||||||||||||||
Total Impaired Loans | 4,665 | - | - | 4,665 | 5,621 | - | - | 5,621 | ||||||||||||||||||||||||
Other Real Estate | ||||||||||||||||||||||||||||||||
Real Estate Construction | 873 | - | - | 873 | 873 | - | - | 873 | ||||||||||||||||||||||||
Total Other Real Estate | 873 | - | - | 873 | 873 | - | - | 873 | ||||||||||||||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis | $ | 5,538 | $ | - | $ | - | $ | 5,538 | $ | 6,494 | $ | - | $ | - | $ | 6,494 |
Fair Value Measurements At December 31, 2017, Using | ||||||||||||||||||||||||||||||||
Fair Value Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | 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 | $ | 2,595 | $ | - | $ | - | $ | 2,595 | ||||||||||||||||
Residential 1st Mortgage | 997 | - | - | 997 | 997 | - | - | 997 | ||||||||||||||||||||||||
Home Equity Lines and Loans | 75 | - | - | 75 | 75 | - | - | 75 | ||||||||||||||||||||||||
Commercial | 1,514 | - | - | 1,514 | 1,514 | - | - | 1,514 | ||||||||||||||||||||||||
Total Impaired Loans | 5,181 | - | - | 5,181 | 5,181 | - | - | 5,181 | ||||||||||||||||||||||||
Other Real Estate: | ||||||||||||||||||||||||||||||||
Real Estate Construction | 873 | - | - | 873 | 873 | - | - | 873 | ||||||||||||||||||||||||
Total Other Real Estate | 873 | - | - | 873 | 873 | - | - | 873 | ||||||||||||||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis | $ | 6,054 | $ | - | $ | - | $ | 6,054 | $ | 6,054 | $ | - | $ | - | $ | 6,054 |
Fair Value Measurements At March 31, 2017, Using | Fair Value Measurements At September 30, 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) | 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 | $ | 2,539 | $ | - | $ | - | $ | 2,539 | $ | 2,594 | $ | - | $ | - | $ | 2,594 | ||||||||||||||||
Residential 1st Mortgage | 389 | - | - | 389 | 491 | - | - | 491 | ||||||||||||||||||||||||
Home Equity Lines and Loans | 82 | - | - | 82 | 78 | - | - | 78 | ||||||||||||||||||||||||
Agricultural | 367 | - | - | 367 | 298 | - | - | 298 | ||||||||||||||||||||||||
Commercial | 1,365 | - | - | 1,365 | 1,519 | - | - | 1,519 | ||||||||||||||||||||||||
Total Impaired Loans | 4,742 | - | - | 4,742 | 4,980 | - | - | 4,980 | ||||||||||||||||||||||||
Other Real Estate | ||||||||||||||||||||||||||||||||
Home Equity Lines and Loans | 685 | - | - | 685 | ||||||||||||||||||||||||||||
Real Estate Construction | 1,467 | - | - | 1,467 | 873 | - | - | 873 | ||||||||||||||||||||||||
Total Other Real Estate | 2,152 | - | - | 2,152 | 873 | - | - | 873 | ||||||||||||||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis | $ | 6,894 | $ | - | $ | - | $ | 6,894 | $ | 5,853 | $ | - | $ | - | $ | 5,853 |
(in thousands) | Fair Value | Valuation Technique | Unobservable Inputs | Range, Weighted Avg. | Fair Value | Valuation Technique | Unobservable Inputs | Range, Weighted Avg. | |||||||||||||
Impaired Loans | |||||||||||||||||||||
Commercial Real Estate | $ | 2,608 | Income Approach | Capitalization Rate | 3.25%, 3.25% | $ | 2,596 | Income Approach | Capitalization Rate | 3.25%, 3.25 | % | ||||||||||
Residential 1st Mortgage | $ | 475 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1% -4%, 3% | $ | 1,476 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1% -4%, 3 | % | ||||||||||
Home Equity Lines and Loans | $ | 74 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1% - 2%, 1% | $ | 71 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1% - 2%, 1 | % | ||||||||||
Commercial | $ | 1,508 | Income Approach | Capitalization Rate | 2.95% - 8.70%, 3.40% | $ | 1,478 | 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% | $ | 873 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 10%, 10 | % |
5. | Fair Value of Financial Instruments |
Fair Value of Financial Instruments Using | Fair Value of Financial Instruments Using | |||||||||||||||||||||||||||||||||||||||
March 31, 2018 (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 | |||||||||||||||||||||||||||||||||||
September 30, 2018 (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 | $ | 134,984 | $ | 134,984 | $ | - | $ | - | $ | 134,984 | $ | 110,781 | $ | 110,781 | $ | - | $ | - | $ | 110,781 | ||||||||||||||||||||
Investment Securities Available-for-Sale | 495,814 | 143,609 | 349,705 | 2,500 | 495,814 | 458,311 | 164,409 | 291,402 | 2,500 | 458,311 | ||||||||||||||||||||||||||||||
Investment Securities Held-to-Maturity | 53,527 | - | 37,028 | 16,717 | 53,745 | 51,459 | - | 35,716 | 15,663 | 51,379 | ||||||||||||||||||||||||||||||
FHLB Stock | 10,342 | N/A | N/A | N/A | N/A | 10,877 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Loans & Leases, Net of Deferred Fees & Allowance | 2,184,406 | - | - | 2,152,504 | 2,152,504 | 2,363,535 | - | - | 2,317,185 | 2,317,185 | ||||||||||||||||||||||||||||||
Accrued Interest Receivable | 9,237 | - | 9,237 | - | 9,237 | 14,612 | - | 14,612 | - | 14,612 | ||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Deposits | 2,701,405 | 2,218,642 | 478,846 | - | 2,697,488 | 2,776,923 | 2,314,600 | 457,526 | - | 2,772,126 | ||||||||||||||||||||||||||||||
Subordinated Debentures | 10,310 | - | 7,751 | - | 7,751 | 10,310 | - | 7,579 | - | 7,579 | ||||||||||||||||||||||||||||||
Accrued Interest Payable | 909 | - | 909 | - | 909 | 1,227 | - | 1,227 | - | 1,227 |
Fair Value of Financial Instruments Using | 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 | 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 | $ | 187,149 | $ | 187,149 | $ | - | $ | - | $ | 187,149 | ||||||||||||||||||||
Investment Securities Available-for-Sale | 481,596 | 29,580 | 449,516 | 2,500 | 481,596 | 481,596 | 144,364 | 334,732 | 2,500 | 481,596 | ||||||||||||||||||||||||||||||
Investment Securities Held-to-Maturity | 54,460 | - | 38,492 | 16,744 | 55,236 | 54,460 | - | 38,492 | 16,744 | 55,236 | ||||||||||||||||||||||||||||||
FHLB Stock | 10,342 | N/A | N/A | N/A | N/A | 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 | 2,164,953 | - | - | 2,137,987 | 2,137,987 | ||||||||||||||||||||||||||||||
Accrued Interest Receivable | 10,999 | - | 10,999 | - | 10,999 | 10,999 | - | 10,999 | - | 10,999 | ||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Deposits | 2,723,228 | 2,247,831 | 472,671 | - | 2,720,502 | 2,723,228 | 2,247,831 | 472,671 | - | 2,720,502 | ||||||||||||||||||||||||||||||
Subordinated Debentures | 10,310 | - | 7,428 | - | 7,428 | 10,310 | - | 7,428 | - | 7,428 | ||||||||||||||||||||||||||||||
Accrued Interest Payable | 1,137 | - | 1,137 | - | 1,137 | 1,137 | - | 1,137 | - | 1,137 |
Fair Value of Financial Instruments Using | Fair Value of Financial Instruments Using | |||||||||||||||||||||||||||||||||||||||
March 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 | |||||||||||||||||||||||||||||||||||
September 30, 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 | $ | 164,512 | $ | 164,512 | $ | - | $ | - | $ | 164,512 | $ | 193,270 | $ | 193,270 | $ | - | $ | - | $ | 193,270 | ||||||||||||||||||||
Investment Securities Available-for-Sale | 452,842 | 104,619 | 347,723 | 500 | 452,842 | |||||||||||||||||||||||||||||||||||
Total Investment Securities Available-for-Sale | 456,323 | 144,610 | 311,213 | 500 | 456,323 | |||||||||||||||||||||||||||||||||||
Investment Securities Held-to-Maturity | 57,281 | - | 39,991 | 17,682 | 57,673 | |||||||||||||||||||||||||||||||||||
Total Investment Securities Held-to-Maturity | 55,542 | - | 39,254 | 17,037 | 56,291 | |||||||||||||||||||||||||||||||||||
FHLB Stock | 8,872 | N/A | N/A | N/A | N/A | 10,342 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Loans & Leases, Net of Deferred Fees & Allowance | 2,097,632 | - | - | 2,076,248 | 2,076,248 | |||||||||||||||||||||||||||||||||||
Total Loans & Leases, Net of Deferred Fees & Allowance | 2,166,035 | - | - | 2,148,524 | 2,148,524 | |||||||||||||||||||||||||||||||||||
Accrued Interest Receivable | 7,962 | - | 7,962 | - | 7,962 | 11,498 | - | 11,498 | - | 11,498 | ||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Deposits | 2,607,613 | 2,017,969 | 587,811 | - | 2,605,780 | |||||||||||||||||||||||||||||||||||
Total Deposits | 2,709,427 | 2,159,654 | 547,796 | - | 2,707,450 | |||||||||||||||||||||||||||||||||||
Subordinated Debentures | 10,310 | - | 6,581 | - | 6,581 | 10,310 | - | 6,589 | - | 6,589 | ||||||||||||||||||||||||||||||
Accrued Interest Payable | 882 | - | 882 | - | 882 | 939 | - | 939 | - | 939 |
6. | Dividends and Basic Earnings Per Common Share |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(net income in thousands) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Net Income | $ | 9,941 | $ | 7821 | $ | 12,000 | $ | 8,581 | $ | 32,491 | $ | 24,589 | ||||||||||||
Weighted Average Number of Common Shares Outstanding | 812 ,304 | 807,986 | 793,418 | 810,291 | 807,129 | 809,002 | ||||||||||||||||||
Basic Earnings Per Common Share Amount | $ | 12.24 | $ | 9.68 | $ | 15.12 | $ | 10.59 | $ | 40.26 | $ | 30.39 |
7. | Shareholders’ Equity |
8. | Investment In Bank of Rio Vista |
9. | Recent Accounting Pronouncements |
Subsequent Events |
· | Net income increased |
· | Earnings per share increased |
· | Total assets increased 3.6% to |
· | Total loans & leases increased |
· | Total deposits increased |
· | A |
· | A |
· | A |
· | A |
· | A $900,000 decrease in the gain on sale of fixed assets |
· | A |
· | A $483,000 increase in the provision for credit losses. |
Three Months Ended Sept 30, 2018 | Three Months Ended Sept 30, 2017 | |||||||||||||||||||||||
Assets | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Interest Bearing Deposits with Banks | $ | 127,570 | $ | 638 | 1.98 | % | $ | 189,647 | $ | 648 | 1.36 | % | ||||||||||||
Investment Securities: | ||||||||||||||||||||||||
U.S. Treasuries | 49,530 | 181 | 1.46 | % | 80,985 | 224 | 1.11 | % | ||||||||||||||||
U.S. Govt SBA | 18,136 | 97 | 2.14 | % | 32,458 | 162 | 2.00 | % | ||||||||||||||||
Government Agency & Government-Sponsored Entities | 3,052 | 22 | 2.88 | % | 3,098 | 22 | 2.84 | % | ||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable | 51,667 | 497 | 3.85 | % | 56,036 | 663 | 4.73 | % | ||||||||||||||||
Mortgage Backed Securities | 287,599 | 1,754 | 2.44 | % | 282,477 | 1,623 | 2.30 | % | ||||||||||||||||
Other | 3,011 | 21 | 2.79 | % | 1,010 | 6 | 2.38 | % | ||||||||||||||||
Total Investment Securities | 412,995 | 2,572 | 2.49 | % | 456,064 | 2,700 | 2.37 | % | ||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||
Real Estate | 1,666,801 | 21,416 | 5.10 | % | 1,565,218 | 18,889 | 4.79 | % | ||||||||||||||||
Home Equity Lines & Loans | 38,193 | 533 | 5.54 | % | 32,705 | 430 | 5.22 | % | ||||||||||||||||
Agricultural | 283,078 | 3,760 | 5.27 | % | 260,398 | 3,083 | 4.70 | % | ||||||||||||||||
Commercial | 290,588 | 3,867 | 5.28 | % | 258,574 | 3,041 | 4.67 | % | ||||||||||||||||
Consumer | 6,298 | 98 | 6.17 | % | 5,872 | 73 | 4.93 | % | ||||||||||||||||
Other | 1,382 | 8 | 2.30 | % | 1,678 | 9 | 2.13 | % | ||||||||||||||||
Leases | 98,316 | 1,277 | 5.15 | % | 80,629 | 966 | 4.75 | % | ||||||||||||||||
Total Loans & Leases | 2,384,656 | 30,959 | 5.15 | % | 2,205,074 | 26,491 | 4.77 | % | ||||||||||||||||
Total Earning Assets | 2,925,221 | $ | 34,169 | 4.63 | % | 2,850,785 | $ | 29,839 | 4.15 | % | ||||||||||||||
Unrealized (Loss) Gain on Securities Available-for-Sale | (7,668 | ) | 1,334 | |||||||||||||||||||||
Allowance for Credit Losses | (51,831 | ) | (49,889 | ) | ||||||||||||||||||||
Cash and Due From Banks | 47,381 | 45,084 | ||||||||||||||||||||||
All Other Assets | 191,562 | 198,054 | ||||||||||||||||||||||
Total Assets | $ | 3,104,665 | $ | 3,045,368 | ||||||||||||||||||||
Liabilities & Shareholders' Equity | ||||||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||||||
Interest Bearing DDA | $ | 619,697 | $ | 509 | 0.33 | % | $ | 553,394 | $ | 321 | 0.23 | % | ||||||||||||
Savings and Money Market | 830,680 | 467 | 0.22 | % | 812,749 | 340 | 0.17 | % | ||||||||||||||||
Time Deposits | 467,443 | 1,044 | 0.89 | % | 579,527 | 982 | 0.67 | % | ||||||||||||||||
Total Interest Bearing Deposits | 1,917,820 | 2,020 | 0.42 | % | 1,945,670 | 1,643 | 0.34 | % | ||||||||||||||||
Federal Home Loan Bank Advances | 46 | - | 0.00 | % | 0 | 0 | 0.00 | % | ||||||||||||||||
Subordinated Debentures | 10,310 | 137 | 5.27 | % | 10,310 | 115 | 4.43 | % | ||||||||||||||||
Total Interest Bearing Liabilities | 1,928,176 | $ | 2,157 | 0.44 | % | 1,955,980 | $ | 1,758 | 0.36 | % | ||||||||||||||
Interest Rate Spread | 4.19 | % | 3.80 | % | ||||||||||||||||||||
Demand Deposits (Non-Interest Bearing) | 832,752 | 741,839 | ||||||||||||||||||||||
All Other Liabilities | 43,239 | 50,210 | ||||||||||||||||||||||
Total Liabilities | 2,804,167 | 2,748,029 | ||||||||||||||||||||||
Shareholders' Equity | 300,498 | 297,339 | ||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 3,104,665 | $ | 3,045,368 | ||||||||||||||||||||
Impact of Non-Interest Bearing Deposits and Other Liabilities | 0.15 | % | 0.11 | % | ||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets | 32,012 | 4.34 | % | 28,081 | 3.91 | % | ||||||||||||||||||
Tax Equivalent Adjustment | (104 | ) | (231 | ) | ||||||||||||||||||||
Net Interest Income | $ | 31,908 | 4.33 | % | $ | 27,850 | 3.88 | % |
Nine Months Ended Sept. 30, 2018 | Nine Months Ended Sept. 30, 2017 | |||||||||||||||||||||||
Assets | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Interest Bearing Deposits with Banks | $ | 131,509 | $ | 1,737 | 1.77 | % | $ | 142,717 | $ | 1,155 | 1.08 | % | ||||||||||||
Investment Securities: | ||||||||||||||||||||||||
U.S. Treasuries | 69,374 | 728 | 1.40 | % | 82,441 | 665 | 1.08 | % | ||||||||||||||||
U.S. Govt SBA | 24,559 | 339 | 1.84 | % | 34,125 | 412 | 1.61 | % | ||||||||||||||||
Government Agency & Government-Sponsored Entities | 3,063 | 66 | 2.87 | % | 3,109 | 66 | 2.83 | % | ||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable | 53,120 | 1,536 | 3.86 | % | 56,945 | 2,026 | 4.74 | % | ||||||||||||||||
Mortgage Backed Securities | 308,835 | 5,578 | 2.41 | % | 291,179 | 5,013 | 2.30 | % | ||||||||||||||||
Other | 3,010 | 60 | 2.66 | % | 1,010 | 17 | 2.24 | % | ||||||||||||||||
Total Investment Securities | 461,961 | 8,307 | 2.40 | % | 468,809 | 8,199 | 2.33 | % | ||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||
Real Estate | 1,607,127 | 60,612 | 5.04 | % | 1,561,675 | 55,021 | 4.71 | % | ||||||||||||||||
Home Equity Lines & Loans | 36,221 | 1,464 | 5.40 | % | 32,109 | 1,217 | 5.07 | % | ||||||||||||||||
Agricultural | 265,812 | 10,127 | 5.09 | % | 266,205 | 9,015 | 4.53 | % | ||||||||||||||||
Commercial | 281,664 | 10,933 | 5.19 | % | 233,853 | 8,064 | 4.61 | % | ||||||||||||||||
Consumer | 5,795 | 240 | 5.54 | % | 5,592 | 221 | 5.28 | % | ||||||||||||||||
Other | 1,382 | 23 | 2.23 | % | 1,679 | 28 | 2.23 | % | ||||||||||||||||
Leases | 93,484 | 3,531 | 5.05 | % | 77,508 | 2,704 | 4.66 | % | ||||||||||||||||
Total Loans & Leases | 2,291,485 | 86,930 | 5.07 | % | 2,178,621 | 76,270 | 4.68 | % | ||||||||||||||||
Total Earning Assets | 2,884,955 | $ | 96,974 | 4.49 | % | 2,790,147 | $ | 85,624 | 4.10 | % | ||||||||||||||
Unrealized Gain on Securities Available-for-Sale | (7,064 | ) | 746 | |||||||||||||||||||||
Allowance for Credit Losses | (51,113 | ) | (48,887 | ) | ||||||||||||||||||||
Cash and Due From Banks | 46,448 | 44,896 | ||||||||||||||||||||||
All Other Assets | 190,733 | 190,732 | ||||||||||||||||||||||
Total Assets | $ | 3,063,959 | $ | 2,977,634 | ||||||||||||||||||||
Liabilities & Shareholders' Equity | ||||||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||||||
Interest Bearing DDA | $ | 596,872 | $ | 1,086 | 0.24 | % | $ | 516,867 | $ | 723 | 0.19 | % | ||||||||||||
Savings and Money Market | 823,595 | 1,130 | 0.18 | % | 802,778 | 954 | 0.16 | % | ||||||||||||||||
Time Deposits | 472,460 | 2,738 | 0.77 | % | 584,773 | 2,675 | 0.61 | % | ||||||||||||||||
Total Interest Bearing Deposits | 1,892,927 | 4,954 | 0.35 | % | 1,904,418 | 4,352 | 0.31 | % | ||||||||||||||||
Federal Home Loan Bank Advances | 16 | - | 0.00 | % | 1 | - | 0.00 | % | ||||||||||||||||
Subordinated Debentures | 10,310 | 385 | 4.99 | % | 10,310 | 320 | 4.15 | % | ||||||||||||||||
Total Interest Bearing Liabilities | 1,903,253 | $ | 5,339 | 0.38 | % | 1,914,729 | $ | 4,672 | 0.33 | % | ||||||||||||||
Interest Rate Spread | 4.12 | % | 3.78 | % | ||||||||||||||||||||
Demand Deposits (Non-Interest Bearing) | 813,129 | 721,808 | ||||||||||||||||||||||
All Other Liabilities | 43,352 | 50,394 | ||||||||||||||||||||||
Total Liabilities | 2,759,734 | 2,686,931 | ||||||||||||||||||||||
Shareholders' Equity | 304,225 | 290,703 | ||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 3,063,959 | $ | 2,977,634 | ||||||||||||||||||||
Impact of Non-Interest Bearing Deposits and Other Liabilities | 0.13 | % | 0.10 | % | ||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets | 91,635 | 4.25 | % | 80,952 | 3.88 | % | ||||||||||||||||||
Tax Equivalent Adjustment | (320 | ) | (705 | ) | ||||||||||||||||||||
Net Interest Income | $ | 91,315 | 4.23 | % | $ | 80,247 | 3.85 | % |
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | |||||||||||||||||||||||
Assets | Balance | Interest | Annualized Yield/Rate | Balance | Interest | Annualized Yield/Rate | ||||||||||||||||||
Interest Bearing Deposits With Banks | $ | 152,936 | $ | 585 | 1.54 | % | $ | 125,340 | $ | 249 | 0.80 | % | ||||||||||||
Investment Securities | ||||||||||||||||||||||||
U.S. Treasuries | 92,107 | 297 | 1.29 | % | 83,412 | 217 | 1.04 | % | ||||||||||||||||
U.S. Govt SBA | 28,750 | 123 | 1.71 | % | 35,869 | 125 | 1.39 | % | ||||||||||||||||
Government Agency & Government-Sponsored Entities | 3,074 | 22 | 2.86 | % | 3,122 | 22 | 2.82 | % | ||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable | 54,689 | 529 | 3.87 | % | 57,835 | 690 | 4.77 | % | ||||||||||||||||
Mortgage Backed Securities | 322,296 | 1,920 | 2.38 | % | 288,545 | 1,643 | 2.28 | % | ||||||||||||||||
Other | 3,010 | 18 | 2.39 | % | 1,010 | 5 | 1.98 | % | ||||||||||||||||
Total Investment Securities | 503,926 | 2,909 | 2.31 | % | 469,793 | 2,702 | 2.30 | % | ||||||||||||||||
Loans & Leases | ||||||||||||||||||||||||
Real Estate | 1,548,359 | 19,044 | 4.95 | % | 1,562,054 | 17,931 | 4.62 | % | ||||||||||||||||
Home Equity Line & Loans | 34,735 | 448 | 5.19 | % | 31,694 | 382 | 4.85 | % | ||||||||||||||||
Agricultural | 251,784 | 3,028 | 4.84 | % | 267,705 | 2,891 | 4.34 | % | ||||||||||||||||
Commercial | 268,032 | 3,311 | 4.97 | % | 214,517 | 2,460 | 4.61 | % | ||||||||||||||||
Consumer | 5,293 | 76 | 5.77 | % | 5,326 | 68 | 5.14 | % | ||||||||||||||||
Other | 1,382 | 8 | 2.33 | % | 1,678 | 9 | 2.16 | % | ||||||||||||||||
Leases | 91,222 | 1,129 | 4.98 | % | 71,908 | 790 | 4.42 | % | ||||||||||||||||
Total Loans & Leases | 2,200,807 | 27,044 | 4.94 | % | 2,154,882 | 24,531 | 4.58 | % | ||||||||||||||||
Total Earning Assets | 2,857,669 | $ | 30,538 | 4.30 | % | 2,750,015 | $ | 27,482 | 4.02 | % | ||||||||||||||
Unrealized (Loss) Gain on Securities Available-for-Sale | (4,832 | ) | (359 | ) | ||||||||||||||||||||
Allowance for Credit Losses | (50,612 | ) | (48,061 | ) | ||||||||||||||||||||
Cash and Due From Banks | 46,527 | 46,491 | ||||||||||||||||||||||
All Other Assets | 187,290 | 184,203 | ||||||||||||||||||||||
Total Assets | $ | 3,036,042 | $ | 2,932,289 | ||||||||||||||||||||
Liabilities & Shareholders' Equity | ||||||||||||||||||||||||
Interest Bearing Deposits | ||||||||||||||||||||||||
Interest Bearing DDA | $ | 585,176 | $ | 272 | 0.19 | % | $ | 495,564 | $ | 181 | 0.15 | % | ||||||||||||
Savings and Money Market | 825,514 | 330 | 0.16 | % | 802,634 | 308 | 0.15 | % | ||||||||||||||||
Time Deposits | 478,740 | 803 | 0.67 | % | 579,931 | 787 | 0.55 | % | ||||||||||||||||
Total Interest Bearing Deposits | 1,889,430 | 1,405 | 0.30 | % | 1,878,129 | 1,276 | 0.27 | % | ||||||||||||||||
Federal Home Loan Bank Advances | 4 | - | 0.00 | % | 4 | - | 0.00 | % | ||||||||||||||||
Subordinated Debentures | 10,310 | 117 | 4.56 | % | 10,310 | 100 | 3.90 | % | ||||||||||||||||
Total Interest Bearing Liabilities | 1,899,744 | $ | 1,522 | 0.32 | % | 1,888,443 | $ | 1,376 | 0.29 | % | ||||||||||||||
Interest Rate Spread | 3.98 | % | 3.73 | % | ||||||||||||||||||||
Demand Deposits (Non-Interest Bearing) | 795,261 | 712,732 | ||||||||||||||||||||||
All Other Liabilities | 38,464 | 46,613 | ||||||||||||||||||||||
Total Liabilities | 2,733,469 | 2,647,788 | ||||||||||||||||||||||
Shareholders' Equity | 302,573 | 284,501 | ||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 3,036,042 | $ | 2,932,289 | ||||||||||||||||||||
Impact of Non-Interest Bearing Deposits and Other Liabilities | 0.14 | % | 0.09 | % | ||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets | 29,016 | 4.12 | % | 26,106 | 3.82 | % | ||||||||||||||||||
Tax Equivalent Adjustment | (110 | ) | (240 | ) | ||||||||||||||||||||
Net Interest Income | $ | 28,906 | 4.07 | % | $ | 25,866 | 3.78 | % |
Three Months Ended Mar. 31, 2018 compared to Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||
(in thousands) | Three Months Ended Sept. 30, 2018 compared to Sept. 30, 2017 | Nine Months Ended Sept. 30, 2018 compared to Sept. 30, 2017 | ||||||||||||||||||||||||||||||||||
Interest Earning Assets | Volume | Rate | Net Chg. | Volume | Rate | Net Chg. | Volume | Rate | Net Chg. | |||||||||||||||||||||||||||
Interest Bearing Deposits With Banks | $ | 64 | 272 | $ | 336 | |||||||||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits with Banks | $ | (250 | ) | $ | 239 | $ | (11 | ) | (97 | ) | 679 | $ | 582 | |||||||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||||||||||
U.S. Treasuries | 24 | 56 | 80 | (102 | ) | 59 | (43 | ) | (116 | ) | 179 | 63 | ||||||||||||||||||||||||
U.S. Govt SBA | (28 | ) | 25 | (3 | ) | (76 | ) | 11 | (65 | ) | (126 | ) | 53 | (73 | ) | |||||||||||||||||||||
Government Agency & Government-Sponsored Entities | - | - | - | - | - | - | (1 | ) | 1 | - | ||||||||||||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable | (36 | ) | (125 | ) | (161 | ) | (49 | ) | (116 | ) | (165 | ) | (130 | ) | (359 | ) | (489 | ) | ||||||||||||||||||
Mortgage Backed Securities | 198 | 79 | 277 | 29 | 102 | 131 | 312 | 253 | 565 | |||||||||||||||||||||||||||
Other | 12 | 1 | 13 | 14 | 2 | 16 | 39 | 4 | 43 | |||||||||||||||||||||||||||
Total Investment Securities | 170 | 36 | 206 | (184 | ) | 58 | (126 | ) | (22 | ) | 131 | 109 | ||||||||||||||||||||||||
Loans & Leases | ||||||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||
Real Estate | (159 | ) | 1,202 | 1,043 | 1,265 | 1,262 | 2,527 | 1,635 | 3,956 | 5,591 | ||||||||||||||||||||||||||
Home Equity Line & Loans | 38 | 28 | 66 | |||||||||||||||||||||||||||||||||
Home Equity Lines & Loans | 76 | 27 | 103 | 163 | 85 | 247 | ||||||||||||||||||||||||||||||
Agricultural | (180 | ) | 347 | 167 | 282 | 395 | 677 | (13 | ) | 1,125 | 1,112 | |||||||||||||||||||||||||
Commercial | 650 | 203 | 853 | 400 | 426 | 826 | 1,777 | 1,092 | 2,869 | |||||||||||||||||||||||||||
Consumer | - | 46 | 46 | 5 | 20 | 25 | 8 | 11 | 19 | |||||||||||||||||||||||||||
Other | (2 | ) | 1 | (1 | ) | (2 | ) | 1 | (1 | ) | (5 | ) | - | (5 | ) | |||||||||||||||||||||
Leases | 230 | 109 | 339 | 225 | 85 | 310 | 591 | 235 | 826 | |||||||||||||||||||||||||||
Total Loans & Leases | 577 | 1,936 | 2,513 | 2,251 | 2,216 | 4,467 | 4,156 | 6,504 | 10,659 | |||||||||||||||||||||||||||
Total Earning Assets | 811 | 2,244 | 3,055 | 1,817 | 2,513 | 4,330 | 4,037 | 7,314 | 11,350 | |||||||||||||||||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||||||||||||||||||||
Interest Bearing Deposits | ||||||||||||||||||||||||||||||||||||
Transaction | 36 | 55 | 91 | |||||||||||||||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||||||||||||||||||
Interest Bearing DDA | 42 | 146 | 188 | 123 | 240 | 363 | ||||||||||||||||||||||||||||||
Savings and Money Market | 9 | 13 | 22 | 8 | 119 | 127 | 25 | 151 | 176 | |||||||||||||||||||||||||||
Time Deposits | (152 | ) | 168 | 16 | ||||||||||||||||||||||||||||||||
Time | (211 | ) | 273 | 62 | (573 | ) | 636 | 63 | ||||||||||||||||||||||||||||
Total Interest Bearing Deposits | (107 | ) | 236 | 129 | (161 | ) | 538 | 377 | (425 | ) | 1,027 | 602 | ||||||||||||||||||||||||
Other Borrowed Funds | - | - | - | |||||||||||||||||||||||||||||||||
Subordinated Debentures | - | 17 | 17 | - | 22 | 22 | - | 65 | 65 | |||||||||||||||||||||||||||
Total Interest Bearing Liabilities | (107 | ) | 253 | 146 | (161 | ) | 560 | 399 | (425 | ) | 1,092 | 667 | ||||||||||||||||||||||||
Total Change | $ | 918 | $ | 1,991 | $ | 2,909 | ||||||||||||||||||||||||||||||
Total Change on a Tax Equivalent Basis | $ | 1,978 | $ | 1,953 | $ | 3,931 | $ | 4,462 | $ | 6,222 | $ | 10,683 |
Three Months Ended March 31, | ||||||||
Allowance for Credit Losses (in thousands) | 2018 | 2017 | ||||||
Balance at Beginning of Period | $ | 50,342 | $ | 47,919 | ||||
Loans or Leases Charged Off | (21 | ) | (151 | ) | ||||
Recoveries of Loans or Leases Previously Charged Off | 23 | 32 | ||||||
Provision Charged to Expense | 333 | 600 | ||||||
Balance at End of Period | $ | 50,677 | $ | 48,400 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Balance at Beginning of Period | $ | 51,137 | $ | 49,064 | $ | 50,342 | $ | 47,919 | ||||||||
Charge-Offs | (634 | ) | (54 | ) | (723 | ) | (230 | ) | ||||||||
Recoveries | 64 | 134 | 115 | 205 | ||||||||||||
Provision | 2,500 | 1,600 | 3,333 | 2,850 | ||||||||||||
Balance at End of Period | $ | 53,067 | $ | 50,744 | $ | 53,067 | $ | 50,744 |
March 31, 2018 | Commercial Real Estate | Agricultural Real Estate | Real Estate Construction | Residential 1st Mortgages | Home Equity Lines & Loans | Agricultural | Commercial | Consumer & Other | Leases | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | 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: | Year-To-Date Allowance for Credit Losses: | Year-To-Date Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- January 1, 2018 | $ | 10,922 | $ | 12,085 | $ | 1,846 | $ | 815 | $ | 2,324 | $ | 8,159 | $ | 9,197 | $ | 209 | $ | 3,363 | $ | 1,422 | $ | 50,342 | $ | 10,922 | $ | 12,085 | $ | 1,846 | $ | 815 | $ | 2,324 | $ | 8,159 | $ | 9,197 | $ | 209 | $ | 3,363 | $ | 1,422 | $ | 50,342 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-Offs | - | - | - | - | (4 | ) | - | - | (17 | ) | - | - | (21 | ) | - | - | - | (12 | ) | (14 | ) | - | (613 | ) | (84 | ) | - | - | (723 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | - | - | - | 3 | 1 | 6 | 2 | 11 | - | - | 23 | - | - | - | 12 | 4 | 40 | 19 | 40 | - | - | 115 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | 156 | 157 | 27 | 9 | 22 | (297 | ) | 175 | 36 | 27 | 21 | 333 | (31 | ) | 1,422 | (372 | ) | 59 | 284 | 4 | 1,029 | 142 | 430 | 366 | 3,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance- March 31, 2018 | $ | 11,078 | $ | 12,242 | $ | 1,873 | $ | 827 | $ | 2,343 | $ | 7,868 | $ | 9,374 | $ | 239 | $ | 3,390 | $ | 1,443 | $ | 50,677 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance- September 30, 2018 | $ | 10,891 | $ | 13,507 | $ | 1,474 | $ | 874 | $ | 2,598 | $ | 8,203 | $ | 9,632 | $ | 307 | $ | 3,793 | $ | 1,788 | $ | 53,067 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Third Quarter Allowance for Credit Losses: | Third Quarter Allowance for Credit Losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- July 1, 2018 | $ | 10,783 | $ | 13,314 | $ | 1,616 | $ | 864 | $ | 2,548 | $ | 7,658 | $ | 9,436 | $ | 270 | $ | 3,400 | $ | 1,248 | $ | 51,137 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-Offs | - | - | - | - | (10 | ) | - | (599 | ) | (25 | ) | - | - | (634 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | - | - | - | 6 | 2 | 27 | 16 | 13 | - | - | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | 108 | 193 | (142 | ) | 4 | 58 | 518 | 779 | 49 | 393 | 540 | 2,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance- September 30, 2018 | $ | 10,891 | $ | 13,507 | $ | 1,474 | $ | 874 | $ | 2,598 | $ | 8,203 | $ | 9,632 | $ | 307 | $ | 3,793 | $ | 1,788 | $ | 53,067 |
· | The allowance for agricultural real estate loans increased $1.4 million due to balance increases in this portfolio segment, along with a $9.3 million increase in substandard loans related primarily to one borrower. |
· | The allowance for commercial loans increased $1.0 million primarily due to balance increases in this portfolio segment. |
Loan & Lease Portfolio | March 31, 2018 | December 31, 2017 | March 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | $ | % | $ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 705,063 | 31.5 | % | $ | 691,639 | 31.1 | % | $ | 682,687 | 31.7 | % | $ | 774,837 | 31.9 | % | $ | 691,639 | 31.1 | % | $ | 689,732 | 31.0 | % | ||||||||||||||||||||||||
Agricultural Real Estate | 508,400 | 22.7 | % | 499,231 | 22.5 | % | 463,645 | 21.6 | % | 553,608 | 22.8 | % | 499,231 | 22.5 | % | 470,738 | 21.2 | % | ||||||||||||||||||||||||||||||
Real Estate Construction | 96,315 | 4.3 | % | 100,206 | 4.5 | % | 164,791 | 7.7 | % | 92,521 | 3.8 | % | 100,206 | 4.5 | % | 162,167 | 7.3 | % | ||||||||||||||||||||||||||||||
Residential 1st Mortgages | 264,137 | 11.8 | % | 260,751 | 11.7 | % | 249,628 | 11.6 | % | 263,549 | 10.9 | % | 260,751 | 11.7 | % | 257,920 | 11.6 | % | ||||||||||||||||||||||||||||||
Home Equity Lines and Loans | 34,691 | 1.5 | % | 34,525 | 1.6 | % | 31,817 | 1.5 | % | 38,490 | 1.6 | % | 34,525 | 1.6 | % | 33,350 | 1.5 | % | ||||||||||||||||||||||||||||||
Agricultural | 261,427 | 11.7 | % | 273,582 | 12.3 | % | 266,010 | 12.4 | % | 287,821 | 11.9 | % | 273,582 | 12.3 | % | 259,127 | 11.7 | % | ||||||||||||||||||||||||||||||
Commercial | 274,682 | 12.3 | % | 265,703 | 12.0 | % | 209,184 | 9.7 | % | 304,333 | 12.6 | % | 265,703 | 12.0 | % | 257,951 | 11.6 | % | ||||||||||||||||||||||||||||||
Consumer & Other | 6,685 | 0.3 | % | 6,656 | 0.3 | % | 7,119 | 0.3 | % | 7,723 | 0.3 | % | 6,656 | 0.3 | % | 7,312 | 0.3 | % | ||||||||||||||||||||||||||||||
Leases | 89,678 | 3.9 | % | 88,957 | 4.0 | % | 76,591 | 3.5 | % | 101,081 | 4.2 | % | 88,957 | 4.0 | % | 84,485 | 3.8 | % | ||||||||||||||||||||||||||||||
Total Gross Loans & Leases | 2,241,078 | 100.0 | % | 2,221,250 | 100.0 | % | 2,151,472 | 100.0 | % | 2,423,963 | 100.0 | % | 2,221,250 | 100.0 | % | 2,222,782 | 100.0 | % | ||||||||||||||||||||||||||||||
Less: Unearned Income | 5,995 | 5,955 | 5,440 | 7,361 | 5,955 | 6,003 | ||||||||||||||||||||||||||||||||||||||||||
Subtotal | 2,235,083 | 2,215,295 | 2,146,032 | 2,416,602 | 2,215,295 | 2,216,779 | ||||||||||||||||||||||||||||||||||||||||||
Less: Allowance for Credit Losses | 50,677 | 50,342 | 48,400 | 53,067 | 50,342 | 50,744 | ||||||||||||||||||||||||||||||||||||||||||
Net Loans & Leases | $ | 2,184,406 | $ | 2,164,953 | $ | 2,097,632 | $ | 2,363,535 | $ | 2,164,953 | $ | 2,166,035 |
(in thousands) | March 31, 2018 | Dec. 31, 2017 | March 31, 2017 | |||||||||
Non-Performing Loans & Leases | $ | 81 | $ | 0 | $ | 1,421 | ||||||
Other Real Estate | 873 | 873 | 2,152 | |||||||||
Total Non-Performing Assets | $ | 954 | $ | 873 | $ | 3,573 | ||||||
Non-Performing Loans & Leases as a % of Total Loans & Leases | 0.00 | % | 0.00 | % | 0.07 | % | ||||||
Restructured Loans & Leases (Performing) | $ | 6,246 | $ | 6,301 | $ | 5,984 |
(in thousands) | September 30, 2018 | Dec. 31, 2017 | September 30, 2017 | |||||||||
Non-Performing Loans & Leases | $ | 0 | $ | 0 | $ | 4 | ||||||
Other Real Estate | 873 | 873 | 873 | |||||||||
Total Non-Performing Assets | $ | 873 | $ | 873 | $ | 877 | ||||||
Non-Performing Loans & Leases as a % of Total Loans & Leases | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
Restructured Loans & Leases (Performing) | $ | 13,551 | $ | 6,301 | $ | 6,202 |
· | The Central Valley was one of the hardest hit areas in the country during the recession. In many areas housing prices declined as much as 60% and unemployment reached 15% or more. Although the economy has |
· | The State of California experienced drought conditions from 2013 through most of 2016. Then, in late 2016 and early 2017 significant levels of rain and snow alleviated drought conditions in many areas of California, including those in the Company’s primary service area. In late 2017 and early 2018 rain levels |
· | The agricultural industry is facing challenges associated with: (1) weakness in export markets due to a stronger dollar and proposed changes in trade policies; (2) tight labor markets and higher wages due to legislative changes at the state and federal levels; and (3) proposed changes in immigration policy and the resulting impact on the labor pool. |
· | Demand and interest-bearing transaction accounts increased |
· | Savings and money market accounts have increased |
· | Time deposit accounts have decreased |
(in thousands) | Actual | Current Regulatory Capital Requirements | Well Capitalized Under Prompt Corrective Action | Actual | Current Regulatory Capital Requirements | Well Capitalized Under Prompt Corrective Action | ||||||||||||||||||||||||||||||||||||||||||
The Company: | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||
As of March 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Ratio | $ | 352,361 | 13.33 | % | $ | 211,442 | 8.0 | % | N/A | N/A | $ | 351,093 | 12.37 | % | $ | 227,048 | 8.0 | % | N/A | N/A | ||||||||||||||||||||||||||||
Common Equity Tier 1 Capital Ratio | $ | 309,102 | 11.70 | % | $ | 118,936 | 4.5 | % | N/A | N/A | $ | 305,397 | 10.76 | % | $ | 127,714 | 4.5 | % | N/A | N/A | ||||||||||||||||||||||||||||
Tier 1 Capital Ratio | $ | 319,102 | 12.07 | % | $ | 158,582 | 6.0 | % | N/A | N/A | $ | 315,397 | 11.11 | % | $ | 170,286 | 6.0 | % | N/A | N/A | ||||||||||||||||||||||||||||
Tier 1 Leverage Ratio | $ | 319,102 | 10.49 | % | $ | 121,695 | 3.0 | % | N/A | N/A | $ | 315,397 | 10.12 | % | $ | 124,718 | 3.0 | % | N/A | N/A |
(in thousands) | Actual | Current Regulatory Capital Requirements | Well Capitalized Under Prompt Corrective Action | |||||||||||||||||||||
The Bank: | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
As of September 30, 2018 | ||||||||||||||||||||||||
Total Capital Ratio | $ | 338,695 | 11.99 | % | $ | 226,049 | 8.0 | % | $ | 282,562 | 10.0 | % | ||||||||||||
Common Equity Tier 1 Capital Ratio | $ | 303,153 | 10.73 | % | $ | 127,153 | 4.5 | % | $ | 183,665 | 6.5 | % | ||||||||||||
Tier 1 Capital Ratio | $ | 303,153 | 10.73 | % | $ | 169,537 | 6.0 | % | $ | 226,049 | 8.0 | % | ||||||||||||
Tier 1 Leverage Ratio | $ | 303,153 | 9.78 | % | $ | 123,985 | 3.0 | % | $ | 154,982 | 5.0 | % |
(in thousands) | Actual | Current Regulatory Capital Requirements | Well Capitalized Under Prompt Corrective Action | |||||||||||||||||||||
The Bank: | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
As of March 31, 2018 | ||||||||||||||||||||||||
Total Capital Ratio | $ | 340,551 | 12.95 | % | $ | 210,435 | 8.0 | % | $ | 263,044 | 10.0 | % | ||||||||||||
Common Equity Tier 1 Capital Ratio | $ | 307,447 | 11.69 | % | $ | 118,370 | 4.5 | % | $ | 170,979 | �� | 6.5 | % | |||||||||||
Tier 1 Capital Ratio | $ | 307,447 | 11.69 | % | $ | 157,826 | 6.0 | % | $ | 210,435 | 8.0 | % | ||||||||||||
Tier 1 Leverage Ratio | $ | 307,447 | 10.15 | % | $ | 121,184 | 3.0 | % | $ | 151,480 | 5.0 | % |
(in thousands) | March 31, 2018 | December 31, 2017 | March 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||||
Commitments to Extend Credit | $ | 767,718 | $ | 735,678 | $ | 602,932 | $ | 789,169 | $ | 735,678 | $ | 700,747 | ||||||||||||
Letters of Credit | 19,729 | 20,061 | 17,394 | 20,176 | 20,061 | 19,225 | ||||||||||||||||||
Performance Guarantees Under Interest Rate Swap Contracts Entered Into Between Our Borrowing Customers and Third Parties | - | 759 | 1,256 | - | 759 | 1,479 |
§ | general economic and business conditions affecting the key service areas of the Company; |
§ | credit quality trends (including trends in collateral values, delinquencies and non-performing loans & leases); |
§ | loan & lease volumes, growth rates and concentrations; |
§ | loan & lease portfolio seasoning; |
§ | specific industry and crop conditions; |
§ | recent loss experience; and |
§ | duration of the current business cycle. |
Exhibit No. | Description | |
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. | ||
Certifications 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 | XBRL Instance Document | |
101.SCH | XBRL Schema Document | |
101.CAL | XBRL Calculation Linkbase Document | |
101.LAB | XBRL Label Linkbase Document | |
101.PRE XBRL | Presentation Linkbase Document | |
101.DEF XBRL |
FARMERS & MERCHANTS BANCORP | |||
Date: | |||
Kent A. Steinwert | |||
Chairman, President | |||
& Chief Executive Officer | |||
(Principal Executive Officer) |
Date: | /s/ Stephen W. Haley | |
Stephen W. Haley | ||
Executive Vice President and | ||
Chief Financial Officer | ||
(Principal Financial & Accounting Officer) |