Delaware | 94-3327828 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
111 W. Pine Street, Lodi, California | 95240 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
None | Not Applicable | Not Applicable |
Large accelerated filer ☐ | Accelerated filer ☒ |
Non-accelerated filer ☐ | |
Smaller reporting company ☐ | |
Emerging growth company ☐ |
PART I. - FINANCIAL INFORMATION | Page | |||
Item 1 - Financial Statements | ||||
4 | ||||
5 | ||||
6 | ||||
7 | ||||
8 | ||||
34 | ||||
39 | ||||
44 | ||||
PART II. - OTHER INFORMATION | ||||
59 | ||||
59 | ||||
59 | ||||
59 | ||||
59 | ||||
59 | ||||
Item 1. | Financial Statements |
(Dollars in thousands, except share and per share amounts) | March 31, 2022 | December 31, 2021 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 68,774 | $ | 52,499 | ||||
Interest bearing deposits with banks | 772,312 | 662,961 | ||||||
Total cash and cash equivalents | 841,086 | 715,460 | ||||||
Securities available for sale, at fair value | 251,375 | 270,454 | ||||||
Securities held to maturity, at amortized cost | 876,257 | 737,052 | ||||||
Total investment securities | 1,127,632 | 1,007,506 | ||||||
Non-marketable securities | 15,549 | 15,549 | ||||||
Loans and leases held for investment | 3,237,619 | 3,237,177 | ||||||
Allowance for credit losses | (61,032 | ) | (61,007 | ) | ||||
Loans held for investment, net | 3,176,587 | 3,176,170 | ||||||
Bank-owned life insurance | 71,953 | 71,411 | ||||||
Premises and equipment, net | 47,423 | 47,730 | ||||||
Deferred income tax assets | 30,361 | 25,542 | ||||||
Accrued interest receivable | 14,473 | 18,098 | ||||||
Goodwill | 11,183 | 11,183 | ||||||
Other intangibles | 3,254 | 3,402 | ||||||
Other real estate owned | 873 | 873 | ||||||
Other assets | 83,802 | 84,796 | ||||||
TOTAL ASSETS | $ | 5,424,176 | $ | 5,177,720 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 1,764,857 | $ | 1,750,330 | ||||
Interest bearing: | ||||||||
Demand | 1,124,470 | 1,097,337 | ||||||
Savings and money market | 1,557,332 | 1,400,000 | ||||||
Certificate of deposits | 390,780 | 392,485 | ||||||
Total interest bearing | 3,072,582 | 2,889,822 | ||||||
Total deposits | 4,837,439 | 4,640,152 | ||||||
Subordinated debentures | 10,310 | 10,310 | ||||||
Interest payable and other liabilities | 111,714 | 64,122 | ||||||
TOTAL LIABILITIES | 4,959,463 | 4,714,584 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred shares, 0 par value, 1,000,000 shares authorized and, NaN issued or outstanding | 0 | 0 | ||||||
Common shares, $0.01 par value, 7,500,000 authorized 785,146 and 789,646 outstanding at March 31, 2022 and December 31, 2021, respectively | 8 | 8 | ||||||
Additional paid in capital | 73,264 | 77,516 | ||||||
Retained earnings | 404,389 | 387,331 | ||||||
Accumulated other comprehensive (loss), net of taxes | (12,948 | ) | (1,719 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 464,713 | 463,136 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,424,176 | $ | 5,177,720 |
Assets | March 31, 2021 (Unaudited) | December 31, 2020 | March 31, 2020 (Unaudited) | |||||||||
Cash and Cash Equivalents: | ||||||||||||
Cash and Due from Banks | $ | 58,883 | $ | 66,327 | $ | 57,304 | ||||||
Interest Bearing Deposits with Banks | 434,524 | 317,510 | 225,656 | |||||||||
Total Cash and Cash Equivalents | 493,407 | 383,837 | 282,960 | |||||||||
Investment Securities: | ||||||||||||
Available-for-Sale, at Fair Value | 560,973 | 807,732 | 532,246 | |||||||||
Held-to-Maturity, fair value $374,828, $70,049 and $59,503, respectively | 385,054 | 68,933 | 58,701 | |||||||||
Total Investment Securities | 946,027 | 876,665 | 590,947 | |||||||||
Loans & Leases: | 3,111,011 | 3,099,592 | 2,670,109 | |||||||||
Less: Allowance for Credit Losses | 60,175 | 58,862 | 54,824 | |||||||||
Loans & Leases, Net | 3,050,836 | 3,040,730 | 2,615,285 | |||||||||
Premises and Equipment, Net | 49,585 | 50,147 | 45,910 | |||||||||
Bank Owned Life Insurance, Net | 69,762 | 69,235 | 67,657 | |||||||||
Interest Receivable and Other Assets | 124,842 | 129,839 | 117,682 | |||||||||
Total Assets | $ | 4,734,459 | $ | 4,550,453 | $ | 3,720,441 | ||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 1,529,753 | $ | 1,475,425 | $ | 1,009,561 | ||||||
Interest Bearing Transaction | 979,185 | 902,487 | 695,283 | |||||||||
Savings and Money Market | 1,315,700 | 1,260,487 | 1,028,681 | |||||||||
Time | 416,576 | 421,868 | 521,748 | |||||||||
Total Deposits | 4,241,214 | 4,060,267 | 3,255,273 | |||||||||
Subordinated Debentures | 10,310 | 10,310 | 10,310 | |||||||||
Interest Payable and Other Liabilities | 56,965 | 56,211 | 60,628 | |||||||||
Total Liabilities | 4,308,489 | 4,126,788 | 3,326,211 | |||||||||
Shareholders’ Equity | ||||||||||||
Preferred Stock: NaN Par Value, 1,000,000 Shares Authorized, NaN Issued or Outstanding | 0 | 0 | 0 | |||||||||
Common Stock: Par Value $0.01, 7,500,000 Shares Authorized, 789,646, 789,646 and 793,556, Shares Issued and Outstanding at March 31, 2021, December 31, 2020 and March 31, 2020, Respectively | 8 | 8 | 8 | |||||||||
Additional Paid-In Capital | 77,516 | 77,516 | 80,350 | |||||||||
Retained Earnings | 349,790 | 333,070 | 300,158 | |||||||||
Accumulated Other Comprehensive (Loss) Income, Net of Taxes | (1,344 | ) | 13,071 | 13,714 | ||||||||
Total Shareholders’ Equity | 425,970 | 423,665 | 394,230 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 4,734,459 | $ | 4,550,453 | $ | 3,720,441 |
Three Months Ended March 31, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | ||||||
Interest income | ||||||||
Interest and fees on loans and leases | $ | 37,433 | $ | 37,087 | ||||
Interest and dividends on investments | 5,295 | 4,417 | ||||||
Interest on deposits with others | 366 | 103 | ||||||
Total interest income | 43,094 | 41,607 | ||||||
Interest expense | ||||||||
Deposits | 803 | 1,237 | ||||||
Subordinated debentures | 82 | 79 | ||||||
Total interest expense | 885 | 1,316 | ||||||
Net interest income | 42,209 | 40,291 | ||||||
Provision for credit losses | 0 | 1,250 | ||||||
Net interest income after provision for credit losses | 42,209 | 39,041 | ||||||
Noninterest income | ||||||||
Card processing | 1,737 | 1,579 | ||||||
Service charges on deposit accounts | 850 | 638 | ||||||
Increase in cash surrender value of BOLI | 542 | 526 | ||||||
Gain on sale of investment securities | 0 | 1,840 | ||||||
Net gain/(loss) on deferred compensation benefits | 412 | 3,540 | ||||||
Other | 771 | 1,412 | ||||||
Total noninterest income | 4,312 | 9,535 | ||||||
Noninterest expense | ||||||||
Salaries and employee benefits | 16,784 | 16,740 | ||||||
Net gain/(loss) on deferred compensation benefits | 412 | 3,540 | ||||||
Occupancy | 1,154 | 1,231 | ||||||
Data processing | 1,215 | 1,224 | ||||||
FDIC insurance | 349 | 287 | ||||||
Marketing | 316 | 188 | ||||||
Legal | 279 | 111 | ||||||
Other | 3,279 | 3,042 | ||||||
Total noninterest expense | 23,788 | 26,363 | ||||||
INCOME BEFORE INCOME TAXES | 22,733 | 22,213 | ||||||
Income tax expense | 5,675 | 5,500 | ||||||
NET INCOME | $ | 17,058 | $ | 16,713 | ||||
Earnings per common share: | ||||||||
Basic | $ | 21.70 | $ | 21.17 | ||||
Diluted | $ | 21.70 | $ | 21.17 | ||||
Weighted average number of common shares | ||||||||
Basic | 786,096 | 789,646 | ||||||
Diluted | 786,096 | 789,646 |
(in thousands except per share data) | Three Months Ended March 31, | |||||||
2021 | 2020 | |||||||
Interest Income | ||||||||
Interest and Fees on Loans & Leases | $ | 37,087 | $ | 34,160 | ||||
Interest on Deposits with Banks | 103 | 947 | ||||||
Interest on Investment Securities: | ||||||||
Taxable | 3,804 | 3,152 | ||||||
Exempt from Federal Tax | 423 | 430 | ||||||
Total Interest Income | 41,417 | 38,689 | ||||||
Interest Expense | ||||||||
Deposits | 1,237 | 3,144 | ||||||
Subordinated Debentures | 79 | 119 | ||||||
Total Interest Expense | 1,316 | 3,263 | ||||||
Net Interest Income | 40,101 | 35,426 | ||||||
Provision for Credit Losses | 1,250 | 0 | ||||||
Net Interest Income After Provision for Credit Losses | 38,851 | 35,426 | ||||||
Non-Interest Income | ||||||||
Service Charges on Deposit Accounts | 638 | 920 | ||||||
Net Gain on Sale of Investment Securities | 1,840 | 13 | ||||||
Increase in Cash Surrender Value of Bank Owned Life Insurance | 526 | 509 | ||||||
Debit Card and ATM Fees | 1,579 | 1,277 | ||||||
Net Gain (Loss) on Deferred Compensation Investments | 3,540 | (662 | ) | |||||
Other | 1,602 | 870 | ||||||
Total Non-Interest Income | 9,725 | 2,927 | ||||||
Non-Interest Expense | ||||||||
Salaries and Employee Benefits | 16,740 | 14,880 | ||||||
Net Gain (Loss) on Deferred Compensation Investments | 3,540 | (662 | ) | |||||
Occupancy | 1,231 | 1,106 | ||||||
Equipment | 1,224 | 1,168 | ||||||
Marketing | 188 | 245 | ||||||
Legal | 111 | 30 | ||||||
FDIC Insurance | 287 | 0 | ||||||
Other | 3,042 | 3,023 | ||||||
Total Non-Interest Expense | 26,363 | 19,790 | ||||||
Income Before Provision for Income Taxes | 22,213 | 18,563 | ||||||
Provision for Income Taxes | 5,500 | 4,441 | ||||||
Net Income | $ | 16,713 | $ | 14,122 | ||||
Basic and Diluted Earnings Per Common Share | $ | 21.17 | $ | 17.80 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net Income | $ | 16,713 | $ | 14,122 | ||||
Other Comprehensive Income | ||||||||
Increase in Net Unrealized (Loss) Gain on Available-for-Sale Securities | (18,566 | ) | 14,790 | |||||
Deferred Tax Benefit Related to Unrealized (Loss) Gains | 5,489 | (4,372 | ) | |||||
Reclassification Adjustment for Realized Gains on Available-for-Sale Securities | (1,840 | ) | (13 | ) | ||||
Deferred Tax Benefit Related to Reclassification Adjustment | 544 | 4 | ||||||
Amortization of Unrealized (Loss) on Securities Transferred from Available-for-Sale to Held-to-Maturity | (58 | ) | 0 | |||||
Deferred Tax Benefit Related to (Loss) on Securities Transferred | 16 | 0 | ||||||
Total Other Comprehensive Income | (14,415 | ) | 10,409 | |||||
Comprehensive Income | $ | 2,298 | $ | 24,531 |
Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Gain / (Loss) net | Total Shareholders’ Equity | |||||||||||||||||||
Balance, December 31, 2019 | 793,033 | $ | 8 | $ | 79,947 | $ | 286,036 | $ | 3,305 | $ | 369,296 | |||||||||||||
Net Income | 0 | 0 | 14,122 | 0 | 14,122 | |||||||||||||||||||
Issuance of Common Stock | 523 | 0 | 403 | 0 | 0 | 403 | ||||||||||||||||||
Other Comprehensive Income | 0 | 0 | 0 | 10,409 | 10,409 | |||||||||||||||||||
Balance, March 31, 2020 | 793,556 | $ | 8 | $ | 80,350 | $ | 300,158 | $ | 13,714 | $ | 394,230 | |||||||||||||
Balance, December 31, 2020 | 789,646 | $ | 8 | $ | 77,516 | $ | 333,070 | $ | 13,071 | $ | 423,665 | |||||||||||||
Net Income | 0 | 0 | 16,713 | 0 | 16,713 | |||||||||||||||||||
Cash Dividends Returned | 0 | 0 | 7 | 0 | 7 | |||||||||||||||||||
Other Comprehensive Income | 0 | 0 | 0 | (14,415 | ) | (14,415 | ) | |||||||||||||||||
Balance, March 31, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 349,790 | $ | (1,344 | ) | $ | 425,970 |
Three Months | ||||||||
Ended March 31, | ||||||||
(in thousands) | 2021 | 2020 | ||||||
Operating Activities: | ||||||||
Net Income | $ | 16,713 | $ | 14,122 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
Provision for Credit Losses | 1,250 | 0 | ||||||
Depreciation and Amortization | 660 | 709 | ||||||
Net Amortization/Accretion of Investment Security Premiums & Discounts | 407 | 125 | ||||||
Amortization of Core Deposit Intangible | 153 | 157 | ||||||
Accretion of Discount on Acquired Loans | (16 | ) | (90 | ) | ||||
Net Gain on Sale of Investment Securities | (1,840 | ) | (13 | ) | ||||
Net Change in Operating Assets & Liabilities: | ||||||||
Net Decrease in Interest Receivable and Other Assets | 10,308 | 8,718 | ||||||
Net Increase (Decrease) in Interest Payable and Other Liabilities | 1,386 | (3,417 | ) | |||||
Net Cash Provided by Operating Activities | 29,021 | 20,311 | ||||||
Investing Activities: | ||||||||
Purchase of Investment Securities Available-for-Sale | (199,440 | ) | (67,661 | ) | ||||
Proceeds from Sold, Matured or Called Securities Available-for-Sale | 110,388 | 57,595 | ||||||
Purchase of Investment Securities Held-to-Maturity | (3,211 | ) | (2,380 | ) | ||||
Proceeds from Matured or Called Securities Held-to-Maturity | 3,930 | 3,904 | ||||||
Net Loans & Leases Paid, Originated or Acquired | (11,340 | ) | 2,820 | |||||
Additions to Premises and Equipment, Net | (100 | ) | (1,352 | ) | ||||
Purchase of Other Investments | (632 | ) | (2,289 | ) | ||||
Net Cash Used in Investing Activities | (100,405 | ) | (9,363 | ) | ||||
Financing Activities: | ||||||||
Net Increase (Decrease) in Deposits | 180,947 | (22,746 | ) | |||||
Cash Dividends Returned | 7 | 0 | ||||||
Net Cash Provided by (Used in) Financing Activities | 180,954 | (22,746 | ) | |||||
Net Change in Cash and Cash Equivalents | 109,570 | (11,798 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 383,837 | 294,758 | ||||||
Cash and Cash Equivalents at End of Period | $ | 493,407 | $ | 282,960 | ||||
Supplementary Data | ||||||||
Cash Payments Made for Income Taxes | $ | 0 | $ | 3 | ||||
Issuance of Common Stock to the Bank’s Non-Qualified Retirement Plans | $ | 0 | $ | 403 | ||||
Interest Paid | $ | 1,943 | $ | 3,628 | ||||
Supplementary Noncash Disclosure | ||||||||
Investment Securities Available-for-Sale Transferred to Held-to-Maturity | $ | 316,925 | $ | 0 |
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Net income | $ | 17,058 | $ | 16,713 | ||||
Other comprehensive income | ||||||||
Unrealized holding (losses)/gains on securities available for sale | (15,865 | ) | (18,566 | ) | ||||
Reclassification adjustment for (gains)/losses on available for sale securities | 0 | (1,840 | ) | |||||
Amortization of unrealized loss on securities transferred to held to maturity | (77 | ) | (58 | ) | ||||
Net unrealized holding (losses)/gains on securities available for sale | (15,942 | ) | (20,464 | ) | ||||
Income tax benefit/(expense) | 4,713 | 6,049 | ||||||
Other comprehensive (loss)/income, net of tax | (11,229 | ) | (14,415 | ) | ||||
Total comprehensive income | $ | 5,829 | $ | 2,298 |
(Dollars in thousands, except share amounts) | Common Shares | Amount | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Total | ||||||||||||||||||
Balance as of December 31, 2020 | 789,646 | $ | 8 | $ | 77,516 | $ | 333,070 | $ | 13,071 | $ | 423,665 | |||||||||||||
Net income | - | 0 | 0 | 16,713 | 0 | 16,713 | ||||||||||||||||||
Other comprehensive (loss), net of tax | - | 0 | 0 | 0 | (14,415 | ) | (14,415 | ) | ||||||||||||||||
Cash dividends returned | - | 0 | 0 | 7 | 0 | 7 | ||||||||||||||||||
Balance as of March 31, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 349,790 | $ | (1,344 | ) | $ | 425,970 | ||||||||||||
Balance as of December 31, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 387,331 | $ | (1,719 | ) | $ | 463,136 | ||||||||||||
Net income | - | 0 | 0 | 17,058 | 0 | 17,058 | ||||||||||||||||||
Other comprehensive (loss), net of tax | - | 0 | 0 | 0 | (11,229 | ) | (11,229 | ) | ||||||||||||||||
Repurchase of common stock | (4,500 | ) | 0 | (4,252 | ) | 0 | 0 | (4,252 | ) | |||||||||||||||
Balance as of March 31, 2022 | 785,146 | $ | 8 | $ | 73,264 | $ | 404,389 | $ | (12,948 | ) | $ | 464,713 |
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 17,058 | $ | 16,713 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for credit losses | 0 | 1,250 | ||||||
Depreciation and amortization | 656 | 660 | ||||||
Net amortization of securities premiums and discounts | 176 | 407 | ||||||
Increase in cash surrender value of BOLI | (542 | ) | (527 | ) | ||||
(Increase)/decrease in deferred income taxes, net | (113 | ) | 4,714 | |||||
Gains on sale of securities available for sale | 0 | (1,840 | ) | |||||
Net changes in: | ||||||||
Other assets | 4,709 | 6,258 | ||||||
Other liabilities | 6,966 | 1,386 | ||||||
Net cash provided by operating activities | 28,910 | 29,021 | ||||||
Cash flows from investing activities: | ||||||||
Net change in loans held for investment | (374 | ) | (11,340 | ) | ||||
Purchase of available for sale securities | (10,067 | ) | (199,440 | ) | ||||
Purchase of held to maturity securities | (118,162 | ) | (3,211 | ) | ||||
Maturities/sales of available for sale securities | 13,097 | 110,388 | ||||||
Maturities of held to maturity securities | 19,516 | 3,930 | ||||||
Purchase of premises and equipment | (363 | ) | (100 | ) | ||||
Purchase of other investments | 0 | (632 | ) | |||||
Proceeds from sale of assets | 34 | 0 | ||||||
Net cash used in investing activities | (96,319 | ) | (100,405 | ) | ||||
Cash flows from financing activities: | ||||||||
Net increase in deposits | 197,287 | 180,947 | ||||||
Net cash used in share repurchase program | (4,252 | ) | 0 | |||||
Cash dividends returned | 0 | 7 | ||||||
Net provided by financing activities | 193,035 | 180,954 | ||||||
Net change in cash and cash equivalents | 125,626 | 109,570 | ||||||
Cash and cash equivalents, beginning of period | 715,460 | 383,837 | ||||||
Cash and cash equivalents, end of period | $ | 841,086 | $ | 493,407 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 951 | $ | 1,943 | ||||
Supplemental disclosures of non-cash transactions: | ||||||||
Investment securities available for sale transferred to held to maturity | $ | 0 | $ | 316,925 | ||||
Security purchases settled in subsequent period | $ | (40,626 | ) | $ | 0 | |||
Unrealized losses on securities available for sale | $ | (15,865 | ) | $ | (20,406 | ) |
January-2022 | ||||||||||||
Reported | Reported | Impact of | ||||||||||
under | Pre- | ASC 326 | ||||||||||
(Dollars in thousands) | ASC 326 | Adoption | Adoption | |||||||||
Allowance for credit losses: | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | (17,379 | ) | $ | (28,536 | ) | $ | 11,157 | ||||
Agricultural | (14,580 | ) | (9,613 | ) | (4,967 | ) | ||||||
Residential and home equity | (5,879 | ) | (2,847 | ) | (3,032 | ) | ||||||
Construction | (3,311 | ) | (1,456 | ) | (1,855 | ) | ||||||
Total real estate | (41,149 | ) | (42,452 | ) | 1,303 | |||||||
Commercial & industrial | (11,417 | ) | (11,489 | ) | 72 | |||||||
Agricultural | (6,363 | ) | (5,465 | ) | (898 | ) | ||||||
Commercial leases | (1,567 | ) | (938 | ) | (629 | ) | ||||||
Consumer and other | (511 | ) | (663 | ) | 152 | |||||||
Total allowance for credit losses | $ | (61,007 | ) | $ | (61,007 | ) | $ | 0 |
(in thousands) | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | |||||||||||||||||||||
Core Deposit Intangible Amortization | $ | 459 | $ | 593 | $ | 573 | $ | 549 | $ | 522 | $ | 1,165 | $ | 3,861 |
Amortized | Gross Unrealized | Fair | ||||||||||||||
March 31, 2021 | Cost | Gains | Losses | Value | ||||||||||||
US Treasury Notes | $ | 14,885 | $ | 348 | $ | 0 | $ | 15,233 | ||||||||
US Government Agency SBA | 7,894 | 1 | 86 | 7,809 | ||||||||||||
Mortgage Backed Securities (1)(2) | 494,399 | 8,192 | 10,080 | 492,511 | ||||||||||||
Corporate Securities | 44,998 | 488 | 711 | 44,775 | ||||||||||||
Other | 645 | 0 | 0 | 645 | ||||||||||||
Total | $ | 562,821 | $ | 9,029 | $ | 10,877 | $ | 560,973 |
Available-for-Sale Securities | Gross Unrealized | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of March 31, 2022 | ||||||||||||||||
U.S. Treasury notes | $ | 9,955 | $ | 41 | $ | 0 | $ | 9,996 | ||||||||
U.S. Government-sponsored securities | 5,771 | 54 | 36 | 5,789 | ||||||||||||
Mortgage-backed securities (1) | 241,585 | 370 | 18,054 | 223,901 | ||||||||||||
Collateralized mortgage obligations (1) | 1,549 | 0 | 5 | 1,544 | ||||||||||||
Corporate securities | 10,051 | 0 | 216 | 9,835 | ||||||||||||
Other | 310 | 0 | 0 | 310 | ||||||||||||
Total available-for-sale securities | $ | 269,221 | $ | 465 | $ | 18,311 | $ | 251,375 |
Amortized | Gross Unrealized | Fair | ||||||||||||||
December 31, 2020 | Cost | Gains | Losses | Value | ||||||||||||
US Treasury Notes | $ | 14,859 | $ | 429 | $ | 0 | $ | 15,288 | ||||||||
US Government Agency SBA | 8,252 | 1 | 93 | 8,160 | ||||||||||||
Mortgage Backed Securities (1) | 720,562 | 17,359 | 48 | 737,873 | ||||||||||||
Corporate Securities | 45,010 | 927 | 18 | 45,919 | ||||||||||||
Other | 492 | 0 | 0 | 492 | ||||||||||||
Total | $ | 789,175 | $ | 18,716 | $ | 159 | $ | 807,732 |
Amortized | Gross Unrealized | Fair | ||||||||||||||
March 31, 2020 | Cost | Gains | Losses | Value | ||||||||||||
US Treasury Notes | $ | 14,777 | $ | 622 | $ | 0 | $ | 15,399 | ||||||||
US Government Agency SBA | 10,043 | 9 | 98 | 9,954 | ||||||||||||
Mortgage Backed Securities (1) | 482,439 | 18,945 | 8 | 501,376 | ||||||||||||
Other | 5,517 | 0 | 0 | 5,517 | ||||||||||||
Total | $ | 512,776 | $ | 19,576 | $ | 106 | $ | 532,246 |
Available-for-Sale Securities | Gross Unrealized | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of December 31, 2021 | ||||||||||||||||
U.S. Treasury notes | $ | 9,938 | $ | 151 | $ | 0 | $ | 10,089 | ||||||||
U.S. Government-sponsored securities | 6,351 | 62 | 39 | 6,374 | ||||||||||||
Mortgage-backed securities (1) | 253,300 | 3,200 | 5,380 | 251,120 | ||||||||||||
Collateralized mortgage obligations (1) | 2,412 | 24 | 0 | 2,436 | ||||||||||||
Other | 435 | 0 | 0 | 435 | ||||||||||||
Total available-for-sale securities | $ | 272,436 | $ | 3,437 | $ | 5,419 | $ | 270,454 |
Amortized | Gross Unrealized | Fair | ||||||||||||||
March 31, 2021 | Cost | Gains | Losses | Value | ||||||||||||
Obligations of States and Political Subdivisions | $ | 70,454 | $ | 905 | $ | 0 | $ | 71,359 | ||||||||
Mortgage Backed Securities (1)(2) | 314,600 | 0 | 11,131 | 303,469 | ||||||||||||
Total | $ | 385,054 | $ | 905 | $ | 11,131 | $ | 374,828 |
Held-to-Maturity Securities | Gross Unrealized | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of March 31, 2022 | ||||||||||||||||
Municipal securities | $ | 63,581 | $ | 162 | $ | 65 | $ | 63,678 | ||||||||
Mortgage-backed securities (1) | 695,249 | 0 | 60,650 | 634,599 | ||||||||||||
Collateralized mortgage obligations (1) | 117,427 | 0 | 4,795 | 112,632 | ||||||||||||
Total held-to-maturity securities | $ | 876,257 | $ | 162 | $ | 65,510 | $ | 810,909 |
Amortized | Gross Unrealized | Fair | ||||||||||||||
December 31, 2020 | Cost | Gains | Losses | Value | ||||||||||||
Obligations of States and Political Subdivisions | $ | 68,933 | $ | 1,116 | $ | 0 | $ | 70,049 | ||||||||
Total | $ | 68,933 | $ | 1,116 | $ | 0 | $ | 70,049 |
Amortized | Gross Unrealized | Fair | ||||||||||||||
March 31, 2020 | Cost | Gains | Losses | Value | ||||||||||||
Obligations of States and Political Subdivisions | $ | 58,701 | $ | 812 | $ | 10 | $ | 59,503 | ||||||||
Total | $ | 58,701 | $ | 812 | $ | 10 | $ | 59,503 |
Held-to-Maturity Securities | Gross Unrealized | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of December 31, 2021 | ||||||||||||||||
Municipal securities | $ | 66,496 | $ | 701 | $ | 0 | $ | 67,197 | ||||||||
Mortgage-backed securities (1) | 596,775 | 45 | 11,764 | 585,056 | ||||||||||||
Collateralized mortgage obligations (1) | 73,781 | 36 | 229 | 73,588 | ||||||||||||
Total held-to-maturity securities | $ | 737,052 | $ | 782 | $ | 11,993 | $ | 725,841 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||
March 31, 2021 | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Within one year | $ | 5,642 | $ | 5,650 | $ | 8,152 | $ | 8,152 | ||||||||
After one year through five years | 32,404 | 32,682 | 5,542 | 5,582 | ||||||||||||
After five years through ten years | 23,307 | 23,143 | 22,277 | 23,052 | ||||||||||||
After ten years | 7,069 | 6,987 | 34,483 | 34,573 | ||||||||||||
68,422 | 68,462 | 70,454 | 71,359 | |||||||||||||
Investment securities not due at a single maturity date: | ||||||||||||||||
Mortgage-backed securities | 494,399 | 492,511 | 314,600 | 303,469 | ||||||||||||
Total | $ | 562,821 | $ | 560,973 | $ | 385,054 | $ | 374,828 |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
March 31, 2021 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||
US Government Agency SBA | $ | 505 | $ | 1 | $ | 7,028 | $ | 85 | $ | 7,533 | $ | 86 | ||||||||||||
Mortgage Backed Securities | 277,832 | 10,077 | 173 | 3 | 278,005 | 10,080 | ||||||||||||||||||
Corporate Securities | 31,958 | 711 | 0 | 0 | 31,958 | 711 | ||||||||||||||||||
Total | $ | 310,295 | $ | 10,789 | $ | 7,201 | $ | 88 | $ | 317,496 | $ | 10,877 | ||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||
Mortgage Backed Securities | 303,275 | 11,131 | 0 | 0 | 303,275 | 11,131 | ||||||||||||||||||
Total | $ | 303,275 | $ | 11,131 | $ | 0 | $ | 0 | $ | 303,275 | $ | 11,131 |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
December 31, 2020 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||
US Government Agency SBA | $ | 1,741 | $ | 3 | $ | 6,126 | $ | 90 | $ | 7,867 | $ | 93 | ||||||||||||
Mortgage Backed Securities | 20,142 | 45 | 177 | 3 | 20,319 | 48 | ||||||||||||||||||
Corporate Securities | 4,041 | 18 | 0 | 0 | 4,041 | 18 | ||||||||||||||||||
Total | $ | 25,924 | $ | 66 | $ | 6,303 | $ | 93 | $ | 32,227 | $ | 159 |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
March 31, 2020 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||
US Government Agency SBA | $ | 2,458 | $ | 5 | $ | 4,674 | $ | 93 | $ | 7,132 | $ | 98 | ||||||||||||
Mortgage Backed Securities | 1,503 | 2 | 255 | 6 | 1,758 | 8 | ||||||||||||||||||
Total | $ | 3,961 | $ | 7 | $ | 4,929 | $ | 99 | $ | 8,890 | $ | 106 | ||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 728 | $ | 10 | $ | 0 | $ | 0 | $ | 728 | $ | 10 | ||||||||||||
Total | $ | 728 | $ | 10 | $ | 0 | $ | 0 | $ | 728 | $ | 10 |
Available-for-Sale Securities | As of March 31, 2022 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of March 31, 2022 | ||||||||||||||||||||||||
U.S. Government-sponsored securities | $ | 15 | $ | 0 | $ | 1,992 | $ | 36 | $ | 2,007 | $ | 36 | ||||||||||||
Mortgage-backed securities(1) | 81,711 | 3,753 | 114,391 | 14,301 | 196,102 | 18,054 | ||||||||||||||||||
Collateralized Mortgage Obligations(1) | 1,544 | 5 | 0 | 0 | 1,544 | 5 | ||||||||||||||||||
Corporate securities | 9,835 | 216 | 0 | 0 | 9,835 | 216 | ||||||||||||||||||
Total available-for-sale securities | $ | 93,105 | $ | 3,974 | $ | 116,383 | $ | 14,337 | $ | 209,488 | $ | 18,311 |
Available-for-Sale Securities | As of December 31, 2021 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||
U.S. Government-sponsored securities | $ | 183 | $ | 0 | $ | 2,007 | $ | 39 | $ | 2,190 | $ | 39 | ||||||||||||
Mortgage-backed securities(1) | 61,469 | 1,192 | 104,489 | 4,188 | 165,958 | 5,380 | ||||||||||||||||||
Total available-for-sale securities | $ | 61,652 | $ | 1,192 | $ | 106,496 | $ | 4,227 | $ | 168,148 | $ | 5,419 |
Held-to-Maturity Securities | As of March 31, 2022 | |||||||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
As of March 31, 2022 | ||||||||||||||||||||||||
Municipal securities | $ | 1,034 | $ | 65 | $ | 0 | $ | 0 | $ | 1,034 | $ | 65 | ||||||||||||
Mortgage-backed securities(1) | 398,924 | 31,318 | 234,460 | 29,332 | 633,384 | 60,650 | ||||||||||||||||||
Collateralized mortgage obligations(1) | 73,221 | 4,795 | 0 | 0 | 73,221 | 4,795 | ||||||||||||||||||
Total held-to-maturity securities | $ | 473,179 | $ | 36,178 | $ | 234,460 | $ | 29,332 | $ | 707,639 | $ | 65,510 |
Held-to-Maturity Securities | As of December 31, 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | 570,119 | $ | 11,764 | $ | 0 | $ | 0 | $ | 570,119 | $ | 11,764 | ||||||||||||
Collateralized mortgage obligations(1) | 58,977 | 229 | 0 | 0 | 58,977 | 229 | ||||||||||||||||||
Total held-to-maturity securities | $ | 629,096 | $ | 11,993 | $ | 0 | $ | 0 | $ | 629,096 | $ | 11,993 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Securities maturing in: | ||||||||||||||||
One year or less | $ | 10,268 | $ | 10,310 | $ | 908 | $ | 908 | ||||||||
After one year through five years | 5,160 | 5,073 | 7,118 | 7,113 | ||||||||||||
After five years through ten years | 5,455 | 5,326 | 16,690 | 16,846 | ||||||||||||
After ten years | 5,204 | 5,221 | 38,865 | 38,811 | ||||||||||||
$ | 26,087 | $ | 25,930 | $ | 63,581 | $ | 63,678 | |||||||||
Securities not due at a single maturity date: | ||||||||||||||||
Mortgage-backed securities | 241,585 | 223,901 | 695,249 | 634,599 | ||||||||||||
Collateralized Mortgage Obligations | 1,549 | 1,544 | 117,427 | 112,632 | ||||||||||||
Total | $ | 269,221 | $ | 251,375 | $ | 876,257 | $ | 810,909 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||||||
Fair Value | Amortized Cost | |||||||||||||||||||||||
(Dollars in thousands) | AAA/AA/A | BBB/BB/B | Not Rated | AAA/AA/A | BBB/BB/B | Not Rated | ||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||
Breakdown by Category: | ||||||||||||||||||||||||
U.S. Treasury notes(1) | $ | 0 | $ | 0 | $ | 9,996 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
U.S. Government-sponsored securities | 0 | 0 | 5,789 | 0 | 0 | 0 | ||||||||||||||||||
Mortgage-backed securities(1) | 0 | 0 | 223,901 | 0 | 0 | 695,249 | ||||||||||||||||||
Collateralized mortgage obligations(1) | 0 | 0 | 1,544 | 0 | 0 | 117,427 | ||||||||||||||||||
Obligations of States and Political Subdivisions | 0 | 0 | 0 | 19,715 | 134 | 43,732 | ||||||||||||||||||
Corporate securities | 9,835 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other | 0 | 0 | 310 | 0 | 0 | 0 | ||||||||||||||||||
Total Investment Grade | $ | 9,835 | $ | 0 | $ | 241,540 | $ | 19,715 | $ | 134 | $ | 856,408 |
(in thousands) | Proceeds | Gains | Losses | |||||||||
Three Months Ended March 31, 2021 | $ | 63,788 | $ | 1,840 | $ | 0 | ||||||
Three Months Ended March 31, 2020 | $ | 2,255 | $ | 13 | $ | 0 |
(Dollars in thousands) | Gross Proceeds | Gross Gains | Gross Losses | |||||||||
Three months ended March 31, 2022 | $ | 2,190 | $ | 0 | $ | 0 | ||||||
Three months ended March 31, 2021 | $ | 63,788 | $ | 1,840 | $ | 0 |
(in thousands) | March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||
Commercial Real Estate | $ | 1,021,565 | $ | 971,326 | $ | 868,736 | ||||||
Agricultural Real Estate | 634,244 | 643,014 | 594,154 | |||||||||
Real Estate Construction | 208,573 | 185,741 | 126,956 | |||||||||
Residential 1st Mortgages | 305,085 | 299,379 | 256,732 | |||||||||
Home Equity Lines and Loans | 32,407 | 34,239 | 40,747 | |||||||||
Agricultural | 221,152 | 264,372 | 264,771 | |||||||||
Commercial | 367,875 | 374,816 | 404,329 | |||||||||
Consumer & Other (1) | 232,209 | 235,529 | 14,839 | |||||||||
Leases | 101,058 | 103,117 | 105,362 | |||||||||
Total Gross Loans & Leases | 3,124,168 | 3,111,533 | 2,676,626 | |||||||||
Less: Unearned Income | 13,157 | 11,941 | 6,517 | |||||||||
Subtotal | 3,111,011 | 3,099,592 | 2,670,109 | |||||||||
Less: Allowance for Credit Losses | 60,175 | 58,862 | 54,824 | |||||||||
Net Loans & Leases | $ | 3,050,836 | $ | 3,040,730 | $ | 2,615,285 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Loans and leases held-for-investment, net | ||||||||
Real estate: | ||||||||
Commercial | $ | 1,172,804 | $ | 1,167,516 | ||||
Agricultural | 695,565 | 672,830 | ||||||
Residential and home equity | 359,214 | 350,581 | ||||||
Construction | 204,794 | 177,163 | ||||||
Total real estate | 2,432,377 | 2,368,090 | ||||||
Commercial & industrial | 437,199 | 427,799 | ||||||
Agricultural(1) | 251,469 | 276,684 | ||||||
Commercial leases | 92,445 | 96,971 | ||||||
Consumer and other(2) | 33,255 | 78,367 | ||||||
Total gross loans and leases | 3,246,745 | 3,247,911 | ||||||
Unearned income | (9,126 | ) | (10,734 | ) | ||||
Total net loans and leases | 3,237,619 | 3,237,177 | ||||||
Allowance for credit losses | (61,032 | ) | (61,007 | ) | ||||
Total loans and leases held-for-investment, net | $ | 3,176,587 | $ | 3,176,170 |
(1) | The reduction in Agricultural loans is the result of the seasonal cycle, with the first quarter being outside the growing period. |
(2) | Includes SBA PPP loans. |
March 31, 2021 | Commercial Real Estate | Agricultural Real Estate | Real Estate Construction | Residential 1st Mortgages | Home Equity Lines & Loans | Agricultural | Commercial | Consumer & Other | Leases | Unallocated | Total | |||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- December 31, 2020 | $ | 27,679 | $ | 8,633 | $ | 1,643 | $ | 960 | $ | 2,024 | $ | 4,814 | $ | 9,961 | $ | 333 | $ | 1,731 | $ | 1,084 | $ | 58,862 | ||||||||||||||||||||||
Charge-Offs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (8 | ) | 0 | 0 | (8 | ) | |||||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 28 | 4 | 3 | 29 | 7 | 0 | 0 | 71 | |||||||||||||||||||||||||||||||||
Provision | 1,387 | 415 | 4 | (21 | ) | (114 | ) | (570 | ) | (14 | ) | (36 | ) | (57 | ) | 256 | 1,250 | |||||||||||||||||||||||||||
Ending Balance- March 31, 2021 | $ | 29,066 | $ | 9,048 | $ | 1,647 | $ | 967 | $ | 1,914 | $ | 4,247 | $ | 9,976 | $ | 296 | $ | 1,674 | $ | 1,340 | $ | 60,175 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 107 | 8 | 0 | 15 | 48 | 0 | 0 | 178 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 29,066 | 9,048 | 1,647 | 860 | 1,906 | 4,247 | 9,961 | 248 | 1,674 | 1,340 | 59,997 | |||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 1,008,032 | $ | 634,244 | $ | 208,573 | $ | 305,085 | $ | 32,407 | $ | 221,152 | $ | 367,875 | $ | 232,209 | $ | 101,434 | $ | 0 | $ | 3,111,011 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 99 | 0 | 2,149 | 2 | 153 | 6,122 | 228 | 186 | 0 | 0 | 8,939 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | $ | 1,007,933 | $ | 634,244 | $ | 206,424 | $ | 305,083 | $ | 32,254 | $ | 215,030 | $ | 367,647 | $ | 232,023 | $ | 101,434 | $ | 0 | $ | 3,102,072 |
December 31, 2020 | Commercial Real Estate | Agricultural Real Estate | Real Estate Construction | Residential 1st Mortgages | Home Equity Lines & Loans | Agricultural | Commercial | Consumer & Other | Leases | Unallocated | Total | |||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- December 31, 2019 | $ | 11,053 | $ | 15,128 | $ | 1,949 | $ | 855 | $ | 2,675 | $ | 8,076 | $ | 11,466 | $ | 456 | $ | 3,162 | $ | 192 | $ | 55,012 | ||||||||||||||||||||||
Charge-Offs | 0 | 0 | 0 | 0 | (7 | ) | 0 | (1,101 | ) | (66 | ) | 0 | 0 | (1,174 | ) | |||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 52 | 78 | 81 | 280 | 33 | 0 | 0 | 524 | |||||||||||||||||||||||||||||||||
Provision | 16,626 | (6,495 | ) | (306 | ) | 53 | (722 | ) | (3,343 | ) | (684 | ) | (90 | ) | (1,431 | ) | 892 | 4,500 | ||||||||||||||||||||||||||
Ending Balance- December 31, 2020 | $ | 27,679 | $ | 8,633 | $ | 1,643 | $ | 960 | $ | 2,024 | $ | 4,814 | $ | 9,961 | $ | 333 | $ | 1,731 | $ | 1,084 | $ | 58,862 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 117 | 8 | 92 | 20 | 52 | 0 | 0 | 289 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 27,679 | 8,633 | 1,643 | 843 | 2,016 | 4,722 | 9,941 | 281 | 1,731 | 1,084 | 58,573 | |||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 958,980 | $ | 643,014 | $ | 185,741 | $ | 299,379 | $ | 34,239 | $ | 264,372 | $ | 374,816 | $ | 235,529 | $ | 103,522 | $ | 0 | $ | 3,099,592 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 104 | 5,629 | 0 | 2,365 | 158 | 495 | 233 | 254 | 0 | 0 | 9,238 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | $ | 958,876 | $ | 637,385 | $ | 185,741 | $ | 297,014 | $ | 34,081 | $ | 263,877 | $ | 374,583 | $ | 235,275 | $ | 103,522 | $ | 0 | $ | 3,090,354 |
March 31, 2020 | Commercial Real Estate | Agricultural Real Estate | Real Estate Construction | Residential 1st Mortgages | Home Equity Lines & Loans | Agricultural | Commercial | Consumer & Other | Leases | Unallocated | Total | |||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- December 31, 2019 | $ | 11,053 | $ | 15,128 | $ | 1,949 | $ | 855 | $ | 2,675 | $ | 8,076 | $ | 11,466 | $ | 456 | $ | 3,162 | $ | 192 | $ | 55,012 | ||||||||||||||||||||||
Charge-Offs | 0 | 0 | 0 | 0 | 0 | 0 | (244 | ) | (21 | ) | 0 | 0 | (265 | ) | ||||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 19 | 20 | 28 | 2 | 8 | 0 | 0 | 77 | |||||||||||||||||||||||||||||||||
Provision | 69 | (659 | ) | (22 | ) | 163 | 88 | (1,145 | ) | 990 | (61 | ) | 26 | 551 | 0 | |||||||||||||||||||||||||||||
Ending Balance- March 31, 2020 | $ | 11,122 | $ | 14,469 | $ | 1,927 | $ | 1,037 | $ | 2,783 | $ | 6,959 | $ | 12,214 | $ | 382 | $ | 3,188 | $ | 743 | $ | 54,824 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 116 | 10 | 398 | 11 | 60 | 0 | 0 | 595 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 11,122 | 14,469 | 1,927 | 921 | 2,773 | 6,561 | 12,203 | 322 | 3,188 | 743 | 54,229 | |||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 861,311 | $ | 594,154 | $ | 126,956 | $ | 256,732 | $ | 40,747 | $ | 264,771 | $ | 404,329 | $ | 14,839 | $ | 106,270 | $ | 0 | $ | 2,670,109 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 4,486 | 5,629 | 0 | 2,310 | 200 | 733 | 1,517 | 196 | 0 | 0 | 15,071 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | $ | 856,825 | $ | 588,525 | $ | 126,956 | $ | 254,422 | $ | 40,547 | $ | 264,038 | $ | 402,812 | $ | 14,643 | $ | 106,270 | $ | 0 | $ | 2,655,038 |
March 31, 2021 | Pass(1) | Special Mention | Substandard | Total Loans & Leases | ||||||||||||
Loans & Leases: | ||||||||||||||||
Commercial Real Estate | $ | 995,679 | $ | 7,843 | $ | 4,510 | $ | 1,008,032 | ||||||||
Agricultural Real Estate | 621,696 | 977 | 11,571 | 634,244 | ||||||||||||
Real Estate Construction | 208,573 | 0 | 0 | 208,573 | ||||||||||||
Residential 1st Mortgages | 304,237 | 0 | 848 | 305,085 | ||||||||||||
Home Equity Lines & Loans | 32,228 | 0 | 179 | 32,407 | ||||||||||||
Agricultural | 220,294 | 365 | 493 | 221,152 | ||||||||||||
Commercial | 366,022 | 1,196 | 657 | 367,875 | ||||||||||||
Consumer & Other | 230,919 | 0 | 1,290 | 232,209 | ||||||||||||
Leases | 101,434 | 0 | 0 | 101,434 | ||||||||||||
Total | $ | 3,081,082 | $ | 10,381 | $ | 19,548 | $ | 3,111,011 |
December 31, 2020 | Pass(1) | Special Mention | Substandard | Total Loans | ||||||||||||
Loans & Leases: | ||||||||||||||||
Commercial Real Estate | $ | 946,621 | $ | 7,849 | $ | 4,510 | $ | 958,980 | ||||||||
Agricultural Real Estate | 631,043 | 400 | 11,571 | 643,014 | ||||||||||||
Real Estate Construction | 185,741 | 0 | 0 | 185,741 | ||||||||||||
Residential 1st Mortgages | 298,689 | 0 | 690 | 299,379 | ||||||||||||
Home Equity Lines and Loans | 34,058 | 0 | 181 | 34,239 | ||||||||||||
Agricultural | 263,781 | 96 | 495 | 264,372 | ||||||||||||
Commercial | 373,038 | 1,060 | 718 | 374,816 | ||||||||||||
Consumer & Other | 235,063 | 0 | 466 | 235,529 | ||||||||||||
Leases | 103,522 | 0 | 0 | 103,522 | ||||||||||||
Total | $ | 3,071,556 | $ | 9,405 | $ | 18,631 | $ | 3,099,592 |
March 31, 2020 | Pass(1) | Special Mention | Substandard | Total Loans & Leases | ||||||||||||
Loans & Leases: | ||||||||||||||||
Commercial Real Estate | $ | 854,346 | $ | 6,965 | $ | 0 | $ | 861,311 | ||||||||
Agricultural Real Estate | 580,205 | 1,136 | 12,813 | 594,154 | ||||||||||||
Real Estate Construction | 126,956 | 0 | 0 | 126,956 | ||||||||||||
Residential 1st Mortgages | 256,027 | 0 | 705 | 256,732 | ||||||||||||
Home Equity Lines & Loans | 40,577 | 0 | 170 | 40,747 | ||||||||||||
Agricultural | 263,794 | 0 | 977 | 264,771 | ||||||||||||
Commercial | 400,735 | 2,321 | 1,273 | 404,329 | ||||||||||||
Consumer & Other | 14,392 | 0 | 447 | 14,839 | ||||||||||||
Leases | 106,270 | 0 | 0 | 106,270 | ||||||||||||
Total | $ | 2,643,302 | $ | 10,422 | $ | 16,385 | $ | 2,670,109 |
March 31, 2021 | 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 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,008,032 | $ | 1,008,032 | ||||||||||||||
Agricultural Real Estate | 0 | 0 | 0 | 493 | 493 | 633,751 | 634,244 | |||||||||||||||||||||
Real Estate Construction | 0 | 0 | 0 | 0 | 0 | 208,573 | 208,573 | |||||||||||||||||||||
Residential 1st Mortgages | 0 | 0 | 0 | 0 | 0 | 305,085 | 305,085 | |||||||||||||||||||||
Home Equity Lines & Loans | 0 | 0 | 0 | 0 | 0 | 32,407 | 32,407 | |||||||||||||||||||||
Agricultural | 0 | 73 | 0 | 0 | 73 | 221,079 | 221,152 | |||||||||||||||||||||
Commercial | 0 | 0 | 0 | 0 | 0 | 367,875 | 367,875 | |||||||||||||||||||||
Consumer & Other | 253 | 0 | 0 | 0 | 253 | 231,956 | 232,209 | |||||||||||||||||||||
Leases | 0 | 0 | 0 | 0 | 0 | 101,434 | 101,434 | |||||||||||||||||||||
Total | $ | 253 | $ | 73 | $ | 0 | $ | 493 | $ | 819 | $ | 3,110,192 | $ | 3,111,011 |
December 31, 2020 | 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 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 958,980 | $ | 958,980 | ||||||||||||||
Agricultural Real Estate | 0 | 0 | 0 | 495 | 495 | 642,519 | 643,014 | |||||||||||||||||||||
Real Estate Construction | 0 | 0 | 0 | 0 | 0 | 185,741 | 185,741 | |||||||||||||||||||||
Residential 1st Mortgages | 0 | 0 | 0 | 0 | 0 | 299,379 | 299,379 | |||||||||||||||||||||
Home Equity Lines and Loans | 0 | 0 | 0 | 0 | 0 | 34,239 | 34,239 | |||||||||||||||||||||
Agricultural | 0 | 0 | 0 | 0 | 0 | 264,372 | 264,372 | |||||||||||||||||||||
Commercial | 0 | 0 | 0 | 0 | 0 | 374,816 | 374,816 | |||||||||||||||||||||
Consumer & Other | 11 | 0 | 0 | 0 | 11 | 235,518 | 235,529 | |||||||||||||||||||||
Leases | 0 | 0 | 0 | 0 | 0 | 103,522 | 103,522 | |||||||||||||||||||||
Total | $ | 11 | $ | 0 | $ | 0 | $ | 495 | $ | 506 | $ | 3,099,086 | $ | 3,099,592 |
March 31, 2020 | 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 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 861,311 | $ | 861,311 | ||||||||||||||
Agricultural Real Estate | 0 | 0 | 0 | 0 | 0 | 594,154 | 594,154 | |||||||||||||||||||||
Real Estate Construction | 0 | 0 | 0 | 0 | 0 | 126,956 | 126,956 | |||||||||||||||||||||
Residential 1st Mortgages | 0 | 0 | 0 | 0 | 0 | 256,732 | 256,732 | |||||||||||||||||||||
Home Equity Lines & Loans | 226 | 0 | 0 | 0 | 226 | 40,521 | 40,747 | |||||||||||||||||||||
Agricultural | 0 | 0 | 0 | 549 | 549 | 264,222 | 264,771 | |||||||||||||||||||||
Commercial | 250 | 0 | 0 | 0 | 250 | 404,079 | 404,329 | |||||||||||||||||||||
Consumer & Other | 7 | 0 | 0 | 0 | 7 | 14,832 | 14,839 | |||||||||||||||||||||
Leases | 0 | 0 | 0 | 0 | 0 | 106,270 | 106,270 | |||||||||||||||||||||
Total | $ | 483 | $ | 0 | $ | 0 | $ | 549 | $ | 1,032 | $ | 2,669,077 | $ | 2,670,109 |
March 31, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- accrual | Total Past Due | Total | ||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,162,528 | $ | 1,251 | $ | 0 | $ | 437 | $ | 1,688 | $ | 1,164,216 | ||||||||||||
Agricultural | 695,565 | 0 | 0 | 0 | 0 | 695,565 | ||||||||||||||||||
Residential and home equity | 358,849 | 365 | 0 | 0 | 365 | 359,214 | ||||||||||||||||||
Construction | 204,794 | 0 | 0 | 0 | 0 | 204,794 | ||||||||||||||||||
Total real estate | 2,421,736 | 1,616 | 0 | 437 | 2,053 | 2,423,789 | ||||||||||||||||||
Commercial & Industrial | 437,199 | 0 | 0 | 0 | 0 | 437,199 | ||||||||||||||||||
Agricultural | 250,669 | 800 | 0 | 0 | 800 | 251,469 | ||||||||||||||||||
Commercial leases | 91,907 | 0 | 0 | 0 | 0 | 91,907 | ||||||||||||||||||
Consumer and other | 33,208 | 47 | 0 | 0 | 47 | 33,255 | ||||||||||||||||||
Total loans and leases, net | $ | 3,234,719 | $ | 2,463 | $ | 0 | $ | 437 | $ | 2,900 | $ | 3,237,619 |
December 31, 2021 | ||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- ccrual | Total Past Due | Total | ||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,156,879 | $ | 459 | $ | 0 | $ | 0 | $ | 459 | $ | 1,157,338 | ||||||||||||
Agricultural | 672,812 | 0 | 0 | 18 | 18 | 672,830 | ||||||||||||||||||
Residential and home equity | 350,492 | 89 | 0 | 0 | 89 | 350,581 | ||||||||||||||||||
Construction | 177,163 | 0 | 0 | 0 | 0 | 177,163 | ||||||||||||||||||
Total real estate | 2,357,346 | 548 | 0 | 18 | 566 | 2,357,912 | ||||||||||||||||||
Commercial & Industrial | 427,799 | 0 | 0 | 0 | 0 | 427,799 | ||||||||||||||||||
Agricultural | 276,186 | 0 | 0 | 498 | 498 | 276,684 | ||||||||||||||||||
Commercial leases | 96,415 | 0 | 0 | 0 | 0 | 96,415 | ||||||||||||||||||
Consumer and other | 78,363 | 4 | 0 | 0 | 4 | 78,367 | ||||||||||||||||||
Total loans and leases, net | $ | 3,236,109 | $ | 552 | $ | 0 | $ | 516 | $ | 1,068 | $ | 3,237,177 |
March 31, 2021 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate | $ | 0 | $ | 0 | $ | - | $ | 42 | $ | 0 | ||||||||||
Agricultural Real Estate | 5,629 | 5,629 | - | 5,629 | 149 | |||||||||||||||
Agricultural | 493 | 536 | - | 248 | 0 | |||||||||||||||
$ | 6,122 | $ | 6,165 | $ | - | $ | 5,919 | $ | 149 | |||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate | $ | 83 | $ | 83 | $ | 1 | $ | 42 | $ | 3 | ||||||||||
Residential 1st Mortgages | 1,661 | 1,884 | 83 | 1,666 | 20 | |||||||||||||||
Home Equity Lines & Loans | 63 | 74 | 3 | 64 | 1 | |||||||||||||||
Agricultural | 0 | 0 | 0 | 246 | 0 | |||||||||||||||
Commercial | 228 | 228 | 15 | 231 | 4 | |||||||||||||||
Consumer & Other | 186 | 187 | 48 | 188 | 4 | |||||||||||||||
$ | 2,221 | $ | 2,456 | $ | 150 | $ | 2,437 | $ | 32 | |||||||||||
Total | $ | 8,343 | $ | 8,621 | $ | 150 | $ | 8,356 | $ | 181 |
December 31, 2020 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate | $ | 84 | $ | 84 | $ | - | $ | 764 | $ | 35 | ||||||||||
Agricultural Real Estate | 5,629 | 5,629 | - | 5,629 | 352 | |||||||||||||||
Agricultural | 3 | 3 | - | 2 | 0 | |||||||||||||||
Commercial | 0 | 0 | - | 377 | 16 | |||||||||||||||
$ | 5,716 | $ | 5,716 | $ | - | $ | 6,772 | $ | 403 | |||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate | $ | 0 | $ | 0 | $ | 0 | $ | 21 | $ | 1 | ||||||||||
Agricultural Real Estate | 0 | 0 | 0 | 137 | 0 | |||||||||||||||
Residential 1st Mortgages | 1,671 | 1,895 | 84 | 1,652 | 76 | |||||||||||||||
Home Equity Lines and Loans | 64 | 75 | 3 | 66 | 4 | |||||||||||||||
Agricultural | 492 | 534 | 92 | 410 | 59 | |||||||||||||||
Commercial | 234 | 234 | 13 | 123 | 18 | |||||||||||||||
Consumer & Other | 190 | 191 | 56 | 194 | 13 | |||||||||||||||
$ | 2,651 | $ | 2,929 | $ | 248 | $ | 2,603 | $ | 171 | |||||||||||
Total | $ | 8,367 | $ | 8,645 | $ | 248 | $ | 9,375 | $ | 574 |
March 31, 2020 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial Real Estate | $ | 2,888 | $ | 2,888 | $ | - | $ | 1,487 | $ | 29 | ||||||||||
Agricultural Real Estate | 5,629 | 5,629 | - | 5,642 | 89 | |||||||||||||||
Commercial | 1,507 | 1,507 | - | 754 | 15 | |||||||||||||||
$ | 10,024 | $ | 10,024 | $ | - | $ | 7,883 | $ | 133 | |||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial Real Estate | $ | 0 | $ | 0 | $ | 0 | $ | 1,411 | $ | 0 | ||||||||||
Agricultural Real Estate | 549 | 549 | 214 | 275 | 0 | |||||||||||||||
Residential 1st Mortgages | 1,550 | 1,761 | 77 | 1,556 | 19 | |||||||||||||||
Home Equity Lines & Loans | 67 | 78 | 3 | 68 | 1 | |||||||||||||||
Agricultural | 184 | 184 | 184 | 186 | 2 | |||||||||||||||
Commercial | 11 | 11 | 11 | 770 | 0 | |||||||||||||||
Consumer & Other | 196 | 196 | 61 | 198 | 4 | |||||||||||||||
$ | 2,557 | $ | 2,779 | $ | 550 | $ | 4,464 | $ | 26 | |||||||||||
Total | $ | 12,581 | $ | 12,803 | $ | 550 | $ | 12,347 | $ | 159 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Non-accrual loans and leases: | ||||||||
Non-accrual loans and leases, not TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 437 | $ | 0 | ||||
Agricultural | 0 | 18 | ||||||
Residential and home equity | 0 | 0 | ||||||
Construction | 0 | 0 | ||||||
Total real estate | 437 | 18 | ||||||
Commercial & Industrial | 0 | 0 | ||||||
Agricultural | 0 | 0 | ||||||
Commercial leases | 0 | 0 | ||||||
Consumer and other | 0 | 0 | ||||||
Subtotal | 437 | 18 | ||||||
Non-accrual loans and leases, are TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 0 | $ | 0 | ||||
Agricultural | 0 | 0 | ||||||
Residential and home equity | 0 | 0 | ||||||
Construction | 0 | 0 | ||||||
Total real estate | 0 | 0 | ||||||
Commercial & Industrial | 0 | 0 | ||||||
Agricultural | 0 | 498 | ||||||
Commercial leases | 0 | 0 | ||||||
Consumer and other | 0 | 0 | ||||||
Subtotal | 0 | 498 | ||||||
Total non-accrual loans and leases | $ | 437 | $ | 516 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Troubled debt restructured loans and leases: | ||||||||
Accruing TDR loans and leases | ||||||||
Real estate: | ||||||||
Commercial | $ | 0 | $ | 41 | ||||
Agricultural | 0 | 0 | ||||||
Residential and home equity | 1,347 | 1,522 | ||||||
Construction | 0 | 0 | ||||||
Total real estate | 1,347 | 1,563 | ||||||
Commercial & Industrial | 255 | 260 | ||||||
Agricultural | 0 | 0 | ||||||
Commercial leases | 0 | 0 | ||||||
Consumer and other | 1 | 1 | ||||||
Subtotal | 1,603 | 1,824 | ||||||
Non-accruing TDR loans and leases | ||||||||
Real estate: | ||||||||
Commercial | 0 | 0 | ||||||
Agricultural | 0 | 0 | ||||||
Residential and home equity | 0 | 0 | ||||||
Construction | 0 | 0 | ||||||
Total real estate | 0 | 0 | ||||||
Commercial & Industrial | 0 | 0 | ||||||
Agricultural | 0 | 498 | ||||||
Commercial leases | 0 | 0 | ||||||
Consumer and other | 0 | 0 | ||||||
Subtotal | 0 | 498 | ||||||
Total TDR loans and leases | $ | 1,603 | $ | 2,322 |
March 31, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | # of Accruing TDR | $ of Accruing TDR | # of Non- Accruing TDR | $ of Non- Accruing TDR | # of Total TDR | $ of Total TDR | ||||||||||||||||||
Loan and lease TDRs | ||||||||||||||||||||||||
2022 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | |||||||||||||||
2021 | 1 | 48 | 0 | 0 | 1 | 48 | ||||||||||||||||||
2020 | 5 | 468 | 0 | 0 | 5 | 468 | ||||||||||||||||||
2019 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Thereafter | 9 | 1,087 | 0 | 0 | 9 | 1,087 | ||||||||||||||||||
Total | 15 | $ | 1,603 | 0 | $ | 0 | 15 | $ | 1,603 |
March 31, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | ||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,153,584 | $ | 6,878 | $ | 3,754 | $ | 0 | $ | 1,164,216 | $ | 17,920 | ||||||||||||
Agricultural | 683,415 | 5,996 | 6,154 | 0 | 695,565 | 14,591 | ||||||||||||||||||
Residential and home equity | 358,847 | 0 | 367 | 0 | 359,214 | 6,759 | ||||||||||||||||||
Construction | 204,794 | 0 | 0 | 0 | 204,794 | 3,777 | ||||||||||||||||||
Total real estate | 2,400,640 | 12,874 | 10,275 | 0 | 2,423,789 | 43,047 | ||||||||||||||||||
Commercial & Industrial | 427,109 | 9,437 | 653 | 0 | 437,199 | 10,361 | ||||||||||||||||||
Agricultural | 249,972 | 1,477 | 20 | 0 | 251,469 | 5,737 | ||||||||||||||||||
Commercial leases | 91,772 | 135 | 0 | 0 | 91,907 | 1,466 | ||||||||||||||||||
Consumer and other | 33,081 | 0 | 174 | 0 | 33,255 | 421 | ||||||||||||||||||
Total loans and leases, net | $ | 3,202,574 | $ | 23,923 | $ | 11,122 | $ | 0 | $ | 3,237,619 | $ | 61,032 |
December 31, 2021 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | ||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,142,175 | $ | 6,903 | $ | 8,260 | $ | 0 | $ | 1,157,338 | $ | 28,536 | ||||||||||||
Agricultural | 663,157 | 3,292 | 6,381 | 0 | 672,830 | 9,613 | ||||||||||||||||||
Residential and home equity | 350,148 | 0 | 433 | 0 | 350,581 | 2,847 | ||||||||||||||||||
Construction | 177,163 | 0 | 0 | 0 | 177,163 | 1,456 | ||||||||||||||||||
Total real estate | 2,332,643 | 10,195 | 15,074 | 0 | 2,357,912 | 42,452 | ||||||||||||||||||
Commercial & Industrial | 417,806 | 9,321 | 672 | 0 | 427,799 | 11,489 | ||||||||||||||||||
Agricultural | 275,206 | 958 | 520 | 0 | 276,684 | 5,465 | ||||||||||||||||||
Commercial leases | 96,415 | 0 | 0 | 0 | 96,415 | 938 | ||||||||||||||||||
Consumer and other | 78,181 | 0 | 186 | 0 | 78,367 | 663 | ||||||||||||||||||
Total loans and leases, net | $ | 3,200,251 | $ | 20,474 | $ | 16,452 | $ | 0 | $ | 3,237,177 | $ | 61,007 |
March 31, 2022 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost | Total | ||||||||||||||||||||||||
Net loans and leases held-for-investment | ||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Pass | $ | 25,293 | $ | 247,149 | $ | 164,009 | $ | 82,890 | $ | 95,039 | $ | 254,266 | $ | 284,938 | $ | 1,153,584 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 3,888 | 840 | 2,150 | 6,878 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 3,104 | 650 | 3,754 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total commercial | $ | 25,293 | $ | 247,149 | $ | 164,009 | $ | 82,890 | $ | 98,927 | $ | 258,210 | $ | 287,738 | $ | 1,164,216 | ||||||||||||||||
Agricultural real estate | ||||||||||||||||||||||||||||||||
Pass | $ | 12,121 | $ | 43,482 | $ | 58,501 | $ | 15,393 | $ | 56,374 | $ | 159,386 | $ | 338,158 | $ | 683,415 | ||||||||||||||||
Special mention | 0 | 0 | 2,382 | 2,636 | 143 | 0 | 835 | 5,996 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 118 | 6,036 | 0 | 6,154 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total agricultural real estate | $ | 12,121 | $ | 43,482 | $ | 60,883 | $ | 18,029 | $ | 56,635 | $ | 165,422 | $ | 338,993 | $ | 695,565 | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Pass | $ | 21,332 | $ | 101,603 | $ | 93,842 | $ | 16,431 | $ | 7,719 | $ | 88,166 | $ | 29,754 | $ | 358,847 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 220 | 147 | 367 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total residential and home equity | $ | 21,332 | $ | 101,603 | $ | 93,842 | $ | 16,431 | $ | 7,719 | $ | 88,386 | $ | 29,901 | $ | 359,214 | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Pass | $ | 0 | $ | 0 | $ | 0 | $ | 2,275 | $ | 0 | $ | 122 | $ | 202,397 | $ | 204,794 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total construction | $ | 0 | $ | 0 | $ | 0 | $ | 2,275 | $ | 0 | $ | 122 | $ | 202,397 | $ | 204,794 | ||||||||||||||||
Total real estate | $ | 58,746 | $ | 392,234 | $ | 318,734 | $ | 119,625 | $ | 163,281 | $ | 512,140 | $ | 859,029 | $ | 2,423,789 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Pass | $ | 4,368 | $ | 45,633 | $ | 16,791 | $ | 15,010 | $ | 11,515 | $ | 9,983 | $ | 323,809 | $ | 427,109 | ||||||||||||||||
Special mention | 0 | 82 | 0 | 0 | 0 | 4 | 9,351 | 9,437 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 38 | 31 | 584 | 653 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total commercial & industrial | $ | 4,368 | $ | 45,715 | $ | 16,791 | $ | 15,010 | $ | 11,553 | $ | 10,018 | $ | 333,744 | $ | 437,199 | ||||||||||||||||
Agriculture | ||||||||||||||||||||||||||||||||
Pass | $ | 1,236 | $ | 4,736 | $ | 1,353 | $ | 1,624 | $ | 834 | $ | 2,358 | $ | 237,831 | $ | 249,972 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 98 | 1,379 | 1,477 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 15 | 5 | 0 | 0 | 20 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total Agriculture | $ | 1,236 | $ | 4,736 | $ | 1,353 | $ | 1,639 | $ | 839 | $ | 2,456 | $ | 239,210 | $ | 251,469 | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Pass | $ | 3,635 | $ | 14,816 | $ | 14,904 | $ | 9,041 | $ | 22,133 | $ | 27,243 | $ | 0 | $ | 91,772 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 135 | 0 | 0 | 0 | 135 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total commercial leases | $ | 3,635 | $ | 14,816 | $ | 14,904 | $ | 9,176 | $ | 22,133 | $ | 27,243 | $ | 0 | $ | 91,907 | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Pass | $ | 612 | $ | 26,679 | $ | 967 | $ | 425 | $ | 656 | $ | 2,870 | $ | 872 | $ | 33,081 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 47 | 127 | 174 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total consumer and other | $ | 612 | $ | 26,679 | $ | 967 | $ | 425 | $ | 656 | $ | 2,917 | $ | 999 | $ | 33,255 | ||||||||||||||||
Total net loans and leases | $ | 68,597 | $ | 484,180 | $ | 352,749 | $ | 145,875 | $ | 198,462 | $ | 554,774 | $ | 1,432,982 | $ | 3,237,619 |
December 31, 2020 | ||||||||||||
Troubled Debt Restructurings | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||
Residential 1st Mortgages | 2 | $ | 156 | $ | 156 | |||||||
Agricultural | 3 | 495 | 495 | |||||||||
Commercial | 1 | 224 | 224 | |||||||||
Total | 6 | $ | 875 | $ | 875 |
March 31, 2022 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 1 | $ | 0 | $ | 1 | ||||||
Agricultural | 5,560 | 0 | 5,560 | |||||||||
Residential and home equity | 235 | 0 | 235 | |||||||||
Construction | 0 | 0 | 0 | |||||||||
Total real estate | 5,796 | 0 | 5,796 | |||||||||
Commercial & Industrial | 0 | 0 | 0 | |||||||||
Agricultural | 0 | 0 | 0 | |||||||||
Commercial leases | 0 | 0 | 0 | |||||||||
Consumer and other | 0 | 169 | 169 | |||||||||
Total gross loans and leases | $ | 5,796 | $ | 169 | $ | 5,965 |
December 31, 2021 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 5 | $ | 0 | $ | 5 | ||||||
Agricultural | 5,587 | 0 | 5,587 | |||||||||
Residential and home equity | 330 | 0 | 330 | |||||||||
Construction | 0 | 0 | 0 | |||||||||
Total real estate | 5,922 | 0 | 5,922 | |||||||||
Commercial & Industrial | 0 | 0 | 0 | |||||||||
Agricultural | 0 | 0 | 0 | |||||||||
Commercial leases | 0 | 0 | 0 | |||||||||
Consumer and other | 0 | 173 | 173 | |||||||||
Total gross loans and leases | $ | 5,922 | $ | 173 | $ | 6,095 |
For the Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | |||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Balance at beginning of period, prior to adoption of ASC 326 | $ | 38,149 | $ | 1,456 | $ | 2,847 | $ | 16,954 | $ | 938 | $ | 663 | $ | 61,007 | ||||||||||||||
Impact of adopting ASC 326 | (6,190 | ) | 1,855 | 3,032 | 826 | 629 | (152 | ) | 0 | |||||||||||||||||||
Provision / (recapture) for credit losses | 552 | 466 | 866 | (1,700 | ) | (101 | ) | (83 | ) | 0 | ||||||||||||||||||
Charge-offs | 0 | 0 | 0 | 0 | 0 | (9 | ) | (9 | ) | |||||||||||||||||||
Recoveries | 0 | 0 | 14 | 18 | 0 | 2 | 34 | |||||||||||||||||||||
Net (charge-offs) / recoveries | 0 | 0 | 14 | 18 | 0 | (7 | ) | 25 | ||||||||||||||||||||
Balance at end of period | $ | 32,511 | $ | 3,777 | $ | 6,759 | $ | 16,098 | $ | 1,466 | $ | 421 | $ | 61,032 |
For the Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | |||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 36,312 | $ | 1,643 | $ | 2,984 | $ | 14,775 | $ | 1,731 | $ | 1,417 | $ | 58,862 | ||||||||||||||
Provision / (recapture) for credit losses | 1,802 | 4 | (135 | ) | (584 | ) | (57 | ) | 220 | 1,250 | ||||||||||||||||||
Charge-offs | 0 | 0 | 0 | 0 | 0 | (8 | ) | (8 | ) | |||||||||||||||||||
Recoveries | 0 | 0 | 32 | 32 | 0 | 7 | 71 | |||||||||||||||||||||
Net (charge-offs) / recoveries | 0 | 0 | 32 | 32 | 0 | (1 | ) | 63 | ||||||||||||||||||||
Balance at end of period | $ | 38,114 | $ | 1,647 | $ | 2,881 | $ | 14,223 | $ | 1,674 | $ | 1,636 | $ | 60,175 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Certificate of deposits: | ||||||||
Certificates of deposits less than or equal to $250,000 | 221,904 | 223,620 | ||||||
Certificates of deposits greater than $250,000 | 168,876 | 168,865 | ||||||
Total certificates of deposits | 390,780 | 392,485 |
(Dollars in thousands) | Amount | |||
2022 | $ | 291,366 | ||
2023 | 89,678 | |||
2024 | 5,633 | |||
2025 | 1,818 | |||
2026 and beyond | 2,285 | |||
Total time deposits | $ | 390,780 |
March 31, 2022 | ||||||||||||||||||||||||
Actual | Minimum Capital Requirement | Well Capitalized Requirment | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 463,607 | 11.63 | % | $ | 179,354 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 473,607 | 11.88 | % | 239,139 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 523,580 | 13.14 | % | 318,851 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 473,607 | 8.45 | % | 224,315 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 472,965 | 11.87 | % | $ | 179,339 | 4.50 | % | $ | 259,046 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 472,965 | 11.87 | % | 239,119 | 6.00 | % | 318,826 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 522,934 | 13.12 | % | 318,826 | 8.00 | % | 398,532 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 472,965 | 8.94 | % | 211,642 | 4.00 | % | 264,552 | 5.00 | % |
December 31, 2021 | ||||||||||||||||||||||||
Actual | Minimum Capital Requirement | Well Capitalized Requirment | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 450,687 | 11.68 | % | $ | 173,674 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 460,687 | 11.94 | % | 231,566 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 509,091 | 13.19 | % | 308,755 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 460,687 | 8.92 | % | 206,606 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 459,813 | 11.91 | % | $ | 173,664 | 4.50 | % | $ | 250,847 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 459,813 | 11.91 | % | 231,551 | 6.00 | % | 308,735 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 508,215 | 13.17 | % | 308,735 | 8.00 | % | 385,919 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 459,813 | 8.91 | % | 206,426 | 4.00 | % | 258,033 | 5.00 | % |
Three Months Ended March 31, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | ||||||
Numerator | ||||||||
Net income | $ | 17,058 | $ | 16,713 | ||||
Denominator | ||||||||
Weighted average number of common shares outstanding | 786,096 | 789,646 | ||||||
Weighted average number of dilutive shares outstanding | 786,096 | 789,646 | ||||||
Basic earnings per common share | $ | 21.70 | $ | 21.17 | ||||
Diluted earning per common share | $ | 21.70 | $ | 21.17 |
Fair Value Measurements At March 31, 2021, Using | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets | Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available-for-Sale Securities: | ||||||||||||||||
US Treasury Notes | $ | 15,233 | $ | 15,233 | $ | 0 | $ | 0 | ||||||||
US Government Agency SBA | 7,809 | 0 | 7,809 | 0 | ||||||||||||
Mortgage Backed Securities | 492,511 | 0 | 492,511 | 0 | ||||||||||||
Corporate Securities | 44,775 | 0 | 44,775 | 0 | ||||||||||||
Other | 645 | 335 | 310 | 0 | ||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis | $ | 560,973 | $ | 15,568 | $ | 545,405 | $ | 0 |
March 31, 2022 | Fair Value | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 841,086 | $ | 841,086 | $ | 0 | $ | 0 | $ | 841,086 | ||||||||||
Investment securities available-for-sale | 251,375 | 9,996 | 241,379 | 0 | 251,375 | |||||||||||||||
Investment securities held-to-maturity | 876,257 | 0 | 771,971 | 43,732 | 815,703 | |||||||||||||||
Non-marketable securities | 15,549 | 0 | 0 | 15,549 | 15,549 | |||||||||||||||
Loans and leases, net | 3,176,587 | 0 | 0 | 3,184,796 | 3,184,796 | |||||||||||||||
Bank-owned life insurance | 71,953 | 71,953 | 0 | 0 | 71,953 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Total deposits | 4,837,439 | $ | 4,446,659 | $ | 0 | $ | 387,625 | $ | 4,834,284 | |||||||||||
Subordinated debentures | 10,310 | 0 | 9,766 | 0 | 9,766 |
Fair Value Measurements At December 31, 2020, Using | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets | Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available-for-Sale Securities: | ||||||||||||||||
US Treasury Notes | $ | 15,288 | $ | 15,288 | $ | 0 | $ | 0 | ||||||||
US Government Agency SBA | 8,160 | 0 | 8,160 | 0 | ||||||||||||
Mortgage Backed Securities | 737,873 | 0 | 737,873 | 0 | ||||||||||||
Corporate Securities | 45,919 | 0 | 45,919 | 0 | ||||||||||||
Other | 492 | 182 | 310 | 0 | ||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis | $ | 807,732 | $ | 15,470 | $ | 792,262 | $ | 0 |
December 31, 2021 | Fair Value | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 715,460 | $ | 715,460 | $ | 0 | $ | 0 | $ | 715,460 | ||||||||||
Investment securities available-for-sale | 270,454 | 10,214 | 260,240 | 0 | 270,454 | |||||||||||||||
Investment securities held-to-maturity | 737,052 | 0 | 681,588 | 44,446 | 726,034 | |||||||||||||||
Non-marketable securities | 15,549 | - | 0 | 15,549 | 15,549 | |||||||||||||||
Loans and leases, net | 3,176,170 | 0 | 0 | 3,179,857 | 3,179,857 | |||||||||||||||
Bank-owned life insurance | 71,411 | 71,411 | 0 | 0 | 71,411 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Total deposits | $ | 4,640,152 | $ | 4,247,666 | $ | 0 | $ | 391,732 | $ | 4,639,398 | ||||||||||
Subordinated debentures | 10,310 | 0 | 6,890 | 0 | 6,890 |
Fair Value Measurements At March 31, 2020, Using | ||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets | Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available-for-Sale Securities: | ||||||||||||||||
US Treasury Notes | $ | 15,399 | $ | 15,399 | $ | 0 | $ | 0 | ||||||||
US Government Agency SBA | 9,954 | 0 | 9,954 | 0 | ||||||||||||
Mortgage Backed Securities | 501,376 | 0 | 501,376 | 0 | ||||||||||||
Other | 5,517 | 5,207 | 310 | 0 | ||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis | $ | 532,246 | $ | 20,606 | $ | 511,640 | $ | 0 |
Fair Value Measurements At March 31, 2021, 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 | $ | 82 | $ | 0 | $ | 0 | $ | 82 | ||||||||
Residential 1st Mortgage | 1,572 | 0 | 0 | 1,572 | ||||||||||||
Home Equity Lines and Loans | 60 | 0 | 0 | 60 | ||||||||||||
Commercial | 212 | 0 | 0 | 212 | ||||||||||||
Consumer | 138 | 0 | 0 | 138 | ||||||||||||
Total Impaired Loans | 2,064 | 0 | 0 | 2,064 | ||||||||||||
Other Real Estate: | ||||||||||||||||
Real Estate Construction | 873 | 0 | 0 | 873 | ||||||||||||
Total Other Real Estate | 873 | 0 | 0 | 873 | ||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis | $ | 2,937 | $ | 0 | $ | 0 | $ | 2,937 |
March 31, 2022 | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Fair valued on a recurring basis: | ||||||||||||||||||||
Investment securities available-for-sale | ||||||||||||||||||||
U.S. Treasury notes | $ | 9,996 | $ | 9,996 | $ | 0 | $ | 0 | $ | 9,996 | ||||||||||
U.S. Government-sponsored securities | 5,789 | 0 | 5,789 | 0 | 5,789 | |||||||||||||||
Mortgage-backed securities | 223,901 | 0 | 223,901 | 0 | 223,901 | |||||||||||||||
Collateralized mortgage obligations | 1,544 | 0 | 1,544 | 0 | 1,544 | |||||||||||||||
Corporate securities | 9,835 | 0 | 9,835 | 0 | 9,835 | |||||||||||||||
Other | 310 | 0 | 310 | 0 | 310 | |||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||
Other real estate | 873 | 0 | 0 | 873 | 873 |
December 31, 2021 | Fair Value Measurements | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Fair valued on a recurring basis: | ||||||||||||||||||||
Investment securities available-for-sale | ||||||||||||||||||||
U.S. Treasury notes | $ | 10,089 | $ | 10,089 | $ | 0 | $ | 0 | $ | 10,089 | ||||||||||
U.S. Government-sponsored securities | 6,374 | 0 | 6,374 | 0 | 6,374 | |||||||||||||||
Mortgage-backed securities | 251,120 | 0 | 251,120 | 0 | 251,120 | |||||||||||||||
Collateralized mortgage obligations | 2,436 | 0 | 2,436 | 0 | 2,436 | |||||||||||||||
Other | 435 | 125 | 310 | 0 | 435 | |||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||
Individually evaluated loans | $ | 2,562 | $ | 0 | $ | 0 | $ | 2,562 | $ | 2,562 | ||||||||||
Other real estate | 873 | 0 | 0 | 873 | 873 |
Fair Value Measurements At December 31, 2020, Using | ||||||||||||||||
(in thousands) | Fair Value Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Impaired Loans: | ||||||||||||||||
Residential 1st Mortgage | $ | 1,584 | $ | 0 | $ | 0 | $ | 1,584 | ||||||||
Home Equity Lines and Loans | 61 | 0 | 0 | 61 | ||||||||||||
Agricultural | 400 | 0 | 0 | 400 | ||||||||||||
Commercial | 213 | 0 | 0 | 213 | ||||||||||||
Consumer | 138 | 0 | 0 | 138 | ||||||||||||
Total Impaired Loans | 2,396 | 0 | 0 | 2,396 | ||||||||||||
Other Real Estate: | ||||||||||||||||
Real Estate Construction | 873 | 0 | 0 | 873 | ||||||||||||
Total Other Real Estate | 873 | 0 | 0 | 873 | ||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis | $ | 3,269 | $ | 0 | $ | 0 | $ | 3,269 |
Fair Value Measurements At March 31, 2020, Using | ||||||||||||||||
(in thousands) | Fair Value Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Impaired Loans | ||||||||||||||||
Residential 1st Mortgage | $ | 1,470 | $ | 0 | $ | 0 | $ | 1,470 | ||||||||
Home Equity Lines and Loans | 64 | 0 | 0 | 64 | ||||||||||||
Consumer | 135 | 0 | 0 | 135 | ||||||||||||
Total Impaired Loans | 1,669 | 0 | 0 | 1,669 | ||||||||||||
Other Real Estate | ||||||||||||||||
Real Estate Construction | 873 | 0 | 0 | 873 | ||||||||||||
Total Other Real Estate | 873 | 0 | 0 | 873 | ||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis | $ | 2,542 | $ | 0 | $ | 0 | $ | 2,542 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Commitments to extend credit, including unsecured commitments of $20,907 and $21,036 as of March 31, 2022 and December 31, 2021, respectively | $ | 987,423 | $ | 937,009 | ||||
Stand-by letters of credit, including unsecured commitments of $8,361 and $9,091 as of March 31, 2022 and December 31, 2021, respectively | 16,250 | 17,880 | ||||||
Performance guarantees under interest rate swap contracts entered into with our clients and third-parties | 191 | 1,433 |
March 31, 2021 (in thousands) | Fair Value | Valuation Technique | Unobservable Inputs | Range, Weighted Avg. | ||||||
Impaired Loans: | ||||||||||
Commercial Real Estate | $ | 82 | Income Approach | Capitalization Rate | 7%, 7 | % | ||||
Residential 1st Mortgage | $ | 1,572 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 0.71% - 4.10%, 2.55 | % | ||||
Home Equity Lines and Loans | $ | 60 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1.1% - 1.3%, 1.23 | % | ||||
Commercial | $ | 212 | Income Approach | Capitalization Rate | 10%, 10 | % | ||||
Consumer | $ | 138 | Income Approach | Adjustment for Difference Between Comparable Sales | 10%, 10 | % | ||||
Other Real Estate: | ||||||||||
Real Estate Construction | $ | 873 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 10%, 10 | % |
December 31, 2020 (in thousands) | Fair Value | Valuation Technique | Unobservable Inputs | Range, Weighted Avg. | ||||||
Impaired Loans: | ||||||||||
Residential 1st Mortgage | $ | 1,584 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 0.72% - 4.13%, 2.57 | % | ||||
Home Equity Lines and Loans | $ | 61 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1.1% - 1.4%, 1.25 | % | ||||
Agricultural | $ | 400 | Income Approach | Capitalization Rate | 10%, 10 | % | ||||
Commercial | $ | 213 | Income Approach | Capitalization Rate | 10%, 10 | % | ||||
Consumer | $ | 138 | Income Approach | Adjustment for Difference Between Comparable Sales | 10%, 10 | % | ||||
Other Real Estate: | ||||||||||
Real Estate Construction | $ | 873 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 10%, 10 | % |
March 31, 2020 (in thousands) | Fair Value | Valuation Technique | Unobservable Inputs | Range, Weighted Avg. | ||||||
Impaired Loans: | ||||||||||
Residential 1st Mortgage | $ | 1,470 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1% - 4%, 2.84 | % | ||||
Home Equity Lines and Loans | $ | 64 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1% - 2%, 1.07 | % | ||||
Consumer | $ | 135 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 4%, 4 | % | ||||
Other Real Estate: | ||||||||||
Real Estate Construction | $ | 873 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 10%, 10 | % |
Fair Value of Financial Instruments Using | ||||||||||||||||||||
March 31, 2021 (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 | $ | 493,407 | $ | 493,407 | $ | 0 | $ | 0 | $ | 493,407 | ||||||||||
Investment Securities Available-for-Sale | 560,973 | 15,568 | 545,405 | 0 | 560,973 | |||||||||||||||
Investment Securities Held-to-Maturity | 385,054 | 0 | 329,007 | 45,820 | 374,827 | |||||||||||||||
Loans & Leases, Net | 3,050,836 | 0 | 0 | 3,061,994 | 3,061,994 | |||||||||||||||
Accrued Interest Receivable | 15,220 | 0 | 15,220 | 0 | 15,220 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 4,241,214 | 3,824,638 | 0 | 417,280 | 4,241,918 | |||||||||||||||
Subordinated Debentures | 10,310 | 0 | 6,870 | 0 | 6,870 | |||||||||||||||
Accrued Interest Payable | 757 | 0 | 757 | 0 | 757 |
Fair Value of Financial Instruments Using | ||||||||||||||||||||
December 31, 2020 (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 | $ | 383,837 | $ | 383,837 | $ | 0 | $ | 0 | $ | 383,837 | ||||||||||
Investment Securities Available-for-Sale | 807,732 | 15,470 | 792,262 | 0 | 807,732 | |||||||||||||||
Investment Securities Held-to-Maturity | 68,933 | 0 | 26,262 | 43,787 | 70,049 | |||||||||||||||
Loans & Leases, Net | 3,040,730 | 0 | 0 | 3,045,911 | 3,045,911 | |||||||||||||||
Accrued Interest Receivable | 20,333 | 0 | 20,333 | 0 | 20,333 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 4,060,267 | 3,638,400 | 0 | 422,840 | 4,061,240 | |||||||||||||||
Subordinated Debentures | 10,310 | 0 | 6,888 | 0 | 6,888 | |||||||||||||||
Accrued Interest Payable | 1,383 | 0 | 1,383 | 0 | 1,383 |
Fair Value of Financial Instruments Using | ||||||||||||||||||||
March 31, 2020 (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 | $ | 282,960 | $ | 282,960 | $ | 0 | $ | 0 | $ | 282,960 | ||||||||||
Investment Securities Available-for-Sale | 532,246 | 20,606 | 511,640 | 0 | 532,246 | |||||||||||||||
Investment Securities Held-to-Maturity | 58,701 | 0 | 29,296 | 30,207 | 59,503 | |||||||||||||||
Loans & Leases, Net | 2,615,285 | 0 | 0 | 2,605,120 | 2,605,120 | |||||||||||||||
Accrued Interest Receivable | 12,541 | 0 | 12,541 | 0 | 12,541 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 3,255,273 | 2,733,525 | 0 | 524,013 | 3,257,538 | |||||||||||||||
Subordinated Debentures | 10,310 | 0 | 7,415 | 0 | 7,415 | |||||||||||||||
Accrued Interest Payable | 2,430 | 0 | 2,430 | 0 | 2,430 |
(net income in thousands) | 2021 | 2020 | ||||||
Net Income | $ | 16,713 | $ | 14,122 | ||||
Weighted Average Number of Common Shares Outstanding | 789,646 | 793,504 | ||||||
Basic and Diluted Earnings Per Common Share | $ | 21.17 | $ | 17.80 |
(in thousands except for percent and period data) | Three Months Ended March 31, 2021 | Year Ended December 31, 2020 | Three Months Ended March 31, 2020 | |||||||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities | ||||||||||||
Operating Cash Flow from Operating Leases | $ | 192 | $ | 795 | $ | 197 | ||||||
Weighted-Average Remaining Lease Term - Operating Leases, in Years | 6.79 | 7.33 | 7.68 | |||||||||
Weighted-Average Discount Rate - Operating Leases | 2.8 | % | 2.9 | % | 3.2 | % |
(in thousands) | March 31, 2021 | |||
2021 | $ | 493 | ||
2022 | 644 | |||
2023 | 653 | |||
2024 | 667 | |||
2025 | 677 | |||
2026 and thereafter | 1,564 | |||
Total Lease Payments | 4,698 | |||
Less: Interest | (427 | ) | ||
Present Value of Lease Liabilities | $ | 4,271 |
■ | the pendency, duration, and impact of the COVID-19 pandemic; |
■ | changes in general economic conditions, either nationally, in California, or in our local markets; |
■ | inflation, changes in interest rates, securities market volatility and monetary fluctuations; |
■ | increases in competitive pressures among financial institutions and businesses offering similar products and services; |
■ | higher defaults in our loan portfolio than we expect; |
■ | changes in management’s estimate of the adequacy of the allowance for credit losses; |
■ | risks associated with our growth and expansion strategy and related costs; |
■ | increased lending risks associated with our high concentration of real estate loans; |
■ | legislative or regulatory changes or changes in accounting principles, policies or guidelines; |
■ | technological changes; and |
■ | regulatory or judicial proceedings. |
■ | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses. |
■ | Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. |
■ | Changes in the nature and volume of the portfolio and in the terms of loans. |
■ | Changes in the experience, ability, and depth of lending management and other relevant staff. |
■ | Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. |
■ | Changes in the quality of the institution’s loan review system. |
■ | Changes in the value of underlying collateral for collateral-dependent loans. |
■ | The existence and effect of any concentrations of credit, and changes in the level of such concentrations. |
■ | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. |
Three Months Ended March 31, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 760,080 | $ | 366 | 0.20 | % | $ | 410,276 | $ | 103 | 0.10 | % | ||||||||||||
Securities:(1) | ||||||||||||||||||||||||
Taxable securities | 1,022,457 | 4,588 | 1.82 | % | 834,831 | 3,804 | 1.85 | % | ||||||||||||||||
Non-taxable securities(2) | 49,997 | 402 | 3.22 | % | 55,078 | 423 | 3.07 | % | ||||||||||||||||
Total securities | 1,072,454 | 4,990 | 1.89 | % | 889,909 | 4,227 | 1.93 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,151,611 | 13,276 | 4.68 | % | 965,249 | 10,977 | 4.61 | % | ||||||||||||||||
Agricultural | 680,230 | 7,793 | 4.65 | % | 638,292 | 7,136 | 4.53 | % | ||||||||||||||||
Residential and home equity | 353,371 | 3,301 | 3.79 | % | 335,573 | 4,571 | 5.52 | % | ||||||||||||||||
Construction | 191,684 | 2,072 | 4.38 | % | 193,366 | 2,097 | 4.40 | % | ||||||||||||||||
Total real estate | 2,376,896 | 26,442 | 4.51 | % | 2,132,480 | 24,781 | 4.71 | % | ||||||||||||||||
Commercial & industrial | 424,598 | 4,799 | 4.58 | % | 365,881 | 4,111 | 4.56 | % | ||||||||||||||||
Agricultural | 248,414 | 2,755 | 4.50 | % | 226,200 | 2,564 | 4.60 | % | ||||||||||||||||
Commercial leases | 94,855 | 1,416 | 6.05 | % | 102,566 | 1,344 | 5.31 | % | ||||||||||||||||
Consumer and other | 52,078 | 2,021 | 15.74 | % | 232,845 | 4,287 | 7.47 | % | ||||||||||||||||
Total loans and leases | 3,196,841 | 37,433 | 4.75 | % | 3,059,972 | 37,087 | 4.92 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 305 | 7.96 | % | 12,693 | 190 | 6.07 | % | ||||||||||||||||
Total interest earning assets | 5,044,924 | 43,094 | 3.46 | % | 4,372,850 | 41,607 | 3.86 | % | ||||||||||||||||
Allowance for credit losses | (61,022 | ) | (59,431 | ) | ||||||||||||||||||||
Non-interest earning assets | 314,932 | 306,261 | ||||||||||||||||||||||
Total average assets | $ | 5,298,834 | $ | 4,619,680 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,115,578 | 259 | 0.09 | % | $ | 943,635 | 294 | 0.13 | % | ||||||||||||||
Savings and money market accounts | 1,517,234 | 342 | 0.09 | % | 1,291,214 | 418 | 0.13 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 167,515 | 97 | 0.23 | % | 171,501 | 256 | 0.61 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 223,842 | 105 | 0.19 | % | 247,416 | 269 | 0.44 | % | ||||||||||||||||
Total interest bearing deposits | 3,024,169 | 803 | 0.11 | % | 2,653,766 | 1,237 | 0.19 | % | ||||||||||||||||
Short-term borrowings | 3 | - | 0.00 | % | 4 | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 82 | 3.23 | % | 10,310 | 79 | 3.11 | % | ||||||||||||||||
Total interest bearing liabilities | 3,034,482 | 885 | 0.12 | % | 2,664,080 | 1,316 | 0.20 | % | ||||||||||||||||
Non-interest bearing deposits | 1,722,597 | 1,469,741 | ||||||||||||||||||||||
Total funding | 4,757,079 | 885 | 0.08 | % | 4,133,821 | 1,316 | 0.13 | % | ||||||||||||||||
Other non-interest bearing liabilities | 76,061 | 56,268 | ||||||||||||||||||||||
Shareholders’ equity | 465,694 | 429,591 | ||||||||||||||||||||||
Total average liabilities and shareholders’ equity | $ | 5,298,834 | $ | 4,619,680 | ||||||||||||||||||||
Net interest income | $ | 42,209 | $ | 40,291 | ||||||||||||||||||||
Interest rate spread | 3.35 | % | 3.66 | % | ||||||||||||||||||||
Net interest margin(4) | 3.39 | % | 3.74 | % |
(1) | Excludes average unrealized (losses) gains of ($7.0) million and $12.9 million for the three months ended March 31, 2022, and 2021, respectively, which are included in non-interest earning assets. |
(2) | The average yield does not include the federal tax benefits at an assumed effective yield of 25% related to income earned on tax-exempt municipal securities totaling $106,000 and $111,000 for the three months ended March 31, 2022, and 2021, respectively. |
(3) | Loan interest income includes loan fees of $3.9 million and $5.2 million for the three months ended March 31, 2022 and 2021, respectively. |
(4) | Net interest margin is computed by dividing net interest income by average interest earning assets. |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | |||||||||||||||||||||||
Assets | Balance | Interest | Annualized Yield/Rate | Balance | Interest | Annualized Yield/Rate | ||||||||||||||||||
Interest Bearing Deposits With Banks | $ | 410,276 | $ | 103 | 0.10 | % | $ | 289,028 | $ | 947 | 1.33 | % | ||||||||||||
Investment Securities | ||||||||||||||||||||||||
U.S. Treasury Notes | 14,869 | 85 | �� | 2.32 | % | 16,298 | 92 | 2.30 | % | |||||||||||||||
U.S. Government Agency SBA | 8,102 | 14 | 0.69 | % | 10,504 | 51 | 1.94 | % | ||||||||||||||||
Municipals - Taxable | 16,091 | 153 | 3.80 | % | 10,078 | 86 | 3.41 | % | ||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable (1) | 55,078 | 534 | 3.88 | % | 49,335 | 542 | 4.39 | % | ||||||||||||||||
Mortgage Backed Securities | 749,374 | 3,307 | 1.77 | % | 436,743 | 2,918 | 2.67 | % | ||||||||||||||||
Other | 46,395 | 245 | 2.11 | % | 1,801 | 5 | 1.11 | % | ||||||||||||||||
Total Investment Securities | 889,909 | 4,338 | 1.95 | % | 524,759 | 3,694 | 2.82 | % | ||||||||||||||||
Loans & Leases: (2) | ||||||||||||||||||||||||
Real Estate | 2,099,665 | 24,419 | 4.72 | % | 1,821,961 | 23,649 | 5.28 | % | ||||||||||||||||
Home Equity Line & Loans | 32,815 | 362 | 4.47 | % | 39,834 | 560 | 5.72 | % | ||||||||||||||||
Agricultural | 226,200 | 2,564 | 4.60 | % | 265,432 | 3,431 | 5.26 | % | ||||||||||||||||
Commercial | 365,881 | 4,111 | 4.56 | % | 391,929 | 4,873 | 5.06 | % | ||||||||||||||||
Consumer (3) | 10,349 | 3,742 | 146.64 | % | 14,256 | 221 | 6.30 | % | ||||||||||||||||
Other | 222,496 | 545 | 0.99 | % | 770 | 4 | 2.11 | % | ||||||||||||||||
Leases | 102,566 | 1,344 | 5.31 | % | 105,178 | 1,422 | 5.50 | % | ||||||||||||||||
Total Loans & Leases | 3,059,972 | 37,087 | 4.92 | % | 2,639,360 | 34,160 | 5.26 | % | ||||||||||||||||
Total Earning Assets | 4,360,157 | $ | 41,528 | 3.86 | % | 3,453,147 | $ | 38,801 | 4.57 | % | ||||||||||||||
Unrealized (Loss) Gain on Securities Available-for-Sale | 12,918 | 6,796 | ||||||||||||||||||||||
Allowance for Credit Losses | (59,431 | ) | (55,022 | ) | ||||||||||||||||||||
Cash and Due From Banks | 64,221 | 59,917 | ||||||||||||||||||||||
All Other Assets | 241,815 | 237,469 | ||||||||||||||||||||||
Total Assets | $ | 4,619,680 | $ | 3,702,307 | ||||||||||||||||||||
Liabilities & Shareholders’ Equity | ||||||||||||||||||||||||
Interest Bearing Deposits with Banks | ||||||||||||||||||||||||
Interest Bearing DDA | $ | 943,635 | $ | 294 | 0.13 | % | $ | 704,065 | $ | 548 | 0.32 | % | ||||||||||||
Savings and Money Market | 1,291,214 | 418 | 0.13 | % | 1,015,398 | 961 | 0.38 | % | ||||||||||||||||
Time Deposits | 418,917 | 525 | 0.51 | % | 522,548 | 1,635 | 1.27 | % | ||||||||||||||||
Total Interest Bearing Deposits | 2,653,766 | 1,237 | 0.19 | % | 2,242,011 | 3,144 | 0.57 | % | ||||||||||||||||
Federal Home Loan Bank Advances | 4 | - | 0.00 | % | 4 | - | 0.00 | % | ||||||||||||||||
Subordinated Debentures | 10,310 | 79 | 3.11 | % | 10,310 | 119 | 4.69 | % | ||||||||||||||||
Total Interest Bearing Liabilities | 2,664,080 | $ | 1,316 | 0.20 | % | 2,252,325 | $ | 3,263 | 0.59 | % | ||||||||||||||
Interest Rate Spread (4) | 3.66 | % | 3.98 | % | ||||||||||||||||||||
Demand Deposits (Non-Interest Bearing) | 1,469,741 | 1,011,298 | ||||||||||||||||||||||
All Other Liabilities | 56,268 | 59,497 | ||||||||||||||||||||||
Total Liabilities | 4,190,089 | 3,323,120 | ||||||||||||||||||||||
Shareholders’ Equity | 429,591 | 379,187 | ||||||||||||||||||||||
Total Liabilities & Shareholders’ Equity | $ | 4,619,680 | $ | 3,702,307 | ||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets (5) | 40,212 | 3.74 | % | 35,538 | 4.19 | % | ||||||||||||||||||
Tax Equivalent Adjustment | (111 | ) | (112 | ) | ||||||||||||||||||||
Net Interest Income | $ | 40,101 | 3.73 | % | $ | 35,426 | 4.17 | % |
(in thousands) | Three Months Ended | |||||||||||
Mar. 31, 2021 compared to Mar. 31, 2020 | ||||||||||||
Interest Earning Assets | Volume | Rate | Net Chg. | |||||||||
Interest Bearing Deposits With Banks | $ | 292 | $ | (1,136 | ) | $ | (844 | ) | ||||
Investment Securities | - | |||||||||||
U.S. Treasury Notes | (8 | ) | 1 | (7 | ) | |||||||
US Government Agency SBA | (10 | ) | (27 | ) | (37 | ) | ||||||
Municipals - Taxable | 56 | 11 | 67 | |||||||||
Obligations of States and Political Subdivisions - Non-Taxable | 59 | (67 | ) | (8 | ) | |||||||
Mortgage Backed Securities | 1,608 | (1,219 | ) | 389 | ||||||||
Other | 232 | 8 | 240 | |||||||||
Total Investment Securities | 1,937 | (1,293 | ) | 644 | ||||||||
Loans & Leases | ||||||||||||
Real Estate | 3,468 | (2,698 | ) | 770 | ||||||||
Home Equity Line & Loans | (88 | ) | (110 | ) | (198 | ) | ||||||
Agricultural | (469 | ) | (398 | ) | (867 | ) | ||||||
Commercial | (306 | ) | (456 | ) | (762 | ) | ||||||
Consumer (1) | (79 | ) | 3,600 | 3,521 | ||||||||
Other | 544 | (3 | ) | 541 | ||||||||
Leases | (33 | ) | (45 | ) | (78 | ) | ||||||
Total Loans & Leases | 3,037 | (110 | ) | 2,927 | ||||||||
Total Earning Assets | 5,266 | (2,539 | ) | 2,727 | ||||||||
Interest Bearing Liabilities | ||||||||||||
Interest Bearing Deposits with Banks | ||||||||||||
Transaction | 288 | (542 | ) | (254 | ) | |||||||
Savings and Money Market | 218 | (761 | ) | (543 | ) | |||||||
Time Deposits | (276 | ) | (834 | ) | (1,110 | ) | ||||||
Total Interest Bearing Deposits | 230 | (2,137 | ) | (1,907 | ) | |||||||
Subordinated Debentures | - | (40 | ) | (40 | ) | |||||||
Total Interest Bearing Liabilities | 230 | (2,177 | ) | (1,947 | ) | |||||||
Total Change | $ | 5,036 | $ | (362 | ) | $ | 4,674 |
Three Months Ended March 31, | ||||||||
(in thousands) | 2021 | 2020 | ||||||
Balance at Beginning of Period | $ | 58,862 | $ | 55,012 | ||||
Charge-Offs | (8 | ) | (265 | ) | ||||
Recoveries | 71 | 77 | ||||||
Provision | 1,250 | - | ||||||
Balance at End of Period | $ | 60,175 | $ | 54,824 |
March 31, 2021 | Commercial Real Estate | Agricultural Real Estate | Real Estate Construction | Residential 1st Mortgages | Home Equity Lines & Loans | Agricultural | Commercial | Consumer & Other | Leases | Unallocated | Total | |||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- December 31, 2020 | $ | 27,679 | $ | 8,633 | $ | 1,643 | $ | 960 | $ | 2,024 | $ | 4,814 | $ | 9,961 | $ | 333 | $ | 1,731 | $ | 1,084 | $ | 58,862 | ||||||||||||||||||||||
Charge-Offs | - | - | - | - | - | - | - | (8 | ) | - | - | (8 | ) | |||||||||||||||||||||||||||||||
Recoveries | - | - | �� | - | 28 | 4 | 3 | 29 | 7 | - | - | 71 | ||||||||||||||||||||||||||||||||
Provision | 1,387 | 412 | 4 | (21 | ) | (114 | ) | (567 | ) | (14 | ) | (36 | ) | (57 | ) | 256 | 1,250 | |||||||||||||||||||||||||||
Ending Balance- March 31, 2021 | $ | 29,066 | $ | 9,045 | $ | 1,647 | $ | 967 | $ | 1,914 | $ | 4,250 | $ | 9,976 | $ | 296 | $ | 1,674 | $ | 1,340 | $ | 60,175 |
Three Months Ended March 31, 2022 compared with 2021 | ||||||||||||
Increase (Decrease) Due to: | ||||||||||||
(Dollars in thousands) | Volume | Rate | Net | |||||||||
Interest income: | ||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 127 | $ | 136 | $ | 263 | ||||||
Securities: | ||||||||||||
Taxable securities | 1,174 | (390 | ) | 784 | ||||||||
Non-taxable securities | (119 | ) | 98 | (21 | ) | |||||||
Total securities | 1,055 | (292 | ) | 763 | ||||||||
Loans: | ||||||||||||
Real estate: | ||||||||||||
Commercial | 2,146 | 153 | 2,299 | |||||||||
Agricultural | 477 | 180 | 657 | |||||||||
Residential and home equity | 1,499 | (2,769 | ) | (1,270 | ) | |||||||
Construction | (18 | ) | (7 | ) | (25 | ) | ||||||
Total real estate | 4,105 | (2,444 | ) | 1,661 | ||||||||
Commercial & industrial | 664 | 24 | 688 | |||||||||
Agricultural | 525 | (334 | ) | 191 | ||||||||
Commercial leases | (507 | ) | 579 | 72 | ||||||||
Consumer and other | (16,806 | ) | 14,540 | (2,266 | ) | |||||||
Total loans | (12,020 | ) | 12,366 | 346 | ||||||||
Non-marketable securities | 48 | 67 | 115 | |||||||||
Total interest income | (10,790 | ) | 12,277 | 1,487 | ||||||||
Interest expense: | ||||||||||||
Interest-bearing deposits: | ||||||||||||
Demand | 239 | (274 | ) | (35 | ) | |||||||
Savings and money market accounts | 349 | (425 | ) | (76 | ) | |||||||
Certificates of deposit greater than $250,000 | (6 | ) | (153 | ) | (159 | ) | ||||||
Certificates of deposit less than $250,000 | (24 | ) | (140 | ) | (164 | ) | ||||||
Total interest bearing deposits | 558 | (992 | ) | (434 | ) | |||||||
Subordinated debentures | - | 3 | 3 | |||||||||
Total interest expense | 558 | (989 | ) | (431 | ) | |||||||
Net interest income | $ | (11,348 | ) | $ | 13,266 | $ | 1,918 |
Three Months Ended March 31, | ||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Better / (Worse) | % Better / (Worse) | ||||||||||||
Selected Income Statement Information: | ||||||||||||||||
Interest income | $ | 43,094 | $ | 41,607 | $ | 1,487 | 3.57 | % | ||||||||
Interest expense | 885 | 1,316 | 431 | 32.75 | % | |||||||||||
Net interest income | 42,209 | 40,291 | 1,918 | 4.76 | % | |||||||||||
Provision for credit losses | - | 1,250 | 1,250 | 100.00 | % | |||||||||||
Net interest income after provision for credit losses | 42,209 | 39,041 | 3,168 | 8.11 | % | |||||||||||
Non-interest income | 4,312 | 9,535 | (5,223 | ) | -54.78 | % | ||||||||||
Non-interest expense | 23,788 | 26,363 | 2,575 | 9.77 | % | |||||||||||
Income before income tax expense | 22,733 | 22,213 | 520 | 2.34 | % | |||||||||||
Income tax expense | 5,675 | 5,500 | (175 | ) | -3.18 | % | ||||||||||
Net income | $ | 17,058 | $ | 16,713 | $ | 345 | 2.06 | % |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Available-for-Sale Securities | ||||||||
U.S. Treasury notes | $ | 9,996 | $ | 10,089 | ||||
U.S. Government-sponsored securities | 5,789 | 6,374 | ||||||
Mortgage-backed securities(1) | 223,901 | 251,120 | ||||||
Collateralized mortgage obligations(1) | 1,544 | 2,436 | ||||||
Corporate securities | 9,835 | - | ||||||
Other | 310 | 435 | ||||||
Total available-for-sale securities | $ | 251,375 | $ | 270,454 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Held-to-Maturity Securities | ||||||||
Mortgage-backed securities(1) | $ | 695,249 | $ | 596,775 | ||||
Collateralized mortgage obligations(1) | 117,427 | 73,781 | ||||||
Municipal securities | 63,581 | 66,496 | ||||||
Total held-to-maturity securities | $ | 876,257 | $ | 737,052 |
Investment Securities | As of March 31, 2022 | |||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 9,996 | 2.36 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 9,996 | 2.36 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 3 | 2.57 | % | 142 | 2.36 | % | 423 | 1.42 | % | 5,221 | 1.27 | % | 5,789 | 1.30 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 1 | 1.39 | % | 26,319 | 2.31 | % | 37,271 | 2.40 | % | 160,310 | 1.67 | % | 223,901 | 1.83 | % | |||||||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 1,544 | 2.26 | % | 1,544 | 2.30 | % | |||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | 4,932 | 0.68 | % | 4,903 | 0.81 | % | - | 0.00 | % | 9,835 | 0.00 | % | |||||||||||||||||||||||||
Other | 310 | 0.01 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 310 | 3.31 | % | |||||||||||||||||||||||||
Total securities available-for-sale | $ | 10,310 | 2.29 | % | $ | 31,393 | 2.05 | % | $ | 42,597 | 2.21 | % | $ | 167,075 | 1.66 | % | $ | 251,375 | 1.77 | % |
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 15,820 | 0.72 | % | $ | 679,429 | 1.80 | % | $ | 695,249 | 1.70 | % | ||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 117,427 | 1.17 | % | 117,427 | 1.71 | % | |||||||||||||||||||||||||
Municipal securities | 908 | 1.41 | % | 7,118 | 2.20 | % | 16,690 | 3.34 | % | 38,865 | 1.22 | % | 63,581 | 3.90 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 908 | 1.41 | % | $ | 7,118 | 2.20 | % | $ | 32,510 | 2.06 | % | $ | 835,721 | 1.68 | % | $ | 876,257 | 1.86 | % |
Investment Securities | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 5,028 | 2.33 | % | $ | 5,061 | 2.38 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 10,089 | 2.36 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 2 | 1.80 | % | 148 | 2.29 | % | 512 | 1.55 | % | 5,712 | 1.26 | % | 6,374 | 1.30 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 13 | 1.50 | % | 21,155 | 2.36 | % | 50,554 | 2.36 | % | 179,398 | 1.61 | % | 251,120 | 1.83 | % | |||||||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 2,436 | 2.30 | % | 2,436 | 2.30 | % | |||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | |||||||||||||||||||||||||
Other | 435 | 3.31 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 435 | 3.31 | % | |||||||||||||||||||||||||
Total securities available for sale | $ | 5,478 | 2.41 | % | $ | 26,364 | 2.36 | % | $ | 51,066 | 2.35 | % | $ | 187,546 | 1.61 | % | $ | 270,454 | 1.84 | % |
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held to maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | - | 0.00 | % | - | 0.00 | % | 10,641 | 0.41 | % | 586,134 | 1.72 | % | 596,775 | 1.70 | % | |||||||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 73,781 | 1.71 | % | 73,781 | 1.71 | % | |||||||||||||||||||||||||
Municipal securities | 308 | 1.10 | % | 8,487 | 2.19 | % | 18,433 | 3.42 | % | 39,268 | 4.52 | % | 66,496 | 3.90 | % | |||||||||||||||||||||||||
Total securities held to maturity | $ | 308 | 1.10 | % | $ | 8,487 | 2.19 | % | $ | 29,074 | 2.32 | % | $ | 699,183 | 1.88 | % | $ | 737,052 | 1.90 | % |
March 31, 2021 | December 31, 2020 | March 31, 2020 | ||||
(in thousands) | $ | % | $ | % | $ | % |
Commercial Real Estate | $ 1,021,565 | 32.7% | $ 971,326 | 31.2% | $ 868,736 | 32.5% |
Agricultural Real Estate | 634,244 | 20.3% | 643,014 | 20.7% | 594,154 | 22.2% |
Real Estate Construction | 208,573 | 6.7% | 185,741 | 6.0% | 126,956 | 4.7% |
Residential 1st Mortgages | 305,085 | 9.8% | 299,379 | 9.6% | 256,732 | 9.6% |
Home Equity Lines and Loans | 32,407 | 1.0% | 34,239 | 1.1% | 40,747 | 1.5% |
Agricultural | 221,152 | 7.1% | 264,372 | 8.5% | 264,771 | 9.9% |
Commercial | 367,875 | 11.8% | 374,816 | 12.0% | 404,329 | 15.1% |
Consumer & Other (1) | 232,209 | 7.4% | 235,529 | 7.6% | 14,839 | 0.6% |
Leases | 101,058 | 3.2% | 103,117 | 3.3% | 105,362 | 3.9% |
Total Gross Loans & Leases | 3,124,168 | 100.0% | 3,111,533 | 100.0% | 2,676,626 | 100.0% |
Less: Unearned Income | 13,157 | 11,941 | 6,517 | |||
Subtotal | 3,111,011 | 3,099,592 | 2,670,109 | |||
Less: Allowance for Credit Losses | 60,175 | 58,862 | 54,824 | |||
Net Loans & Leases | $ 3,050,836 | $ 3,040,730 | $ 2,615,285 |
March 31, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Gross Loans and Leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 1,172,804 | 36.12 | % | $ | 1,167,516 | 35.95 | % | ||||||||
Agricultural | 695,565 | 21.42 | % | 672,830 | 20.72 | % | ||||||||||
Residential and home equity | 359,214 | 11.06 | % | 350,581 | 10.79 | % | ||||||||||
Construction | 204,794 | 6.31 | % | 177,163 | 5.45 | % | ||||||||||
Total real estate | 2,432,377 | 74.91 | % | 2,368,090 | 72.91 | % | ||||||||||
Commercial | 437,199 | 13.47 | % | 427,799 | 13.17 | % | ||||||||||
Agricultural | 251,469 | 7.75 | % | 276,684 | 8.52 | % | ||||||||||
Commercial leases | 92,445 | 2.85 | % | 96,971 | 2.99 | % | ||||||||||
Consumer and other(1) | 33,255 | 1.02 | % | 78,367 | 2.41 | % | ||||||||||
Total gross loans and leases | 3,246,745 | 100.00 | % | 3,247,911 | 100.00 | % |
Loan Contractual Maturity | ||||||||||||||||||||
(Dollars in thousands) | One Year or Less | After One But Within Five Years | After Five Years But Within Fifteen Years | After Fifteen Years | Total | |||||||||||||||
Gross loan and leases: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial | $ | 89,814 | $ | 249,435 | $ | 798,092 | $ | 35,463 | $ | 1,172,804 | ||||||||||
Agricultural | 41,641 | 153,198 | 429,832 | 70,894 | 695,565 | |||||||||||||||
Residential and home equity | 197 | 3,371 | 117,347 | 238,299 | 359,214 | |||||||||||||||
Construction | 140,600 | 63,397 | 797 | - | 204,794 | |||||||||||||||
Total real estate | 272,252 | 469,401 | 1,346,068 | 344,656 | 2,432,377 | |||||||||||||||
Commercial & Industrial | 153,153 | 238,138 | 39,932 | 5,976 | 437,199 | |||||||||||||||
Agricultural | 153,586 | 85,412 | 12,471 | - | 251,469 | |||||||||||||||
Commercial leases | 6,743 | 33,387 | 52,315 | - | 92,445 | |||||||||||||||
Consumer and other(1) | 1,233 | 29,970 | 2,052 | - | 33,255 | |||||||||||||||
Total gross loans and leases | $ | 586,967 | $ | 856,308 | $ | 1,452,838 | $ | 350,632 | $ | 3,246,745 | ||||||||||
Rate Structure for Loans | ||||||||||||||||||||
Fixed Rate | $ | 112,960 | $ | 370,873 | $ | 1,130,743 | $ | 234,582 | $ | 1,849,158 | ||||||||||
Adjustable Rate | 474,007 | 485,435 | 322,095 | 116,050 | 1,397,587 | |||||||||||||||
Total gross loans and leases | $ | 586,967 | $ | 856,308 | $ | 1,452,838 | $ | 350,632 | $ | 3,246,745 |
Non-Performing Assets | ||||||||||||
(in thousands) | March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||
Non-Performing Loans & Leases | $ | 493 | $ | 495 | $ | 549 | ||||||
Other Real Estate | 873 | 873 | 873 | |||||||||
Total Non-Performing Assets | $ | 1,366 | $ | 1,368 | $ | 1,422 | ||||||
Non-Performing Loans & Leases | ||||||||||||
as a % of Total Loans & Leases | 0.02 | % | 0.02 | % | 0.00 | % | ||||||
Restructured Loans & Leases (Performing) | $ | 7,843 | $ | 7,868 | $ | 12,028 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Non-performing assets: | ||||||||
Non-accrual loans and leases, not TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 437 | $ | - | ||||
Agricultural | - | 18 | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | 437 | 18 | ||||||
Commercial & Industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | 437 | 18 | ||||||
Non-accrual loans and leases, are TDRs | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | 498 | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | 498 | ||||||
Commercial & Industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | - | 498 | ||||||
Total non-performing loans and leases | $ | 437 | $ | 516 | ||||
Other real estate owned (“OREO”) | $ | 873 | $ | 873 | ||||
Total non-performing assets | $ | 1,310 | $ | 1,389 | ||||
Performing TDRs | $ | 1,603 | $ | 1,824 | ||||
Selected ratios: | ||||||||
Non-performing loans to total loans | 0.01 | % | 0.02 | % | ||||
Non-performing assets to total assets | 0.02 | % | 0.03 | % |
The State of California experienced drought conditions from 2013 through most of 2016. After 2016, reasonable levels of rain and snow alleviated drought conditions in our primary service area, but the winters of 2020-2021 and 2021-2022 were once again dry. Despite this, |
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Allowance for credit losses: | ||||||||
Balance at beginning of year | $ | 61,007 | $ | 58,862 | ||||
Provision / (recapture) for credit losses | - | 1,250 | ||||||
Charge-offs: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & Industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | (9 | ) | (8 | ) | ||||
Total charge-offs | (9 | ) | (8 | ) | ||||
Recoveries: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | 14 | 32 | ||||||
Construction | - | - | ||||||
Total real estate | 14 | 32 | ||||||
Commercial & Industrial | 16 | 29 | ||||||
Agricultural | 2 | 3 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | 2 | 7 | ||||||
Total recoveries | 34 | 71 | ||||||
Net recoveries / charge-offs | 25 | 63 | ||||||
Balance at end of year | $ | 61,032 | $ | 60,175 | ||||
Selected financial information: | ||||||||
Net loans held for investment | $ | 3,237,619 | $ | 3,111,011 | ||||
Average loans | 3,196,841 | 3,059,972 | ||||||
Non-performing loans | 437 | 493 | ||||||
Allowance for credit losses to non-performing loans | 13966.13 | % | 12205.88 | % | ||||
Net (recoveries)/charge-offs to average loans | 0.00 | % | 0.00 | % | ||||
Provision for credit losses to average loans | 0.00 | % | 0.04 | % | ||||
Allowance for credit losses to loans held for investment | 1.89 | % | 1.93 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 17,920 | 36.12 | % | $ | 28,536 | 35.95 | % | ||||||||
Agricultural | 14,591 | 21.42 | % | 9,613 | 20.72 | % | ||||||||||
Residential and home equity | 6,759 | 11.06 | % | 2,847 | 10.79 | % | ||||||||||
Construction | 3,777 | 6.31 | % | 1,456 | 5.45 | % | ||||||||||
Total real estate | 43,047 | 74.91 | % | 42,452 | 72.91 | % | ||||||||||
Commercial & Industrial | 10,361 | 13.47 | % | 11,489 | 13.17 | % | ||||||||||
Agricultural | 5,737 | 7.75 | % | 5,465 | 8.52 | % | ||||||||||
Commercial leases | 1,466 | 2.85 | % | 938 | 2.99 | % | ||||||||||
Consumer and other | 421 | 1.02 | % | 663 | 2.41 | % | ||||||||||
Total allowance for credit losses | $ | 61,032 | 100.00 | % | $ | 61,007 | 100.00 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | ||||||||||||||||||
Total deposits: | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,115,578 | 259 | 0.09 | % | $ | 943,635 | 294 | 0.13 | % | ||||||||||||||
Savings and Money Market | 1,517,234 | 342 | 0.09 | % | 1,291,214 | 418 | 0.13 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 167,515 | 97 | 0.23 | % | 171,501 | 256 | 0.61 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 223,842 | 105 | 0.19 | % | 247,416 | 269 | 0.44 | % | ||||||||||||||||
Total interest bearing deposits | 3,024,169 | 803 | 0.11 | % | 2,653,766 | 1,237 | 0.19 | % | ||||||||||||||||
Non-interest bearing deposits | 1,722,597 | 1,469,741 | ||||||||||||||||||||||
Total deposits | $ | 4,746,766 | $ | 803 | 0.07 | % | $ | 4,123,507 | $ | 1,237 | 0.12 | % |
March 31, | December 31, | |||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Deposits greater than $250,000 | $ | 2,860,003 | $ | 2,708,576 | ||||
Certificates of deposit greater $250,000, by maturity: | ||||||||
Less than 3 months | 48,962 | 59,591 | ||||||
3 months to 6 months | 48,130 | 37,182 | ||||||
6 months to 12 months | 61,890 | 59,945 | ||||||
More than 12 months | 9,881 | 12,147 | ||||||
Total Time Deposits greater than $250,000 | $ | 168,863 | $ | 168,865 | ||||
Total deposits greater than $250,000 | $ | 3,028,866 | $ | 2,877,441 |
(Dollars in thousands) | Basel III Regulatory Well Capitalized Requirement | March 31, 2022 | December 31, 2021 | |||||||||
Farmers & Merchants Bancorp | ||||||||||||
CET1 capital to risk-weighted assets | N/A | 11.63 | % | 11.68 | % | |||||||
Tier 1 capital to risk-weighted assets | N/A | 11.88 | % | 11.94 | % | |||||||
Risk-based capital to risk-weighted assets | N/A | 13.14 | % | 13.19 | % | |||||||
Tier 1 leverage capital ratio | N/A | 8.45 | % | 8.92 | % | |||||||
Farmers & Merchants Bank | ||||||||||||
CET1 capital to risk-weighted assets | 6.50 | % | 11.87 | % | 11.91 | % | ||||||
Tier 1 capital to risk-weighted assets | 8.00 | % | 11.87 | % | 11.91 | % | ||||||
Risk-based capital to risk-weighted assets | 10.00 | % | 13.12 | % | 13.17 | % | ||||||
Tier 1 leverage capital ratio | 5.00 | % | 8.94 | % | 8.91 | % |
(in thousands) | Actual | Current Regulatory Capital Requirements | Well Capitalized Under Prompt Corrective Action | |||||||||||||||||||||
The Company: | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||||||
Total Capital Ratio | $ | 468,419 | 12.89 | % | $ | 290,826 | 8.0 | % | N/A | N/A | ||||||||||||||
Common Equity Tier 1 Capital Ratio | $ | 412,792 | 11.36 | % | $ | 163,590 | 4.5 | % | N/A | N/A | ||||||||||||||
Tier 1 Capital Ratio | $ | 422,792 | 11.63 | % | $ | 218,120 | 6.0 | % | N/A | N/A | ||||||||||||||
Tier 1 Leverage Ratio | $ | 422,792 | 9.19 | % | $ | 184,045 | 4.0 | % | 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 March 31, 2021 | ||||||||||||||||||||||||
Total Capital Ratio | $ | 464,238 | 12.77 | % | $ | 290,733 | 8.0 | % | $ | 363,416 | 10.0 | % | ||||||||||||
Common Equity Tier 1 Capital Ratio | $ | 418,625 | 11.52 | % | $ | 163,537 | 4.5 | % | $ | 236,221 | 6.5 | % | ||||||||||||
Tier 1 Capital Ratio | $ | 418,625 | 11.52 | % | $ | 218,050 | 6.0 | % | $ | 290,733 | 8.0 | % | ||||||||||||
Tier 1 Leverage Ratio | $ | 418,625 | 9.11 | % | $ | 183,816 | 4.0 | % | $ | 229,770 | 5.0 | % |
(in thousands) | March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||
Commitments to Extend Credit | $ | 1,103,851 | $ | 1,040,844 | $ | 939,064 | ||||||
Letters of Credit | 19,613 | 18,846 | 20,047 | |||||||||
Performance Guarantees Under Interest Rate Swap Contracts Entered | ||||||||||||
Into Between Our Borrowing Customers and Third Parties | 2,029 | 2,786 | 3,640 |
Amount of Commitment Expiration per Period | ||||||||||||||||||||
(Dollars in thousands) | Total Committed Amount | Less than One Year | One to Three Years | Three to Five Years | After Five Years | |||||||||||||||
Off-balance sheet commitments | ||||||||||||||||||||
Commitments to extend credit | $ | 987,423 | $ | 387,129 | $ | 436,860 | $ | 19,049 | $ | 144,385 | ||||||||||
Standby letters of credit | 16,250 | 6,964 | 6,040 | 2,970 | 276 | |||||||||||||||
Performance guarantees | 191 | 71 | 25 | 2 | 93 | |||||||||||||||
Total off-balance sheet commitments | $ | 1,003,864 | $ | 394,164 | $ | 442,925 | $ | 22,021 | $ | 144,754 |
March 31, 2022 | ||||||||||||||||||||
(Dollars in thousands) | Total Credit Line Limit | Current Credit Line Available | Outstanding Amount | Remaining Credit Line Available | Value of Collateral Pledged | |||||||||||||||
Additional liquidity sources: | ||||||||||||||||||||
Federal Home Loan Bank | $ | 815,060 | $ | 815,060 | $ | - | $ | 815,060 | $ | 1,154,080 | ||||||||||
Federal Reserve BIC | $ | 664,437 | $ | 664,437 | $ | - | $ | 664,437 | $ | 860,206 | ||||||||||
FHLB Fed Funds | $ | 18,000 | $ | 18,000 | $ | - | $ | 18,000 | $ | - | ||||||||||
US Bank Fed Funds | $ | 35,000 | $ | 35,000 | $ | - | $ | 35,000 | $ | - | ||||||||||
MUFG Union Bank Fed Funds | $ | 15,000 | $ | 15,000 | $ | - | $ | 15,000 | $ | - | ||||||||||
PCBB Fed Funds | $ | 50,000 | $ | 50,000 | $ | - | $ | 50,000 | $ | - | ||||||||||
Total additional liquidity sources | $ | 1,597,497 | $ | 1,597,497 | $ | - | $ | 1,597,497 | $ | 2,014,286 |
The following documents are filed as a part of this Quarterly Report on Form 10-Q: |
(1) | Financial Statements and |
(2) | Financial Statement schedules required to be filed by Item 1 of this Quarterly Report on Form 10-Q. |
(3) | The following exhibits are required by Item 601 of Regulation S-K and are included as part of this Quarterly Report on Form 10-Q: |
Exhibit Number | 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.* | |
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH | Inline XBRL Taxonomy Extension Schema |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
FARMERS & MERCHANTS BANCORP | ||
Date: May | /s/ Kent A. Steinwert | |
Kent A. Steinwert | ||
Director, Chairman, President | ||
(Principal Executive Officer) |
Date: May | /s/ Stephen W. Haley | |
Stephen W. Haley | ||
Executive Vice President and | ||
Chief Financial Officer | ||
(Principal Financial |