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 | |||
4 | ||||
5 | ||||
6 | ||||
7 | ||||
8 | ||||
9 | ||||
32 | ||||
38 | ||||
45 | ||||
PART II. - OTHER INFORMATION | ||||
Item 1 – Legal Proceedings | 59 | |||
Item 3 – Defaults upon Senior Securities | 59 | |||
Item 5 – Other Information | 60 | |||
61 | ||||
(Dollars in thousands, except share and per share amounts) | June 30, 2022 | December 31, 2021 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 67,136 | $ | 52,499 | ||||
Interest bearing deposits with banks | 680,652 | 662,961 | ||||||
Total cash and cash equivalents | 747,788 | 715,460 | ||||||
Securities available-for-sale, at fair value | 225,338 | 270,454 | ||||||
Securities held-to-maturity, net of allowance for credit losses of $393 and $0, respectively, fair value $754,834 and $725,841, respectively | 867,990 | 737,052 | ||||||
Total investment securities | 1,093,328 | 1,007,506 | ||||||
Non-marketable securities | 15,549 | 15,549 | ||||||
Loans and leases held for investment | 3,249,886 | 3,237,177 | ||||||
Allowance for credit losses | (62,080 | ) | (61,007 | ) | ||||
Loans held for investment, net | 3,187,806 | 3,176,170 | ||||||
Bank-owned life insurance | 72,513 | 71,411 | ||||||
Premises and equipment, net | 46,970 | 47,730 | ||||||
Deferred income tax assets | 34,839 | 25,542 | ||||||
Accrued interest receivable | 18,231 | 18,098 | ||||||
Goodwill | 11,183 | 11,183 | ||||||
Other intangibles | 3,106 | 3,402 | ||||||
Other real estate owned | 873 | 873 | ||||||
Other assets | 94,495 | 84,796 | ||||||
TOTAL ASSETS | $ | 5,326,681 | $ | 5,177,720 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Non-interest bearing | $ | 1,753,633 | $ | 1,750,330 | ||||
Interest bearing: | ||||||||
Demand | 1,059,651 | 1,097,337 | ||||||
Savings and money market | 1,577,599 | 1,400,000 | ||||||
Certificate of deposits | 378,630 | 392,485 | ||||||
Total interest bearing | 3,015,880 | 2,889,822 | ||||||
Total deposits | 4,769,513 | 4,640,152 | ||||||
Subordinated debentures | 10,310 | 10,310 | ||||||
Interest payable and other liabilities | 85,505 | 64,122 | ||||||
TOTAL LIABILITIES | 4,865,328 | 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 777,190 and 789,646 outstanding at June 30, 2022 and December 31, 2021, respectively | 8 | 8 | ||||||
Additional paid-in capital | 65,671 | 77,516 | ||||||
Retained earnings | 416,722 | 387,331 | ||||||
Accumulated other comprehensive (loss) / income, net of taxes | (21,048 | ) | (1,719 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 461,353 | 463,136 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,326,681 | $ | 5,177,720 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest income | ||||||||||||||||
Interest and fees on loans and leases | $ | 38,570 | $ | 36,664 | $ | 76,003 | $ | 73,751 | ||||||||
Interest and dividends on investments | 5,716 | 4,322 | 11,011 | 8,739 | ||||||||||||
Interest on deposits with others | 1,409 | 164 | 1,775 | 267 | ||||||||||||
Total interest income | 45,695 | 41,150 | 88,789 | 82,757 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 873 | 1,034 | 1,676 | 2,271 | ||||||||||||
Subordinated debentures | 103 | 79 | 185 | 158 | ||||||||||||
Total interest expense | 976 | 1,113 | 1,861 | 2,429 | ||||||||||||
Net interest income | 44,719 | 40,037 | 86,928 | 80,328 | ||||||||||||
Provision for credit losses | 1,500 | 0 | 1,500 | 1,250 | ||||||||||||
Net interest income after provision for credit losses | 43,219 | 40,037 | 85,428 | 79,078 | ||||||||||||
Non-interest income | ||||||||||||||||
Card processing | 1,847 | 1,806 | 3,584 | 3,385 | ||||||||||||
Service charges on deposit accounts | 830 | 679 | 1,680 | 1,317 | ||||||||||||
Increase in cash surrender value of BOLI | 560 | 541 | 1,102 | 1,067 | ||||||||||||
Gain on sale of investment securities | 2 | 714 | 2 | 2,554 | ||||||||||||
Net (loss)/gain on deferred compensation benefits | (991 | ) | 492 | (579 | ) | 1,213 | ||||||||||
Other | 1,264 | 727 | 2,035 | 2,139 | ||||||||||||
Total non-interest income | 3,512 | 4,959 | 7,824 | 11,675 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and employee benefits | 16,403 | 16,182 | 33,187 | 32,922 | ||||||||||||
Net (loss)/gain on deferred compensation benefits | (991 | ) | 492 | (579 | ) | 1,213 | ||||||||||
Occupancy | 1,150 | 1,178 | 2,304 | 2,409 | ||||||||||||
Data Processing | 1,233 | 1,213 | 2,448 | 2,437 | ||||||||||||
FDIC insurance | 361 | 298 | 710 | 585 | ||||||||||||
Marketing | 340 | 418 | 656 | 606 | ||||||||||||
Legal | 405 | 289 | 684 | 400 | ||||||||||||
Other | 4,130 | 3,533 | 7,409 | 6,575 | ||||||||||||
Total non-interest expense | 23,031 | 23,603 | 46,819 | 47,147 | ||||||||||||
INCOME BEFORE INCOME TAXES | 23,700 | 21,393 | 46,433 | 43,606 | ||||||||||||
Income tax expense | 5,257 | 5,240 | 10,932 | 10,740 | ||||||||||||
NET INCOME | $ | 18,443 | $ | 16,153 | $ | 35,501 | $ | 32,866 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 23.58 | $ | 20.45 | $ | 45.28 | $ | 41.62 | ||||||||
Diluted | $ | 23.58 | $ | 20.45 | $ | 45.28 | $ | 41.62 | ||||||||
Weighted average number of common shares | ||||||||||||||||
Basic | 781,880 | 789,646 | 783,976 | 789,646 | ||||||||||||
Diluted | 781,880 | 789,646 | 783,976 | 789,646 |
Assets | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||
Cash and Cash Equivalents: | ||||||||||||
Cash and Due from Banks | $ | 66,503 | $ | 66,327 | $ | 58,810 | ||||||
Interest Bearing Deposits with Banks | 804,260 | 317,510 | 299,558 | |||||||||
Total Cash and Cash Equivalents | 870,763 | 383,837 | 358,368 | |||||||||
Investment Securities: | ||||||||||||
Available-for-Sale | 333,151 | 807,732 | 568,536 | |||||||||
Held-to-Maturity, fair value $540,308, $70,049 and $71,055, respectively | 550,618 | 68,933 | 69,913 | |||||||||
Total Investment Securities | 883,769 | 876,665 | 638,449 | |||||||||
Loans & Leases: | 3,139,801 | 3,099,592 | 3,111,931 | |||||||||
Less: Allowance for Credit Losses | 60,303 | 58,862 | 56,798 | |||||||||
Loans & Leases, Net | 3,079,498 | 3,040,730 | 3,055,133 | |||||||||
Premises and Equipment, Net | 48,580 | 50,147 | 49,214 | |||||||||
Bank Owned Life Insurance, Net | 70,852 | 69,235 | 68,705 | |||||||||
Interest Receivable and Other Assets | 149,296 | 129,839 | 131,745 | |||||||||
Total Assets | $ | 5,102,758 | $ | 4,550,453 | $ | 4,301,614 | ||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Demand | $ | 1,694,431 | $ | 1,475,425 | $ | 1,340,797 | ||||||
Interest Bearing Transaction | 1,077,569 | 902,487 | 812,166 | |||||||||
Savings and Money Market | 1,402,560 | 1,260,487 | 1,201,566 | |||||||||
Time | 393,834 | 421,868 | 460,248 | |||||||||
Total Deposits | 4,568,394 | 4,060,267 | 3,814,777 | |||||||||
Subordinated Debentures | 10,310 | 10,310 | 10,310 | |||||||||
Interest Payable and Other Liabilities | 69,863 | 56,211 | 59,626 | |||||||||
Total Liabilities | 4,648,567 | 4,126,788 | 3,884,713 | |||||||||
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 September 30, 2021, December 31, 2020 and September 30, 2020, Respectively | 8 | 8 | 8 | |||||||||
Additional Paid-In Capital | 77,516 | 77,516 | 80,350 | |||||||||
Retained Earnings | 377,523 | 333,070 | 323,524 | |||||||||
Accumulated Other Comprehensive (Loss) Income, Net of Taxes | (856 | ) | 13,071 | 13,019 | ||||||||
Total Shareholders’ Equity | 454,191 | 423,665 | 416,901 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 5,102,758 | $ | 4,550,453 | $ | 4,301,614 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income | $ | 18,443 | $ | 16,153 | $ | 35,501 | $ | 32,866 | ||||||||
Other comprehensive income | ||||||||||||||||
Unrealized holding (losses)/gains on securities available-for-sale | (11,434 | ) | 3,957 | (27,299 | ) | (14,609 | ) | |||||||||
Reclassification adjustment for (gains)/losses on available-for-sale securities | (2 | ) | (714 | ) | (2 | ) | (2,554 | ) | ||||||||
Amortization of unrealized loss on securities transferred to held-to-maturity | (64 | ) | (180 | ) | (141 | ) | (238 | ) | ||||||||
Net unrealized holding (losses)/gains on securities available-for-sale | (11,500 | ) | 3,063 | (27,442 | ) | (17,401 | ) | |||||||||
Income tax benefit/(expense) | 3,400 | (905 | ) | 8,113 | 5,144 | |||||||||||
Other comprehensive (loss)/income, net of tax | (8,100 | ) | 2,158 | (19,329 | ) | (12,257 | ) | |||||||||
Total comprehensive income | $ | 10,343 | $ | 18,311 | $ | 16,172 | $ | 20,609 |
(in thousands except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Interest Income | ||||||||||||||||
Interest and Fees on Loans & Leases | $ | 36,088 | $ | 36,409 | $ | 109,839 | $ | 104,880 | ||||||||
Interest on Deposits with Banks | 328 | 81 | 595 | 1,093 | ||||||||||||
Interest on Investment Securities: | ||||||||||||||||
Taxable | 3,283 | 2,889 | 10,781 | 9,216 | ||||||||||||
Exempt from Federal Tax | 399 | 414 | 1,238 | 1,260 | ||||||||||||
Total Interest Income | 40,098 | 39,793 | 122,453 | 116,449 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 929 | 2,011 | 3,200 | 7,613 | ||||||||||||
Subordinated Debentures | 78 | 83 | 236 | 296 | ||||||||||||
Total Interest Expense | 1,007 | 2,094 | 3,436 | 7,909 | ||||||||||||
Net Interest Income | 39,091 | 37,699 | 119,017 | 108,540 | ||||||||||||
Provision for Credit Losses | 0 | 1,700 | 1,250 | 2,000 | ||||||||||||
Net Interest Income After Provision for Loan Losses | 39,091 | 35,999 | 117,767 | 106,540 | ||||||||||||
Non-Interest Income | ||||||||||||||||
Service Charges on Deposit Accounts | 808 | 654 | 2,125 | 1,948 | ||||||||||||
Net Gain on Sale of Investment Securities | 0 | 0 | 2,554 | 13 | ||||||||||||
Increase in Cash Surrender Value of Bank Owned Life Insurance | 549 | 528 | 1,616 | 1,557 | ||||||||||||
Debit Card and ATM Fees | 1,788 | 1,465 | 5,173 | 4,044 | ||||||||||||
Net Gain on Deferred Compensation Investments | 615 | 1,022 | 1,828 | 883 | ||||||||||||
Other | 1,100 | 870 | 3,641 | 2,535 | ||||||||||||
Total Non-Interest Income | 4,860 | 4,539 | 16,937 | 10,980 | ||||||||||||
Non-Interest Expense | ||||||||||||||||
Salaries and Employee Benefits | 14,453 | 13,606 | 47,375 | 42,269 | ||||||||||||
Net Gain on Deferred Compensation Investments | 615 | 1,022 | 1,828 | 883 | ||||||||||||
Occupancy | 1,145 | 1,186 | 3,554 | 3,429 | ||||||||||||
Equipment | 1,251 | 1,272 | 3,688 | 3,726 | ||||||||||||
Marketing | 63 | 245 | 669 | 515 | ||||||||||||
Legal | 85 | 23 | 485 | 100 | ||||||||||||
FDIC Insurance | 317 | 249 | 902 | 256 | ||||||||||||
Other | 2,656 | 3,180 | 9,231 | 9,182 | ||||||||||||
Total Non-Interest Expense | 20,585 | 20,783 | 67,732 | 60,360 | ||||||||||||
Income Before Provision for Income Taxes | 23,366 | 19,755 | 66,972 | 57,160 | ||||||||||||
Provision for Income Taxes | 5,864 | 4,945 | 16,604 | 13,919 | ||||||||||||
Net Income | $ | 17,502 | $ | 14,810 | $ | 50,368 | $ | 43,241 | ||||||||
Basic and Diluted Earnings Per Common Share | $ | 22.16 | $ | 18.66 | $ | 63.79 | $ | 54.49 |
(Dollars in thousands, except share amounts) | Common Shares | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Total | ||||||||||||||||||
Balance as of April 1, 2022 | 785,146 | $ | 8 | $ | 73,264 | $ | 404,389 | $ | (12,948 | ) | $ | 464,713 | ||||||||||||
Net income | - | 0 | 0 | 18,443 | 0 | 18,443 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | 0 | 0 | 0 | (8,100 | ) | (8,100 | ) | ||||||||||||||||
Cash dividends declared ($7.85 per share) | - | 0 | 0 | (6,110 | ) | 0 | (6,110 | ) | ||||||||||||||||
Repurchase of common stock | (7,956 | ) | 0 | (7,593 | ) | 0 | 0 | (7,593 | ) | |||||||||||||||
Balance as of June 30, 2022 | 777,190 | $ | 8 | $ | 65,671 | $ | 416,722 | $ | (21,048 | ) | $ | 461,353 | ||||||||||||
Balance as of April 1, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 349,790 | $ | (1,344 | ) | $ | 425,970 | ||||||||||||
Net income | - | 0 | 0 | 16,153 | 0 | 16,153 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | 0 | 0 | 0 | 2,158 | 2,158 | ||||||||||||||||||
Cash dividends declared ($7.50 per share) | - | 0 | 0 | (5,922 | ) | 0 | (5,922 | ) | ||||||||||||||||
Balance as of June 30, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 360,021 | $ | 814 | $ | 438,359 |
(Dollars in thousands, except share amounts) | Common Shares | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Total | ||||||||||||||||||
Balance as of January 1, 2022 | 789,646 | $ | 8 | $ | 77,516 | $ | 387,331 | $ | (1,719 | ) | $ | 463,136 | ||||||||||||
Net income | - | 0 | 0 | 35,501 | 0 | 35,501 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | 0 | 0 | 0 | (19,329 | ) | (19,329 | ) | ||||||||||||||||
Cash dividends declared ($7.85 per share) | - | 0 | 0 | (6,110 | ) | 0 | (6,110 | ) | ||||||||||||||||
Repurchase of common stock | (12,456 | ) | 0 | (11,845 | ) | 0 | 0 | (11,845 | ) | |||||||||||||||
Balance as of June 30, 2022 | 777,190 | $ | 8 | $ | 65,671 | $ | 416,722 | $ | (21,048 | ) | $ | 461,353 | ||||||||||||
Balance as of January 1, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 333,070 | $ | 13,071 | $ | 423,665 | |||||||||||||
Net income | - | 0 | 0 | 32,866 | 0 | 32,866 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | 0 | 0 | 0 | (12,257 | ) | (12,257 | ) | ||||||||||||||||
Cash dividends declared ($7.50 per share) | - | 0 | 0 | (5,922 | ) | 0 | (5,922 | ) | ||||||||||||||||
Cash dividends returned | - | 0 | 0 | 7 | 0 | 7 | ||||||||||||||||||
Balance as of June 30, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 360,021 | $ | 814 | $ | 438,359 |
(in thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net Income | $ | 17,502 | $ | 14,810 | $ | 50,368 | $ | 43,241 | ||||||||
Other Comprehensive Income | ||||||||||||||||
Increase in Net Unrealized (Loss) Gain on Available-for-Sale Securities | (2,237 | ) | (2,325 | ) | (16,846 | ) | 13,803 | |||||||||
Deferred Tax Provision Benefit (Expense) Related to Unrealized (Loss) Gains | 662 | 688 | 4,981 | (4,080 | ) | |||||||||||
Reclassification Adjustment for Realized Gains on Available-for-Sale Securities Included in Net Income | 0 | 0 | (2,554 | ) | (13 | ) | ||||||||||
Deferred Tax Related to Reclassification Adjustment | 0 | 0 | 755 | 4 | ||||||||||||
Amortization of Unrealized Loss on Securities Transferred to Held to Maturity | (135 | ) | 0 | (373 | ) | 0 | ||||||||||
Deferred Tax Benefit Related to Loss on Securities Transferred | 40 | 0 | 110 | 0 | ||||||||||||
Total Other Comprehensive (Loss) Income | (1,670 | ) | (1,637 | ) | (13,927 | ) | 9,714 | |||||||||
Comprehensive Income | $ | 15,832 | $ | 13,173 | $ | 36,441 | $ | 52,955 |
For the three and nine months ended September 30, 2021 and 2020 | ||||||||||||||||||||||||
(in thousands except share data) | Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, net | Total Shareholders’ Equity | ||||||||||||||||||
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||
Balance, June 30, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 360,021 | $ | 814 | $ | 438,359 | |||||||||||||
Net Income | 0 | 17,502 | 0 | 17,502 | ||||||||||||||||||||
Other Comprehensive Loss | 0 | 0 | 0 | (1,670 | ) | (1,670 | ) | |||||||||||||||||
Balance, September 30, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 377,523 | $ | (856 | ) | $ | 454,191 | ||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||
Balance, June 30, 2020 | 793,556 | $ | 8 | $ | 80,350 | $ | 308,714 | $ | 14,656 | $ | 403,728 | |||||||||||||
Net Income | 0 | 14,810 | 0 | 14,810 | ||||||||||||||||||||
Other Comprehensive Loss | 0 | 0 | 0 | (1,637 | ) | (1,637 | ) | |||||||||||||||||
Balance, September 30, 2020 | 793,556 | $ | 8 | $ | 80,350 | $ | 323,524 | $ | 13,019 | $ | 416,901 |
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||
Balance, December 31, 2020 | 789,646 | $ | 8 | $ | 77,516 | $ | 333,070 | $ | 13,071 | $ | 423,665 | |||||||||||||
Net Income | - | 0 | 50,368 | 0 | 50,368 | |||||||||||||||||||
Cash Dividends Declared on Common Stock ($7.50 per share) | 0 | 0 | (5,922 | ) | 0 | (5,922 | ) | |||||||||||||||||
Cash Dividends Returned | 0 | 0 | 7 | 0 | 7 | |||||||||||||||||||
Other Comprehensive Loss | 0 | 0 | 0 | (13,927 | ) | (13,927 | ) | |||||||||||||||||
Balance, September 30, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 377,523 | $ | (856 | ) | $ | 454,191 | ||||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||
Balance, December 31, 2019 | 793,033 | $ | 8 | $ | 79,947 | $ | 286,036 | $ | 3,305 | $ | 369,296 | |||||||||||||
Net Income | - | 0 | 43,241 | 0 | 43,241 | |||||||||||||||||||
Cash Dividends Declared on Common Stock ($7.25 per share) | 0 | 0 | (5,753 | ) | 0 | (5,753 | ) | |||||||||||||||||
Issuance of Common Stock | 523 | 0 | 403 | 0 | 0 | 403 | ||||||||||||||||||
Other Comprehensive Income | 0 | 0 | 0 | 9,714 | 9,714 | |||||||||||||||||||
Balance, September 30, 2020 | 793,556 | $ | 8 | $ | 80,350 | $ | 323,524 | $ | 13,019 | $ | 416,901 |
Nine Months | ||||||||
Ended September 30, | ||||||||
(in thousands) | 2021 | 2020 | ||||||
Operating Activities: | ||||||||
Net Income | $ | 50,368 | $ | 43,241 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
Provision for Credit Losses | 1,250 | 2,000 | ||||||
Depreciation and Amortization | 1,971 | 2,117 | ||||||
Net Amortization of Investment Security Premiums & Discounts | 1,133 | 741 | ||||||
Amortization of Core Deposit Intangible | 458 | 470 | ||||||
Accretion of Discount on Acquired Loans | (62 | ) | (134 | ) | ||||
Net (Gain) on Sale of Investment Securities | (2,554 | ) | (13 | ) | ||||
Net (Gain) on Sale of Property & Equipment | (31 | ) | (38 | ) | ||||
Net Change in Operating Assets & Liabilities: | ||||||||
Net (Increase) in Interest Receivable and Other Assets | (11,211 | ) | (6,269 | ) | ||||
Net Increase (Decrease) in Interest Payable and Other Liabilities | 10,738 | (1,773 | ) | |||||
Net Cash Provided by Operating Activities | 52,060 | 40,342 | ||||||
Investing Activities: | ||||||||
Purchase of Investment Securities Available-for-Sale | (257,228 | ) | (273,408 | ) | ||||
Proceeds from Sold, Matured or Called Securities Available-for-Sale | 397,454 | 225,332 | ||||||
Purchase of Investment Securities Held-to-Maturity | (194,332 | ) | (19,056 | ) | ||||
Proceeds from Matured or Called Securities Held-to-Maturity | 29,042 | 9,341 | ||||||
Net Loans & Leases Paid, Originated or Acquired | (39,956 | ) | (438,984 | ) | ||||
Additions to Premises and Equipment, Net | (1,001 | ) | (6,108 | ) | ||||
Purchase of Other Investments | (4,516 | ) | (4,935 | ) | ||||
Redemption of Other Investment | 2,556 | 0 | ||||||
Proceeds from Sale of Property & Equipment | 635 | 81 | ||||||
Net Cash Used in Investing Activities | (67,346 | ) | (507,737 | ) | ||||
Financing Activities: | ||||||||
Net Increase in Deposits | 508,127 | 536,758 | ||||||
Cash Dividends | (5,922 | ) | (5,753 | ) | ||||
Cash Dividends Return | 7 | 0 | ||||||
Net Cash Provided by Financing Activities | 502,212 | 531,005 | ||||||
Net Change in Cash and Cash Equivalents | 486,926 | 63,610 | ||||||
Cash and Cash Equivalents at Beginning of Period | 383,837 | 294,758 | ||||||
Cash and Cash Equivalents at End of Period | $ | 870,763 | $ | 358,368 | ||||
Supplementary Data | ||||||||
Cash Payments Made for Income Taxes | $ | 22,530 | $ | 7,443 | ||||
Issuance of Common Stock to the Bank’s Non-Qualified Retirement Plans | $ | 0 | $ | 403 | ||||
Interest Paid | $ | 4,369 | $ | 9,085 | ||||
Supplementary Noncash Disclosure | ||||||||
Investment Securities Available-for-Sale Transferred to Held-to-Maturity | $ | 316,925 | $ | 0 | ||||
Lease Liabilities Arising from Obtaining Right-of-Use Assets | $ | 302 | $ | 0 |
Six Months Ended June 30, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 35,501 | $ | 32,866 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for credit losses | 1,500 | 1,250 | ||||||
Depreciation and amortization | 1,270 | 1,318 | ||||||
Net amortization of securities premiums and discounts | 275 | 797 | ||||||
Increase in cash surrender value of BOLI | (1,102 | ) | (1,067 | ) | ||||
Increase in deferred income taxes, net | (1,127 | ) | (1,178 | ) | ||||
Gains on sale of securities available-for-sale | (2 | ) | (2,554 | ) | ||||
Net changes in: | ||||||||
Other assets | (7,797 | ) | (18,274 | ) | ||||
Other liabilities | 22,823 | 14,280 | ||||||
Net cash provided by operating activities | 51,341 | 27,438 | ||||||
Cash flows from investing activities: | ||||||||
Net change in loans held for investment | (12,568 | ) | 66,550 | |||||
Purchase of available-for-sale securities | (10,090 | ) | (257,225 | ) | ||||
Purchase of held-to-maturity securities | (168,149 | ) | (124,070 | ) | ||||
Maturities/sales of available-for-sale securities | 27,679 | 381,117 | ||||||
Maturities of held-to-maturity securities | 36,641 | 13,140 | ||||||
Purchase of premises and equipment | (526 | ) | (377 | ) | ||||
Purchase of other investments | (3,440 | ) | (1,656 | ) | ||||
Proceeds from sale of assets | 34 | 74 | ||||||
Net cash provided by investing activities | (130,419 | ) | 77,553 | |||||
Cash flows from financing activities: | ||||||||
Net increase in deposits | 129,361 | 351,797 | ||||||
Cash dividends paid | (6,110 | ) | (5,915 | ) | ||||
Net cash used in share repurchase of common stock | (11,845 | ) | 0 | |||||
Net provided by financing activities | 111,406 | 345,882 | ||||||
Net change in cash and cash equivalents | 32,328 | 450,873 | ||||||
Cash and cash equivalents, beginning of period | 715,460 | 383,837 | ||||||
Cash and cash equivalents, end of period | $ | 747,788 | $ | 834,710 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 2,580 | $ | 3,220 | ||||
Income taxes paid | $ | 9,343 | $ | 19,181 | ||||
Supplemental disclosures of non-cash transactions: | ||||||||
Investment securities available-for-sale transferred to held-to-maturity | $ | 0 | $ | 316,925 |
January-2022 | ||||||||||||
(Dollars in thousands) | Reported under ASC 326 | Reported Pre- Adoption | Impact of ASC 326 Adoption | |||||||||
Allowance for credit losses: | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | (17,379 | ) | $ | (28,536 | ) | $ | 11,157 | ||||
Agricultural | (14,580 | ) | (9,613 | ) | (4,967 | ) | ||||||
Residential and home equity | (5,879 | ) | (2,847 | ) | (3,032 | ) | ||||||
Construction | (3,311 | ) | (1,456 | ) | (1,855 | ) | ||||||
Total real estate | (41,149 | ) | (42,452 | ) | 1,303 | |||||||
Commercial & industrial | (11,417 | ) | (11,489 | ) | 72 | |||||||
Agricultural | (6,363 | ) | (5,465 | ) | (898 | ) | ||||||
Commercial leases | (1,567 | ) | (938 | ) | (629 | ) | ||||||
Consumer and other | (511 | ) | (663 | ) | 152 | |||||||
Total allowance for credit losses | $ | (61,007 | ) | $ | (61,007 | ) | $ | 0 |
(in thousands) | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | |||||||||||||||||||||
Core Deposit Intangible Amortization | $ | 153 | $ | 593 | $ | 573 | $ | 549 | $ | 522 | $ | 1,165 | $ | 3,555 |
Amortized Cost | Gross Unrealized | Fair Value | ||||||||||||||
September 30, 2021 | Gains | Losses | ||||||||||||||
U.S. Treasury Notes | $ | 9,922 | $ | 228 | $ | 0 | $ | 10,150 | ||||||||
U.S. Government Agency SBA | 6,892 | 70 | 43 | 6,919 | ||||||||||||
Mortgage-Backed Securities (1)(2) | 270,667 | 4,243 | 5,341 | 269,569 | ||||||||||||
Other | 46,513 | 0 | 0 | 46,513 | ||||||||||||
Total | $ | 333,994 | $ | 4,541 | $ | 5,384 | $ | 333,151 |
Available-for-Sale Securities | Gross Unrealized | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of June 30, 2022 | ||||||||||||||||
U.S. Treasury notes | $ | 4,968 | $ | 0 | $ | 16 | $ | 4,952 | ||||||||
U.S. Government-sponsored securities | 5,402 | 65 | 26 | 5,441 | ||||||||||||
Mortgage-backed securities (1) | 232,368 | 116 | 28,877 | 203,607 | ||||||||||||
Collateralized mortgage obligations (1) | 1,525 | 0 | 23 | 1,502 | ||||||||||||
Corporate securities | 10,049 | 0 | 523 | 9,526 | ||||||||||||
Other | 310 | 0 | 0 | 310 | ||||||||||||
Total available-for-sale securities | $ | 254,622 | $ | 181 | $ | 29,465 | $ | 225,338 |
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 Cost | Gross Unrealized | Fair Value | ||||||||||||||
December 31, 2020 | Gains | Losses | ||||||||||||||
U.S. Treasury Notes | $ | 14,859 | $ | 429 | $ | 0 | $ | 15,288 | ||||||||
U.S. 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 Cost | Gross Unrealized | Fair Value | ||||||||||||||
September 30, 2020 | Gains | Losses | ||||||||||||||
U.S. Treasury Notes | $ | 94,830 | $ | 512 | $ | 0 | $ | 95,342 | ||||||||
U.S. Government Agency SBA | 8,530 | 1 | 102 | 8,429 | ||||||||||||
Mortgage-Backed Securities (1) | 421,263 | 18,050 | 39 | 439,274 | ||||||||||||
Corporate Securities | 25,002 | 159 | 98 | 25,063 | ||||||||||||
Other | 428 | 0 | 0 | 428 | ||||||||||||
Total | $ | 550,053 | $ | 18,722 | $ | 239 | $ | 568,536 |
Held-to-Maturity Securities | Gross Unrealized | |||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Allowance for Credit Losses | |||||||||||||||
As of June 30, 2022 | ||||||||||||||||||||
Municipal securities | $ | 62,459 | $ | 33 | $ | 151 | $ | 62,341 | $ | 393 | ||||||||||
Mortgage-backed securities (1) | 721,510 | 0 | 104,726 | 616,784 | 0 | |||||||||||||||
Collateralized mortgage obligations (1) | 84,414 | 0 | 8,705 | 75,709 | 0 | |||||||||||||||
Total held-to-maturity securities | $ | 868,383 | $ | 33 | $ | 113,582 | $ | 754,834 | $ | 393 |
Amortized Cost | Gross Unrealized | Fair Value | ||||||||||||||
September 30, 2021 | Gains | Losses | ||||||||||||||
Obligations of States and Political Subdivisions | $ | 62,936 | $ | 768 | $ | 0 | $ | 63,704 | ||||||||
Mortgage Backed Securities (1)(2) | 487,682 | 48 | 11,126 | 476,604 | ||||||||||||
Total | $ | 550,618 | $ | 816 | $ | 11,126 | $ | 540,308 |
Amortized Cost | Gross Unrealized | Fair Value | ||||||||||||||
December 31, 2020 | Gains | Losses | ||||||||||||||
Obligations of States and Political Subdivisions | $ | 68,933 | $ | 1,116 | $ | 0 | $ | 70,049 | ||||||||
Total | $ | 68,933 | $ | 1,116 | $ | 0 | $ | 70,049 |
Amortized Value | Gross Unrealized | Fair Value | ||||||||||||||
September 30, 2020 | Gains | Losses | ||||||||||||||
Obligations of States and Political Subdivisions | $ | 69,913 | $ | 1,142 | $ | 0 | $ | 71,055 | ||||||||
Total | $ | 69,913 | $ | 1,142 | $ | 0 | $ | 71,055 |
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 | |||||||||||||||
September 30, 2021 | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Within one year | $ | 51,503 | $ | 51,569 | $ | 308 | $ | 308 | ||||||||
After one year through five years | 5,100 | 5,262 | 6,969 | 7,012 | ||||||||||||
After five years through ten years | 563 | 566 | 19,543 | 20,254 | ||||||||||||
After ten years | 6,161 | 6,185 | 36,116 | 36,130 | ||||||||||||
63,327 | 63,582 | 62,936 | 63,704 | |||||||||||||
Investment securities not due at a single maturity date: | ||||||||||||||||
Mortgage-Backed securities | 270,667 | 269,569 | 487,682 | 476,604 | ||||||||||||
Total | $ | 333,994 | $ | 333,151 | $ | 550,618 | $ | 540,308 |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
September 30, 2021 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||
U.S. Government Agency SBA | $ | 188 | $ | 1 | $ | 2,141 | $ | 42 | $ | 2,329 | $ | 43 | ||||||||||||
Mortgage-Backed Securities | 171,869 | 5,339 | 116 | 2 | 171,985 | 5,341 | ||||||||||||||||||
Total | $ | 172,057 | $ | 5,340 | $ | 2,257 | $ | 44 | $ | 174,314 | $ | 5,384 | ||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||
Mortgage Backed Securities | 468,360 | 11,126 | 0 | 0 | $ | 468,360 | $ | 11,126 | ||||||||||||||||
Total | $ | 468,360 | $ | 11,126 | $ | 0 | $ | 0 | $ | 468,360 | $ | 11,126 |
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 | ||||||||||||||||||||||||
U.S. 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 | ||||||||||||||||||||||
September 30, 2020 | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||
U.S. Government Agency SBA | $ | 2,312 | $ | 4 | $ | 5,810 | $ | 98 | $ | 8,122 | $ | 102 | ||||||||||||
Mortgage-Backed Securities | 20,741 | 35 | 194 | 4 | 20,935 | 39 | ||||||||||||||||||
Corporate Securities | 10,363 | 98 | 0 | 0 | 10,363 | 98 | ||||||||||||||||||
Total | $ | 33,416 | $ | 137 | $ | 6,004 | $ | 102 | $ | 39,420 | $ | 239 |
Available-for-Sale Securities | As of June 30, 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 June 30, 2022 | ||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,952 | $ | 16 | $ | 0 | $ | 0 | $ | 4,952 | $ | 16 | ||||||||||||
U.S. Government-sponsored securities | 46 | 0 | 1,623 | 26 | 1,669 | 26 | ||||||||||||||||||
Mortgage-backed securities (1) | 90,670 | 6,663 | 103,737 | 22,214 | 194,407 | 28,877 | ||||||||||||||||||
Collateralized mortgage obligations (1) | 1,501 | 23 | 0 | 0 | 1,501 | 23 | ||||||||||||||||||
Corporate securities | 9,526 | 523 | 0 | 0 | 9,526 | 523 | ||||||||||||||||||
Total available-for-sale securities | $ | 106,695 | $ | 7,225 | $ | 105,360 | $ | 22,240 | $ | 212,055 | $ | 29,465 |
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 June 30, 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 June 30, 2022 | ||||||||||||||||||||||||
Municipal securities | $ | 6,862 | $ | 151 | $ | 0 | $ | 0 | $ | 6,862 | $ | 151 | ||||||||||||
Mortgage-backed securities (1) | 404,026 | 57,850 | 212,758 | 46,876 | 616,784 | 104,726 | ||||||||||||||||||
Collateralized mortgage obligations (1) | 73,221 | 8,705 | 0 | 0 | 73,221 | 8,705 | ||||||||||||||||||
Total held-to-maturity securities | $ | 484,109 | $ | 66,706 | $ | 212,758 | $ | 46,876 | $ | 696,867 | $ | 113,582 |
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 | ||||||||||||||||||||||||
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 | $ | 5,290 | $ | 5,274 | $ | 700 | $ | 700 | ||||||||
After one year through five years | 5,120 | 4,842 | 7,089 | 7,074 | ||||||||||||
After five years through ten years | 5,411 | 5,168 | 15,948 | 15,926 | ||||||||||||
After ten years | 4,908 | 4,945 | 38,722 | 38,641 | ||||||||||||
$ | 20,729 | $ | 20,229 | $ | 62,459 | $ | 62,341 | |||||||||
Securities not due at a single maturity date: | ||||||||||||||||
Mortgage-backed securities | 232,368 | 203,607 | 721,510 | 616,784 | ||||||||||||
Collateralized mortgage obligations | 1,525 | 1,502 | 84,414 | 75,709 | ||||||||||||
Total | $ | 254,622 | $ | 225,338 | $ | 868,383 | $ | 754,834 |
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 | ||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||
Breakdown by Category: | ||||||||||||||||||||||||
U.S. Treasury notes | $ | 0 | $ | 0 | $ | 4,952 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
U.S. Government-sponsored securities | 0 | 0 | 5,441 | 0 | 0 | 0 | ||||||||||||||||||
Mortgage-backed securities (1) | 0 | 0 | 203,607 | 0 | 0 | 721,510 | ||||||||||||||||||
Collateralized mortgage obligations (1) | 0 | 0 | 1,502 | 0 | 0 | 84,414 | ||||||||||||||||||
Municipal securities | 0 | 0 | 0 | 19,271 | 149 | 43,039 | ||||||||||||||||||
Corporate securities | 4,738 | 4,788 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other | 0 | 0 | 310 | 0 | 0 | 0 | ||||||||||||||||||
Total Investment Grade | $ | 4,738 | $ | 4,788 | $ | 215,812 | $ | 19,271 | $ | 149 | $ | 848,963 |
For the Six Months Ended June 30, 2022 | ||||||||||||||||
(Dollars in thousands) | Municipal securities | Mortgage- backed securites | Collateralized Mortgage obligation | Total | ||||||||||||
Allowance for credit losses - securities | ||||||||||||||||
Beginning Balance | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Provision for credit losses | 393 | 0 | 0 | 393 | ||||||||||||
Ending Balance | $ | 393 | $ | 0 | $ | 0 | $ | 393 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Proceeds | $ | 1,450 | $ | 50,620 | $ | 301,320 | $ | 53,620 | ||||||||
Gains | 0 | 0 | 5,570 | 13 | ||||||||||||
Losses | 0 | 0 | 3,016 | 0 |
(Dollars in thousands) | Gross Proceeds | Gross Gains | Gross Losses | |||||||||
Six months ended June 30, 2022 | $ | 2,610 | $ | 2 | $ | 0 | ||||||
Six months ended June 30, 2021 | $ | 299,870 | $ | 5,570 | $ | 3,016 |
(in thousands) | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||
Commercial Real Estate | $ | 1,126,230 | $ | 971,326 | $ | 887,999 | ||||
Agricultural Real Estate | 656,337 | 643,014 | 639,172 | |||||||
Real Estate Construction | 178,451 | 185,741 | 186,623 | |||||||
Residential 1st Mortgages | 309,728 | 299,379 | 293,489 | |||||||
Home Equity Lines & Loans | 31,664 | 34,239 | 35,875 | |||||||
Agricultural | 235,085 | 264,372 | 252,031 | |||||||
Commercial | 394,326 | 374,816 | 367,052 | |||||||
Consumer & Other (1) | 129,665 | 235,529 | 359,697 | |||||||
Leases | 90,022 | 103,117 | 105,511 | |||||||
Total Gross Loans & Leases | 3,151,508 | 3,111,533 | 3,127,449 | |||||||
Less: Unearned Income | 11,707 | 11,941 | 15,518 | |||||||
Subtotal | 3,139,801 | 3,099,592 | 3,111,931 | |||||||
Less: Allowance for Credit Losses | 60,303 | 58,862 | 56,798 | |||||||
Net Loans & Leases | $ | 3,079,498 | $ | 3,040,730 | $ | 3,055,133 |
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Loans and leases held for investment, net | ||||||||
Real estate: | ||||||||
Commercial | $ | 1,210,195 | $ | 1,167,516 | ||||
Agricultural | 709,624 | 672,830 | ||||||
Residential and home equity | 371,874 | 350,581 | ||||||
Construction | 162,713 | 177,163 | ||||||
Total real estate | 2,454,406 | 2,368,090 | ||||||
Commercial & industrial | 439,455 | 427,799 | ||||||
Agricultural | 261,856 | 276,684 | ||||||
Commercial leases | 89,095 | 96,971 | ||||||
Consumer and other(1) | 13,588 | 78,367 | ||||||
Total gross loans and leases | 3,258,400 | 3,247,911 | ||||||
Unearned income | (8,514 | ) | (10,734 | ) | ||||
Total net loans and leases | 3,249,886 | 3,237,177 | ||||||
Allowance for credit losses | (62,080 | ) | (61,007 | ) | ||||
Total loans and leases held for investment, net | $ | 3,187,806 | $ | 3,176,170 |
(1) | Includes |
September 30, 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 | (33 | ) | 0 | 0 | (33 | ) | |||||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 74 | 17 | 29 | 83 | 21 | 0 | 0 | 224 | |||||||||||||||||||||||||||||||||
Provision | 1,200 | 794 | (210 | ) | (70 | ) | (129 | ) | (238 | ) | 738 | (23 | ) | (872 | ) | 60 | 1,250 | |||||||||||||||||||||||||||
Ending Balance- September 30, 2021 | $ | 28,879 | $ | 9,427 | $ | 1,433 | $ | 964 | $ | 1,912 | $ | 4,605 | $ | 10,782 | $ | 298 | $ | 859 | $ | 1,144 | $ | 60,303 | ||||||||||||||||||||||
Third Quarter Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- June 30, 2021 | $ | 28,890 | $ | 9,107 | $ | 1,405 | $ | 957 | $ | 1,899 | $ | 4,552 | $ | 9,920 | $ | 281 | $ | 1,639 | $ | 1,579 | $ | 60,229 | ||||||||||||||||||||||
Charge-Offs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (17 | ) | 0 | 0 | (17 | ) | |||||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 15 | 6 | 24 | 38 | 8 | 0 | 0 | 91 | |||||||||||||||||||||||||||||||||
Provision | (11 | ) | 320 | 28 | (8 | ) | 7 | 29 | 824 | 26 | (780 | ) | (435 | ) | 0 | |||||||||||||||||||||||||||||
Ending Balance- September 30, 2021 | $ | 28,879 | $ | 9,427 | $ | 1,433 | $ | 964 | $ | 1,912 | $ | 4,605 | $ | 10,782 | $ | 298 | $ | 859 | $ | 1,144 | $ | 60,303 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 88 | 6 | 0 | 6 | 40 | 0 | 0 | 140 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 28,879 | 9,427 | 1,433 | 876 | 1,906 | 4,605 | 10,776 | 258 | 859 | 1,144 | 60,163 | |||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 1,114,149 | $ | 656,337 | $ | 178,451 | $ | 309,728 | $ | 31,664 | $ | 235,085 | $ | 394,326 | $ | 129,665 | $ | 90,396 | $ | 0 | $ | 3,139,801 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 74 | 0 | 0 | 1,764 | 112 | 6,129 | 218 | 178 | 0 | 0 | 8,475 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | $ | 1,114,075 | $ | 656,337 | $ | 178,451 | $ | 307,964 | $ | 31,552 | $ | 228,956 | $ | 394,108 | $ | 129,487 | $ | 90,396 | $ | 0 | $ | 3,131,326 |
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 |
September 30, 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 | (426 | ) | (54 | ) | 0 | 0 | (487 | ) | |||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 49 | 65 | 54 | 80 | 25 | 0 | 0 | 273 | |||||||||||||||||||||||||||||||||
Provision | 13,236 | (6,336 | ) | (381 | ) | 45 | (617 | ) | (3,458 | ) | (1,127 | ) | (63 | ) | (248 | ) | 949 | 2,000 | ||||||||||||||||||||||||||
Ending Balance- September 30, 2020 | $ | 24,289 | $ | 8,792 | $ | 1,568 | $ | 949 | $ | 2,116 | $ | 4,672 | $ | 9,993 | $ | 364 | $ | 2,914 | $ | 1,141 | $ | 56,798 | ||||||||||||||||||||||
Third Quarter Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- June 30, 2020 | $ | 21,423 | $ | 9,021 | $ | 1,452 | $ | 1,771 | $ | 2,239 | $ | 4,790 | $ | 10,043 | $ | 359 | $ | 2,800 | $ | 1,160 | $ | 55,058 | ||||||||||||||||||||||
Charge-Offs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (25 | ) | 0 | 0 | (25 | ) | |||||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 0 | 3 | 31 | 24 | 0 | 7 | 0 | 0 | 65 | |||||||||||||||||||||||||||||||||
Provision | 2,866 | (229 | ) | 116 | (825 | ) | (154 | ) | (142 | ) | (50 | ) | 23 | 114 | (19 | ) | 1,700 | |||||||||||||||||||||||||||
Ending Balance- September 30, 2020 | $ | 24,289 | $ | 8,792 | $ | 1,568 | $ | 949 | $ | 2,116 | $ | 4,672 | $ | 9,993 | $ | 364 | $ | 2,914 | $ | 1,141 | $ | 56,798 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 118 | 8 | 92 | 13 | 56 | 0 | 0 | 287 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | 24,289 | 8,792 | 1,568 | 831 | 2,108 | 4,580 | 9,980 | 308 | 2,914 | 1,141 | 56,511 | |||||||||||||||||||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | 871,623 | $ | 639,172 | $ | 186,623 | $ | 293,489 | $ | 35,875 | $ | 252,031 | $ | 367,052 | $ | 359,697 | $ | 106,369 | $ | 0 | $ | 3,111,931 | ||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment | 108 | 5,629 | 0 | 2,390 | 164 | 498 | 235 | 194 | 0 | 0 | 9,218 | |||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment | $ | 871,515 | $ | 633,543 | $ | 186,623 | $ | 291,099 | $ | 35,711 | $ | 251,533 | $ | 366,817 | $ | 359,503 | $ | 106,369 | $ | 0 | $ | 3,102,713 |
September 30, 2021 | Pass(1) | Special Mention | Substandard | Total Loans & Leases | ||||||||||||
Loans & Leases: | ||||||||||||||||
Commercial Real Estate | $ | 1,098,929 | $ | 7,371 | $ | 7,849 | $ | 1,114,149 | ||||||||
Agricultural Real Estate | 646,486 | 3,312 | 6,539 | 656,337 | ||||||||||||
Real Estate Construction | 178,451 | 0 | 0 | 178,451 | ||||||||||||
Residential 1st Mortgages | 308,960 | 0 | 768 | 309,728 | ||||||||||||
Home Equity Lines & Loans | 31,490 | 0 | 174 | 31,664 | ||||||||||||
Agricultural | 233,493 | 1,018 | 574 | 235,085 | ||||||||||||
Commercial | 384,660 | 8,970 | 696 | 394,326 | ||||||||||||
Consumer & Other | 129,450 | 0 | 215 | 129,665 | ||||||||||||
Leases | 90,396 | 0 | 0 | 90,396 | ||||||||||||
Total | $ | 3,102,315 | $ | 20,671 | $ | 16,815 | $ | 3,139,801 |
December 31, 2020 | Pass(1) | Special Mention | Substandard | Total Loans & Leases | ||||||||||||
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 & 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 |
September 30, 2020 | Pass(1) | Special Mention | Substandard | Total Loans & Leases | ||||||||||||
Loans & Leases: | ||||||||||||||||
Commercial Real Estate | $ | 861,874 | $ | 5,239 | $ | 4,510 | $ | 871,623 | ||||||||
Agricultural Real Estate | 624,859 | 1,525 | 12,788 | 639,172 | ||||||||||||
Real Estate Construction | 186,623 | 0 | 0 | 186,623 | ||||||||||||
Residential 1st Mortgages | 292,792 | 0 | 697 | 293,489 | ||||||||||||
Home Equity Lines & Loans | 35,691 | 0 | 184 | 35,875 | ||||||||||||
Agricultural | 251,108 | 0 | 923 | 252,031 | ||||||||||||
Commercial | 364,465 | 1,316 | 1,271 | 367,052 | ||||||||||||
Consumer & Other | 359,194 | 0 | 503 | 359,697 | ||||||||||||
Leases | 106,369 | 0 | 0 | 106,369 | ||||||||||||
Total | $ | 3,082,975 | $ | 8,080 | $ | 20,876 | $ | 3,111,931 |
September 30, 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 | $ | 453 | $ | 0 | $ | 0 | $ | 0 | $ | 453 | $ | 1,113,696 | $ | 1,114,149 | ||||||||||||||
Agricultural Real Estate | 0 | 0 | 0 | 19 | 19 | 656,318 | 656,337 | |||||||||||||||||||||
Real Estate Construction | 0 | 0 | 0 | 0 | 0 | 178,451 | 178,451 | |||||||||||||||||||||
Residential 1st Mortgages | 102 | 0 | 0 | 0 | 102 | 309,626 | 309,728 | |||||||||||||||||||||
Home Equity Lines & Loans | 0 | 0 | 0 | 0 | 0 | 31,664 | 31,664 | |||||||||||||||||||||
Agricultural | 0 | 0 | 0 | 497 | 497 | 234,588 | 235,085 | |||||||||||||||||||||
Commercial | 50 | 0 | 0 | 0 | 50 | 394,276 | 394,326 | |||||||||||||||||||||
Consumer & Other | 5 | 0 | 0 | 0 | 5 | 129,660 | 129,665 | |||||||||||||||||||||
Leases | 0 | 0 | 0 | 0 | 0 | 90,396 | 90,396 | |||||||||||||||||||||
Total | $ | 610 | $ | 0 | $ | 0 | $ | 516 | $ | 1,126 | $ | 3,138,675 | $ | 3,139,801 |
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 & 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 |
June 30, 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 | $ | 1,200,516 | $ | 0 | $ | 0 | $ | 1,674 | $ | 1,674 | $ | 1,202,190 | ||||||||||||
Agricultural | 709,149 | 0 | 0 | 475 | 475 | 709,624 | ||||||||||||||||||
Residential and home equity | 371,847 | 27 | 0 | 0 | 27 | 371,874 | ||||||||||||||||||
Construction | 162,713 | 0 | 0 | 0 | 0 | 162,713 | ||||||||||||||||||
Total real estate | 2,444,225 | 27 | 0 | 2,149 | 2,176 | 2,446,401 | ||||||||||||||||||
Commercial & industrial | 439,258 | 197 | 0 | 0 | 197 | 439,455 | ||||||||||||||||||
Agricultural | 260,977 | 0 | 0 | 879 | 879 | 261,856 | ||||||||||||||||||
Commercial leases | 88,586 | 0 | 0 | 0 | 0 | 88,586 | ||||||||||||||||||
Consumer and other | 13,578 | 10 | 0 | 0 | 10 | 13,588 | ||||||||||||||||||
Total loans and leases, net | $ | 3,246,624 | $ | 234 | $ | 0 | $ | 3,028 | $ | 3,262 | $ | 3,249,886 |
September 30, 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 | $ | 871,623 | $ | 871,623 | ||||||||||||||
Agricultural Real Estate | 0 | 0 | 0 | 498 | 498 | 638,674 | 639,172 | |||||||||||||||||||||
Real Estate Construction | 85 | 0 | 0 | 0 | 85 | 186,538 | 186,623 | |||||||||||||||||||||
Residential 1st Mortgages | 0 | 0 | 0 | 0 | 0 | 293,489 | 293,489 | |||||||||||||||||||||
Home Equity Lines & Loans | 0 | 0 | 0 | 0 | 0 | 35,875 | 35,875 | |||||||||||||||||||||
Agricultural | 0 | 0 | 0 | 0 | 0 | 252,031 | 252,031 | |||||||||||||||||||||
Commercial | 547 | 0 | 0 | 0 | 547 | 366,505 | 367,052 | |||||||||||||||||||||
Consumer & Other | 67 | 0 | 0 | 0 | 67 | 359,630 | 359,697 | |||||||||||||||||||||
Leases | 0 | 0 | 0 | 0 | 0 | 106,369 | 106,369 | |||||||||||||||||||||
Total | $ | 699 | $ | 0 | $ | 0 | $ | 498 | $ | 1,197 | $ | 3,110,734 | $ | 3,111,931 |
December 31, 2021 | ||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- accrual | Total Past Due | Total | ||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,156,879 | $ | 459 | $ | 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 |
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Non-accrual loans and leases: | ||||||||
Non-accrual loans and leases, not TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 1,674 | $ | 0 | ||||
Agricultural | 475 | 18 | ||||||
Residential and home equity | 0 | 0 | ||||||
Construction | 0 | 0 | ||||||
Total real estate | 2,149 | 18 | ||||||
Commercial & industrial | 0 | 0 | ||||||
Agricultural | 879 | 0 | ||||||
Commercial leases | 0 | 0 | ||||||
Consumer and other | 0 | 0 | ||||||
Subtotal | 3,028 | 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 | $ | 3,028 | $ | 516 |
(Dollars in thousands) | June 30, 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 | 1,334 | 1,522 | ||||||
Construction | 0 | 0 | ||||||
Total real estate | 1,334 | 1,563 | ||||||
Commercial & industrial | 55 | 260 | ||||||
Agricultural | 0 | 0 | ||||||
Commercial leases | 0 | 0 | ||||||
Consumer and other | 0 | 1 | ||||||
Subtotal | 1,389 | 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 | $ | 1,389 | $ | 2,322 |
June 30, 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 | 4 | 266 | 0 | 0 | 4 | 266 | ||||||||||||||||||
2019 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Thereafter | 8 | 1,075 | 0 | 0 | 8 | 1,075 | ||||||||||||||||||
Total | 13 | $ | 1,389 | 0 | $ | 0 | 13 | $ | 1,389 |
June 30, 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 | $ | 1,187,461 | $ | 8,629 | $ | 6,100 | $ | 0 | $ | 1,202,190 | $ | 17,879 | ||||||||||||
Agricultural | 697,994 | 5,003 | 6,627 | 0 | 709,624 | 16,837 | ||||||||||||||||||
Residential and home equity | 371,494 | 0 | 380 | 0 | 371,874 | 6,874 | ||||||||||||||||||
Construction | 160,787 | 1,926 | 0 | 0 | 162,713 | 2,876 | ||||||||||||||||||
Total real estate | 2,417,736 | 15,558 | 13,107 | 0 | 2,446,401 | 44,466 | ||||||||||||||||||
Commercial & industrial | 431,441 | 7,459 | 555 | 0 | 439,455 | 10,139 | ||||||||||||||||||
Agricultural | 260,079 | 880 | 897 | 0 | 261,856 | 5,669 | ||||||||||||||||||
Commercial leases | 88,468 | 118 | 0 | 0 | 88,586 | 1,645 | ||||||||||||||||||
Consumer and other | 13,391 | 0 | 197 | 0 | 13,588 | 161 | ||||||||||||||||||
Total loans and leases, net | $ | 3,211,115 | $ | 24,015 | $ | 14,756 | $ | 0 | $ | 3,249,886 | $ | 62,080 |
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 |
June 30, 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 | $ | 64,720 | $ | 239,840 | $ | 161,165 | $ | 73,041 | $ | 87,035 | $ | 237,333 | $ | 324,326 | $ | 1,187,461 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 3,866 | 834 | 3,929 | 8,629 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 4,203 | 1,897 | 6,100 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total Commercial | $ | 64,720 | $ | 239,840 | $ | 161,165 | $ | 73,041 | $ | 90,901 | $ | 242,370 | $ | 330,152 | $ | 1,202,190 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 34,325 | $ | 43,251 | $ | 58,263 | $ | 15,341 | $ | 53,916 | $ | 157,648 | $ | 335,250 | $ | 697,994 | ||||||||||||||||
Special mention | 0 | 0 | 2,367 | 2,636 | 0 | 0 | 0 | 5,003 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 118 | 6,034 | 475 | 6,627 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total Agricultural | $ | 34,325 | $ | 43,251 | $ | 60,630 | $ | 17,977 | $ | 54,034 | $ | 163,682 | $ | 335,725 | $ | 709,624 | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Pass | $ | 40,868 | $ | 100,298 | $ | 90,939 | $ | 15,957 | $ | 7,140 | $ | 82,590 | $ | 33,702 | $ | 371,494 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 235 | 145 | 380 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total Residential and home equity | $ | 40,868 | $ | 100,298 | $ | 90,939 | $ | 15,957 | $ | 7,140 | $ | 82,825 | $ | 33,847 | $ | 371,874 | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Pass | $ | 0 | $ | 0 | $ | 0 | $ | 2,272 | $ | 0 | $ | 92 | $ | 158,423 | $ | 160,787 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 1,926 | 1,926 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total construction | $ | 0 | $ | 0 | $ | 0 | $ | 2,272 | $ | 0 | $ | 92 | $ | 160,349 | $ | 162,713 | ||||||||||||||||
Total Real estate | $ | 139,913 | $ | 383,389 | $ | 312,734 | $ | 109,247 | $ | 152,075 | $ | 488,969 | $ | 860,073 | $ | 2,446,401 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Pass | $ | 8,395 | $ | 44,225 | $ | 15,482 | $ | 12,734 | $ | 10,126 | $ | 9,183 | $ | 331,296 | $ | 431,441 | ||||||||||||||||
Special mention | 0 | 76 | 0 | 0 | 0 | 3 | 7,380 | 7,459 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 30 | 525 | 555 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total Commercial & industrial | $ | 8,395 | $ | 44,301 | $ | 15,482 | $ | 12,734 | $ | 10,126 | $ | 9,216 | $ | 339,201 | $ | 439,455 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 3,547 | $ | 4,532 | $ | 1,194 | $ | 1,626 | $ | 776 | $ | 2,273 | $ | 246,131 | $ | 260,079 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 12 | 868 | 880 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 14 | 4 | 79 | 800 | 897 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total Agricultural | $ | 3,547 | $ | 4,532 | $ | 1,194 | $ | 1,640 | $ | 780 | $ | 2,364 | $ | 247,799 | $ | 261,856 | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Pass | $ | 1,566 | $ | 17,129 | $ | 14,293 | $ | 8,473 | $ | 21,686 | $ | 25,320 | $ | 0 | $ | 88,468 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 118 | 0 | 0 | 0 | 118 | ||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total Commercial leases | $ | 1,566 | $ | 17,129 | $ | 14,293 | $ | 8,591 | $ | 21,686 | $ | 25,320 | $ | 0 | $ | 88,586 | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Pass | $ | 901 | $ | 7,589 | $ | 475 | $ | 350 | $ | 531 | $ | 2,713 | $ | 832 | $ | 13,391 | ||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Substandard | 197 | 0 | 0 | 0 | 0 | 0 | 0 | 197 | ||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total Consumer and other | $ | 1,098 | $ | 7,589 | $ | 475 | $ | 350 | $ | 531 | $ | 2,713 | $ | 832 | $ | 13,588 | ||||||||||||||||
Total net loans and leases | $ | 154,519 | $ | 456,941 | $ | 344,178 | $ | 132,563 | $ | 185,198 | $ | 528,583 | $ | 1,447,905 | $ | 3,249,886 |
June 30, 2022 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 0 | $ | 0 | $ | 0 | ||||||
Agricultural | 5,533 | 0 | 5,533 | |||||||||
Residential and home equity | 216 | 0 | 216 | |||||||||
Construction | 0 | 0 | 0 | |||||||||
Total Real estate | 5,749 | 0 | 5,749 | |||||||||
Commercial & industrial | 0 | 0 | 0 | |||||||||
Agricultural | 0 | 0 | 0 | |||||||||
Commercial leases | 0 | 0 | 0 | |||||||||
Consumer and other | 0 | 165 | 165 | |||||||||
Total gross loans and leases | $ | 5,749 | $ | 165 | $ | 5,914 |
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 |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||
September 30, 2021 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial Real Estate | $ | 65 | $ | 65 | $ | - | $ | 73 | $ | 1 | $ | 52 | $ | 2 | ||||||||||||||
Agricultural Real Estate | 5,613 | 5,613 | - | 5,621 | 88 | 5,626 | 324 | |||||||||||||||||||||
Agricultural | 516 | 559 | - | 504 | 12 | 415 | 46 | |||||||||||||||||||||
Commercial | 8 | 8 | - | 9 | 0 | 5 | 0 | |||||||||||||||||||||
$ | 6,202 | $ | 6,245 | $ | - | $ | 6,207 | $ | 101 | $ | 6,098 | $ | 372 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial Real Estate | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 28 | $ | 3 | ||||||||||||||
Residential 1st Mortgages | 1,503 | 1,719 | 75 | 1,585 | 16 | 1,638 | 52 | |||||||||||||||||||||
Home Equity Lines & Loans | 60 | 71 | 3 | 61 | 1 | 62 | 3 | |||||||||||||||||||||
Agricultural | 0 | 0 | 0 | 0 | 0 | 82 | 0 | |||||||||||||||||||||
Commercial | 210 | 210 | 6 | 213 | 4 | 222 | 12 | |||||||||||||||||||||
Consumer & Other | 178 | 179 | 40 | 181 | 3 | 185 | 10 | |||||||||||||||||||||
$ | 1,951 | $ | 2,179 | $ | 124 | $ | 2,040 | $ | 24 | $ | 2,217 | $ | 80 | |||||||||||||||
Total | $ | 8,153 | $ | 8,424 | $ | 124 | $ | 8,247 | $ | 125 | $ | 8,315 | $ | 452 |
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 & 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 |
For the Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | |||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Beginning balance | $ | 32,511 | $ | 3,777 | $ | 6,759 | $ | 16,098 | $ | 1,466 | $ | 421 | $ | 61,032 | ||||||||||||||
Provision / (recapture) for credit losses | 2,205 | (901 | ) | 10 | (131 | ) | 179 | (255 | ) | 1,107 | ||||||||||||||||||
Charge-offs | 0 | 0 | 0 | (276 | ) | 0 | (9 | ) | (285 | ) | ||||||||||||||||||
Recoveries | 0 | 0 | 105 | 117 | 0 | 4 | 226 | |||||||||||||||||||||
Net (charge-offs) / recoveries | 0 | 0 | 105 | (159 | ) | 0 | (5 | ) | (59 | ) | ||||||||||||||||||
Ending balance | $ | 34,716 | $ | 2,876 | $ | 6,874 | $ | 15,808 | $ | 1,645 | $ | 161 | $ | 62,080 |
For the Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | |||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Beginning balance | $ | 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 | 2,757 | (435 | ) | 876 | (1,831 | ) | 78 | (338 | ) | 1,107 | ||||||||||||||||||
Charge-offs | 0 | 0 | 0 | (276 | ) | 0 | (18 | ) | (294 | ) | ||||||||||||||||||
Recoveries | 0 | 0 | 119 | 135 | 0 | 6 | 260 | |||||||||||||||||||||
Net (charge-offs) / recoveries | 0 | 0 | 119 | (141 | ) | 0 | (12 | ) | (34 | ) | ||||||||||||||||||
Ending balance | $ | 34,716 | $ | 2,876 | $ | 6,874 | $ | 15,808 | $ | 1,645 | $ | 161 | $ | 62,080 |
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Certificate of deposits: | ||||||||
Certificates of deposits less than or equal to $250,000 | $ | 216,390 | $ | 223,620 | ||||
Certificates of deposits greater than $250,000 | 162,240 | 168,865 | ||||||
Total certificates of deposits | $ | 378,630 | $ | 392,485 |
(Dollars in thousands) | Amount | |||
2022 | $ | 217,575 | ||
2023 | 147,620 | |||
2024 | 8,788 | |||
2025 | 2,270 | |||
2026 and beyond | 2,377 | |||
Total time deposits | $ | 378,630 |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||
September 30, 2020 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial Real Estate | $ | 84 | $ | 84 | $ | - | $ | 42 | $ | 2 | $ | 991 | $ | 33 | ||||||||||||||
Agricultural Real Estate | 5,629 | 5,629 | - | 5,629 | 88 | 5,633 | 264 | |||||||||||||||||||||
Agricultural | 5 | 6 | - | 3 | 0 | 1 | 0 | |||||||||||||||||||||
Commercial | 0 | 0 | - | 0 | 0 | 503 | 16 | |||||||||||||||||||||
$ | 5,718 | $ | 5,719 | $ | - | $ | 5,674 | $ | 90 | $ | 7,128 | $ | 313 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial Real Estate | $ | 0 | $ | 0 | $ | 0 | $ | 42 | $ | 0 | $ | 498 | $ | 1 | ||||||||||||||
Agricultural Real Estate | 0 | 0 | 0 | 0 | 0 | 183 | 0 | |||||||||||||||||||||
Residential 1st Mortgages | 1,686 | 1,909 | 84 | 1,694 | 18 | 1,625 | 58 | |||||||||||||||||||||
Home Equity Lines & Loans | 65 | 76 | 3 | 66 | 1 | 67 | 3 | |||||||||||||||||||||
Agricultural | 492 | 534 | 92 | 483 | 7 | 333 | 52 | |||||||||||||||||||||
Commercial | 235 | 235 | 13 | 123 | 13 | 301 | 15 | |||||||||||||||||||||
Consumer & Other | 194 | 195 | 56 | 195 | 3 | 196 | 10 | |||||||||||||||||||||
$ | 2,672 | $ | 2,949 | $ | 248 | $ | 2,603 | $ | 42 | $ | 3,203 | $ | 139 | |||||||||||||||
Total | $ | 8,390 | $ | 8,668 | $ | 248 | $ | 8,277 | $ | 132 | $ | 10,331 | $ | 452 |
June 30, 2022 | ||||||||||||||||||||||||
Actual | Minimum to be Categorized as “Adequately Capitalized” | Minimum to be Categorized as “Well Capitalized” | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 468,463 | 11.55 | % | $ | 182,499 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 478,463 | 11.80 | % | 243,332 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 529,311 | 13.05 | % | 324,442 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 478,463 | 8.94 | % | 214,167 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 475,077 | 11.72 | % | $ | 182,470 | 4.50 | % | $ | 263,567 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 475,077 | 11.72 | % | 243,293 | 6.00 | % | 324,391 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 525,918 | 12.97 | % | 324,391 | 8.00 | % | 405,488 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 475,077 | 8.89 | % | 213,871 | 4.00 | % | 267,339 | 5.00 | % |
December 31, 2021 | ||||||||||||||||||||||||
Actual | Minimum to be Categorized as “Adequately Capitalized” | Minimum to be Categorized as “Well Capitalized” | ||||||||||||||||||||||
(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 | % |
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 |
Three Months Ended June 30, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | ||||||
Numerator | ||||||||
Net income | $ | 18,443 | $ | 16,153 | ||||
Denominator | ||||||||
Weighted average number of common shares outstanding | 781,880 | 789,646 | ||||||
Weighted average number of dilutive shares outstanding | 781,880 | 789,646 | ||||||
Basic earnings per common share | $ | 23.58 | $ | 20.45 | ||||
Diluted earning per common share | $ | 23.58 | $ | 20.45 |
Six Months Ended June 30, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | ||||||
Numerator | ||||||||
Net income | $ | 35,501 | $ | 32,866 | ||||
Denominator | ||||||||
Weighted average number of common shares outstanding | 783,976 | 789,646 | ||||||
Weighted average number of dilutive shares outstanding | 783,976 | 789,646 | ||||||
�� | ||||||||
Basic earnings per common share | $ | 45.28 | $ | 41.62 | ||||
Diluted earning per common share | $ | 45.28 | $ | 41.62 |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
Troubled Debt Restructurings | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||
Residential 1st Mortgages | 0 | $ | 0 | $ | 0 | 2 | $ | 156 | $ | 156 | ||||||||||||||
Agricultural | 0 | 0 | 0 | 3 | 495 | 495 | ||||||||||||||||||
Commercial | 1 | 224 | 224 | 1 | 224 | 224 | ||||||||||||||||||
Total | 1 | $ | 224 | $ | 224 | 6 | $ | 875 | $ | 875 |
Fair Value Measurements At September 30, 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: | ||||||||||||||||
U.S. Treasury Notes | $ | 10,150 | $ | 10,150 | $ | 0 | $ | 0 | ||||||||
U.S. Government Agency SBA | 6,919 | 0 | 6,919 | 0 | ||||||||||||
Mortgage-Backed Securities | 269,569 | 0 | 269,569 | 0 | ||||||||||||
Other | 46,513 | 46,203 | 310 | 0 | ||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis | $ | 333,151 | $ | 56,353 | $ | 276,798 | $ | 0 |
June 30, 2022 | Fair Value | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 747,788 | $ | 747,788 | $ | 0 | $ | 0 | $ | 747,788 | ||||||||||
Investment securities available-for-sale | 225,338 | 4,952 | 220,386 | 0 | 225,338 | |||||||||||||||
Investment securities held-to-maturity | 867,990 | 0 | 720,108 | 43,039 | 763,147 | |||||||||||||||
Non-marketable securities | 15,549 | 0 | 0 | 15,549 | 15,549 | |||||||||||||||
Loans and leases, net | 3,187,806 | 0 | 0 | 3,180,540 | 3,180,540 | |||||||||||||||
Bank-owned life insurance | 72,513 | 72,513 | 0 | 0 | 72,513 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Total deposits | $ | 4,769,513 | $ | 0 | $ | 4,390,883 | $ | 373,285 | $ | 4,764,168 | ||||||||||
Subordinated debentures | 10,310 | 0 | 9,181 | 0 | 9,181 |
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: | ||||||||||||||||
U.S. Treasury Notes | $ | 15,288 | $ | 15,288 | $ | 0 | $ | 0 | ||||||||
U.S. 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 |
Fair Value Measurements At September 30, 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: | ||||||||||||||||
U.S. Treasury Notes | $ | 95,342 | $ | 95,342 | $ | 0 | $ | 0 | ||||||||
U.S. Government Agency SBA | 8,429 | 0 | 8,429 | 0 | ||||||||||||
Mortgage-Backed Securities | 439,274 | 0 | 439,274 | 0 | ||||||||||||
Corporate Securities | 25,063 | 0 | 25,063 | 0 | ||||||||||||
Other | 428 | 118 | 310 | 0 | ||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis | $ | 568,536 | $ | 95,460 | $ | 473,076 | $ | 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 | 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 | $ | 0 | $ | 4,247,666 | $ | 391,732 | $ | 4,639,398 | ||||||||||
Subordinated debentures | 10,310 | 0 | 6,890 | 0 | 6,890 |
Fair Value Measurements At September 30, 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: | ||||||||||||||||
Residential 1st Mortgage | $ | 1,423 | $ | 0 | $ | 0 | $ | 1,423 | ||||||||
Home Equity Lines & Loans | 57 | 0 | 0 | 57 | ||||||||||||
Commercial | 204 | 0 | 0 | 204 | ||||||||||||
Consumer | 138 | 0 | 0 | 138 | ||||||||||||
Total Impaired Loans | 1,822 | 0 | 0 | 1,822 | ||||||||||||
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 | $ | 2,695 | $ | 0 | $ | 0 | $ | 2,695 |
June 30, 2022 | Fair Value | |||||||||||||||||||
(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 | $ | 4,952 | $ | 4,952 | $ | 0 | $ | 0 | $ | 4,952 | ||||||||||
U.S. Government-sponsored securities | 5,441 | 0 | 5,441 | 0 | 5,441 | |||||||||||||||
Mortgage-backed securities | 203,607 | 0 | 203,607 | 0 | 203,607 | |||||||||||||||
Collateralized mortgage obligations | 1,502 | 0 | 1,502 | 0 | 1,502 | |||||||||||||||
Corporate securities | 9,526 | 0 | 9,526 | 0 | 9,526 | |||||||||||||||
Other | 310 | 0 | 310 | 0 | 310 | |||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||
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 & 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 |
December 31, 2021 | Fair Value | |||||||||||||||||||
(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 September 30, 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 | $ | 1,599 | $ | 0 | $ | 0 | $ | 1,599 | ||||||||
Home Equity Lines & Loans | 62 | 0 | 0 | 62 | ||||||||||||
Agricultural | 400 | 0 | 0 | 400 | ||||||||||||
Commercial | 222 | 0 | 0 | 222 | ||||||||||||
Consumer | 138 | 0 | 0 | 138 | ||||||||||||
Total Impaired Loans | $ | 2,421 | $ | 0 | $ | 0 | $ | 2,421 | ||||||||
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 | $ | 3,294 | $ | 0 | $ | 0 | $ | 3,294 |
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Commitments to extend credit, including unsecured commitments of $20,787 and $21,036 as of June 30, 2022 and December 31, 2021, respectively | $ | 995,795 | $ | 937,009 | ||||
Stand-by letters of credit, including unsecured commitments of $7,409 and $9,091 as of June 30, 2022 and December 31, 2021, respectively | 16,484 | 17,880 | ||||||
Performance guarantees under interest rate swap contracts entered into with our clients and third-parties | 0 | 1,433 |
September 30, 2021 | ||||||||||
(in thousands) | Fair Value | Valuation Technique | Unobservable Inputs | Range, Weighted Avg. | ||||||
Impaired Loans: | ||||||||||
Residential 1st Mortgage | $ | 1,423 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 0.68% - 4.02%, 2.54 | % | ||||
Home Equity Lines & Loans | $ | 57 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1.1% - 1.3%, 1.20 | % | ||||
Commercial | $ | 204 | Income Approach | Capitalization Rate | 10%, 10 | % | ||||
Consumer | $ | 138 | Income Approach | Capitalization Rate | 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 & 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 | % |
September 30, 2020 | ||||||||||
(in thousands) | Fair Value | Valuation Technique | Unobservable Inputs | Range, Weighted Avg. | ||||||
Impaired Loans: | ||||||||||
Residential 1st Mortgage | $ | 1,599 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 0.73% - 4.16%, 2.58 | % | ||||
Home Equity Lines & Loans | $ | 62 | Sales Comparison Approach | Adjustment for Difference Between Comparable Sales | 1.1% - 1.4%, 1.28 | % | ||||
Agricultural | $ | 400 | Income Approach | Capitalization Rate | 10%, 10 | % | ||||
Commercial | $ | 222 | 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 | % |
Fair Value of Financial Instruments Using | ||||||||||||||||||||
September 30, 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 | $ | 870,763 | $ | 870,763 | $ | 0 | $ | 0 | $ | 870,763 | ||||||||||
Investment Securities Available-for-Sale | 333,151 | 56,353 | 276,798 | 0 | 333,151 | |||||||||||||||
Investment Securities Held-to-Maturity | 550,618 | 0 | 499,432 | 40,876 | 540,308 | |||||||||||||||
Loans & Leases, Net | 3,079,498 | 0 | 0 | 3,090,187 | 3,090,187 | |||||||||||||||
Accrued Interest Receivable | 18,762 | 0 | 18,762 | 0 | 18,762 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 4,568,394 | 4,174,561 | 0 | 394,158 | 4,568,719 | |||||||||||||||
Subordinated Debentures | 10,310 | 0 | 6,830 | 0 | 6,830 | |||||||||||||||
Accrued Interest Payable | 451 | 0 | 451 | 0 | 451 |
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 | ||||||||||||||||||||
September 30, 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 | $ | 358,368 | $ | 358,368 | $ | 0 | $ | 0 | $ | 358,368 | ||||||||||
Investment Securities Available-for-Sale | 568,536 | 95,460 | 473,076 | 0 | 568,536 | |||||||||||||||
Investment Securities Held-to-Maturity | 69,913 | 0 | 28,244 | 42,811 | 71,055 | |||||||||||||||
Loans & Leases, Net | 3,055,133 | 0 | 0 | 3,065,624 | 3,065,624 | |||||||||||||||
Accrued Interest Receivable | 22,596 | 0 | 22,596 | 0 | 22,596 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | 3,814,777 | 3,354,528 | 0 | 461,754 | 3,816,282 | |||||||||||||||
Subordinated Debentures | 10,310 | 0 | 6,518 | 0 | 6,518 | |||||||||||||||
Accrued Interest Payable | 1,618 | 0 | 1,618 | 0 | 1,618 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(net income in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net Income | $ | 17,502 | $ | 14,810 | $ | 50,368 | $ | 43,241 | ||||||||
Weighted Average Number of Common Shares Outstanding | 789,646 | 793,556 | 789,646 | 793,539 | ||||||||||||
Basic and Diluted Earnings Per Common Share | $ | 22.16 | $ | 18.66 | $ | 63.79 | $ | 54.49 |
(in thousands except for percent and period data) | Nine Months Ended September 30, 2021 | Year Ended December 31, 2020 | Nine Months Ended September 30, 2020 | |||||||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities | ||||||||||||
Operating Cash Flow from Operating Leases | $ | 536 | $ | 795 | $ | 594 | ||||||
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | $ | 302 | $ | 0 | $ | 0 | ||||||
Weighted-Average Remaining Lease Term - Operating Leases, in Years | 6.76 | 7.33 | 7.29 | |||||||||
Weighted-Average Discount Rate - Operating Leases | 2.6 | % | 2.9 | % | 3.2 | % |
(in thousands) | September 30, 2021 | |||
2021 | $ | 174 | ||
2022 | 702 | |||
2023 | 714 | |||
2024 | 730 | |||
2025 | 741 | |||
2026 and thereafter | 1,602 | |||
Total Lease Payments | 4,663 | |||
Less: Interest | (377 | ) | ||
Present Value of Lease Liabilities | $ | 4,286 |
◾ | 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. |
For the Three Months Ended June 30, | ||||||||||||||||||||||||
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 | $ | 683,655 | $ | 1,409 | 0.83 | % | $ | 590,936 | $ | 164 | 0.11 | % | ||||||||||||
Securities:(1) | ||||||||||||||||||||||||
Taxable securities | 1,090,507 | 5,107 | 1.87 | % | 839,121 | 3,694 | 1.76 | % | ||||||||||||||||
Non-taxable securities(2) | 48,339 | 391 | 3.24 | % | 53,813 | 416 | 3.09 | % | ||||||||||||||||
Total investment securities | 1,138,846 | 5,498 | 1.94 | % | 892,934 | 4,110 | 1.84 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,158,892 | 13,373 | 4.63 | % | 1,005,143 | 12,370 | 4.94 | % | ||||||||||||||||
Agricultural | 701,905 | 8,415 | 4.81 | % | 622,977 | 7,447 | 4.79 | % | ||||||||||||||||
Residential and home equity | 365,872 | 3,539 | 3.88 | % | 337,796 | 3,662 | 4.35 | % | ||||||||||||||||
Construction | 205,491 | 2,508 | 4.90 | % | 189,930 | 2,150 | 4.54 | % | ||||||||||||||||
Total real estate | 2,432,160 | 27,835 | 4.59 | % | 2,155,846 | 25,629 | 4.77 | % | ||||||||||||||||
Commercial & industrial | 439,137 | 4,546 | 4.15 | % | 357,098 | 4,345 | 4.88 | % | ||||||||||||||||
Agricultural | 264,791 | 2,988 | 4.53 | % | 227,206 | 2,557 | 4.51 | % | ||||||||||||||||
Commercial leases | 90,855 | 1,377 | 6.08 | % | 101,848 | 1,428 | 5.62 | % | ||||||||||||||||
Consumer and other | 21,457 | 1,824 | 34.10 | % | 223,877 | 2,705 | 4.85 | % | ||||||||||||||||
Total loans and leases | 3,248,400 | 38,570 | 4.76 | % | 3,065,875 | 36,664 | 4.80 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 218 | 5.62 | % | 15,078 | 212 | 5.64 | % | ||||||||||||||||
Total interest earning assets | 5,086,450 | 45,695 | 3.60 | % | 4,564,823 | 41,150 | 3.62 | % | ||||||||||||||||
Allowance for credit losses | (61,439 | ) | (60,204 | ) | ||||||||||||||||||||
Non-interest earning assets | 317,066 | 315,846 | ||||||||||||||||||||||
Total average assets | $ | 5,342,077 | $ | 4,820,465 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,117,283 | 319 | 0.11 | % | $ | 993,084 | 282 | 0.11 | % | ||||||||||||||
Savings and money market accounts | 1,544,753 | 361 | 0.09 | % | 1,332,799 | 372 | 0.11 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 165,944 | 106 | 0.26 | % | 168,450 | 188 | 0.45 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 219,157 | 87 | 0.16 | % | 239,792 | 192 | 0.32 | % | ||||||||||||||||
Total interest bearing deposits | 3,047,137 | 873 | 0.11 | % | 2,734,125 | 1,034 | 0.15 | % | ||||||||||||||||
Short-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 103 | 4.01 | % | 10,310 | 79 | 3.07 | % | ||||||||||||||||
Total interest bearing liabilities | 3,057,447 | 976 | 0.13 | % | 2,744,435 | 1,113 | 0.16 | % | ||||||||||||||||
Non-interest bearing deposits | 1,735,258 | 1,573,743 | ||||||||||||||||||||||
Total funding | 4,792,705 | 976 | 0.08 | % | 4,318,178 | 1,113 | 0.10 | % | ||||||||||||||||
Other non-interest bearing liabilities | 86,550 | 69,049 | ||||||||||||||||||||||
Shareholders' equity | 462,822 | 433,238 | ||||||||||||||||||||||
Total average liabilities and shareholders' equity | $ | 5,342,077 | $ | 4,820,465 | ||||||||||||||||||||
Net interest income | $ | 44,719 | $ | 40,037 | ||||||||||||||||||||
Interest rate spread | 3.48 | % | 3.45 | % | ||||||||||||||||||||
Net interest margin(4) | 3.53 | % | 3.52 | % |
For the Six Months Ended June 30, | ||||||||||||||||||||||||
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 | $ | 721,656 | $ | 1,775 | 0.50 | % | $ | 501,105 | $ | 267 | 0.11 | % | ||||||||||||
Securities:(1) | ||||||||||||||||||||||||
Taxable securities | 1,056,670 | 9,695 | 1.84 | % | 836,501 | 7,498 | 1.79 | % | ||||||||||||||||
Non-taxable securities(2) | 49,164 | 793 | 3.23 | % | 54,442 | 839 | 3.08 | % | ||||||||||||||||
Total investment securities | 1,105,834 | 10,488 | 1.90 | % | 890,943 | 8,337 | 1.87 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,155,271 | 26,649 | 4.65 | % | 985,307 | 25,347 | 5.19 | % | ||||||||||||||||
Agricultural | 691,128 | 16,208 | 4.73 | % | 630,592 | 14,583 | 4.66 | % | ||||||||||||||||
Residential and home equity | 359,656 | 6,840 | 3.84 | % | 336,691 | 6,333 | 3.79 | % | ||||||||||||||||
Construction | 198,626 | 4,580 | 4.65 | % | 191,638 | 4,147 | 4.36 | % | ||||||||||||||||
Total real estate | 2,404,681 | 54,277 | 4.55 | % | 2,144,228 | 50,410 | 4.74 | % | ||||||||||||||||
Commercial & industrial | 431,907 | 9,345 | 4.36 | % | 361,465 | 8,456 | 4.72 | % | ||||||||||||||||
Agricultural | 256,648 | 5,743 | 4.51 | % | 226,706 | 5,121 | 4.56 | % | ||||||||||||||||
Commercial leases | 92,844 | 2,793 | 6.07 | % | 102,205 | 2,772 | 5.47 | % | ||||||||||||||||
Consumer and other | 36,683 | 3,845 | 21.14 | % | 228,336 | 6,992 | 6.18 | % | ||||||||||||||||
Total loans and leases | 3,222,763 | 76,003 | 4.76 | % | 3,062,940 | 73,751 | 4.86 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 523 | 6.78 | % | 13,892 | 402 | 5.84 | % | ||||||||||||||||
Total interest earning assets | 5,065,802 | 88,789 | 3.53 | % | 4,468,880 | 82,757 | 3.73 | % | ||||||||||||||||
Allowance for credit losses | (61,232 | ) | (59,820 | ) | ||||||||||||||||||||
Non-interest earning assets | 315,037 | 310,629 | ||||||||||||||||||||||
Total average assets | $ | 5,319,607 | $ | 4,719,689 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,116,436 | 578 | 0.10 | % | $ | 968,496 | 576 | 0.12 | % | ||||||||||||||
Savings and money market accounts | 1,531,069 | 703 | 0.09 | % | 1,312,122 | 790 | 0.12 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 166,725 | 203 | 0.25 | % | 169,967 | 444 | 0.53 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 221,487 | 192 | 0.17 | % | 243,583 | 461 | 0.38 | % | ||||||||||||||||
Total interest bearing deposits | 3,035,717 | 1,676 | 0.11 | % | 2,694,168 | 2,271 | 0.17 | % | ||||||||||||||||
Short-term borrowings | 1 | - | 0.00 | % | 2 | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 185 | 3.62 | % | 10,310 | 158 | 3.09 | % | ||||||||||||||||
Total interest bearing liabilities | 3,046,028 | 1,861 | 0.12 | % | 2,704,480 | 2,429 | 0.18 | % | ||||||||||||||||
Non-interest bearing deposits | 1,728,962 | 1,522,029 | ||||||||||||||||||||||
Total funding | 4,774,990 | 1,861 | 0.08 | % | 4,226,509 | 2,429 | 0.12 | % | ||||||||||||||||
Other non-interest bearing liabilities | 80,413 | 61,662 | ||||||||||||||||||||||
Shareholders' equity | 464,204 | 431,518 | ||||||||||||||||||||||
Total average liabilities and shareholders' equity | $ | 5,319,607 | $ | 4,719,689 | ||||||||||||||||||||
Net interest income | $ | 86,928 | $ | 80,328 | ||||||||||||||||||||
Interest rate spread | 3.41 | % | 3.55 | % | ||||||||||||||||||||
Net interest margin(4) | 3.46 | % | 3.62 | % |
Three Months Ended Sept 30, 2021 | Three Months Ended Sept 30, 2020 | |||||||||||||||||||||||
Assets | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Interest Bearing Deposits with Banks | $ | 856,159 | $ | 328 | 0.15 | % | $ | 314,049 | $ | 81 | 0.10 | % | ||||||||||||
Investment Securities: | ||||||||||||||||||||||||
U.S. Treasury Notes | 9,911 | 59 | 2.36 | % | 27,423 | 89 | 1.29 | % | ||||||||||||||||
U.S. Government Agency SBA | 7,151 | 14 | 0.78 | % | 9,167 | 24 | 1.05 | % | ||||||||||||||||
Municipals - Taxable | 15,088 | 141 | 3.74 | % | 19,966 | 156 | 3.13 | % | ||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable (1) | 49,616 | 503 | 4.06 | % | 49,452 | 525 | 4.24 | % | ||||||||||||||||
Mortgage-Backed Securities | 708,322 | 2,937 | 1.66 | % | 430,145 | 2,567 | 2.39 | % | ||||||||||||||||
Other | 46,511 | 132 | 1.14 | % | 25,477 | 53 | 0.83 | % | ||||||||||||||||
Total Investment Securities | 836,599 | 3,786 | 1.81 | % | 561,630 | 3,414 | 2.43 | % | ||||||||||||||||
Loans & Leases: (2) | ||||||||||||||||||||||||
Real Estate | 2,169,270 | 25,354 | 4.64 | % | 1,952,892 | 24,193 | 4.93 | % | ||||||||||||||||
Home Equity Lines & Loans | 32,112 | 360 | 4.45 | % | 37,815 | 423 | 4.45 | % | ||||||||||||||||
Agricultural | 236,071 | 2,637 | 4.43 | % | 263,706 | 3,365 | 5.08 | % | ||||||||||||||||
Commercial | 374,162 | 4,111 | 4.36 | % | 362,880 | 4,377 | 4.80 | % | ||||||||||||||||
Consumer | 8,521 | 125 | 5.82 | % | 12,261 | 190 | 6.16 | % | ||||||||||||||||
Other (3) | 146,661 | 2,138 | 5.78 | % | 348,093 | 2,415 | 2.76 | % | ||||||||||||||||
Leases | 96,690 | 1,363 | 5.59 | % | 106,272 | 1,446 | 5.41 | % | ||||||||||||||||
Total Loans & Leases | 3,063,487 | 36,088 | 4.67 | % | 3,083,919 | 36,409 | 4.70 | % | ||||||||||||||||
Total Earning Assets | 4,756,245 | $ | 40,202 | 3.35 | % | 3,959,598 | $ | 39,904 | 4.01 | % | ||||||||||||||
Unrealized Gain on Securities Available-for-Sale | 1,995 | 20,960 | ||||||||||||||||||||||
Allowance for Credit Losses | (60,268 | ) | (55,782 | ) | ||||||||||||||||||||
Cash and Due From Banks | 72,887 | 61,633 | ||||||||||||||||||||||
All Other Assets | 264,724 | 244,056 | ||||||||||||||||||||||
Total Assets | $ | 5,035,583 | $ | 4,230,465 | ||||||||||||||||||||
Liabilities & Shareholders’ Equity | ||||||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||||||
Interest Bearing DDA | $ | 1,068,707 | $ | 293 | 0.11 | % | $ | 824,587 | $ | 383 | 0.18 | % | ||||||||||||
Savings and Money Market | 1,385,430 | 346 | 0.10 | % | 1,176,238 | 594 | 0.20 | % | ||||||||||||||||
Time Deposits | 399,246 | 290 | 0.29 | % | 468,072 | 1,034 | 0.88 | % | ||||||||||||||||
Total Interest Bearing Deposits | 2,853,383 | 929 | 0.13 | % | 2,468,897 | 2,011 | 0.32 | % | ||||||||||||||||
Subordinated Debentures | 10,310 | 78 | 3.00 | % | 10,310 | 83 | 3.20 | % | ||||||||||||||||
Total Interest Bearing Liabilities | 2,863,693 | $ | 1,007 | 0.14 | % | 2,479,207 | $ | 2,094 | 0.34 | % | ||||||||||||||
Interest Rate Spread (4) | 3.21 | % | 3.67 | % | ||||||||||||||||||||
Demand Deposits (Non-Interest Bearing) | 1,655,738 | 1,279,142 | ||||||||||||||||||||||
All Other Liabilities | 68,564 | 60,812 | ||||||||||||||||||||||
Total Liabilities | 4,587,995 | 3,819,161 | ||||||||||||||||||||||
Shareholders’ Equity | 447,588 | 411,304 | ||||||||||||||||||||||
Total Liabilities & Shareholders’ Equity | $ | 5,035,583 | $ | 4,230,465 | ||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets (5) | 39,195 | 3.27 | % | 37,810 | 3.80 | % | ||||||||||||||||||
Tax Equivalent Adjustment | (104 | ) | (111 | ) | ||||||||||||||||||||
Net Interest Income | $ | 39,091 | 3.26 | % | $ | 37,699 | 3.79 | % |
Nine Months Ended Sept. 30, 2021 | Nine Months Ended Sept. 30, 2020 | |||||||||||||||||||||||
Assets | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Interest Bearing Deposits with Banks | $ | 620,757 | $ | 595 | 0.13 | % | $ | 286,049 | $ | 1,093 | 0.51 | % | ||||||||||||
Investment Securities: | ||||||||||||||||||||||||
U.S. Treasury Notes | 12,071 | 212 | 2.35 | % | 19,897 | 267 | 1.79 | % | ||||||||||||||||
U.S. Government Agency SBA | 7,590 | 41 | 0.72 | % | 9,799 | 94 | 1.28 | % | ||||||||||||||||
Municipals - Taxable | 15,662 | 445 | 3.79 | % | 11,362 | 359 | 4.21 | % | ||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable (1) | 52,816 | 1,562 | 3.94 | % | 52,741 | 1,587 | 4.01 | % | ||||||||||||||||
Mortgage-Backed Securities | 738,454 | 9,396 | 1.70 | % | 445,336 | 8,432 | 2.52 | % | ||||||||||||||||
Other | 45,970 | 687 | 1.99 | % | 10,747 | 64 | 0.79 | % | ||||||||||||||||
Total Investment Securities | 872,563 | 12,343 | 1.89 | % | 549,882 | 10,803 | 2.62 | % | ||||||||||||||||
Loans & Leases: (2) | ||||||||||||||||||||||||
Real Estate | 2,131,071 | 75,041 | 4.71 | % | 1,885,455 | 71,031 | 5.03 | % | ||||||||||||||||
Home Equity Lines & Loans | 32,417 | 1,083 | 4.47 | % | 39,162 | 1,447 | 4.94 | % | ||||||||||||||||
Agricultural | 229,862 | 7,758 | 4.51 | % | 264,528 | 10,180 | 5.14 | % | ||||||||||||||||
Commercial | 365,744 | 12,567 | 4.59 | % | 378,272 | 13,810 | 4.88 | % | ||||||||||||||||
Consumer | 9,388 | 1,010 | 14.38 | % | 13,294 | 619 | 6.22 | % | ||||||||||||||||
Other (3) | 194,295 | 8,245 | 5.67 | % | 209,653 | 3,521 | 2.24 | % | ||||||||||||||||
Leases | 100,347 | 4,135 | 5.51 | % | 105,880 | 4,272 | 5.39 | % | ||||||||||||||||
Total Loans & Leases | 3,063,124 | 109,839 | 4.79 | % | 2,896,244 | 104,880 | �� | 4.84 | % | |||||||||||||||
Total Earning Assets | 4,556,444 | $ | 122,777 | 3.60 | % | 3,732,175 | $ | 116,776 | 4.18 | % | ||||||||||||||
Unrealized Gain on Securities Available-for-Sale | 5,431 | 16,096 | ||||||||||||||||||||||
Allowance for Credit Losses | (59,971 | ) | (55,190 | ) | ||||||||||||||||||||
Cash and Due From Banks | 68,755 | 61,588 | ||||||||||||||||||||||
All Other Assets | 255,847 | 238,898 | ||||||||||||||||||||||
Total Assets | $ | 4,826,506 | $ | 3,993,567 | ||||||||||||||||||||
Liabilities & Shareholders’ Equity | ||||||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||||||
Interest Bearing DDA | $ | 1,002,267 | $ | 869 | 0.12 | % | $ | 761,437 | $ | 1,342 | 0.24 | % | ||||||||||||
Savings and Money Market | 1,336,826 | 1,136 | 0.11 | % | 1,091,672 | 2,280 | 0.28 | % | ||||||||||||||||
Time Deposits | 408,730 | 1,195 | 0.39 | % | 503,319 | 3,991 | 1.06 | % | ||||||||||||||||
Total Interest Bearing Deposits | 2,747,823 | 3,200 | 0.16 | % | 2,356,428 | 7,613 | 0.43 | % | ||||||||||||||||
Federal Home Loan Bank Advances | - | - | 0.00 | % | 1 | - | 0.00 | % | ||||||||||||||||
Subordinated Debentures | 10,310 | 236 | 3.06 | % | 10,310 | 296 | 3.83 | % | ||||||||||||||||
Total Interest Bearing Liabilities | 2,758,133 | $ | 3,436 | 0.17 | % | 2,366,739 | $ | 7,909 | 0.45 | % | ||||||||||||||
Interest Rate Spread(4) | 3.44 | % | 3.73 | % | ||||||||||||||||||||
Demand Deposits (Non-Interest Bearing) | 1,567,089 | 1,169,333 | ||||||||||||||||||||||
All Other Liabilities | 64,439 | 61,024 | ||||||||||||||||||||||
Total Liabilities | 4,389,661 | 3,597,096 | ||||||||||||||||||||||
Shareholders’ Equity | 436,845 | 396,471 | ||||||||||||||||||||||
Total Liabilities & Shareholders’ Equity | $ | 4,826,506 | $ | 3,993,567 | ||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets (5) | 119,341 | 3.50 | % | 108,867 | 3.90 | % | ||||||||||||||||||
Tax Equivalent Adjustment | (324 | ) | (327 | ) | ||||||||||||||||||||
Net Interest Income | $ | 119,017 | 3.49 | % | $ | 108,540 | 3.88 | % |
Three Months Ended Sept. 30, 2021 compared to Sept. 30, 2020 | Nine Months Ended Sept. 30, 2021 compared to Sept. 30, 2020 | |||||||||||||||||||||||
Interest Earning Assets | Volume | Rate | Net Chg. | Volume | Rate | Net Chg. | ||||||||||||||||||
Interest Bearing Deposits with Banks | $ | 193 | $ | 54 | $ | 247 | $ | 696 | $ | (1,194 | ) | $ | (498 | ) | ||||||||||
Investment Securities: | ||||||||||||||||||||||||
U.S. Treasuries | (78 | ) | 47 | (30 | ) | (123 | ) | 68 | (55 | ) | ||||||||||||||
U.S. Government Agency SBA | (14 | ) | 4 | (10 | ) | (31 | ) | (22 | ) | (53 | ) | |||||||||||||
Municipals - Taxable | (42 | ) | 28 | (15 | ) | 117 | (31 | ) | 86 | |||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable | 2 | (23 | ) | (21 | ) | 2 | (27 | ) | (25 | ) | ||||||||||||||
Mortgage-Backed Securities | 700 | (330 | ) | 370 | 1,922 | (958 | ) | 964 | ||||||||||||||||
Other | 55 | 24 | 79 | 427 | 197 | 623 | ||||||||||||||||||
Total Investment Securities | 623 | (250 | ) | 373 | 2,313 | (773 | ) | 1,540 | ||||||||||||||||
Loans & Leases: | ||||||||||||||||||||||||
Real Estate | 2,490 | (1,329 | ) | 1,161 | 7,936 | (3,926 | ) | 4,010 | ||||||||||||||||
Home Equity Lines & Loans | (62 | ) | (0 | ) | (63 | ) | (198 | ) | (167 | ) | (364 | ) | ||||||||||||
Agricultural | (576 | ) | (152 | ) | (728 | ) | 1,035 | (3,457 | ) | (2,422 | ) | |||||||||||||
Commercial | 136 | (403 | ) | (266 | ) | (481 | ) | (762 | ) | (1,243 | ) | |||||||||||||
Consumer | (54 | ) | (12 | ) | (65 | ) | (226 | ) | 617 | 391 | ||||||||||||||
Other(1) | (1,915 | ) | 1,638 | (277 | ) | (277 | ) | 5,002 | 4,724 | |||||||||||||||
Leases | (131 | ) | 48 | (83 | ) | (230 | ) | 92 | (137 | ) | ||||||||||||||
Total Loans & Leases | (113 | ) | (209 | ) | (321 | ) | 7,559 | (2,601 | ) | 4,958 | ||||||||||||||
Total Earning Assets | 703 | (405 | ) | 299 | 10,569 | (4,568 | ) | 6,001 | ||||||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||||||
Interest Bearing DDA | 231 | (321 | ) | (90 | ) | 782 | (1,255 | ) | (473 | ) | ||||||||||||||
Savings and Money Market | 134 | (382 | ) | (248 | ) | 698 | (1,842 | ) | (1,144 | ) | ||||||||||||||
Time | (179 | ) | (565 | ) | (744 | ) | (954 | ) | (1,842 | ) | (2,796 | ) | ||||||||||||
Total Interest Bearing Deposits | 186 | (1,268 | ) | (1,082 | ) | 526 | (4,939 | ) | (4,413 | ) | ||||||||||||||
Subordinated Debentures | - | (5 | ) | (5 | ) | - | (60 | ) | (60 | ) | ||||||||||||||
Total Interest Bearing Liabilities | 186 | (1,273 | ) | (1,087 | ) | 526 | (4,999 | ) | (4,473 | ) | ||||||||||||||
Total Change on a Tax Equivalent Basis | $ | 517 | $ | 868 | $ | 1,386 | $ | 10,043 | $ | 431 | $ | 10,474 |
Three Months Ended June 30, 2022 compared with 2021 | Six Months Ended June 30, 2022 compared with 2021 | |||||||||||||||||||||||
Increase (Decrease) Due to: | Increase (Decrease) Due to: | |||||||||||||||||||||||
(Dollars in thousands) | Volume | Rate | Net | Volume | Rate | Net | ||||||||||||||||||
Interest income: | ||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 30 | $ | 1,215 | $ | 1,245 | $ | 164 | $ | 1,344 | $ | 1,508 | ||||||||||||
Securities: | ||||||||||||||||||||||||
Taxable securities | 1,165 | 248 | 1,413 | 2,016 | 181 | 2,197 | ||||||||||||||||||
Non-taxable securities | (123 | ) | 98 | (25 | ) | (137 | ) | 91 | (46 | ) | ||||||||||||||
Total securities | 1,042 | 346 | 1,388 | 1,879 | 272 | 2,151 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 5,108 | (4,105 | ) | 1,003 | 7,420 | (6,118 | ) | 1,302 | ||||||||||||||||
Agricultural | 946 | 22 | 968 | 1,417 | 208 | 1,625 | ||||||||||||||||||
Residential and home equity | 1,325 | (1,448 | ) | (123 | ) | 436 | 71 | 507 | ||||||||||||||||
Construction | 183 | 175 | 358 | 155 | 278 | 433 | ||||||||||||||||||
Total real estate | 7,562 | (5,356 | ) | 2,206 | 9,428 | (5,561 | ) | 3,867 | ||||||||||||||||
Commercial & industrial | 3,275 | (3,074 | ) | 201 | 2,491 | (1,602 | ) | 889 | ||||||||||||||||
Agricultural | 424 | 7 | 431 | 762 | (140 | ) | 622 | |||||||||||||||||
Commercial leases | (559 | ) | 508 | (51 | ) | (547 | ) | 568 | 21 | |||||||||||||||
Consumer and other | (17,178 | ) | 16,297 | (881 | ) | (18,389 | ) | 15,242 | (3,147 | ) | ||||||||||||||
Total loans | (6,477 | ) | 8,383 | 1,906 | (6,257 | ) | 8,509 | 2,252 | ||||||||||||||||
Non-marketable securities | 10 | (4 | ) | 6 | 51 | 70 | 121 | |||||||||||||||||
Total interest income | (5,395 | ) | 9,940 | 4,545 | (4,162 | ) | 10,194 | 6,032 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | 35 | 2 | 37 | 164 | (162 | ) | 2 | |||||||||||||||||
Savings and money market accounts | 235 | (246 | ) | (11 | ) | 276 | (363 | ) | (87 | ) | ||||||||||||||
Certificates of deposit greater than $250,000 | (3 | ) | (79 | ) | (82 | ) | (8 | ) | (233 | ) | (241 | ) | ||||||||||||
Certificates of deposit less than $250,000 | (15 | ) | (90 | ) | (105 | ) | (39 | ) | (230 | ) | (269 | ) | ||||||||||||
Total interest bearing deposits | 252 | (413 | ) | (161 | ) | 393 | (988 | ) | (595 | ) | ||||||||||||||
Short-term borrowings | - | - | - | - | - | - | ||||||||||||||||||
Subordinated debentures | - | 24 | 24 | - | 27 | 27 | ||||||||||||||||||
Total interest expense | 252 | (389 | ) | (137 | ) | 393 | (961 | ) | (568 | ) | ||||||||||||||
Net interest income | $ | (5,647 | ) | $ | 10,329 | $ | 4,682 | $ | (4,556 | ) | $ | 11,156 | $ | 6,600 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Better / (Worse) | % Better / (Worse) | 2022 | 2021 | $ Better / (Worse) | % Better / (Worse) | ||||||||||||||||||||||||
Selected Income Statement Information: | ||||||||||||||||||||||||||||||||
Interest income | $ | 45,695 | $ | 41,150 | $ | 4,545 | 11.04 | % | $ | 88,789 | $ | 82,757 | $ | 6,032 | 7.29 | % | ||||||||||||||||
Interest expense | 976 | 1,113 | 137 | 12.31 | % | 1,861 | 2,429 | 568 | 23.38 | % | ||||||||||||||||||||||
Net interest income | 44,719 | 40,037 | 4,682 | 11.69 | % | 86,928 | 80,328 | 6,600 | 8.22 | % | ||||||||||||||||||||||
Provision for credit losses | 1,500 | - | (1,500 | ) | 0.00 | % | 1,500 | 1,250 | (250 | ) | (20.00 | %) | ||||||||||||||||||||
Net interest income after provision for credit losses | 43,219 | 40,037 | 3,182 | 7.95 | % | 85,428 | 79,078 | 6,350 | 8.03 | % | ||||||||||||||||||||||
Non-interest income | 3,512 | 4,959 | (1,447 | ) | (29.18 | %) | 7,824 | 11,675 | (3,851 | ) | (32.99 | %) | ||||||||||||||||||||
Non-interest expense | 23,031 | 23,603 | 572 | 2.42 | % | 46,819 | 47,147 | 328 | 0.70 | % | ||||||||||||||||||||||
Income before income tax expense | 23,700 | 21,393 | 2,307 | 10.78 | % | 46,433 | 43,606 | 2,827 | 6.48 | % | ||||||||||||||||||||||
Income tax expense | 5,257 | 5,240 | (17 | ) | (0.32 | %) | 10,932 | 10,740 | (192 | ) | (1.79 | %) | ||||||||||||||||||||
Net income | $ | 18,443 | $ | 16,153 | $ | 2,290 | 14.18 | % | $ | 35,501 | $ | 32,866 | $ | 2,635 | 8.02 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Balance at Beginning of Period | $ | 60,229 | $ | 55,058 | $ | 58,862 | $ | 55,012 | ||||||||
Charge-Offs | (17 | ) | (25 | ) | (33 | ) | (487 | ) | ||||||||
Recoveries | 91 | 65 | 224 | 273 | ||||||||||||
Provision | - | 1,700 | 1,250 | 2,000 | ||||||||||||
Balance at End of Period | $ | 60,303 | $ | 56,798 | $ | 60,303 | $ | 56,798 |
September 30, 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 | - | - | - | - | - | - | - | (33 | ) | - | - | (33 | ) | |||||||||||||||||||||||||||||||
Recoveries | - | - | - | 74 | 17 | 29 | 83 | 21 | - | - | 224 | |||||||||||||||||||||||||||||||||
Provision | 1,200 | 794 | (210 | ) | (70 | ) | (129 | ) | (238 | ) | 738 | (23 | ) | (872 | ) | 60 | 1,250 | |||||||||||||||||||||||||||
Ending Balance- September 30, 2021 | $ | 28,879 | $ | 9,427 | $ | 1,433 | $ | 964 | $ | 1,912 | $ | 4,605 | $ | 10,782 | $ | 298 | $ | 859 | $ | 1,144 | $ | 60,303 | ||||||||||||||||||||||
Third Quarter Allowance for Credit Losses: | ||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- June 30, 2021 | $ | 28,890 | $ | 9,107 | $ | 1,405 | $ | 957 | $ | 1,899 | $ | 4,552 | $ | 9,920 | $ | 281 | $ | 1,639 | $ | 1,579 | $ | 60,229 | ||||||||||||||||||||||
Charge-Offs | - | - | - | - | - | - | - | (17 | ) | - | - | (17 | ) | |||||||||||||||||||||||||||||||
Recoveries | - | - | - | 15 | 6 | 24 | 38 | 8 | - | - | 91 | |||||||||||||||||||||||||||||||||
Provision | (11 | ) | 320 | 28 | (8 | ) | 7 | 29 | 824 | 26 | (780 | ) | (435 | ) | - | |||||||||||||||||||||||||||||
Ending Balance- September 30, 2021 | $ | 28,879 | $ | 9,427 | $ | 1,433 | $ | 964 | $ | 1,912 | $ | 4,605 | $ | 10,782 | $ | 298 | $ | 859 | $ | 1,144 | $ | 60,303 |
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Available-for-Sale Securities | ||||||||
U.S. Treasury notes | $ | 4,952 | $ | 10,089 | ||||
U.S. Government-sponsored securities | 5,441 | 6,374 | ||||||
Mortgage-backed securities(1) | 203,607 | 251,120 | ||||||
Collateralized mortgage obligations(1) | 1,502 | 2,436 | ||||||
Corporate securities | 9,526 | - | ||||||
Other | 310 | 435 | ||||||
Total available-for-sale securities | $ | 225,338 | $ | 270,454 |
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Held-to-Maturity Securities | ||||||||
Mortgage-backed securities(1) | $ | 721,510 | $ | 596,775 | ||||
Collateralized mortgage obligations(1) | 84,414 | 73,781 | ||||||
Municipal securities | 62,459 | 66,496 | ||||||
Total held-to-maturity securities | $ | 868,383 | $ | 737,052 |
As of June 30, 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 | $ | 4,952 | 2.39 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 4,952 | 2.39 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 12 | 1.09 | % | 104 | 2.90 | % | 380 | 1.70 | % | 4,945 | 1.52 | % | 5,441 | 1.56 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | - | 0.00 | % | 24,553 | 2.36 | % | 34,650 | 2.40 | % | 144,403 | 1.72 | % | 203,607 | 1.91 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 1,502 | 2.30 | % | 1,502 | 2.30 | % | |||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | 4,738 | 0.78 | % | 4,788 | 0.90 | % | - | 0.00 | % | 9,526 | 0.84 | % | |||||||||||||||||||||||||
Other | 310 | 1.72 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 310 | 1.72 | % | |||||||||||||||||||||||||
Total securities available-for-sale | $ | 5,273 | 2.35 | % | $ | 29,395 | 2.10 | % | $ | 39,818 | 2.21 | % | $ | 150,851 | 1.72 | % | $ | 225,338 | 1.87 | % |
As of June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 14,693 | 7.90 | % | $ | 706,817 | 1.87 | % | $ | 721,510 | 1.85 | % | ||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 84,414 | 1.88 | % | 84,414 | 1.88 | % | |||||||||||||||||||||||||
Municipal securities | 700 | 1.51 | % | 7,089 | 2.81 | % | 15,948 | 3.40 | % | 38,723 | 2.38 | % | 62,460 | 2.68 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 700 | 1.51 | % | $ | 7,089 | 2.81 | % | $ | 30,641 | 2.06 | % | $ | 829,954 | 1.90 | % | $ | 868,383 | 1.91 | % |
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 | % | |||||||||||||||||||||||||
Municipal securities | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | |||||||||||||||||||||||||
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 | % |
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 10,641 | 0.41 | % | $ | 586,134 | 1.72 | % | $ | 596,775 | 1.70 | % | ||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 73,781 | 1.71 | % | 73,781 | 1.71 | % | |||||||||||||||||||||||||
Municipal securities | 308 | 1.10 | % | 8,487 | 2.19 | % | 18,433 | 3.42 | % | 39,268 | 4.52 | % | 66,496 | 3.90 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 308 | 1.10 | % | $ | 8,487 | 2.19 | % | $ | 29,074 | 2.32 | % | $ | 699,183 | 1.88 | % | $ | 737,052 | 1.90 | % |
(in thousands) | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||||||
Commercial Real Estate | $ | 1,126,230 | 35.7 | % | $ | 971,326 | 31.2 | % | $ | 887,999 | 28.4 | % | ||||||||||||
Agricultural Real Estate | 656,337 | 20.8 | % | 643,014 | 20.7 | % | 639,172 | 20.4 | % | |||||||||||||||
Real Estate Construction | 178,451 | 5.7 | % | 185,741 | 6.0 | % | 186,623 | 6.0 | % | |||||||||||||||
Residential 1st Mortgages | 309,728 | 9.8 | % | 299,379 | 9.6 | % | 293,489 | 9.4 | % | |||||||||||||||
Home Equity Lines & Loans | 31,664 | 1.0 | % | 34,239 | 1.1 | % | 35,875 | 1.1 | % | |||||||||||||||
Agricultural | 235,085 | 7.5 | % | 264,372 | 8.5 | % | 252,031 | 8.1 | % | |||||||||||||||
Commercial | 394,326 | 12.5 | % | 374,816 | 12.0 | % | 367,052 | 11.7 | % | |||||||||||||||
Consumer & Other (1) | 129,665 | 4.1 | % | 235,529 | 7.6 | % | 359,697 | 11.5 | % | |||||||||||||||
Leases | 90,022 | 2.9 | % | 103,117 | 3.3 | % | 105,511 | 3.4 | % | |||||||||||||||
Total Gross Loans & Leases | 3,151,508 | 100.0 | % | 3,111,533 | 100.0 | % | 3,127,449 | 100.0 | % | |||||||||||||||
Less: Unearned Income | 11,707 | 11,941 | 15,518 | |||||||||||||||||||||
Subtotal | 3,139,801 | 3,099,592 | 3,111,931 | |||||||||||||||||||||
Less: Allowance for Credit Losses | 60,303 | 58,862 | 56,798 | |||||||||||||||||||||
Net Loans & Leases | $ | 3,079,498 | $ | 3,040,730 | $ | 3,055,133 |
June 30, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Gross Loans and Leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 1,210,195 | 37.14 | % | $ | 1,167,516 | 35.95 | % | ||||||||
Agricultural | 709,624 | 21.78 | % | 672,830 | 20.72 | % | ||||||||||
Residential and home equity | 371,874 | 11.41 | % | 350,581 | 10.79 | % | ||||||||||
Construction | 162,713 | 4.99 | % | 177,163 | 5.45 | % | ||||||||||
Total real estate | 2,454,406 | 75.32 | % | 2,368,090 | 72.91 | % | ||||||||||
Commercial & industrial | 439,455 | 13.49 | % | 427,799 | 13.17 | % | ||||||||||
Agricultural | 261,856 | 8.04 | % | 276,684 | 8.52 | % | ||||||||||
Commercial leases | 89,095 | 2.73 | % | 96,971 | 2.99 | % | ||||||||||
Consumer and other(1) | 13,588 | 0.42 | % | 78,367 | 2.41 | % | ||||||||||
Total gross loans and leases | $ | 3,258,400 | 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 | $ | 89,939 | $ | 267,837 | $ | 818,910 | $ | 33,509 | $ | 1,210,195 | ||||||||||
Agricultural | 34,682 | 154,188 | 447,414 | 73,340 | 709,624 | |||||||||||||||
Residential and home equity | 120 | 4,023 | 118,208 | 249,523 | 371,874 | |||||||||||||||
Construction | 115,397 | 47,316 | - | - | 162,713 | |||||||||||||||
Total real estate | 240,138 | 473,364 | 1,384,532 | 356,372 | 2,454,406 | |||||||||||||||
Commercial & industrial | 163,698 | 222,395 | 47,140 | 6,222 | 439,455 | |||||||||||||||
Agricultural | 160,447 | 86,559 | 14,850 | - | 261,856 | |||||||||||||||
Commercial leases | 6,870 | 31,772 | 50,453 | - | 89,095 | |||||||||||||||
Consumer and other(1) | 952 | 10,766 | 1,870 | - | 13,588 | |||||||||||||||
Total gross loans and leases | $ | 572,105 | $ | 824,856 | $ | 1,498,845 | $ | 362,594 | $ | 3,258,400 | ||||||||||
Rate Structure for Loans | ||||||||||||||||||||
Fixed Rate | $ | 481,614 | $ | 492,971 | $ | 396,902 | $ | 123,043 | $ | 1,494,530 | ||||||||||
Adjustable Rate | 90,491 | 331,885 | 1,101,943 | 239,551 | 1,763,870 | |||||||||||||||
Total gross loans and leases | $ | 572,105 | $ | 824,856 | $ | 1,498,845 | $ | 362,594 | $ | 3,258,400 |
(in thousands) | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||
Non-Performing Loans & Leases | $ | 516 | $ | 495 | $ | 498 | ||||||
Other Real Estate | 873 | 873 | 873 | |||||||||
Total Non-Performing Assets | $ | 1,389 | $ | 1,368 | $ | 1,371 | ||||||
Non-Performing Loans & Leases | ||||||||||||
as a % of Total Loans & Leases | 0.02 | % | 0.02 | % | 0.02 | % | ||||||
Restructured Loans & Leases (Performing) | $ | 7,631 | $ | 7,868 | $ | 7,890 |
(Dollars in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Non-performing assets: | ||||||||
Non-accrual loans and leases, not TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 1,674 | $ | - | ||||
Agricultural | 475 | 18 | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | 2,149 | 18 | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | 879 | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | 3,028 | 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 | $ | 3,028 | $ | 516 | ||||
Other real estate owned ("OREO") | $ | 873 | $ | 873 | ||||
Total non-performing assets | $ | 3,901 | $ | 1,389 | ||||
Performing TDRs | $ | 1,389 | $ | 1,824 | ||||
Selected ratios: | ||||||||
Non-performing loans to total loans | 0.09 | % | 0.02 | % | ||||
Non-performing assets to total assets | 0.07 | % | 0.03 | % |
Six Months Ended June 30, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Allowance for credit losses: | ||||||||
Balance at beginning of year | $ | 61,007 | $ | 58,862 | ||||
Provision / (recapture) for credit losses | 1,107 | 1,250 | ||||||
Charge-offs: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & industrial | (276 | ) | - | |||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | (18 | ) | (16 | ) | ||||
Total charge-offs | (294 | ) | (16 | ) | ||||
Recoveries: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | 119 | 70 | ||||||
Construction | - | - | ||||||
Total real estate | 119 | 70 | ||||||
Commercial & industrial | 131 | 45 | ||||||
Agricultural | 4 | 5 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | 6 | 13 | ||||||
Total recoveries | 260 | 133 | ||||||
Net recoveries / charge-offs | (34 | ) | 117 | |||||
Balance at end of period | $ | 62,080 | $ | 60,229 | ||||
Selected financial information: | ||||||||
Gross loans held for investment | $ | 3,258,400 | $ | 3,046,492 | ||||
Average loans | 3,222,763 | 3,062,940 | ||||||
Non-performing loans | 3,028 | 548 | ||||||
Allowance for credit losses to non-performing loans | 2050.20 | % | 10990.69 | % | ||||
Net (recoveries)/charge-offs to average loans | 0.00 | % | 0.00 | % | ||||
Provision for credit losses to average loans | 0.03 | % | 0.04 | % | ||||
Allowance for credit losses to loans held for investment | 1.91 | % | 1.98 | % |
June 30, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 17,879 | 37.14 | % | $ | 28,536 | 35.95 | % | ||||||||
Agricultural | 16,837 | 21.78 | % | 9,613 | 20.72 | % | ||||||||||
Residential and home equity | 6,874 | 11.41 | % | 2,847 | 10.79 | % | ||||||||||
Construction | 2,876 | 4.99 | % | 1,456 | 5.45 | % | ||||||||||
Total real estate | 44,466 | 75.32 | % | 42,452 | 72.91 | % | ||||||||||
Commercial & Industrial | 10,139 | 13.49 | % | 11,489 | 13.17 | % | ||||||||||
Agricultural | 5,669 | 8.04 | % | 5,465 | 8.52 | % | ||||||||||
Commercial leases | 1,645 | 2.73 | % | 938 | 2.99 | % | ||||||||||
Consumer and other | 161 | 0.42 | % | 663 | 2.41 | % | ||||||||||
Total allowance for credit losses | $ | 62,080 | 100.00 | % | $ | 61,007 | 100.00 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | ||||||||||||||||||
Total deposits: | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,116,436 | 578 | 0.10 | % | $ | 968,496 | $ | 576 | 0.12 | % | |||||||||||||
Savings and money market | 1,531,069 | 703 | 0.09 | % | 1,312,122 | 790 | 0.12 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 166,725 | 203 | 0.25 | % | 169,967 | 444 | 0.53 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 221,487 | 192 | 0.17 | % | 243,583 | 461 | 0.38 | % | ||||||||||||||||
Total interest-bearing deposits | 3,035,717 | 1,676 | 0.11 | % | 2,694,168 | 2,271 | 0.17 | % | ||||||||||||||||
Non-interest bearing deposits | 1,728,962 | 1,522,029 | ||||||||||||||||||||||
Total deposits | $ | 4,764,679 | $ | 1,676 | 0.07 | % | $ | 4,216,197 | $ | 2,271 | 0.11 | % |
June 30, | December 31, | |||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Deposits greater than $250,000 | $ | 2,817,460 | $ | 2,708,576 | ||||
Certificates of deposit greater $250,000, by maturity: | ||||||||
Less than 3 months | 58,135 | 59,591 | ||||||
3 months to 6 months | 46,841 | 37,182 | ||||||
6 months to 12 months | 50,299 | 59,945 | ||||||
More than 12 months | 6,965 | 12,147 | ||||||
Total time deposits greater than $250,000 | $ | 162,240 | $ | 168,865 | ||||
Total deposits greater than $250,000 | $ | 2,979,700 | $ | 2,877,441 |
(in thousands) | Actual | Current Regulatory Capital Requirements | Well Capitalized Under Prompt Corrective Action | |||||||||||||||||||||
The Company: | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
As of September 30, 2021 | ||||||||||||||||||||||||
Total Capital Ratio | $ | 497,797 | 13.28 | % | $ | 299,941 | 8.0 | % | N/A | N/A | ||||||||||||||
Common Equity Tier 1 Capital Ratio | $ | 440,761 | 11.76 | % | $ | 168,717 | 4.5 | % | N/A | N/A | ||||||||||||||
Tier 1 Capital Ratio | $ | 450,761 | 12.02 | % | $ | 224,956 | 6.0 | % | N/A | N/A | ||||||||||||||
Tier 1 Leverage Ratio | $ | 450,761 | 8.97 | % | $ | 200,908 | 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 September 30, 2021 | ||||||||||||||||||||||||
Total Capital Ratio | $ | 497,783 | 13.28 | % | $ | 299,906 | 8.0 | % | $ | 374,883 | 10.0 | % | ||||||||||||
Common Equity Tier 1 Capital Ratio | $ | 450,753 | 12.02 | % | $ | 168,697 | 4.5 | % | $ | 243,674 | 6.5 | % | ||||||||||||
Tier 1 Capital Ratio | $ | 450,753 | 12.02 | % | $ | 224,930 | 6.0 | % | $ | 299,906 | 8.0 | % | ||||||||||||
Tier 1 Leverage Ratio | $ | 450,753 | 8.98 | % | $ | 200,850 | 4.0 | % | $ | 251,063 | 5.0 | % |
(Dollars in thousands) | Minimum to be Categorized as "Well Capitalized" | Minimum to be Categorized as "Adequately Capitalized" | June 30, 2022 | December 31, 2021 | ||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||
CET1 capital to risk-weighted assets | N/A | 4.50 | % | 11.55 | % | 11.68 | % | |||||||||
Tier 1 capital to risk-weighted assets | N/A | 6.00 | % | 11.80 | % | 11.94 | % | |||||||||
Risk-based capital to risk-weighted assets | N/A | 8.00 | % | 13.05 | % | 13.19 | % | |||||||||
Tier 1 leverage capital ratio | N/A | 4.00 | % | 8.94 | % | 8.92 | % | |||||||||
Farmers & Merchants Bank | ||||||||||||||||
CET1 capital to risk-weighted assets | 6.50 | % | 4.50 | % | 11.72 | % | 11.91 | % | ||||||||
Tier 1 capital to risk-weighted assets | 8.00 | % | 6.00 | % | 11.72 | % | 11.91 | % | ||||||||
Risk-based capital to risk-weighted assets | 10.00 | % | 8.00 | % | 12.97 | % | 13.17 | % | ||||||||
Tier 1 leverage capital ratio | 5.00 | % | 4.00 | % | 8.89 | % | 8.91 | % |
(in thousands) | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||
Commitments to Extend Credit | $ | 1,058,760 | $ | 1,040,844 | $ | 969,258 | ||||||
Letters of Credit | 19,391 | 18,846 | 19,816 | |||||||||
Performance Guarantees Under Interest Rate Swap Contracts Entered Into Between Our Borrowing Customers and Third Parties | 1,808 | 2,786 | 3,797 |
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 | $ | 995,795 | $ | 402,558 | $ | 410,901 | $ | 27,166 | $ | 155,170 | ||||||||||
Standby letters of credit | 16,484 | 7,076 | 7,662 | 1,470 | 276 | |||||||||||||||
Total off-balance sheet commitments | $ | 1,012,279 | $ | 409,634 | $ | 418,563 | $ | 28,636 | $ | 155,446 |
June 30, 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 | $ | 796,368 | $ | 796,368 | $ | - | $ | 796,368 | $ | 1,169,949 | ||||||||||
Federal Reserve BIC | 656,756 | 656,756 | - | 656,756 | 869,376 | |||||||||||||||
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 | $ | 1,571,124 | $ | 1,571,124 | $ | - | $ | 1,571,124 | $ | 2,039,325 |
Item 3. | Quantitative and Qualitative Disclosures |
Item 4. | Controls and Procedures |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
(a) | 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: |
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.* | ||
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 Document. | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
FARMERS & MERCHANTS BANCORP | ||
Date: | /s/ Kent A. Steinwert | |
Kent A. Steinwert | ||
Director, Chairman, President | ||
(Principal Executive Officer) |
Date: August 8, 2022 | ||
/s/ Stephen W. Haley | ||
Stephen W. Haley | ||
Executive Vice President and | ||
Chief Financial Officer | ||
(Principal Financial |