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 | |||
32 | |||
37 | |||
44 | |||
57 | |||
PART II. - OTHER INFORMATION | |||
57 | |||
57 | |||
58 | |||
58 | |||
58 | |||
58 | |||
(Dollars in thousands, except share and per share amounts) | September 30, 2022 | December 31, 2021 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 82,932 | $ | 52,499 | ||||
Interest bearing deposits with banks | 799,951 | 662,961 | ||||||
Total cash and cash equivalents | 882,883 | 715,460 | ||||||
Securities available-for-sale, at fair value | 177,454 | 270,454 | ||||||
Securities held-to-maturity, fair value $690,922 and $725,841, respectively | 852,665 | 737,052 | ||||||
Allowance for credit losses | (393 | ) | - | |||||
Total investment securities | 1,029,726 | 1,007,506 | ||||||
Non-marketable securities | 15,549 | 15,549 | ||||||
Loans and leases held for investment | 3,323,862 | 3,237,177 | ||||||
Allowance for credit losses | (63,617 | ) | (61,007 | ) | ||||
Loans held for investment, net | 3,260,245 | 3,176,170 | ||||||
Bank-owned life insurance | 72,566 | 71,411 | ||||||
Premises and equipment, net | 49,183 | 47,730 | ||||||
Deferred income tax assets | 34,411 | 25,542 | ||||||
Accrued interest receivable | 20,069 | 18,098 | ||||||
Goodwill | 11,183 | 11,183 | ||||||
Other intangibles | 2,957 | 3,402 | ||||||
Other real estate owned | 873 | 873 | ||||||
Other assets | 87,136 | 84,796 | ||||||
TOTAL ASSETS | $ | 5,466,781 | $ | 5,177,720 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Non-interest bearing | $ | 1,802,623 | $ | 1,750,330 | ||||
Interest bearing: | ||||||||
Demand | 1,158,588 | 1,097,337 | ||||||
Savings and money market | 1,587,662 | 1,400,000 | ||||||
Certificates of deposit | 360,384 | 392,485 | ||||||
Total interest bearing | 3,106,634 | 2,889,822 | ||||||
Total deposits | 4,909,257 | 4,640,152 | ||||||
Subordinated debentures | 10,310 | 10,310 | ||||||
Interest payable and other liabilities | 79,036 | 64,122 | ||||||
TOTAL LIABILITIES | 4,998,603 | 4,714,584 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred shares, no par value, 1,000,000 shares authorized and, none issued or outstanding | - | - | ||||||
Common shares, $0.01 par value, 7,500,000 authorized 770,822 and 789,646 outstanding at September 30, 2022 and December 31, 2021, respectively | 8 | 8 | ||||||
Additional paid-in capital | 59,611 | 77,516 | ||||||
Retained earnings | 436,258 | 387,331 | ||||||
Accumulated other comprehensive (loss) / income, net of taxes | (27,699 | ) | (1,719 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 468,178 | 463,136 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,466,781 | $ | 5,177,720 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest income | ||||||||||||||||
Interest and fees on loans and leases | $ | 41,868 | $ | 36,088 | $ | 117,871 | $ | 109,839 | ||||||||
Interest and dividends on investments | 5,686 | 3,925 | 16,697 | 12,664 | ||||||||||||
Interest on deposits with others | 4,159 | 328 | 5,934 | 595 | ||||||||||||
Total interest income | 51,713 | 40,341 | 140,502 | 123,098 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 1,122 | 929 | 2,798 | 3,200 | ||||||||||||
Subordinated debentures | 134 | 78 | 319 | 236 | ||||||||||||
Total interest expense | 1,256 | 1,007 | 3,117 | 3,436 | ||||||||||||
Net interest income | 50,457 | 39,334 | 137,385 | 119,662 | ||||||||||||
Provision for credit losses | 1,500 | - | 3,000 | 1,250 | ||||||||||||
Net interest income after provision for credit losses | 48,957 | 39,334 | 134,385 | 118,412 | ||||||||||||
Non-interest income | ||||||||||||||||
Card processing | 1,791 | 1,788 | 5,375 | 5,173 | ||||||||||||
Service charges on deposit accounts | 638 | 808 | 2,318 | 2,125 | ||||||||||||
Increase in cash surrender value of BOLI | 566 | 549 | 1,668 | 1,616 | ||||||||||||
Net (loss)/gain on sale of investment securities available-for-sale | (2,987 | ) | - | (2,985 | ) | 2,554 | ||||||||||
Net gain/(loss) on deferred compensation benefits | 352 | 615 | (227 | ) | 1,828 | |||||||||||
Other | 1,199 | 857 | 3,234 | 2,996 | ||||||||||||
Total non-interest income | 1,559 | 4,617 | 9,383 | 16,292 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and employee benefits | 15,994 | 14,453 | 49,181 | 47,375 | ||||||||||||
Net gain/(loss) on deferred compensation benefits | 352 | 615 | (227 | ) | 1,828 | |||||||||||
Occupancy | 1,196 | 1,145 | 3,500 | 3,554 | ||||||||||||
Data Processing | 1,250 | 1,251 | 3,698 | 3,688 | ||||||||||||
FDIC insurance | 366 | 317 | 1,076 | 902 | ||||||||||||
Marketing | 303 | 63 | 959 | 669 | ||||||||||||
Legal | 49 | 85 | 733 | 485 | ||||||||||||
Other | 4,865 | 2,656 | 12,274 | 9,231 | ||||||||||||
Total non-interest expense | 24,375 | 20,585 | 71,194 | 67,732 | ||||||||||||
INCOME BEFORE INCOME TAXES | 26,141 | 23,366 | 72,574 | 66,972 | ||||||||||||
Income tax expense | 6,605 | 5,864 | 17,537 | 16,604 | ||||||||||||
NET INCOME | $ | 19,536 | $ | 17,502 | $ | 55,037 | $ | 50,368 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 25.20 | $ | 22.16 | $ | 70.47 | $ | 63.79 | ||||||||
Diluted | $ | 25.20 | $ | 22.16 | $ | 70.47 | $ | 63.79 | ||||||||
Weighted average number of common shares | ||||||||||||||||
Basic | 775,109 | 789,646 | 780,988 | 789,646 | ||||||||||||
Diluted | 775,109 | 789,646 | 780,988 | 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income | $ | 19,536 | $ | 17,502 | $ | 55,037 | $ | 50,368 | ||||||||
Other comprehensive income | ||||||||||||||||
Unrealized holding (losses)/gains on securities available-for-sale | (12,378 | ) | (2,237 | ) | (39,677 | ) | (16,846 | ) | ||||||||
Reclassification adjustment for (gains)/losses on available-for-sale securities | 2,987 | - | 2,985 | (2,554 | ) | |||||||||||
Amortization of unrealized loss on securities transferred to held-to-maturity | (52 | ) | (135 | ) | (193 | ) | (373 | ) | ||||||||
Net unrealized holding (losses)/gains on securities available-for-sale | (9,443 | ) | (2,372 | ) | (36,885 | ) | (19,773 | ) | ||||||||
Income tax benefit/(expense) | 2,792 | 702 | 10,905 | 5,846 | ||||||||||||
Other comprehensive (loss)/income, net of tax | (6,651 | ) | (1,670 | ) | (25,980 | ) | (13,927 | ) | ||||||||
Total comprehensive income | $ | 12,885 | $ | 15,832 | $ | 29,057 | $ | 36,441 |
(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 and per share amounts) | Common Shares | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Total | ||||||||||||||||||
Balance as of July 1, 2022 | 777,190 | $ | 8 | $ | 65,671 | $ | 416,722 | $ | (21,048 | ) | $ | 461,353 | ||||||||||||
Net income | - | - | - | 19,536 | - | 19,536 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (6,651 | ) | (6,651 | ) | ||||||||||||||||
Repurchase of common stock | (6,368 | ) | - | (6,060 | ) | - | - | (6,060 | ) | |||||||||||||||
Balance as of September 30, 2022 | 770,822 | $ | 8 | $ | 59,611 | $ | 436,258 | $ | (27,699 | ) | $ | 468,178 | ||||||||||||
Balance as of July 1, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 360,021 | $ | 814 | $ | 438,359 | |||||||||||||
Net income | - | - | - | 17,502 | - | 17,502 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (1,670 | ) | (1,670 | ) | ||||||||||||||||
Balance as of September 30, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 377,523 | $ | (856 | ) | $ | 454,191 |
(Dollars in thousands, except share and per share amounts) | Common Shares | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Total | ||||||||||||||||||
Balance as of January 1, 2022 | 789,646 | $ | 8 | $ | 77,516 | $ | 387,331 | $ | (1,719 | ) | $ | 463,136 | ||||||||||||
Net income | - | - | - | 55,037 | - | 55,037 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (25,980 | ) | (25,980 | ) | ||||||||||||||||
Cash dividends declared ($7.85 per share) | - | - | - | (6,110 | ) | - | (6,110 | ) | ||||||||||||||||
Repurchase of common stock | (18,824 | ) | - | (17,905 | ) | - | - | (17,905 | ) | |||||||||||||||
Balance as of September 30, 2022 | 770,822 | $ | 8 | $ | 59,611 | $ | 436,258 | $ | (27,699 | ) | $ | 468,178 | ||||||||||||
Balance as of January 1, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 333,070 | $ | 13,071 | $ | 423,665 | |||||||||||||
Net income | - | - | - | 50,368 | - | 50,368 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (13,927 | ) | (13,927 | ) | ||||||||||||||||
Cash dividends declared ($7.50 per share) | - | - | - | (5,922 | ) | - | (5,922 | ) | ||||||||||||||||
Cash dividends returned | - | - | - | 7 | - | 7 | ||||||||||||||||||
Balance as of September 30, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 377,523 | $ | (856 | ) | $ | 454,191 |
(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 |
Nine Months Ended September 30, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 55,037 | $ | 50,368 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for credit losses | 3,000 | 1,250 | ||||||
Depreciation and amortization | 1,849 | 1,971 | ||||||
Net amortization of securities premiums and discounts | 341 | 1,133 | ||||||
Increase in cash surrender value of BOLI | (1,666 | ) | (1,616 | ) | ||||
Decrease /(increase) in deferred income taxes, net | 2,356 | (456 | ) | |||||
Loss/(gains) on sale of securities available-for-sale | 2,985 | (2,554 | ) | |||||
Net changes in: | ||||||||
Other assets | (2,362 | ) | (8,772 | ) | ||||
Other liabilities | 18,134 | 10,738 | ||||||
Net cash provided by operating activities | 79,674 | 52,062 | ||||||
Cash flows from investing activities: | ||||||||
Net change in loans held for investment | (86,401 | ) | (39,956 | ) | ||||
Purchase of available-for-sale securities | (10,135 | ) | (257,228 | ) | ||||
Purchase of held-to-maturity securities | (168,634 | ) | (194,332 | ) | ||||
Proceeds from sales, maturities, calls and pay downs of available-for-sale securities | 62,979 | 397,454 | ||||||
Proceeds from maturities, calls and pay downs of held-to-maturity securities | 52,884 | 29,042 | ||||||
Purchase of premises and equipment | (3,318 | ) | (1,001 | ) | ||||
Purchase of other investments | (5,300 | ) | (4,516 | ) | ||||
Redemption of other investments | - | 2,556 | ||||||
Proceeds from bank-owned life insurance | 511 | - | ||||||
Proceeds from sale of assets | 73 | 635 | ||||||
Net cash used in investing activities | (157,341 | ) | (67,346 | ) | ||||
Cash flows from financing activities: | ||||||||
Net increase in deposits | 269,105 | 508,127 | ||||||
Cash dividends paid | (6,110 | ) | (5,915 | ) | ||||
Net cash used in share repurchase of common stock | (17,905 | ) | - | |||||
Net provided by financing activities | 245,090 | 502,212 | ||||||
Net change in cash and cash equivalents | 167,423 | 486,928 | ||||||
Cash and cash equivalents, beginning of period | 715,460 | 383,837 | ||||||
Cash and cash equivalents, end of period | $ | 882,883 | $ | 870,765 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 3,832 | $ | 4,369 | ||||
Income taxes paid | $ | 11,451 | $ | 22,530 | ||||
Supplemental disclosures of non-cash transactions: | ||||||||
Investment securities available-for-sale transferred to held-to-maturity | $ | - | $ | 316,925 | ||||
Lease Liabilities Arising from Obtaining Right-of-Use Assets | $ | - | $ | 302 |
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 |
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 | ) | $ | - |
(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 September 30, 2022 | ||||||||||||||||
U.S. Treasury notes | $ | 4,979 | $ | - | $ | 38 | $ | 4,941 | ||||||||
U.S. Government-sponsored securities | 4,695 | 27 | 24 | 4,698 | ||||||||||||
Mortgage-backed securities (1) | 194,600 | 16 | 38,163 | 156,453 | ||||||||||||
Collateralized mortgage obligations (1) | 1,499 | - | 41 | 1,458 | ||||||||||||
Corporate securities | 10,046 | - | 452 | 9,594 | ||||||||||||
Other | 310 | - | - | 310 | ||||||||||||
Total available-for-sale securities | $ | 216,129 | $ | 43 | $ | 38,718 | $ | 177,454 |
Gross Unrealized | ||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of December 31, 2021 | ||||||||||||||||
U.S. Treasury notes | $ | 9,938 | $ | 151 | $ | - | $ | 10,089 | ||||||||
U.S. Government-sponsored securities | 6,351 | 62 | 39 | 6,374 | ||||||||||||
Mortgage-backed securities (1) | 253,300 | 3,200 | 5,380 | 251,120 | ||||||||||||
Collateralized mortgage obligations (1) | 2,412 | 24 | - | 2,436 | ||||||||||||
Other | 435 | - | - | 435 | ||||||||||||
Total available-for-sale securities | $ | 272,436 | $ | 3,437 | $ | 5,419 | $ | 270,454 |
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 September 30, 2022 | ||||||||||||||||||||
Municipal securities | $ | 60,827 | $ | - | $ | 735 | $ | 60,092 | $ | 393 | ||||||||||
Mortgage-backed securities (1) | 709,541 | - | 145,836 | 563,705 | - | |||||||||||||||
Collateralized mortgage obligations (1) | 82,297 | - | 15,172 | 67,125 | - | |||||||||||||||
Total held-to-maturity securities | $ | 852,665 | $ | - | $ | 161,743 | $ | 690,922 | $ | 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 | Allowance for Credit Losses | |||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||
Municipal securities | $ | 66,496 | $ | 701 | $ | - | $ | 67,197 | $ | - | ||||||||||
Mortgage-backed securities(1) | 596,775 | 45 | 11,764 | 585,056 | - | |||||||||||||||
Collateralized mortgage obligations(1) | 73,781 | 36 | 229 | 73,588 | - | |||||||||||||||
Total held-to-maturity securities | $ | 737,052 | $ | 782 | $ | 11,993 | $ | 725,841 | $ | - |
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 September 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 September 30, 2022 | ||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,941 | $ | 38 | $ | - | $ | - | $ | 4,941 | $ | 38 | ||||||||||||
U.S. Government-sponsored securities | 128 | 1 | 1,409 | 23 | 1,537 | 24 | ||||||||||||||||||
Mortgage-backed securities (1) | 37,141 | 1,928 | 117,680 | 36,235 | 154,821 | 38,163 | ||||||||||||||||||
Collateralized mortgage obligations (1) | 1,458 | 41 | - | - | 1,458 | 41 | ||||||||||||||||||
Corporate securities | 9,594 | 452 | - | - | 9,594 | 452 | ||||||||||||||||||
Total available-for-sale securities | $ | 53,262 | $ | 2,460 | $ | 119,089 | $ | 36,258 | $ | 172,351 | $ | 38,718 |
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 | $ | - | $ | 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 |
For the Nine Months Ended September 30, 2022 | ||||||||||||||||
(Dollars in thousands) | Municipal securities | Mortgage-backed securities | Collateralized Mortgage obligations | Total | ||||||||||||
Allowance for credit losses - securities | ||||||||||||||||
Beginning Balance | $ | - | $ | - | $ | - | $ | - | ||||||||
Provision for credit losses | 393 | - | - | 393 | ||||||||||||
Ending Balance | $ | 393 | $ | - | $ | - | $ | 393 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Securities maturing in: | ||||||||||||||||
One year or less | $ | 5,312 | $ | 5,274 | $ | 883 | $ | 883 | ||||||||
After one year through five years | 21,418 | 20,600 | 7,484 | 7,324 | ||||||||||||
After five years through ten years | 25,492 | 23,196 | 28,907 | 26,852 | ||||||||||||
After ten years | 163,907 | 128,384 | 815,391 | 655,863 | ||||||||||||
Total | $ | 216,129 | $ | 177,454 | $ | 852,665 | $ | 690,922 |
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 | ||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||
Breakdown by Category: | ||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,941 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
U.S. Government-sponsored securities | - | - | 4,698 | - | - | - | ||||||||||||||||||
Mortgage-backed securities (1) | - | - | 156,453 | - | - | 709,541 | ||||||||||||||||||
Collateralized mortgage obligations (1) | - | - | 1,458 | - | - | 82,297 | ||||||||||||||||||
Municipal securities | - | - | - | 18,025 | 386 | 42,416 | ||||||||||||||||||
Corporate securities | 4,795 | 4,799 | - | - | - | - | ||||||||||||||||||
Other | - | - | 310 | - | - | - | ||||||||||||||||||
Total Investment Grade | $ | 9,736 | $ | 4,799 | $ | 162,919 | $ | 18,025 | $ | 386 | $ | 834,254 |
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 | |||||||||
Nine months ended September 30, 2022 | $ | 31,394 | $ | 2 | $ | 2,987 | ||||||
Nine months ended September 30, 2021 | $ | 301,320 | $ | 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) | September 30, 2022 | December 31, 2021 | ||||||
Loans and leases held for investment, net | ||||||||
Real estate: | ||||||||
Commercial | $ | 1,246,805 | $ | 1,167,516 | ||||
Agricultural | 722,448 | 672,830 | ||||||
Residential and home equity | 377,249 | 350,581 | ||||||
Construction | 169,624 | 177,163 | ||||||
Total real estate | 2,516,126 | 2,368,090 | ||||||
Commercial & industrial | 454,185 | 427,799 | ||||||
Agricultural | 260,296 | 276,684 | ||||||
Commercial leases | 94,089 | 96,971 | ||||||
Consumer and other(1) | 7,776 | 78,367 | ||||||
Total gross loans and leases | 3,332,472 | 3,247,911 | ||||||
Unearned income | (8,610 | ) | (10,734 | ) | ||||
Total net loans and leases | 3,323,862 | 3,237,177 | ||||||
Allowance for credit losses | (63,617 | ) | (61,007 | ) | ||||
Total loans and leases held for investment, net | $ | 3,260,245 | $ | 3,176,170 |
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 |
September 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 | $ | 1,238,110 | $ | 170 | $ | - | $ | 411 | $ | 581 | $ | 1,238,691 | ||||||||||||
Agricultural | 722,448 | - | - | - | - | 722,448 | ||||||||||||||||||
Residential and home equity | 377,224 | 25 | - | - | 25 | 377,249 | ||||||||||||||||||
Construction | 169,624 | - | - | - | - | 169,624 | ||||||||||||||||||
Total real estate | 2,507,406 | 195 | - | 411 | 606 | 2,508,012 | ||||||||||||||||||
Commercial & industrial | 454,185 | - | - | - | - | 454,185 | ||||||||||||||||||
Agricultural | 260,296 | - | - | - | - | 260,296 | ||||||||||||||||||
Commercial leases | 93,593 | - | - | - | - | 93,593 | ||||||||||||||||||
Consumer and other | 7,766 | 10 | - | - | 10 | 7,776 | ||||||||||||||||||
Total loans and leases, net | $ | 3,323,246 | $ | 205 | $ | - | $ | 411 | $ | 616 | $ | 3,323,862 |
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 | $ | - | $ | - | $ | 459 | $ | 1,157,338 | ||||||||||||
Agricultural | 672,812 | - | - | 18 | 18 | 672,830 | ||||||||||||||||||
Residential and home equity | 350,492 | 89 | - | - | 89 | 350,581 | ||||||||||||||||||
Construction | 177,163 | - | - | - | - | 177,163 | ||||||||||||||||||
Total real estate | 2,357,346 | 548 | - | 18 | 566 | 2,357,912 | ||||||||||||||||||
Commercial & industrial | 427,799 | - | - | - | - | 427,799 | ||||||||||||||||||
Agricultural | 276,186 | - | - | 498 | 498 | 276,684 | ||||||||||||||||||
Commercial leases | 96,415 | - | - | - | - | 96,415 | ||||||||||||||||||
Consumer and other | 78,363 | 4 | - | - | 4 | 78,367 | ||||||||||||||||||
Total loans and leases, net | $ | 3,236,109 | $ | 552 | $ | - | $ | 516 | $ | 1,068 | $ | 3,237,177 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Non-accrual loans and leases: | ||||||||
Non-accrual loans and leases, not TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 411 | $ | - | ||||
Agricultural | - | 18 | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | 411 | 18 | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | 411 | 18 | ||||||
Non-accrual loans and leases, are TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | - | $ | - | ||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | 498 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | - | 498 | ||||||
Total non-accrual loans and leases | $ | 411 | $ | 516 |
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 |
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 |
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 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Troubled debt restructured loans and leases: | ||||||||
Accruing TDR loans and leases | ||||||||
Real estate: | ||||||||
Commercial | $ | - | $ | 41 | ||||
Agricultural | - | - | ||||||
Residential and home equity | 1,319 | 1,522 | ||||||
Construction | - | - | ||||||
Total real estate | 1,319 | 1,563 | ||||||
Commercial & industrial | 6 | 260 | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | 1 | ||||||
Subtotal | 1,325 | 1,824 | ||||||
Non-accruing TDR loans and leases | ||||||||
Real estate: | ||||||||
Commercial | $ | - | $ | - | ||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | 498 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | - | 498 | ||||||
Total TDR loans and leases | $ | 1,325 | $ | 2,322 |
September 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 | - | $ | - | - | $ | - | - | $ | - | |||||||||||||||
2021 | - | - | - | - | - | - | ||||||||||||||||||
2020 | 4 | 260 | - | - | 4 | 260 | ||||||||||||||||||
2019 | - | - | - | - | - | - | ||||||||||||||||||
Prior | 8 | 1,065 | - | - | 8 | 1,065 | ||||||||||||||||||
Total | 12 | $ | 1,325 | - | $ | - | 12 | $ | 1,325 |
September 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 | $ | 1,229,837 | $ | 7,320 | $ | 1,534 | $ | - | $ | 1,238,691 | $ | 16,540 | ||||||||||||
Agricultural | 705,404 | 10,891 | 6,153 | - | 722,448 | 16,560 | ||||||||||||||||||
Residential and home equity | 377,021 | - | 228 | - | 377,249 | 6,865 | ||||||||||||||||||
Construction | 169,624 | - | - | - | 169,624 | 2,995 | ||||||||||||||||||
Total real estate | 2,481,886 | 18,211 | 7,915 | - | 2,508,012 | 42,960 | ||||||||||||||||||
Commercial & industrial | 453,832 | 70 | 283 | - | 454,185 | 10,392 | ||||||||||||||||||
Agricultural | 253,554 | 6,726 | 16 | - | 260,296 | 8,523 | ||||||||||||||||||
Commercial leases | 93,493 | 100 | - | - | 93,593 | 1,588 | ||||||||||||||||||
Consumer and other | 7,583 | - | 193 | - | 7,776 | 154 | ||||||||||||||||||
Total loans and leases, net | $ | 3,290,348 | $ | 25,107 | $ | 8,407 | $ | - | $ | 3,323,862 | $ | 63,617 |
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 | $ | - | $ | 1,157,338 | $ | 28,536 | ||||||||||||
Agricultural | 663,157 | 3,292 | 6,381 | - | 672,830 | 9,613 | ||||||||||||||||||
Residential and home equity | 350,148 | - | 433 | - | 350,581 | 2,847 | ||||||||||||||||||
Construction | 177,163 | - | - | - | 177,163 | 1,456 | ||||||||||||||||||
Total real estate | 2,332,643 | 10,195 | 15,074 | - | 2,357,912 | 42,452 | ||||||||||||||||||
Commercial & industrial | 417,806 | 9,321 | 672 | - | 427,799 | 11,489 | ||||||||||||||||||
Agricultural | 275,206 | 958 | 520 | - | 276,684 | 5,465 | ||||||||||||||||||
Commercial leases | 96,415 | - | - | - | 96,415 | 938 | ||||||||||||||||||
Consumer and other | 78,181 | - | 186 | - | 78,367 | 663 | ||||||||||||||||||
Total loans and leases, net | $ | 3,200,251 | $ | 20,474 | $ | 16,452 | $ | - | $ | 3,237,177 | $ | 61,007 |
September 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 | $ | 140,036 | $ | 236,947 | $ | 153,480 | $ | 72,167 | $ | 86,063 | $ | 227,146 | $ | 313,998 | $ | 1,229,837 | ||||||||||||||||
Special mention | - | - | - | - | 3,844 | - | 3,476 | 7,320 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 1,534 | - | 1,534 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial | $ | 140,036 | $ | 236,947 | $ | 153,480 | $ | 72,167 | $ | 89,907 | $ | 228,680 | $ | 317,474 | $ | 1,238,691 | ||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 54,480 | $ | 43,117 | $ | 56,965 | $ | 15,297 | $ | 51,194 | $ | 151,470 | $ | 332,881 | $ | 705,404 | ||||||||||||||||
Special mention | - | - | - | 2,636 | - | - | 8,255 | 10,891 | ||||||||||||||||||||||||
Substandard | - | - | - | - | 119 | 6,034 | - | 6,153 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Agricultural | $ | 54,480 | $ | 43,117 | $ | 56,965 | $ | 17,933 | $ | 51,313 | $ | 157,504 | $ | 341,136 | $ | 722,448 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Pass | $ | 51,888 | $ | 97,973 | $ | 88,214 | $ | 14,851 | $ | 6,910 | $ | 78,458 | $ | 38,727 | $ | 377,021 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 144 | 84 | 228 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Residential and home equity | $ | 51,888 | $ | 97,973 | $ | 88,214 | $ | 14,851 | $ | 6,910 | $ | 78,602 | $ | 38,811 | $ | 377,249 | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Pass | $ | - | $ | - | $ | - | $ | 1,575 | $ | - | $ | 62 | $ | 167,987 | $ | 169,624 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total construction | $ | - | $ | - | $ | - | $ | 1,575 | $ | - | $ | 62 | $ | 167,987 | $ | 169,624 | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Total Real estate | $ | 246,404 | $ | 378,037 | $ | 298,659 | $ | 106,526 | $ | 148,130 | $ | 464,848 | $ | 865,408 | $ | 2,508,012 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Pass | $ | 24,852 | $ | 41,476 | $ | 13,975 | $ | 10,646 | $ | 8,774 | $ | 6,386 | $ | 347,723 | $ | 453,832 | ||||||||||||||||
Special mention | - | 69 | - | - | - | 1 | - | 70 | ||||||||||||||||||||||||
Substandard | - | - | - | - | 6 | 6 | 271 | 283 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial & industrial | $ | 24,852 | $ | 41,545 | $ | 13,975 | $ | 10,646 | $ | 8,780 | $ | 6,393 | $ | 347,994 | $ | 454,185 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | 246 | $ | 78 | $ | - | $ | - | $ | 324 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 4,387 | $ | 3,789 | $ | 1,082 | $ | 1,617 | $ | 731 | $ | 2,211 | $ | 239,737 | $ | 253,554 | ||||||||||||||||
Special mention | - | - | - | - | - | 7 | 6,719 | 6,726 | ||||||||||||||||||||||||
Substandard | - | - | - | 13 | 3 | - | - | 16 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Agricultural | $ | 4,387 | $ | 3,789 | $ | 1,082 | $ | 1,630 | $ | 734 | $ | 2,218 | $ | 246,456 | $ | 260,296 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Pass | $ | 11,541 | $ | 16,541 | $ | 13,664 | $ | 7,643 | $ | 21,387 | $ | 22,717 | $ | - | $ | 93,493 | ||||||||||||||||
Special mention | - | - | - | 100 | - | - | - | 100 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial leases | $ | 11,541 | $ | 16,541 | $ | 13,664 | $ | 7,743 | $ | 21,387 | $ | 22,717 | $ | - | $ | 93,593 | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Pass | $ | 965 | $ | 2,463 | $ | 359 | $ | 235 | $ | 386 | $ | 2,481 | $ | 694 | $ | 7,583 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | 193 | - | - | - | - | - | - | 193 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Consumer and other | $ | 1,158 | $ | 2,463 | $ | 359 | $ | 235 | $ | 386 | $ | 2,481 | $ | 694 | $ | 7,776 | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | 25 | $ | 5 | $ | 4 | $ | 1 | $ | 3 | $ | - | $ | - | $ | 38 | ||||||||||||||||
Total net loans and leases | $ | 288,342 | $ | 442,375 | $ | 327,739 | $ | 126,780 | $ | 179,417 | $ | 498,657 | $ | 1,460,552 | $ | 3,323,862 |
September 30, 2022 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles and Equipment | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 1,124 | $ | - | $ | 1,124 | ||||||
Agricultural | 11,944 | - | 11,944 | |||||||||
Residential and home equity | 2,002 | - | 2,002 | |||||||||
Construction | - | - | - | |||||||||
Total Real estate | 15,070 | - | 15,070 | |||||||||
Commercial & industrial | - | - | - | |||||||||
Agricultural | - | 16 | 16 | |||||||||
Commercial leases | - | - | - | |||||||||
Consumer and other | - | 161 | 161 | |||||||||
Total gross loans and leases | $ | 15,070 | $ | 177 | $ | 15,247 |
December 31, 2021 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles and Equipment | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 5 | $ | - | $ | 5 | ||||||
Agricultural | 5,587 | - | 5,587 | |||||||||
Residential and home equity | 330 | - | 330 | |||||||||
Construction | - | - | - | |||||||||
Total Real estate | 5,922 | - | 5,922 | |||||||||
Commercial & industrial | - | - | - | |||||||||
Agricultural | - | - | - | |||||||||
Commercial leases | - | - | - | |||||||||
Consumer and other | - | 173 | 173 | |||||||||
Total gross loans and leases | $ | 5,922 | $ | 173 | $ | 6,095 |
For the three Months Ended September 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 | $ | 34,716 | $ | 2,876 | $ | 6,874 | $ | 15,808 | $ | 1,645 | $ | 161 | $ | 62,080 | ||||||||||||||
Provision / (recapture) for credit losses | (1,616 | ) | 119 | (15 | ) | 3,063 | (57 | ) | 5 | 1,499 | ||||||||||||||||||
Charge-offs | - | - | - | (48 | ) | - | (20 | ) | (68 | ) | ||||||||||||||||||
Recoveries | - | - | 6 | 92 | - | 8 | 106 | |||||||||||||||||||||
Net (charge-offs) / recoveries | - | - | 6 | 44 | - | (12 | ) | 38 | ||||||||||||||||||||
Ending balance | $ | 33,100 | $ | 2,995 | $ | 6,865 | $ | 18,915 | $ | 1,588 | $ | 154 | $ | 63,617 |
For the Nine Months Ended September 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 | - | - | - | - | - | - | - | |||||||||||||||||||||
Provision / (recapture) for credit losses | (5,049 | ) | 1,539 | 3,893 | 2,058 | 650 | (485 | ) | 2,606 | |||||||||||||||||||
Charge-offs | - | - | - | (324 | ) | - | (38 | ) | (362 | ) | ||||||||||||||||||
Recoveries | - | - | 125 | 227 | - | 14 | 366 | |||||||||||||||||||||
Net (charge-offs) / recoveries | - | - | 125 | (97 | ) | - | (24 | ) | 4 | |||||||||||||||||||
Ending balance | $ | 33,100 | $ | 2,995 | $ | 6,865 | $ | 18,915 | $ | 1,588 | $ | 154 | $ | 63,617 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Certificates of deposit: | ||||||||
Certificates of deposit less than or equal to $250,000 | $ | 208,242 | $ | 223,620 | ||||
Certificates of deposit greater than $250,000 | 152,142 | 168,865 | ||||||
Total certificates of deposit | $ | 360,384 | $ | 392,485 |
(Dollars in thousands) | Amount | |||
2022 | $ | 107,966 | ||
2023 | 224,552 | |||
2024 | 22,362 | |||
2025 | 2,783 | |||
2026 and beyond | 2,721 | |||
Total certificates of deposit | $ | 360,384 |
September 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 | $ | 482,053 | 11.82 | % | $ | 183,537 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 492,053 | 12.06 | % | 244,716 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 543,218 | 13.32 | % | 326,288 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 492,053 | 9.12 | % | 215,702 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 491,237 | 12.04 | % | $ | 183,531 | 4.50 | % | $ | 265,101 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 491,237 | 12.04 | % | 244,708 | 6.00 | % | 326,278 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 542,400 | 13.30 | % | 326,278 | 8.00 | % | 407,847 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 491,237 | 9.12 | % | 215,498 | 4.00 | % | 269,372 | 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 | % |
Three Months Ended September 30, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | ||||||
Numerator | ||||||||
Net income | $ | 19,536 | $ | 17,502 | ||||
Denominator | ||||||||
Weighted average number of common shares outstanding | 775,109 | 789,646 | ||||||
Weighted average number of dilutive shares outstanding | 775,109 | 789,646 | ||||||
Basic earnings per common share | $ | 25.20 | $ | 22.16 | ||||
Diluted earnings per common share | $ | 25.20 | $ | 22.16 |
Nine Months Ended September 30, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | ||||||
Numerator | ||||||||
Net income | $ | 55,037 | $ | 50,368 | ||||
Denominator | ||||||||
Weighted average number of common shares outstanding | 780,988 | 789,646 | ||||||
Weighted average number of dilutive shares outstanding | 780,988 | 789,646 | ||||||
Basic earnings per common share | $ | 70.47 | $ | 63.79 | ||||
Diluted earnings per common share | $ | 70.47 | $ | 63.79 |
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 |
September 30, 2022 | Fair Value | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 882,883 | $ | 882,883 | $ | - | $ | - | $ | 882,883 | ||||||||||
Investment securities available-for-sale | 177,454 | 4,941 | 172,513 | - | 177,454 | |||||||||||||||
Investment securities held-to-maturity | 852,272 | - | 663,285 | 42,416 | 705,701 | |||||||||||||||
Non-marketable securities | 15,549 | - | - | 15,549 | 15,549 | |||||||||||||||
Loans and leases, net | 3,260,245 | - | - | 3,203,611 | 3,203,611 | |||||||||||||||
Bank-owned life insurance | 72,566 | 72,566 | - | - | 72,566 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Total deposits | $ | 4,909,257 | $ | - | $ | 4,548,873 | $ | 352,319 | $ | 4,901,192 | ||||||||||
Subordinated debentures | 10,310 | - | 9,707 | - | 9,707 |
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 |
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 | $ | - | $ | - | $ | 715,460 | ||||||||||
Investment securities available-for-sale | 270,454 | 10,214 | 260,240 | - | 270,454 | |||||||||||||||
Investment securities held-to-maturity | 737,052 | - | 681,588 | 44,446 | 726,034 | |||||||||||||||
Non-marketable securities | 15,549 | - | - | 15,549 | 15,549 | |||||||||||||||
Loans and leases, net | 3,176,170 | - | - | 3,179,857 | 3,179,857 | |||||||||||||||
Bank-owned life insurance | 71,411 | 71,411 | - | - | 71,411 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Total deposits | $ | 4,640,152 | $ | - | $ | 4,247,666 | $ | 391,732 | $ | 4,639,398 | ||||||||||
Subordinated debentures | 10,310 | - | 6,890 | - | 6,890 |
Fair Value Measurements At 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 |
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 |
September 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 | $ | 4,941 | $ | 4,941 | $ | - | $ | - | $ | 4,941 | ||||||||||
U.S. Government-sponsored securities | 4,698 | - | 4,698 | - | 4,698 | |||||||||||||||
Mortgage-backed securities | 156,453 | - | 156,453 | - | 156,453 | |||||||||||||||
Collateralized mortgage obligations | 1,458 | - | 1,458 | - | 1,458 | |||||||||||||||
Corporate securities | 9,594 | - | 9,594 | - | 9,594 | |||||||||||||||
Other | 310 | - | 310 | - | 310 | |||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||
Other real estate | $ | 873 | $ | - | $ | - | $ | 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 | $ | - | $ | - | $ | 10,089 | ||||||||||
U.S. Government-sponsored securities | 6,374 | - | 6,374 | - | 6,374 | |||||||||||||||
Mortgage-backed securities | 251,120 | - | 251,120 | - | 251,120 | |||||||||||||||
Collateralized mortgage obligations | 2,436 | - | 2,436 | - | 2,436 | |||||||||||||||
Other | 435 | 125 | 310 | - | 435 | |||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||
Individually evaluated loans | $ | 2,562 | $ | - | $ | - | $ | 2,562 | $ | 2,562 | ||||||||||
Other real estate | 873 | - | - | 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) | September 30, 2022 | December 31, 2021 | ||||||
Commitments to extend credit, including unsecured commitments of $20,552 and $21,036 as of September 30, 2022 and December 31, 2021, respectively | $ | 1,128,340 | $ | 937,009 | ||||
Stand-by letters of credit, including unsecured commitments of $7,352 and $9,091 as of September 30, 2022 and December 31, 2021, respectively | 16,629 | 17,880 | ||||||
Performance guarantees under interest rate swap contracts entered into with our clients and third-parties | - | 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 September 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 | $ | 718,794 | $ | 4,159 | 2.30 | % | $ | 856,159 | $ | 328 | 0.15 | % | ||||||||||||
Securities:(1) | ||||||||||||||||||||||||
Taxable securities | 1,063,166 | 5,091 | 1.92 | % | 786,983 | 3,282 | 1.67 | % | ||||||||||||||||
Non-taxable securities(2) | 47,005 | 386 | 3.28 | % | 49,616 | 399 | 3.22 | % | ||||||||||||||||
Total investment securities | 1,110,171 | 5,477 | 1.96 | % | 836,599 | 3,681 | 1.76 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,224,689 | 15,179 | 4.92 | % | 1,046,626 | 11,255 | 4.27 | % | ||||||||||||||||
Agricultural | 715,286 | 9,243 | 5.13 | % | 640,330 | 8,301 | 5.14 | % | ||||||||||||||||
Residential and home equity | 375,699 | 3,836 | 4.05 | % | 338,520 | 3,858 | 4.52 | % | ||||||||||||||||
Construction | 164,664 | 2,468 | 5.95 | % | 175,906 | 2,300 | 5.19 | % | ||||||||||||||||
Total real estate | 2,480,338 | 30,726 | 4.91 | % | 2,201,382 | 25,714 | 4.63 | % | ||||||||||||||||
Commercial & industrial | 438,761 | 5,770 | 5.22 | % | 374,162 | 4,111 | 4.36 | % | ||||||||||||||||
Agricultural | 259,345 | 3,607 | 5.52 | % | 236,071 | 2,637 | 4.43 | % | ||||||||||||||||
Commercial leases | 93,051 | 1,365 | 5.82 | % | 96,690 | 1,363 | 5.59 | % | ||||||||||||||||
Consumer and other | 8,929 | 400 | 17.77 | % | 155,182 | 2,263 | 5.79 | % | ||||||||||||||||
Total loans and leases | 3,280,424 | 41,868 | 5.06 | % | 3,063,487 | 36,088 | 4.67 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 209 | 5.33 | % | 15,549 | 244 | 6.23 | % | ||||||||||||||||
Total interest earning assets | 5,124,938 | 51,713 | 4.00 | % | 4,771,794 | 40,341 | 3.35 | % | ||||||||||||||||
Allowance for credit losses | (63,107 | ) | (60,268 | ) | ||||||||||||||||||||
Non-interest earning assets | 318,078 | 324,057 | ||||||||||||||||||||||
Total average assets | $ | 5,379,909 | $ | 5,035,583 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,101,830 | 445 | 0.16 | % | $ | 1,068,707 | 293 | 0.11 | % | ||||||||||||||
Savings and money market accounts | 1,588,234 | 476 | 0.12 | % | 1,385,430 | 346 | 0.10 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 156,110 | 96 | 0.24 | % | 168,714 | 143 | 0.34 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 212,036 | 105 | 0.20 | % | 230,532 | 147 | 0.25 | % | ||||||||||||||||
Total interest bearing deposits | 3,058,210 | 1,122 | 0.15 | % | 2,853,383 | 929 | 0.13 | % | ||||||||||||||||
Short-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 134 | 5.16 | % | 10,310 | 78 | 3.00 | % | ||||||||||||||||
Total interest bearing liabilities | 3,068,520 | 1,256 | 0.16 | % | 2,863,693 | 1,007 | 0.14 | % | ||||||||||||||||
Non-interest bearing deposits | 1,764,266 | 1,655,738 | ||||||||||||||||||||||
Total funding | 4,832,786 | 1,256 | 0.10 | % | 4,519,431 | 1,007 | 0.09 | % | ||||||||||||||||
Other non-interest bearing liabilities | 77,389 | 68,564 | ||||||||||||||||||||||
Shareholders' equity | 469,734 | 447,588 | ||||||||||||||||||||||
Total average liabilities and shareholders' equity | $ | 5,379,909 | $ | 5,035,583 | ||||||||||||||||||||
Net interest income | $ | 50,457 | $ | 39,334 | ||||||||||||||||||||
Interest rate spread | 3.84 | % | 3.21 | % | ||||||||||||||||||||
Net interest margin(4) | 3.95 | % | 3.26 | % |
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 | % |
For the Nine Months Ended September 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 | $ | 720,692 | $ | 5,934 | 1.10 | % | $ | 620,757 | $ | 595 | 0.13 | % | ||||||||||||
Securities:(1) | ||||||||||||||||||||||||
Taxable securities | 1,058,859 | 14,786 | 1.86 | % | 819,747 | 10,780 | 1.75 | % | ||||||||||||||||
Non-taxable securities(2) | 48,436 | 1,179 | 3.25 | % | 52,816 | 1,238 | 3.13 | % | ||||||||||||||||
Total investment securities | 1,107,295 | 15,965 | 1.92 | % | 872,563 | 12,018 | 1.84 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,178,731 | 41,986 | 4.76 | % | 1,005,970 | 36,602 | 4.86 | % | ||||||||||||||||
Agricultural | 699,205 | 25,545 | 4.88 | % | 633,874 | 22,884 | 4.83 | % | ||||||||||||||||
Residential and home equity | 365,062 | 10,728 | 3.93 | % | 337,307 | 10,191 | 4.04 | % | ||||||||||||||||
Construction | 187,181 | 7,075 | 5.05 | % | 186,337 | 6,447 | 4.63 | % | ||||||||||||||||
Total real estate | 2,430,179 | 85,334 | 4.69 | % | 2,163,488 | 76,124 | 4.70 | % | ||||||||||||||||
Commercial & industrial | 434,217 | 15,460 | 4.76 | % | 365,744 | 12,567 | 4.59 | % | ||||||||||||||||
Agricultural | 257,555 | 9,350 | 4.85 | % | 229,862 | 7,758 | 4.51 | % | ||||||||||||||||
Commercial leases | 92,914 | 4,158 | 5.98 | % | 100,347 | 4,135 | 5.51 | % | ||||||||||||||||
Consumer and other | 27,330 | 3,569 | 17.46 | % | 203,683 | 9,255 | 6.08 | % | ||||||||||||||||
Total loans and leases | 3,242,195 | 117,871 | 4.86 | % | 3,063,124 | 109,839 | 4.79 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 732 | 6.29 | % | 14,451 | 646 | 5.98 | % | ||||||||||||||||
Total interest earning assets | 5,085,731 | 140,502 | 3.69 | % | 4,570,895 | 123,098 | 3.60 | % | ||||||||||||||||
Allowance for credit losses | (61,864 | ) | (59,971 | ) | ||||||||||||||||||||
Non-interest earning assets | 314,520 | 315,582 | ||||||||||||||||||||||
Total average assets | $ | 5,338,387 | $ | 4,826,506 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,111,513 | 1,023 | 0.12 | % | $ | 1,002,267 | 869 | 0.12 | % | ||||||||||||||
Savings and money market accounts | 1,550,334 | 1,179 | 0.10 | % | 1,336,826 | 1,136 | 0.11 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 163,148 | 299 | 0.25 | % | 169,545 | 587 | 0.46 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 218,302 | 297 | 0.18 | % | 239,185 | 608 | 0.34 | % | ||||||||||||||||
Total interest bearing deposits | 3,043,297 | 2,798 | 0.12 | % | 2,747,823 | 3,200 | 0.16 | % | ||||||||||||||||
Short-term borrowings | 1 | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 319 | 4.14 | % | 10,310 | 236 | 3.06 | % | ||||||||||||||||
Total interest bearing liabilities | 3,053,608 | 3,117 | 0.14 | % | 2,758,133 | 3,436 | 0.17 | % | ||||||||||||||||
Non-interest bearing deposits | 1,740,859 | 1,567,089 | ||||||||||||||||||||||
Total funding | 4,794,467 | 3,117 | 0.09 | % | 4,325,222 | 3,436 | 0.11 | % | ||||||||||||||||
Other non-interest bearing liabilities | 77,953 | 64,439 | ||||||||||||||||||||||
Shareholders' equity | 465,967 | 436,845 | ||||||||||||||||||||||
Total average liabilities and shareholders' equity | $ | 5,338,387 | $ | 4,826,506 | ||||||||||||||||||||
Net interest income | $ | 137,385 | $ | 119,662 | ||||||||||||||||||||
Interest rate spread | 3.56 | % | 3.43 | % | ||||||||||||||||||||
Net interest margin(4) | 3.61 | % | 3.50 | % |
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 September 30, 2022 compared with 2021 | Nine Months Ended September 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 | $ | (370 | ) | $ | 4,201 | $ | 3,831 | $ | 111 | $ | 5,228 | $ | 5,339 | |||||||||||
Securities: | ||||||||||||||||||||||||
Taxable securities | 1,272 | 537 | 1,809 | 3,305 | 701 | 4,006 | ||||||||||||||||||
Non-taxable securities | (57 | ) | 44 | (13 | ) | (127 | ) | 68 | (59 | ) | ||||||||||||||
Total securities | 1,214 | 582 | 1,796 | 3,178 | 769 | 3,947 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 2,069 | 1,855 | 3,924 | 6,630 | (1,246 | ) | 5,384 | |||||||||||||||||
Agricultural | 1,122 | (180 | ) | 942 | 2,384 | 277 | 2,661 | |||||||||||||||||
Residential and home equity | 1,625 | (1,647 | ) | (22 | ) | 962 | (425 | ) | 537 | |||||||||||||||
Construction | (761 | ) | 929 | 168 | 29 | 599 | 628 | |||||||||||||||||
Total real estate | 4,055 | 957 | 5,012 | 10,006 | (796 | ) | 9,210 | |||||||||||||||||
Commercial & industrial | 775 | 884 | 1,659 | 2,424 | 469 | 2,893 | ||||||||||||||||||
Agricultural | 278 | 692 | 970 | 978 | 614 | 1,592 | ||||||||||||||||||
Commercial leases | (210 | ) | 212 | 2 | (429 | ) | 452 | 23 | ||||||||||||||||
Consumer and other | (12,215 | ) | 10,352 | (1,863 | ) | (16,453 | ) | 10,767 | (5,686 | ) | ||||||||||||||
Total loans | (7,316 | ) | 13,096 | 5,780 | (3,474 | ) | 11,506 | 8,032 | ||||||||||||||||
Non-marketable securities | 0 | (35 | ) | (35 | ) | 51 | 35 | 86 | ||||||||||||||||
Total interest income | (6,472 | ) | 17,844 | 11,372 | (135 | ) | 17,539 | 17,404 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | 9 | 143 | 152 | 98 | 56 | 154 | ||||||||||||||||||
Savings and money market accounts | 55 | 75 | 130 | 218 | (175 | ) | 43 | |||||||||||||||||
Certificates of deposit greater than $250,000 | (10 | ) | (37 | ) | (47 | ) | (21 | ) | (267 | ) | (288 | ) | ||||||||||||
Certificates of deposit less than $250,000 | (11 | ) | (31 | ) | (42 | ) | (49 | ) | (262 | ) | (311 | ) | ||||||||||||
Total interest bearing deposits | 43 | 150 | 193 | 246 | (648 | ) | (402 | ) | ||||||||||||||||
Short-term borrowings | - | - | - | - | - | - | ||||||||||||||||||
Subordinated debentures | - | 56 | 56 | - | 83 | 83 | ||||||||||||||||||
Total interest expense | 43 | 206 | 249 | 246 | (565 | ) | (319 | ) | ||||||||||||||||
Net interest income | $ | (6,515 | ) | $ | 17,638 | $ | 11,123 | $ | (381 | ) | $ | 18,104 | $ | 17,723 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Better / (Worse) | % Better / (Worse) | 2022 | 2021 | $ Better / (Worse) | % Better / (Worse) | ||||||||||||||||||||||||
Selected Income Statement Information: | ||||||||||||||||||||||||||||||||
Interest income | $ | 51,713 | $ | 40,341 | $ | 11,372 | 28.19 | % | $ | 140,502 | $ | 123,098 | $ | 17,404 | 14.14 | % | ||||||||||||||||
Interest expense | 1,256 | 1,007 | (249 | ) | (24.73 | %) | 3,117 | 3,436 | 319 | 9.28 | % | |||||||||||||||||||||
Net interest income | 50,457 | 39,334 | 11,123 | 28.28 | % | 137,385 | 119,662 | 17,723 | 14.81 | % | ||||||||||||||||||||||
Provision for credit losses | 1,500 | - | (1,500 | ) | N/A | 3,000 | 1,250 | (1,750 | ) | (140.00 | %) | |||||||||||||||||||||
Net interest income after provision for credit losses | 48,957 | 39,334 | 9,623 | 24.46 | % | 134,385 | 118,412 | 15,973 | 13.49 | % | ||||||||||||||||||||||
Non-interest income | 1,559 | 4,617 | (3,058 | ) | (66.23 | %) | 9,383 | 16,292 | (6,909 | ) | (42.41 | %) | ||||||||||||||||||||
Non-interest expense | 24,375 | 20,585 | (3,790 | ) | (18.41 | %) | 71,194 | 67,732 | (3,462 | ) | (5.11 | %) | ||||||||||||||||||||
Income before income tax expense | 26,141 | 23,366 | 2,775 | 11.88 | % | 72,574 | 66,972 | 5,602 | 8.36 | % | ||||||||||||||||||||||
Income tax expense | 6,605 | 5,864 | (741 | ) | (12.64 | %) | 17,537 | 16,604 | (933 | ) | (5.62 | %) | ||||||||||||||||||||
Net income | $ | 19,536 | $ | 17,502 | $ | 2,034 | 11.62 | % | $ | 55,037 | $ | 50,368 | $ | 4,669 | 9.27 | % |
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) | September 30, 2022 | December 31, 2021 | ||||||
Available-for-Sale Securities | ||||||||
U.S. Treasury notes | $ | 4,941 | $ | 10,089 | ||||
U.S. Government-sponsored securities | 4,698 | 6,374 | ||||||
Mortgage-backed securities(1) | 156,453 | 251,120 | ||||||
Collateralized mortgage obligations(1) | 1,458 | 2,436 | ||||||
Corporate securities | 9,594 | - | ||||||
Other | 310 | 435 | ||||||
Total available-for-sale securities | $ | 177,454 | $ | 270,454 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Held-to-Maturity Securities | ||||||||
Mortgage-backed securities(1) | $ | 709,541 | $ | 596,775 | ||||
Collateralized mortgage obligations(1) | 82,297 | 73,781 | ||||||
Municipal securities(2) | 60,434 | 66,496 | ||||||
Total held-to-maturity securities | $ | 852,272 | $ | 737,052 |
As of September 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 | $ | 4,941 | 2.38 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 4,941 | 2.38 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 7 | 1.74 | % | 81 | 3.97 | % | 436 | 3.01 | % | 4,174 | 2.79 | % | 4,698 | 2.83 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 16 | 3.13 | % | 15,725 | 2.27 | % | 17,961 | 2.40 | % | 122,751 | 1.74 | % | 156,453 | 1.87 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 1,458 | 2.35 | % | 1,458 | 2.35 | % | |||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | 4,795 | 1.59 | % | 4,799 | 1.72 | % | - | 0.00 | % | 9,594 | 1.65 | % | |||||||||||||||||||||||||
Other | 310 | 2.99 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 310 | 2.99 | % | |||||||||||||||||||||||||
Total securities available-for-sale | $ | 5,274 | 2.42 | % | $ | 20,601 | 2.12 | % | $ | 23,196 | 2.27 | % | $ | 128,383 | 1.78 | % | $ | 177,454 | 1.90 | % |
As of September 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 | % | $ | 13,906 | 0.89 | % | $ | 695,635 | 1.88 | % | $ | 709,541 | 1.86 | % | ||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 82,297 | 1.80 | % | 82,297 | 1.80 | % | |||||||||||||||||||||||||
Municipal securities | 883 | 4.93 | % | 7,484 | 3.40 | % | 15,000 | 3.43 | % | 37,460 | 3.52 | % | 60,827 | 3.50 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 883 | 4.93 | % | $ | 7,484 | 3.40 | % | $ | 28,906 | 2.06 | % | $ | 815,392 | 1.95 | % | $ | 852,665 | 1.97 | % |
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 5,028 | 2.33 | % | $ | 5,061 | 2.38 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 10,089 | 2.36 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 2 | 1.80 | % | 148 | 2.29 | % | 512 | 1.55 | % | 5,712 | 1.26 | % | 6,374 | 1.30 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 13 | 1.50 | % | 21,155 | 2.36 | % | 50,554 | 2.36 | % | 179,398 | 1.61 | % | 251,120 | 1.83 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 2,436 | 2.30 | % | 2,436 | 2.30 | % | |||||||||||||||||||||||||
Other | 435 | 3.31 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 435 | 3.31 | % | |||||||||||||||||||||||||
Total securities available-for-sale | $ | 5,478 | 2.41 | % | $ | 26,364 | 2.36 | % | $ | 51,066 | 2.35 | % | $ | 187,546 | 1.61 | % | $ | 270,454 | 1.84 | % |
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 10,641 | 0.41 | % | $ | 586,134 | 1.72 | % | $ | 596,775 | 1.70 | % | ||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 73,781 | 1.71 | % | 73,781 | 1.71 | % | |||||||||||||||||||||||||
Municipal securities | 308 | 1.10 | % | 8,487 | 2.19 | % | 18,433 | 3.42 | % | 39,268 | 4.52 | % | 66,496 | 3.90 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 308 | 1.10 | % | $ | 8,487 | 2.19 | % | $ | 29,074 | 2.32 | % | $ | 699,183 | 1.88 | % | $ | 737,052 | 1.90 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Gross Loans and Leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 1,246,805 | 37.41 | % | $ | 1,167,516 | 35.95 | % | ||||||||
Agricultural | 722,448 | 21.68 | % | 672,830 | 20.72 | % | ||||||||||
Residential and home equity | 377,249 | 11.32 | % | 350,581 | 10.79 | % | ||||||||||
Construction | 169,624 | 5.09 | % | 177,163 | 5.45 | % | ||||||||||
Total real estate | 2,516,126 | 75.50 | % | 2,368,090 | 72.91 | % | ||||||||||
Commercial & industrial | 454,185 | 13.63 | % | 427,799 | 13.17 | % | ||||||||||
Agricultural | 260,296 | 7.81 | % | 276,684 | 8.52 | % | ||||||||||
Commercial leases | 94,089 | 2.83 | % | 96,971 | 2.99 | % | ||||||||||
Consumer and other(1) | 7,776 | 0.23 | % | 78,367 | 2.41 | % | ||||||||||
Total gross loans and leases | $ | 3,332,472 | 100.00 | % | $ | 3,247,911 | 100.00 | % |
(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 |
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 | $ | 54,825 | $ | 300,999 | $ | 853,261 | $ | 37,720 | $ | 1,246,805 | ||||||||||
Agricultural | 26,331 | 155,660 | 466,352 | 74,105 | 722,448 | |||||||||||||||
Residential and home equity | 407 | 4,616 | 117,436 | 254,790 | 377,249 | |||||||||||||||
Construction | 105,343 | 64,281 | - | - | 169,624 | |||||||||||||||
Total real estate | 186,906 | 525,556 | 1,437,049 | 366,615 | 2,516,126 | |||||||||||||||
Commercial & industrial | 180,294 | 206,003 | 61,714 | 6,174 | 454,185 | |||||||||||||||
Agricultural | 164,616 | 79,574 | 16,106 | - | 260,296 | |||||||||||||||
Commercial leases | 7,299 | 32,471 | 54,319 | - | 94,089 | |||||||||||||||
Consumer and other(1) | 707 | 5,639 | 1,430 | - | 7,776 | |||||||||||||||
Total gross loans and leases | $ | 539,822 | $ | 849,243 | $ | 1,570,618 | $ | 372,789 | $ | 3,332,472 | ||||||||||
Rate Structure for Loans | ||||||||||||||||||||
Fixed Rate | $ | 87,323 | $ | 354,357 | $ | 1,188,033 | $ | 241,872 | $ | 1,871,585 | ||||||||||
Adjustable Rate | 452,499 | 494,886 | 382,585 | 130,917 | 1,460,887 | |||||||||||||||
Total gross loans and leases | $ | 539,822 | $ | 849,243 | $ | 1,570,618 | $ | 372,789 | $ | 3,332,472 |
(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) | September 30, 2022 | December 31, 2021 | ||||||
Non-performing assets: | ||||||||
Non-accrual loans and leases, not TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 411 | $ | - | ||||
Agricultural | - | 18 | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | 411 | 18 | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | 411 | 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 | $ | 411 | $ | 516 | ||||
Other real estate owned ("OREO") | $ | 873 | $ | 873 | ||||
Total non-performing assets | $ | 1,284 | $ | 1,389 | ||||
Performing TDRs | $ | 1,325 | $ | 1,824 |
Nine Months Ended September 30, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Allowance for credit losses: | ||||||||
Balance at beginning of year | $ | 61,007 | $ | 58,862 | ||||
Provision / (recapture) for credit losses | 2,606 | 1,250 | ||||||
Charge-offs: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & industrial | (324 | ) | - | |||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | (38 | ) | (33 | ) | ||||
Total charge-offs | (362 | ) | (33 | ) | ||||
Recoveries: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | 125 | 91 | ||||||
Construction | - | - | ||||||
Total real estate | 125 | 91 | ||||||
Commercial & industrial | 176 | 83 | ||||||
Agricultural | 51 | 29 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | 14 | 21 | ||||||
Total recoveries | 366 | 224 | ||||||
Net recoveries / charge-offs | 4 | 191 | ||||||
Balance at end of period | $ | 63,617 | $ | 60,303 | ||||
Selected financial information: | ||||||||
Gross loans held for investment | $ | 3,332,472 | $ | 3,151,508 | ||||
Average loans | 3,242,195 | 3,063,124 | ||||||
Non-performing loans | 411 | 516 | ||||||
Allowance for credit losses to non-performing loans | 15478.59 | % | 11686.63 | % | ||||
Net (recoveries)/charge-offs to average loans | 0.00 | % | (0.01 | )% | ||||
Provision for credit losses to average loans | 0.08 | % | 0.04 | % | ||||
Allowance for credit losses to loans held for investment | 1.91 | % | 1.91 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 16,540 | 37.41 | % | $ | 28,536 | 35.95 | % | ||||||||
Agricultural | 16,560 | 21.68 | % | 9,613 | 20.72 | % | ||||||||||
Residential and home equity | 6,865 | 11.32 | % | 2,847 | 10.79 | % | ||||||||||
Construction | 2,995 | 5.09 | % | 1,456 | 5.45 | % | ||||||||||
Total real estate | 42,960 | 75.50 | % | 42,452 | 72.91 | % | ||||||||||
Commercial & Industrial | 10,392 | 13.63 | % | 11,489 | 13.17 | % | ||||||||||
Agricultural | 8,523 | 7.81 | % | 5,465 | 8.52 | % | ||||||||||
Commercial leases | 1,588 | 2.83 | % | 938 | 2.99 | % | ||||||||||
Consumer and other | 154 | 0.23 | % | 663 | 2.41 | % | ||||||||||
Total allowance for credit losses | $ | 63,617 | 100.00 | % | $ | 61,007 | 100.00 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | ||||||||||||||||||
Total deposits: | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,111,513 | 1,023 | 0.12 | % | $ | 1,002,267 | $ | 869 | 0.12 | % | |||||||||||||
Savings and money market | 1,550,334 | 1,179 | 0.10 | % | 1,336,826 | 1,136 | 0.11 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 163,148 | 299 | 0.25 | % | 169,545 | 587 | 0.46 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 218,302 | 297 | 0.18 | % | 239,185 | 608 | 0.34 | % | ||||||||||||||||
Total interest-bearing deposits | 3,043,297 | 2,798 | 0.12 | % | 2,747,823 | 3,200 | 0.16 | % | ||||||||||||||||
Non-interest bearing deposits | 1,740,859 | 1,567,089 | ||||||||||||||||||||||
Total deposits | $ | 4,784,156 | $ | 2,798 | 0.08 | % | $ | 4,314,912 | $ | 3,200 | 0.10 | % |
September 30, | December 31, | |||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Deposits greater than $250,000 | $ | 2,990,165 | $ | 2,708,576 | ||||
Certificates of deposit greater than $250,000, by maturity: | ||||||||
Less than 3 months | 58,384 | 59,591 | ||||||
3 months to 6 months | 38,722 | 37,182 | ||||||
6 months to 12 months | 43,161 | 59,945 | ||||||
More than 12 months | 11,875 | 12,147 | ||||||
Total certificates of deposit greater than $250,000 | $ | 152,142 | $ | 168,865 | ||||
Total deposits greater than $250,000 | $ | 3,142,307 | $ | 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" | September 30, 2022 | December 31, 2021 | ||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||
CET1 capital to risk-weighted assets | N/A | 4.50 | % | 11.82 | % | 11.68 | % | |||||||||
Tier 1 capital to risk-weighted assets | N/A | 6.00 | % | 12.06 | % | 11.94 | % | |||||||||
Risk-based capital to risk-weighted assets | N/A | 8.00 | % | 13.32 | % | 13.19 | % | |||||||||
Tier 1 leverage capital ratio | N/A | 4.00 | % | 9.12 | % | 8.92 | % | |||||||||
Farmers & Merchants Bank | ||||||||||||||||
CET1 capital to risk-weighted assets | 6.50 | % | 4.50 | % | 12.04 | % | 11.91 | % | ||||||||
Tier 1 capital to risk-weighted assets | 8.00 | % | 6.00 | % | 12.04 | % | 11.91 | % | ||||||||
Risk-based capital to risk-weighted assets | 10.00 | % | 8.00 | % | 13.30 | % | 13.17 | % | ||||||||
Tier 1 leverage capital ratio | 5.00 | % | 4.00 | % | 9.12 | % | 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 | $ | 1,128,340 | $ | 401,604 | $ | 477,113 | $ | 46,626 | $ | 202,997 | ||||||||||
Standby letters of credit | 16,629 | 10,403 | 4,326 | 1,470 | 430 | |||||||||||||||
Total off-balance sheet commitments | $ | 1,144,969 | $ | 412,007 | $ | 481,439 | $ | 48,096 | $ | 203,427 |
September 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 | $ | 766,011 | $ | 766,011 | $ | - | $ | 766,011 | $ | 1,183,540 | ||||||||||
Federal Reserve BIC | 657,350 | 657,350 | - | 657,350 | 890,564 | |||||||||||||||
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 | $ | 1,541,361 | $ | 1,541,361 | $ | - | $ | 1,541,361 | $ | 2,074,104 |
Item 4. | Controls and Procedures |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Description | |
Employment Agreement effective August 1, 2022, between Farmers & Merchants Bank of Central California and Kyle Koelbel, filed on Registrant’s Form 10-Q for the quarter ended September 30, 2022. | ||
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) |
* | Filed herewith |
FARMERS & MERCHANTS BANCORP | ||
Date: November | /s/ Kent A. Steinwert | |
Kent A. Steinwert | ||
Director, Chairman, President | ||
(Principal Executive Officer) |
Date: November | /s/ Stephen W. Haley | |
Stephen W. Haley | ||
Executive Vice President and | ||
Chief Financial Officer | ||
(Principal Financial |