Delaware | 94-3327828 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
111 W. Pine Street, Lodi, California | 95240 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
None | Not Applicable | Not Applicable |
Large accelerated filer ☐ | Accelerated filer ☒ |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ |
PART I. - FINANCIAL INFORMATION | Page | ||
Item 1 - Financial Statements | |||
4 | |||
5 | |||
6 | |||
7 | |||
8 | |||
9 | |||
44 | |||
PART II. - OTHER INFORMATION | |||
Item 1. | Financial Statements |
(Dollars in thousands, except share and per share amounts) | March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 68,774 | $ | 52,499 | $ | 82,932 | $ | 52,499 | ||||||||
Interest bearing deposits with banks | 772,312 | 662,961 | 799,951 | 662,961 | ||||||||||||
Total cash and cash equivalents | 841,086 | 715,460 | 882,883 | 715,460 | ||||||||||||
Securities available for sale, at fair value | 251,375 | 270,454 | ||||||||||||||
Securities held to maturity, at amortized cost | 876,257 | 737,052 | ||||||||||||||
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 | 1,127,632 | 1,007,506 | 1,029,726 | 1,007,506 | ||||||||||||
Non-marketable securities | 15,549 | 15,549 | 15,549 | 15,549 | ||||||||||||
Loans and leases held for investment | 3,237,619 | 3,237,177 | 3,323,862 | 3,237,177 | ||||||||||||
Allowance for credit losses | (61,032 | ) | (61,007 | ) | (63,617 | ) | (61,007 | ) | ||||||||
Loans held for investment, net | 3,176,587 | 3,176,170 | 3,260,245 | 3,176,170 | ||||||||||||
Bank-owned life insurance | 71,953 | 71,411 | 72,566 | 71,411 | ||||||||||||
Premises and equipment, net | 47,423 | 47,730 | 49,183 | 47,730 | ||||||||||||
Deferred income tax assets | 30,361 | 25,542 | 34,411 | 25,542 | ||||||||||||
Accrued interest receivable | 14,473 | 18,098 | 20,069 | 18,098 | ||||||||||||
Goodwill | 11,183 | 11,183 | 11,183 | 11,183 | ||||||||||||
Other intangibles | 3,254 | 3,402 | 2,957 | 3,402 | ||||||||||||
Other real estate owned | 873 | 873 | 873 | 873 | ||||||||||||
Other assets | 83,802 | 84,796 | 87,136 | 84,796 | ||||||||||||
TOTAL ASSETS | $ | 5,424,176 | $ | 5,177,720 | $ | 5,466,781 | $ | 5,177,720 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest bearing | $ | 1,764,857 | $ | 1,750,330 | ||||||||||||
Non-interest bearing | $ | 1,802,623 | $ | 1,750,330 | ||||||||||||
Interest bearing: | ||||||||||||||||
Demand | 1,124,470 | 1,097,337 | 1,158,588 | 1,097,337 | ||||||||||||
Savings and money market | 1,557,332 | 1,400,000 | 1,587,662 | 1,400,000 | ||||||||||||
Certificate of deposits | 390,780 | 392,485 | ||||||||||||||
Certificates of deposit | 360,384 | 392,485 | ||||||||||||||
Total interest bearing | 3,072,582 | 2,889,822 | 3,106,634 | 2,889,822 | ||||||||||||
Total deposits | 4,837,439 | 4,640,152 | 4,909,257 | 4,640,152 | ||||||||||||
Subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | ||||||||||||
Interest payable and other liabilities | 111,714 | 64,122 | 79,036 | 64,122 | ||||||||||||
TOTAL LIABILITIES | 4,959,463 | 4,714,584 | 4,998,603 | 4,714,584 | ||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
Preferred shares, 0 par value, 1,000,000 shares authorized and, NaN issued or outstanding | 0 | 0 | ||||||||||||||
Common shares, $0.01 par value, 7,500,000 authorized 785,146 and 789,646 outstanding at March 31, 2022 and December 31, 2021, respectively | 8 | 8 | ||||||||||||||
Additional paid in capital | 73,264 | 77,516 | ||||||||||||||
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 | 404,389 | 387,331 | 436,258 | 387,331 | ||||||||||||
Accumulated other comprehensive (loss), net of taxes | (12,948 | ) | (1,719 | ) | ||||||||||||
Accumulated other comprehensive (loss) / income, net of taxes | (27,699 | ) | (1,719 | ) | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 464,713 | 463,136 | 468,178 | 463,136 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,424,176 | $ | 5,177,720 | $ | 5,466,781 | $ | 5,177,720 |
Three Months Ended March 31, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | ||||||
Interest income | ||||||||
Interest and fees on loans and leases | $ | 37,433 | $ | 37,087 | ||||
Interest and dividends on investments | 5,295 | 4,417 | ||||||
Interest on deposits with others | 366 | 103 | ||||||
Total interest income | 43,094 | 41,607 | ||||||
Interest expense | ||||||||
Deposits | 803 | 1,237 | ||||||
Subordinated debentures | 82 | 79 | ||||||
Total interest expense | 885 | 1,316 | ||||||
Net interest income | 42,209 | 40,291 | ||||||
Provision for credit losses | 0 | 1,250 | ||||||
Net interest income after provision for credit losses | 42,209 | 39,041 | ||||||
Noninterest income | ||||||||
Card processing | 1,737 | 1,579 | ||||||
Service charges on deposit accounts | 850 | 638 | ||||||
Increase in cash surrender value of BOLI | 542 | 526 | ||||||
Gain on sale of investment securities | 0 | 1,840 | ||||||
Net gain/(loss) on deferred compensation benefits | 412 | 3,540 | ||||||
Other | 771 | 1,412 | ||||||
Total noninterest income | 4,312 | 9,535 | ||||||
Noninterest expense | ||||||||
Salaries and employee benefits | 16,784 | 16,740 | ||||||
Net gain/(loss) on deferred compensation benefits | 412 | 3,540 | ||||||
Occupancy | 1,154 | 1,231 | ||||||
Data processing | 1,215 | 1,224 | ||||||
FDIC insurance | 349 | 287 | ||||||
Marketing | 316 | 188 | ||||||
Legal | 279 | 111 | ||||||
Other | 3,279 | 3,042 | ||||||
Total noninterest expense | 23,788 | 26,363 | ||||||
INCOME BEFORE INCOME TAXES | 22,733 | 22,213 | ||||||
Income tax expense | 5,675 | 5,500 | ||||||
NET INCOME | $ | 17,058 | $ | 16,713 | ||||
Earnings per common share: | ||||||||
Basic | $ | 21.70 | $ | 21.17 | ||||
Diluted | $ | 21.70 | $ | 21.17 | ||||
Weighted average number of common shares | ||||||||
Basic | 786,096 | 789,646 | ||||||
Diluted | 786,096 | 789,646 |
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 |
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Net income | $ | 17,058 | $ | 16,713 | ||||
Other comprehensive income | ||||||||
Unrealized holding (losses)/gains on securities available for sale | (15,865 | ) | (18,566 | ) | ||||
Reclassification adjustment for (gains)/losses on available for sale securities | 0 | (1,840 | ) | |||||
Amortization of unrealized loss on securities transferred to held to maturity | (77 | ) | (58 | ) | ||||
Net unrealized holding (losses)/gains on securities available for sale | (15,942 | ) | (20,464 | ) | ||||
Income tax benefit/(expense) | 4,713 | 6,049 | ||||||
Other comprehensive (loss)/income, net of tax | (11,229 | ) | (14,415 | ) | ||||
Total comprehensive income | $ | 5,829 | $ | 2,298 |
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 |
(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 |
(Dollars in thousands, except share amounts) | Common Shares | Amount | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Total | ||||||||||||||||||
Balance as of December 31, 2020 | 789,646 | $ | 8 | $ | 77,516 | $ | 333,070 | $ | 13,071 | $ | 423,665 | |||||||||||||
Net income | - | 0 | 0 | 16,713 | 0 | 16,713 | ||||||||||||||||||
Other comprehensive (loss), net of tax | - | 0 | 0 | 0 | (14,415 | ) | (14,415 | ) | ||||||||||||||||
Cash dividends returned | - | 0 | 0 | 7 | 0 | 7 | ||||||||||||||||||
Balance as of March 31, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 349,790 | $ | (1,344 | ) | $ | 425,970 | ||||||||||||
Balance as of December 31, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 387,331 | $ | (1,719 | ) | $ | 463,136 | ||||||||||||
Net income | - | 0 | 0 | 17,058 | 0 | 17,058 | ||||||||||||||||||
Other comprehensive (loss), net of tax | - | 0 | 0 | 0 | (11,229 | ) | (11,229 | ) | ||||||||||||||||
Repurchase of common stock | (4,500 | ) | 0 | (4,252 | ) | 0 | 0 | (4,252 | ) | |||||||||||||||
Balance as of March 31, 2022 | 785,146 | $ | 8 | $ | 73,264 | $ | 404,389 | $ | (12,948 | ) | $ | 464,713 |
Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 17,058 | $ | 16,713 | $ | 55,037 | $ | 50,368 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Provision for credit losses | 0 | 1,250 | 3,000 | 1,250 | ||||||||||||
Depreciation and amortization | 656 | 660 | 1,849 | 1,971 | ||||||||||||
Net amortization of securities premiums and discounts | 176 | 407 | 341 | 1,133 | ||||||||||||
Increase in cash surrender value of BOLI | (542 | ) | (527 | ) | (1,666 | ) | (1,616 | ) | ||||||||
(Increase)/decrease in deferred income taxes, net | (113 | ) | 4,714 | |||||||||||||
Gains on sale of securities available for sale | 0 | (1,840 | ) | |||||||||||||
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 | 4,709 | 6,258 | (2,362 | ) | (8,772 | ) | ||||||||||
Other liabilities | 6,966 | 1,386 | 18,134 | 10,738 | ||||||||||||
Net cash provided by operating activities | 28,910 | 29,021 | 79,674 | 52,062 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Net change in loans held for investment | (374 | ) | (11,340 | ) | (86,401 | ) | (39,956 | ) | ||||||||
Purchase of available for sale securities | (10,067 | ) | (199,440 | ) | ||||||||||||
Purchase of held to maturity securities | (118,162 | ) | (3,211 | ) | ||||||||||||
Maturities/sales of available for sale securities | 13,097 | 110,388 | ||||||||||||||
Maturities of held to maturity securities | 19,516 | 3,930 | ||||||||||||||
Purchase of 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 | (363 | ) | (100 | ) | (3,318 | ) | (1,001 | ) | ||||||||
Purchase of other investments | 0 | (632 | ) | (5,300 | ) | (4,516 | ) | |||||||||
Redemption of other investments | - | 2,556 | ||||||||||||||
Proceeds from bank-owned life insurance | 511 | - | ||||||||||||||
Proceeds from sale of assets | 34 | 0 | 73 | 635 | ||||||||||||
Net cash used in investing activities | (96,319 | ) | (100,405 | ) | (157,341 | ) | (67,346 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Net increase in deposits | 197,287 | 180,947 | 269,105 | 508,127 | ||||||||||||
Net cash used in share repurchase program | (4,252 | ) | 0 | |||||||||||||
Cash dividends returned | 0 | 7 | ||||||||||||||
Cash dividends paid | (6,110 | ) | (5,915 | ) | ||||||||||||
Net cash used in share repurchase of common stock | (17,905 | ) | - | |||||||||||||
Net provided by financing activities | 193,035 | 180,954 | 245,090 | 502,212 | ||||||||||||
Net change in cash and cash equivalents | 125,626 | 109,570 | 167,423 | 486,928 | ||||||||||||
Cash and cash equivalents, beginning of period | 715,460 | 383,837 | 715,460 | 383,837 | ||||||||||||
Cash and cash equivalents, end of period | $ | 841,086 | $ | 493,407 | $ | 882,883 | $ | 870,765 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid for interest | $ | 951 | $ | 1,943 | $ | 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 | $ | 0 | $ | 316,925 | ||||||||||||
Security purchases settled in subsequent period | $ | (40,626 | ) | $ | 0 | |||||||||||
Unrealized losses on securities available for sale | $ | (15,865 | ) | $ | (20,406 | ) | ||||||||||
Investment securities available-for-sale transferred to held-to-maturity | $ | - | $ | 316,925 | ||||||||||||
Lease Liabilities Arising from Obtaining Right-of-Use Assets | $ | - | $ | 302 |
January-2022 | ||||||||||||||||||||||||
Reported | Reported | Impact of | ||||||||||||||||||||||
under | Pre- | ASC 326 | January-2022 | |||||||||||||||||||||
(Dollars in thousands) | ASC 326 | Adoption | Adoption | 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 | $ | (17,379 | ) | $ | (28,536 | ) | $ | 11,157 | ||||||||
Agricultural | (14,580 | ) | (9,613 | ) | (4,967 | ) | (14,580 | ) | (9,613 | ) | (4,967 | ) | ||||||||||||
Residential and home equity | (5,879 | ) | (2,847 | ) | (3,032 | ) | (5,879 | ) | (2,847 | ) | (3,032 | ) | ||||||||||||
Construction | (3,311 | ) | (1,456 | ) | (1,855 | ) | (3,311 | ) | (1,456 | ) | (1,855 | ) | ||||||||||||
Total real estate | (41,149 | ) | (42,452 | ) | 1,303 | (41,149 | ) | (42,452 | ) | 1,303 | ||||||||||||||
Commercial & industrial | (11,417 | ) | (11,489 | ) | 72 | (11,417 | ) | (11,489 | ) | 72 | ||||||||||||||
Agricultural | (6,363 | ) | (5,465 | ) | (898 | ) | (6,363 | ) | (5,465 | ) | (898 | ) | ||||||||||||
Commercial leases | (1,567 | ) | (938 | ) | (629 | ) | (1,567 | ) | (938 | ) | (629 | ) | ||||||||||||
Consumer and other | (511 | ) | (663 | ) | 152 | (511 | ) | (663 | ) | 152 | ||||||||||||||
Total allowance for credit losses | $ | (61,007 | ) | $ | (61,007 | ) | $ | 0 | $ | (61,007 | ) | $ | (61,007 | ) | $ | - |
Available-for-Sale Securities | Gross Unrealized | Gross Unrealized | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||||
As of March 31, 2022 | ||||||||||||||||||||||||||||||||
As of September 30, 2022 | ||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 9,955 | $ | 41 | $ | 0 | $ | 9,996 | $ | 4,979 | $ | - | $ | 38 | $ | 4,941 | ||||||||||||||||
U.S. Government-sponsored securities | 5,771 | 54 | 36 | 5,789 | 4,695 | 27 | 24 | 4,698 | ||||||||||||||||||||||||
Mortgage-backed securities (1) | 241,585 | 370 | 18,054 | 223,901 | 194,600 | 16 | 38,163 | 156,453 | ||||||||||||||||||||||||
Collateralized mortgage obligations (1) | 1,549 | 0 | 5 | 1,544 | 1,499 | - | 41 | 1,458 | ||||||||||||||||||||||||
Corporate securities | 10,051 | 0 | 216 | 9,835 | 10,046 | - | 452 | 9,594 | ||||||||||||||||||||||||
Other | 310 | 0 | 0 | 310 | 310 | - | - | 310 | ||||||||||||||||||||||||
Total available-for-sale securities | $ | 269,221 | $ | 465 | $ | 18,311 | $ | 251,375 | $ | 216,129 | $ | 43 | $ | 38,718 | $ | 177,454 |
Available-for-Sale Securities | Gross Unrealized | |||||||||||||||||||||||||||||||
Gross Unrealized | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 9,938 | $ | 151 | $ | 0 | $ | 10,089 | $ | 9,938 | $ | 151 | $ | - | $ | 10,089 | ||||||||||||||||
U.S. Government-sponsored securities | 6,351 | 62 | 39 | 6,374 | 6,351 | 62 | 39 | 6,374 | ||||||||||||||||||||||||
Mortgage-backed securities (1) | 253,300 | 3,200 | 5,380 | 251,120 | 253,300 | 3,200 | 5,380 | 251,120 | ||||||||||||||||||||||||
Collateralized mortgage obligations (1) | 2,412 | 24 | 0 | 2,436 | 2,412 | 24 | - | 2,436 | ||||||||||||||||||||||||
Other | 435 | 0 | 0 | 435 | 435 | - | - | 435 | ||||||||||||||||||||||||
Total available-for-sale securities | $ | 272,436 | $ | 3,437 | $ | 5,419 | $ | 270,454 | $ | 272,436 | $ | 3,437 | $ | 5,419 | $ | 270,454 |
Held-to-Maturity Securities | Gross Unrealized | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of March 31, 2022 | ||||||||||||||||
Municipal securities | $ | 63,581 | $ | 162 | $ | 65 | $ | 63,678 | ||||||||
Mortgage-backed securities (1) | 695,249 | 0 | 60,650 | 634,599 | ||||||||||||
Collateralized mortgage obligations (1) | 117,427 | 0 | 4,795 | 112,632 | ||||||||||||
Total held-to-maturity securities | $ | 876,257 | $ | 162 | $ | 65,510 | $ | 810,909 |
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 |
Held-to-Maturity Securities | Gross Unrealized | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
As of December 31, 2021 | ||||||||||||||||
Municipal securities | $ | 66,496 | $ | 701 | $ | 0 | $ | 67,197 | ||||||||
Mortgage-backed securities (1) | 596,775 | 45 | 11,764 | 585,056 | ||||||||||||
Collateralized mortgage obligations (1) | 73,781 | 36 | 229 | 73,588 | ||||||||||||
Total held-to-maturity securities | $ | 737,052 | $ | 782 | $ | 11,993 | $ | 725,841 |
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 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 |
Available-for-Sale Securities | As of March 31, 2022 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of March 31, 2022 | ||||||||||||||||||||||||
U.S. Government-sponsored securities | $ | 15 | $ | 0 | $ | 1,992 | $ | 36 | $ | 2,007 | $ | 36 | ||||||||||||
Mortgage-backed securities(1) | 81,711 | 3,753 | 114,391 | 14,301 | 196,102 | 18,054 | ||||||||||||||||||
Collateralized Mortgage Obligations(1) | 1,544 | 5 | 0 | 0 | 1,544 | 5 | ||||||||||||||||||
Corporate securities | 9,835 | 216 | 0 | 0 | 9,835 | 216 | ||||||||||||||||||
Total available-for-sale securities | $ | 93,105 | $ | 3,974 | $ | 116,383 | $ | 14,337 | $ | 209,488 | $ | 18,311 |
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 |
Available-for-Sale Securities | As of December 31, 2021 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||
U.S. Government-sponsored securities | $ | 183 | $ | 0 | $ | 2,007 | $ | 39 | $ | 2,190 | $ | 39 | ||||||||||||
Mortgage-backed securities(1) | 61,469 | 1,192 | 104,489 | 4,188 | 165,958 | 5,380 | ||||||||||||||||||
Total available-for-sale securities | $ | 61,652 | $ | 1,192 | $ | 106,496 | $ | 4,227 | $ | 168,148 | $ | 5,419 |
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 |
Held-to-Maturity Securities | As of March 31, 2022 | |||||||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
As of March 31, 2022 | ||||||||||||||||||||||||
Municipal securities | $ | 1,034 | $ | 65 | $ | 0 | $ | 0 | $ | 1,034 | $ | 65 | ||||||||||||
Mortgage-backed securities(1) | 398,924 | 31,318 | 234,460 | 29,332 | 633,384 | 60,650 | ||||||||||||||||||
Collateralized mortgage obligations(1) | 73,221 | 4,795 | 0 | 0 | 73,221 | 4,795 | ||||||||||||||||||
Total held-to-maturity securities | $ | 473,179 | $ | 36,178 | $ | 234,460 | $ | 29,332 | $ | 707,639 | $ | 65,510 |
Held-to-Maturity Securities | As of December 31, 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | 570,119 | $ | 11,764 | $ | 0 | $ | 0 | $ | 570,119 | $ | 11,764 | ||||||||||||
Collateralized mortgage obligations(1) | 58,977 | 229 | 0 | 0 | 58,977 | 229 | ||||||||||||||||||
Total held-to-maturity securities | $ | 629,096 | $ | 11,993 | $ | 0 | $ | 0 | $ | 629,096 | $ | 11,993 |
Available-for-Sale | Held-to-Maturity | Available-for-Sale | Held-to-Maturity | |||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||
Securities maturing in: | ||||||||||||||||||||||||||||||||
One year or less | $ | 10,268 | $ | 10,310 | $ | 908 | $ | 908 | $ | 5,312 | $ | 5,274 | $ | 883 | $ | 883 | ||||||||||||||||
After one year through five years | 5,160 | 5,073 | 7,118 | 7,113 | 21,418 | 20,600 | 7,484 | 7,324 | ||||||||||||||||||||||||
After five years through ten years | 5,455 | 5,326 | 16,690 | 16,846 | 25,492 | 23,196 | 28,907 | 26,852 | ||||||||||||||||||||||||
After ten years | 5,204 | 5,221 | 38,865 | 38,811 | 163,907 | 128,384 | 815,391 | 655,863 | ||||||||||||||||||||||||
$ | 26,087 | $ | 25,930 | $ | 63,581 | $ | 63,678 | |||||||||||||||||||||||||
Securities not due at a single maturity date: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 241,585 | 223,901 | 695,249 | 634,599 | ||||||||||||||||||||||||||||
Collateralized Mortgage Obligations | 1,549 | 1,544 | 117,427 | 112,632 | ||||||||||||||||||||||||||||
Total | $ | 269,221 | $ | 251,375 | $ | 876,257 | $ | 810,909 | $ | 216,129 | $ | 177,454 | $ | 852,665 | $ | 690,922 |
Available-for-Sale | Held-to-Maturity | Available-for-Sale | Held-to-Maturity | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Amortized Cost | Fair Value | Amortized Cost | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | AAA/AA/A | BBB/BB/B | Not Rated | AAA/AA/A | BBB/BB/B | Not Rated | AAA/AA/A | BBB/BB/B | Not Rated | AAA/AA/A | BBB/BB/B | Not Rated | ||||||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown by Category: | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 0 | $ | 0 | $ | 9,996 | $ | 0 | $ | 0 | $ | 0 | $ | 4,941 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||
U.S. Government-sponsored securities | 0 | 0 | 5,789 | 0 | 0 | 0 | - | - | 4,698 | - | - | - | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | 0 | 0 | 223,901 | 0 | 0 | 695,249 | - | - | 156,453 | - | - | 709,541 | ||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations(1) | 0 | 0 | 1,544 | 0 | 0 | 117,427 | - | - | 1,458 | - | - | 82,297 | ||||||||||||||||||||||||||||||||||||
Obligations of States and Political Subdivisions | 0 | 0 | 0 | 19,715 | 134 | 43,732 | ||||||||||||||||||||||||||||||||||||||||||
Municipal securities | - | - | - | 18,025 | 386 | 42,416 | ||||||||||||||||||||||||||||||||||||||||||
Corporate securities | 9,835 | 0 | 0 | 0 | 0 | 0 | 4,795 | 4,799 | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Other | 0 | 0 | 310 | 0 | 0 | 0 | - | - | 310 | - | - | - | ||||||||||||||||||||||||||||||||||||
Total Investment Grade | $ | 9,835 | $ | 0 | $ | 241,540 | $ | 19,715 | $ | 134 | $ | 856,408 | $ | 9,736 | $ | 4,799 | $ | 162,919 | $ | 18,025 | $ | 386 | $ | 834,254 |
(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 |
(Dollars in thousands) | Gross Proceeds | Gross Gains | Gross Losses | |||||||||
Three months ended March 31, 2022 | $ | 2,190 | $ | 0 | $ | 0 | ||||||
Three months ended March 31, 2021 | $ | 63,788 | $ | 1,840 | $ | 0 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 1,172,804 | $ | 1,167,516 | $ | 1,246,805 | $ | 1,167,516 | ||||||||
Agricultural | 695,565 | 672,830 | 722,448 | 672,830 | ||||||||||||
Residential and home equity | 359,214 | 350,581 | 377,249 | 350,581 | ||||||||||||
Construction | 204,794 | 177,163 | 169,624 | 177,163 | ||||||||||||
Total real estate | 2,432,377 | 2,368,090 | 2,516,126 | 2,368,090 | ||||||||||||
Commercial & industrial | 437,199 | 427,799 | 454,185 | 427,799 | ||||||||||||
Agricultural(1) | 251,469 | 276,684 | ||||||||||||||
Agricultural | 260,296 | 276,684 | ||||||||||||||
Commercial leases | 92,445 | 96,971 | 94,089 | 96,971 | ||||||||||||
Consumer and other | 33,255 | 78,367 | 7,776 | 78,367 | ||||||||||||
Total gross loans and leases | 3,246,745 | 3,247,911 | 3,332,472 | 3,247,911 | ||||||||||||
Unearned income | (9,126 | ) | (10,734 | ) | (8,610 | ) | (10,734 | ) | ||||||||
Total net loans and leases | 3,237,619 | 3,237,177 | 3,323,862 | 3,237,177 | ||||||||||||
Allowance for credit losses | (61,032 | ) | (61,007 | ) | (63,617 | ) | (61,007 | ) | ||||||||
Total loans and leases held-for-investment, net | $ | 3,176,587 | $ | 3,176,170 | ||||||||||||
Total loans and leases held for investment, net | $ | 3,260,245 | $ | 3,176,170 |
March 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- accrual | Total Past Due | Total | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- accrual | Total Past Due | Total | ||||||||||||||||||||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,162,528 | $ | 1,251 | $ | 0 | $ | 437 | $ | 1,688 | $ | 1,164,216 | $ | 1,238,110 | $ | 170 | $ | - | $ | 411 | $ | 581 | $ | 1,238,691 | ||||||||||||||||||||||||
Agricultural | 695,565 | 0 | 0 | 0 | 0 | 695,565 | 722,448 | - | - | - | - | 722,448 | ||||||||||||||||||||||||||||||||||||
Residential and home equity | 358,849 | 365 | 0 | 0 | 365 | 359,214 | 377,224 | 25 | - | - | 25 | 377,249 | ||||||||||||||||||||||||||||||||||||
Construction | 204,794 | 0 | 0 | 0 | 0 | 204,794 | 169,624 | - | - | - | - | 169,624 | ||||||||||||||||||||||||||||||||||||
Total real estate | 2,421,736 | 1,616 | 0 | 437 | 2,053 | 2,423,789 | 2,507,406 | 195 | - | 411 | 606 | 2,508,012 | ||||||||||||||||||||||||||||||||||||
Commercial & Industrial | 437,199 | 0 | 0 | 0 | 0 | 437,199 | ||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | 454,185 | - | - | - | - | 454,185 | ||||||||||||||||||||||||||||||||||||||||||
Agricultural | 250,669 | 800 | 0 | 0 | 800 | 251,469 | 260,296 | - | - | - | - | 260,296 | ||||||||||||||||||||||||||||||||||||
Commercial leases | 91,907 | 0 | 0 | 0 | 0 | 91,907 | 93,593 | - | - | - | - | 93,593 | ||||||||||||||||||||||||||||||||||||
Consumer and other | 33,208 | 47 | 0 | 0 | 47 | 33,255 | 7,766 | 10 | - | - | 10 | 7,776 | ||||||||||||||||||||||||||||||||||||
Total loans and leases, net | $ | 3,234,719 | $ | 2,463 | $ | 0 | $ | 437 | $ | 2,900 | $ | 3,237,619 | $ | 3,323,246 | $ | 205 | $ | - | $ | 411 | $ | 616 | $ | 3,323,862 |
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- ccrual | Total Past Due | Total | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- accrual | Total Past Due | Total | ||||||||||||||||||||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,156,879 | $ | 459 | $ | 0 | $ | 0 | $ | 459 | $ | 1,157,338 | $ | 1,156,879 | $ | 459 | $ | - | $ | - | $ | 459 | $ | 1,157,338 | ||||||||||||||||||||||||
Agricultural | 672,812 | 0 | 0 | 18 | 18 | 672,830 | 672,812 | - | - | 18 | 18 | 672,830 | ||||||||||||||||||||||||||||||||||||
Residential and home equity | 350,492 | 89 | 0 | 0 | 89 | 350,581 | 350,492 | 89 | - | - | 89 | 350,581 | ||||||||||||||||||||||||||||||||||||
Construction | 177,163 | 0 | 0 | 0 | 0 | 177,163 | 177,163 | - | - | - | - | 177,163 | ||||||||||||||||||||||||||||||||||||
Total real estate | 2,357,346 | 548 | 0 | 18 | 566 | 2,357,912 | 2,357,346 | 548 | - | 18 | 566 | 2,357,912 | ||||||||||||||||||||||||||||||||||||
Commercial & Industrial | 427,799 | 0 | 0 | 0 | 0 | 427,799 | ||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | 427,799 | - | - | - | - | 427,799 | ||||||||||||||||||||||||||||||||||||||||||
Agricultural | 276,186 | 0 | 0 | 498 | 498 | 276,684 | 276,186 | - | - | 498 | 498 | 276,684 | ||||||||||||||||||||||||||||||||||||
Commercial leases | 96,415 | 0 | 0 | 0 | 0 | 96,415 | 96,415 | - | - | - | - | 96,415 | ||||||||||||||||||||||||||||||||||||
Consumer and other | 78,363 | 4 | 0 | 0 | 4 | 78,367 | 78,363 | 4 | - | - | 4 | 78,367 | ||||||||||||||||||||||||||||||||||||
Total loans and leases, net | $ | 3,236,109 | $ | 552 | $ | 0 | $ | 516 | $ | 1,068 | $ | 3,237,177 | $ | 3,236,109 | $ | 552 | $ | - | $ | 516 | $ | 1,068 | $ | 3,237,177 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||
Non-accrual loans and leases: | ||||||||||||||||
Non-accrual loans and leases, not TDRs | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 437 | $ | 0 | $ | 411 | $ | - | ||||||||
Agricultural | 0 | 18 | - | 18 | ||||||||||||
Residential and home equity | 0 | 0 | - | - | ||||||||||||
Construction | 0 | 0 | - | - | ||||||||||||
Total real estate | 437 | 18 | 411 | 18 | ||||||||||||
Commercial & Industrial | 0 | 0 | ||||||||||||||
Commercial & industrial | - | - | ||||||||||||||
Agricultural | 0 | 0 | - | - | ||||||||||||
Commercial leases | 0 | 0 | - | - | ||||||||||||
Consumer and other | 0 | 0 | - | - | ||||||||||||
Subtotal | 437 | 18 | 411 | 18 | ||||||||||||
Non-accrual loans and leases, are TDRs | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 0 | $ | 0 | $ | - | $ | - | ||||||||
Agricultural | 0 | 0 | - | - | ||||||||||||
Residential and home equity | 0 | 0 | - | - | ||||||||||||
Construction | 0 | 0 | - | - | ||||||||||||
Total real estate | 0 | 0 | - | - | ||||||||||||
Commercial & Industrial | 0 | 0 | ||||||||||||||
Commercial & industrial | - | - | ||||||||||||||
Agricultural | 0 | 498 | - | 498 | ||||||||||||
Commercial leases | 0 | 0 | - | - | ||||||||||||
Consumer and other | 0 | 0 | - | - | ||||||||||||
Subtotal | 0 | 498 | - | 498 | ||||||||||||
Total non-accrual loans and leases | $ | 437 | $ | 516 | $ | 411 | $ | 516 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||
Troubled debt restructured loans and leases: | ||||||||||||||||
Accruing TDR loans and leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 0 | $ | 41 | $ | - | $ | 41 | ||||||||
Agricultural | 0 | 0 | - | - | ||||||||||||
Residential and home equity | 1,347 | 1,522 | 1,319 | 1,522 | ||||||||||||
Construction | 0 | 0 | - | - | ||||||||||||
Total real estate | 1,347 | 1,563 | 1,319 | 1,563 | ||||||||||||
Commercial & Industrial | 255 | 260 | ||||||||||||||
Commercial & industrial | 6 | 260 | ||||||||||||||
Agricultural | 0 | 0 | - | - | ||||||||||||
Commercial leases | 0 | 0 | - | - | ||||||||||||
Consumer and other | 1 | 1 | - | 1 | ||||||||||||
Subtotal | 1,603 | 1,824 | 1,325 | 1,824 | ||||||||||||
Non-accruing TDR loans and leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | 0 | 0 | $ | - | $ | - | ||||||||||
Agricultural | 0 | 0 | - | - | ||||||||||||
Residential and home equity | 0 | 0 | - | - | ||||||||||||
Construction | 0 | 0 | - | - | ||||||||||||
Total real estate | 0 | 0 | - | - | ||||||||||||
Commercial & Industrial | 0 | 0 | ||||||||||||||
Commercial & industrial | - | - | ||||||||||||||
Agricultural | 0 | 498 | - | 498 | ||||||||||||
Commercial leases | 0 | 0 | - | - | ||||||||||||
Consumer and other | 0 | 0 | - | - | ||||||||||||
Subtotal | 0 | 498 | - | 498 | ||||||||||||
Total TDR loans and leases | $ | 1,603 | $ | 2,322 | $ | 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 |
March 31, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | # of Accruing TDR | $ of Accruing TDR | # of Non- Accruing TDR | $ of Non- Accruing TDR | # of Total TDR | $ of Total TDR | ||||||||||||||||||
Loan and lease TDRs | ||||||||||||||||||||||||
2022 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | |||||||||||||||
2021 | 1 | 48 | 0 | 0 | 1 | 48 | ||||||||||||||||||
2020 | 5 | 468 | 0 | 0 | 5 | 468 | ||||||||||||||||||
2019 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Thereafter | 9 | 1,087 | 0 | 0 | 9 | 1,087 | ||||||||||||||||||
Total | 15 | $ | 1,603 | 0 | $ | 0 | 15 | $ | 1,603 |
March 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | ||||||||||||||||||||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,153,584 | $ | 6,878 | $ | 3,754 | $ | 0 | $ | 1,164,216 | $ | 17,920 | $ | 1,229,837 | $ | 7,320 | $ | 1,534 | $ | - | $ | 1,238,691 | $ | 16,540 | ||||||||||||||||||||||||
Agricultural | 683,415 | 5,996 | 6,154 | 0 | 695,565 | 14,591 | 705,404 | 10,891 | 6,153 | - | 722,448 | 16,560 | ||||||||||||||||||||||||||||||||||||
Residential and home equity | 358,847 | 0 | 367 | 0 | 359,214 | 6,759 | 377,021 | - | 228 | - | 377,249 | 6,865 | ||||||||||||||||||||||||||||||||||||
Construction | 204,794 | 0 | 0 | 0 | 204,794 | 3,777 | 169,624 | - | - | - | 169,624 | 2,995 | ||||||||||||||||||||||||||||||||||||
Total real estate | 2,400,640 | 12,874 | 10,275 | 0 | 2,423,789 | 43,047 | 2,481,886 | 18,211 | 7,915 | - | 2,508,012 | 42,960 | ||||||||||||||||||||||||||||||||||||
Commercial & Industrial | 427,109 | 9,437 | 653 | 0 | 437,199 | 10,361 | ||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | 453,832 | 70 | 283 | - | 454,185 | 10,392 | ||||||||||||||||||||||||||||||||||||||||||
Agricultural | 249,972 | 1,477 | 20 | 0 | 251,469 | 5,737 | 253,554 | 6,726 | 16 | - | 260,296 | 8,523 | ||||||||||||||||||||||||||||||||||||
Commercial leases | 91,772 | 135 | 0 | 0 | 91,907 | 1,466 | 93,493 | 100 | - | - | 93,593 | 1,588 | ||||||||||||||||||||||||||||||||||||
Consumer and other | 33,081 | 0 | 174 | 0 | 33,255 | 421 | 7,583 | - | 193 | - | 7,776 | 154 | ||||||||||||||||||||||||||||||||||||
Total loans and leases, net | $ | 3,202,574 | $ | 23,923 | $ | 11,122 | $ | 0 | $ | 3,237,619 | $ | 61,032 | $ | 3,290,348 | $ | 25,107 | $ | 8,407 | $ | - | $ | 3,323,862 | $ | 63,617 |
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | ||||||||||||||||||||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,142,175 | $ | 6,903 | $ | 8,260 | $ | 0 | $ | 1,157,338 | $ | 28,536 | $ | 1,142,175 | $ | 6,903 | $ | 8,260 | $ | - | $ | 1,157,338 | $ | 28,536 | ||||||||||||||||||||||||
Agricultural | 663,157 | 3,292 | 6,381 | 0 | 672,830 | 9,613 | 663,157 | 3,292 | 6,381 | - | 672,830 | 9,613 | ||||||||||||||||||||||||||||||||||||
Residential and home equity | 350,148 | 0 | 433 | 0 | 350,581 | 2,847 | 350,148 | - | 433 | - | 350,581 | 2,847 | ||||||||||||||||||||||||||||||||||||
Construction | 177,163 | 0 | 0 | 0 | 177,163 | 1,456 | 177,163 | - | - | - | 177,163 | 1,456 | ||||||||||||||||||||||||||||||||||||
Total real estate | 2,332,643 | 10,195 | 15,074 | 0 | 2,357,912 | 42,452 | 2,332,643 | 10,195 | 15,074 | - | 2,357,912 | 42,452 | ||||||||||||||||||||||||||||||||||||
Commercial & Industrial | 417,806 | 9,321 | 672 | 0 | 427,799 | 11,489 | ||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | 417,806 | 9,321 | 672 | - | 427,799 | 11,489 | ||||||||||||||||||||||||||||||||||||||||||
Agricultural | 275,206 | 958 | 520 | 0 | 276,684 | 5,465 | 275,206 | 958 | 520 | - | 276,684 | 5,465 | ||||||||||||||||||||||||||||||||||||
Commercial leases | 96,415 | 0 | 0 | 0 | 96,415 | 938 | 96,415 | - | - | - | 96,415 | 938 | ||||||||||||||||||||||||||||||||||||
Consumer and other | 78,181 | 0 | 186 | 0 | 78,367 | 663 | 78,181 | - | 186 | - | 78,367 | 663 | ||||||||||||||||||||||||||||||||||||
Total loans and leases, net | $ | 3,200,251 | $ | 20,474 | $ | 16,452 | $ | 0 | $ | 3,237,177 | $ | 61,007 | $ | 3,200,251 | $ | 20,474 | $ | 16,452 | $ | - | $ | 3,237,177 | $ | 61,007 |
March 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost | Total | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loans and leases held-for-investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loans and leases held for investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 25,293 | $ | 247,149 | $ | 164,009 | $ | 82,890 | $ | 95,039 | $ | 254,266 | $ | 284,938 | $ | 1,153,584 | $ | 140,036 | $ | 236,947 | $ | 153,480 | $ | 72,167 | $ | 86,063 | $ | 227,146 | $ | 313,998 | $ | 1,229,837 | ||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 3,888 | 840 | 2,150 | 6,878 | - | - | - | - | 3,844 | - | 3,476 | 7,320 | ||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 3,104 | 650 | 3,754 | - | - | - | - | - | 1,534 | - | 1,534 | ||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | $ | 25,293 | $ | 247,149 | $ | 164,009 | $ | 82,890 | $ | 98,927 | $ | 258,210 | $ | 287,738 | $ | 1,164,216 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 12,121 | $ | 43,482 | $ | 58,501 | $ | 15,393 | $ | 56,374 | $ | 159,386 | $ | 338,158 | $ | 683,415 | $ | 54,480 | $ | 43,117 | $ | 56,965 | $ | 15,297 | $ | 51,194 | $ | 151,470 | $ | 332,881 | $ | 705,404 | ||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 2,382 | 2,636 | 143 | 0 | 835 | 5,996 | - | - | - | 2,636 | - | - | 8,255 | 10,891 | ||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 118 | 6,036 | 0 | 6,154 | - | - | - | - | 119 | 6,034 | - | 6,153 | ||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Total agricultural real estate | $ | 12,121 | $ | 43,482 | $ | 60,883 | $ | 18,029 | $ | 56,635 | $ | 165,422 | $ | 338,993 | $ | 695,565 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 21,332 | $ | 101,603 | $ | 93,842 | $ | 16,431 | $ | 7,719 | $ | 88,166 | $ | 29,754 | $ | 358,847 | $ | 51,888 | $ | 97,973 | $ | 88,214 | $ | 14,851 | $ | 6,910 | $ | 78,458 | $ | 38,727 | $ | 377,021 | ||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 220 | 147 | 367 | - | - | - | - | - | 144 | 84 | 228 | ||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Total residential and home equity | $ | 21,332 | $ | 101,603 | $ | 93,842 | $ | 16,431 | $ | 7,719 | $ | 88,386 | $ | 29,901 | $ | 359,214 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 0 | $ | 0 | $ | 0 | $ | 2,275 | $ | 0 | $ | 122 | $ | 202,397 | $ | 204,794 | $ | - | $ | - | $ | - | $ | 1,575 | $ | - | $ | 62 | $ | 167,987 | $ | 169,624 | ||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Total construction | $ | 0 | $ | 0 | $ | 0 | $ | 2,275 | $ | 0 | $ | 122 | $ | 202,397 | $ | 204,794 | $ | - | $ | - | $ | - | $ | 1,575 | $ | - | $ | 62 | $ | 167,987 | $ | 169,624 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Total real estate | $ | 58,746 | $ | 392,234 | $ | 318,734 | $ | 119,625 | $ | 163,281 | $ | 512,140 | $ | 859,029 | $ | 2,423,789 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Real estate | $ | 246,404 | $ | 378,037 | $ | 298,659 | $ | 106,526 | $ | 148,130 | $ | 464,848 | $ | 865,408 | $ | 2,508,012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 4,368 | $ | 45,633 | $ | 16,791 | $ | 15,010 | $ | 11,515 | $ | 9,983 | $ | 323,809 | $ | 427,109 | $ | 24,852 | $ | 41,476 | $ | 13,975 | $ | 10,646 | $ | 8,774 | $ | 6,386 | $ | 347,723 | $ | 453,832 | ||||||||||||||||||||||||||||||||
Special mention | 0 | 82 | 0 | 0 | 0 | 4 | 9,351 | 9,437 | - | 69 | - | - | - | 1 | - | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 38 | 31 | 584 | 653 | - | - | - | - | 6 | 6 | 271 | 283 | ||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial & industrial | $ | 4,368 | $ | 45,715 | $ | 16,791 | $ | 15,010 | $ | 11,553 | $ | 10,018 | $ | 333,744 | $ | 437,199 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||
Agriculture | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 1,236 | $ | 4,736 | $ | 1,353 | $ | 1,624 | $ | 834 | $ | 2,358 | $ | 237,831 | $ | 249,972 | $ | 4,387 | $ | 3,789 | $ | 1,082 | $ | 1,617 | $ | 731 | $ | 2,211 | $ | 239,737 | $ | 253,554 | ||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 98 | 1,379 | 1,477 | - | - | - | - | - | 7 | 6,719 | 6,726 | ||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 15 | 5 | 0 | 0 | 20 | - | - | - | 13 | 3 | - | - | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Agriculture | $ | 1,236 | $ | 4,736 | $ | 1,353 | $ | 1,639 | $ | 839 | $ | 2,456 | $ | 239,210 | $ | 251,469 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 3,635 | $ | 14,816 | $ | 14,904 | $ | 9,041 | $ | 22,133 | $ | 27,243 | $ | 0 | $ | 91,772 | $ | 11,541 | $ | 16,541 | $ | 13,664 | $ | 7,643 | $ | 21,387 | $ | 22,717 | $ | - | $ | 93,493 | ||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 0 | 135 | 0 | 0 | 0 | 135 | - | - | - | 100 | - | - | - | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial leases | $ | 3,635 | $ | 14,816 | $ | 14,904 | $ | 9,176 | $ | 22,133 | $ | 27,243 | $ | 0 | $ | 91,907 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 612 | $ | 26,679 | $ | 967 | $ | 425 | $ | 656 | $ | 2,870 | $ | 872 | $ | 33,081 | $ | 965 | $ | 2,463 | $ | 359 | $ | 235 | $ | 386 | $ | 2,481 | $ | 694 | $ | 7,583 | ||||||||||||||||||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 47 | 127 | 174 | 193 | - | - | - | - | - | - | 193 | ||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other | $ | 612 | $ | 26,679 | $ | 967 | $ | 425 | $ | 656 | $ | 2,917 | $ | 999 | $ | 33,255 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total 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 | $ | 68,597 | $ | 484,180 | $ | 352,749 | $ | 145,875 | $ | 198,462 | $ | 554,774 | $ | 1,432,982 | $ | 3,237,619 | $ | 288,342 | $ | 442,375 | $ | 327,739 | $ | 126,780 | $ | 179,417 | $ | 498,657 | $ | 1,460,552 | $ | 3,323,862 |
March 31, 2022 | September 30, 2022 | |||||||||||||||||||||||
(Dollars in thousands) | Real Estate | Vehicles | Total | Real Estate | Vehicles and Equipment | Total | ||||||||||||||||||
Collateral dependent loans and leases | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1 | $ | 0 | $ | 1 | $ | 1,124 | $ | - | $ | 1,124 | ||||||||||||
Agricultural | 5,560 | 0 | 5,560 | 11,944 | - | 11,944 | ||||||||||||||||||
Residential and home equity | 235 | 0 | 235 | 2,002 | - | 2,002 | ||||||||||||||||||
Construction | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Total real estate | 5,796 | 0 | 5,796 | |||||||||||||||||||||
Commercial & Industrial | 0 | 0 | 0 | |||||||||||||||||||||
Total Real estate | 15,070 | - | 15,070 | |||||||||||||||||||||
Commercial & industrial | - | - | - | |||||||||||||||||||||
Agricultural | 0 | 0 | 0 | - | 16 | 16 | ||||||||||||||||||
Commercial leases | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Consumer and other | 0 | 169 | 169 | - | 161 | 161 | ||||||||||||||||||
Total gross loans and leases | $ | 5,796 | $ | 169 | $ | 5,965 | $ | 15,070 | $ | 177 | $ | 15,247 |
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Real Estate | Vehicles | Total | Real Estate | Vehicles and Equipment | Total | ||||||||||||||||||
Collateral dependent loans and leases | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 5 | $ | 0 | $ | 5 | $ | 5 | $ | - | $ | 5 | ||||||||||||
Agricultural | 5,587 | 0 | 5,587 | 5,587 | - | 5,587 | ||||||||||||||||||
Residential and home equity | 330 | 0 | 330 | 330 | - | 330 | ||||||||||||||||||
Construction | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Total real estate | 5,922 | 0 | 5,922 | |||||||||||||||||||||
Commercial & Industrial | 0 | 0 | 0 | |||||||||||||||||||||
Total Real estate | 5,922 | - | 5,922 | |||||||||||||||||||||
Commercial & industrial | - | - | - | |||||||||||||||||||||
Agricultural | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Commercial leases | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Consumer and other | 0 | 173 | 173 | - | 173 | 173 | ||||||||||||||||||
Total gross loans and leases | $ | 5,922 | $ | 173 | $ | 6,095 | $ | 5,922 | $ | 173 | $ | 6,095 |
For the Three Months Ended March 31, 2022 | 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 | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | ||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period, prior to adoption of ASC 326 | $ | 38,149 | $ | 1,456 | $ | 2,847 | $ | 16,954 | $ | 938 | $ | 663 | $ | 61,007 | ||||||||||||||||||||||||||||||||||||||||||
Impact of adopting ASC 326 | (6,190 | ) | 1,855 | 3,032 | 826 | 629 | (152 | ) | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 34,716 | $ | 2,876 | $ | 6,874 | $ | 15,808 | $ | 1,645 | $ | 161 | $ | 62,080 | ||||||||||||||||||||||||||||||||||||||||||
Provision / (recapture) for credit losses | 552 | 466 | 866 | (1,700 | ) | (101 | ) | (83 | ) | 0 | (1,616 | ) | 119 | (15 | ) | 3,063 | (57 | ) | 5 | 1,499 | ||||||||||||||||||||||||||||||||||||
Charge-offs | 0 | 0 | 0 | 0 | 0 | (9 | ) | (9 | ) | - | - | - | (48 | ) | - | (20 | ) | (68 | ) | |||||||||||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 14 | 18 | 0 | 2 | 34 | - | - | 6 | 92 | - | 8 | 106 | ||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) / recoveries | 0 | 0 | 14 | 18 | 0 | (7 | ) | 25 | - | - | 6 | 44 | - | (12 | ) | 38 | ||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 32,511 | $ | 3,777 | $ | 6,759 | $ | 16,098 | $ | 1,466 | $ | 421 | $ | 61,032 | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 33,100 | $ | 2,995 | $ | 6,865 | $ | 18,915 | $ | 1,588 | $ | 154 | $ | 63,617 |
For the Three Months Ended March 31, 2021 | 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 | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | ||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 36,312 | $ | 1,643 | $ | 2,984 | $ | 14,775 | $ | 1,731 | $ | 1,417 | $ | 58,862 | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 38,149 | $ | 1,456 | $ | 2,847 | $ | 16,954 | $ | 938 | $ | 663 | $ | 61,007 | ||||||||||||||||||||||||||||||||||||||||||
Impact of Adopting ASC 326 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision / (recapture) for credit losses | 1,802 | 4 | (135 | ) | (584 | ) | (57 | ) | 220 | 1,250 | (5,049 | ) | 1,539 | 3,893 | 2,058 | 650 | (485 | ) | 2,606 | |||||||||||||||||||||||||||||||||||||
Charge-offs | 0 | 0 | 0 | 0 | 0 | (8 | ) | (8 | ) | - | - | - | (324 | ) | - | (38 | ) | (362 | ) | |||||||||||||||||||||||||||||||||||||
Recoveries | 0 | 0 | 32 | 32 | 0 | 7 | 71 | - | - | 125 | 227 | - | 14 | 366 | ||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) / recoveries | 0 | 0 | 32 | 32 | 0 | (1 | ) | 63 | - | - | 125 | (97 | ) | - | (24 | ) | 4 | |||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 38,114 | $ | 1,647 | $ | 2,881 | $ | 14,223 | $ | 1,674 | $ | 1,636 | $ | 60,175 | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 33,100 | $ | 2,995 | $ | 6,865 | $ | 18,915 | $ | 1,588 | $ | 154 | $ | 63,617 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Certificate of deposits: | ||||||||
Certificates of deposits less than or equal to $250,000 | 221,904 | 223,620 | ||||||
Certificates of deposits greater than $250,000 | 168,876 | 168,865 | ||||||
Total certificates of deposits | 390,780 | 392,485 |
(Dollars in thousands) | 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 | Amount | ||||||
2022 | $ | 291,366 | $ | 107,966 | ||||
2023 | 89,678 | 224,552 | ||||||
2024 | 5,633 | 22,362 | ||||||
2025 | 1,818 | 2,783 | ||||||
2026 and beyond | 2,285 | 2,721 | ||||||
Total time deposits | $ | 390,780 | ||||||
Total certificates of deposit | $ | 360,384 |
March 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Actual | Minimum Capital Requirement | Well Capitalized Requirment | Actual | Minimum to be Categorized as “Adequately Capitalized” | Minimum to be Categorized as “Well Capitalized” | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 463,607 | 11.63 | % | $ | 179,354 | 4.50 | % | N/A | N/A | $ | 482,053 | 11.82 | % | $ | 183,537 | 4.50 | % | N/A | N/A | ||||||||||||||||||||||||||||
Tier 1 capital to risk-weighted assets | 473,607 | 11.88 | % | 239,139 | 6.00 | % | N/A | N/A | 492,053 | 12.06 | % | 244,716 | 6.00 | % | N/A | N/A | ||||||||||||||||||||||||||||||||
Risk-based capital to risk-weighted assets | 523,580 | 13.14 | % | 318,851 | 8.00 | % | N/A | N/A | 543,218 | 13.32 | % | 326,288 | 8.00 | % | N/A | N/A | ||||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio | 473,607 | 8.45 | % | 224,315 | 4.00 | % | N/A | N/A | 492,053 | 9.12 | % | 215,702 | 4.00 | % | N/A | N/A | ||||||||||||||||||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 472,965 | 11.87 | % | $ | 179,339 | 4.50 | % | $ | 259,046 | 6.50 | % | $ | 491,237 | 12.04 | % | $ | 183,531 | 4.50 | % | $ | 265,101 | 6.50 | % | ||||||||||||||||||||||||
Tier 1 capital to risk-weighted assets | 472,965 | 11.87 | % | 239,119 | 6.00 | % | 318,826 | 8.00 | % | 491,237 | 12.04 | % | 244,708 | 6.00 | % | 326,278 | 8.00 | % | ||||||||||||||||||||||||||||||
Risk-based capital to risk-weighted assets | 522,934 | 13.12 | % | 318,826 | 8.00 | % | 398,532 | 10.00 | % | 542,400 | 13.30 | % | 326,278 | 8.00 | % | 407,847 | 10.00 | % | ||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio | 472,965 | 8.94 | % | 211,642 | 4.00 | % | 264,552 | 5.00 | % | 491,237 | 9.12 | % | 215,498 | 4.00 | % | 269,372 | 5.00 | % |
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Actual | Minimum Capital Requirement | Well Capitalized Requirment | Actual | Minimum to be Categorized as “Adequately Capitalized” | Minimum to be Categorized as “Well Capitalized” | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | 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 | $ | 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 | 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 | 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 | 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 | % | $ | 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 | % | 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 | % | 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 | % | 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 |
Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Numerator | ||||||||||||||||
Net income | $ | 17,058 | $ | 16,713 | $ | 55,037 | $ | 50,368 | ||||||||
Denominator | ||||||||||||||||
Weighted average number of common shares outstanding | 786,096 | 789,646 | 780,988 | 789,646 | ||||||||||||
Weighted average number of dilutive shares outstanding | 786,096 | 789,646 | 780,988 | 789,646 | ||||||||||||
Basic earnings per common share | $ | 21.70 | $ | 21.17 | $ | 70.47 | $ | 63.79 | ||||||||
Diluted earning per common share | $ | 21.70 | $ | 21.17 | ||||||||||||
Diluted earnings per common share | $ | 70.47 | $ | 63.79 |
March 31, 2022 | Fair Value | |||||||||||||||||||||||||||||||||||||||
September 30, 2022 | Fair Value | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 841,086 | $ | 841,086 | $ | 0 | $ | 0 | $ | 841,086 | $ | 882,883 | $ | 882,883 | $ | - | $ | - | $ | 882,883 | ||||||||||||||||||||
Investment securities available-for-sale | 251,375 | 9,996 | 241,379 | 0 | 251,375 | 177,454 | 4,941 | 172,513 | - | 177,454 | ||||||||||||||||||||||||||||||
Investment securities held-to-maturity | 876,257 | 0 | 771,971 | 43,732 | 815,703 | 852,272 | - | 663,285 | 42,416 | 705,701 | ||||||||||||||||||||||||||||||
Non-marketable securities | 15,549 | 0 | 0 | 15,549 | 15,549 | 15,549 | - | - | 15,549 | 15,549 | ||||||||||||||||||||||||||||||
Loans and leases, net | 3,176,587 | 0 | 0 | 3,184,796 | 3,184,796 | 3,260,245 | - | - | 3,203,611 | 3,203,611 | ||||||||||||||||||||||||||||||
Bank-owned life insurance | 71,953 | 71,953 | 0 | 0 | 71,953 | 72,566 | 72,566 | - | - | 72,566 | ||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Total deposits | 4,837,439 | $ | 4,446,659 | $ | 0 | $ | 387,625 | $ | 4,834,284 | $ | 4,909,257 | $ | - | $ | 4,548,873 | $ | 352,319 | $ | 4,901,192 | |||||||||||||||||||||
Subordinated debentures | 10,310 | 0 | 9,766 | 0 | 9,766 | 10,310 | - | 9,707 | - | 9,707 |
December 31, 2021 | Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 715,460 | $ | 715,460 | $ | 0 | $ | 0 | $ | 715,460 | $ | 715,460 | $ | 715,460 | $ | - | $ | - | $ | 715,460 | ||||||||||||||||||||
Investment securities available-for-sale | 270,454 | 10,214 | 260,240 | 0 | 270,454 | 270,454 | 10,214 | 260,240 | - | 270,454 | ||||||||||||||||||||||||||||||
Investment securities held-to-maturity | 737,052 | 0 | 681,588 | 44,446 | 726,034 | 737,052 | - | 681,588 | 44,446 | 726,034 | ||||||||||||||||||||||||||||||
Non-marketable securities | 15,549 | - | 0 | 15,549 | 15,549 | 15,549 | - | - | 15,549 | 15,549 | ||||||||||||||||||||||||||||||
Loans and leases, net | 3,176,170 | 0 | 0 | 3,179,857 | 3,179,857 | 3,176,170 | - | - | 3,179,857 | 3,179,857 | ||||||||||||||||||||||||||||||
Bank-owned life insurance | 71,411 | 71,411 | 0 | 0 | 71,411 | 71,411 | 71,411 | - | - | 71,411 | ||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 4,640,152 | $ | 4,247,666 | $ | 0 | $ | 391,732 | $ | 4,639,398 | $ | 4,640,152 | $ | - | $ | 4,247,666 | $ | 391,732 | $ | 4,639,398 | ||||||||||||||||||||
Subordinated debentures | 10,310 | 0 | 6,890 | 0 | 6,890 | 10,310 | - | 6,890 | - | 6,890 |
March 31, 2022 | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||
September 30, 2022 | Fair Value | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||||||||||
Fair valued on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 9,996 | $ | 9,996 | $ | 0 | $ | 0 | $ | 9,996 | $ | 4,941 | $ | 4,941 | $ | - | $ | - | $ | 4,941 | ||||||||||||||||||||
U.S. Government-sponsored securities | 5,789 | 0 | 5,789 | 0 | 5,789 | 4,698 | - | 4,698 | - | 4,698 | ||||||||||||||||||||||||||||||
Mortgage-backed securities | 223,901 | 0 | 223,901 | 0 | 223,901 | 156,453 | - | 156,453 | - | 156,453 | ||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 1,544 | 0 | 1,544 | 0 | 1,544 | 1,458 | - | 1,458 | - | 1,458 | ||||||||||||||||||||||||||||||
Corporate securities | 9,835 | 0 | 9,835 | 0 | 9,835 | 9,594 | - | 9,594 | - | 9,594 | ||||||||||||||||||||||||||||||
Other | 310 | 0 | 310 | 0 | 310 | 310 | - | 310 | - | 310 | ||||||||||||||||||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||
Other real estate | 873 | 0 | 0 | 873 | 873 | $ | 873 | $ | - | $ | - | $ | 873 | $ | 873 |
December 31, 2021 | Fair Value Measurements | Fair Value | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||||||||||
Fair valued on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 10,089 | $ | 10,089 | $ | 0 | $ | 0 | $ | 10,089 | $ | 10,089 | $ | 10,089 | $ | - | $ | - | $ | 10,089 | ||||||||||||||||||||
U.S. Government-sponsored securities | 6,374 | 0 | 6,374 | 0 | 6,374 | 6,374 | - | 6,374 | - | 6,374 | ||||||||||||||||||||||||||||||
Mortgage-backed securities | 251,120 | 0 | 251,120 | 0 | 251,120 | 251,120 | - | 251,120 | - | 251,120 | ||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 2,436 | 0 | 2,436 | 0 | 2,436 | 2,436 | - | 2,436 | - | 2,436 | ||||||||||||||||||||||||||||||
Other | 435 | 125 | 310 | 0 | 435 | 435 | 125 | 310 | - | 435 | ||||||||||||||||||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||
Individually evaluated loans | $ | 2,562 | $ | 0 | $ | 0 | $ | 2,562 | $ | 2,562 | $ | 2,562 | $ | - | $ | - | $ | 2,562 | $ | 2,562 | ||||||||||||||||||||
Other real estate | 873 | 0 | 0 | 873 | 873 | 873 | - | - | 873 | 873 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||
Commitments to extend credit, including unsecured commitments of $20,907 and $21,036 as of March 31, 2022 and December 31, 2021, respectively | $ | 987,423 | $ | 937,009 | ||||||||||||
Stand-by letters of credit, including unsecured commitments of $8,361 and $9,091 as of March 31, 2022 and December 31, 2021, respectively | 16,250 | 17,880 | ||||||||||||||
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 | 191 | 1,433 | - | 1,433 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
■ | the pendency, duration, and impact of the COVID-19 pandemic; |
■ | changes in general economic conditions, either nationally, in California, or in our local markets; |
■ | inflation, changes in interest rates, securities market volatility and monetary fluctuations; |
■ | increases in competitive pressures among financial institutions and businesses offering similar products and services; |
■ | higher defaults in our loan portfolio than we expect; |
■ | changes in management’s estimate of the adequacy of the allowance for credit losses; |
■ | risks associated with our growth and expansion strategy and related costs; |
■ | increased lending risks associated with our high concentration of real estate loans; |
■ | legislative or regulatory changes or changes in accounting principles, policies or guidelines; |
■ | technological changes; and |
■ | regulatory or judicial proceedings. |
■ | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses. |
■ | Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. |
■ | Changes in the nature and volume of the portfolio and in the terms of loans. |
■ | Changes in the experience, ability, and depth of lending management and other relevant staff. |
■ | Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. |
■ | Changes in the quality of the institution’s loan review system. |
■ | Changes in the value of underlying collateral for collateral-dependent loans. |
■ | The existence and effect of any concentrations of credit, and changes in the level of such concentrations. |
■ | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. |
Three Months Ended March 31, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 760,080 | $ | 366 | 0.20 | % | $ | 410,276 | $ | 103 | 0.10 | % | ||||||||||||
Securities:(1) | ||||||||||||||||||||||||
Taxable securities | 1,022,457 | 4,588 | 1.82 | % | 834,831 | 3,804 | 1.85 | % | ||||||||||||||||
Non-taxable securities(2) | 49,997 | 402 | 3.22 | % | 55,078 | 423 | 3.07 | % | ||||||||||||||||
Total securities | 1,072,454 | 4,990 | 1.89 | % | 889,909 | 4,227 | 1.93 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,151,611 | 13,276 | 4.68 | % | 965,249 | 10,977 | 4.61 | % | ||||||||||||||||
Agricultural | 680,230 | 7,793 | 4.65 | % | 638,292 | 7,136 | 4.53 | % | ||||||||||||||||
Residential and home equity | 353,371 | 3,301 | 3.79 | % | 335,573 | 4,571 | 5.52 | % | ||||||||||||||||
Construction | 191,684 | 2,072 | 4.38 | % | 193,366 | 2,097 | 4.40 | % | ||||||||||||||||
Total real estate | 2,376,896 | 26,442 | 4.51 | % | 2,132,480 | 24,781 | 4.71 | % | ||||||||||||||||
Commercial & industrial | 424,598 | 4,799 | 4.58 | % | 365,881 | 4,111 | 4.56 | % | ||||||||||||||||
Agricultural | 248,414 | 2,755 | 4.50 | % | 226,200 | 2,564 | 4.60 | % | ||||||||||||||||
Commercial leases | 94,855 | 1,416 | 6.05 | % | 102,566 | 1,344 | 5.31 | % | ||||||||||||||||
Consumer and other | 52,078 | 2,021 | 15.74 | % | 232,845 | 4,287 | 7.47 | % | ||||||||||||||||
Total loans and leases | 3,196,841 | 37,433 | 4.75 | % | 3,059,972 | 37,087 | 4.92 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 305 | 7.96 | % | 12,693 | 190 | 6.07 | % | ||||||||||||||||
Total interest earning assets | 5,044,924 | 43,094 | 3.46 | % | 4,372,850 | 41,607 | 3.86 | % | ||||||||||||||||
Allowance for credit losses | (61,022 | ) | (59,431 | ) | ||||||||||||||||||||
Non-interest earning assets | 314,932 | 306,261 | ||||||||||||||||||||||
Total average assets | $ | 5,298,834 | $ | 4,619,680 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,115,578 | 259 | 0.09 | % | $ | 943,635 | 294 | 0.13 | % | ||||||||||||||
Savings and money market accounts | 1,517,234 | 342 | 0.09 | % | 1,291,214 | 418 | 0.13 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 167,515 | 97 | 0.23 | % | 171,501 | 256 | 0.61 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 223,842 | 105 | 0.19 | % | 247,416 | 269 | 0.44 | % | ||||||||||||||||
Total interest bearing deposits | 3,024,169 | 803 | 0.11 | % | 2,653,766 | 1,237 | 0.19 | % | ||||||||||||||||
Short-term borrowings | 3 | - | 0.00 | % | 4 | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 82 | 3.23 | % | 10,310 | 79 | 3.11 | % | ||||||||||||||||
Total interest bearing liabilities | 3,034,482 | 885 | 0.12 | % | 2,664,080 | 1,316 | 0.20 | % | ||||||||||||||||
Non-interest bearing deposits | 1,722,597 | 1,469,741 | ||||||||||||||||||||||
Total funding | 4,757,079 | 885 | 0.08 | % | 4,133,821 | 1,316 | 0.13 | % | ||||||||||||||||
Other non-interest bearing liabilities | 76,061 | 56,268 | ||||||||||||||||||||||
Shareholders’ equity | 465,694 | 429,591 | ||||||||||||||||||||||
Total average liabilities and shareholders’ equity | $ | 5,298,834 | $ | 4,619,680 | ||||||||||||||||||||
Net interest income | $ | 42,209 | $ | 40,291 | ||||||||||||||||||||
Interest rate spread | 3.35 | % | 3.66 | % | ||||||||||||||||||||
Net interest margin(4) | 3.39 | % | 3.74 | % |
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 | % |
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 March 31, 2022 compared with 2021 | 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: | Increase (Decrease) Due to: | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Volume | Rate | Net | Volume | Rate | Net | Volume | Rate | Net | |||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 127 | $ | 136 | $ | 263 | $ | (370 | ) | $ | 4,201 | $ | 3,831 | $ | 111 | $ | 5,228 | $ | 5,339 | |||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||||||
Taxable securities | 1,174 | (390 | ) | 784 | 1,272 | 537 | 1,809 | 3,305 | 701 | 4,006 | ||||||||||||||||||||||||||
Non-taxable securities | (119 | ) | 98 | (21 | ) | (57 | ) | 44 | (13 | ) | (127 | ) | 68 | (59 | ) | |||||||||||||||||||||
Total securities | 1,055 | (292 | ) | 763 | 1,214 | 582 | 1,796 | 3,178 | 769 | 3,947 | ||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||
Commercial | 2,146 | 153 | 2,299 | 2,069 | 1,855 | 3,924 | 6,630 | (1,246 | ) | 5,384 | ||||||||||||||||||||||||||
Agricultural | 477 | 180 | 657 | 1,122 | (180 | ) | 942 | 2,384 | 277 | 2,661 | ||||||||||||||||||||||||||
Residential and home equity | 1,499 | (2,769 | ) | (1,270 | ) | 1,625 | (1,647 | ) | (22 | ) | 962 | (425 | ) | 537 | ||||||||||||||||||||||
Construction | (18 | ) | (7 | ) | (25 | ) | (761 | ) | 929 | 168 | 29 | 599 | 628 | |||||||||||||||||||||||
Total real estate | 4,105 | (2,444 | ) | 1,661 | 4,055 | 957 | 5,012 | 10,006 | (796 | ) | 9,210 | |||||||||||||||||||||||||
Commercial & industrial | 664 | 24 | 688 | 775 | 884 | 1,659 | 2,424 | 469 | 2,893 | |||||||||||||||||||||||||||
Agricultural | 525 | (334 | ) | 191 | 278 | 692 | 970 | 978 | 614 | 1,592 | ||||||||||||||||||||||||||
Commercial leases | (507 | ) | 579 | 72 | (210 | ) | 212 | 2 | (429 | ) | 452 | 23 | ||||||||||||||||||||||||
Consumer and other | (16,806 | ) | 14,540 | (2,266 | ) | (12,215 | ) | 10,352 | (1,863 | ) | (16,453 | ) | 10,767 | (5,686 | ) | |||||||||||||||||||||
Total loans | (12,020 | ) | 12,366 | 346 | (7,316 | ) | 13,096 | 5,780 | (3,474 | ) | 11,506 | 8,032 | ||||||||||||||||||||||||
Non-marketable securities | 48 | 67 | 115 | 0 | (35 | ) | (35 | ) | 51 | 35 | 86 | |||||||||||||||||||||||||
Total interest income | (10,790 | ) | 12,277 | 1,487 | (6,472 | ) | 17,844 | 11,372 | (135 | ) | 17,539 | 17,404 | ||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||||||||||||||
Demand | 239 | (274 | ) | (35 | ) | 9 | 143 | 152 | 98 | 56 | 154 | |||||||||||||||||||||||||
Savings and money market accounts | 349 | (425 | ) | (76 | ) | 55 | 75 | 130 | 218 | (175 | ) | 43 | ||||||||||||||||||||||||
Certificates of deposit greater than $250,000 | (6 | ) | (153 | ) | (159 | ) | (10 | ) | (37 | ) | (47 | ) | (21 | ) | (267 | ) | (288 | ) | ||||||||||||||||||
Certificates of deposit less than $250,000 | (24 | ) | (140 | ) | (164 | ) | (11 | ) | (31 | ) | (42 | ) | (49 | ) | (262 | ) | (311 | ) | ||||||||||||||||||
Total interest bearing deposits | 558 | (992 | ) | (434 | ) | 43 | 150 | 193 | 246 | (648 | ) | (402 | ) | |||||||||||||||||||||||
Short-term borrowings | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Subordinated debentures | - | 3 | 3 | - | 56 | 56 | - | 83 | 83 | |||||||||||||||||||||||||||
Total interest expense | 558 | (989 | ) | (431 | ) | 43 | 206 | 249 | 246 | (565 | ) | (319 | ) | |||||||||||||||||||||||
Net interest income | $ | (11,348 | ) | $ | 13,266 | $ | 1,918 | $ | (6,515 | ) | $ | 17,638 | $ | 11,123 | $ | (381 | ) | $ | 18,104 | $ | 17,723 |
Three Months Ended March 31, | 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) | 2022 | 2021 | $ Better / (Worse) | % Better / (Worse) | ||||||||||||||||||||||||||||||||||||
Selected Income Statement Information: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 43,094 | $ | 41,607 | $ | 1,487 | 3.57 | % | $ | 51,713 | $ | 40,341 | $ | 11,372 | 28.19 | % | $ | 140,502 | $ | 123,098 | $ | 17,404 | 14.14 | % | ||||||||||||||||||||||||
Interest expense | 885 | 1,316 | 431 | 32.75 | % | 1,256 | 1,007 | (249 | ) | (24.73 | %) | 3,117 | 3,436 | 319 | 9.28 | % | ||||||||||||||||||||||||||||||||
Net interest income | 42,209 | 40,291 | 1,918 | 4.76 | % | 50,457 | 39,334 | 11,123 | 28.28 | % | 137,385 | 119,662 | 17,723 | 14.81 | % | |||||||||||||||||||||||||||||||||
Provision for credit losses | - | 1,250 | 1,250 | 100.00 | % | 1,500 | - | (1,500 | ) | N/A | 3,000 | 1,250 | (1,750 | ) | (140.00 | %) | ||||||||||||||||||||||||||||||||
Net interest income after provision for credit losses | 42,209 | 39,041 | 3,168 | 8.11 | % | 48,957 | 39,334 | 9,623 | 24.46 | % | 134,385 | 118,412 | 15,973 | 13.49 | % | |||||||||||||||||||||||||||||||||
Non-interest income | 4,312 | 9,535 | (5,223 | ) | -54.78 | % | 1,559 | 4,617 | (3,058 | ) | (66.23 | %) | 9,383 | 16,292 | (6,909 | ) | (42.41 | %) | ||||||||||||||||||||||||||||||
Non-interest expense | 23,788 | 26,363 | 2,575 | 9.77 | % | 24,375 | 20,585 | (3,790 | ) | (18.41 | %) | 71,194 | 67,732 | (3,462 | ) | (5.11 | %) | |||||||||||||||||||||||||||||||
Income before income tax expense | 22,733 | 22,213 | 520 | 2.34 | % | 26,141 | 23,366 | 2,775 | 11.88 | % | 72,574 | 66,972 | 5,602 | 8.36 | % | |||||||||||||||||||||||||||||||||
Income tax expense | 5,675 | 5,500 | (175 | ) | -3.18 | % | 6,605 | 5,864 | (741 | ) | (12.64 | %) | 17,537 | 16,604 | (933 | ) | (5.62 | %) | ||||||||||||||||||||||||||||||
Net income | $ | 17,058 | $ | 16,713 | $ | 345 | 2.06 | % | $ | 19,536 | $ | 17,502 | $ | 2,034 | 11.62 | % | $ | 55,037 | $ | 50,368 | $ | 4,669 | 9.27 | % |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||
Available-for-Sale Securities | ||||||||||||||||
U.S. Treasury notes | $ | 9,996 | $ | 10,089 | $ | 4,941 | $ | 10,089 | ||||||||
U.S. Government-sponsored securities | 5,789 | 6,374 | 4,698 | 6,374 | ||||||||||||
Mortgage-backed securities(1) | 223,901 | 251,120 | 156,453 | 251,120 | ||||||||||||
Collateralized mortgage obligations(1) | 1,544 | 2,436 | 1,458 | 2,436 | ||||||||||||
Corporate securities | 9,835 | - | 9,594 | - | ||||||||||||
Other | 310 | 435 | 310 | 435 | ||||||||||||
Total available-for-sale securities | $ | 251,375 | $ | 270,454 | $ | 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 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||
Held-to-Maturity Securities | ||||||||
Mortgage-backed securities(1) | $ | 695,249 | $ | 596,775 | ||||
Collateralized mortgage obligations(1) | 117,427 | 73,781 | ||||||
Municipal securities | 63,581 | 66,496 | ||||||
Total held-to-maturity securities | $ | 876,257 | $ | 737,052 |
Investment Securities | As of March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | 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 | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 9,996 | 2.36 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 9,996 | 2.36 | % | $ | 4,941 | 2.38 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 4,941 | 2.38 | % | ||||||||||||||||||||||||||||||||||||||||
U.S. Government-sponsored securities | 3 | 2.57 | % | 142 | 2.36 | % | 423 | 1.42 | % | 5,221 | 1.27 | % | 5,789 | 1.30 | % | 7 | 1.74 | % | 81 | 3.97 | % | 436 | 3.01 | % | 4,174 | 2.79 | % | 4,698 | 2.83 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | 1 | 1.39 | % | 26,319 | 2.31 | % | 37,271 | 2.40 | % | 160,310 | 1.67 | % | 223,901 | 1.83 | % | 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 | % | 1,544 | 2.26 | % | 1,544 | 2.30 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 1,458 | 2.35 | % | 1,458 | 2.35 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | 4,932 | 0.68 | % | 4,903 | 0.81 | % | - | 0.00 | % | 9,835 | 0.00 | % | - | 0.00 | % | 4,795 | 1.59 | % | 4,799 | 1.72 | % | - | 0.00 | % | 9,594 | 1.65 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 310 | 0.01 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 310 | 3.31 | % | 310 | 2.99 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 310 | 2.99 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities available-for-sale | $ | 10,310 | 2.29 | % | $ | 31,393 | 2.05 | % | $ | 42,597 | 2.21 | % | $ | 167,075 | 1.66 | % | $ | 251,375 | 1.77 | % | $ | 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 | 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 | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 15,820 | 0.72 | % | $ | 679,429 | 1.80 | % | $ | 695,249 | 1.70 | % | $ | - | 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 | % | 117,427 | 1.17 | % | 117,427 | 1.71 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 82,297 | 1.80 | % | 82,297 | 1.80 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal securities | 908 | 1.41 | % | 7,118 | 2.20 | % | 16,690 | 3.34 | % | 38,865 | 1.22 | % | 63,581 | 3.90 | % | 883 | 4.93 | % | 7,484 | 3.40 | % | 15,000 | 3.43 | % | 37,460 | 3.52 | % | 60,827 | 3.50 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 908 | 1.41 | % | $ | 7,118 | 2.20 | % | $ | 32,510 | 2.06 | % | $ | 835,721 | 1.68 | % | $ | 876,257 | 1.86 | % | $ | 883 | 4.93 | % | $ | 7,484 | 3.40 | % | $ | 28,906 | 2.06 | % | $ | 815,392 | 1.95 | % | $ | 852,665 | 1.97 | % |
Investment Securities | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 5,028 | 2.33 | % | $ | 5,061 | 2.38 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 10,089 | 2.36 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 2 | 1.80 | % | 148 | 2.29 | % | 512 | 1.55 | % | 5,712 | 1.26 | % | 6,374 | 1.30 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 13 | 1.50 | % | 21,155 | 2.36 | % | 50,554 | 2.36 | % | 179,398 | 1.61 | % | 251,120 | 1.83 | % | |||||||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 2,436 | 2.30 | % | 2,436 | 2.30 | % | |||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | |||||||||||||||||||||||||
Other | 435 | 3.31 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 435 | 3.31 | % | |||||||||||||||||||||||||
Total securities available for sale | $ | 5,478 | 2.41 | % | $ | 26,364 | 2.36 | % | $ | 51,066 | 2.35 | % | $ | 187,546 | 1.61 | % | $ | 270,454 | 1.84 | % |
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 | 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 | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities held to maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | - | 0.00 | % | - | 0.00 | % | 10,641 | 0.41 | % | 586,134 | 1.72 | % | 596,775 | 1.70 | % | $ | - | 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 | % | - | 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 | % | 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 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 308 | 1.10 | % | $ | 8,487 | 2.19 | % | $ | 29,074 | 2.32 | % | $ | 699,183 | 1.88 | % | $ | 737,052 | 1.90 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Gross Loans and Leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 1,172,804 | 36.12 | % | $ | 1,167,516 | 35.95 | % | ||||||||
Agricultural | 695,565 | 21.42 | % | 672,830 | 20.72 | % | ||||||||||
Residential and home equity | 359,214 | 11.06 | % | 350,581 | 10.79 | % | ||||||||||
Construction | 204,794 | 6.31 | % | 177,163 | 5.45 | % | ||||||||||
Total real estate | 2,432,377 | 74.91 | % | 2,368,090 | 72.91 | % | ||||||||||
Commercial | 437,199 | 13.47 | % | 427,799 | 13.17 | % | ||||||||||
Agricultural | 251,469 | 7.75 | % | 276,684 | 8.52 | % | ||||||||||
Commercial leases | 92,445 | 2.85 | % | 96,971 | 2.99 | % | ||||||||||
Consumer and other(1) | 33,255 | 1.02 | % | 78,367 | 2.41 | % | ||||||||||
Total gross loans and leases | 3,246,745 | 100.00 | % | 3,247,911 | 100.00 | % |
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 | % |
Loan Contractual Maturity | ||||||||||||||||||||
(Dollars in thousands) | One Year or Less | After One But Within Five Years | After Five Years But Within Fifteen Years | After Fifteen Years | Total | |||||||||||||||
Gross loan and leases: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial | $ | 89,814 | $ | 249,435 | $ | 798,092 | $ | 35,463 | $ | 1,172,804 | ||||||||||
Agricultural | 41,641 | 153,198 | 429,832 | 70,894 | 695,565 | |||||||||||||||
Residential and home equity | 197 | 3,371 | 117,347 | 238,299 | 359,214 | |||||||||||||||
Construction | 140,600 | 63,397 | 797 | - | 204,794 | |||||||||||||||
Total real estate | 272,252 | 469,401 | 1,346,068 | 344,656 | 2,432,377 | |||||||||||||||
Commercial & Industrial | 153,153 | 238,138 | 39,932 | 5,976 | 437,199 | |||||||||||||||
Agricultural | 153,586 | 85,412 | 12,471 | - | 251,469 | |||||||||||||||
Commercial leases | 6,743 | 33,387 | 52,315 | - | 92,445 | |||||||||||||||
Consumer and other(1) | 1,233 | 29,970 | 2,052 | - | 33,255 | |||||||||||||||
Total gross loans and leases | $ | 586,967 | $ | 856,308 | $ | 1,452,838 | $ | 350,632 | $ | 3,246,745 | ||||||||||
Rate Structure for Loans | ||||||||||||||||||||
Fixed Rate | $ | 112,960 | $ | 370,873 | $ | 1,130,743 | $ | 234,582 | $ | 1,849,158 | ||||||||||
Adjustable Rate | 474,007 | 485,435 | 322,095 | 116,050 | 1,397,587 | |||||||||||||||
Total gross loans and leases | $ | 586,967 | $ | 856,308 | $ | 1,452,838 | $ | 350,632 | $ | 3,246,745 |
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 |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||
Non-performing assets: | ||||||||||||||||
Non-accrual loans and leases, not TDRs | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 437 | $ | - | $ | 411 | $ | - | ||||||||
Agricultural | - | 18 | - | 18 | ||||||||||||
Residential and home equity | - | - | - | - | ||||||||||||
Construction | - | - | - | - | ||||||||||||
Total real estate | 437 | 18 | 411 | 18 | ||||||||||||
Commercial & Industrial | - | - | ||||||||||||||
Commercial & industrial | - | - | ||||||||||||||
Agricultural | - | - | - | - | ||||||||||||
Commercial leases | - | - | - | - | ||||||||||||
Consumer and other | - | - | - | - | ||||||||||||
Subtotal | 437 | 18 | 411 | 18 | ||||||||||||
Non-accrual loans and leases, are TDRs | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | - | - | - | - | ||||||||||||
Agricultural | - | 498 | - | 498 | ||||||||||||
Residential and home equity | - | - | - | - | ||||||||||||
Construction | - | - | - | - | ||||||||||||
Total real estate | - | 498 | - | 498 | ||||||||||||
Commercial & Industrial | - | - | ||||||||||||||
Commercial & industrial | - | - | ||||||||||||||
Agricultural | - | - | - | - | ||||||||||||
Commercial leases | - | - | - | - | ||||||||||||
Consumer and other | - | - | - | - | ||||||||||||
Subtotal | - | 498 | - | 498 | ||||||||||||
Total non-performing loans and leases | $ | 437 | $ | 516 | $ | 411 | $ | 516 | ||||||||
Other real estate owned (“OREO”) | $ | 873 | $ | 873 | ||||||||||||
Other real estate owned ("OREO") | $ | 873 | $ | 873 | ||||||||||||
Total non-performing assets | $ | 1,310 | $ | 1,389 | $ | 1,284 | $ | 1,389 | ||||||||
Performing TDRs | $ | 1,603 | $ | 1,824 | $ | 1,325 | $ | 1,824 | ||||||||
Selected ratios: | ||||||||||||||||
Non-performing loans to total loans | 0.01 | % | 0.02 | % | ||||||||||||
Non-performing assets to total assets | 0.02 | % | 0.03 | % |
Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Balance at beginning of year | $ | 61,007 | $ | 58,862 | $ | 61,007 | $ | 58,862 | ||||||||
Provision / (recapture) for credit losses | - | 1,250 | 2,606 | 1,250 | ||||||||||||
Charge-offs: | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | - | - | - | - | ||||||||||||
Agricultural | - | - | - | - | ||||||||||||
Residential and home equity | - | - | - | - | ||||||||||||
Construction | - | - | - | - | ||||||||||||
Total real estate | - | - | - | - | ||||||||||||
Commercial & Industrial | - | - | ||||||||||||||
Commercial & industrial | (324 | ) | - | |||||||||||||
Agricultural | - | - | - | - | ||||||||||||
Commercial leases | - | - | - | - | ||||||||||||
Consumer and other | (9 | ) | (8 | ) | (38 | ) | (33 | ) | ||||||||
Total charge-offs | (9 | ) | (8 | ) | (362 | ) | (33 | ) | ||||||||
Recoveries: | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | - | - | - | - | ||||||||||||
Agricultural | - | - | - | - | ||||||||||||
Residential and home equity | 14 | 32 | 125 | 91 | ||||||||||||
Construction | - | - | - | - | ||||||||||||
Total real estate | 14 | 32 | 125 | 91 | ||||||||||||
Commercial & Industrial | 16 | 29 | ||||||||||||||
Commercial & industrial | 176 | 83 | ||||||||||||||
Agricultural | 2 | 3 | 51 | 29 | ||||||||||||
Commercial leases | - | - | - | - | ||||||||||||
Consumer and other | 2 | 7 | 14 | 21 | ||||||||||||
Total recoveries | 34 | 71 | 366 | 224 | ||||||||||||
Net recoveries / charge-offs | 25 | 63 | 4 | 191 | ||||||||||||
Balance at end of year | $ | 61,032 | $ | 60,175 | ||||||||||||
Balance at end of period | $ | 63,617 | $ | 60,303 | ||||||||||||
Selected financial information: | ||||||||||||||||
Net loans held for investment | $ | 3,237,619 | $ | 3,111,011 | ||||||||||||
Gross loans held for investment | $ | 3,332,472 | $ | 3,151,508 | ||||||||||||
Average loans | 3,196,841 | 3,059,972 | 3,242,195 | 3,063,124 | ||||||||||||
Non-performing loans | 437 | 493 | 411 | 516 | ||||||||||||
Allowance for credit losses to non-performing loans | 13966.13 | % | 12205.88 | % | 15478.59 | % | 11686.63 | % | ||||||||
Net (recoveries)/charge-offs to average loans | 0.00 | % | 0.00 | % | 0.00 | % | (0.01 | )% | ||||||||
Provision for credit losses to average loans | 0.00 | % | 0.04 | % | 0.08 | % | 0.04 | % | ||||||||
Allowance for credit losses to loans held for investment | 1.89 | % | 1.93 | % | 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 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 17,920 | 36.12 | % | $ | 28,536 | 35.95 | % | ||||||||
Agricultural | 14,591 | 21.42 | % | 9,613 | 20.72 | % | ||||||||||
Residential and home equity | 6,759 | 11.06 | % | 2,847 | 10.79 | % | ||||||||||
Construction | 3,777 | 6.31 | % | 1,456 | 5.45 | % | ||||||||||
Total real estate | 43,047 | 74.91 | % | 42,452 | 72.91 | % | ||||||||||
Commercial & Industrial | 10,361 | 13.47 | % | 11,489 | 13.17 | % | ||||||||||
Agricultural | 5,737 | 7.75 | % | 5,465 | 8.52 | % | ||||||||||
Commercial leases | 1,466 | 2.85 | % | 938 | 2.99 | % | ||||||||||
Consumer and other | 421 | 1.02 | % | 663 | 2.41 | % | ||||||||||
Total allowance for credit losses | $ | 61,032 | 100.00 | % | $ | 61,007 | 100.00 | % |
Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | ||||||||||||||||||||||||||||||||||||
Total deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||
Demand | $ | 1,115,578 | 259 | 0.09 | % | $ | 943,635 | 294 | 0.13 | % | $ | 1,111,513 | 1,023 | 0.12 | % | $ | 1,002,267 | $ | 869 | 0.12 | % | |||||||||||||||||||||||||||
Savings and Money Market | 1,517,234 | 342 | 0.09 | % | 1,291,214 | 418 | 0.13 | % | ||||||||||||||||||||||||||||||||||||||||
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 | 167,515 | 97 | 0.23 | % | 171,501 | 256 | 0.61 | % | 163,148 | 299 | 0.25 | % | 169,545 | 587 | 0.46 | % | ||||||||||||||||||||||||||||||||
Certificates of deposit less than $250,000 | 223,842 | 105 | 0.19 | % | 247,416 | 269 | 0.44 | % | 218,302 | 297 | 0.18 | % | 239,185 | 608 | 0.34 | % | ||||||||||||||||||||||||||||||||
Total interest bearing deposits | 3,024,169 | 803 | 0.11 | % | 2,653,766 | 1,237 | 0.19 | % | ||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 3,043,297 | 2,798 | 0.12 | % | 2,747,823 | 3,200 | 0.16 | % | ||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 1,722,597 | 1,469,741 | 1,740,859 | 1,567,089 | ||||||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 4,746,766 | $ | 803 | 0.07 | % | $ | 4,123,507 | $ | 1,237 | 0.12 | % | $ | 4,784,156 | $ | 2,798 | 0.08 | % | $ | 4,314,912 | $ | 3,200 | 0.10 | % |
March 31, | December 31, | September 30, | December 31, | |||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Deposits greater than $250,000 | $ | 2,860,003 | $ | 2,708,576 | $ | 2,990,165 | $ | 2,708,576 | ||||||||
Certificates of deposit greater $250,000, by maturity: | ||||||||||||||||
Certificates of deposit greater than $250,000, by maturity: | ||||||||||||||||
Less than 3 months | 48,962 | 59,591 | 58,384 | 59,591 | ||||||||||||
3 months to 6 months | 48,130 | 37,182 | 38,722 | 37,182 | ||||||||||||
6 months to 12 months | 61,890 | 59,945 | 43,161 | 59,945 | ||||||||||||
More than 12 months | 9,881 | 12,147 | 11,875 | 12,147 | ||||||||||||
Total Time Deposits greater than $250,000 | $ | 168,863 | $ | 168,865 | ||||||||||||
Total certificates of deposit greater than $250,000 | $ | 152,142 | $ | 168,865 | ||||||||||||
Total deposits greater than $250,000 | $ | 3,028,866 | $ | 2,877,441 | $ | 3,142,307 | $ | 2,877,441 |
(Dollars in thousands) | Basel III Regulatory Well Capitalized Requirement | March 31, 2022 | December 31, 2021 | 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 | 11.63 | % | 11.68 | % | N/A | 4.50 | % | 11.82 | % | 11.68 | % | ||||||||||||||||
Tier 1 capital to risk-weighted assets | N/A | 11.88 | % | 11.94 | % | N/A | 6.00 | % | 12.06 | % | 11.94 | % | ||||||||||||||||
Risk-based capital to risk-weighted assets | N/A | 13.14 | % | 13.19 | % | N/A | 8.00 | % | 13.32 | % | 13.19 | % | ||||||||||||||||
Tier 1 leverage capital ratio | N/A | 8.45 | % | 8.92 | % | N/A | 4.00 | % | 9.12 | % | 8.92 | % | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||||||
CET1 capital to risk-weighted assets | 6.50 | % | 11.87 | % | 11.91 | % | 6.50 | % | 4.50 | % | 12.04 | % | 11.91 | % | ||||||||||||||
Tier 1 capital to risk-weighted assets | 8.00 | % | 11.87 | % | 11.91 | % | 8.00 | % | 6.00 | % | 12.04 | % | 11.91 | % | ||||||||||||||
Risk-based capital to risk-weighted assets | 10.00 | % | 13.12 | % | 13.17 | % | 10.00 | % | 8.00 | % | 13.30 | % | 13.17 | % | ||||||||||||||
Tier 1 leverage capital ratio | 5.00 | % | 8.94 | % | 8.91 | % | 5.00 | % | 4.00 | % | 9.12 | % | 8.91 | % |
Amount of Commitment Expiration per Period | 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 | Total Committed Amount | Less than One Year | One to Three Years | Three to Five Years | After Five Years | ||||||||||||||||||||||||||||||
Off-balance sheet commitments | ||||||||||||||||||||||||||||||||||||||||
Commitments to extend credit | $ | 987,423 | $ | 387,129 | $ | 436,860 | $ | 19,049 | $ | 144,385 | $ | 1,128,340 | $ | 401,604 | $ | 477,113 | $ | 46,626 | $ | 202,997 | ||||||||||||||||||||
Standby letters of credit | 16,250 | 6,964 | 6,040 | 2,970 | 276 | 16,629 | 10,403 | 4,326 | 1,470 | 430 | ||||||||||||||||||||||||||||||
Performance guarantees | 191 | 71 | 25 | 2 | 93 | |||||||||||||||||||||||||||||||||||
Total off-balance sheet commitments | $ | 1,003,864 | $ | 394,164 | $ | 442,925 | $ | 22,021 | $ | 144,754 | $ | 1,144,969 | $ | 412,007 | $ | 481,439 | $ | 48,096 | $ | 203,427 |
March 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Total Credit Line Limit | Current Credit Line Available | Outstanding Amount | Remaining Credit Line Available | Value of Collateral Pledged | Total Credit Line Limit | Current Credit Line Available | Outstanding Amount | Remaining Credit Line Available | Value of Collateral Pledged | ||||||||||||||||||||||||||||||
Additional liquidity sources: | ||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank | $ | 815,060 | $ | 815,060 | $ | - | $ | 815,060 | $ | 1,154,080 | $ | 766,011 | $ | 766,011 | $ | - | $ | 766,011 | $ | 1,183,540 | ||||||||||||||||||||
Federal Reserve BIC | $ | 664,437 | $ | 664,437 | $ | - | $ | 664,437 | $ | 860,206 | 657,350 | 657,350 | - | 657,350 | 890,564 | |||||||||||||||||||||||||
FHLB Fed Funds | $ | 18,000 | $ | 18,000 | $ | - | $ | 18,000 | $ | - | 18,000 | 18,000 | - | 18,000 | - | |||||||||||||||||||||||||
US Bank Fed Funds | $ | 35,000 | $ | 35,000 | $ | - | $ | 35,000 | $ | - | 35,000 | 35,000 | - | 35,000 | - | |||||||||||||||||||||||||
MUFG Union Bank Fed Funds | $ | 15,000 | $ | 15,000 | $ | - | $ | 15,000 | $ | - | 15,000 | 15,000 | - | 15,000 | - | |||||||||||||||||||||||||
PCBB Fed Funds | $ | 50,000 | $ | 50,000 | $ | - | $ | 50,000 | $ | - | 50,000 | 50,000 | - | 50,000 | - | |||||||||||||||||||||||||
Total additional liquidity sources | $ | 1,597,497 | $ | 1,597,497 | $ | - | $ | 1,597,497 | $ | 2,014,286 | $ | 1,541,361 | $ | 1,541,361 | $ | - | $ | 1,541,361 | $ | 2,074,104 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
(a) The following documents are filed as a part of this Quarterly Report on Form 10-Q: |
(1) Financial Statements and |
(2) Financial Statement schedules required to be filed by Item 1 of this Quarterly Report on Form 10-Q. |
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.* | |
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH | Inline XBRL Taxonomy Extension Schema 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: | /s/ Kent A. Steinwert |
Kent A. Steinwert | |
Director, Chairman, President and Chief Executive Officer (Principal Executive Officer) |
Date: | /s/ Stephen W. Haley |
Stephen W. Haley | |
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |