Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FARMERS & MERCHANTS BANCORP | |
Entity Central Index Key | 1,085,913 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 788,982 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Cash and Cash Equivalents: | |||
Cash and Due from Banks | $ 41,595 | $ 42,375 | $ 34,293 |
Interest Bearing Deposits with Banks | 8,705 | 34,750 | 4,923 |
Total Cash and Cash Equivalents | 50,300 | 77,125 | 39,216 |
Investment Securities: | |||
Available-for-Sale | 344,728 | 366,542 | 336,526 |
Held-to-Maturity | 66,257 | 63,863 | 69,441 |
Total Investment Securities | 410,985 | 430,405 | 405,967 |
Loans & leases | 1,910,270 | 1,712,244 | 1,615,771 |
Less: Allowance for Credit Losses | 39,090 | 35,401 | 34,267 |
Loans & Leases, Net | 1,871,180 | 1,676,843 | 1,581,504 |
Premises and Equipment, Net | 26,856 | 25,821 | 24,927 |
Bank Owned Life Insurance | 55,418 | 53,990 | 53,514 |
Interest Receivable and Other Assets | 85,332 | 96,367 | 92,541 |
Total Assets | 2,500,071 | 2,360,551 | 2,197,669 |
Deposits: | |||
Demand | 603,430 | 610,133 | 516,093 |
Interest Bearing Transaction | 373,193 | 341,397 | 326,368 |
Savings and Money Market | 672,052 | 644,260 | 614,137 |
Time | 483,967 | 468,283 | 419,615 |
Total Deposits | 2,132,642 | 2,064,073 | 1,876,213 |
Federal Home Loan Bank Advances | 5,500 | 0 | 36,000 |
Subordinated Debentures | 10,310 | 10,310 | 10,310 |
Interest Payable and Other Liabilities | 100,495 | 52,990 | 47,910 |
Total Liabilities | 2,248,947 | 2,127,373 | 1,970,433 |
Shareholders' Equity | |||
Preferred Stock: No Par Value, 1,000,000 Shares Authorized, None Issued or Outstanding | 0 | 0 | 0 |
Common Stock: Par Value $0.01, 7,500,000 Shares Authorized, 788,982, 784,082 and 777,882 Shares Issued and Outstanding at September 30, 2015, December 31, 2014 and September 30, 2014, Respectively | 8 | 8 | 8 |
Additional Paid-In Capital | 80,217 | 77,804 | 75,014 |
Retained Earnings | 167,996 | 152,833 | 151,268 |
Accumulated Other Comprehensive Income | 2,903 | 2,533 | 946 |
Total Shareholders' Equity | 251,124 | 233,178 | 227,236 |
Total Liabilities and Shareholders' Equity | $ 2,500,071 | $ 2,360,551 | $ 2,197,669 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Shareholders' Equity | |||
Preferred Stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred Stock, authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred Stock, issued (in shares) | 0 | 0 | 0 |
Preferred Stock, outstanding (in shares) | 0 | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock, authorized (in shares) | 7,500,000 | 7,500,000 | 7,500,000 |
Common Stock, issued (in shares) | 788,982 | 784,082 | 777,882 |
Common Stock, outstanding (in shares) | 788,982 | 784,082 | 777,882 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Income | ||||
Interest and Fees on Loans & Leases | $ 20,915 | $ 18,166 | $ 59,648 | $ 51,178 |
Interest on Deposits with Banks | 36 | 5 | 159 | 110 |
Interest on Investment Securities: | ||||
Taxable | 1,574 | 1,849 | 4,742 | 6,073 |
Exempt from Federal Tax | 513 | 594 | 1,538 | 1,758 |
Total Interest Income | 23,038 | 20,614 | 66,087 | 59,119 |
Interest Expense | ||||
Deposits | 777 | 621 | 2,243 | 1,819 |
Borrowed Funds | 0 | 5 | 0 | 5 |
Subordinated Debentures | 83 | 82 | 244 | 242 |
Total Interest Expense | 860 | 708 | 2,487 | 2,066 |
Net Interest Income | 22,178 | 19,906 | 63,600 | 57,053 |
Provision for Credit Losses | 0 | 0 | 650 | 0 |
Net Interest Income After Provision for Credit Losses | 22,178 | 19,906 | 62,950 | 57,053 |
Non-Interest Income | ||||
Service Charges on Deposit Accounts | 840 | 1,022 | 2,603 | 2,944 |
Net Gain on Sale of Investment Securities | 266 | 4 | 272 | 38 |
Increase in Cash Surrender Value of Life Insurance | 485 | 477 | 1,428 | 1,405 |
Debit Card and ATM Fees | 808 | 797 | 2,389 | 2,322 |
Net Gain (Loss) on Deferred Compensation Investments | 224 | (37) | 773 | 1,493 |
Other | 1,087 | 657 | 3,735 | 1,823 |
Total Non-Interest Income | 3,710 | 2,920 | 11,200 | 10,025 |
Non-Interest Expense | ||||
Salaries and Employee Benefits | 9,980 | 9,336 | 29,645 | 26,710 |
Net Gain (Loss) on Deferred Compensation Investments | 224 | (37) | 773 | 1,493 |
Occupancy | 757 | 724 | 2,142 | 1,981 |
Equipment | 786 | 714 | 2,294 | 2,117 |
FDIC Insurance | 302 | 264 | 883 | 778 |
Other | 2,439 | 1,541 | 5,730 | 4,137 |
Total Non-Interest Expense | 14,488 | 12,542 | 41,467 | 37,216 |
Income Before Income Taxes | 11,400 | 10,284 | 32,683 | 29,862 |
Provision for Income Taxes | 4,360 | 3,852 | 12,491 | 11,044 |
Net Income | $ 7,040 | $ 6,432 | $ 20,192 | $ 18,818 |
Basic Earnings Per Common Share (in dollars per share) | $ 8.96 | $ 8.27 | $ 25.70 | $ 24.19 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net Income | $ 7,040 | $ 6,432 | $ 20,192 | $ 18,818 |
Other Comprehensive Income (Loss) | ||||
Change in Net Unrealized Gain (Loss) on Available-for-Sale Securities | 2,460 | (1,752) | 910 | 5,929 |
Deferred Tax Benefit (Expense) Related to Unrealized Gains | (1,033) | 736 | (382) | (2,493) |
Reclassification Adjustment for Realized Gains on Available-for-Sale Securities Included in Net Income | (266) | (4) | (272) | (38) |
Deferred Tax Benefit Related to Reclassification Adjustment | 111 | 2 | 114 | 16 |
Change in Net Unrealized Gain (Loss) on Available-for-Sale Securities, Net of Tax | 1,272 | (1,018) | 370 | 3,414 |
Total Other Comprehensive (Loss) Income | 1,272 | (1,018) | 370 | 3,414 |
Comprehensive Income | $ 8,312 | $ 5,414 | $ 20,562 | $ 22,232 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), net [Member] | Total |
Balance at Dec. 31, 2013 | $ 8 | $ 75,014 | $ 137,350 | $ (2,468) | $ 209,904 |
Balance (in shares) at Dec. 31, 2013 | 777,882 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | $ 0 | 0 | 18,818 | 0 | 18,818 |
Cash Dividends Declared on Common Stock | 0 | 0 | (4,900) | 0 | (4,900) |
Change in Net Unrealized Gain (Loss) on Securities Available-for-Sale, Net of Tax | 0 | 0 | 0 | 3,414 | 3,414 |
Balance at Sep. 30, 2014 | $ 8 | 75,014 | 151,268 | 946 | $ 227,236 |
Balance (in shares) at Sep. 30, 2014 | 777,882 | 777,882 | |||
Balance at Dec. 31, 2014 | $ 8 | 77,804 | 152,833 | 2,533 | $ 233,178 |
Balance (in shares) at Dec. 31, 2014 | 784,082 | 784,082 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | $ 0 | 0 | 20,192 | 0 | $ 20,192 |
Cash Dividends Declared on Common Stock | 0 | 0 | (5,029) | 0 | (5,029) |
Issuance of Common Stock | $ 0 | 2,413 | 0 | 0 | 2,413 |
Issuance of Common Stock (in shares) | 4,900 | ||||
Change in Net Unrealized Gain (Loss) on Securities Available-for-Sale, Net of Tax | $ 0 | 0 | 0 | 370 | 370 |
Balance at Sep. 30, 2015 | $ 8 | $ 80,217 | $ 167,996 | $ 2,903 | $ 251,124 |
Balance (in shares) at Sep. 30, 2015 | 788,982 | 788,982 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash Dividends Declared per Share of Common Stock (in dollars per share) | $ 6.40 | $ 6.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities: | ||
Net Income | $ 20,192 | $ 18,818 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Credit Losses | 650 | 0 |
Depreciation and Amortization | 1,184 | 991 |
Net Amortization of Investment Security Premiums & Discounts | 1,163 | 1,249 |
Net Gain on Sale of Investment Securities | (272) | (38) |
Net Gain on Sale of Property & Equipment | (392) | (15) |
Net Change in Operating Assets & Liabilities: | ||
Net Increase in Interest Receivable and Other Assets | (1,245) | (5,984) |
Net Increase (Decrease) in Interest Payable and Other Liabilities | 60,303 | (258) |
Net Cash Provided by Operating Activities | 81,583 | 14,763 |
Investing Activities: | ||
Purchase of Investment Securities Available-for-Sale | (134,407) | (65,637) |
Proceeds from Sold, Matured or Called Securities Available-for-Sale | 156,214 | 138,298 |
Purchase of Investment Securities Held-to-Maturity | (12,015) | (15,660) |
Proceeds from Matured or Called Securities Held-to-Maturity | 9,574 | 14,711 |
Net Loans & Leases Paid, Originated or Acquired | (198,093) | (227,739) |
Principal Collected on Loans & Leases Previously Charged Off | 3,106 | 197 |
Additions to Premises and Equipment | (2,498) | (3,045) |
Proceeds from Sale of Property & Equipment | 671 | 29 |
Net Cash Used by Investing Activities | (177,448) | (158,846) |
Financing Activities: | ||
Net Increase in Deposits | 68,569 | 68,522 |
Net Change in Other Borrowings | 5,500 | 36,000 |
Cash Dividends | (5,029) | (4,900) |
Net Cash Provided by Financing Activities | 69,040 | 99,622 |
Decrease in Cash and Cash Equivalents | (26,825) | (44,461) |
Cash and Cash Equivalents at Beginning of Period | 77,125 | 83,677 |
Cash and Cash Equivalents at End of Period | 50,300 | 39,216 |
Supplementary Data | ||
Cash Payments Made for Income Taxes | 5,175 | 10,900 |
Issuance of Common Stock to the Bank's Non-Qualified Retirement Plans | 2,413 | 0 |
Interest Paid | $ 2,275 | $ 2,103 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Farmers & Merchants Bancorp (the “Company”) was organized March 10, 1999. Primary operations are related to traditional banking activities through its subsidiary Farmers & Merchants Bank of Central California (the “Bank”), which was established in 1916. The Bank’s wholly owned subsidiaries include Farmers & Merchants Investment Corporation and Farmers/Merchants Corp. Farmers & Merchants Investment Corporation has been dormant since 1991. Farmers/Merchants Corp. acts as trustee on deeds of trust originated by the Bank. The Company’s other subsidiaries include F & M Bancorp, Inc. and FMCB Statutory Trust I. F & M Bancorp, Inc. was created in March 2002 to protect the name F & M Bank. During 2002 the Company completed a fictitious name filing in California to begin using the streamlined name “F & M Bank” as part of a larger effort to enhance the Company’s image and build brand name recognition. In December 2003 the Company formed a wholly owned subsidiary, FMCB Statutory Trust I. FMCB Statutory Trust I is a non-consolidated subsidiary per Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”) and was formed for the sole purpose of issuing Trust Preferred Securities and related subordinated debentures. The accounting and reporting policies of the Company conform to U.S. GAAP and prevailing practice within the banking industry. The following is a summary of the significant accounting and reporting policies used in preparing the consolidated financial statements. Basis of Presentation The accompanying consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America for financial information. These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting on Form 10-Q. Accordingly, certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted. The Company believes that the disclosures are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the three-month and nine-month periods ended September 30, 2015 may not necessarily be indicative of future operating results. The accompanying consolidated financial statements include the accounts of the Company and the Company’s wholly owned subsidiaries, F & M Bancorp, Inc. and the Bank, along with the Bank’s wholly owned subsidiaries, Farmers & Merchants Investment Corporation and Farmers/Merchants Corp. Significant inter-company transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Certain amounts in the prior years' consolidated financial statements and related footnote disclosures have been reclassified to conform to the current-year presentation. These reclassifications had no effect on previously reported net income or total shareholders’ equity. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the periods presented. Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, the Company has defined cash and cash equivalents as those amounts included in the balance sheet captions Cash and Due from Banks, Interest Bearing Deposits with Banks, Federal Funds Sold and Securities Purchased Under Agreements to Resell. For these instruments, the carrying amount is a reasonable estimate of fair value. Investment Securities Investment securities are classified at the time of purchase as held-to-maturity (“HTM”) if it is management’s intent and the Company has the ability to hold the securities until maturity. These securities are carried at cost, adjusted for amortization of premium and accretion of discount using a level yield of interest over the estimated remaining period until maturity. Losses, reflecting a decline in value judged by the Company to be other than temporary, are recognized in the period in which they occur. Securities are classified as available-for-sale (“AFS”) if it is management’s intent, at the time of purchase, to hold the securities for an indefinite period of time and/or to use the securities as part of the Company’s asset/liability management strategy. These securities are reported at fair value with aggregate unrealized gains or losses excluded from income and included as a separate component of shareholders’ equity, net of related income taxes. Fair values are based on quoted market prices or broker/dealer price quotations on a specific identification basis. Gains or losses on the sale of these securities are computed using the specific identification method. Trading securities, if any, are acquired for short-term appreciation and are recorded in a trading portfolio and are carried at fair value, with unrealized gains and losses recorded in non-interest income. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement; and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, the Company compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. Loans & Leases Loans & leases are reported at the principal amount outstanding net of unearned discounts and deferred loan & lease fees and costs. Interest income on loans & leases is accrued daily on the outstanding balances using the simple interest method. Loan & lease origination fees are deferred and recognized over the contractual life of the loan or lease as an adjustment to the yield. Loans & leases are placed on non-accrual status when the collection of principal or interest is in doubt or when they become past due for 90 days or more unless they are both well-secured and in the process of collection. For this purpose a loan or lease is considered well-secured if it is collateralized by property having a net realizable value in excess of the amount of the loan or lease or is guaranteed by a financially capable party. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and charged against current income; thereafter, interest income is recognized only as it is collected in cash. Additionally, cash would be applied to principal if all principal was not expected to be collected. Loans & leases placed on non-accrual status are returned to accrual status when the loans or leases are paid current as to principal and interest and future payments are expected to be made in accordance with the contractual terms of the loan or lease. A loan or lease is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Impaired loans or leases are either: (1) non-accrual loans & leases; or (2) restructured loans & leases that are still accruing interest. Loans or leases determined to be impaired are individually evaluated for impairment. When a loan or lease is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan or lease's effective interest rate, except that as a practical expedient, it may measure impairment based on a loan's or lease’s observable market price, or the fair value of the collateral if the loan or lease is collateral dependent. A loan or lease is collateral dependent if the repayment of the loan or lease is expected to be provided solely by the underlying collateral. A restructuring of a loan or lease constitutes a troubled debt restructuring (“TDR”) if the Company for economic or legal reasons related to the borrower’s (the term “borrower” is used herein to describe a customer who has entered into either a loan or lease transaction) financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans & leases typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. If the restructured loan or lease was current on all payments at the time of restructure and management reasonably expects the borrower will continue to perform after the restructure, management may keep the loan or lease on accrual. Loans & leases that are on nonaccrual status at the time they become TDR, remain on nonaccrual status until the borrower demonstrates a sustained period of performance, which the Company generally believes to be six consecutive months of payments, or equivalent. A loan or lease can be removed from TDR status if it was restructured at a market rate in a prior calendar year and is currently in compliance with its modified terms. However, these loans or leases continue to be classified as impaired and are individually evaluated for impairment as described above. Generally, the Company will not restructure loans or leases for borrowers unless: (1) the existing loan or lease is brought current as to principal and interest payments; and (2) the restructured loan or lease can be underwritten to reasonable underwriting standards. If these standards are not met other actions will be pursued (e.g., foreclosure) to collect outstanding loan or lease amounts. After restructure a determination is made whether the loan or lease will be kept on accrual status based upon the underwriting and historical performance of the restructured credit. Allowance for Credit Losses The allowance for credit losses is an estimate of probable incurred credit losses inherent in the Company's loan & lease portfolio as of the balance sheet date. The allowance is established through a provision for credit losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan & lease growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of three primary components: specific reserves related to impaired loans & leases; general reserves for inherent losses related to loans & leases that are not impaired; and an unallocated component that takes into account the imprecision in estimating and allocating allowance balances associated with macro factors. The determination of the general reserve for loans & leases that are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, qualitative factors that include economic trends in the Company's service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company's underwriting policies, the character of the loan & lease portfolio, and probable losses inherent in the portfolio taken as a whole. The Company maintains a separate allowance for each portfolio segment (loan & lease type). These portfolio segments include: (1) commercial real estate; (2) agricultural real estate; (3) real estate construction (including land and development loans); (4) residential 1 st The Company assigns a risk rating to all loans & leases and periodically performs detailed reviews of all such loans & leases over a certain threshold to identify credit risks and assess overall collectability. For smaller balance loans & leases, such as consumer and residential real estate, a credit grade is established at inception, and then updated only when the loan or lease becomes contractually delinquent or when the borrower requests a modification. For larger balance loans, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans & leases. These credit quality indicators are used to assign a risk rating to each individual loan or lease. These risk ratings are also subject to examination by independent specialists engaged by the Company. The risk ratings can be grouped into five major categories, defined as follows: Pass – A pass loan or lease is a strong credit with no existing or known potential weaknesses deserving of management's close attention. Special Mention – A special mention loan or lease has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company's credit position at some future date. Special mention loans & leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard – A substandard loan or lease is not adequately protected by the current financial condition and paying capacity of the borrower or the value of the collateral pledged, if any. Loans or leases classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well defined weaknesses include a project's lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project's failure to fulfill economic expectations. Doubtful – Loss – Loans or leases classified as loss are considered uncollectible. Once a loan or lease becomes delinquent and repayment becomes questionable, the Company will address collateral shortfalls with the borrower and attempt to obtain additional collateral. If this is not forthcoming and payment in full is unlikely, the Company will estimate its probable loss and immediately charge-off some or all of the balance. The general reserve component of the allowance for credit losses also consists of reserve factors that are based on management's assessment of the following for each portfolio segment: (1) inherent credit risk; (2) historical losses; and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below: Commercial Real Estate – Commercial real estate mortgage loans are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations. Real Estate Construction – Real estate construction loans, including land loans, are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. A major risk arises from the necessity to complete projects within specified cost and time lines. Trends in the construction industry significantly impact the credit quality of these loans, as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects. Commercial – These loans are generally considered to possess a moderate inherent risk of loss because they are shorter-term; typically made to relationship customers; generally underwritten to existing cash flows of operating businesses; and may be collateralized by fixed assets, inventory and/or accounts receivable. Debt coverage is provided by business cash flows and economic trends influenced by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Agricultural Real Estate and Agricultural – These loans are generally considered to possess a moderate inherent risk of loss since they are typically made to relationship customers and are secured by crop production, livestock and related real estate. These loans are vulnerable to two risk factors that are largely outside the control of Company and borrowers: commodity prices and weather conditions. Leases – Equipment leases are generally considered to possess a moderate inherent risk of loss. As Lessor, the Company is subject to both the credit risk of the borrower and the residual value risk of the equipment. Credit risks are underwritten using the same credit criteria the Company would use when making an equipment term loan. Residual value risk is managed through the use of qualified, independent appraisers that establish the residual values the Company uses in structuring a lease. Residential 1st Mortgages and Home Equity Lines and Loans – These loans are generally considered to possess a low inherent risk of loss, although this is not always true as evidenced by the correction in residential real estate values that occurred between 2007 and 2012. The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower's ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers' capacity to repay their obligations may be deteriorating. Consumer & Other – A consumer installment loan portfolio is usually comprised of a large number of small loans scheduled to be amortized over a specific period. Most installment loans are made for consumer purchases. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers' capacity to repay their obligations may be deteriorating. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company's and Bank's regulators, including the Federal Reserve Bank (“FRB”), the California Department of Business Oversight (“DBO”) and the Federal Deposit Insurance Corporation (“FDIC”), as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations. Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates anticipated losses using historical data and utilization assumptions. The allowance for off-balance-sheet commitments is included in Interest Payable and Other Liabilities on the Company’s Consolidated Balance Sheet. Premises and Equipment Premises, equipment, and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation is computed principally by the straight line method over the estimated useful lives of the assets. Estimated useful lives of buildings range from 30 to 40 years, and for furniture and equipment from 3 to 7 years. Leasehold improvements are amortized over the lesser of the terms of the respective leases, or their useful lives, which are generally 5 to 10 years. Remodeling and capital improvements are capitalized while maintenance and repairs are charged directly to occupancy expense. Other Real Estate Other real estate, which is included in other assets, is expected to be sold and is comprised of properties no longer utilized for business operations and property acquired through foreclosure in satisfaction of indebtedness. These properties are recorded at fair value less estimated selling costs upon acquisition. Revised estimates to the fair value less cost to sell are reported as adjustments to the carrying amount of the asset, provided that such adjusted value is not in excess of the carrying amount at acquisition. Initial losses on properties acquired through full or partial satisfaction of debt are treated as credit losses and charged to the allowance for credit losses at the time of acquisition. Subsequent declines in value from the recorded amounts, routine holding costs, and gains or losses upon disposition, if any, are included in non-interest expense as incurred. Income Taxes The Company uses the liability method of accounting for income taxes. This method results in the recognition of deferred tax assets and liabilities that are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The deferred provision for income taxes is the result of the net change in the deferred tax asset and deferred tax liability balances during the year. This amount combined with the current taxes payable or refundable results in the income tax expense for the current year. The Company follows the standards set forth in the “Income Taxes” topic of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest expense and penalties associated with unrecognized tax benefits, if any, are included in the provision for income taxes in the Unaudited Consolidated Statements of Income. Dividends and Basic Earnings Per Common Share The Company’s common stock is not traded on any exchange. The shares are primarily held by local residents and are not actively traded. Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. There are no common stock equivalent shares. Therefore, there is no presentation of diluted earnings per common share. See Note 6. Segment Reporting The “Segment Reporting” topic of the FASB ASC requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a community bank, which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized around discernible lines of business and prefers to work as an integrated unit to customize solutions for its customers, with business line emphasis and product offerings changing over time as needs and demands change. Therefore, the Company reports one segment. Derivative Instruments and Hedging Activities The “Derivatives and Hedging” topic of the FASB ASC establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. All derivatives, whether designated in hedging relationships or not, are required to be recorded on the balance sheet at fair value. Changes in the fair value of those derivatives are accounted for depending on the intended use of the derivative and the resulting designation under specified criteria. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, designed to minimize interest rate risk, the effective portions of the change in the fair value of the derivative are recorded in other comprehensive income (loss), net of related income taxes. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. From time to time, the Company utilizes derivative financial instruments such as interest rate caps, floors, swaps, and collars. These instruments are purchased and/or sold to reduce the Company’s exposure to changing interest rates. The Company marks to market the value of its derivative financial instruments and reflects gain or loss in earnings in the period of change or in other comprehensive income (loss). The Company was not utilizing any derivative instruments as of or for the periods ended September 30, 2015, December 31, 2014 or September 30, 3014. Comprehensive Income The “Comprehensive Income” topic of the FASB ASC establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Other comprehensive income (loss) refers to revenues, expenses, gains, and losses that U.S. GAAP recognize as changes in value to an enterprise but are excluded from net income. For the Company, comprehensive income includes net income and changes in fair value of its available-for-sale investment securities. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investment Securities [Abstract] | |
Investment Securities | 2. Investment Securities The amortized cost, fair values, and unrealized gains and losses of the securities available-for-sale ( in thousands): Amortized Gross Unrealized Fair/Book September 30, 2015 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 41,448 $ 65 $ - $ 41,513 US Treasury Notes 30,069 231 - 30,300 Mortgage Backed Securities (1) 251,483 5,024 312 256,195 Corporate Securities 16,235 - - 16,235 Other 485 - - 485 Total $ 339,720 $ 5,320 $ 312 $ 344,728 Amortized Gross Unrealized Fair/Book December 31, 2014 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 78,051 $ 61 $ 3 $ 78,109 Mortgage Backed Securities (1) 283,636 4,969 657 287,948 Other 485 - - 485 Total $ 362,172 $ 5,030 $ 660 $ 366,542 Amortized Gross Unrealized Fair/Book September 30, 2014 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 13,220 $ 141 $ - $ 13,361 Mortgage Backed Securities (1) 321,187 3,936 2,443 322,680 Other 485 - - 485 Total $ 334,892 $ 4,077 $ 2,443 $ 336,526 (1) The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity (in thousands): Book Gross Unrealized Fair September 30, 2015 Value Gains Losses Value Obligations of States and Political Subdivisions $ 64,134 $ 658 $ 26 $ 64,766 Other 2,123 - - 2,123 Total $ 66,257 $ 658 $ 26 $ 66,889 Book Gross Unrealized Fair December 31, 2014 Value Gains Losses Value Obligations of States and Political Subdivisions $ 61,716 $ 782 $ 10 $ 62,488 Other 2,147 - - 2,147 Total $ 63,863 $ 782 $ 10 $ 64,635 Book Gross Unrealized Fair September 30, 2014 Value Gains Losses Value Obligations of States and Political Subdivisions $ 67,206 $ 725 $ 17 $ 67,914 Other 2,235 - - 2,235 Total $ 69,441 $ 725 $ 17 $ 70,149 Fair values are based on quoted market prices or dealer quotes. If a quoted market price or dealer quote is not available, fair value is estimated using quoted market prices for similar securities. The amortized cost and estimated fair values of investment securities at September 30, 2015 by contractual maturity are shown in the following table (in thousands): Available-for-Sale Held-to-Maturity September 30, 2015 Amortized Cost Fair/Book Value Book Value Fair Value Within one year $ 26,719 $ 26,722 $ 2,124 $ 2,123 After one year through five years 61,518 61,811 15,386 15,462 After five years through ten years - - 9,286 9,382 After ten years - - 39,461 39,922 88,237 88,533 66,257 66,889 Investment securities not due at a single maturity date: Mortgage Backed Securities 251,483 256,195 - - Total $ 339,720 $ 344,728 $ 66,257 $ 66,889 Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. The following tables show those investments with gross unrealized losses and their market value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at the dates indicated (in thousands) Less Than 12 Months 12 Months or More Total September 30, 2015 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale Mortgage Backed Securities $ 36,898 $ 256 $ 7,593 $ 56 $ 44,491 $ 312 Total $ 36,898 $ 256 $ 7,593 $ 56 $ 44,491 $ 312 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 1,991 $ 26 $ - $ - $ 1,991 $ 26 Total $ 1,991 $ 26 $ - $ - $ 1,991 $ 26 Less Than 12 Months 12 Months or More Total December 31, 2014 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale Government Agency & Government-Sponsored Entities $ 66,980 $ 3 $ - $ - $ 66,980 $ 3 Mortgage Backed Securities 14,487 151 33,574 506 48,061 657 Total $ 81,467 $ 154 $ 33,574 $ 506 $ 115,041 $ 660 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 849 $ 5 $ 876 $ 5 $ 1,725 $ 10 Total $ 849 $ 5 $ 876 $ 5 $ 1,725 $ 10 Less Than 12 Months 12 Months or More Total September 30, 2014 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale Mortgage Backed Securities $ 62,825 $ 240 $ 64,968 $ 2,203 127,793 $ 2,443 Total $ 62,825 $ 240 $ 64,968 $ 2,203 $ 127,793 $ 2,443 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 1,943 $ 11 $ 2,556 $ 6 $ 4,499 $ 17 Total $ 1,943 $ 11 $ 2,556 $ 6 $ 4,499 $ 17 As of September 30, 2015, the Company held 261 investment securities of which 10 were in a loss position for less than twelve months and 1 security was in a loss position for twelve months or more. Management periodically evaluates each investment security for other-than-temporary impairment relying primarily on industry analyst reports and observations of market conditions and interest rate fluctuations. Management believes it will be able to collect all amounts due according to the contractual terms of the underlying investment securities. Securities of Government Agency and Government Sponsored Entities – There were no unrealized losses on the Company’s investment in securities of government agency and government sponsored entities at September 30, 2015 and September 30, 2014. The unrealized losses on the Company’s investment in securities of government agency and government sponsored entities at December 31, 2014 were $3,000. The unrealized losses were caused by interest rate fluctuations. Repayment of these investments is guaranteed by an agency or government sponsored entity of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company's investment. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the securities and it is more likely than not that the Company will not have to sell the securities before recovery of their cost basis, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2014. Mortgage Backed Securities – At September 30, 2015, five mortgage backed security investments were in a loss position for less than 12 months and one was in a loss position for 12 months or more. The unrealized losses on the Company's investment in mortgage backed securities were $312,000, $657,000, and $2.4 million at September 30, 2015, December 31, 2014, and September 30, 2014, respectively. The unrealized losses on the Company’s investment in mortgage backed securities were caused by interest rate fluctuations. The contractual cash flows of these investments are guaranteed by an agency or government sponsored entity of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company's investment. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the securities and it is more likely than not that the Company will not have to sell the securities before recovery of their cost basis, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2015, December 31, 2014 and September 30, 2014, respectively. Obligations of States and Political Subdivisions - At September 30, 2015, five obligations of states and political subdivisions were in a loss position for less than 12 months. None were in a loss position for 12 months or more. As of September 30, 2015, over ninety-eight percent of the Company’s bank-qualified municipal bond portfolio is rated at either the issue or issuer level, and all of these ratings are “investment grade.” The Company monitors the status of the two percent of the portfolio that is not rated and at the current time does not believe any of them to be exhibiting financial problems that could result in a loss in any individual security. The unrealized losses on the Company’s investment in obligations of states and political subdivisions were $26,000, $10,000, and $17,000 at September 30, 2015, December 31, 2014 and September 30, 2014, respectively. Management believes that any unrealized losses on the Company's investments in obligations of states and political subdivisions were primarily caused by interest rate fluctuations. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company does not intend to sell the securities and it is more likely than not that the Company will not have to sell the securities before recovery of their cost basis, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2015, December 31, 2014 and September 30, 2014, respectively. Corporate Securities - There were no unrealized losses on the Company’s investments in corporate securities at September 30, 2015. The Company did not hold any corporate securities December 31, 2014 or September 30, 2014. Changes in the prices of corporate securities are primarily influenced by: (1) changes in market interest rates; (2) changes in perceived credit risk in the general economy or in particular industries; (3) changes in the perceived credit risk of a particular company; and (4) day to day trading supply, demand and liquidity. US Treasury Notes – There were no unrealized losses on the Company’s investments in US treasury notes at September 30, 2015. The Company did not hold any US treasury notes at December 31, 2014 or September 30, 2014. Proceeds from sales and calls of securities were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 Proceeds $ 53,465 $ 85,433 $ 58,000 $ 95,349 Gains 266 811 272 845 Losses - 807 - 807 Pledged Securities As of September 30, 2015, securities carried at $197.8 million were pledged to secure public deposits, Federal Home Loan Bank (“FHLB”) borrowings, and other government agency deposits as required by law. This amount was $178.8 million at December 31, 2014, and $360.0 million at September 30, 2014. The decrease in pledged securities since September 30, 2014 was due to the Company’s use of a $165 million standby Letter of Credit (“LC”) issued by the FHLB as collateral for Public Deposits. The LC was issued December 4, 2014, and matures December 2, 2016, with a maintenance fee of 10 basis points per annum. |
Loans & Leases and Allowance fo
Loans & Leases and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2015 | |
Loans & Leases and Allowance for Credit Losses [Abstract] | |
Loans & Leases and Allowance for Credit Losses | 3. Loans & Leases and Allowance for Credit Losses The following tables show the allocation of the allowance for credit losses by portfolio segment and by impairment methodology at the dates indicated (in thousands) September 30, 2015 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2015 $ 7,842 $ 4,185 $ 1,669 $ 1,022 $ 2,426 $ 6,104 $ 8,195 $ 218 $ 2,211 $ 1,529 $ 35,401 Charge-Offs - - - - - - (12 ) (55 ) - - (67 ) Recoveries 2,939 - - 4 85 3 24 51 - - 3,106 Provision (1,536 ) 3,295 719 (274 ) (356 ) (969 ) 38 2 860 (1,129 ) 650 Ending Balance- September 30, 2015 $ 9,245 $ 7,480 $ 2,388 $ 752 $ 2,155 $ 5,138 $ 8,245 $ 216 $ 3,071 $ 400 $ 39,090 Third Quarter Allowance for Credit Losses: Beginning Balance- July 1, 2015 $ 8,591 $ 7,272 $ 2,177 $ 731 $ 2,073 $ 5,046 $ 8,878 $ 217 $ 2,532 $ 1,520 $ 39,037 Charge-Offs - - - - - - - (21 ) - - (21 ) Recoveries - - - 3 37 1 20 13 - - 74 Provision 654 208 211 18 45 91 (653 ) 7 539 (1,120 ) - Ending Balance- September 30, 2015 $ 9,245 $ 7,480 $ 2,388 $ 752 $ 2,155 $ 5,138 $ 8,245 $ 216 $ 3,071 $ 400 $ 39,090 Ending Balance Individually Evaluated for Impairment 61 - - 70 35 120 879 31 - - 1,196 Ending Balance Collectively Evaluated for Impairment 9,184 7,480 2,388 682 2,120 5,018 7,366 185 3,071 400 37,894 Loans & Leases: Ending Balance $ 558,743 $ 432,610 $ 161,762 $ 196,893 $ 31,833 $ 249,783 $ 210,491 $ 6,735 $ 61,420 $ - $ 1,910,270 Ending Balance Individually Evaluated for Impairment 4,120 - 4,307 2,036 1,264 630 4,797 37 - - 17,191 Ending Balance Collectively Evaluated for Impairment $ 554,623 $ 432,610 $ 157,455 $ 194,857 $ 30,569 $ 249,153 $ 205,694 $ 6,698 $ 61,420 $ - $ 1,893,079 December 31, 2014 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2014 $ 5,178 $ 3,576 $ 654 $ 1,108 $ 2,767 $ 12,205 $ 5,697 $ 176 $ 639 $ 2,274 $ 34,274 Charge-Offs - - - (73 ) (70 ) - (1 ) (132 ) - - (276 ) Recoveries 11 - - - 58 8 86 65 - - 228 Provision 2,653 609 1,015 (13 ) (329 ) (6,109 ) 2,413 109 1,572 (745 ) 1,175 Ending Balance- December 31, 2014 $ 7,842 $ 4,185 $ 1,669 $ 1,022 $ 2,426 $ 6,104 $ 8,195 $ 218 $ 2,211 $ 1,529 $ 35,401 Ending Balance Individually Evaluated for Impairment 377 - - 422 329 114 914 41 - - 2,197 Ending Balance Collectively Evaluated for Impairment 7,465 4,185 1,669 600 2,097 5,990 7,281 177 2,211 1,529 33,204 Loans & Leases: Ending Balance $ 491,903 $ 357,207 $ 96,519 $ 171,880 $ 33,017 $ 281,963 $ 230,819 $ 4,719 $ 44,217 $ - $ 1,712,244 Ending Balance Individually Evaluated for Impairment 20,066 - 4,386 2,108 1,643 461 4,874 46 - - 33,584 Ending Balance Collectively Evaluated for Impairment $ 471,837 $ 357,207 $ 92,133 $ 169,772 $ 31,374 $ 281,502 $ 225,945 $ 4,673 $ 44,217 $ - $ 1,678,660 September 30, 2014 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2014 $ 5,178 $ 3,576 $ 654 $ 1,108 $ 2,767 $ 12,205 $ 5,697 $ 176 $ 639 $ 2,274 $ 34,274 Charge-Offs - - - (58 ) (70 ) - - (76 ) - - (204 ) Recoveries 12 - - - 54 3 83 45 - - 197 Provision 2,608 370 1,026 92 (76 ) (6,426 ) 2,135 76 1,206 (1,011 ) - Ending Balance- September 30, 2014 $ 7,798 $ 3,946 $ 1,680 $ 1,142 $ 2,675 $ 5,782 $ 7,915 $ 221 $ 1,845 $ 1,263 $ 34,267 Third Quarter Allowance for Credit Losses: Beginning Balance- July 1, 2014 $ 6,991 $ 3,677 $ 1,290 $ 1,094 $ 2,737 $ 8,291 $ 7,377 $ 193 $ 1,108 $ 1,532 $ 34,290 Charge-Offs - - - (25 ) (5 ) - - (31 ) - - (61 ) Recoveries 12 - - - 3 1 6 16 - - 38 Provision 795 269 390 73 (60 ) (2,510 ) 532 43 737 (269 ) - Ending Balance- September 30, 2014 $ 7,798 $ 3,946 $ 1,680 $ 1,142 $ 2,675 $ 5,782 $ 7,915 $ 221 $ 1,845 $ 1,263 $ 34,267 Ending Balance Individually Evaluated for Impairment 190 - 239 370 328 120 912 42 - - 2,201 Ending Balance Collectively Evaluated for Impairment 7,608 3,946 1,441 772 2,347 5,662 7,003 179 1,845 1,263 32,066 Loans & Leases: Ending Balance $ 473,505 $ 364,161 $ 104,463 $ 168,310 $ 33,283 $ 237,521 $ 192,804 $ 4,816 $ 36,908 $ - $ 1,615,771 Ending Balance Individually Evaluated for Impairment 20,175 - 4,419 1,847 1,658 518 4,877 42 - - 33,536 Ending Balance Collectively Evaluated for Impairment 453,330 364,161 100,044 166,463 31,625 237,003 187,927 4,774 36,908 - 1,582,235 The ending balance of loans individually evaluated for impairment includes restructured loans in the amount of $9.3 million at September 30, 2015, $26.4 million at December 31, 2014 and $26.6 million at September 30, 2014, which are no longer disclosed or classified as TDR’s. The following tables show the loan & lease portfolio allocated by management’s internal risk ratings at the dates indicated (in thousands) September 30, 2015 Pass Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 550,011 $ 8,038 $ 694 $ 558,743 Agricultural Real Estate 432,610 - - 432,610 Real Estate Construction 160,133 1,629 - 161,762 Residential 1st Mortgages 195,477 733 683 196,893 Home Equity Lines & Loans 31,149 78 606 31,833 Agricultural 249,116 437 230 249,783 Commercial 197,193 9,752 3,546 210,491 Consumer & Other 6,461 - 274 6,735 Leases 61,420 - - 61,420 Total $ 1,883,570 $ 20,667 $ 6,033 $ 1,910,270 December 31, 2014 Pass Special Mention Substandard Total Loans Loans & Leases: Commercial Real Estate $ 483,146 $ 8,651 $ 106 $ 491,903 Agricultural Real Estate 357,207 - - 357,207 Real Estate Construction 94,887 1,632 - 96,519 Residential 1st Mortgages 170,462 744 674 171,880 Home Equity Lines and Loans 32,054 85 878 33,017 Agricultural 281,232 679 52 281,963 Commercial 211,036 18,143 1,640 230,819 Consumer & Other 4,449 - 270 4,719 Leases 44,217 - - 44,217 Total $ 1,678,690 $ 29,934 $ 3,620 $ 1,712,244 September 30, 2014 Pass Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 464,714 $ 8,683 $ 108 $ 473,505 Agricultural Real Estate 364,161 - - 364,161 Real Estate Construction 102,831 1,632 - 104,463 Residential 1st Mortgages 166,884 752 674 168,310 Home Equity Lines & Loans 32,309 88 886 33,283 Agricultural 236,760 695 66 237,521 Commercial 168,215 22,929 1,660 192,804 Consumer & Other 4,520 - 296 4,816 Leases 36,908 - - 36,908 Total $ 1,577,302 $ 34,779 $ 3,690 $ 1,615,771 See “Note 1. Significant Accounting Policies - Allowance for Credit Losses” for a description of the internal risk ratings used by the Company. There were no loans or leases outstanding rated doubtful or loss at September 30, 2015, December 31, 2014, and September 30, 2014. The following tables show an aging analysis of the loan & lease portfolio by the time past due at the dates indicated (in thousands) September 30, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ 696 $ 696 $ 558,047 $ 558,743 Agricultural Real Estate - - - - - 432,610 432,610 Real Estate Construction - - - - - 161,762 161,762 Residential 1st Mortgages 74 196 - 68 338 196,555 196,893 Home Equity Lines & Loans 150 - - 576 726 31,107 31,833 Agricultural - - - 8 8 249,775 249,783 Commercial - - - 1,545 1,545 208,946 210,491 Consumer & Other 6 - - 11 17 6,718 6,735 Leases - - - - - 61,420 61,420 Total $ 230 $ 196 $ - $ 2,904 $ 3,330 $ 1,906,940 $ 1,910,270 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 491,903 $ 491,903 Agricultural Real Estate - - - - - 357,207 357,207 Real Estate Construction - - - - - 96,519 96,519 Residential 1st Mortgages - - - 77 77 171,803 171,880 Home Equity Lines and Loans 79 - - 576 655 32,362 33,017 Agricultural - - - 18 18 281,945 281,963 Commercial - - - 1,586 1,586 229,233 230,819 Consumer & Other 10 - - 13 23 4,696 4,719 Leases - - - - - 44,217 44,217 Total $ 89 $ - $ - $ 2,270 $ 2,359 $ 1,709,885 $ 1,712,244 September 30, 2014 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 473,505 $ 473,505 Agricultural Real Estate - - - - - 364,161 364,161 Real Estate Construction - - - - - 104,463 104,463 Residential 1st Mortgages - - - 283 283 168,027 168,310 Home Equity Lines & Loans 92 - - 575 667 32,616 33,283 Agricultural - - - 25 25 237,496 237,521 Commercial - - - 1,600 1,600 191,204 192,804 Consumer & Other 12 - - 14 26 4,790 4,816 Leases - - - - - 36,908 36,908 Total $ 104 $ - $ - $ 2,497 $ 2,601 $ 1,613,170 $ 1,615,771 The following tables show information related to impaired loans & leases for the periods indicated (in thousands) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 September 30, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 821 $ 821 $ - $ 812 $ 2 $ 468 $ 6 Residential 1st Mortgages 557 623 - 561 4 471 12 Home Equity Lines & Loans 619 659 - 620 1 531 2 Agricultural 203 216 - 107 - 42 - Commercial 3,118 3,118 - 3,122 26 1,578 54 $ 5,318 $ 5,437 $ - $ 5,222 $ 33 $ 3,090 $ 74 With an allowance recorded: Residential 1st Mortgages $ 352 $ 424 $ 17 $ 354 $ 4 $ 453 12 Home Equity Lines & Loans 135 153 7 136 2 273 4 Agricultural 427 427 120 435 7 443 21 Commercial 1,679 1,803 879 1,687 2 3,233 29 Consumer & Other 37 43 31 39 - 42 2 $ 2,630 $ 2,850 $ 1,054 $ 2,651 $ 15 $ 4,444 $ 68 Total $ 7,948 $ 8,287 $ 1,054 $ 7,873 $ 48 $ 7,534 $ 142 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ - $ - $ - $ 49 $ 4 Home Equity Lines and Loans - - - 169 - Agricultural - - - 15 - Commercial - - - 1,620 54 $ - $ - $ - $ 1,853 $ 58 With an allowance recorded: Commercial Real Estate $ 92 $ 92 $ 2 $ 47 $ 4 Residential 1st Mortgages 937 1,069 187 612 9 Home Equity Lines and Loans 951 1,020 190 803 10 Agricultural 461 473 114 473 28 Commercial 4,742 4,813 910 3,182 54 Consumer & Other 46 51 41 46 2 $ 7,229 $ 7,518 $ 1,444 $ 5,163 $ 107 Total $ 7,229 $ 7,518 $ 1,444 $ 7,016 $ 165 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 September 30, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ - $ - $ - $ 49 $ - $ 82 $ 4 Home Equity Lines & Loans - - - - - 226 - Agricultural - - - 14 - 26 - Commercial - - - 1,575 - 2,740 54 $ - $ - $ - $ 1,638 $ - $ 3,074 $ 58 With an allowance recorded: Commercial Real Estate $ 94 $ 94 $ 2 $ 47 $ 2 $ 16 $ 2 Residential 1st Mortgages 658 771 131 550 1 522 3 Home Equity Lines & Loans 955 1,008 191 934 3 710 6 Agricultural 483 493 119 478 7 477 21 Commercial 4,744 4,801 908 3,179 27 2,144 27 Consumer & Other 43 47 43 44 1 47 2 $ 6,977 $ 7,214 $ 1,394 $ 5,232 $ 41 $ 3,916 $ 61 Total $ 6,977 $ 7,214 $ 1,394 $ 6,870 $ 41 $ 6,990 $ 119 Total recorded investment shown in the prior tables will not equal the total ending balance of loans & leases individually evaluated for impairment on the allocation of allowance tables. This is because the calculation of recorded investment takes into account charge-offs, net unamortized loan & lease fees & costs, unamortized premium or discount, and accrued interest. This table also excludes impaired loans that were previously modified in a troubled debt restructuring, are currently performing and are no longer disclosed or classified as TDR’s. At September 30, 2015, the Company allocated $1.1 million of specific reserves to $6.6 million of troubled debt restructured loans & leases, of which $5.0 million were performing. The Company had no commitments at September 30, 2015 to lend additional amounts to customers with outstanding loans or leases that are classified as troubled debt restructurings. During the three and nine month period ending September 30, 2015, the terms of certain loans & leases were modified as troubled debt restructurings. The modification of the terms of such loans & leases can include one or a combination of the following: a reduction of the stated interest rate; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate were from 5 to 10 years. Modifications involving an extension of the maturity date were from 5 to 10 years. The following table presents loans or leases by class modified as troubled debt restructured loans or leases during the three and nine-month periods ended September 30, 2015 (in thousands) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Agricultural 1 $ 194 $ 194 1 $ 194 $ 194 Commercial - - - 1 131 119 Total 1 $ 194 $ 194 2 $ 325 $ 313 The TDRs described above increased the allowance for credit losses by $0 and $70,000 for the three and nine-month periods ending September 30, 2015, and resulted in charge-offs of $0 and $12,000 for the three and nine-month periods ended September 30, 2015. During the three and nine-months ended September 30, 2015, there were no payment defaults on loans or leases modified as troubled debt restructurings within twelve months following the modification. The Company considers a loan or lease to be in payment default once it is greater than 90 days contractually past due under the modified terms. At December 31, 2014, the Company allocated $1.3 million of specific reserves to $6.6 million of troubled debt restructured loans, of which $5.0 million were performing. The Company had no commitments at December 31, 2014 to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings. During the period ending December 31, 2014, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from 4 to 30 years. Modifications involving an extension of the maturity date were for periods ranging from 6 months to 30 years. The following table presents loans or leases by class modified as TDRs for the period ended December 31, 2014 (in thousands) December 31, 2014 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 5 $ 857 $ 804 Home Equity Lines and Loans 3 98 89 Agricultural 1 32 32 Commercial 1 18 18 Consumer & Other 1 7 7 Total 11 $ 1,012 $ 950 The troubled debt restructurings described above increased the allowance for credit losses by $28,000 and resulted in charge-offs of $63,000 for the twelve months ended December 31, 2014. During the period ended December 31, 2014, there were no payment defaults on loans modified as troubled debt restructurings within twelve months following the modification. At September 30, 2014, the Company allocated $1.3 million of specific reserves to $6.4 million of troubled debt restructured loans & leases, of which $4.5 million were performing. The Company had no commitments at September 30, 2014 to lend additional amounts to customers with outstanding loans or leases that are classified as troubled debt restructurings. During the three and nine month periods ending September 30, 2014, the terms of certain loans & leases were modified as troubled debt restructurings. The modification of the terms of such loans & leases can include one or a combination of the following: a reduction of the stated interest rate; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate were for periods ranging from 5 years to 30 years. Modifications involving an extension of the maturity date were for periods ranging from 5 years to 30 years. The following table presents loans or leases by class modified as troubled debt restructured loans or leases during the three and nine-month periods ended September 30, 2014 (in thousands) Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 1 $ 248 $ 222 4 $ 565 $ 528 Home Equity Lines & Loans 1 51 47 3 98 89 Agricultural - - - 1 32 32 Total 2 $ 299 $ 269 8 $ 695 $ 649 The TDRs described above increased the allowance for credit losses by $51,000 and $50,000 and resulted in charge-offs of $30,000 and $46,000 for the three and nine-month periods ended September 30, 2014. During the three and nine-months ended September 30, 2014, there were no payment defaults on loans or leases modified as troubled debt restructurings within twelve months following the modification. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company follows the “Fair Value Measurement and Disclosures” topic of the FASB ASC, which establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. This standard applies whenever other standards require, or permit, assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. In this standard, the FASB clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability. In support of this principle, this standard establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy is as follows: Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Management monitors the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities or total earnings. Securities classified as AFS are reported at fair value on a recurring basis utilizing Level 1, 2 and 3 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things. The Company does not record all loans & leases at fair value on a recurring basis. However, from time to time, a loan or lease is considered impaired and an allowance for credit losses is established. Once a loan or lease is identified as individually impaired, management measures impairment in accordance with the “Receivable” topic of the FASB ASC. The fair value of impaired loans or leases is estimated using one of several methods, including collateral value when the loan is collateral dependent, market value of similar debt, enterprise value, and discounted cash flows. Impaired loans & leases not requiring an allowance represent loans & leases for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans & leases. Impaired loans & leases where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Other Real Estate (“ORE”) is reported at fair value on a non-recurring basis. At September 30, 2015, formal foreclosure proceedings were in process for $575,000 of consumer mortgage loans secured by residential real estate properties. The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Fair Value Measurements At September 30, 2015, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 41,513 $ - $ 41,513 $ - US Treasury Notes 30,300 30,300 - - Mortgage Backed Securities 256,195 - 256,195 - Corporate Securities 16,235 - 16,235 - Other 485 175 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 344,728 $ 30,475 $ 314,253 $ - Fair Value Measurements At December 31, 2014, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 78,109 $ 10,005 $ 68,104 $ - Mortgage Backed Securities 287,948 - 287,948 - Other 485 175 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 366,542 $ 10,180 $ 356,362 $ - Fair Value Measurements At September 30, 2014, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 13,361 $ 13,361 $ - $ - Mortgage Backed Securities 322,680 39,566 283,114 - Other 485 175 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 336,526 $ 53,102 $ 283,424 $ - Fair values for Level 2 available-for-sale investment securities are based on quoted market prices for similar securities. During the nine months ended September 30, 2015, the year ended December 31, 2014, and the nine months ended September 30, 2014, there were no transfers in or out of level 1, 2, or 3. The following tables present information about the Company’s other real estate and impaired loans or leases, classes of assets or liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans or leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment of a specific reserve. Fair Value Measurements At September 30, 2015, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Impaired Loans Residential 1st Mortgage $ 334 $ - $ - $ 334 Home Equity Lines and Loans 126 - - 126 Agricultural 308 - - 308 Commercial 800 - - 800 Consumer 5 5 Total Impaired Loans 1,573 - - 1,573 Other Real Estate Real Estate Construction 2,441 - - 2,441 Total Other Real Estate 2,441 - - 2,441 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 4,014 $ - $ - $ 4,014 Fair Value Measurements At December 31, 2014, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Impaired Loans Commercial Real Estate $ 90 $ - $ - $ 90 Residential 1st Mortgage 748 - - 748 Home Equity Lines and Loans 759 - - 759 Agricultural 346 - - 346 Commercial 3,832 - - 3,832 Consumer 6 6 Total Impaired Loans 5,781 - - 5,781 Other Real Estate Real Estate Construction 2,441 - - 2,441 Agricultural Real Estate 858 - - 858 Total Other Real Estate 3,299 - - 3,299 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 9,080 $ - $ - $ 9,080 Fair Value Measurements At September 30, 2014, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Impaired Loans Commercial Real Estate $ 92 $ - $ - $ 92 Residential 1st Mortgages 526 - - 526 Home Equity Lines and Loans 763 - - 763 Agricultural 363 - - 363 Commercial 3,836 - - 3,836 Total Impaired Loans 5,580 - - 5,580 Other Real Estate Real Estate Construction 2,441 - - 2,441 Agricultural Real Estate 858 - - 858 Total Other Real Estate 3,299 - - 3,299 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 8,879 $ - $ - $ 8,879 The Company’s property appraisals are primarily based on the sales comparison approach and the income approach methodologies, which consider recent sales of comparable properties, including their income generating characteristics, and then make adjustments to reflect the general assumptions that a market participant would make when analyzing the property for purchase. These adjustments may increase or decrease an appraised value and can vary significantly depending on the location, physical characteristics and income producing potential of each property. Additionally, the quality and volume of market information available at the time of the appraisal can vary from period to period and cause significant changes to the nature and magnitude of comparable sale adjustments. Given these variations, comparable sale adjustments are generally not a reliable indicator for how fair value will increase or decrease from period to period. Under certain circumstances, management discounts are applied based on specific characteristics of an individual property. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2015: (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans Residential 1st Mortgage $ 334 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 2% -5%, 4 % Home Equity Lines and Loans $ 126 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% - 3%, 2 % Agricultural $ 308 Income Approach Capitalization Rate 16% - 16%, 16 % Commercial $ 800 Income Approach Capitalization Rate 16% - 16%, 16 % Consumer $ 5 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% - 1%, 1 % Other Real Estate Real Estate Construction $ 2,441 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10% - 10%, 10 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments U.S. GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practical to estimate that value. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, will likely reduce the comparability of fair value disclosures between financial institutions. In some cases, book value is a reasonable estimate of fair value due to the relatively short period of time between origination of the instrument and its expected realization. The following tables summarize the book value and estimated fair value of financial instruments for the periods indicated. Fair Value of Financial Instruments Using September 30, 2015 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 50,300 $ 50,300 $ - $ - $ 50,300 Investment Securities Available-for-Sale: Government Agency & Government-Sponsored Entities 41,513 - 41,513 - 41,513 U.S. Treasury Notes 30,300 30,300 - - 30,300 Mortgage Backed Securities 256,195 - 256,195 - 256,195 Corporate Securities 16,235 - 16,235 - 16,235 Other 485 175 310 - 485 Total Investment Securities Available-for-Sale 344,728 30,475 314,253 - 344,728 Investment Securities Held-to-Maturity: Obligations of States and Political Subdivisions 64,134 - 51,966 12,800 64,766 Other 2,123 - 2,123 - 2,123 Total Investment Securities Held-to-Maturity 66,257 - 54,089 12,800 66,889 FHLB Stock 7,795 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance: Commercial Real Estate 549,498 - - 552,323 552,323 Agricultural Real Estate 425,130 - - 415,304 415,304 Real Estate Construction 159,374 - - 159,295 159,295 Residential 1st Mortgages 196,141 - - 199,565 199,565 Home Equity Lines and Loans 29,678 - - 31,314 31,314 Agricultural 244,645 - - 243,495 243,495 Commercial 202,246 - - 200,932 200,932 Consumer & Other 6,519 - - 6,543 6,543 Leases 58,349 58,854 58,854 Unallocated Allowance (400 ) - - (400 ) (400 ) Total Loans & Leases, Net of Deferred Fees & Allowance 1,871,180 - - 1,867,225 1,867,225 Accrued Interest Receivable 10,548 - 10,548 - 10,548 Liabilities: Deposits: Demand 603,430 603,430 - - 603,430 Interest Bearing Transaction 373,193 373,193 - - 373,193 Savings and Money Market 672,052 672,052 - - 672,052 Time 483,967 - 484,018 - 484,018 Total Deposits 2,132,642 1,648,675 484,018 - 2,132,693 FHLB Advances & Securities Sold Under Agreement to Repurchase 5,500 - 5,500 - 5,500 Subordinated Debentures 10,310 - 6,292 - 6,292 Accrued Interest Payable 590 - 590 - 590 Fair Value of Financial Instruments Using December 31, 2014 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 77,125 $ 77,125 $ - $ - $ 77,125 Investment Securities Available-for-Sale: Government Agency & Government-Sponsored Entities 78,109 10,005 68,104 - 78,109 Mortgage Backed Securities 287,948 - 287,948 - 287,948 Other 485 175 310 - 485 Total Investment Securities Available-for-Sale 366,542 10,180 356,362 - 366,542 Investment Securities Held-to-Maturity: Obligations of States and Political Subdivisions 61,716 - 49,085 13,403 62,488 Other 2,147 - 2,147 - 2,147 Total Investment Securities Held-to-Maturity 63,863 - 51,232 13,403 64,635 FHLB Stock 7,677 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance: Commercial Real Estate 484,061 - - 481,037 481,037 Agricultural Real Estate 353,022 - - 353,288 353,288 Real Estate Construction 94,850 - - 95,022 95,022 Residential 1st Mortgages 170,858 - - 173,916 173,916 Home Equity Lines and Loans 30,591 - - 32,456 32,456 Agricultural 275,859 - - 274,195 274,195 Commercial 222,624 - - 222,175 222,175 Consumer & Other 4,501 - - 4,535 4,535 Leases 42,006 - - 40,298 40,298 Unallocated Allowance (1,529 ) - - (1,529 ) (1,529 ) Total Loans & Leases, Net of Deferred Fees & Allowance 1,676,843 - - 1,675,393 1,675,393 Accrued Interest Receivable 7,797 - 7,797 - 7,797 Liabilities: Deposits: Demand 610,133 610,133 - - 610,133 Interest Bearing Transaction 341,397 341,397 - - 341,397 Savings and Money Market 644,260 644,260 - - 644,260 Time 468,283 - 468,161 - 468,161 Total Deposits 2,064,073 1,595,790 468,161 - 2,063,951 Subordinated Debentures 10,310 - 6,227 - 6,227 Accrued Interest Payable 378 - 378 - 378 Fair Value of Financial Instruments Using September 30, 2014 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 39,216 $ 39,216 $ - $ - $ 39,216 Investment Securities Available-for-Sale: Government Agency & Government-Sponsored Entities 13,361 13,361 - - 13,361 Mortgage Backed Securities 322,680 39,566 283,114 - 322,680 Other 485 175 310 - 485 Total Investment Securities Available-for-Sale 336,526 53,102 283,424 - 336,526 Investment Securities Held-to-Maturity: Obligations of States and Political Subdivisions 67,206 - 54,375 13,539 67,914 Other 2,235 - 2,235 - 2,235 Total Investment Securities Held-to-Maturity 69,441 - 56,610 13,539 70,149 FHLB Stock 7,677 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance: Commercial Real Estate 465,707 - - 462,469 462,469 Agricultural Real Estate 360,215 - - 360,976 360,976 Real Estate Construction 102,783 - - 103,095 103,095 Residential 1st Mortgages 167,168 - - 169,971 169,971 Home Equity Lines and Loans 30,608 - - 32,601 32,601 Agricultural 231,739 - - 230,572 230,572 Commercial 184,889 - - 184,466 184,466 Consumer & Other 4,595 - - 4,619 4,619 Leases 35,063 33,519 33,519 Unallocated Allowance (1,263 ) - - (1,263 ) (1,263 ) Total Loans & Leases, Net of Deferred Fees & Allowance 1,581,504 - - 1,581,025 1,581,025 Accrued Interest Receivable 8,986 - 8,986 - 8,986 Liabilities: Deposits: Demand 516,093 516,093 - - 516,093 Interest Bearing Transaction 326,368 326,368 - - 326,368 Savings and Money Market 614,137 614,137 - - 614,137 Time 419,615 - 419,663 - 419,663 Total Deposits 1,876,213 1,456,598 419,663 - 1,876,261 FHLB Advances & Securities Sold Under Agreement to Repurchase 36,000 - 36,000 - 36,000 Subordinated Debentures 10,310 - 6,227 - 6,227 Accrued Interest Payable 314 - 314 - 314 Cash and Cash Equivalents - The carrying amounts reported in the balance sheet for cash and due from banks, interest bearing deposits with banks, federal funds sold, and securities purchased under agreements to resell are a reasonable estimate of fair value. All cash and cash equivalents are classified as Level 1. Investment Securities - Fair values for investment securities consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things. Based on the available market information the classification level could be 1, 2, or 3. Federal Home Loan Bank Stock - It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. Loans & Leases, Net of Deferred Fees & Allowance - Fair values of loans & leases are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans & leases are estimated using discounted cash flow analyses, using interest rates currently being offered for loans & leases with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans & leases are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans & leases do not necessarily represent an exit price. Deposit Liabilities - The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. Fair values for fixed-maturity certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. FHLB Advances & Securities Sold Under Agreement to Repurchase - The fair value of federal funds purchased and other short-term borrowings is approximated by the book value resulting in a Level 2 classification. The fair value for Federal Home Loan Bank advances is determined using discounted future cash flows resulting in a Level 2 classification. Subordinated Debentures - The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. Accrued Interest Receivable and Payable - The carrying amount of accrued interest receivable and payable approximates their fair value resulting in a Level 2 classification. |
Dividends and Basic Earnings Pe
Dividends and Basic Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Dividends and Basic Earnings Per Common Share [Abstract] | |
Dividends and Basic Earnings Per Common Share | 6. Dividends and Basic Earnings Per Common Share Farmers & Merchants Bancorp common stock is not traded on any exchange. The shares are primarily held by local residents and are not actively traded. Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. The following table calculates the basic earnings per common share for the three and six months ended September 30, 2015 and 2014. Three Months Ended September 30, Nine Months Ended September 30, (net income in thousands) 2015 2014 2015 2014 Net Income $ 7,040 $ 6,432 $ 20,192 $ 18,818 Weighted Average Number of Common Shares Outstanding 785,852 777,882 785,668 777,882 Basic Earnings Per Common Share Amount $ 8.96 $ 8.27 $ 25.70 $ 24.19 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity In January, 2015, the Company issued 1,700 shares of common stock and in September, 2015, the Company issued 3,200 shares of common stock. All of these shares were contributed to the Bank’s non-qualified defined contribution retirement plans. The shares issued in January had a price of $450 per share and the shares issued in September had a price of $515 per share. These share prices were based upon valuations completed by a nationally recognized bank consulting and advisory firm and in reliance upon the exemption in Section 4(2) of the Securities Act of 1933, as amended, the regulations promulgated thereunder. The proceeds from these issuances were contributed to the Bank as equity capital. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 8. Recent Accounting Pronouncements In January, 2014, the FASB issued Accounting Standards Update (ASU) 2014-04 - Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure This Update clarifies when an in-substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The objective of the amendments in this Update is to reduce diversity in practice. An in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operation, cash flows, or disclosure. In May 2014, the FASB issued ASU 2014-09 - Revenue from Contracts with Customers (Topic 606) , which will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Accounting Standards Codification. The amendments in this update affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts, including leases and insurance contracts, are within the scope of other standards. The amendments establish a core principle requiring the recognition of revenue to depict the transfer of goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. The amendments also require expanded disclosures concerning the nature, amount, timing and uncertainty of revenues and cash flows arising from contracts with customers. For public entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and must be applied retrospectively. Early application is not permitted. Management is currently evaluating the impact of adoption. In August 2015, the FASB issued ASU 2015-14 - Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America for financial information. These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting on Form 10-Q. Accordingly, certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted. The Company believes that the disclosures are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the three-month and nine-month periods ended September 30, 2015 may not necessarily be indicative of future operating results. The accompanying consolidated financial statements include the accounts of the Company and the Company’s wholly owned subsidiaries, F & M Bancorp, Inc. and the Bank, along with the Bank’s wholly owned subsidiaries, Farmers & Merchants Investment Corporation and Farmers/Merchants Corp. Significant inter-company transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Certain amounts in the prior years' consolidated financial statements and related footnote disclosures have been reclassified to conform to the current-year presentation. These reclassifications had no effect on previously reported net income or total shareholders’ equity. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, the Company has defined cash and cash equivalents as those amounts included in the balance sheet captions Cash and Due from Banks, Interest Bearing Deposits with Banks, Federal Funds Sold and Securities Purchased Under Agreements to Resell. For these instruments, the carrying amount is a reasonable estimate of fair value. |
Investment Securities | Investment Securities Investment securities are classified at the time of purchase as held-to-maturity (“HTM”) if it is management’s intent and the Company has the ability to hold the securities until maturity. These securities are carried at cost, adjusted for amortization of premium and accretion of discount using a level yield of interest over the estimated remaining period until maturity. Losses, reflecting a decline in value judged by the Company to be other than temporary, are recognized in the period in which they occur. Securities are classified as available-for-sale (“AFS”) if it is management’s intent, at the time of purchase, to hold the securities for an indefinite period of time and/or to use the securities as part of the Company’s asset/liability management strategy. These securities are reported at fair value with aggregate unrealized gains or losses excluded from income and included as a separate component of shareholders’ equity, net of related income taxes. Fair values are based on quoted market prices or broker/dealer price quotations on a specific identification basis. Gains or losses on the sale of these securities are computed using the specific identification method. Trading securities, if any, are acquired for short-term appreciation and are recorded in a trading portfolio and are carried at fair value, with unrealized gains and losses recorded in non-interest income. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement; and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, the Company compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. |
Loans & Leases | Loans & Leases Loans & leases are reported at the principal amount outstanding net of unearned discounts and deferred loan & lease fees and costs. Interest income on loans & leases is accrued daily on the outstanding balances using the simple interest method. Loan & lease origination fees are deferred and recognized over the contractual life of the loan or lease as an adjustment to the yield. Loans & leases are placed on non-accrual status when the collection of principal or interest is in doubt or when they become past due for 90 days or more unless they are both well-secured and in the process of collection. For this purpose a loan or lease is considered well-secured if it is collateralized by property having a net realizable value in excess of the amount of the loan or lease or is guaranteed by a financially capable party. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and charged against current income; thereafter, interest income is recognized only as it is collected in cash. Additionally, cash would be applied to principal if all principal was not expected to be collected. Loans & leases placed on non-accrual status are returned to accrual status when the loans or leases are paid current as to principal and interest and future payments are expected to be made in accordance with the contractual terms of the loan or lease. A loan or lease is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Impaired loans or leases are either: (1) non-accrual loans & leases; or (2) restructured loans & leases that are still accruing interest. Loans or leases determined to be impaired are individually evaluated for impairment. When a loan or lease is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan or lease's effective interest rate, except that as a practical expedient, it may measure impairment based on a loan's or lease’s observable market price, or the fair value of the collateral if the loan or lease is collateral dependent. A loan or lease is collateral dependent if the repayment of the loan or lease is expected to be provided solely by the underlying collateral. A restructuring of a loan or lease constitutes a troubled debt restructuring (“TDR”) if the Company for economic or legal reasons related to the borrower’s (the term “borrower” is used herein to describe a customer who has entered into either a loan or lease transaction) financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans & leases typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. If the restructured loan or lease was current on all payments at the time of restructure and management reasonably expects the borrower will continue to perform after the restructure, management may keep the loan or lease on accrual. Loans & leases that are on nonaccrual status at the time they become TDR, remain on nonaccrual status until the borrower demonstrates a sustained period of performance, which the Company generally believes to be six consecutive months of payments, or equivalent. A loan or lease can be removed from TDR status if it was restructured at a market rate in a prior calendar year and is currently in compliance with its modified terms. However, these loans or leases continue to be classified as impaired and are individually evaluated for impairment as described above. Generally, the Company will not restructure loans or leases for borrowers unless: (1) the existing loan or lease is brought current as to principal and interest payments; and (2) the restructured loan or lease can be underwritten to reasonable underwriting standards. If these standards are not met other actions will be pursued (e.g., foreclosure) to collect outstanding loan or lease amounts. After restructure a determination is made whether the loan or lease will be kept on accrual status based upon the underwriting and historical performance of the restructured credit. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses is an estimate of probable incurred credit losses inherent in the Company's loan & lease portfolio as of the balance sheet date. The allowance is established through a provision for credit losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan & lease growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of three primary components: specific reserves related to impaired loans & leases; general reserves for inherent losses related to loans & leases that are not impaired; and an unallocated component that takes into account the imprecision in estimating and allocating allowance balances associated with macro factors. The determination of the general reserve for loans & leases that are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, qualitative factors that include economic trends in the Company's service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company's underwriting policies, the character of the loan & lease portfolio, and probable losses inherent in the portfolio taken as a whole. The Company maintains a separate allowance for each portfolio segment (loan & lease type). These portfolio segments include: (1) commercial real estate; (2) agricultural real estate; (3) real estate construction (including land and development loans); (4) residential 1 st The Company assigns a risk rating to all loans & leases and periodically performs detailed reviews of all such loans & leases over a certain threshold to identify credit risks and assess overall collectability. For smaller balance loans & leases, such as consumer and residential real estate, a credit grade is established at inception, and then updated only when the loan or lease becomes contractually delinquent or when the borrower requests a modification. For larger balance loans, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans & leases. These credit quality indicators are used to assign a risk rating to each individual loan or lease. These risk ratings are also subject to examination by independent specialists engaged by the Company. The risk ratings can be grouped into five major categories, defined as follows: Pass – A pass loan or lease is a strong credit with no existing or known potential weaknesses deserving of management's close attention. Special Mention – A special mention loan or lease has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company's credit position at some future date. Special mention loans & leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard – A substandard loan or lease is not adequately protected by the current financial condition and paying capacity of the borrower or the value of the collateral pledged, if any. Loans or leases classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well defined weaknesses include a project's lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project's failure to fulfill economic expectations. Doubtful – Loss – Loans or leases classified as loss are considered uncollectible. Once a loan or lease becomes delinquent and repayment becomes questionable, the Company will address collateral shortfalls with the borrower and attempt to obtain additional collateral. If this is not forthcoming and payment in full is unlikely, the Company will estimate its probable loss and immediately charge-off some or all of the balance. The general reserve component of the allowance for credit losses also consists of reserve factors that are based on management's assessment of the following for each portfolio segment: (1) inherent credit risk; (2) historical losses; and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below: Commercial Real Estate – Commercial real estate mortgage loans are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations. Real Estate Construction – Real estate construction loans, including land loans, are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. A major risk arises from the necessity to complete projects within specified cost and time lines. Trends in the construction industry significantly impact the credit quality of these loans, as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects. Commercial – These loans are generally considered to possess a moderate inherent risk of loss because they are shorter-term; typically made to relationship customers; generally underwritten to existing cash flows of operating businesses; and may be collateralized by fixed assets, inventory and/or accounts receivable. Debt coverage is provided by business cash flows and economic trends influenced by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Agricultural Real Estate and Agricultural – These loans are generally considered to possess a moderate inherent risk of loss since they are typically made to relationship customers and are secured by crop production, livestock and related real estate. These loans are vulnerable to two risk factors that are largely outside the control of Company and borrowers: commodity prices and weather conditions. Leases – Equipment leases are generally considered to possess a moderate inherent risk of loss. As Lessor, the Company is subject to both the credit risk of the borrower and the residual value risk of the equipment. Credit risks are underwritten using the same credit criteria the Company would use when making an equipment term loan. Residual value risk is managed through the use of qualified, independent appraisers that establish the residual values the Company uses in structuring a lease. Residential 1st Mortgages and Home Equity Lines and Loans – These loans are generally considered to possess a low inherent risk of loss, although this is not always true as evidenced by the correction in residential real estate values that occurred between 2007 and 2012. The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower's ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers' capacity to repay their obligations may be deteriorating. Consumer & Other – A consumer installment loan portfolio is usually comprised of a large number of small loans scheduled to be amortized over a specific period. Most installment loans are made for consumer purchases. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers' capacity to repay their obligations may be deteriorating. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company's and Bank's regulators, including the Federal Reserve Bank (“FRB”), the California Department of Business Oversight (“DBO”) and the Federal Deposit Insurance Corporation (“FDIC”), as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations. |
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures | Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates anticipated losses using historical data and utilization assumptions. The allowance for off-balance-sheet commitments is included in Interest Payable and Other Liabilities on the Company’s Consolidated Balance Sheet. |
Premises and Equipment | Premises and Equipment Premises, equipment, and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation is computed principally by the straight line method over the estimated useful lives of the assets. Estimated useful lives of buildings range from 30 to 40 years, and for furniture and equipment from 3 to 7 years. Leasehold improvements are amortized over the lesser of the terms of the respective leases, or their useful lives, which are generally 5 to 10 years. Remodeling and capital improvements are capitalized while maintenance and repairs are charged directly to occupancy expense. |
Other Real Estate | Other Real Estate Other real estate, which is included in other assets, is expected to be sold and is comprised of properties no longer utilized for business operations and property acquired through foreclosure in satisfaction of indebtedness. These properties are recorded at fair value less estimated selling costs upon acquisition. Revised estimates to the fair value less cost to sell are reported as adjustments to the carrying amount of the asset, provided that such adjusted value is not in excess of the carrying amount at acquisition. Initial losses on properties acquired through full or partial satisfaction of debt are treated as credit losses and charged to the allowance for credit losses at the time of acquisition. Subsequent declines in value from the recorded amounts, routine holding costs, and gains or losses upon disposition, if any, are included in non-interest expense as incurred. |
Income Taxes | Income Taxes The Company uses the liability method of accounting for income taxes. This method results in the recognition of deferred tax assets and liabilities that are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The deferred provision for income taxes is the result of the net change in the deferred tax asset and deferred tax liability balances during the year. This amount combined with the current taxes payable or refundable results in the income tax expense for the current year. The Company follows the standards set forth in the “Income Taxes” topic of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest expense and penalties associated with unrecognized tax benefits, if any, are included in the provision for income taxes in the Unaudited Consolidated Statements of Income. |
Dividends and Basic Earnings Per Common Share | Dividends and Basic Earnings Per Common Share The Company’s common stock is not traded on any exchange. The shares are primarily held by local residents and are not actively traded. Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. There are no common stock equivalent shares. Therefore, there is no presentation of diluted earnings per common share. See Note 6. |
Segment Reporting | Segment Reporting The “Segment Reporting” topic of the FASB ASC requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a community bank, which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized around discernible lines of business and prefers to work as an integrated unit to customize solutions for its customers, with business line emphasis and product offerings changing over time as needs and demands change. Therefore, the Company reports one segment. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The “Derivatives and Hedging” topic of the FASB ASC establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. All derivatives, whether designated in hedging relationships or not, are required to be recorded on the balance sheet at fair value. Changes in the fair value of those derivatives are accounted for depending on the intended use of the derivative and the resulting designation under specified criteria. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, designed to minimize interest rate risk, the effective portions of the change in the fair value of the derivative are recorded in other comprehensive income (loss), net of related income taxes. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. From time to time, the Company utilizes derivative financial instruments such as interest rate caps, floors, swaps, and collars. These instruments are purchased and/or sold to reduce the Company’s exposure to changing interest rates. The Company marks to market the value of its derivative financial instruments and reflects gain or loss in earnings in the period of change or in other comprehensive income (loss). The Company was not utilizing any derivative instruments as of or for the periods ended September 30, 2015, December 31, 2014 or September 30, 3014. |
Comprehensive Income | Comprehensive Income The “Comprehensive Income” topic of the FASB ASC establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Other comprehensive income (loss) refers to revenues, expenses, gains, and losses that U.S. GAAP recognize as changes in value to an enterprise but are excluded from net income. For the Company, comprehensive income includes net income and changes in fair value of its available-for-sale investment securities. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Recent Accounting Pronounceme18
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | In January, 2014, the FASB issued Accounting Standards Update (ASU) 2014-04 - Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure This Update clarifies when an in-substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The objective of the amendments in this Update is to reduce diversity in practice. An in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operation, cash flows, or disclosure. In May 2014, the FASB issued ASU 2014-09 - Revenue from Contracts with Customers (Topic 606) , which will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Accounting Standards Codification. The amendments in this update affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts, including leases and insurance contracts, are within the scope of other standards. The amendments establish a core principle requiring the recognition of revenue to depict the transfer of goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. The amendments also require expanded disclosures concerning the nature, amount, timing and uncertainty of revenues and cash flows arising from contracts with customers. For public entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and must be applied retrospectively. Early application is not permitted. Management is currently evaluating the impact of adoption. In August 2015, the FASB issued ASU 2015-14 - Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investment Securities [Abstract] | |
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-Sale | The amortized cost, fair values, and unrealized gains and losses of the securities available-for-sale ( in thousands): Amortized Gross Unrealized Fair/Book September 30, 2015 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 41,448 $ 65 $ - $ 41,513 US Treasury Notes 30,069 231 - 30,300 Mortgage Backed Securities (1) 251,483 5,024 312 256,195 Corporate Securities 16,235 - - 16,235 Other 485 - - 485 Total $ 339,720 $ 5,320 $ 312 $ 344,728 Amortized Gross Unrealized Fair/Book December 31, 2014 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 78,051 $ 61 $ 3 $ 78,109 Mortgage Backed Securities (1) 283,636 4,969 657 287,948 Other 485 - - 485 Total $ 362,172 $ 5,030 $ 660 $ 366,542 Amortized Gross Unrealized Fair/Book September 30, 2014 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 13,220 $ 141 $ - $ 13,361 Mortgage Backed Securities (1) 321,187 3,936 2,443 322,680 Other 485 - - 485 Total $ 334,892 $ 4,077 $ 2,443 $ 336,526 (1) |
Book Values, Estimated Fair Values and Unrealized Gains and Losses of Investments Classified as Held-to-Maturity | The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity (in thousands): Book Gross Unrealized Fair September 30, 2015 Value Gains Losses Value Obligations of States and Political Subdivisions $ 64,134 $ 658 $ 26 $ 64,766 Other 2,123 - - 2,123 Total $ 66,257 $ 658 $ 26 $ 66,889 Book Gross Unrealized Fair December 31, 2014 Value Gains Losses Value Obligations of States and Political Subdivisions $ 61,716 $ 782 $ 10 $ 62,488 Other 2,147 - - 2,147 Total $ 63,863 $ 782 $ 10 $ 64,635 Book Gross Unrealized Fair September 30, 2014 Value Gains Losses Value Obligations of States and Political Subdivisions $ 67,206 $ 725 $ 17 $ 67,914 Other 2,235 - - 2,235 Total $ 69,441 $ 725 $ 17 $ 70,149 |
Amortized Cost and Estimated Fair Values of Investment Securities by Contractual Maturity | The amortized cost and estimated fair values of investment securities at September 30, 2015 by contractual maturity are shown in the following table (in thousands): Available-for-Sale Held-to-Maturity September 30, 2015 Amortized Cost Fair/Book Value Book Value Fair Value Within one year $ 26,719 $ 26,722 $ 2,124 $ 2,123 After one year through five years 61,518 61,811 15,386 15,462 After five years through ten years - - 9,286 9,382 After ten years - - 39,461 39,922 88,237 88,533 66,257 66,889 Investment securities not due at a single maturity date: Mortgage Backed Securities 251,483 256,195 - - Total $ 339,720 $ 344,728 $ 66,257 $ 66,889 |
Investments with Gross Unrealized Losses and Their Market Value Aggregated by Investment Category and Length of Time that Individual Securities Have Been in a Continuous Unrealized Loss Position | The following tables show those investments with gross unrealized losses and their market value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at the dates indicated (in thousands) Less Than 12 Months 12 Months or More Total September 30, 2015 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale Mortgage Backed Securities $ 36,898 $ 256 $ 7,593 $ 56 $ 44,491 $ 312 Total $ 36,898 $ 256 $ 7,593 $ 56 $ 44,491 $ 312 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 1,991 $ 26 $ - $ - $ 1,991 $ 26 Total $ 1,991 $ 26 $ - $ - $ 1,991 $ 26 Less Than 12 Months 12 Months or More Total December 31, 2014 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale Government Agency & Government-Sponsored Entities $ 66,980 $ 3 $ - $ - $ 66,980 $ 3 Mortgage Backed Securities 14,487 151 33,574 506 48,061 657 Total $ 81,467 $ 154 $ 33,574 $ 506 $ 115,041 $ 660 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 849 $ 5 $ 876 $ 5 $ 1,725 $ 10 Total $ 849 $ 5 $ 876 $ 5 $ 1,725 $ 10 Less Than 12 Months 12 Months or More Total September 30, 2014 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale Mortgage Backed Securities $ 62,825 $ 240 $ 64,968 $ 2,203 127,793 $ 2,443 Total $ 62,825 $ 240 $ 64,968 $ 2,203 $ 127,793 $ 2,443 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 1,943 $ 11 $ 2,556 $ 6 $ 4,499 $ 17 Total $ 1,943 $ 11 $ 2,556 $ 6 $ 4,499 $ 17 |
Proceeds from Sales and Calls of Securities | Proceeds from sales and calls of securities were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 Proceeds $ 53,465 $ 85,433 $ 58,000 $ 95,349 Gains 266 811 272 845 Losses - 807 - 807 |
Loans & Leases and Allowance 20
Loans & Leases and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Loans & Leases and Allowance for Credit Losses [Abstract] | |
Allocation of Allowance for Credit Losses by Portfolio Segment and by Impairment Methodology | The following tables show the allocation of the allowance for credit losses by portfolio segment and by impairment methodology at the dates indicated (in thousands) September 30, 2015 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2015 $ 7,842 $ 4,185 $ 1,669 $ 1,022 $ 2,426 $ 6,104 $ 8,195 $ 218 $ 2,211 $ 1,529 $ 35,401 Charge-Offs - - - - - - (12 ) (55 ) - - (67 ) Recoveries 2,939 - - 4 85 3 24 51 - - 3,106 Provision (1,536 ) 3,295 719 (274 ) (356 ) (969 ) 38 2 860 (1,129 ) 650 Ending Balance- September 30, 2015 $ 9,245 $ 7,480 $ 2,388 $ 752 $ 2,155 $ 5,138 $ 8,245 $ 216 $ 3,071 $ 400 $ 39,090 Third Quarter Allowance for Credit Losses: Beginning Balance- July 1, 2015 $ 8,591 $ 7,272 $ 2,177 $ 731 $ 2,073 $ 5,046 $ 8,878 $ 217 $ 2,532 $ 1,520 $ 39,037 Charge-Offs - - - - - - - (21 ) - - (21 ) Recoveries - - - 3 37 1 20 13 - - 74 Provision 654 208 211 18 45 91 (653 ) 7 539 (1,120 ) - Ending Balance- September 30, 2015 $ 9,245 $ 7,480 $ 2,388 $ 752 $ 2,155 $ 5,138 $ 8,245 $ 216 $ 3,071 $ 400 $ 39,090 Ending Balance Individually Evaluated for Impairment 61 - - 70 35 120 879 31 - - 1,196 Ending Balance Collectively Evaluated for Impairment 9,184 7,480 2,388 682 2,120 5,018 7,366 185 3,071 400 37,894 Loans & Leases: Ending Balance $ 558,743 $ 432,610 $ 161,762 $ 196,893 $ 31,833 $ 249,783 $ 210,491 $ 6,735 $ 61,420 $ - $ 1,910,270 Ending Balance Individually Evaluated for Impairment 4,120 - 4,307 2,036 1,264 630 4,797 37 - - 17,191 Ending Balance Collectively Evaluated for Impairment $ 554,623 $ 432,610 $ 157,455 $ 194,857 $ 30,569 $ 249,153 $ 205,694 $ 6,698 $ 61,420 $ - $ 1,893,079 December 31, 2014 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2014 $ 5,178 $ 3,576 $ 654 $ 1,108 $ 2,767 $ 12,205 $ 5,697 $ 176 $ 639 $ 2,274 $ 34,274 Charge-Offs - - - (73 ) (70 ) - (1 ) (132 ) - - (276 ) Recoveries 11 - - - 58 8 86 65 - - 228 Provision 2,653 609 1,015 (13 ) (329 ) (6,109 ) 2,413 109 1,572 (745 ) 1,175 Ending Balance- December 31, 2014 $ 7,842 $ 4,185 $ 1,669 $ 1,022 $ 2,426 $ 6,104 $ 8,195 $ 218 $ 2,211 $ 1,529 $ 35,401 Ending Balance Individually Evaluated for Impairment 377 - - 422 329 114 914 41 - - 2,197 Ending Balance Collectively Evaluated for Impairment 7,465 4,185 1,669 600 2,097 5,990 7,281 177 2,211 1,529 33,204 Loans & Leases: Ending Balance $ 491,903 $ 357,207 $ 96,519 $ 171,880 $ 33,017 $ 281,963 $ 230,819 $ 4,719 $ 44,217 $ - $ 1,712,244 Ending Balance Individually Evaluated for Impairment 20,066 - 4,386 2,108 1,643 461 4,874 46 - - 33,584 Ending Balance Collectively Evaluated for Impairment $ 471,837 $ 357,207 $ 92,133 $ 169,772 $ 31,374 $ 281,502 $ 225,945 $ 4,673 $ 44,217 $ - $ 1,678,660 September 30, 2014 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2014 $ 5,178 $ 3,576 $ 654 $ 1,108 $ 2,767 $ 12,205 $ 5,697 $ 176 $ 639 $ 2,274 $ 34,274 Charge-Offs - - - (58 ) (70 ) - - (76 ) - - (204 ) Recoveries 12 - - - 54 3 83 45 - - 197 Provision 2,608 370 1,026 92 (76 ) (6,426 ) 2,135 76 1,206 (1,011 ) - Ending Balance- September 30, 2014 $ 7,798 $ 3,946 $ 1,680 $ 1,142 $ 2,675 $ 5,782 $ 7,915 $ 221 $ 1,845 $ 1,263 $ 34,267 Third Quarter Allowance for Credit Losses: Beginning Balance- July 1, 2014 $ 6,991 $ 3,677 $ 1,290 $ 1,094 $ 2,737 $ 8,291 $ 7,377 $ 193 $ 1,108 $ 1,532 $ 34,290 Charge-Offs - - - (25 ) (5 ) - - (31 ) - - (61 ) Recoveries 12 - - - 3 1 6 16 - - 38 Provision 795 269 390 73 (60 ) (2,510 ) 532 43 737 (269 ) - Ending Balance- September 30, 2014 $ 7,798 $ 3,946 $ 1,680 $ 1,142 $ 2,675 $ 5,782 $ 7,915 $ 221 $ 1,845 $ 1,263 $ 34,267 Ending Balance Individually Evaluated for Impairment 190 - 239 370 328 120 912 42 - - 2,201 Ending Balance Collectively Evaluated for Impairment 7,608 3,946 1,441 772 2,347 5,662 7,003 179 1,845 1,263 32,066 Loans & Leases: Ending Balance $ 473,505 $ 364,161 $ 104,463 $ 168,310 $ 33,283 $ 237,521 $ 192,804 $ 4,816 $ 36,908 $ - $ 1,615,771 Ending Balance Individually Evaluated for Impairment 20,175 - 4,419 1,847 1,658 518 4,877 42 - - 33,536 Ending Balance Collectively Evaluated for Impairment 453,330 364,161 100,044 166,463 31,625 237,003 187,927 4,774 36,908 - 1,582,235 |
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings | The following tables show the loan & lease portfolio allocated by management’s internal risk ratings at the dates indicated (in thousands) September 30, 2015 Pass Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 550,011 $ 8,038 $ 694 $ 558,743 Agricultural Real Estate 432,610 - - 432,610 Real Estate Construction 160,133 1,629 - 161,762 Residential 1st Mortgages 195,477 733 683 196,893 Home Equity Lines & Loans 31,149 78 606 31,833 Agricultural 249,116 437 230 249,783 Commercial 197,193 9,752 3,546 210,491 Consumer & Other 6,461 - 274 6,735 Leases 61,420 - - 61,420 Total $ 1,883,570 $ 20,667 $ 6,033 $ 1,910,270 December 31, 2014 Pass Special Mention Substandard Total Loans Loans & Leases: Commercial Real Estate $ 483,146 $ 8,651 $ 106 $ 491,903 Agricultural Real Estate 357,207 - - 357,207 Real Estate Construction 94,887 1,632 - 96,519 Residential 1st Mortgages 170,462 744 674 171,880 Home Equity Lines and Loans 32,054 85 878 33,017 Agricultural 281,232 679 52 281,963 Commercial 211,036 18,143 1,640 230,819 Consumer & Other 4,449 - 270 4,719 Leases 44,217 - - 44,217 Total $ 1,678,690 $ 29,934 $ 3,620 $ 1,712,244 September 30, 2014 Pass Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 464,714 $ 8,683 $ 108 $ 473,505 Agricultural Real Estate 364,161 - - 364,161 Real Estate Construction 102,831 1,632 - 104,463 Residential 1st Mortgages 166,884 752 674 168,310 Home Equity Lines & Loans 32,309 88 886 33,283 Agricultural 236,760 695 66 237,521 Commercial 168,215 22,929 1,660 192,804 Consumer & Other 4,520 - 296 4,816 Leases 36,908 - - 36,908 Total $ 1,577,302 $ 34,779 $ 3,690 $ 1,615,771 |
Aging Analysis of Loan & Lease Portfolio by Time Past Due | The following tables show an aging analysis of the loan & lease portfolio by the time past due at the dates indicated (in thousands) September 30, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ 696 $ 696 $ 558,047 $ 558,743 Agricultural Real Estate - - - - - 432,610 432,610 Real Estate Construction - - - - - 161,762 161,762 Residential 1st Mortgages 74 196 - 68 338 196,555 196,893 Home Equity Lines & Loans 150 - - 576 726 31,107 31,833 Agricultural - - - 8 8 249,775 249,783 Commercial - - - 1,545 1,545 208,946 210,491 Consumer & Other 6 - - 11 17 6,718 6,735 Leases - - - - - 61,420 61,420 Total $ 230 $ 196 $ - $ 2,904 $ 3,330 $ 1,906,940 $ 1,910,270 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 491,903 $ 491,903 Agricultural Real Estate - - - - - 357,207 357,207 Real Estate Construction - - - - - 96,519 96,519 Residential 1st Mortgages - - - 77 77 171,803 171,880 Home Equity Lines and Loans 79 - - 576 655 32,362 33,017 Agricultural - - - 18 18 281,945 281,963 Commercial - - - 1,586 1,586 229,233 230,819 Consumer & Other 10 - - 13 23 4,696 4,719 Leases - - - - - 44,217 44,217 Total $ 89 $ - $ - $ 2,270 $ 2,359 $ 1,709,885 $ 1,712,244 September 30, 2014 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 473,505 $ 473,505 Agricultural Real Estate - - - - - 364,161 364,161 Real Estate Construction - - - - - 104,463 104,463 Residential 1st Mortgages - - - 283 283 168,027 168,310 Home Equity Lines & Loans 92 - - 575 667 32,616 33,283 Agricultural - - - 25 25 237,496 237,521 Commercial - - - 1,600 1,600 191,204 192,804 Consumer & Other 12 - - 14 26 4,790 4,816 Leases - - - - - 36,908 36,908 Total $ 104 $ - $ - $ 2,497 $ 2,601 $ 1,613,170 $ 1,615,771 |
Impaired Loans & Leases | The following tables show information related to impaired loans & leases for the periods indicated (in thousands) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 September 30, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 821 $ 821 $ - $ 812 $ 2 $ 468 $ 6 Residential 1st Mortgages 557 623 - 561 4 471 12 Home Equity Lines & Loans 619 659 - 620 1 531 2 Agricultural 203 216 - 107 - 42 - Commercial 3,118 3,118 - 3,122 26 1,578 54 $ 5,318 $ 5,437 $ - $ 5,222 $ 33 $ 3,090 $ 74 With an allowance recorded: Residential 1st Mortgages $ 352 $ 424 $ 17 $ 354 $ 4 $ 453 12 Home Equity Lines & Loans 135 153 7 136 2 273 4 Agricultural 427 427 120 435 7 443 21 Commercial 1,679 1,803 879 1,687 2 3,233 29 Consumer & Other 37 43 31 39 - 42 2 $ 2,630 $ 2,850 $ 1,054 $ 2,651 $ 15 $ 4,444 $ 68 Total $ 7,948 $ 8,287 $ 1,054 $ 7,873 $ 48 $ 7,534 $ 142 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ - $ - $ - $ 49 $ 4 Home Equity Lines and Loans - - - 169 - Agricultural - - - 15 - Commercial - - - 1,620 54 $ - $ - $ - $ 1,853 $ 58 With an allowance recorded: Commercial Real Estate $ 92 $ 92 $ 2 $ 47 $ 4 Residential 1st Mortgages 937 1,069 187 612 9 Home Equity Lines and Loans 951 1,020 190 803 10 Agricultural 461 473 114 473 28 Commercial 4,742 4,813 910 3,182 54 Consumer & Other 46 51 41 46 2 $ 7,229 $ 7,518 $ 1,444 $ 5,163 $ 107 Total $ 7,229 $ 7,518 $ 1,444 $ 7,016 $ 165 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 September 30, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ - $ - $ - $ 49 $ - $ 82 $ 4 Home Equity Lines & Loans - - - - - 226 - Agricultural - - - 14 - 26 - Commercial - - - 1,575 - 2,740 54 $ - $ - $ - $ 1,638 $ - $ 3,074 $ 58 With an allowance recorded: Commercial Real Estate $ 94 $ 94 $ 2 $ 47 $ 2 $ 16 $ 2 Residential 1st Mortgages 658 771 131 550 1 522 3 Home Equity Lines & Loans 955 1,008 191 934 3 710 6 Agricultural 483 493 119 478 7 477 21 Commercial 4,744 4,801 908 3,179 27 2,144 27 Consumer & Other 43 47 43 44 1 47 2 $ 6,977 $ 7,214 $ 1,394 $ 5,232 $ 41 $ 3,916 $ 61 Total $ 6,977 $ 7,214 $ 1,394 $ 6,870 $ 41 $ 6,990 $ 119 |
Loans & Leases by Class Modified as Troubled Debt Restructured Loans | The following table presents loans or leases by class modified as troubled debt restructured loans or leases during the three and nine-month periods ended September 30, 2015 (in thousands) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Agricultural 1 $ 194 $ 194 1 $ 194 $ 194 Commercial - - - 1 131 119 Total 1 $ 194 $ 194 2 $ 325 $ 313 The following table presents loans or leases by class modified as TDRs for the period ended December 31, 2014 (in thousands) December 31, 2014 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 5 $ 857 $ 804 Home Equity Lines and Loans 3 98 89 Agricultural 1 32 32 Commercial 1 18 18 Consumer & Other 1 7 7 Total 11 $ 1,012 $ 950 The following table presents loans or leases by class modified as troubled debt restructured loans or leases during the three and nine-month periods ended September 30, 2014 (in thousands) Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 1 $ 248 $ 222 4 $ 565 $ 528 Home Equity Lines & Loans 1 51 47 3 98 89 Agricultural - - - 1 32 32 Total 2 $ 299 $ 269 8 $ 695 $ 649 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Information about Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Fair Value Measurements At September 30, 2015, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 41,513 $ - $ 41,513 $ - US Treasury Notes 30,300 30,300 - - Mortgage Backed Securities 256,195 - 256,195 - Corporate Securities 16,235 - 16,235 - Other 485 175 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 344,728 $ 30,475 $ 314,253 $ - Fair Value Measurements At December 31, 2014, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 78,109 $ 10,005 $ 68,104 $ - Mortgage Backed Securities 287,948 - 287,948 - Other 485 175 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 366,542 $ 10,180 $ 356,362 $ - Fair Value Measurements At September 30, 2014, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 13,361 $ 13,361 $ - $ - Mortgage Backed Securities 322,680 39,566 283,114 - Other 485 175 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 336,526 $ 53,102 $ 283,424 $ - |
Information about Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following tables present information about the Company’s other real estate and impaired loans or leases, classes of assets or liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans or leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment of a specific reserve. Fair Value Measurements At September 30, 2015, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Impaired Loans Residential 1st Mortgage $ 334 $ - $ - $ 334 Home Equity Lines and Loans 126 - - 126 Agricultural 308 - - 308 Commercial 800 - - 800 Consumer 5 5 Total Impaired Loans 1,573 - - 1,573 Other Real Estate Real Estate Construction 2,441 - - 2,441 Total Other Real Estate 2,441 - - 2,441 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 4,014 $ - $ - $ 4,014 Fair Value Measurements At December 31, 2014, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Impaired Loans Commercial Real Estate $ 90 $ - $ - $ 90 Residential 1st Mortgage 748 - - 748 Home Equity Lines and Loans 759 - - 759 Agricultural 346 - - 346 Commercial 3,832 - - 3,832 Consumer 6 6 Total Impaired Loans 5,781 - - 5,781 Other Real Estate Real Estate Construction 2,441 - - 2,441 Agricultural Real Estate 858 - - 858 Total Other Real Estate 3,299 - - 3,299 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 9,080 $ - $ - $ 9,080 Fair Value Measurements At September 30, 2014, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Impaired Loans Commercial Real Estate $ 92 $ - $ - $ 92 Residential 1st Mortgages 526 - - 526 Home Equity Lines and Loans 763 - - 763 Agricultural 363 - - 363 Commercial 3,836 - - 3,836 Total Impaired Loans 5,580 - - 5,580 Other Real Estate Real Estate Construction 2,441 - - 2,441 Agricultural Real Estate 858 - - 858 Total Other Real Estate 3,299 - - 3,299 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 8,879 $ - $ - $ 8,879 |
Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on a Nonrecurring Basis | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2015: (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans Residential 1st Mortgage $ 334 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 2% -5%, 4 % Home Equity Lines and Loans $ 126 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% - 3%, 2 % Agricultural $ 308 Income Approach Capitalization Rate 16% - 16%, 16 % Commercial $ 800 Income Approach Capitalization Rate 16% - 16%, 16 % Consumer $ 5 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% - 1%, 1 % Other Real Estate Real Estate Construction $ 2,441 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10% - 10%, 10 % |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Book Value and Estimated Fair Value of Financial Instruments | The following tables summarize the book value and estimated fair value of financial instruments for the periods indicated. Fair Value of Financial Instruments Using September 30, 2015 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 50,300 $ 50,300 $ - $ - $ 50,300 Investment Securities Available-for-Sale: Government Agency & Government-Sponsored Entities 41,513 - 41,513 - 41,513 U.S. Treasury Notes 30,300 30,300 - - 30,300 Mortgage Backed Securities 256,195 - 256,195 - 256,195 Corporate Securities 16,235 - 16,235 - 16,235 Other 485 175 310 - 485 Total Investment Securities Available-for-Sale 344,728 30,475 314,253 - 344,728 Investment Securities Held-to-Maturity: Obligations of States and Political Subdivisions 64,134 - 51,966 12,800 64,766 Other 2,123 - 2,123 - 2,123 Total Investment Securities Held-to-Maturity 66,257 - 54,089 12,800 66,889 FHLB Stock 7,795 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance: Commercial Real Estate 549,498 - - 552,323 552,323 Agricultural Real Estate 425,130 - - 415,304 415,304 Real Estate Construction 159,374 - - 159,295 159,295 Residential 1st Mortgages 196,141 - - 199,565 199,565 Home Equity Lines and Loans 29,678 - - 31,314 31,314 Agricultural 244,645 - - 243,495 243,495 Commercial 202,246 - - 200,932 200,932 Consumer & Other 6,519 - - 6,543 6,543 Leases 58,349 58,854 58,854 Unallocated Allowance (400 ) - - (400 ) (400 ) Total Loans & Leases, Net of Deferred Fees & Allowance 1,871,180 - - 1,867,225 1,867,225 Accrued Interest Receivable 10,548 - 10,548 - 10,548 Liabilities: Deposits: Demand 603,430 603,430 - - 603,430 Interest Bearing Transaction 373,193 373,193 - - 373,193 Savings and Money Market 672,052 672,052 - - 672,052 Time 483,967 - 484,018 - 484,018 Total Deposits 2,132,642 1,648,675 484,018 - 2,132,693 FHLB Advances & Securities Sold Under Agreement to Repurchase 5,500 - 5,500 - 5,500 Subordinated Debentures 10,310 - 6,292 - 6,292 Accrued Interest Payable 590 - 590 - 590 Fair Value of Financial Instruments Using December 31, 2014 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 77,125 $ 77,125 $ - $ - $ 77,125 Investment Securities Available-for-Sale: Government Agency & Government-Sponsored Entities 78,109 10,005 68,104 - 78,109 Mortgage Backed Securities 287,948 - 287,948 - 287,948 Other 485 175 310 - 485 Total Investment Securities Available-for-Sale 366,542 10,180 356,362 - 366,542 Investment Securities Held-to-Maturity: Obligations of States and Political Subdivisions 61,716 - 49,085 13,403 62,488 Other 2,147 - 2,147 - 2,147 Total Investment Securities Held-to-Maturity 63,863 - 51,232 13,403 64,635 FHLB Stock 7,677 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance: Commercial Real Estate 484,061 - - 481,037 481,037 Agricultural Real Estate 353,022 - - 353,288 353,288 Real Estate Construction 94,850 - - 95,022 95,022 Residential 1st Mortgages 170,858 - - 173,916 173,916 Home Equity Lines and Loans 30,591 - - 32,456 32,456 Agricultural 275,859 - - 274,195 274,195 Commercial 222,624 - - 222,175 222,175 Consumer & Other 4,501 - - 4,535 4,535 Leases 42,006 - - 40,298 40,298 Unallocated Allowance (1,529 ) - - (1,529 ) (1,529 ) Total Loans & Leases, Net of Deferred Fees & Allowance 1,676,843 - - 1,675,393 1,675,393 Accrued Interest Receivable 7,797 - 7,797 - 7,797 Liabilities: Deposits: Demand 610,133 610,133 - - 610,133 Interest Bearing Transaction 341,397 341,397 - - 341,397 Savings and Money Market 644,260 644,260 - - 644,260 Time 468,283 - 468,161 - 468,161 Total Deposits 2,064,073 1,595,790 468,161 - 2,063,951 Subordinated Debentures 10,310 - 6,227 - 6,227 Accrued Interest Payable 378 - 378 - 378 Fair Value of Financial Instruments Using September 30, 2014 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 39,216 $ 39,216 $ - $ - $ 39,216 Investment Securities Available-for-Sale: Government Agency & Government-Sponsored Entities 13,361 13,361 - - 13,361 Mortgage Backed Securities 322,680 39,566 283,114 - 322,680 Other 485 175 310 - 485 Total Investment Securities Available-for-Sale 336,526 53,102 283,424 - 336,526 Investment Securities Held-to-Maturity: Obligations of States and Political Subdivisions 67,206 - 54,375 13,539 67,914 Other 2,235 - 2,235 - 2,235 Total Investment Securities Held-to-Maturity 69,441 - 56,610 13,539 70,149 FHLB Stock 7,677 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance: Commercial Real Estate 465,707 - - 462,469 462,469 Agricultural Real Estate 360,215 - - 360,976 360,976 Real Estate Construction 102,783 - - 103,095 103,095 Residential 1st Mortgages 167,168 - - 169,971 169,971 Home Equity Lines and Loans 30,608 - - 32,601 32,601 Agricultural 231,739 - - 230,572 230,572 Commercial 184,889 - - 184,466 184,466 Consumer & Other 4,595 - - 4,619 4,619 Leases 35,063 33,519 33,519 Unallocated Allowance (1,263 ) - - (1,263 ) (1,263 ) Total Loans & Leases, Net of Deferred Fees & Allowance 1,581,504 - - 1,581,025 1,581,025 Accrued Interest Receivable 8,986 - 8,986 - 8,986 Liabilities: Deposits: Demand 516,093 516,093 - - 516,093 Interest Bearing Transaction 326,368 326,368 - - 326,368 Savings and Money Market 614,137 614,137 - - 614,137 Time 419,615 - 419,663 - 419,663 Total Deposits 1,876,213 1,456,598 419,663 - 1,876,261 FHLB Advances & Securities Sold Under Agreement to Repurchase 36,000 - 36,000 - 36,000 Subordinated Debentures 10,310 - 6,227 - 6,227 Accrued Interest Payable 314 - 314 - 314 |
Dividends and Basic Earnings 23
Dividends and Basic Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Dividends and Basic Earnings Per Common Share [Abstract] | |
Calculation of Basic Earnings per Share | Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. The following table calculates the basic earnings per common share for the three and six months ended September 30, 2015 and 2014. Three Months Ended September 30, Nine Months Ended September 30, (net income in thousands) 2015 2014 2015 2014 Net Income $ 7,040 $ 6,432 $ 20,192 $ 18,818 Weighted Average Number of Common Shares Outstanding 785,852 777,882 785,668 777,882 Basic Earnings Per Common Share Amount $ 8.96 $ 8.27 $ 25.70 $ 24.19 |
Significant Accounting Polici24
Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2015ComponentCategoryRiskFactorSegment | |
Investment Securities [Abstract] | |
Number of components into which amount of impairment is split | 2 |
Loans & Leases [Abstract] | |
Period after which loans are placed on non accrual status, minimum | 90 days |
Allowance for Credit Losses [Abstract] | |
Consecutive months of payments | 6 months |
Number of primary components of overall allowance for credit losses | 3 |
Number of categories into which risk ratings are grouped | Category | 5 |
Number of risk factors on agricultural loans | RiskFactor | 2 |
Income Taxes [Abstract] | |
Percentage likely of being realized upon settlement with the applicable taxing authority, minimum | 50.00% |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 1 |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Investment Securities, Amortize
Investment Securities, Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized cost | $ 339,720 | $ 362,172 | $ 334,892 | |
Gross unrealized gains | 5,320 | 5,030 | 4,077 | |
Gross unrealized losses | 312 | 660 | 2,443 | |
Fair/Book value | 344,728 | 366,542 | 336,526 | |
Schedule of Held-to-maturity Securities [Line Items] | ||||
Book value | 66,257 | 63,863 | 69,441 | |
Gross unrealized gains | 658 | 782 | 725 | |
Gross unrealized losses | 26 | 10 | 17 | |
Fair value | 66,889 | 64,635 | 70,149 | |
Government Agency & Government Sponsored Entities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized cost | 41,448 | 78,051 | 13,220 | |
Gross unrealized gains | 65 | 61 | 141 | |
Gross unrealized losses | 0 | 3 | 0 | |
Fair/Book value | 41,513 | 78,109 | 13,361 | |
US Treasury Notes [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized cost | 30,069 | |||
Gross unrealized gains | 231 | |||
Gross unrealized losses | 0 | |||
Fair/Book value | 30,300 | |||
Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized cost | [1] | 251,483 | 283,636 | 321,187 |
Gross unrealized gains | [1] | 5,024 | 4,969 | 3,936 |
Gross unrealized losses | [1] | 312 | 657 | 2,443 |
Fair/Book value | [1] | 256,195 | 287,948 | 322,680 |
Corporate Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized cost | 16,235 | |||
Gross unrealized gains | 0 | |||
Gross unrealized losses | 0 | |||
Fair/Book value | 16,235 | |||
Other [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized cost | 485 | 485 | 485 | |
Gross unrealized gains | 0 | 0 | 0 | |
Gross unrealized losses | 0 | 0 | 0 | |
Fair/Book value | 485 | 485 | 485 | |
Obligations of States and Political Subdivisions [Member] | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Book value | 64,134 | 61,716 | 67,206 | |
Gross unrealized gains | 658 | 782 | 725 | |
Gross unrealized losses | 26 | 10 | 17 | |
Fair value | 64,766 | 62,488 | 67,914 | |
Other [Member] | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Book value | 2,123 | 2,147 | 2,235 | |
Gross unrealized gains | 0 | 0 | 0 | |
Gross unrealized losses | 0 | 0 | 0 | |
Fair value | $ 2,123 | $ 2,147 | $ 2,235 | |
[1] | All Mortgage Backed Securities consist of securities collateralized by residential real estate and were issued by an agency or government sponsored entity of the U.S. government. |
Investment Securities, Contract
Investment Securities, Contract Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Amortized Cost [Abstract] | |||
Within one year | $ 26,719 | ||
After one year through five years | 61,518 | ||
After five years through ten years | 0 | ||
After ten years | 0 | ||
Amortized cost, excluding investment securities not due at a single maturity date | 88,237 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 251,483 | ||
Amortized cost | 339,720 | ||
Fair/Book Value [Abstract] | |||
Within one year | 26,722 | ||
After one year through five years | 61,811 | ||
After five years through ten years | 0 | ||
After ten years | 0 | ||
Fair/Book value, excluding investment securities not due at a single maturity date | 88,533 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 256,195 | ||
Fair/Book value | 344,728 | $ 366,542 | $ 336,526 |
Book Value [Abstract] | |||
Within one year | 2,124 | ||
After one year through five years | 15,386 | ||
After five years through ten years | 9,286 | ||
After ten years | 39,461 | ||
Book value, excluding investment securities not due at a single maturity date | 66,257 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 0 | ||
Book value | 66,257 | 63,863 | 69,441 |
Fair Value [Abstract] | |||
Within one year | 2,123 | ||
After one year through five years | 15,462 | ||
After five years through ten years | 9,382 | ||
After ten years | 39,922 | ||
Fair value, excluding investment securities not due at a single maturity date | 66,889 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 0 | ||
Fair value | $ 66,889 | $ 64,635 | $ 70,149 |
Investment Securities, Securiti
Investment Securities, Securities in Continuous Unrealized Loss Position (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($)Security | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 36,898 | $ 81,467 | $ 62,825 |
Less than 12 months, unrealized loss | 256 | 154 | 240 |
12 months or more, fair value | 7,593 | 33,574 | 64,968 |
12 months or more, unrealized loss | 56 | 506 | 2,203 |
Total, fair value | 44,491 | 115,041 | 127,793 |
Total, unrealized loss | $ 312 | 660 | 2,443 |
Number of investment securities held | Security | 261 | ||
Less than 12 months, number of positions | Security | 10 | ||
12 months or more, number of positions | Security | 1 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 1,991 | 849 | 1,943 |
Less than 12 months, unrealized loss | 26 | 5 | 11 |
12 months or more, fair value | 0 | 876 | 2,556 |
12 months or more, unrealized loss | 0 | 5 | 6 |
Total, fair value | 1,991 | 1,725 | 4,499 |
Total, unrealized loss | 26 | 10 | 17 |
Government Agency & Government Sponsored Entities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 66,980 | ||
Less than 12 months, unrealized loss | 3 | ||
12 months or more, fair value | 0 | ||
12 months or more, unrealized loss | 0 | ||
Total, fair value | 66,980 | ||
Total, unrealized loss | 3 | ||
Mortgage Backed Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 36,898 | 14,487 | 62,825 |
Less than 12 months, unrealized loss | 256 | 151 | 240 |
12 months or more, fair value | 7,593 | 33,574 | 64,968 |
12 months or more, unrealized loss | 56 | 506 | 2,203 |
Total, fair value | 44,491 | 48,061 | 127,793 |
Total, unrealized loss | $ 312 | 657 | 2,443 |
Less than 12 months, number of positions | Security | 5 | ||
12 months or more, number of positions | Security | 1 | ||
Obligations of States and Political Subdivisions [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 1,991 | 849 | 1,943 |
Less than 12 months, unrealized loss | 26 | 5 | 11 |
12 months or more, fair value | 0 | 876 | 2,556 |
12 months or more, unrealized loss | 0 | 5 | 6 |
Total, fair value | 1,991 | 1,725 | 4,499 |
Total, unrealized loss | $ 26 | $ 10 | $ 17 |
Less than 12 months, number of positions | Security | 5 | ||
12 months or more, number of positions | Security | 0 | ||
Municipal Bonds [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Percentage of bank qualified municipal bond portfolio rated | 98.00% | ||
Percentage of portfolio not rated | 2.00% |
Investment Securities, Proceeds
Investment Securities, Proceeds from Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Proceeds from sales and calls of securities [Abstract] | ||||
Proceeds | $ 53,465 | $ 85,433 | $ 58,000 | $ 95,349 |
Gains | 266 | 811 | 272 | 845 |
Losses | $ 0 | $ 807 | $ 0 | $ 807 |
Investment Securities, Pledged
Investment Securities, Pledged Securities (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |||
Securities pledged to secure public deposits, FHLB borrowings, and other government agency deposits as required by law | $ 360 | $ 197.8 | $ 178.8 |
Standby Letters of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Standby letter of credit issued by FHLB | $ 165 | ||
Letter of credit maturity date | Dec. 2, 2016 | ||
Maintenance fee on letter of credit per annum | 0.10% |
Loans & Leases and Allowance 30
Loans & Leases and Allowance for Credit Losses, Allocation of The Allowance For Credit Losses by Portfolio Segment and By Impairment Methodology (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | $ 39,037 | $ 34,290 | $ 35,401 | $ 34,274 | $ 34,274 |
Charge-Offs | (21) | (61) | (67) | (204) | (276) |
Recoveries | 74 | 38 | 3,106 | 197 | 228 |
Provision | 0 | 0 | 650 | 0 | 1,175 |
Ending Balance | 39,090 | 34,267 | 39,090 | 34,267 | 35,401 |
Ending Balance Individually Evaluated for Impairment | 1,196 | 2,201 | 1,196 | 2,201 | 2,197 |
Ending Balance Collectively Evaluated for Impairment | 37,894 | 32,066 | 37,894 | 32,066 | 33,204 |
Loans & Leases [Abstract] | |||||
Ending Balance | 1,910,270 | 1,615,771 | 1,910,270 | 1,615,771 | 1,712,244 |
Ending Balance Individually Evaluated for Impairment | 17,191 | 33,536 | 17,191 | 33,536 | 33,584 |
Ending Balance Collectively Evaluated for Impairment | 1,893,079 | 1,582,235 | 1,893,079 | 1,582,235 | 1,678,660 |
Commercial Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 8,591 | 6,991 | 7,842 | 5,178 | 5,178 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 12 | 2,939 | 12 | 11 |
Provision | 654 | 795 | (1,536) | 2,608 | 2,653 |
Ending Balance | 9,245 | 7,798 | 9,245 | 7,798 | 7,842 |
Ending Balance Individually Evaluated for Impairment | 61 | 190 | 61 | 190 | 377 |
Ending Balance Collectively Evaluated for Impairment | 9,184 | 7,608 | 9,184 | 7,608 | 7,465 |
Loans & Leases [Abstract] | |||||
Ending Balance | 558,743 | 473,505 | 558,743 | 473,505 | 491,903 |
Ending Balance Individually Evaluated for Impairment | 4,120 | 20,175 | 4,120 | 20,175 | 20,066 |
Ending Balance Collectively Evaluated for Impairment | 554,623 | 453,330 | 554,623 | 453,330 | 471,837 |
Agricultural Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 7,272 | 3,677 | 4,185 | 3,576 | 3,576 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | 208 | 269 | 3,295 | 370 | 609 |
Ending Balance | 7,480 | 3,946 | 7,480 | 3,946 | 4,185 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 7,480 | 3,946 | 7,480 | 3,946 | 4,185 |
Loans & Leases [Abstract] | |||||
Ending Balance | 432,610 | 364,161 | 432,610 | 364,161 | 357,207 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 432,610 | 364,161 | 432,610 | 364,161 | 357,207 |
Real Estate Construction [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 2,177 | 1,290 | 1,669 | 654 | 654 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | 211 | 390 | 719 | 1,026 | 1,015 |
Ending Balance | 2,388 | 1,680 | 2,388 | 1,680 | 1,669 |
Ending Balance Individually Evaluated for Impairment | 0 | 239 | 0 | 239 | 0 |
Ending Balance Collectively Evaluated for Impairment | 2,388 | 1,441 | 2,388 | 1,441 | 1,669 |
Loans & Leases [Abstract] | |||||
Ending Balance | 161,762 | 104,463 | 161,762 | 104,463 | 96,519 |
Ending Balance Individually Evaluated for Impairment | 4,307 | 4,419 | 4,307 | 4,419 | 4,386 |
Ending Balance Collectively Evaluated for Impairment | 157,455 | 100,044 | 157,455 | 100,044 | 92,133 |
Residential 1st Mortgages [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 731 | 1,094 | 1,022 | 1,108 | 1,108 |
Charge-Offs | 0 | (25) | 0 | (58) | (73) |
Recoveries | 3 | 0 | 4 | 0 | 0 |
Provision | 18 | 73 | (274) | 92 | (13) |
Ending Balance | 752 | 1,142 | 752 | 1,142 | 1,022 |
Ending Balance Individually Evaluated for Impairment | 70 | 370 | 70 | 370 | 422 |
Ending Balance Collectively Evaluated for Impairment | 682 | 772 | 682 | 772 | 600 |
Loans & Leases [Abstract] | |||||
Ending Balance | 196,893 | 168,310 | 196,893 | 168,310 | 171,880 |
Ending Balance Individually Evaluated for Impairment | 2,036 | 1,847 | 2,036 | 1,847 | 2,108 |
Ending Balance Collectively Evaluated for Impairment | 194,857 | 166,463 | 194,857 | 166,463 | 169,772 |
Home Equity Lines and Loans [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 2,073 | 2,737 | 2,426 | 2,767 | 2,767 |
Charge-Offs | 0 | (5) | 0 | (70) | (70) |
Recoveries | 37 | 3 | 85 | 54 | 58 |
Provision | 45 | (60) | (356) | (76) | (329) |
Ending Balance | 2,155 | 2,675 | 2,155 | 2,675 | 2,426 |
Ending Balance Individually Evaluated for Impairment | 35 | 328 | 35 | 328 | 329 |
Ending Balance Collectively Evaluated for Impairment | 2,120 | 2,347 | 2,120 | 2,347 | 2,097 |
Loans & Leases [Abstract] | |||||
Ending Balance | 31,833 | 33,283 | 31,833 | 33,283 | 33,017 |
Ending Balance Individually Evaluated for Impairment | 1,264 | 1,658 | 1,264 | 1,658 | 1,643 |
Ending Balance Collectively Evaluated for Impairment | 30,569 | 31,625 | 30,569 | 31,625 | 31,374 |
Agricultural [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 5,046 | 8,291 | 6,104 | 12,205 | 12,205 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 1 | 1 | 3 | 3 | 8 |
Provision | 91 | (2,510) | (969) | (6,426) | (6,109) |
Ending Balance | 5,138 | 5,782 | 5,138 | 5,782 | 6,104 |
Ending Balance Individually Evaluated for Impairment | 120 | 120 | 120 | 120 | 114 |
Ending Balance Collectively Evaluated for Impairment | 5,018 | 5,662 | 5,018 | 5,662 | 5,990 |
Loans & Leases [Abstract] | |||||
Ending Balance | 249,783 | 237,521 | 249,783 | 237,521 | 281,963 |
Ending Balance Individually Evaluated for Impairment | 630 | 518 | 630 | 518 | 461 |
Ending Balance Collectively Evaluated for Impairment | 249,153 | 237,003 | 249,153 | 237,003 | 281,502 |
Commercial [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 8,878 | 7,377 | 8,195 | 5,697 | 5,697 |
Charge-Offs | 0 | 0 | (12) | 0 | (1) |
Recoveries | 20 | 6 | 24 | 83 | 86 |
Provision | (653) | 532 | 38 | 2,135 | 2,413 |
Ending Balance | 8,245 | 7,915 | 8,245 | 7,915 | 8,195 |
Ending Balance Individually Evaluated for Impairment | 879 | 912 | 879 | 912 | 914 |
Ending Balance Collectively Evaluated for Impairment | 7,366 | 7,003 | 7,366 | 7,003 | 7,281 |
Loans & Leases [Abstract] | |||||
Ending Balance | 210,491 | 192,804 | 210,491 | 192,804 | 230,819 |
Ending Balance Individually Evaluated for Impairment | 4,797 | 4,877 | 4,797 | 4,877 | 4,874 |
Ending Balance Collectively Evaluated for Impairment | 205,694 | 187,927 | 205,694 | 187,927 | 225,945 |
Consumer & Other [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 217 | 193 | 218 | 176 | 176 |
Charge-Offs | (21) | (31) | (55) | (76) | (132) |
Recoveries | 13 | 16 | 51 | 45 | 65 |
Provision | 7 | 43 | 2 | 76 | 109 |
Ending Balance | 216 | 221 | 216 | 221 | 218 |
Ending Balance Individually Evaluated for Impairment | 31 | 42 | 31 | 42 | 41 |
Ending Balance Collectively Evaluated for Impairment | 185 | 179 | 185 | 179 | 177 |
Loans & Leases [Abstract] | |||||
Ending Balance | 6,735 | 4,816 | 6,735 | 4,816 | 4,719 |
Ending Balance Individually Evaluated for Impairment | 37 | 42 | 37 | 42 | 46 |
Ending Balance Collectively Evaluated for Impairment | 6,698 | 4,774 | 6,698 | 4,774 | 4,673 |
Leases [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 2,532 | 1,108 | 2,211 | 639 | 639 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | 539 | 737 | 860 | 1,206 | 1,572 |
Ending Balance | 3,071 | 1,845 | 3,071 | 1,845 | 2,211 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 3,071 | 1,845 | 3,071 | 1,845 | 2,211 |
Loans & Leases [Abstract] | |||||
Ending Balance | 61,420 | 36,908 | 61,420 | 36,908 | 44,217 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 61,420 | 36,908 | 61,420 | 36,908 | 44,217 |
Unallocated [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,520 | 1,532 | 1,529 | 2,274 | 2,274 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | (1,120) | (269) | (1,129) | (1,011) | (745) |
Ending Balance | 400 | 1,263 | 400 | 1,263 | 1,529 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 400 | 1,263 | 400 | 1,263 | 1,529 |
Loans & Leases [Abstract] | |||||
Ending Balance | 0 | 0 | 0 | 0 | 0 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Restructured Loans [Member] | |||||
Loans & Leases [Abstract] | |||||
Ending Balance Individually Evaluated for Impairment | $ 9,300 | $ 26,600 | $ 9,300 | $ 26,600 | $ 26,400 |
Loans & Leases and Allowance 31
Loans & Leases and Allowance for Credit Losses, Loan Portfolio Allocated by Management's Internal Risk Ratings (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | $ 1,910,270 | $ 1,712,244 | $ 1,615,771 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 1,883,570 | 1,678,690 | 1,577,302 |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 20,667 | 29,934 | 34,779 |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 6,033 | 3,620 | 3,690 |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Loss [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 558,743 | 491,903 | 473,505 |
Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 550,011 | 483,146 | 464,714 |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 8,038 | 8,651 | 8,683 |
Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 694 | 106 | 108 |
Agricultural Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 432,610 | 357,207 | 364,161 |
Agricultural Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 432,610 | 357,207 | 364,161 |
Agricultural Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Agricultural Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 161,762 | 96,519 | 104,463 |
Real Estate Construction [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 160,133 | 94,887 | 102,831 |
Real Estate Construction [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 1,629 | 1,632 | 1,632 |
Real Estate Construction [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Residential 1st Mortgages [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 196,893 | 171,880 | 168,310 |
Residential 1st Mortgages [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 195,477 | 170,462 | 166,884 |
Residential 1st Mortgages [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 733 | 744 | 752 |
Residential 1st Mortgages [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 683 | 674 | 674 |
Home Equity Lines & Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 31,833 | 33,017 | 33,283 |
Home Equity Lines & Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 31,149 | 32,054 | 32,309 |
Home Equity Lines & Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 78 | 85 | 88 |
Home Equity Lines & Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 606 | 878 | 886 |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 249,783 | 281,963 | 237,521 |
Agricultural [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 249,116 | 281,232 | 236,760 |
Agricultural [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 437 | 679 | 695 |
Agricultural [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 230 | 52 | 66 |
Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 210,491 | 230,819 | 192,804 |
Commercial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 197,193 | 211,036 | 168,215 |
Commercial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 9,752 | 18,143 | 22,929 |
Commercial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 3,546 | 1,640 | 1,660 |
Consumer & Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 6,735 | 4,719 | 4,816 |
Consumer & Other [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 6,461 | 4,449 | 4,520 |
Consumer & Other [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Consumer & Other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 274 | 270 | 296 |
Leases [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 61,420 | 44,217 | 36,908 |
Leases [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 61,420 | 44,217 | 36,908 |
Leases [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Leases [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | $ 0 | $ 0 | $ 0 |
Loans & Leases and Allowance 32
Loans & Leases and Allowance for Credit Losses, Aging Analysis of Loan Portfolio by the Time Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | $ 0 | $ 0 | $ 0 |
Nonaccrual | 2,904 | 2,270 | 2,497 |
Total Past Due | 3,330 | 2,359 | 2,601 |
Current | 1,906,940 | 1,709,885 | 1,613,170 |
Total Loans & Leases | 1,910,270 | 1,712,244 | 1,615,771 |
30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 230 | 89 | 104 |
60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 196 | 0 | 0 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 696 | 0 | 0 |
Total Past Due | 696 | 0 | 0 |
Current | 558,047 | 491,903 | 473,505 |
Total Loans & Leases | 558,743 | 491,903 | 473,505 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Agricultural Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 432,610 | 357,207 | 364,161 |
Total Loans & Leases | 432,610 | 357,207 | 364,161 |
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 161,762 | 96,519 | 104,463 |
Total Loans & Leases | 161,762 | 96,519 | 104,463 |
Real Estate Construction [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Real Estate Construction [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Residential 1st Mortgages [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 68 | 77 | 283 |
Total Past Due | 338 | 77 | 283 |
Current | 196,555 | 171,803 | 168,027 |
Total Loans & Leases | 196,893 | 171,880 | 168,310 |
Residential 1st Mortgages [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 74 | 0 | 0 |
Residential 1st Mortgages [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 196 | 0 | 0 |
Home Equity Lines & Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 576 | 576 | 575 |
Total Past Due | 726 | 655 | 667 |
Current | 31,107 | 32,362 | 32,616 |
Total Loans & Leases | 31,833 | 33,017 | 33,283 |
Home Equity Lines & Loans [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 150 | 79 | 92 |
Home Equity Lines & Loans [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 8 | 18 | 25 |
Total Past Due | 8 | 18 | 25 |
Current | 249,775 | 281,945 | 237,496 |
Total Loans & Leases | 249,783 | 281,963 | 237,521 |
Agricultural [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Agricultural [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 1,545 | 1,586 | 1,600 |
Total Past Due | 1,545 | 1,586 | 1,600 |
Current | 208,946 | 229,233 | 191,204 |
Total Loans & Leases | 210,491 | 230,819 | 192,804 |
Commercial [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Commercial [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Consumer & Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 11 | 13 | 14 |
Total Past Due | 17 | 23 | 26 |
Current | 6,718 | 4,696 | 4,790 |
Total Loans & Leases | 6,735 | 4,719 | 4,816 |
Consumer & Other [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6 | 10 | 12 |
Consumer & Other [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 61,420 | 44,217 | 36,908 |
Total Loans & Leases | 61,420 | 44,217 | 36,908 |
Leases [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Leases [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 | $ 0 |
Loans & Leases and Allowance 33
Loans & Leases and Allowance for Credit Losses, Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
With no related allowance recorded [Abstract] | |||||
Recorded Investment | $ 5,318 | $ 0 | $ 5,318 | $ 0 | $ 0 |
Unpaid Principal Balance | 5,437 | 0 | 5,437 | 0 | 0 |
Average Recorded Investment | 5,222 | 1,638 | 3,090 | 3,074 | 1,853 |
Interest Income Recognized | 33 | 0 | 74 | 58 | 58 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 2,630 | 6,977 | 2,630 | 6,977 | 7,229 |
Unpaid Principal Balance | 2,850 | 7,214 | 2,850 | 7,214 | 7,518 |
Related Allowance | 1,054 | 1,394 | 1,054 | 1,394 | 1,444 |
Average Recorded Investment | 2,651 | 5,232 | 4,444 | 3,916 | 5,163 |
Interest Income Recognized | 15 | 41 | 68 | 61 | 107 |
Recorded Investment, Total | 7,948 | 6,977 | 7,948 | 6,977 | 7,229 |
Unpaid Principal Balance, Total | 8,287 | 7,214 | 8,287 | 7,214 | 7,518 |
Related Allowance | 1,054 | 1,394 | 1,054 | 1,394 | 1,444 |
Average Recorded Investment, Total | 7,873 | 6,870 | 7,534 | 6,990 | 7,016 |
Interest Income Recognized, Total | 48 | 41 | 142 | 119 | 165 |
Commercial Real Estate [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 821 | 0 | 821 | 0 | 0 |
Unpaid Principal Balance | 821 | 0 | 821 | 0 | 0 |
Average Recorded Investment | 812 | 49 | 468 | 82 | 49 |
Interest Income Recognized | 2 | 0 | 6 | 4 | 4 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 92 | ||||
Unpaid Principal Balance | 92 | ||||
Related Allowance | 2 | ||||
Average Recorded Investment | 47 | ||||
Interest Income Recognized | 4 | ||||
Related Allowance | 2 | ||||
Residential 1st Mortgages [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 557 | 557 | |||
Unpaid Principal Balance | 623 | 623 | |||
Average Recorded Investment | 561 | 471 | |||
Interest Income Recognized | 4 | 12 | |||
With an allowance recorded [Abstract] | |||||
Recorded Investment | 352 | 658 | 352 | 658 | 937 |
Unpaid Principal Balance | 424 | 771 | 424 | 771 | 1,069 |
Related Allowance | 17 | 131 | 17 | 131 | 187 |
Average Recorded Investment | 354 | 550 | 453 | 522 | 612 |
Interest Income Recognized | 4 | 1 | 12 | 3 | 9 |
Related Allowance | 17 | 131 | 17 | 131 | 187 |
Home Equity Lines & Loans [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 619 | 0 | 619 | 0 | 0 |
Unpaid Principal Balance | 659 | 0 | 659 | 0 | 0 |
Average Recorded Investment | 620 | 0 | 531 | 226 | 169 |
Interest Income Recognized | 1 | 0 | 2 | 0 | 0 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 135 | 955 | 135 | 955 | 951 |
Unpaid Principal Balance | 153 | 1,008 | 153 | 1,008 | 1,020 |
Related Allowance | 7 | 191 | 7 | 191 | 190 |
Average Recorded Investment | 136 | 934 | 273 | 710 | 803 |
Interest Income Recognized | 2 | 3 | 4 | 6 | 10 |
Related Allowance | 7 | 191 | 7 | 191 | 190 |
Agricultural [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 203 | 0 | 203 | 0 | 0 |
Unpaid Principal Balance | 216 | 0 | 216 | 0 | 0 |
Average Recorded Investment | 107 | 14 | 42 | 26 | 15 |
Interest Income Recognized | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 427 | 483 | 427 | 483 | 461 |
Unpaid Principal Balance | 427 | 493 | 427 | 493 | 473 |
Related Allowance | 120 | 119 | 120 | 119 | 114 |
Average Recorded Investment | 435 | 478 | 443 | 477 | 473 |
Interest Income Recognized | 7 | 7 | 21 | 21 | 28 |
Related Allowance | 120 | 119 | 120 | 119 | 114 |
Commercial [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 3,118 | 0 | 3,118 | 0 | 0 |
Unpaid Principal Balance | 3,118 | 0 | 3,118 | 0 | 0 |
Average Recorded Investment | 3,122 | 1,575 | 1,578 | 2,740 | 1,620 |
Interest Income Recognized | 26 | 0 | 54 | 54 | 54 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 1,679 | 4,744 | 1,679 | 4,744 | 4,742 |
Unpaid Principal Balance | 1,803 | 4,801 | 1,803 | 4,801 | 4,813 |
Related Allowance | 879 | 908 | 879 | 908 | 910 |
Average Recorded Investment | 1,687 | 3,179 | 3,233 | 2,144 | 3,182 |
Interest Income Recognized | 2 | 27 | 29 | 27 | 54 |
Related Allowance | 879 | 908 | 879 | 908 | 910 |
Consumer & Other [Member] | |||||
With an allowance recorded [Abstract] | |||||
Recorded Investment | 37 | 43 | 37 | 43 | 46 |
Unpaid Principal Balance | 43 | 47 | 43 | 47 | 51 |
Related Allowance | 31 | 43 | 31 | 43 | 41 |
Average Recorded Investment | 39 | 44 | 42 | 47 | 46 |
Interest Income Recognized | 0 | 1 | 2 | 2 | 2 |
Related Allowance | $ 31 | $ 43 | $ 31 | $ 43 | $ 41 |
Loans & Leases and Allowance 34
Loans & Leases and Allowance for Credit Losses, Loans by Class Modified as Troubled Debt Restructured Loans (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)Loan | Sep. 30, 2014USD ($)Loan | Sep. 30, 2015USD ($)Loan | Sep. 30, 2014USD ($)Loan | Dec. 31, 2014USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | |||||
Specific reserves | $ 1,100,000 | $ 1,300,000 | $ 1,100,000 | $ 1,300,000 | $ 1,300,000 |
Troubled debt restructured loans | 6,600,000 | $ 6,400,000 | 6,600,000 | $ 6,400,000 | 6,600,000 |
Commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings | $ 0 | $ 0 | $ 0 | ||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 1 | 2 | 2 | 8 | 11 |
Pre-Modification Outstanding Recorded Investment | $ 194,000 | $ 299,000 | $ 325,000 | $ 695,000 | $ 1,012,000 |
Post-Modification Outstanding Recorded Investment | 194,000 | 269,000 | 313,000 | 649,000 | 950,000 |
Increase in allowance for credit losses due to TDR | 0 | 51,000 | 70,000 | 50,000 | 28,000 |
TDR's charge-offs | $ 0 | 30,000 | $ 12,000 | $ 46,000 | $ 63,000 |
Number of loans modified as troubled debt restructurings with subsequent payment defaults | Loan | 0 | 0 | 0 | ||
Stated Interest Rate Reduction [Member] | Minimum [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Period of modifications | 5 years | 5 years | 4 years | ||
Stated Interest Rate Reduction [Member] | Maximum [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Period of modifications | 10 years | 30 years | 30 years | ||
Extended Maturity [Member] | Minimum [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Period of modifications | 5 years | 5 years | 6 months | ||
Extended Maturity [Member] | Maximum [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Period of modifications | 10 years | 30 years | 30 years | ||
Performing [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructured loans | $ 5,000,000 | $ 4,500,000 | $ 5,000,000 | $ 4,500,000 | $ 5,000,000 |
Residential 1st Mortgages [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 1 | 4 | 5 | ||
Pre-Modification Outstanding Recorded Investment | $ 248,000 | $ 565,000 | $ 857,000 | ||
Post-Modification Outstanding Recorded Investment | $ 222,000 | $ 528,000 | $ 804,000 | ||
Home Equity Lines & Loans [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 1 | 3 | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 51,000 | $ 98,000 | $ 98,000 | ||
Post-Modification Outstanding Recorded Investment | $ 47,000 | $ 89,000 | $ 89,000 | ||
Agricultural [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 1 | 0 | 1 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 194,000 | $ 0 | $ 194,000 | $ 32,000 | $ 32,000 |
Post-Modification Outstanding Recorded Investment | $ 194,000 | $ 0 | $ 194,000 | $ 32,000 | $ 32,000 |
Commercial [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 0 | 1 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 131,000 | $ 18,000 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 119,000 | $ 18,000 | ||
Consumer & Other [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 1 | ||||
Pre-Modification Outstanding Recorded Investment | $ 7,000 | ||||
Post-Modification Outstanding Recorded Investment | $ 7,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Fair Value Measurements [Abstract] | |||
Percentage of selling costs reduced in sales comparison approach | 10.00% | ||
Consumer mortgage loans in the process of foreclosure value | $ 575,000 | ||
Available-for-Sale Securities [Abstract] | |||
Fair/Book value | 344,728,000 | $ 366,542,000 | $ 336,526,000 |
Recurring [Member] | |||
Available-for-Sale Securities [Abstract] | |||
Government Agency & Government-Sponsored Entities | 41,513,000 | 78,109,000 | 13,361,000 |
US Treasury Notes | 30,300,000 | ||
Mortgage Backed Securities | 256,195,000 | 287,948,000 | 322,680,000 |
Corporate Securities | 16,235,000 | ||
Other | 485,000 | 485,000 | 485,000 |
Fair/Book value | 344,728,000 | 366,542,000 | 336,526,000 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Available-for-Sale Securities [Abstract] | |||
Government Agency & Government-Sponsored Entities | 0 | 10,005,000 | 13,361,000 |
US Treasury Notes | 30,300,000 | ||
Mortgage Backed Securities | 0 | 0 | 39,566,000 |
Corporate Securities | 0 | ||
Other | 175,000 | 175,000 | 175,000 |
Fair/Book value | 30,475,000 | 10,180,000 | 53,102,000 |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | |||
Available-for-Sale Securities [Abstract] | |||
Government Agency & Government-Sponsored Entities | 41,513,000 | 68,104,000 | 0 |
US Treasury Notes | 0 | ||
Mortgage Backed Securities | 256,195,000 | 287,948,000 | 283,114,000 |
Corporate Securities | 16,235,000 | ||
Other | 310,000 | 310,000 | 310,000 |
Fair/Book value | 314,253,000 | 356,362,000 | 283,424,000 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Available-for-Sale Securities [Abstract] | |||
Government Agency & Government-Sponsored Entities | 0 | 0 | 0 |
US Treasury Notes | 0 | ||
Mortgage Backed Securities | 0 | 0 | 0 |
Corporate Securities | 0 | 0 | |
Other | 0 | 0 | 0 |
Fair/Book value | 0 | 0 | 0 |
Nonrecurring [Member] | |||
Impaired Loans [Abstract] | |||
Commercial Real Estate | 90,000 | 92,000 | |
Residential 1st Mortgage | 334,000 | 748,000 | 526,000 |
Home Equity Lines and Loans | 126,000 | 759,000 | 763,000 |
Agricultural | 308,000 | 346,000 | 363,000 |
Commercial | 800,000 | 3,832,000 | 3,836,000 |
Consumer | 5,000 | 6,000 | |
Total Impaired Loans | 1,573,000 | 5,781,000 | 5,580,000 |
Other Real Estate [Abstract] | |||
Real Estate Construction | 2,441,000 | 2,441,000 | 2,441,000 |
Agricultural Real Estate | 858,000 | 858,000 | |
Total Other Real Estate | 2,441,000 | 3,299,000 | 3,299,000 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 4,014,000 | 9,080,000 | 8,879,000 |
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Impaired Loans [Abstract] | |||
Commercial Real Estate | 0 | 0 | |
Residential 1st Mortgage | 0 | 0 | 0 |
Home Equity Lines and Loans | 0 | 0 | 0 |
Agricultural | 0 | 0 | 0 |
Commercial | 0 | 0 | 0 |
Total Impaired Loans | 0 | 0 | 0 |
Other Real Estate [Abstract] | |||
Real Estate Construction | 0 | 0 | 0 |
Agricultural Real Estate | 0 | 0 | |
Total Other Real Estate | 0 | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 | 0 |
Nonrecurring [Member] | Other Observable Inputs (Level 2) [Member] | |||
Impaired Loans [Abstract] | |||
Commercial Real Estate | 0 | 0 | |
Residential 1st Mortgage | 0 | 0 | 0 |
Home Equity Lines and Loans | 0 | 0 | 0 |
Agricultural | 0 | 0 | 0 |
Commercial | 0 | 0 | 0 |
Total Impaired Loans | 0 | 0 | 0 |
Other Real Estate [Abstract] | |||
Real Estate Construction | 0 | 0 | 0 |
Agricultural Real Estate | 0 | 0 | |
Total Other Real Estate | 0 | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 | 0 |
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Impaired Loans [Abstract] | |||
Commercial Real Estate | 90,000 | 92,000 | |
Residential 1st Mortgage | 334,000 | 748,000 | 526,000 |
Home Equity Lines and Loans | 126,000 | 759,000 | 763,000 |
Agricultural | 308,000 | 346,000 | 363,000 |
Commercial | 800,000 | 3,832,000 | 3,836,000 |
Consumer | 5,000 | 6,000 | |
Total Impaired Loans | 1,573,000 | 5,781,000 | 5,580,000 |
Other Real Estate [Abstract] | |||
Real Estate Construction | 2,441,000 | 2,441,000 | 2,441,000 |
Agricultural Real Estate | 858,000 | 858,000 | |
Total Other Real Estate | 2,441,000 | 3,299,000 | 3,299,000 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | $ 4,014,000 | $ 9,080,000 | $ 8,879,000 |
Fair Value Measurements, Quanti
Fair Value Measurements, Quantitative Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Residential 1st Mortgages [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 334 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Residential 1st Mortgages [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 2.00% |
Residential 1st Mortgages [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 5.00% |
Residential 1st Mortgages [Member] | Sales Comparison Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 4.00% |
Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 126 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 1.00% |
Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 3.00% |
Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 2.00% |
Agricultural [Member] | Income Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 308 |
Unobservable inputs | Capitalization Rate |
Agricultural [Member] | Income Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 16.00% |
Agricultural [Member] | Income Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 16.00% |
Agricultural [Member] | Income Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 16.00% |
Commercial [Member] | Income Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 800 |
Unobservable inputs | Capitalization Rate |
Commercial [Member] | Income Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 16.00% |
Commercial [Member] | Income Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 16.00% |
Commercial [Member] | Income Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 16.00% |
Consumer [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 5 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Consumer [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 1.00% |
Consumer [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 1.00% |
Consumer [Member] | Sales Comparison Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 1.00% |
Real Estate Construction [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 2,441 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Real Estate Construction [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 10.00% |
Real Estate Construction [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 10.00% |
Real Estate Construction [Member] | Sales Comparison Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 10.00% |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Investment Securities Available-for-Sale [Abstract] | |||
Fair/Book value | $ 344,728 | $ 366,542 | $ 336,526 |
Investment Securities Held-to-Maturity [Abstract] | |||
Fair value | 66,889 | 64,635 | 70,149 |
Carrying Amount [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 50,300 | 77,125 | 39,216 |
Investment Securities Available-for-Sale [Abstract] | |||
Government Agency & Government-Sponsored Entities | 41,513 | 78,109 | 13,361 |
U.S. Treasury Notes | 30,300 | ||
Mortgage Backed Securities | 256,195 | 287,948 | 322,680 |
Corporate Securities | 16,235 | ||
Other | 485 | 485 | 485 |
Fair/Book value | 344,728 | 366,542 | 336,526 |
Investment Securities Held-to-Maturity [Abstract] | |||
Obligations of States and Political Subdivisions | 64,134 | 61,716 | 67,206 |
Other | 2,123 | 2,147 | 2,235 |
Fair value | 66,257 | 63,863 | 69,441 |
FHLB Stock | 7,795 | 7,677 | 7,677 |
Loans & Leases, Net of Deferred Fees & Allowance [Abstract] | |||
Commercial Real Estate | 549,498 | 484,061 | 465,707 |
Agricultural Real Estate | 425,130 | 353,022 | 360,215 |
Real Estate Construction | 159,374 | 94,850 | 102,783 |
Residential 1st Mortgages | 196,141 | 170,858 | 167,168 |
Home Equity Lines and Loans | 29,678 | 30,591 | 30,608 |
Agricultural | 244,645 | 275,859 | 231,739 |
Commercial | 202,246 | 222,624 | 184,889 |
Consumer & Other | 6,519 | 4,501 | 4,595 |
Leases | 58,349 | 42,006 | 35,063 |
Unallocated Allowance | (400) | (1,529) | (1,263) |
Total Loans & Leases, Net of Deferred Fees & Allowance | 1,871,180 | 1,676,843 | 1,581,504 |
Accrued Interest Receivable | 10,548 | 7,797 | 8,986 |
Deposits [Abstract] | |||
Demand | 603,430 | 610,133 | 516,093 |
Interest Bearing Transaction | 373,193 | 341,397 | 326,368 |
Savings and Money Market | 672,052 | 644,260 | 614,137 |
Time | 483,967 | 468,283 | 419,615 |
Total Deposits | 2,132,642 | 2,064,073 | 1,876,213 |
FHLB Advances & Securities Sold Under Agreement to Repurchase | 5,500 | 36,000 | |
Subordinated Debentures | 10,310 | 10,310 | 10,310 |
Accrued Interest Payable | 590 | 378 | 314 |
Estimated Fair Value [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 50,300 | 77,125 | 39,216 |
Investment Securities Available-for-Sale [Abstract] | |||
Government Agency & Government-Sponsored Entities | 41,513 | 78,109 | 13,361 |
U.S. Treasury Notes | 30,300 | ||
Mortgage Backed Securities | 256,195 | 287,948 | 322,680 |
Corporate Securities | 16,235 | ||
Other | 485 | 485 | 485 |
Fair/Book value | 344,728 | 366,542 | 336,526 |
Investment Securities Held-to-Maturity [Abstract] | |||
Obligations of States and Political Subdivisions | 64,766 | 62,488 | 67,914 |
Other | 2,123 | 2,147 | 2,235 |
Fair value | 66,889 | 64,635 | 70,149 |
Loans & Leases, Net of Deferred Fees & Allowance [Abstract] | |||
Commercial Real Estate | 552,323 | 481,037 | 462,469 |
Agricultural Real Estate | 415,304 | 353,288 | 360,976 |
Real Estate Construction | 159,295 | 95,022 | 103,095 |
Residential 1st Mortgages | 199,565 | 173,916 | 169,971 |
Home Equity Lines and Loans | 31,314 | 32,456 | 32,601 |
Agricultural | 243,495 | 274,195 | 230,572 |
Commercial | 200,932 | 222,175 | 184,466 |
Consumer & Other | 6,543 | 4,535 | 4,619 |
Leases | 58,854 | 40,298 | 33,519 |
Unallocated Allowance | (400) | (1,529) | (1,263) |
Total Loans & Leases, Net of Deferred Fees & Allowance | 1,867,225 | 1,675,393 | 1,581,025 |
Accrued Interest Receivable | 10,548 | 7,797 | 8,986 |
Deposits [Abstract] | |||
Demand | 603,430 | 610,133 | 516,093 |
Interest Bearing Transaction | 373,193 | 341,397 | 326,368 |
Savings and Money Market | 672,052 | 644,260 | 614,137 |
Time | 484,018 | 468,161 | 419,663 |
Total Deposits | 2,132,693 | 2,063,951 | 1,876,261 |
FHLB Advances & Securities Sold Under Agreement to Repurchase | 5,500 | 36,000 | |
Subordinated Debentures | 6,292 | 6,227 | 6,227 |
Accrued Interest Payable | 590 | 378 | 314 |
Estimated Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 50,300 | 77,125 | 39,216 |
Investment Securities Available-for-Sale [Abstract] | |||
Government Agency & Government-Sponsored Entities | 0 | 10,005 | 13,361 |
U.S. Treasury Notes | 30,300 | ||
Mortgage Backed Securities | 0 | 0 | 39,566 |
Corporate Securities | 0 | ||
Other | 175 | 175 | 175 |
Fair/Book value | 30,475 | 10,180 | 53,102 |
Investment Securities Held-to-Maturity [Abstract] | |||
Obligations of States and Political Subdivisions | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Fair value | 0 | 0 | 0 |
Loans & Leases, Net of Deferred Fees & Allowance [Abstract] | |||
Commercial Real Estate | 0 | 0 | 0 |
Agricultural Real Estate | 0 | 0 | 0 |
Real Estate Construction | 0 | 0 | 0 |
Residential 1st Mortgages | 0 | 0 | 0 |
Home Equity Lines and Loans | 0 | 0 | 0 |
Agricultural | 0 | 0 | 0 |
Commercial | 0 | 0 | 0 |
Consumer & Other | 0 | 0 | 0 |
Leases | 0 | ||
Unallocated Allowance | 0 | 0 | 0 |
Total Loans & Leases, Net of Deferred Fees & Allowance | 0 | 0 | 0 |
Accrued Interest Receivable | 0 | 0 | 0 |
Deposits [Abstract] | |||
Demand | 603,430 | 610,133 | 516,093 |
Interest Bearing Transaction | 373,193 | 341,397 | 326,368 |
Savings and Money Market | 672,052 | 644,260 | 614,137 |
Time | 0 | 0 | 0 |
Total Deposits | 1,648,675 | 1,595,790 | 1,456,598 |
FHLB Advances & Securities Sold Under Agreement to Repurchase | 0 | 0 | |
Subordinated Debentures | 0 | 0 | 0 |
Accrued Interest Payable | 0 | 0 | 0 |
Estimated Fair Value [Member] | Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Investment Securities Available-for-Sale [Abstract] | |||
Government Agency & Government-Sponsored Entities | 41,513 | 68,104 | 0 |
U.S. Treasury Notes | 0 | ||
Mortgage Backed Securities | 256,195 | 287,948 | 283,114 |
Corporate Securities | 16,235 | ||
Other | 310 | 310 | 310 |
Fair/Book value | 314,253 | 356,362 | 283,424 |
Investment Securities Held-to-Maturity [Abstract] | |||
Obligations of States and Political Subdivisions | 51,966 | 49,085 | 54,375 |
Other | 2,123 | 2,147 | 2,235 |
Fair value | 54,089 | 51,232 | 56,610 |
Loans & Leases, Net of Deferred Fees & Allowance [Abstract] | |||
Commercial Real Estate | 0 | 0 | 0 |
Agricultural Real Estate | 0 | 0 | 0 |
Real Estate Construction | 0 | 0 | 0 |
Residential 1st Mortgages | 0 | 0 | 0 |
Home Equity Lines and Loans | 0 | 0 | 0 |
Agricultural | 0 | 0 | 0 |
Commercial | 0 | 0 | 0 |
Consumer & Other | 0 | 0 | 0 |
Leases | 0 | ||
Unallocated Allowance | 0 | 0 | 0 |
Total Loans & Leases, Net of Deferred Fees & Allowance | 0 | 0 | 0 |
Accrued Interest Receivable | 10,548 | 7,797 | 8,986 |
Deposits [Abstract] | |||
Demand | 0 | 0 | 0 |
Interest Bearing Transaction | 0 | 0 | 0 |
Savings and Money Market | 0 | 0 | 0 |
Time | 484,018 | 468,161 | 419,663 |
Total Deposits | 484,018 | 468,161 | 419,663 |
FHLB Advances & Securities Sold Under Agreement to Repurchase | 5,500 | 36,000 | |
Subordinated Debentures | 6,292 | 6,227 | 6,227 |
Accrued Interest Payable | 590 | 378 | 314 |
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Investment Securities Available-for-Sale [Abstract] | |||
Government Agency & Government-Sponsored Entities | 0 | 0 | 0 |
U.S. Treasury Notes | 0 | ||
Mortgage Backed Securities | 0 | 0 | |
Corporate Securities | 0 | ||
Other | 0 | 0 | 0 |
Fair/Book value | 0 | 0 | 0 |
Investment Securities Held-to-Maturity [Abstract] | |||
Obligations of States and Political Subdivisions | 12,800 | 13,403 | 13,539 |
Other | 0 | 0 | 0 |
Fair value | 12,800 | 13,403 | 13,539 |
Loans & Leases, Net of Deferred Fees & Allowance [Abstract] | |||
Commercial Real Estate | 552,323 | 481,037 | 462,469 |
Agricultural Real Estate | 415,304 | 353,288 | 360,976 |
Real Estate Construction | 159,295 | 95,022 | 103,095 |
Residential 1st Mortgages | 199,565 | 173,916 | 169,971 |
Home Equity Lines and Loans | 31,314 | 32,456 | 32,601 |
Agricultural | 243,495 | 274,195 | 230,572 |
Commercial | 200,932 | 222,175 | 184,466 |
Consumer & Other | 6,543 | 4,535 | 4,619 |
Leases | 58,854 | 40,298 | 33,519 |
Unallocated Allowance | (400) | (1,529) | (1,263) |
Total Loans & Leases, Net of Deferred Fees & Allowance | 1,867,225 | 1,675,393 | 1,581,025 |
Accrued Interest Receivable | 0 | 0 | 0 |
Deposits [Abstract] | |||
Demand | 0 | 0 | 0 |
Interest Bearing Transaction | 0 | 0 | 0 |
Savings and Money Market | 0 | 0 | 0 |
Time | 0 | 0 | 0 |
Total Deposits | 0 | 0 | 0 |
FHLB Advances & Securities Sold Under Agreement to Repurchase | 0 | 0 | |
Subordinated Debentures | 0 | 0 | 0 |
Accrued Interest Payable | $ 0 | $ 0 | $ 0 |
Dividends and Basic Earnings 38
Dividends and Basic Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings per share for the period [Abstract] | ||||
Net Income | $ 7,040 | $ 6,432 | $ 20,192 | $ 18,818 |
Weighted Average Number of Common Shares Outstanding (in shares) | 785,852 | 777,882 | 785,668 | 777,882 |
Basic Earnings Per Common Share Amount (in dollars per share) | $ 8.96 | $ 8.27 | $ 25.70 | $ 24.19 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - $ / shares | 1 Months Ended | |
Sep. 30, 2015 | Jan. 31, 2015 | |
Shareholders' Equity [Abstract] | ||
Issuance of common stock (in shares) | 3,200 | 1,700 |
Per share price of shares issued (in dollars per share) | $ 515 | $ 450 |