Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
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 Public Float | $ 501,396,000 | ||
Entity Common Stock, Shares Outstanding | 812,304 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents: | ||
Cash and Due from Banks | $ 65,956 | $ 54,896 |
Interest Bearing Deposits with Banks | 121,193 | 43,964 |
Total Cash and Cash Equivalents | 187,149 | 98,860 |
Investment Securities: | ||
Available-for-Sale | 481,596 | 448,263 |
Held-to-Maturity | 54,460 | 58,109 |
Total Investment Securities | 536,056 | 506,372 |
Loans & Leases: | 2,215,295 | 2,177,601 |
Less: Allowance for Credit Losses | 50,342 | 47,919 |
Loans & Leases, Net | 2,164,953 | 2,129,682 |
Premises and Equipment, Net | 28,679 | 29,229 |
Bank Owned Life Insurance | 59,583 | 57,761 |
Interest Receivable and Other Assets | 99,032 | 100,217 |
Total Assets | 3,075,452 | 2,922,121 |
Deposits: | ||
Demand | 832,652 | 756,236 |
Interest-Bearing Transaction | 601,476 | 495,063 |
Savings and Money Market | 813,703 | 760,119 |
Time | 475,397 | 570,293 |
Total Deposits | 2,723,228 | 2,581,711 |
Subordinated Debentures | 10,310 | 10,310 |
Interest Payable and Other Liabilities | 42,254 | 50,119 |
Total Liabilities | 2,775,792 | 2,642,140 |
Commitments & Contingencies (See Note 20) | ||
Shareholders' Equity | ||
Preferred Stock: No Par Value, 1,000,000 Shares Authorized, None Issued or Outstanding | 0 | 0 |
Common Stock: Par Value $0.01, 7,500,000 Shares Authorized, 812,304 and 807,329 Shares Issued and Outstanding at December 31, 2017 and 2016, respectively. | 8 | 8 |
Additional Paid-In Capital | 93,624 | 90,671 |
Retained Earnings | 206,845 | 189,313 |
Accumulated Other Comprehensive Income | (817) | (11) |
Total Shareholders' Equity | 299,660 | 279,981 |
Total Liabilities and Shareholders' Equity | $ 3,075,452 | $ 2,922,121 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Shareholders' Equity | ||
Preferred Stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common Stock, shares issued (in shares) | 812,304 | 807,329 |
Common Stock, shares outstanding (in shares) | 812,304 | 807,329 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Income | |||
Interest and Fees on Loans & Leases | $ 102,682 | $ 91,570 | $ 81,558 |
Interest on Deposits with Banks | 2,060 | 287 | 172 |
Interest on Investment Securities: | |||
Taxable | 8,123 | 5,505 | 6,311 |
Exempt from Federal Tax | 1,747 | 1,904 | 2,034 |
Total Interest Income | 114,612 | 99,266 | 90,075 |
Interest Expense | |||
Deposits | 5,865 | 3,807 | 2,989 |
Borrowed Funds | 0 | 18 | 7 |
Subordinated Debentures | 424 | 371 | 329 |
Total Interest Expense | 6,289 | 4,196 | 3,325 |
Net Interest Income | 108,323 | 95,070 | 86,750 |
Provision for Credit Losses | 2,850 | 6,335 | 750 |
Net Interest Income After Provision for Credit Losses | 105,473 | 88,735 | 86,000 |
Non-Interest Income | |||
Service Charges on Deposit Accounts | 3,453 | 3,376 | 3,458 |
Net Gain (Loss) on Investment Securities | 131 | (284) | 275 |
Increase in Cash Surrender Value of Life Insurance | 1,822 | 1,864 | 1,908 |
Debit Card and ATM Fees | 3,873 | 3,398 | 3,183 |
Net Gain on Deferred Compensation Investments | 2,563 | 1,999 | 1,375 |
Bargain Purchase Gain | 0 | 1,832 | 0 |
Other | 4,920 | 3,072 | 4,376 |
Total Non-Interest Income | 16,762 | 15,257 | 14,575 |
Non-Interest Expense | |||
Salaries and Employee Benefits | 45,746 | 41,981 | 39,683 |
Net Gain on Deferred Compensation Investments | 2,563 | 1,999 | 1,375 |
Occupancy | 3,543 | 2,985 | 2,884 |
Equipment | 3,994 | 3,493 | 3,162 |
Marketing | 1,027 | 1,191 | 1,254 |
Legal | 424 | 1,243 | 421 |
FDIC Insurance | 932 | 1,174 | 1,193 |
Gain on Sale of ORE | (414) | (5,941) | (299) |
Other | 9,939 | 10,047 | 6,586 |
Total Non-Interest Expense | 67,754 | 58,172 | 56,259 |
Income Before Income Taxes | 54,481 | 45,820 | 44,316 |
Provision for Income Taxes | 26,111 | 16,097 | 16,924 |
Net Income | $ 28,370 | $ 29,723 | $ 27,392 |
Basic Earnings Per Common Share (in dollars per share) | $ 35.03 | $ 37.44 | $ 34.82 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net Income | $ 28,370 | $ 29,723 | $ 27,392 |
Other Comprehensive Loss | |||
Net Unrealized Loss on Available-for-Sale Securities | (1,011) | (1,330) | (3,069) |
Deferred Tax Benefit Related to Unrealized Losses | 281 | 559 | 1,290 |
Reclassification Adjustment for Realized (Gain) Loss on Available-for-Sale Securities Included in Net Income | (131) | 284 | (275) |
Tax Expense (Benefit) Related to Reclassification Adjustment | 55 | (119) | 116 |
Change in Net Unrealized Loss on Available-for-Sale Securities, Net of Tax | (806) | (606) | (1,938) |
Total Other Comprehensive Loss | (806) | (606) | (1,938) |
Comprehensive Income | $ 27,564 | $ 29,117 | $ 25,454 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
Balance at Dec. 31, 2014 | $ 8 | $ 77,804 | $ 152,833 | $ 2,533 | $ 233,178 |
Balance (in shares) at Dec. 31, 2014 | 784,082 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 27,392 | 27,392 | |||
Cash Dividends Declared on Common Stock | (10,157) | (10,157) | |||
Issuance of Common Stock | 3,360 | 3,360 | |||
Issuance of Common Stock (in shares) | 6,705 | ||||
Change in Net Unrealized (Loss) Gain on Securities Available-for-Sale | (1,938) | (1,938) | |||
Balance at Dec. 31, 2015 | $ 8 | 81,164 | 170,068 | 595 | 251,835 |
Balance (in shares) at Dec. 31, 2015 | 790,787 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 29,723 | 29,723 | |||
Cash Dividends Declared on Common Stock | (10,478) | (10,478) | |||
Issuance of Common Stock | 9,507 | $ 9,507 | |||
Issuance of Common Stock (in shares) | 16,542 | 16,542 | |||
Change in Net Unrealized (Loss) Gain on Securities Available-for-Sale | (606) | $ (606) | |||
Balance at Dec. 31, 2016 | $ 8 | 90,671 | 189,313 | (11) | $ 279,981 |
Balance (in shares) at Dec. 31, 2016 | 807,329 | 807,329 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 28,370 | $ 28,370 | |||
Cash Dividends Declared on Common Stock | (10,982) | (10,982) | |||
Issuance of Common Stock | 2,953 | $ 2,953 | |||
Issuance of Common Stock (in shares) | 4,975 | 4,975 | |||
Tax Adjustment of Available-for-Sale Securities Reclassed from AOCI | 144 | (144) | $ 0 | ||
Change in Net Unrealized (Loss) Gain on Securities Available-for-Sale | (662) | (662) | |||
Balance at Dec. 31, 2017 | $ 8 | $ 93,624 | $ 206,845 | $ (817) | $ 299,660 |
Balance (in shares) at Dec. 31, 2017 | 812,304 | 812,304 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash Dividends Declared per Share of Common Stock (in dollars per share) | $ 13.55 | $ 13.10 | $ 12.90 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net Income | $ 28,370 | $ 29,723 | $ 27,392 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Provision for Credit Losses | 2,850 | 6,335 | 750 |
Depreciation and Amortization | 2,186 | 1,896 | 1,685 |
Provision for Deferred Income Taxes | 12,605 | (2,299) | (907) |
Net Amortization of Investment Security Premium & Discounts | 1,430 | 1,481 | 1,554 |
Amortization of Core Deposit Intangible | 110 | 13 | 0 |
Accretion of Discount on Acquired Loans | (202) | (43) | 0 |
Net (Gain) Loss on Investment Securities | (131) | 284 | (275) |
Net (Gain) Loss on Sale of Property & Equipment | (1,189) | 71 | (383) |
Net Gain on Sale of ORE | (414) | (5,941) | (299) |
Net Gain from Acquisition | 0 | (1,832) | 0 |
Net Change in Operating Assets & Liabilities: | |||
Net (Increase) Decrease in Interest Receivable and Other Assets | (275) | 1,056 | 4,685 |
Net (Decrease) Increase in Interest Payable and Other Liabilities | (5,396) | 4,068 | 3,125 |
Net Cash Provided by Operating Activities | 39,944 | 34,812 | 37,327 |
Investing Activities | |||
Purchase of Investment Securities Available-for-Sale | (325,573) | (497,797) | (203,996) |
Proceeds from Sold, Matured, or Called Securities Available-for-Sale | 289,857 | 426,142 | 227,157 |
Purchase of Investment Securities Held-to-Maturity | (1,205) | (2,264) | (17,747) |
Proceeds from Matured, or Called Securities Held-to-Maturity | 4,794 | 5,499 | 18,031 |
Net Loans & Leases Paid, Originated or Acquired | (38,178) | (148,960) | (284,211) |
Principal Collected on Loans & Leases Previously Charged Off | 259 | 232 | 5,468 |
Cash Acquired in Acquisition, Net of Cash Paid | 0 | 31,751 | 0 |
Additions to Premises and Equipment | (4,254) | (1,504) | (2,726) |
Purchase of Other Investment | (14,380) | (6,825) | (2,110) |
Proceeds from Sale of Property & Equipment | 3,304 | 0 | 670 |
Proceeds from Sale of ORE | 3,186 | 8,282 | 1,156 |
Net Cash Used in Investing Activities | (82,190) | (185,444) | (258,308) |
Financing Activities | |||
Net Increase in Deposits | 141,517 | 200,524 | 213,459 |
Cash Dividends | (10,982) | (10,478) | (10,157) |
Net Cash Provided by (Used in) Financing Activities | 130,535 | 190,046 | 203,302 |
Increase (Decrease) in Cash and Cash Equivalents | 88,289 | 39,414 | (17,679) |
Cash and Cash Equivalents at Beginning of Year | 98,860 | 59,446 | 77,125 |
Cash and Cash Equivalents at End of Year | 187,149 | 98,860 | 59,446 |
Supplementary Data | |||
Loans Transferred to Foreclosed Assets (ORE) | 0 | 538 | 0 |
Cash Payments Made for Income Taxes | 13,942 | 12,891 | 8,475 |
Issuance of Common Stock to the Bank's Non-Qualified Retirement Plans | 2,953 | 2,586 | 3,360 |
Interest Paid | 6,005 | 3,856 | 3,190 |
Acquisitions: | |||
Fair Value of Assets Acquired | 0 | 114,871 | 0 |
Fair Value of Liabilities Acquired | 0 | 103,861 | 0 |
Issuance of Common Stock to Acquired Bank's Shareholders | $ 0 | $ 6,921 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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, for the sole purpose of issuing Trust Preferred Securities and related subordinated debentures, in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). FMCB Statutory Trust I is a non-consolidated subsidiary. On November 18, 2016, Farmers & Merchants Bancorp completed the acquisition of Delta National Bancorp, headquartered in Manteca, California, and the parent holding company for Delta Bank N.A., a locally owned and operated community bank established in 1973. As of the acquisition date, Delta National Bancorp had approximately $112 million in assets and four branch locations in the communities of Manteca, Riverbank, Modesto and Turlock. At the effective time of the acquisition, Delta National Bancorp was merged into Farmers & Merchants Bancorp and Delta Bank, N.A. was merged into Farmers & Merchants Bank of Central California. 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. 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' 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. 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. 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 & 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 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 Board (“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. Acquired Loans Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit discounts, which reflect estimates of credit losses, expected to be incurred over the life of the loan, are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. 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. The Company accounts for leases with Investment Tax Credits (ITC) under the deferred method as established in ASC 740-10. ITC are viewed and accounted for as a reduction of the cost of the related assets and presented as deferred income on the Company’s financial statement. 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 Consolidated Statements of Income. 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 basic earnings per common share. See Note 16 for additional information. 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 only reports one segment. Low Income Housing Tax Credit Investments (LIHTC) The Company accounts for its interest in LIHTC using the cost method as established in ASC 323-740. As an investor, the Company obtains income tax credits and deductions from the operating losses of these tax credit entities. The income tax credits and deductions are allocated to the investors based on their ownership percentages and are recorded as a reduction of income tax expense (or an increase to income tax benefit) and a reduction of federal income taxes payable. 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. Business Combinations And Related Matters Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the fair value over the purchase price of net assets and other identifiable intangible assets acquired is recorded as bargain purchase gain. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value, if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of operations from the date of acquisition. Acquisition-related costs, including conversion charges, are expensed as incurred. The Company applied this guidance to the acquisition of Delta National Bancorp that was consummated on November 18, 2016. The Company's consolidated financial statements reflect the operations of Delta National Bancorp from November 19, 2016 through December 31, 2016. Intangible Assets Intangible assets are comprised of core deposit intangibles acquired in the Delta National Bancorp acquisition. Intangible assets with definite useful lives are amortized over their respective estimated useful lives. If an event occurs that indicates the carrying amount of an intangible asset may not be recoverable, management reviews the asset for impairment. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | 2. Business Combinations Delta National Bancorp On November 18, 2016, the Company completed the acquisition of Delta National Bancorp. Delta National Bancorp was incorporated under the laws of the State of California on December 21, 1981, for the purpose of serving as a bank holding company under the Bank Holding Act of 1956. Its wholly owned subsidiary, Delta Bank, N.A., operated as a commercial bank with branches in the cities of Manteca, Riverbank, Turlock, and Modesto, California. The acquisition enhances our market presence and added $32.4 million in loans, $103.7 million in deposits and $38.7 million in investment securities to the Company. Effective December 9, 2016, the Modesto branch was closed after Management determined that our customers and the business community could be easily supported from our current Modesto location. The assets acquired and liabilities assumed, both tangible and intangible, were recorded at their fair values as of the acquisition date in accordance with ASC 805, Business Combinations |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investment Securities [Abstract] | |
Investment Securities | 3. 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 December 31, 2017 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,080 $ 48 $ - $ 3,128 US Treasury Notes 144,606 - 442 144,164 US Govt SBA 29,559 29 208 29,380 Mortgage Backed Securities (1) 302,502 939 1,527 301,914 Other 3,010 - - 3,010 Total $ 482,757 $ 1,016 $ 2,177 $ 481,596 Amortized Gross Unrealized Fair/Book December 31, 2016 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,127 $ 114 $ - $ 3,241 US Treasury Notes 134,755 5 332 134,428 US Govt SBA 36,532 42 260 36,314 Mortgage Backed Securities (1) 272,858 1,725 1,313 273,270 Other 1,010 - - 1,010 Total $ 448,282 $ 1,886 $ 1,905 $ 448,263 (1) All Mortgage Backed Securities were issued by an agency or government sponsored entity of the U.S. government. The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity (in thousands) Book Gross Unrealized Fair December 31, 2017 Value Gains Losses Value Obligations of States and Political Subdivisions $ 54,460 $ 776 $ - $ 55,236 Total $ 54,460 $ 776 $ - $ 55,236 Book Gross Unrealized Fair December 31, 2016 Value Gains Losses Value Obligations of States and Political Subdivisions $ 58,109 $ 339 $ 40 $ 58,408 Total $ 58,109 $ 339 $ 40 $ 58,408 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 December 31, 2017 by contractual maturity are shown in the following tables. (in thousands) Available-for-Sale Held-to-Maturity December 31, 2017 Amortized Cost Fair/Book Value Book Value Fair Value Within One Year $ 113,065 $ 112,989 $ 1,760 $ 1,769 After One Year Through Five Years 30,207 29,979 8,659 8,664 After Five Years Through Ten Years 13,044 12,922 14,155 14,347 After Ten Years 23,939 23,792 29,886 30,456 180,255 179,682 54,460 55,236 Investment Securities Not Due at a Single Maturity Date: Mortgage Backed Securities 302,502 301,914 - - Total $ 482,757 $ 481,596 $ 54,460 $ 55,236 Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or 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 December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 94,281 $ 144 $ 49,883 $ 298 $ 144,164 $ 442 US Govt SBA 8,379 51 12,900 157 21,279 208 Mortgage Backed Securities 126,863 932 43,208 595 170,071 1,527 Total $ 229,523 $ 1,127 $ 105,991 $ 1,050 $ 335,514 $ 2,177 Less Than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 99,429 $ 332 $ - $ - $ 99,429 $ 332 US Govt SBA 27,483 260 - - 27,483 260 Mortgage Backed Securities 123,157 1,313 - - 123,157 1,313 Total $ 250,069 $ 1,905 $ - $ - $ 250,069 $ 1,905 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 7,251 $ 40 $ - $ - $ 7,251 $ 40 Total $ 7,251 $ 40 $ - $ - $ 7,251 $ 40 As of December 31, 2017, the Company held 476 investment securities of which 97 were in an unrealized loss position for less than twelve months and 98 securities were in an unrealized 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 – At December 31, 2017, no securities of government agency and government sponsored entities were in a loss position for less than 12 months and none were in a loss position for 12 months or more. There were no unrealized losses on the Company's investments in securities of government agency and government sponsored entities at December 31, 2017 or December 31, 2016. 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, 2017. U.S. Treasury Notes – At December 31, 2017, 7 U.S. Treasury Note security investments were in a loss position for less than 12 months and 2 were in a loss position for 12 months or more. The unrealized losses on the Company's investment in US treasury notes were $442,000 at December 31, 2017 and $332,000 at December 31, 2016. The unrealized losses were caused by interest rate fluctuations. 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, 2017 and December 31, 2016. U.S. Government SBA – At December 31, 2017, 54 U.S. Government SBA security investments were in a loss position for less than 12 months and 70 were in a loss position for 12 months or more. The unrealized losses on the Company's investment in U.S. Government SBA were $208,000 at December 31, 2017 and $260,000 at December 31, 2016. The unrealized losses were caused by interest rate fluctuations. 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, 2017 and December 31, 2016. Mortgage Backed Securities - At December 31, 2017, 26 mortgage backed security investments were in a loss position for less than 12 months and 36 was in a loss position for 12 months or more. The unrealized losses on the Company's investment in mortgage-backed securities were $1.5 million at December 31, 2017 and $1.3 million at December 31, 2016. The unrealized losses 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 did not consider these investments to be other-than-temporarily impaired at December 31, 2017 or 2016. Obligations of States and Political Subdivisions - At December 31, 2017, no 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 December 31, 2017, over ninety-nine percent of the Company’s bank-qualified municipal bond portfolio is rated at either the issue or the issuer level, and all of these ratings are “investment grade.” The Company monitors the status of the one 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 obligation of states and political subdivisions were $0 at December 31, 2017 and $40,000 at December 31, 2016. Management believes that any unrealized losses on the Company's investments in obligations of states and political subdivisions were 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 would 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, 2017 and December 31, 2016. Proceeds from sales and calls of these securities were as follows: (in thousands) Gross Proceeds Gross Gains Gross Losses 2017 $ 7,831 $ 143 $ 12 2016 $ 105,941 $ 250 $ 534 2015 $ 61,335 $ 275 $ - Pledged Securities As of December 31, 2017, securities carried at $214.5 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 $171.9 million at December 31, 2016. Investment in Unconsolidated Subsidiary On April 5, 2017, the Company purchased 4.9% of the voting shares of Bank of Rio Vista, Rio Vista, California for $1.4 million. On July 3, 2017, the Federal Reserve Bank of San Francisco approved the Company’s application to acquire an additional 34.55% of the voting shares for $10.5 million. The purchase of the additional shares closed on July 20, 2017. The Company, as per requirements outlined in ASC 323-10-15-6, does not have the ability to exercise significant influence over BORV’s operating and financial policies. Accordingly, the investment in BORV is accounted for under the cost method of accounting as Other Assets. |
Federal Home Loan Bank Stock an
Federal Home Loan Bank Stock and Other Equity Securities, at Cost | 12 Months Ended |
Dec. 31, 2017 | |
Federal Home Loan Bank Stock and Other Equity Securities, at Cost [Abstract] | |
Federal Home Loan Bank Stock and Other Equity Securities, at Cost | 4. Federal Home Loan Bank Stock and Other Equity Securities, at Cost The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock and other equity securities are carried at cost, classified as restricted securities, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. FHLB stock and other equity securities are reported in Interest Receivable and Other Assets on the Company’s Consolidated Balance Sheets and totaled $22.6 million at December 31, 2017 and $9.2 million at December 31, 2016. |
Loans & Leases
Loans & Leases | 12 Months Ended |
Dec. 31, 2017 | |
Loans & Leases [Abstract] | |
Loans & Leases | 5. Loans & Leases Loans & leases as of December 31 consisted of the following: (in thousands) 2017 2016 Commercial Real Estate $ 691,639 $ 674,445 Agricultural Real Estate 499,231 467,685 Real Estate Construction 100,206 176,462 Residential 1st Mortgages 260,751 242,247 Home Equity Lines and Loans 34,525 31,625 Agricultural 273,582 295,325 Commercial 265,703 217,577 Consumer & Other 6,656 6,913 Leases 88,957 70,986 Total Gross Loans & Leases 2,221,250 2,183,265 Less: Unearned Income 5,955 5,664 Subtotal 2,215,295 2,177,601 Less: Allowance for Credit Losses 50,342 47,919 Loans & Leases, Net $ 2,164,953 $ 2,129,682 At December 31, 2017, the portion of loans that were approved for pledging as collateral on borrowing lines with the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”) were $618.4 million and $568.6 million, respectively. The borrowing capacity on these loans was $521.2 million from FHLB and $381.4 million from the FRB. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2017 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 6. Allowance for Credit Losses The following tables show the allocation of the allowance for credit losses at December 31, 2017 and December 31, 2016 by portfolio segment and by impairment methodology (in thousands) December 31, 2017 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, 2017 $ 11,110 $ 9,450 $ 3,223 $ 865 $ 2,140 $ 7,381 $ 8,515 $ 200 $ 3,586 $ 1,449 $ 47,919 Charge-Offs (109 ) - - (53 ) (3 ) (374 ) - (146 ) - - (685 ) Recoveries 109 - - 40 8 17 8 76 - - 258 Provision (188 ) 2,635 (1,377 ) (37 ) 179 1,135 674 79 (223 ) (27 ) 2,850 Ending Balance- December 31, 2017 $ 10,922 $ 12,085 $ 1,846 $ 815 $ 2,324 $ 8,159 $ 9,197 $ 209 $ 3,363 $ 1,422 $ 50,342 Ending Balance Individually Evaluated for Impairment 366 - - 73 17 - 220 8 - - 684 Ending Balance Collectively Evaluated for Impairment 10,556 12,085 1,846 742 2,307 8,159 8,977 201 3,363 1,422 49,658 Loans & Leases: Ending Balance $ 684,961 $ 499,231 $ 100,206 $ 260,751 $ 34,525 $ 273,582 $ 265,703 $ 6,656 $ 89,680 $ - $ 2,215,295 Ending Balance Individually Evaluated for Impairment 4,822 - - 2,373 340 - 1,734 10 - - 9,279 Ending Balance Collectively Evaluated for Impairment 680,139 499,231 100,206 258,378 34,185 273,582 263,969 6,646 89,680 - 2,206,016 December 31, 2016 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, 2016 $ 10,063 $ 6,881 $ 2,485 $ 789 $ 2,146 $ 6,308 $ 7,836 $ 175 $ 3,294 $ 1,546 $ 41,523 Charge-Offs - - - (21 ) (46 ) - - (105 ) - - (172 ) Recoveries 2 - - 26 103 - 47 55 - - 233 Provision 1,045 2,569 738 71 (63 ) 1,073 632 75 292 (97 ) 6,335 Ending Balance- December 31, 2016 $ 11,110 $ 9,450 $ 3,223 $ 865 $ 2,140 $ 7,381 $ 8,515 $ 200 $ 3,586 $ 1,449 $ 47,919 Ending Balance Individually Evaluated for Impairment - - - 70 18 128 608 7 - - 831 Ending Balance Collectively Evaluated for Impairment 11,110 9,450 3,223 795 2,122 7,253 7,907 193 3,586 1,449 47,088 Loans & Leases: Ending Balance $ 668,046 $ 467,685 $ 176,462 $ 242,247 $ 31,625 $ 295,325 $ 217,577 $ 6,913 $ 71,721 $ - $ 2,177,601 Ending Balance Individually Evaluated for Impairment 1,932 1,304 - 2,126 402 625 4,464 10 - - 10,863 Ending Balance Collectively Evaluated for Impairment 666,114 466,381 176,462 240,121 31,223 294,700 213,113 6,903 71,721 - 2,166,738 The ending balance of loans individually evaluated for impairment includes restructured loans in the amount of $3.0 million and $3.3 million at December 31, 2017 and 2016, respectively, 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 December 31, 2017 and December 31, 2016 (in thousands) December 31, 2017 Pass Special Mention Substandard Total Loans Loans & Leases: Commercial Real Estate $ 677,636 $ 6,843 $ 482 $ 684,961 Agricultural Real Estate 488,672 6,529 4,030 499,231 Real Estate Construction 90,728 9,478 - 100,206 Residential 1st Mortgages 259,795 41 915 260,751 Home Equity Lines and Loans 34,476 - 49 34,525 Agricultural 264,425 6,439 2,718 273,582 Commercial 260,565 4,610 528 265,703 Consumer & Other 6,498 - 158 6,656 Leases 87,497 2,183 - 89,680 Total $ 2,170,292 $ 36,123 $ 8,880 $ 2,215,295 December 31, 2016 Pass Special Mention Substandard Total Loans Loans & Leases: Commercial Real Estate $ 659,694 $ 6,817 $ 1,535 $ 668,046 Agricultural Real Estate 464,997 1,384 1,304 467,685 Real Estate Construction 176,462 - - 176,462 Residential 1st Mortgages 241,816 47 384 242,247 Home Equity Lines and Loans 31,558 - 67 31,625 Agricultural 283,525 11,366 434 295,325 Commercial 208,172 6,974 2,431 217,577 Consumer & Other 6,705 - 208 6,913 Leases 71,721 - - 71,721 Total $ 2,144,650 $ 26,588 $ 6,363 $ 2,177,601 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 & leases outstanding at December 31, 2017 and 2016 rated doubtful or loss. The following tables show an aging analysis of the loan & lease portfolio by the time past due at December 31, 2017 and December 31, 2016 (in thousands) December 31, 2017 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 $ - $ - $ - $ - $ - $ 684,961 $ 684,961 Agricultural Real Estate - - - - - 499,231 499,231 Real Estate Construction - - - - - 100,206 100,206 Residential 1st Mortgages 448 - - - 448 260,303 260,751 Home Equity Lines and Loans 10 - - - 10 34,515 34,525 Agricultural - - - - - 273,582 273,582 Commercial 180 - - - 180 265,523 265,703 Consumer & Other 7 - - - 7 6,649 6,656 Leases - - - - - 89,680 89,680 Total $ 645 $ - $ - $ - $ 645 $ 2,214,650 $ 2,215,295 December 31, 2016 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 $ - $ - $ - $ - $ - $ 668,046 $ 668,046 Agricultural Real Estate - - - 1,304 1,304 466,381 467,685 Real Estate Construction - - - - - 176,462 176,462 Residential 1st Mortgages - - - 95 95 242,152 242,247 Home Equity Lines and Loans - - - - - 31,625 31,625 Agricultural - - - 243 243 295,082 295,325 Commercial - - - 1,425 1,425 216,152 217,577 Consumer & Other 10 - - 7 17 6,896 6,913 Leases - - - - - 71,721 71,721 Total $ 10 $ - $ - $ 3,074 $ 3,084 $ 2,174,517 $ 2,177,601 There were no non-accrual loans & leases at December 31, 2017. At December 31, 2016, non-accrual loans & leases were $3.1 million. $0, The following tables show information related to impaired loans & leases at and for the year ended December 31, 2017 and December 31, 2016 (in thousands) December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 104 $ 104 $ - $ 107 $ 11 Agricultural Real Estate - - - 488 - Residential 1st Mortgages 911 1,012 - 532 11 Home Equity Lines and Loans - - - 16 - Agricultural - - - 30 - $ 1,015 $ 1,116 $ - $ 1,173 $ 22 With an allowance recorded: Commercial Real Estate $ 2,973 $ 2,961 $ 366 $ 2,999 $ 104 Residential 1st Mortgages 508 571 25 469 16 Home Equity Lines and Loans 73 89 4 74 3 Agricultural - - - 409 21 Commercial 1,741 1,734 220 1,693 59 Consumer & Other 8 9 8 11 - $ 5,303 $ 5,364 $ 623 $ 5,655 $ 203 Total $ 6,318 $ 6,480 $ 623 $ 6,828 $ 225 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 184 $ 184 $ - $ 354 $ 7 Agricultural Real Estate 1,305 1,305 - 569 3 Residential 1st Mortgages 451 504 - 404 10 Home Equity Lines and Loans - - - 181 - Agricultural - - - 144 5 Commercial 3,023 3,023 - 3,053 133 $ 4,963 $ 5,016 $ - $ 4,705 $ 158 With an allowance recorded: Residential 1st Mortgages $ 430 $ 469 $ 21 $ 336 $ 13 Home Equity Lines and Loans 90 97 5 123 4 Agricultural 625 625 128 581 22 Commercial 1,441 1,640 608 1,536 8 Consumer & Other 6 13 6 12 - $ 2,592 $ 2,844 $ 768 $ 2,588 $ 47 Total $ 7,555 $ 7,860 $ 768 $ 7,293 $ 205 Total recorded investment shown in the prior table will not equal the total ending balance of loans & leases individually evaluated for impairment on the allocation of allowance table. This is because this table does not include 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 December 31, 2017, the Company allocated $623,000 of specific reserves to $6.3 million of troubled debt restructured loans, all of which were performing. At December 31, 2016, the Company allocated $736,000 of specific reserves to $5.9 million of troubled debt restructured loans, of which $4.5 million were performing. The Company had no commitments at December 31, 2017 and December 31, 2016 to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings. During the period ending December 31, 2017, 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 ranged from 3 to 5 years. Modifications involving an extension of the maturity date ranged from 3 to 10 years. The following table presents loans by class modified as troubled debt restructured loans for the period ended December 31, 2017 (in thousands) December 31, 2017 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 2 $ 673 $ 630 Home Equity Lines and Loans 1 32 32 Commercial 2 138 138 Consumer & Other 1 9 8 Total 6 $ 852 $ 808 The troubled debt restructurings described above had no impact on the allowance for credit losses and resulted in charge-offs of $44,000 for the twelve months ended December 31, 2017. During the period ended December 31, 2017, there were no payment defaults on loans modified as troubled debt restructurings within twelve months following the modification. The Company considers a loan to be in payment default once it is greater than 90 days contractually past due under the modified terms. During the period ending December 31, 2016, 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 5 to 10 years. Modifications involving an extension of the maturity date were for periods ranging from 5 to 10 years. The following table presents loans by class modified as troubled debt restructured loans for the period ended December 31, 2016 (in thousands) December 31, 2016 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial Real Estate 1 $ 112 $ 112 Residential 1st Mortgages 2 289 281 Home Equity Lines and Loans 2 305 286 Total 5 $ 706 $ 679 The troubled debt restructurings described above had no impact on the allowance for credit losses and resulted in charge-offs of $27,000 for the twelve months ended December 31, 2016. During the period ended December 31, 2016, there were no payment defaults on loans modified as troubled debt restructurings within twelve months following the modification. The Company considers a loan to be in payment default once it is greater than 90 days contractually past due under the modified terms. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | 7. Premises and Equipment Premises and equipment as of December 31 st (in thousands) 2017 2016 Land and Buildings $ 36,018 $ 37,003 Furniture, Fixtures, and Equipment 20,399 20,196 Leasehold Improvements 3,117 2,439 Subtotal 59,534 59,638 Less: Accumulated Depreciation and Amortization 30,855 30,409 Total $ 28,679 $ 29,229 Depreciation and amortization on premises and equipment included in occupancy and equipment expense amounted to $2,186,000, $1,896,000, and $1,685,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Total rental expense for premises was $688,000, $644,000, and $604,000 for the years ended December 31, 2017, 2016, and 2015, respectively. Rental income was $169,000, $102,000, and $94,000 for the years ended December 31, 2017, 2016, and 2015, respectively. |
Other Real Estate
Other Real Estate | 12 Months Ended |
Dec. 31, 2017 | |
Other Real Estate [Abstract] | |
Other Real Estate | 8. Other Real Estate The Bank reported $837,000 in other real estate at December 31, 2017, and $3.7 million at December 31, 2016. Other real estate includes property no longer utilized for business operations and property acquired through foreclosure proceedings. These properties are carried at fair value less selling costs determined at the date acquired. Losses, if any, arising from properties acquired through foreclosure are charged against the allowance for loan losses at the time of foreclosure. Subsequent declines in value, periodic holding costs, and net gains or losses on disposition are included in other operating expense as incurred. Other real estate is reported in Interest Receivable and Other Assets on the Company’s Consolidated Balance Sheets. |
Time Deposits
Time Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Time Deposits [Abstract] | |
Time Deposits | 9. Time Deposits Time Deposits of $250,000 or more as of December 31 were as follows: (in thousands) 2017 2016 Balance $ 212,574 $ 289,955 At December 31, 2017, the scheduled maturities of time deposits were as follows: Scheduled Maturitie 2018 $ 426,874 2019 30,219 2020 10,317 2021 3,100 2022 4,887 Total $ 475,397 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes Current and deferred income tax expense (benefit) provided for the years ended December 31 consisted of the following: (in thousands) 2017 2016 2015 Current Federal $ 9,460 $ 13,101 $ 11,979 State 4,046 4,832 4,446 Total Current 13,056 17,933 16,425 Deferred Federal 11,154 (1,607 ) 383 State 1,451 (229 ) 116 Total Deferred 12,605 (1,836 ) 499 Total Provision for Taxes $ 26,111 $ 16,097 $ 16,924 The total provision for income taxes differs from the federal statutory rate as follows: 2017 2016 2015 (in thousands) Amount Rate Amount Rate Amount Rate Tax Provision at Federal Statutory Rate $ 19,068 35.0 % $ 16,037 35.0 % $ 15,510 35.0 % Interest on Obligations of States and Political Subdivisions exempt from Federal Taxation (617 ) (1.1 %) (675 ) (1.5 %) (711 ) (1.6 %) State and Local Income Taxes, Net of Federal Income Tax Benefit 3,573 6.5 % 2,992 6.5 % 2,966 6.7 % Bank Owned Life Insurance (696 ) (1.3 %) (731 ) (1.6 %) (712 ) (1.6 %) Low-Income Housing Tax Credit (1,546 ) (2.8 %) (1,201 ) (2.6 %) (291 ) (0.7 %) Bargain Purchase Gain - 0.0 % (641 ) (1.4 %) - 0.0 % Deferred Tax Asset Remeasurement 6,256 11.5 % - 0.0 % - 0.0 % Other, Net 73 0.1 % 316 0.7 % 162 0.4 % Total Provision for Taxes $ 26,111 47.9 % $ 16,097 35.1 % $ 16,924 38.2 % The components of net deferred tax assets as of December 31 are as follows: The net deferred tax assets are reported in Interest Receivable and Other Assets on the Company's Consolidated Balance Sheet. (in thousands) 2017 2016 Deferred Tax Assets Allowance for Credit Losses $ 14,962 $ 20,260 Accrued Liabilities 7,421 9,807 Deferred Compensation 8,996 14,166 State Franchise Tax 850 1,680 Acquired Net Operating Loss 756 1,135 Fair Value Adjustment on Loans Acquired 242 429 Fair Value Adjustment on ORE Acquired 108 299 Unrealized Loss on Securities Available-for-Sale 373 58 Low-Income Housing Investment 470 366 Other 17 233 Total Deferred Tax Assets $ 34,195 $ 48,433 Deferred Tax Liabilities Premises and Equipment (1,361 ) (1,707 ) Securities Accretion (164 ) (341 ) Leasing Activities (12,389 ) (14,868 ) Core Deposit Intangible Asset (247 ) (398 ) Prepaid (964 ) (314 ) Other (944 ) (494 ) Total Deferred Tax Liabilities (16,069 ) (18,122 ) Net Deferred Tax Assets $ 18,126 $ 30,311 The Tax Cuts and Jobs Act, which lowers the Company’s previous 35% federal corporate tax rate to 21%, was signed into law by President Trump on December 22, 2017. In accordance with the ASC Topic 740, Income Taxes, companies must recognize the effect of tax law changes in the period of enactment. As a result, the Company is required to re-measure its deferred tax assets (DTA) and deferred tax liabilities (DTL) at the new tax rate of 21%. This onetime re-measurement resulted in a $6.3 million increase in the Company’s income tax provision. Based upon the level of historical taxable income and projections for future taxable income over the periods during which the deferred tax assets are expected to be deductible, Management believes it is more likely than not we will realize the benefit of the remaining deferred tax assets. The net deferred tax assets are reported in Interest Receivable and Other Assets on the Company’s Consolidated Balance Sheet. The Company and its subsidiaries file income tax returns in the U.S. federal and California jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by the tax authorities for the years before 2013. |
Short Term Borrowings
Short Term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Short Term Borrowings [Abstract] | |
Short Term Borrowings | 11. Short Term Borrowings As of December 31, 2017 and 2016, the Company had unused lines of credit available for short-term liquidity purposes of $1.0 billion and $962.8 million, respectively. Federal Funds purchased and advances are generally issued on an overnight basis. There were no advances from the FHLB at December 31, 2017 or 2016. There were no Federal Funds purchased or advances from the FRB at December 31, 2017 or 2016. |
Securities Sold Under Agreement
Securities Sold Under Agreement to Repurchase | 12 Months Ended |
Dec. 31, 2017 | |
Securities Sold Under Agreement to Repurchase [Abstract] | |
Securities Sold Under Agreement to Repurchase | 12. Securities Sold Under Agreement to Repurchase Securities Sold Under Agreement to Repurchase are used as secured borrowing alternatives to FHLB Advances or FRB Borrowings. At December 31, 2017 and December 31, 2016, the Company had no securities sold under agreement to repurchase. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2017 | |
Federal Home Loan Bank Advances [Abstract] | |
Federal Home Loan Bank Advances | 13. Federal Home Loan Bank Advances The Company had no short-term or long-term advances from the Federal Home Loan Bank of San Francisco at December 31, 2017 or 2016. In accordance with the Collateral Pledge and Security Agreement, advances are secured by all FHLB stock held by the Company. At December 31, 2017, $618.4 million in loans were approved for pledging as collateral on borrowing lines with the FHLB. The borrowing capacity on these loans was $521.2 million. |
Long-term Subordinated Debentur
Long-term Subordinated Debentures | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Subordinated Debentures [Abstract] | |
Long-term Subordinated Debentures | 14. Long-term Subordinated Debentures In December 2003, the Company formed a wholly owned Connecticut statutory business trust, FMCB Statutory Trust I (“Statutory Trust I”), which issued $10.0 million of guaranteed preferred beneficial interests in the Company’s junior subordinated deferrable interest debentures (the “Trust Preferred Securities”). The Company is not considered the primary beneficiary of the trust (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. These debentures qualify as Tier 1 capital under current regulatory guidelines. All of the common securities of Statutory Trust I are owned by the Company. The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by FMCB Statutory Trust to purchase $10.3 million of junior subordinated debentures of the Company, which carry a floating rate based on three-month LIBOR plus 2.85%. The debentures represent the sole asset of Statutory Trust I. The Trust Preferred Securities accrue and pay distributions at a floating rate of three-month LIBOR plus 2.85% per annum of the stated liquidation value of $1,000 per capital security. The Company has entered into contractual arrangements which, taken collectively, fully and unconditionally guarantee payment to the extent that Statutory Trust I has funds available therefore of: (i) accrued and unpaid distributions required to be paid on the Trust Preferred Securities; (ii) the redemption price with respect to any Trust Preferred Securities called for redemption by Statutory Trust I; and (iii) payments due upon a voluntary or involuntary dissolution, winding up, or liquidation of Statutory Trust I. The Trust Preferred Securities are mandatorily redeemable upon maturity of the subordinated debentures on December 17, 2033, or upon earlier redemption as provided in the indenture. The Company has the right to redeem the subordinated debentures purchased by Statutory Trust I, in whole or in part, on or after December 17, 2008. As specified in the indenture, if the subordinated debentures are redeemed prior to maturity, the redemption price will be the principal amount and any accrued but unpaid interest. Additionally, if the Company decided to defer interest on the subordinated debentures, the Company would be prohibited from paying cash dividends on the Company’s common stock. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 15. Shareholders' Equity In 1998, the Board approved the Company’s first common stock repurchase program. This program has been extended and expanded several times since then, and most recently, on August 11, 2015, the Board of Directors approved an extension of the $20 million stock repurchase program over the three-year period ending September 30, 2018. Repurchases under the program may be made from time to time on the open market or through private transactions. The repurchase program also requires that no repurchases may be made if the Bank would not remain “well-capitalized” after the repurchase. There were no stock repurchases made in 2017 or 2016. Dividends from the Bank constitute the principal source of cash to the Company. The Company is a legal entity separate and distinct from the Bank. Under regulations controlling California state chartered banks, the Bank is, to some extent, limited in the amount of dividends that can be paid to the Company without prior approval of the California DBO. These regulations require approval if total dividends declared by a state chartered bank in any calendar year exceed the bank's net profits for that year combined with its retained net profits for the preceding two calendar years. During 2017, the Company issued 4,975 shares of common stock. All of these shares were contributed to the Bank’s non-qualified defined contribution retirement plans. The shares issued had prices ranging from $590 per share to $595 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(a)(2) of the Securities Act of 1933, as amended, and the regulations promulgated thereunder. The proceeds from these issuances were contributed to the Bank as equity capital. During 2016, the Company issued 16,542 shares of common stock, of which 4,610 shares were contributed to the Bank’s non-qualified defined contribution retirement plans and 11,932 shares were issued in the acquisition of Delta National Bancorp. The shares issued had prices ranging from $525 per share to $580 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(a)(2) of the Securities Act of 1933, as amended, and the regulations promulgated thereunder. The proceeds from these issuances were contributed to the Bank as equity capital. The Company and the Bank are subject to various federal regulatory capital requirements under the Basel III Capital Rules. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The implementation of Basel III requirements will increase the required capital levels that the Company and the Bank must maintain. The final rules include new minimum risk-based capital and leverage ratios, which would be phased in over time. The new minimum capital level requirements applicable to the Company and the Bank under the final rules will be: (i) a common equity Tier 1 capital ratio of 4.5% of risk-weighted assets (“RWA”); (ii) a Tier 1 capital ratio of 6% of RWA; (iii) a total capital ratio of 8% of RWA; and (iv) a Tier 1 leverage ratio of 4% of total assets. The final rules also establish a "capital conservation buffer" of 2.5% above each of the new regulatory minimum capital ratios, which would result in the following minimum ratios: (i) a common equity Tier 1 capital ratio of 7.0% of RWA; (ii) a Tier 1 capital ratio of 8.5% of RWA; and (iii) a total capital ratio of 10.5% of RWA. An institution will be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. The final rules also permit the Company’s subordinated debentures issued in 2003 to continue to be counted as Tier 1 capital. The final rules became effective as applied to the Company and the Bank on January 1, 2015, with a phase in period through January 1, 2019. The Company believes that it is currently in compliance with all of these new capital requirements (as fully phased-in) and that they will not result in any restrictions on the Company’s business activity. In addition, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since that notification that management believes have changed the Bank’s category. (in thousands) Actual Current Regulatory Capital Requirements Well Capitalized Under Prompt Corrective Action December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total Bank Capital to Risk Weighted Assets $ 330,041 12.66 % $ 208,552 8.0 % $ 260,691 10.0 % Total Consolidated Capital to Risk Weighted Assets $ 342,210 13.07 % $ 209,532 8.0 % N/A N/A Total Bank Common Equity Tier 1 Capital Ratio $ 297,232 11.40 % $ 117,311 4.5 % $ 169,449 6.5 % Total Consolidated Common Equity Tier 1 Capital Ratio $ 299,401 11.43 % $ 117,862 4.5 % N/A N/A Tier 1 Bank Capital to Risk Weighted Assets $ 297,232 11.40 % $ 156,414 6.0 % $ 208,552 8.0 % Tier 1 Consolidated Capital to Risk Weighted Assets $ 309,250 11.81 % $ 157,150 6.0 % N/A N/A Tier 1 Bank Capital to Average Assets $ 297,232 9.65 % $ 123,178 4.0 % $ 153,972 5.0 % Tier 1 Consolidated Capital to Average Assets $ 309,250 9.99 % $ 123,790 4.0 % N/A N/A (in thousands) Actual Current Regulatory Capital Requirements Well Capitalized Under Prompt Corrective Action December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Total Bank Capital to Risk Weighted Assets $ 319,776 12.79 % $ 199,958 8.0 % $ 249,947 10.0 % Total Consolidated Capital to Risk Weighted Assets $ 319,983 12.80 % $ 199,981 8.0 % N/A N/A Total Bank Common Equity Tier 1 Capital Ratio $ 288,324 11.54 % $ 112,476 4.5 % $ 162,466 6.5 % Total Consolidated Common Equity Tier 1 Capital Ratio $ 278,981 11.16 % $ 112,489 4.5 % N/A N/A Tier 1 Bank Capital to Risk Weighted Assets $ 288,323 11.54 % $ 149,968 6.0 % $ 199,958 8.0 % Tier 1 Consolidated Capital to Risk Weighted Assets $ 288,527 11.54 % $ 149,986 6.0 % N/A N/A Tier 1 Bank Capital to Average Assets $ 288,324 10.08 % $ 114,409 4.0 % $ 143,011 5.0 % Tier 1 Consolidated Capital to Average Assets $ 288,527 10.07 % $ 114,568 4.0 % N/A N/A |
Dividends and Basic Earnings Pe
Dividends and Basic Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Dividends and Basic Earnings Per Common Share [Abstract] | |
Dividends and Basic Earnings Per Common Share | 16. Dividends and Basic Earnings Per Common Share Total cash dividends during 2017 were $10,982,000 or $13.55 per share of common stock, an increase of 3.4% per share from $10,478,000 or $13.10 per share in 2016. In 2015, cash dividends totaled $10,157,000 or $12.90 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 periods indicated. ( net income in thousands 2017 2016 2015 Net Income $ 28,370 $ 29,723 $ 27,392 Weighted Average Number of Common Shares Outstanding 809,834 793,970 786,582 Basic Earnings Per Common Share $ 35.03 $ 37.44 $ 34.82 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 17. Employee Benefit Plans Profit Sharing Plan The Company, through the Bank, sponsors a Profit Sharing Plan for substantially all full-time employees of the Company with one or more years of service. Participants receive up to two annual employer contributions, one is discretionary and the other is mandatory. The discretionary contributions to the Profit Sharing Plan are determined annually by the Board of Directors. The discretionary contributions totaled $1.0 million, $975,000, and $925,000 for the years ended December 31, 2017, 2016, and 2015, respectively. The mandatory contributions to the Profit Sharing Plan are made according to a predetermined set of criteria. Mandatory contributions totaled $1.2 million, $1.2 million, and $1.1 million for the years ended December 31, 2017, 2016, and 2015, respectively. Company employees are permitted, within limitations imposed by tax law, to make pretax contributions and after tax (Roth) contributions to the 401(k) feature of the Profit Sharing Plan. The Company does not match employee contributions within the 401(k) feature of the Profit Sharing Plan and the Company can terminate the Profit Sharing Plan at any time. Benefits pursuant to the Profit Sharing Plan vest 0% during the first year of participation, 25% per full year thereafter and after five years such benefits are fully vested. Executive Retirement Plan and Life Insurance Arrangements The Company, through the Bank, sponsors an Executive Retirement Plan for certain executive level employees. The Executive Retirement Plan is a non-qualified defined contribution plan and was developed to supplement the Company’s Profit Sharing Plan, which, as a qualified retirement plan, has a ceiling on benefits as set by the Internal Revenue Service. The Plan is comprised of: (1) a Performance Component which makes contributions based upon long-term cumulative profitability and increase in market value of the Company; (2) a Salary Component which makes contributions based upon participant salary levels; and (3) an Equity Component for which contributions are discretionary and subject to Board of Directors approval. Executive Retirement Plan contributions are invested in a mix of financial instruments; however, Equity Component contributions are invested primarily in stock of the Company. The Company expensed $4.3 million to the Executive Retirement Plan during the year ended December 31, 2017, $3.8 million during the year ended December 31, 2016 and $3.5 million during the year ended December 31, 2015. The Company’s total accrued liability under the Executive Retirement Plan was $43.3 million as of December 31, 2017 and $37.4 million as of December 31, 2016. All amounts have been fully funded into a Rabbi Trust as of December 31, 2017. The Company has purchased single premium life insurance policies on the lives of certain key employees of the Company. These policies provide: (1) financial protection to the Company in the event of the death of a key employee; and (2) significant income to the Company to offset the expense associated with the Executive Retirement Plan and other employee benefit plans, since the interest earned on the cash surrender value of the policies is tax exempt as long as the policies are used to finance employee benefits. As compensation to each employee for agreeing to allow the Company to purchase an insurance policy on his or her life, split dollar agreements have been entered into with those employees. These agreements provide for a division of the life insurance death proceeds between the Company and each employee’s designated beneficiary or beneficiaries. The Company earned tax-exempt interest on the life insurance policies of $1.8 million for the year ended December 31, 2017, and $1.9 million for the years ended December 31, 2016, and 2015. As of December 31, 2017 and 2016, the total cash surrender value of the insurance policies was $59.6 million and $57.8 million, respectively. Senior Management Retention Plan The Company, through the Bank, sponsors a Senior Management Retention Plan (“SMRP”) for certain senior level employees. The SMRP is a non-qualified defined contribution plan and was developed to supplement the Company’s Profit Sharing Plan, which, as a qualified retirement plan, has a ceiling on benefits as set by the Internal Revenue Service. All contributions are discretionary and subject to the Board of Directors approval. Contributions are invested primarily in stock of the Company. The Company expensed $765,000 to the SMRP during the year ended December 31, 2017, $627,000 during the year ended December 31, 2016 and $530,000 during the year ended December 31, 2015. The Company’s total accrued liability under the SMRP was $4.4 million as of December 31, 2017 and $3.4 million as of December 31, 2016. All amounts have been fully funded into a Rabbi Trust as of December 31, 2017. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 18. 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 available-for-sale 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 December 31, 2017, there were no formal foreclosure proceedings in process for 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. (in thousands) Fair Value Total Fair Value Measurements At December 31, 2017, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,128 $ - $ 3,128 $ - US Treasury Notes 144,164 144,164 - - US Govt SBA 29,380 - 29,380 - Mortgage Backed Securities 301,914 - 301,914 - Other 3,010 200 310 2,500 Total Assets Measured at Fair Value On a Recurring Basis $ 481,596 $ 144,364 $ 334,732 $ 2,500 (in thousands) Fair Value Total Fair Value Measurements At December 31, 2016, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,241 $ - $ 3,241 $ - US Treasury Notes 134,428 134,428 - - US Govt SBA 36,314 36,314 Mortgage Backed Securities 273,270 - 273,270 - Other 1,010 200 310 500 Total Assets Measured at Fair Value On a Recurring Basis $ 448,263 $ 134,628 $ 313,135 $ 500 Fair values for Level 2 available-for-sale investment securities are based on quoted market prices for similar securities. During the year ended December 31, 2017, there were no transfers in or out of level 1, 2, or 3. The available for sale investment security categorized as a Level 3 asset for year ended December 31, 2017 consisted of one $2.5 million investment in a limited liability company that purchases SBA loans. The Company increased this investment by $2.0 million during 2017. This security is not actively traded and is owned by a few investors. The significant unobservable data reflected in the fair value measurement include dealer quotes, projected prepayment speeds/average lives and credit information, among other things. There were no gains or losses or transfers in or out of level 3 during the year ended December 31, 2017. The following tables present information about the Company’s impaired loans & leases and other real estate, 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 & leases are carried at fair value. Impaired loans & leases are only included in the following tables when their fair value is based upon an 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 December 31, 2017, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Commercial Real Estate $ 2,595 $ - $ - $ 2,595 Residential 1st Mortgage 997 - - 997 Home Equity Lines and Loans 75 - - 75 Commercial 1,514 - - 1,514 Total Impaired Loans 5,181 - - 5,181 Other Real Estate: Real Estate Construction 873 - - 873 Total Other Real Estate 873 - - 873 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 6,054 $ - $ - $ 6,054 Fair Value Measurements At December 31, 2016, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Residential 1st Mortgage $ 480 $ - $ - $ 480 Home Equity Lines and Loans 83 - - 83 Agricultural 497 - - 497 Commercial 833 - - 833 Total Impaired Loans 1,893 - - 1,893 Other Real Estate: Home Equity Lines and Loans 785 - - 785 Real Estate Construction 2,960 - - 2,960 Total Other Real Estate 3,745 - - 3,745 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 5,638 $ - $ - $ 5,638 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 December 31, 2017 (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans: Commercial Real Estate $ 2,595 Income Approach Capitalization Rate 3.25%, 3.25 % Residential 1st Mortgages $ 997 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% -4%, 2 % Home Equity Lines and Loans $ 75 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% - 2%, 2 % Commercial $ 1,514 Income Approach Capitalization Rate 2.95% - 8.70%, 3.40 % Other Real Estate: Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 19. 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 December 31, 2017 (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 Estimatd Fair Value Assets: Cash and Cash Equivalents $ 187,149 $ 187,149 $ - $ - $ 187,149 Investment Securities Available-for-Sale 481,596 29,580 449,516 2,500 481,596 Investment Securities Held-to-Maturity 54,460 - 38,492 16,744 55,236 FHLB Stock 10,342 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,164,953 - - 2,137,987 2,137,987 Accrued Interest Receivable 10,999 - 10,999 - 10,999 Liabilities: Deposits 2,723,228 2,247,831 472,671 - 2,720,502 Subordinated Debentures 10,310 - 7,428 - 7,428 Accrued Interest Payable 1,137 - 1,137 - 1,137 Fair Value of Financial Instruments Using December 31, 2016 (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 $ 98,960 $ 98,960 $ - $ - $ 98,960 Investment Securities Available-for-Sale 448,263 134,628 313,135 500 448,263 Investment Securities Held-to-Maturity 58,109 - 40,415 17,993 58,408 FHLB Stock 8,872 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,129,682 - - 2,107,060 2,107,060 Accrued Interest Receivable 10,047 - 10,047 - 10,047 Liabilities: Deposits 2,581,711 2,011,418 569,183 - 2,580,601 Subordinated Debentures 10,310 - 6,578 - 6,578 Accrued Interest Payable 852 - 852 - 852 Fair value estimates presented herein are based on pertinent information available to management as of December 31, 2017 and December 31, 2016. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purpose of these financial statements since that date, and; therefore, current estimates of fair value may differ significantly from the amounts presented above. The methods and assumptions used to estimate the fair value of each class of financial instrument listed in the table above are explained below. 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 Loan & Lease 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 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. 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies In the normal course of business, the Company enters in to financial instruments with off balance sheet risk in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These instruments include commitments to extend credit, letters of credit, and other types of financial guarantees. The Company had the following off balance sheet commitments as of the dates indicated. (in thousands) December 31, 2017 December 31, 2016 Commitments to Extend Credit $ 735,678 $ 609,653 Letters of Credit 20,061 20,444 Performance Guarantees Under Interest Rate Swap Contracts Entered Into Between Our Borrowing Customers and Third Parties 759 1,835 The Company's exposure to credit loss in the event of nonperformance by the other party with regard to standby letters of credit, undisbursed loan commitments, and financial guarantees is represented by the contractual notional amount of those instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. The Company uses the same credit policies in making commitments and conditional obligations as it does for recorded balance sheet items. The Company may or may not require collateral or other security to support financial instruments with credit risk. Evaluations of each customer's creditworthiness are performed on a case-by-case basis. Standby letters of credit are conditional commitments issued by the Company to guarantee performance of or payment for a customer to a third party. Outstanding standby letters of credit have maturity dates ranging from 1 to 60 months with final expiration in January 2023. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company is obligated under a number of noncancellable operating leases for premises and equipment used for banking purposes. Minimum future rental commitments under noncancellable operating leases as of December 31, 2017, were $670,000, $ ,000, 644 In the ordinary course of business, the Company becomes involved in litigation arising out of its normal business activities. Management, after consultation with legal counsel, believes that the ultimate liability, if any, resulting from the disposition of such claims would not be material in relation to the financial position of the Company. The Company may be required to maintain average reserves on deposit with the Federal Reserve Bank primarily based on deposits outstanding. There were no reserve requirements during 2017 or 2016. |
Recent Accounting Developments
Recent Accounting Developments | 12 Months Ended |
Dec. 31, 2017 | |
Recent Accounting Developments [Abstract] | |
Recent Accounting Developments | 21. Recent Accounting Developments In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU will require the earlier recognition of credit losses on loans and other financial instruments based on an expected loss model, replacing the incurred loss model that is currently in use. Under the new guidance, an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The expected loss model will apply to loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. The impairment model for available-for-sale debt securities will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. The new guidance is effective on January 1, 2020, with early adoption permitted on January 1, 2019. The Company is currently In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606). As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Update modifies the guidance companies use to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company Financial Information [Abstract] | |
Parent Company Financial Information | 22. Parent Company Financial Information The following financial information is presented as of December 31 for the periods indicated. Farmers & Merchants Bancorp Condensed Balance Sheets (in thousands) 2017 2016 Cash $ 332 $ 228 Investment in Farmers & Merchants Bank of Central California 297,643 289,778 Investment Securities 409 409 Other Assets 12,006 184 Total Assets $ 310,390 $ 290,599 Subordinated Debentures $ 10,310 $ 10,310 Liabilities 420 308 Shareholders' Equity 299,660 279,981 Total Liabilities and Shareholders' Equity $ 310,390 $ 290,599 Farmers & Merchants Bancorp Condensed Statements of Income Year Ended December 31, (in thousands) 2017 2016 2015 Equity in Undistributed Earnings in Farmers & Merchants Bank of Central California $ 5,575 $ 17,043 $ 17,352 Dividends from Subsidiary 23,575 14,275 10,875 Interest Income 13 11 10 Other Expenses, Net (1,552 ) (2,485 ) (1,451 ) Tax Benefit 759 879 606 Net Income $ 28,370 $ 29,723 $ 27,392 Farmers & Merchants Bancorp Condensed Statements of Cash Flows Year Ended December 31, (in thousands) 2017 2016 2015 Cash Flows from Operating Activities: Net Income $ 28,370 $ 29,723 $ 27,392 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Equity in Undistributed Net Earnings from Subsidiary (5,575 ) (17,043 ) (17,352 ) Net (Increase) Decrease in Other Assets (11,822 ) (124 ) (79 ) Net Increase (Decrease) in Liabilities 112 49 141 Net Cash Provided by Operating Activities 11,085 12,605 10,102 Investing Activities: Securities Sold or Matured 1 - - Payments for Business Acquisition - (2,207 ) - Payments for Investments in Subsidiaries (2,953 ) (2,586 ) (3,360 ) Net Cash Used by Investing Activities (2,952 ) (4,793 ) (3,360 ) Financing Activities: Issuance of Common Stock 2,953 2,586 3,360 Cash Dividends (10,982 ) (10,478 ) (10,157 ) Net Cash Used By Financing Activities (8,029 ) (7,892 ) (6,797 ) Increase (Decrease) in Cash and Cash Equivalents 104 (80 ) (55 ) Cash and Cash Equivalents at Beginning of Year 228 308 363 Cash and Cash Equivalents at End of Year $ 332 $ 228 $ 308 |
Quarterly Unaudited Financial D
Quarterly Unaudited Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Unaudited Financial Data [Abstract] | |
Quarterly Unaudited Financial Data | 23. Quarterly Unaudited Financial Data The following tables set forth certain unaudited historical quarterly financial data for each of the eight consecutive quarters in 2017 and 2016. This information is derived from unaudited consolidated financial statements that include, in management’s opinion, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation when read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K. 2017 (in thousands except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total Total Interest Income $ 27,242 $ 28,069 $ 29,609 $ 29,692 $ 114,612 Total Interest Expense 1,376 1,538 1,759 1,616 6,289 Net Interest Income 25,866 26,531 27,850 28,076 108,323 Provision for Credit Losses 600 650 1,600 - 2,850 Net Interest Income After Provision for Credit Losses 25,266 25,881 26,250 28,076 105,473 Total Non-Interest Income 5,406 3,539 3,638 4,179 16,762 Total Non-Interest Expense 18,422 16,525 16,307 16,500 67,754 Income Before Income Taxes 12,250 12,895 13,581 15,755 54,481 Provision for Income Taxes 4,429 4,708 5,000 11,974 26,111 Net Income $ 7,821 $ 8,187 $ 8,581 $ 3,781 $ 28,370 Basic Earnings Per Common Share $ 9.68 $ 10.12 $ 10.59 $ 4.64 $ 35.03 2016 (in thousands except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total Total Interest Income $ 24,026 $ 24,314 $ 25,262 $ 25,664 $ 99,266 Total Interest Expense 920 951 1,110 1,215 4,196 Net Interest Income 23,106 23,363 24,152 24,449 95,070 Provision for Credit Losses 2,600 - 250 3,485 6,335 Net Interest Income After Provision for Credit Losses 20,506 23,363 23,902 20,964 88,735 Total Non-Interest Income 2,721 2,875 4,553 5,108 15,257 Total Non-Interest Expense 12,019 14,737 16,414 15,002 58,172 Income Before Income Taxes 11,208 11,501 12,041 11,070 45,820 Provision for Income Taxes 4,036 4,169 4,503 3,389 16,097 Net Income $ 7,172 $ 7,332 $ 7,538 $ 7,681 $ 29,723 Basic Earnings Per Common Share $ 9.06 $ 9.25 $ 9.51 $ 9.62 $ 37.44 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. Subsequent Events On February 27, 2018 the Company acquired an additional 8 shares of Bank of Rio Vista for $95,200, increasing our total ownership to 1,586 shares, or 39.65% of the total common shares outstanding. |
Significant Accounting Polici33
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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. 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' 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. |
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. |
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 & 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 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 Board (“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. |
Acquired Loans | Acquired Loans Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit discounts, which reflect estimates of credit losses, expected to be incurred over the life of the loan, are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. |
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. The Company accounts for leases with Investment Tax Credits (ITC) under the deferred method as established in ASC 740-10. ITC are viewed and accounted for as a reduction of the cost of the related assets and presented as deferred income on the Company’s financial statement. 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 Consolidated Statements of Income. |
Basic Earnings Per Common Share | 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 basic earnings per common share. See Note 16 for additional information. |
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 only reports one segment. |
Low Income Housing Tax Credit Investments (LIHTC) | Low Income Housing Tax Credit Investments (LIHTC) The Company accounts for its interest in LIHTC using the cost method as established in ASC 323-740. As an investor, the Company obtains income tax credits and deductions from the operating losses of these tax credit entities. The income tax credits and deductions are allocated to the investors based on their ownership percentages and are recorded as a reduction of income tax expense (or an increase to income tax benefit) and a reduction of federal income taxes payable. |
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. |
Business Combinations And Related Matters | Business Combinations And Related Matters Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the fair value over the purchase price of net assets and other identifiable intangible assets acquired is recorded as bargain purchase gain. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value, if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of operations from the date of acquisition. Acquisition-related costs, including conversion charges, are expensed as incurred. The Company applied this guidance to the acquisition of Delta National Bancorp that was consummated on November 18, 2016. The Company's consolidated financial statements reflect the operations of Delta National Bancorp from November 19, 2016 through December 31, 2016. |
Intangible Assets | Intangible Assets Intangible assets are comprised of core deposit intangibles acquired in the Delta National Bancorp acquisition. Intangible assets with definite useful lives are amortized over their respective estimated useful lives. If an event occurs that indicates the carrying amount of an intangible asset may not be recoverable, management reviews the asset for impairment. |
Recent Accounting Developments
Recent Accounting Developments (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Recent Accounting Developments [Abstract] | |
Recent Accounting Developments | In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU will require the earlier recognition of credit losses on loans and other financial instruments based on an expected loss model, replacing the incurred loss model that is currently in use. Under the new guidance, an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The expected loss model will apply to loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. The impairment model for available-for-sale debt securities will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. The new guidance is effective on January 1, 2020, with early adoption permitted on January 1, 2019. The Company is currently In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606). As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Update modifies the guidance companies use to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,080 $ 48 $ - $ 3,128 US Treasury Notes 144,606 - 442 144,164 US Govt SBA 29,559 29 208 29,380 Mortgage Backed Securities (1) 302,502 939 1,527 301,914 Other 3,010 - - 3,010 Total $ 482,757 $ 1,016 $ 2,177 $ 481,596 Amortized Gross Unrealized Fair/Book December 31, 2016 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,127 $ 114 $ - $ 3,241 US Treasury Notes 134,755 5 332 134,428 US Govt SBA 36,532 42 260 36,314 Mortgage Backed Securities (1) 272,858 1,725 1,313 273,270 Other 1,010 - - 1,010 Total $ 448,282 $ 1,886 $ 1,905 $ 448,263 (1) All Mortgage Backed Securities were issued by an agency or government sponsored entity of the U.S. government. |
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 December 31, 2017 Value Gains Losses Value Obligations of States and Political Subdivisions $ 54,460 $ 776 $ - $ 55,236 Total $ 54,460 $ 776 $ - $ 55,236 Book Gross Unrealized Fair December 31, 2016 Value Gains Losses Value Obligations of States and Political Subdivisions $ 58,109 $ 339 $ 40 $ 58,408 Total $ 58,109 $ 339 $ 40 $ 58,408 |
Amortized Cost and Estimated Fair Values of Investment Securities by Contractual Maturity | The amortized cost and estimated fair values of investment securities at December 31, 2017 by contractual maturity are shown in the following tables. (in thousands) Available-for-Sale Held-to-Maturity December 31, 2017 Amortized Cost Fair/Book Value Book Value Fair Value Within One Year $ 113,065 $ 112,989 $ 1,760 $ 1,769 After One Year Through Five Years 30,207 29,979 8,659 8,664 After Five Years Through Ten Years 13,044 12,922 14,155 14,347 After Ten Years 23,939 23,792 29,886 30,456 180,255 179,682 54,460 55,236 Investment Securities Not Due at a Single Maturity Date: Mortgage Backed Securities 302,502 301,914 - - Total $ 482,757 $ 481,596 $ 54,460 $ 55,236 |
Investments with Gross Unrealized Losses and 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 December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 94,281 $ 144 $ 49,883 $ 298 $ 144,164 $ 442 US Govt SBA 8,379 51 12,900 157 21,279 208 Mortgage Backed Securities 126,863 932 43,208 595 170,071 1,527 Total $ 229,523 $ 1,127 $ 105,991 $ 1,050 $ 335,514 $ 2,177 Less Than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 99,429 $ 332 $ - $ - $ 99,429 $ 332 US Govt SBA 27,483 260 - - 27,483 260 Mortgage Backed Securities 123,157 1,313 - - 123,157 1,313 Total $ 250,069 $ 1,905 $ - $ - $ 250,069 $ 1,905 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 7,251 $ 40 $ - $ - $ 7,251 $ 40 Total $ 7,251 $ 40 $ - $ - $ 7,251 $ 40 |
Proceeds from Sales and Calls of Securities | Proceeds from sales and calls of these securities were as follows: (in thousands) Gross Proceeds Gross Gains Gross Losses 2017 $ 7,831 $ 143 $ 12 2016 $ 105,941 $ 250 $ 534 2015 $ 61,335 $ 275 $ - |
Loans & Leases (Tables)
Loans & Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans & Leases [Abstract] | |
Schedule of Loans and Leases | Loans & leases as of December 31 consisted of the following: (in thousands) 2017 2016 Commercial Real Estate $ 691,639 $ 674,445 Agricultural Real Estate 499,231 467,685 Real Estate Construction 100,206 176,462 Residential 1st Mortgages 260,751 242,247 Home Equity Lines and Loans 34,525 31,625 Agricultural 273,582 295,325 Commercial 265,703 217,577 Consumer & Other 6,656 6,913 Leases 88,957 70,986 Total Gross Loans & Leases 2,221,250 2,183,265 Less: Unearned Income 5,955 5,664 Subtotal 2,215,295 2,177,601 Less: Allowance for Credit Losses 50,342 47,919 Loans & Leases, Net $ 2,164,953 $ 2,129,682 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 at December 31, 2017 and December 31, 2016 by portfolio segment and by impairment methodology (in thousands) December 31, 2017 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, 2017 $ 11,110 $ 9,450 $ 3,223 $ 865 $ 2,140 $ 7,381 $ 8,515 $ 200 $ 3,586 $ 1,449 $ 47,919 Charge-Offs (109 ) - - (53 ) (3 ) (374 ) - (146 ) - - (685 ) Recoveries 109 - - 40 8 17 8 76 - - 258 Provision (188 ) 2,635 (1,377 ) (37 ) 179 1,135 674 79 (223 ) (27 ) 2,850 Ending Balance- December 31, 2017 $ 10,922 $ 12,085 $ 1,846 $ 815 $ 2,324 $ 8,159 $ 9,197 $ 209 $ 3,363 $ 1,422 $ 50,342 Ending Balance Individually Evaluated for Impairment 366 - - 73 17 - 220 8 - - 684 Ending Balance Collectively Evaluated for Impairment 10,556 12,085 1,846 742 2,307 8,159 8,977 201 3,363 1,422 49,658 Loans & Leases: Ending Balance $ 684,961 $ 499,231 $ 100,206 $ 260,751 $ 34,525 $ 273,582 $ 265,703 $ 6,656 $ 89,680 $ - $ 2,215,295 Ending Balance Individually Evaluated for Impairment 4,822 - - 2,373 340 - 1,734 10 - - 9,279 Ending Balance Collectively Evaluated for Impairment 680,139 499,231 100,206 258,378 34,185 273,582 263,969 6,646 89,680 - 2,206,016 December 31, 2016 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, 2016 $ 10,063 $ 6,881 $ 2,485 $ 789 $ 2,146 $ 6,308 $ 7,836 $ 175 $ 3,294 $ 1,546 $ 41,523 Charge-Offs - - - (21 ) (46 ) - - (105 ) - - (172 ) Recoveries 2 - - 26 103 - 47 55 - - 233 Provision 1,045 2,569 738 71 (63 ) 1,073 632 75 292 (97 ) 6,335 Ending Balance- December 31, 2016 $ 11,110 $ 9,450 $ 3,223 $ 865 $ 2,140 $ 7,381 $ 8,515 $ 200 $ 3,586 $ 1,449 $ 47,919 Ending Balance Individually Evaluated for Impairment - - - 70 18 128 608 7 - - 831 Ending Balance Collectively Evaluated for Impairment 11,110 9,450 3,223 795 2,122 7,253 7,907 193 3,586 1,449 47,088 Loans & Leases: Ending Balance $ 668,046 $ 467,685 $ 176,462 $ 242,247 $ 31,625 $ 295,325 $ 217,577 $ 6,913 $ 71,721 $ - $ 2,177,601 Ending Balance Individually Evaluated for Impairment 1,932 1,304 - 2,126 402 625 4,464 10 - - 10,863 Ending Balance Collectively Evaluated for Impairment 666,114 466,381 176,462 240,121 31,223 294,700 213,113 6,903 71,721 - 2,166,738 |
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 December 31, 2017 and December 31, 2016 (in thousands) December 31, 2017 Pass Special Mention Substandard Total Loans Loans & Leases: Commercial Real Estate $ 677,636 $ 6,843 $ 482 $ 684,961 Agricultural Real Estate 488,672 6,529 4,030 499,231 Real Estate Construction 90,728 9,478 - 100,206 Residential 1st Mortgages 259,795 41 915 260,751 Home Equity Lines and Loans 34,476 - 49 34,525 Agricultural 264,425 6,439 2,718 273,582 Commercial 260,565 4,610 528 265,703 Consumer & Other 6,498 - 158 6,656 Leases 87,497 2,183 - 89,680 Total $ 2,170,292 $ 36,123 $ 8,880 $ 2,215,295 December 31, 2016 Pass Special Mention Substandard Total Loans Loans & Leases: Commercial Real Estate $ 659,694 $ 6,817 $ 1,535 $ 668,046 Agricultural Real Estate 464,997 1,384 1,304 467,685 Real Estate Construction 176,462 - - 176,462 Residential 1st Mortgages 241,816 47 384 242,247 Home Equity Lines and Loans 31,558 - 67 31,625 Agricultural 283,525 11,366 434 295,325 Commercial 208,172 6,974 2,431 217,577 Consumer & Other 6,705 - 208 6,913 Leases 71,721 - - 71,721 Total $ 2,144,650 $ 26,588 $ 6,363 $ 2,177,601 |
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 December 31, 2017 and December 31, 2016 (in thousands) December 31, 2017 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 $ - $ - $ - $ - $ - $ 684,961 $ 684,961 Agricultural Real Estate - - - - - 499,231 499,231 Real Estate Construction - - - - - 100,206 100,206 Residential 1st Mortgages 448 - - - 448 260,303 260,751 Home Equity Lines and Loans 10 - - - 10 34,515 34,525 Agricultural - - - - - 273,582 273,582 Commercial 180 - - - 180 265,523 265,703 Consumer & Other 7 - - - 7 6,649 6,656 Leases - - - - - 89,680 89,680 Total $ 645 $ - $ - $ - $ 645 $ 2,214,650 $ 2,215,295 December 31, 2016 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 $ - $ - $ - $ - $ - $ 668,046 $ 668,046 Agricultural Real Estate - - - 1,304 1,304 466,381 467,685 Real Estate Construction - - - - - 176,462 176,462 Residential 1st Mortgages - - - 95 95 242,152 242,247 Home Equity Lines and Loans - - - - - 31,625 31,625 Agricultural - - - 243 243 295,082 295,325 Commercial - - - 1,425 1,425 216,152 217,577 Consumer & Other 10 - - 7 17 6,896 6,913 Leases - - - - - 71,721 71,721 Total $ 10 $ - $ - $ 3,074 $ 3,084 $ 2,174,517 $ 2,177,601 |
Impaired Loans & Leases | The following tables show information related to impaired loans & leases at and for the year ended December 31, 2017 and December 31, 2016 (in thousands) December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 104 $ 104 $ - $ 107 $ 11 Agricultural Real Estate - - - 488 - Residential 1st Mortgages 911 1,012 - 532 11 Home Equity Lines and Loans - - - 16 - Agricultural - - - 30 - $ 1,015 $ 1,116 $ - $ 1,173 $ 22 With an allowance recorded: Commercial Real Estate $ 2,973 $ 2,961 $ 366 $ 2,999 $ 104 Residential 1st Mortgages 508 571 25 469 16 Home Equity Lines and Loans 73 89 4 74 3 Agricultural - - - 409 21 Commercial 1,741 1,734 220 1,693 59 Consumer & Other 8 9 8 11 - $ 5,303 $ 5,364 $ 623 $ 5,655 $ 203 Total $ 6,318 $ 6,480 $ 623 $ 6,828 $ 225 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 184 $ 184 $ - $ 354 $ 7 Agricultural Real Estate 1,305 1,305 - 569 3 Residential 1st Mortgages 451 504 - 404 10 Home Equity Lines and Loans - - - 181 - Agricultural - - - 144 5 Commercial 3,023 3,023 - 3,053 133 $ 4,963 $ 5,016 $ - $ 4,705 $ 158 With an allowance recorded: Residential 1st Mortgages $ 430 $ 469 $ 21 $ 336 $ 13 Home Equity Lines and Loans 90 97 5 123 4 Agricultural 625 625 128 581 22 Commercial 1,441 1,640 608 1,536 8 Consumer & Other 6 13 6 12 - $ 2,592 $ 2,844 $ 768 $ 2,588 $ 47 Total $ 7,555 $ 7,860 $ 768 $ 7,293 $ 205 |
Loans & Leases by Class Modified as Troubled Debt Restructured Loans | The following table presents loans by class modified as troubled debt restructured loans for the period ended December 31, 2017 (in thousands) December 31, 2017 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 2 $ 673 $ 630 Home Equity Lines and Loans 1 32 32 Commercial 2 138 138 Consumer & Other 1 9 8 Total 6 $ 852 $ 808 The following table presents loans by class modified as troubled debt restructured loans for the period ended December 31, 2016 (in thousands) December 31, 2016 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial Real Estate 1 $ 112 $ 112 Residential 1st Mortgages 2 289 281 Home Equity Lines and Loans 2 305 286 Total 5 $ 706 $ 679 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment as of December 31 st (in thousands) 2017 2016 Land and Buildings $ 36,018 $ 37,003 Furniture, Fixtures, and Equipment 20,399 20,196 Leasehold Improvements 3,117 2,439 Subtotal 59,534 59,638 Less: Accumulated Depreciation and Amortization 30,855 30,409 Total $ 28,679 $ 29,229 |
Time Deposits (Tables)
Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Time Deposits [Abstract] | |
Time Deposits of $250,000 or More | Time Deposits of $250,000 or more as of December 31 were as follows: (in thousands) 2017 2016 Balance $ 212,574 $ 289,955 |
Maturities of Time Deposits | At December 31, 2017, the scheduled maturities of time deposits were as follows: Scheduled Maturitie 2018 $ 426,874 2019 30,219 2020 10,317 2021 3,100 2022 4,887 Total $ 475,397 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Current and Deferred Income Tax Expense (Benefit) | Current and deferred income tax expense (benefit) provided for the years ended December 31 consisted of the following: (in thousands) 2017 2016 2015 Current Federal $ 9,460 $ 13,101 $ 11,979 State 4,046 4,832 4,446 Total Current 13,056 17,933 16,425 Deferred Federal 11,154 (1,607 ) 383 State 1,451 (229 ) 116 Total Deferred 12,605 (1,836 ) 499 Total Provision for Taxes $ 26,111 $ 16,097 $ 16,924 |
Total Provision for Income Taxes Reconciliation with Federal Statutory Rate | The total provision for income taxes differs from the federal statutory rate as follows: 2017 2016 2015 (in thousands) Amount Rate Amount Rate Amount Rate Tax Provision at Federal Statutory Rate $ 19,068 35.0 % $ 16,037 35.0 % $ 15,510 35.0 % Interest on Obligations of States and Political Subdivisions exempt from Federal Taxation (617 ) (1.1 %) (675 ) (1.5 %) (711 ) (1.6 %) State and Local Income Taxes, Net of Federal Income Tax Benefit 3,573 6.5 % 2,992 6.5 % 2,966 6.7 % Bank Owned Life Insurance (696 ) (1.3 %) (731 ) (1.6 %) (712 ) (1.6 %) Low-Income Housing Tax Credit (1,546 ) (2.8 %) (1,201 ) (2.6 %) (291 ) (0.7 %) Bargain Purchase Gain - 0.0 % (641 ) (1.4 %) - 0.0 % Deferred Tax Asset Remeasurement 6,256 11.5 % - 0.0 % - 0.0 % Other, Net 73 0.1 % 316 0.7 % 162 0.4 % Total Provision for Taxes $ 26,111 47.9 % $ 16,097 35.1 % $ 16,924 38.2 % |
Components of Net Deferred Tax Assets | The components of net deferred tax assets as of December 31 are as follows: The net deferred tax assets are reported in Interest Receivable and Other Assets on the Company's Consolidated Balance Sheet. (in thousands) 2017 2016 Deferred Tax Assets Allowance for Credit Losses $ 14,962 $ 20,260 Accrued Liabilities 7,421 9,807 Deferred Compensation 8,996 14,166 State Franchise Tax 850 1,680 Acquired Net Operating Loss 756 1,135 Fair Value Adjustment on Loans Acquired 242 429 Fair Value Adjustment on ORE Acquired 108 299 Unrealized Loss on Securities Available-for-Sale 373 58 Low-Income Housing Investment 470 366 Other 17 233 Total Deferred Tax Assets $ 34,195 $ 48,433 Deferred Tax Liabilities Premises and Equipment (1,361 ) (1,707 ) Securities Accretion (164 ) (341 ) Leasing Activities (12,389 ) (14,868 ) Core Deposit Intangible Asset (247 ) (398 ) Prepaid (964 ) (314 ) Other (944 ) (494 ) Total Deferred Tax Liabilities (16,069 ) (18,122 ) Net Deferred Tax Assets $ 18,126 $ 30,311 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' Equity [Abstract] | |
Compliance with Regulatory Capital Requirements under Banking Regulations | In addition, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since that notification that management believes have changed the Bank’s category. (in thousands) Actual Current Regulatory Capital Requirements Well Capitalized Under Prompt Corrective Action December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total Bank Capital to Risk Weighted Assets $ 330,041 12.66 % $ 208,552 8.0 % $ 260,691 10.0 % Total Consolidated Capital to Risk Weighted Assets $ 342,210 13.07 % $ 209,532 8.0 % N/A N/A Total Bank Common Equity Tier 1 Capital Ratio $ 297,232 11.40 % $ 117,311 4.5 % $ 169,449 6.5 % Total Consolidated Common Equity Tier 1 Capital Ratio $ 299,401 11.43 % $ 117,862 4.5 % N/A N/A Tier 1 Bank Capital to Risk Weighted Assets $ 297,232 11.40 % $ 156,414 6.0 % $ 208,552 8.0 % Tier 1 Consolidated Capital to Risk Weighted Assets $ 309,250 11.81 % $ 157,150 6.0 % N/A N/A Tier 1 Bank Capital to Average Assets $ 297,232 9.65 % $ 123,178 4.0 % $ 153,972 5.0 % Tier 1 Consolidated Capital to Average Assets $ 309,250 9.99 % $ 123,790 4.0 % N/A N/A (in thousands) Actual Current Regulatory Capital Requirements Well Capitalized Under Prompt Corrective Action December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Total Bank Capital to Risk Weighted Assets $ 319,776 12.79 % $ 199,958 8.0 % $ 249,947 10.0 % Total Consolidated Capital to Risk Weighted Assets $ 319,983 12.80 % $ 199,981 8.0 % N/A N/A Total Bank Common Equity Tier 1 Capital Ratio $ 288,324 11.54 % $ 112,476 4.5 % $ 162,466 6.5 % Total Consolidated Common Equity Tier 1 Capital Ratio $ 278,981 11.16 % $ 112,489 4.5 % N/A N/A Tier 1 Bank Capital to Risk Weighted Assets $ 288,323 11.54 % $ 149,968 6.0 % $ 199,958 8.0 % Tier 1 Consolidated Capital to Risk Weighted Assets $ 288,527 11.54 % $ 149,986 6.0 % N/A N/A Tier 1 Bank Capital to Average Assets $ 288,324 10.08 % $ 114,409 4.0 % $ 143,011 5.0 % Tier 1 Consolidated Capital to Average Assets $ 288,527 10.07 % $ 114,568 4.0 % N/A N/A |
Dividends and Basic Earnings 42
Dividends and Basic Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Dividends and Basic Earnings Per Common Share [Abstract] | |
Calculation of Basic Earnings per Common Share | The following table calculates the basic earnings per common share for the periods indicated. ( net income in thousands 2017 2016 2015 Net Income $ 28,370 $ 29,723 $ 27,392 Weighted Average Number of Common Shares Outstanding 809,834 793,970 786,582 Basic Earnings Per Common Share $ 35.03 $ 37.44 $ 34.82 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
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. (in thousands) Fair Value Total Fair Value Measurements At December 31, 2017, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,128 $ - $ 3,128 $ - US Treasury Notes 144,164 144,164 - - US Govt SBA 29,380 - 29,380 - Mortgage Backed Securities 301,914 - 301,914 - Other 3,010 200 310 2,500 Total Assets Measured at Fair Value On a Recurring Basis $ 481,596 $ 144,364 $ 334,732 $ 2,500 (in thousands) Fair Value Total Fair Value Measurements At December 31, 2016, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,241 $ - $ 3,241 $ - US Treasury Notes 134,428 134,428 - - US Govt SBA 36,314 36,314 Mortgage Backed Securities 273,270 - 273,270 - Other 1,010 200 310 500 Total Assets Measured at Fair Value On a Recurring Basis $ 448,263 $ 134,628 $ 313,135 $ 500 |
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following tables present information about the Company’s impaired loans & leases and other real estate, 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 & leases are carried at fair value. Impaired loans & leases are only included in the following tables when their fair value is based upon an 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 December 31, 2017, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Commercial Real Estate $ 2,595 $ - $ - $ 2,595 Residential 1st Mortgage 997 - - 997 Home Equity Lines and Loans 75 - - 75 Commercial 1,514 - - 1,514 Total Impaired Loans 5,181 - - 5,181 Other Real Estate: Real Estate Construction 873 - - 873 Total Other Real Estate 873 - - 873 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 6,054 $ - $ - $ 6,054 Fair Value Measurements At December 31, 2016, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Residential 1st Mortgage $ 480 $ - $ - $ 480 Home Equity Lines and Loans 83 - - 83 Agricultural 497 - - 497 Commercial 833 - - 833 Total Impaired Loans 1,893 - - 1,893 Other Real Estate: Home Equity Lines and Loans 785 - - 785 Real Estate Construction 2,960 - - 2,960 Total Other Real Estate 3,745 - - 3,745 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 5,638 $ - $ - $ 5,638 |
Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on a Non-Recurring 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 December 31, 2017 (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans: Commercial Real Estate $ 2,595 Income Approach Capitalization Rate 3.25%, 3.25 % Residential 1st Mortgages $ 997 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% -4%, 2 % Home Equity Lines and Loans $ 75 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% - 2%, 2 % Commercial $ 1,514 Income Approach Capitalization Rate 2.95% - 8.70%, 3.40 % Other Real Estate: Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10 % |
Fair Value of Financial Instr44
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 (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 Estimatd Fair Value Assets: Cash and Cash Equivalents $ 187,149 $ 187,149 $ - $ - $ 187,149 Investment Securities Available-for-Sale 481,596 29,580 449,516 2,500 481,596 Investment Securities Held-to-Maturity 54,460 - 38,492 16,744 55,236 FHLB Stock 10,342 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,164,953 - - 2,137,987 2,137,987 Accrued Interest Receivable 10,999 - 10,999 - 10,999 Liabilities: Deposits 2,723,228 2,247,831 472,671 - 2,720,502 Subordinated Debentures 10,310 - 7,428 - 7,428 Accrued Interest Payable 1,137 - 1,137 - 1,137 Fair Value of Financial Instruments Using December 31, 2016 (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 $ 98,960 $ 98,960 $ - $ - $ 98,960 Investment Securities Available-for-Sale 448,263 134,628 313,135 500 448,263 Investment Securities Held-to-Maturity 58,109 - 40,415 17,993 58,408 FHLB Stock 8,872 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,129,682 - - 2,107,060 2,107,060 Accrued Interest Receivable 10,047 - 10,047 - 10,047 Liabilities: Deposits 2,581,711 2,011,418 569,183 - 2,580,601 Subordinated Debentures 10,310 - 6,578 - 6,578 Accrued Interest Payable 852 - 852 - 852 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Off Balance Sheet Arrangements | The Company had the following off balance sheet commitments as of the dates indicated. (in thousands) December 31, 2017 December 31, 2016 Commitments to Extend Credit $ 735,678 $ 609,653 Letters of Credit 20,061 20,444 Performance Guarantees Under Interest Rate Swap Contracts Entered Into Between Our Borrowing Customers and Third Parties 759 1,835 |
Parent Company Financial Info46
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company Financial Information [Abstract] | |
Condensed Balance Sheets | The following financial information is presented as of December 31 for the periods indicated. Farmers & Merchants Bancorp Condensed Balance Sheets (in thousands) 2017 2016 Cash $ 332 $ 228 Investment in Farmers & Merchants Bank of Central California 297,643 289,778 Investment Securities 409 409 Other Assets 12,006 184 Total Assets $ 310,390 $ 290,599 Subordinated Debentures $ 10,310 $ 10,310 Liabilities 420 308 Shareholders' Equity 299,660 279,981 Total Liabilities and Shareholders' Equity $ 310,390 $ 290,599 |
Condensed Statements of Income | Farmers & Merchants Bancorp Condensed Statements of Income Year Ended December 31, (in thousands) 2017 2016 2015 Equity in Undistributed Earnings in Farmers & Merchants Bank of Central California $ 5,575 $ 17,043 $ 17,352 Dividends from Subsidiary 23,575 14,275 10,875 Interest Income 13 11 10 Other Expenses, Net (1,552 ) (2,485 ) (1,451 ) Tax Benefit 759 879 606 Net Income $ 28,370 $ 29,723 $ 27,392 |
Condensed Statements of Cash Flows | Farmers & Merchants Bancorp Condensed Statements of Cash Flows Year Ended December 31, (in thousands) 2017 2016 2015 Cash Flows from Operating Activities: Net Income $ 28,370 $ 29,723 $ 27,392 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Equity in Undistributed Net Earnings from Subsidiary (5,575 ) (17,043 ) (17,352 ) Net (Increase) Decrease in Other Assets (11,822 ) (124 ) (79 ) Net Increase (Decrease) in Liabilities 112 49 141 Net Cash Provided by Operating Activities 11,085 12,605 10,102 Investing Activities: Securities Sold or Matured 1 - - Payments for Business Acquisition - (2,207 ) - Payments for Investments in Subsidiaries (2,953 ) (2,586 ) (3,360 ) Net Cash Used by Investing Activities (2,952 ) (4,793 ) (3,360 ) Financing Activities: Issuance of Common Stock 2,953 2,586 3,360 Cash Dividends (10,982 ) (10,478 ) (10,157 ) Net Cash Used By Financing Activities (8,029 ) (7,892 ) (6,797 ) Increase (Decrease) in Cash and Cash Equivalents 104 (80 ) (55 ) Cash and Cash Equivalents at Beginning of Year 228 308 363 Cash and Cash Equivalents at End of Year $ 332 $ 228 $ 308 |
Quarterly Unaudited Financial47
Quarterly Unaudited Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Unaudited Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The following tables set forth certain unaudited historical quarterly financial data for each of the eight consecutive quarters in 2017 and 2016. This information is derived from unaudited consolidated financial statements that include, in management’s opinion, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation when read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K. 2017 (in thousands except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total Total Interest Income $ 27,242 $ 28,069 $ 29,609 $ 29,692 $ 114,612 Total Interest Expense 1,376 1,538 1,759 1,616 6,289 Net Interest Income 25,866 26,531 27,850 28,076 108,323 Provision for Credit Losses 600 650 1,600 - 2,850 Net Interest Income After Provision for Credit Losses 25,266 25,881 26,250 28,076 105,473 Total Non-Interest Income 5,406 3,539 3,638 4,179 16,762 Total Non-Interest Expense 18,422 16,525 16,307 16,500 67,754 Income Before Income Taxes 12,250 12,895 13,581 15,755 54,481 Provision for Income Taxes 4,429 4,708 5,000 11,974 26,111 Net Income $ 7,821 $ 8,187 $ 8,581 $ 3,781 $ 28,370 Basic Earnings Per Common Share $ 9.68 $ 10.12 $ 10.59 $ 4.64 $ 35.03 2016 (in thousands except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total Total Interest Income $ 24,026 $ 24,314 $ 25,262 $ 25,664 $ 99,266 Total Interest Expense 920 951 1,110 1,215 4,196 Net Interest Income 23,106 23,363 24,152 24,449 95,070 Provision for Credit Losses 2,600 - 250 3,485 6,335 Net Interest Income After Provision for Credit Losses 20,506 23,363 23,902 20,964 88,735 Total Non-Interest Income 2,721 2,875 4,553 5,108 15,257 Total Non-Interest Expense 12,019 14,737 16,414 15,002 58,172 Income Before Income Taxes 11,208 11,501 12,041 11,070 45,820 Provision for Income Taxes 4,036 4,169 4,503 3,389 16,097 Net Income $ 7,172 $ 7,332 $ 7,538 $ 7,681 $ 29,723 Basic Earnings Per Common Share $ 9.06 $ 9.25 $ 9.51 $ 9.62 $ 37.44 |
Significant Accounting Polici48
Significant Accounting Policies (Details) $ in Thousands | Nov. 18, 2016USD ($)Branch | Dec. 31, 2017USD ($)ComponentCategoryFactorSegment | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||
Assets | $ | $ 3,075,452 | $ 2,922,121 | |
Investment Securities [Abstract] | |||
Number of components into which amount of impairment is split | Component | 2 | ||
Loans & Leases [Abstract] | |||
Consecutive months of payments to demonstrate sustained period of performance | 6 months | ||
Allowance for Credit Losses [Abstract] | |||
Number of primary components of overall allowance for loan losses | Component | 3 | ||
Number of categories into which risk ratings are grouped | Category | 5 | ||
Segment Reporting [Abstract] | |||
Number of reportable segments | Segment | 1 | ||
Minimum [Member] | |||
Loans & Leases [Abstract] | |||
Period after which loans are placed on non accrual status | 90 days | ||
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 | ||
Agricultural Real Estate [Member] | |||
Allowance for Credit Losses [Abstract] | |||
Number of risk factors on loans | Factor | 2 | ||
Agricultural [Member] | |||
Allowance for Credit Losses [Abstract] | |||
Number of risk factors on loans | Factor | 2 | ||
Delta National Bancorp [Member] | |||
Business Acquisition [Line Items] | |||
Assets | $ | $ 112,000 | ||
Number of branches | Branch | 4 |
Business Combinations (Details)
Business Combinations (Details) - Delta National Bancorp [Member] $ in Millions | Nov. 18, 2016USD ($) |
Business Acquisition [Line Items] | |
Loans | $ 32.4 |
Deposits | 103.7 |
Investments | $ 38.7 |
Investment Securities, Amortize
Investment Securities, Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | $ 482,757 | $ 448,282 | |
Gross unrealized gains | 1,016 | 1,886 | |
Gross unrealized losses | 2,177 | 1,905 | |
Fair/Book value | 481,596 | 448,263 | |
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | |||
Book value | 54,460 | 58,109 | |
Gross unrealized gains | 776 | 339 | |
Gross unrealized losses | 0 | 40 | |
Fair value | 55,236 | 58,408 | |
Government Agency & Government-Sponsored Entities [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | 3,080 | 3,127 | |
Gross unrealized gains | 48 | 114 | |
Gross unrealized losses | 0 | 0 | |
Fair/Book value | 3,128 | 3,241 | |
US Treasury Notes [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | 144,606 | 134,755 | |
Gross unrealized gains | 0 | 5 | |
Gross unrealized losses | 442 | 332 | |
Fair/Book value | 144,164 | 134,428 | |
US Govt SBA [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | 29,559 | 36,532 | |
Gross unrealized gains | 29 | 42 | |
Gross unrealized losses | 208 | 260 | |
Fair/Book value | 29,380 | 36,314 | |
Mortgage Backed Securities [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | [1] | 302,502 | 272,858 |
Gross unrealized gains | [1] | 939 | 1,725 |
Gross unrealized losses | [1] | 1,527 | 1,313 |
Fair/Book value | [1] | 301,914 | 273,270 |
Other [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | 3,010 | 1,010 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair/Book value | 3,010 | 1,010 | |
Obligations of States and Political Subdivisions [Member] | |||
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | |||
Book value | 54,460 | 58,109 | |
Gross unrealized gains | 776 | 339 | |
Gross unrealized losses | 0 | 40 | |
Fair value | $ 55,236 | $ 58,408 | |
[1] | All Mortgage Backed Securities were issued by an agency or government sponsored entity of the U.S. government. |
Investment Securities, Contract
Investment Securities, Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost [Abstract] | ||
Within one year | $ 113,065 | |
After one year through five years | 30,207 | |
After five years through ten years | 13,044 | |
After ten years | 23,939 | |
Amortized cost, excluding securities without single maturity date | 180,255 | |
Investment securities not due at a single maturity date, mortgage-backed securities | 302,502 | |
Amortized cost | 482,757 | |
Fair/Book Value [Abstract] | ||
Within one year | 112,989 | |
After one year through five years | 29,979 | |
After five years through ten years | 12,922 | |
After ten years | 23,792 | |
Fair/Book value, excluding securities without single maturity date | 179,682 | |
Investment securities not due at a single maturity date, mortgage-backed securities | 301,914 | |
Fair/Book value | 481,596 | $ 448,263 |
Book Value [Abstract] | ||
Within one year | 1,760 | |
After one year through five years | 8,659 | |
After five years through ten years | 14,155 | |
After ten years | 29,886 | |
Book value, excluding securities without single maturity date | 54,460 | |
Investment securities not due at a single maturity date, mortgage-backed securities | 0 | |
Book value | 54,460 | 58,109 |
Fair Value [Abstract] | ||
Within one year | 1,769 | |
After one year through five years | 8,664 | |
After five years through ten years | 14,347 | |
After ten years | 30,456 | |
Fair/Book value, excluding securities without single maturity date | 55,236 | |
Investment securities not due at a single maturity date, mortgage-backed securities | 0 | |
Fair value | $ 55,236 | $ 58,408 |
Investment Securities, Securiti
Investment Securities, Securities in Continuous Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($) | |
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months fair value | $ 229,523 | $ 250,069 |
Less than 12 months unrealized loss | 1,127 | 1,905 |
12 months or more fair value | 105,991 | 0 |
12 months or more unrealized loss | 1,050 | 0 |
Total fair value | 335,514 | 250,069 |
Total unrealized loss | $ 2,177 | 1,905 |
Number of investment securities held | Security | 476 | |
Less than 12 months, number of positions | Security | 97 | |
12 months or more, number of positions | Security | 98 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months fair value | 7,251 | |
Less than 12 months unrealized loss | 40 | |
12 months or more fair value | 0 | |
12 months or more unrealized loss | 0 | |
Total fair value | 7,251 | |
Total unrealized loss | 40 | |
US Treasury Notes [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months fair value | $ 94,281 | 99,429 |
Less than 12 months unrealized loss | 144 | 332 |
12 months or more fair value | 49,883 | 0 |
12 months or more unrealized loss | 298 | 0 |
Total fair value | 144,164 | 99,429 |
Total unrealized loss | $ 442 | 332 |
Less than 12 months, number of positions | Security | 7 | |
12 months or more, number of positions | Security | 2 | |
US Govt SBA [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months fair value | $ 8,379 | 27,483 |
Less than 12 months unrealized loss | 51 | 260 |
12 months or more fair value | 12,900 | 0 |
12 months or more unrealized loss | 157 | 0 |
Total fair value | 21,279 | 27,483 |
Total unrealized loss | $ 208 | 260 |
Less than 12 months, number of positions | Security | 54 | |
12 months or more, number of positions | Security | 70 | |
Mortgage Backed Securities [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months fair value | $ 126,863 | 123,157 |
Less than 12 months unrealized loss | 932 | 1,313 |
12 months or more fair value | 43,208 | 0 |
12 months or more unrealized loss | 595 | 0 |
Total fair value | 170,071 | 123,157 |
Total unrealized loss | $ 1,527 | 1,313 |
Less than 12 months, number of positions | Security | 26 | |
12 months or more, number of positions | Security | 36 | |
Government Agency & Government-Sponsored Entities [Member] | ||
Available-for-sale Securities in Continuous Unrealized Loss Position [Abstract] | ||
Total unrealized loss | $ 0 | 0 |
Less than 12 months, number of positions | Security | 0 | |
12 months or more, number of positions | Security | 0 | |
Obligations of States and Political Subdivisions [Member] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months fair value | 7,251 | |
Less than 12 months unrealized loss | 40 | |
12 months or more fair value | 0 | |
12 months or more unrealized loss | 0 | |
Total fair value | 7,251 | |
Total unrealized loss | $ 0 | $ 40 |
Less than 12 months, number of positions | Security | 0 | |
12 months or more, number of positions | Security | 0 | |
Municipal Bonds [Member] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Percentage of portfolio rated at either issue or issuer level | 99.00% | |
Percentage of portfolio not rated | 1.00% |
Investment Securities, Proceeds
Investment Securities, Proceeds From Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Proceeds from sales and calls of securities [Abstract] | |||
Gross proceeds | $ 7,831 | $ 105,941 | $ 61,335 |
Gross gains | 143 | 250 | 275 |
Gross losses | $ 12 | $ 534 | $ 0 |
Investment Securities, Pledged
Investment Securities, Pledged Securities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investment Securities [Abstract] | ||
Securities pledged to secure public deposits, FHLB borrowings, and other government agency deposits as required by law | $ 214.5 | $ 171.9 |
Investment Securities, Investme
Investment Securities, Investment in Unconsolidated Subsidiary (Details) - Voting Shares of Bank of Rio Vista [Member] - USD ($) $ in Millions | Jul. 20, 2017 | Apr. 05, 2017 |
Schedule of Cost-method Investments [Line Items] | ||
Percentage of voting shares acquired | 4.90% | |
Percentage of additional voting shares acquired | 34.55% | |
Payments to acquire business | $ 10.5 | $ 1.4 |
Federal Home Loan Bank Stock 56
Federal Home Loan Bank Stock and Other Equity Securities, at Cost (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank Stock and Other Equity Securities, at Cost [Abstract] | ||
FHLB stock and other equity securities | $ 22.6 | $ 9.2 |
Loans & Leases (Details)
Loans & Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | $ 2,221,250 | $ 2,183,265 | |
Less: Unearned Income | 5,955 | 5,664 | |
Total Loans & Leases | 2,215,295 | 2,177,601 | |
Less: Allowance for Credit Losses | 50,342 | 47,919 | $ 41,523 |
Loans & Leases, Net | 2,164,953 | 2,129,682 | |
Collateral on borrowing lines | 618,400 | ||
Federal Home Loan Bank [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collateral on borrowing lines | 618,400 | ||
Maximum borrowing capacity | 521,200 | ||
Federal Reserve Bank [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Collateral on borrowing lines | 568,600 | ||
Maximum borrowing capacity | 381,400 | ||
Commercial Real Estate [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | 691,639 | 674,445 | |
Total Loans & Leases | 684,961 | 668,046 | |
Less: Allowance for Credit Losses | 10,922 | 11,110 | 10,063 |
Agricultural Real Estate [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | 499,231 | 467,685 | |
Total Loans & Leases | 499,231 | 467,685 | |
Less: Allowance for Credit Losses | 12,085 | 9,450 | 6,881 |
Real Estate Construction [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | 100,206 | 176,462 | |
Total Loans & Leases | 100,206 | 176,462 | |
Less: Allowance for Credit Losses | 1,846 | 3,223 | 2,485 |
Residential 1st Mortgages [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | 260,751 | 242,247 | |
Total Loans & Leases | 260,751 | 242,247 | |
Less: Allowance for Credit Losses | 815 | 865 | 789 |
Home Equity Lines and Loans [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | 34,525 | 31,625 | |
Total Loans & Leases | 34,525 | 31,625 | |
Less: Allowance for Credit Losses | 2,324 | 2,140 | 2,146 |
Agricultural [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | 273,582 | 295,325 | |
Total Loans & Leases | 273,582 | 295,325 | |
Less: Allowance for Credit Losses | 8,159 | 7,381 | 6,308 |
Commercial [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | 265,703 | 217,577 | |
Total Loans & Leases | 265,703 | 217,577 | |
Less: Allowance for Credit Losses | 9,197 | 8,515 | 7,836 |
Consumer & Other [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | 6,656 | 6,913 | |
Total Loans & Leases | 6,656 | 6,913 | |
Less: Allowance for Credit Losses | 209 | 200 | 175 |
Leases [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans & Leases | 88,957 | 70,986 | |
Total Loans & Leases | 89,680 | 71,721 | |
Less: Allowance for Credit Losses | $ 3,363 | $ 3,586 | $ 3,294 |
Allowance for Credit Losses, Al
Allowance for Credit Losses, Allocation of The Allowance For Loan Losses by Portfolio Segment and By Impairment Methodology (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 47,919 | $ 41,523 | $ 47,919 | $ 41,523 | |||||||
Charge-Offs | (685) | (172) | |||||||||
Recoveries | 258 | 233 | |||||||||
Provision | $ 0 | $ 1,600 | $ 650 | 600 | $ 3,485 | $ 250 | $ 0 | 2,600 | 2,850 | 6,335 | $ 750 |
Ending Balance | 50,342 | 47,919 | 50,342 | 47,919 | 41,523 | ||||||
Ending Balance Individually Evaluated for Impairment | 684 | 831 | 684 | 831 | |||||||
Ending Balance Collectively Evaluated for Impairment | 49,658 | 47,088 | 49,658 | 47,088 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 2,215,295 | 2,177,601 | 2,215,295 | 2,177,601 | |||||||
Ending Balance Individually Evaluated for Impairment | 9,279 | 10,863 | 9,279 | 10,863 | |||||||
Ending Balance Collectively Evaluated for Impairment | 2,206,016 | 2,166,738 | 2,206,016 | 2,166,738 | |||||||
Commercial Real Estate [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 11,110 | 10,063 | 11,110 | 10,063 | |||||||
Charge-Offs | (109) | 0 | |||||||||
Recoveries | 109 | 2 | |||||||||
Provision | (188) | 1,045 | |||||||||
Ending Balance | 10,922 | 11,110 | 10,922 | 11,110 | 10,063 | ||||||
Ending Balance Individually Evaluated for Impairment | 366 | 0 | 366 | 0 | |||||||
Ending Balance Collectively Evaluated for Impairment | 10,556 | 11,110 | 10,556 | 11,110 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 684,961 | 668,046 | 684,961 | 668,046 | |||||||
Ending Balance Individually Evaluated for Impairment | 4,822 | 1,932 | 4,822 | 1,932 | |||||||
Ending Balance Collectively Evaluated for Impairment | 680,139 | 666,114 | 680,139 | 666,114 | |||||||
Agricultural Real Estate [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 9,450 | 6,881 | 9,450 | 6,881 | |||||||
Charge-Offs | 0 | 0 | |||||||||
Recoveries | 0 | 0 | |||||||||
Provision | 2,635 | 2,569 | |||||||||
Ending Balance | 12,085 | 9,450 | 12,085 | 9,450 | 6,881 | ||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |||||||
Ending Balance Collectively Evaluated for Impairment | 12,085 | 9,450 | 12,085 | 9,450 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 499,231 | 467,685 | 499,231 | 467,685 | |||||||
Ending Balance Individually Evaluated for Impairment | 0 | 1,304 | 0 | 1,304 | |||||||
Ending Balance Collectively Evaluated for Impairment | 499,231 | 466,381 | 499,231 | 466,381 | |||||||
Real Estate Construction [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 3,223 | 2,485 | 3,223 | 2,485 | |||||||
Charge-Offs | 0 | 0 | |||||||||
Recoveries | 0 | 0 | |||||||||
Provision | (1,377) | 738 | |||||||||
Ending Balance | 1,846 | 3,223 | 1,846 | 3,223 | 2,485 | ||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |||||||
Ending Balance Collectively Evaluated for Impairment | 1,846 | 3,223 | 1,846 | 3,223 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 100,206 | 176,462 | 100,206 | 176,462 | |||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |||||||
Ending Balance Collectively Evaluated for Impairment | 100,206 | 176,462 | 100,206 | 176,462 | |||||||
Residential 1st Mortgages [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 865 | 789 | 865 | 789 | |||||||
Charge-Offs | (53) | (21) | |||||||||
Recoveries | 40 | 26 | |||||||||
Provision | (37) | 71 | |||||||||
Ending Balance | 815 | 865 | 815 | 865 | 789 | ||||||
Ending Balance Individually Evaluated for Impairment | 73 | 70 | 73 | 70 | |||||||
Ending Balance Collectively Evaluated for Impairment | 742 | 795 | 742 | 795 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 260,751 | 242,247 | 260,751 | 242,247 | |||||||
Ending Balance Individually Evaluated for Impairment | 2,373 | 2,126 | 2,373 | 2,126 | |||||||
Ending Balance Collectively Evaluated for Impairment | 258,378 | 240,121 | 258,378 | 240,121 | |||||||
Home Equity Lines and Loans [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 2,140 | 2,146 | 2,140 | 2,146 | |||||||
Charge-Offs | (3) | (46) | |||||||||
Recoveries | 8 | 103 | |||||||||
Provision | 179 | (63) | |||||||||
Ending Balance | 2,324 | 2,140 | 2,324 | 2,140 | 2,146 | ||||||
Ending Balance Individually Evaluated for Impairment | 17 | 18 | 17 | 18 | |||||||
Ending Balance Collectively Evaluated for Impairment | 2,307 | 2,122 | 2,307 | 2,122 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 34,525 | 31,625 | 34,525 | 31,625 | |||||||
Ending Balance Individually Evaluated for Impairment | 340 | 402 | 340 | 402 | |||||||
Ending Balance Collectively Evaluated for Impairment | 34,185 | 31,223 | 34,185 | 31,223 | |||||||
Agricultural [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 7,381 | 6,308 | 7,381 | 6,308 | |||||||
Charge-Offs | (374) | 0 | |||||||||
Recoveries | 17 | 0 | |||||||||
Provision | 1,135 | 1,073 | |||||||||
Ending Balance | 8,159 | 7,381 | 8,159 | 7,381 | 6,308 | ||||||
Ending Balance Individually Evaluated for Impairment | 0 | 128 | 0 | 128 | |||||||
Ending Balance Collectively Evaluated for Impairment | 8,159 | 7,253 | 8,159 | 7,253 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 273,582 | 295,325 | 273,582 | 295,325 | |||||||
Ending Balance Individually Evaluated for Impairment | 0 | 625 | 0 | 625 | |||||||
Ending Balance Collectively Evaluated for Impairment | 273,582 | 294,700 | 273,582 | 294,700 | |||||||
Commercial [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 8,515 | 7,836 | 8,515 | 7,836 | |||||||
Charge-Offs | 0 | 0 | |||||||||
Recoveries | 8 | 47 | |||||||||
Provision | 674 | 632 | |||||||||
Ending Balance | 9,197 | 8,515 | 9,197 | 8,515 | 7,836 | ||||||
Ending Balance Individually Evaluated for Impairment | 220 | 608 | 220 | 608 | |||||||
Ending Balance Collectively Evaluated for Impairment | 8,977 | 7,907 | 8,977 | 7,907 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 265,703 | 217,577 | 265,703 | 217,577 | |||||||
Ending Balance Individually Evaluated for Impairment | 1,734 | 4,464 | 1,734 | 4,464 | |||||||
Ending Balance Collectively Evaluated for Impairment | 263,969 | 213,113 | 263,969 | 213,113 | |||||||
Consumer & Other [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 200 | 175 | 200 | 175 | |||||||
Charge-Offs | (146) | (105) | |||||||||
Recoveries | 76 | 55 | |||||||||
Provision | 79 | 75 | |||||||||
Ending Balance | 209 | 200 | 209 | 200 | 175 | ||||||
Ending Balance Individually Evaluated for Impairment | 8 | 7 | 8 | 7 | |||||||
Ending Balance Collectively Evaluated for Impairment | 201 | 193 | 201 | 193 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 6,656 | 6,913 | 6,656 | 6,913 | |||||||
Ending Balance Individually Evaluated for Impairment | 10 | 10 | 10 | 10 | |||||||
Ending Balance Collectively Evaluated for Impairment | 6,646 | 6,903 | 6,646 | 6,903 | |||||||
Leases [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | 3,586 | 3,294 | 3,586 | 3,294 | |||||||
Charge-Offs | 0 | 0 | |||||||||
Recoveries | 0 | 0 | |||||||||
Provision | (223) | 292 | |||||||||
Ending Balance | 3,363 | 3,586 | 3,363 | 3,586 | 3,294 | ||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |||||||
Ending Balance Collectively Evaluated for Impairment | 3,363 | 3,586 | 3,363 | 3,586 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 89,680 | 71,721 | 89,680 | 71,721 | |||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |||||||
Ending Balance Collectively Evaluated for Impairment | 89,680 | 71,721 | 89,680 | 71,721 | |||||||
Unallocated [Member] | |||||||||||
Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 1,449 | $ 1,546 | 1,449 | 1,546 | |||||||
Charge-Offs | 0 | 0 | |||||||||
Recoveries | 0 | 0 | |||||||||
Provision | (27) | (97) | |||||||||
Ending Balance | 1,422 | 1,449 | 1,422 | 1,449 | $ 1,546 | ||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |||||||
Ending Balance Collectively Evaluated for Impairment | 1,422 | 1,449 | 1,422 | 1,449 | |||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance | 0 | 0 | 0 | 0 | |||||||
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | |||||||
Ending Balance Collectively Evaluated for Impairment | 0 | 0 | 0 | 0 | |||||||
Restructured Loans [Member] | |||||||||||
Loans & Leases [Abstract] | |||||||||||
Ending Balance Individually Evaluated for Impairment | $ 3,000 | $ 3,300 | $ 3,000 | $ 3,300 |
Allowance for Credit Losses, Lo
Allowance for Credit Losses, Loan Portfolio Allocated by Management's Internal Credit Ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | $ 2,215,295 | $ 2,177,601 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 2,170,292 | 2,144,650 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 36,123 | 26,588 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 8,880 | 6,363 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 0 | 0 |
Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 0 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 684,961 | 668,046 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 677,636 | 659,694 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 6,843 | 6,817 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 482 | 1,535 |
Agricultural Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 499,231 | 467,685 |
Agricultural Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 488,672 | 464,997 |
Agricultural Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 6,529 | 1,384 |
Agricultural Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 4,030 | 1,304 |
Real Estate Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 100,206 | 176,462 |
Real Estate Construction [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 90,728 | 176,462 |
Real Estate Construction [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 9,478 | 0 |
Real Estate Construction [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 0 | 0 |
Residential 1st Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 260,751 | 242,247 |
Residential 1st Mortgages [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 259,795 | 241,816 |
Residential 1st Mortgages [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 41 | 47 |
Residential 1st Mortgages [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 915 | 384 |
Home Equity Lines and Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 34,525 | 31,625 |
Home Equity Lines and Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 34,476 | 31,558 |
Home Equity Lines and Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 0 | 0 |
Home Equity Lines and Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 49 | 67 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 273,582 | 295,325 |
Agricultural [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 264,425 | 283,525 |
Agricultural [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 6,439 | 11,366 |
Agricultural [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 2,718 | 434 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 265,703 | 217,577 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 260,565 | 208,172 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 4,610 | 6,974 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 528 | 2,431 |
Consumer & Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 6,656 | 6,913 |
Consumer & Other [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 6,498 | 6,705 |
Consumer & Other [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 0 | 0 |
Consumer & Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 158 | 208 |
Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 89,680 | 71,721 |
Leases [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 87,497 | 71,721 |
Leases [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | 2,183 | 0 |
Leases [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans & leases | $ 0 | $ 0 |
Allowance for Credit Losses, Ag
Allowance for Credit Losses, Aging Analysis of Loan Portfolio by the Time Past Due (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | $ 0 | $ 0 | |
Nonaccrual | 0 | 3,074 | |
Total Past Due | 645 | 3,084 | |
Current | 2,214,650 | 2,174,517 | |
Total Loans & Leases | 2,215,295 | 2,177,601 | |
Interest income forgone on nonaccrual loans | 0 | 127 | $ 109 |
30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 645 | 10 | |
60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | |
Nonaccrual | 0 | 0 | |
Total Past Due | 0 | 0 | |
Current | 684,961 | 668,046 | |
Total Loans & Leases | 684,961 | 668,046 | |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 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 | |
Agricultural Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | |
Nonaccrual | 0 | 1,304 | |
Total Past Due | 0 | 1,304 | |
Current | 499,231 | 466,381 | |
Total Loans & Leases | 499,231 | 467,685 | |
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 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 | |
Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | |
Nonaccrual | 0 | 0 | |
Total Past Due | 0 | 0 | |
Current | 100,206 | 176,462 | |
Total Loans & Leases | 100,206 | 176,462 | |
Real Estate Construction [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 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 | |
Residential 1st Mortgages [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | |
Nonaccrual | 0 | 95 | |
Total Past Due | 448 | 95 | |
Current | 260,303 | 242,152 | |
Total Loans & Leases | 260,751 | 242,247 | |
Residential 1st Mortgages [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 448 | 0 | |
Residential 1st Mortgages [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Home Equity Lines and Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | |
Nonaccrual | 0 | 0 | |
Total Past Due | 10 | 0 | |
Current | 34,515 | 31,625 | |
Total Loans & Leases | 34,525 | 31,625 | |
Home Equity Lines and Loans [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 10 | 0 | |
Home Equity Lines and Loans [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | |
Nonaccrual | 0 | 243 | |
Total Past Due | 0 | 243 | |
Current | 273,582 | 295,082 | |
Total Loans & Leases | 273,582 | 295,325 | |
Agricultural [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Agricultural [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | |
Nonaccrual | 0 | 1,425 | |
Total Past Due | 180 | 1,425 | |
Current | 265,523 | 216,152 | |
Total Loans & Leases | 265,703 | 217,577 | |
Commercial [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 180 | 0 | |
Commercial [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Consumer & Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | |
Nonaccrual | 0 | 7 | |
Total Past Due | 7 | 17 | |
Current | 6,649 | 6,896 | |
Total Loans & Leases | 6,656 | 6,913 | |
Consumer & Other [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7 | 10 | |
Consumer & Other [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | |
Nonaccrual | 0 | 0 | |
Total Past Due | 0 | 0 | |
Current | 89,680 | 71,721 | |
Total Loans & Leases | 89,680 | 71,721 | |
Leases [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Leases [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 |
Allowance for Credit Losses, Im
Allowance for Credit Losses, Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
With no related allowance recorded [Abstract] | ||
Recorded Investment | $ 1,015 | $ 4,963 |
Unpaid Principal Balance | 1,116 | 5,016 |
Average Recorded Investment | 1,173 | 4,705 |
Interest Income Recognized | 22 | 158 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 5,303 | 2,592 |
Unpaid Principal Balance | 5,364 | 2,844 |
Related Allowance | 623 | 768 |
Average Recorded Investment | 5,655 | 2,588 |
Interest Income Recognized | 203 | 47 |
Total [Abstract] | ||
Recorded Investment | 6,318 | 7,555 |
Unpaid Principal Balance | 6,480 | 7,860 |
Related Allowance | 623 | 768 |
Average Recorded Investment | 6,828 | 7,293 |
Interest Income Recognized | 225 | 205 |
Commercial Real Estate [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 104 | 184 |
Unpaid Principal Balance | 104 | 184 |
Average Recorded Investment | 107 | 354 |
Interest Income Recognized | 11 | 7 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 2,973 | |
Unpaid Principal Balance | 2,961 | |
Related Allowance | 366 | |
Average Recorded Investment | 2,999 | |
Interest Income Recognized | 104 | |
Total [Abstract] | ||
Related Allowance | 366 | |
Agricultural Real Estate [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 0 | 1,305 |
Unpaid Principal Balance | 0 | 1,305 |
Average Recorded Investment | 488 | 569 |
Interest Income Recognized | 0 | 3 |
Residential 1st Mortgages [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 911 | 451 |
Unpaid Principal Balance | 1,012 | 504 |
Average Recorded Investment | 532 | 404 |
Interest Income Recognized | 11 | 10 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 508 | 430 |
Unpaid Principal Balance | 571 | 469 |
Related Allowance | 25 | 21 |
Average Recorded Investment | 469 | 336 |
Interest Income Recognized | 16 | 13 |
Total [Abstract] | ||
Related Allowance | 25 | 21 |
Home Equity Lines and Loans [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Average Recorded Investment | 16 | 181 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 73 | 90 |
Unpaid Principal Balance | 89 | 97 |
Related Allowance | 4 | 5 |
Average Recorded Investment | 74 | 123 |
Interest Income Recognized | 3 | 4 |
Total [Abstract] | ||
Related Allowance | 4 | 5 |
Agricultural [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Average Recorded Investment | 30 | 144 |
Interest Income Recognized | 0 | 5 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 0 | 625 |
Unpaid Principal Balance | 0 | 625 |
Related Allowance | 0 | 128 |
Average Recorded Investment | 409 | 581 |
Interest Income Recognized | 21 | 22 |
Total [Abstract] | ||
Related Allowance | 0 | 128 |
Commercial [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 3,023 | |
Unpaid Principal Balance | 3,023 | |
Average Recorded Investment | 3,053 | |
Interest Income Recognized | 133 | |
With an allowance recorded [Abstract] | ||
Recorded Investment | 1,741 | 1,441 |
Unpaid Principal Balance | 1,734 | 1,640 |
Related Allowance | 220 | 608 |
Average Recorded Investment | 1,693 | 1,536 |
Interest Income Recognized | 59 | 8 |
Total [Abstract] | ||
Related Allowance | 220 | 608 |
Consumer & Other [Member] | ||
With an allowance recorded [Abstract] | ||
Recorded Investment | 8 | 6 |
Unpaid Principal Balance | 9 | 13 |
Related Allowance | 8 | 6 |
Average Recorded Investment | 11 | 12 |
Interest Income Recognized | 0 | 0 |
Total [Abstract] | ||
Related Allowance | $ 8 | $ 6 |
Allowance for Credit Losses, 62
Allowance for Credit Losses, Loans by Class Modified as Troubled Debt Restructured Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||
Specific reserves | $ 623 | $ 736 |
Troubled debt restructured loans | 5,900 | |
Commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings | $ 0 | $ 0 |
Loans by class modified as troubled debt restructured loans [Abstract] | ||
Number of Loans | Loan | 6 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 852 | $ 706 |
Post-Modification Recorded Outstanding Investment | 808 | 679 |
Increase in allowance for loan losses due to TDR | 0 | 0 |
TDR's charge-offs | $ 44 | $ 27 |
Number of loans modified as troubled debt restructurings with subsequent payment defaults | Loan | 0 | 0 |
Threshold period after which loan is considered to be in payment default | 90 days | |
Stated Interest Rate Reduction [Member] | Minimum [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Period of modifications | 3 years | 5 years |
Stated Interest Rate Reduction [Member] | Maximum [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Period of modifications | 5 years | 10 years |
Extended Maturity [Member] | Minimum [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Period of modifications | 3 years | 5 years |
Extended Maturity [Member] | Maximum [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Period of modifications | 10 years | 10 years |
Performing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructured loans | $ 6,300 | $ 4,500 |
Commercial Real Estate [Member] | ||
Loans by class modified as troubled debt restructured loans [Abstract] | ||
Number of Loans | Loan | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 112 | |
Post-Modification Recorded Outstanding Investment | $ 112 | |
Residential 1st Mortgages [Member] | ||
Loans by class modified as troubled debt restructured loans [Abstract] | ||
Number of Loans | Loan | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 673 | $ 289 |
Post-Modification Recorded Outstanding Investment | $ 630 | $ 281 |
Home Equity Lines and Loans [Member] | ||
Loans by class modified as troubled debt restructured loans [Abstract] | ||
Number of Loans | Loan | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 32 | $ 305 |
Post-Modification Recorded Outstanding Investment | $ 32 | $ 286 |
Commercial [Member] | ||
Loans by class modified as troubled debt restructured loans [Abstract] | ||
Number of Loans | Loan | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 138 | |
Post-Modification Recorded Outstanding Investment | $ 138 | |
Consumer & Other [Member] | ||
Loans by class modified as troubled debt restructured loans [Abstract] | ||
Number of Loans | Loan | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 9 | |
Post-Modification Recorded Outstanding Investment | $ 8 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 59,534 | $ 59,638 | |
Less: Accumulated Depreciation and Amortization | 30,855 | 30,409 | |
Total | 28,679 | 29,229 | |
Depreciation and amortization | 2,186 | 1,896 | $ 1,685 |
Total rental expense | 688 | 644 | 604 |
Rental income | 169 | 102 | $ 94 |
Land and Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 36,018 | 37,003 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 20,399 | 20,196 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 3,117 | $ 2,439 |
Other Real Estate (Details)
Other Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Real Estate [Abstract] | ||
Other real estate, net | $ 837 | $ 3,700 |
Time Deposits (Details)
Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Time Deposits $250,000 or more [Abstract] | ||
Balance | $ 212,574 | $ 289,955 |
Maturities of Time Deposits [Abstract] | ||
2,018 | 426,874 | |
2,019 | 30,219 | |
2,020 | 10,317 | |
2,021 | 3,100 | |
2,022 | 4,887 | |
Total | $ 475,397 | $ 570,293 |
Income Taxes, Current and Defer
Income Taxes, Current and Deferred Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current [Abstract] | |||||||||||
Federal | $ 9,460 | $ 13,101 | $ 11,979 | ||||||||
State | 4,046 | 4,832 | 4,446 | ||||||||
Total Current | 13,506 | 17,933 | 16,425 | ||||||||
Deferred [Abstract] | |||||||||||
Federal | 11,154 | (1,607) | 383 | ||||||||
State | 1,451 | (229) | 116 | ||||||||
Total Deferred | 12,605 | (1,836) | 499 | ||||||||
Total Provision for Taxes | $ 11,974 | $ 5,000 | $ 4,708 | $ 4,429 | $ 3,389 | $ 4,503 | $ 4,169 | $ 4,036 | $ 26,111 | $ 16,097 | $ 16,924 |
Income Taxes, Effective Income
Income Taxes, Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Tax Provision at Federal Statutory Rate | $ 19,068 | $ 16,037 | $ 15,510 | ||||||||
Interest on Obligations of States and Political Subdivisions exempt from Federal Taxation | (617) | (675) | (711) | ||||||||
State and Local Income Taxes, Net of Federal Income Tax Benefit | 3,573 | 2,992 | 2,966 | ||||||||
Bank Owned Life Insurance | (696) | (731) | (712) | ||||||||
Low-Income Housing Tax Credit | (1,546) | (1,201) | (291) | ||||||||
Bargain Purchase Gain | 0 | (641) | 0 | ||||||||
Deferred Tax Asset Remeasurement | 6,256 | 0 | 0 | ||||||||
Other, Net | 73 | 316 | 162 | ||||||||
Total Provision for Taxes | $ 11,974 | $ 5,000 | $ 4,708 | $ 4,429 | $ 3,389 | $ 4,503 | $ 4,169 | $ 4,036 | $ 26,111 | $ 16,097 | $ 16,924 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
Tax Provision at Federal Statutory Rate | 35.00% | 35.00% | 35.00% | ||||||||
Interest on Obligations of States and Political Subdivisions exempt from Federal Taxation | (1.10%) | (1.50%) | (1.60%) | ||||||||
State and Local Income Taxes, Net of Federal Income Tax Benefit | 6.50% | 6.50% | 6.70% | ||||||||
Bank Owned Life Insurance | (1.30%) | (1.60%) | (1.60%) | ||||||||
Low-Income Housing Tax Credit | (2.80%) | (2.60%) | (0.70%) | ||||||||
Bargain Purchase Gain | (0.00%) | (1.40%) | (0.00%) | ||||||||
Deferred Tax Asset Remeasurement | 11.50% | 0.00% | 0.00% | ||||||||
Other, Net | 0.10% | 0.70% | 0.40% | ||||||||
Total Provision for Taxes | 47.90% | 35.10% | 38.20% |
Income Taxes, Components of Net
Income Taxes, Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Tax Assets [Abstract] | ||||
Allowance for Credit Losses | $ 14,962 | $ 20,260 | ||
Accrued Liabilities | 7,421 | 9,807 | ||
Deferred Compensation | 8,996 | 14,166 | ||
State Franchise Tax | 850 | 1,680 | ||
Acquired Net Operating Loss | 756 | 1,135 | ||
Fair Value Adjustment on Loans Acquired | 242 | 429 | ||
Fair Value Adjustment on ORE Acquired | 108 | 299 | ||
Unrealized Loss on Securities Available-for-Sale | 373 | 58 | ||
Low-Income Housing Investment | 470 | 366 | ||
Other | 17 | 233 | ||
Total Deferred Tax Assets | 34,195 | 48,433 | ||
Deferred Tax Liabilities [Abstract] | ||||
Premises and Equipment | (1,361) | (1,707) | ||
Securities Accretion | (164) | (341) | ||
Leasing Activities | (12,389) | (14,868) | ||
Core Deposit Intangible Asset | (247) | (398) | ||
Prepaid | (964) | (314) | ||
Other | (944) | (494) | ||
Total Deferred Tax Liabilities | (16,069) | (18,122) | ||
Net Deferred Tax Assets | $ 18,126 | $ 30,311 | ||
Income Tax Disclosure [Line Items] | ||||
Tax Provision at Federal Statutory Rate | 35.00% | 35.00% | 35.00% | |
Plan [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax Provision at Federal Statutory Rate | 21.00% |
Short Term Borrowings (Details)
Short Term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Short Term Borrowings [Abstract] | ||
Unused lines of credit | $ 1,000 | $ 962.8 |
Advances from FHLB | 0 | 0 |
Federal Funds purchased or advances from FRB | $ 0 | $ 0 |
Securities Sold Under Agreeme70
Securities Sold Under Agreement to Repurchase (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Sold Under Agreement to Repurchase [Abstract] | ||
Securities sold under agreements to repurchase | $ 0 | $ 0 |
Federal Home Loan Bank Advanc71
Federal Home Loan Bank Advances (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank Advances [Abstract] | ||
Federal Home Loan Bank Advances, long term | $ 0 | $ 0 |
Federal Home Loan Bank Advances, short term | 0 | $ 0 |
Collateral on borrowing lines | 618.4 | |
Borrowing capacity | $ 521.2 |
Long-term Subordinated Debent72
Long-term Subordinated Debentures (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Debt Instrument [Line Items] | |
Guaranteed preferred beneficial interests | $ 10 |
Liquidation value (per capital security) | $ / shares | $ 1,000 |
Trust Preferred Securities redemption date | Dec. 17, 2033 |
Junior Subordinated Debentures [Member] | |
Debt Instrument [Line Items] | |
Junior subordinated debentures | $ 10.3 |
Junior Subordinated Debentures [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Term of variable rate | 3 months |
Basis spread on variable rate | 2.85% |
Shareholders' Equity, Stock Rep
Shareholders' Equity, Stock Repurchase Program, Dividends and Issuance of Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||
Approved funds available for common stock repurchase program | $ 20 | |
Stock repurchase program, period in force | 3 years | |
Number of shares of stock repurchased (in shares) | 0 | 0 |
Retained net profit period | 2 years | |
Issuance of common stock (in shares) | 4,975 | 16,542 |
Issuance of common stock for contribution to non-qualified defined contribution retirement plans (in shares) | 4,975 | 4,610 |
Minimum [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Per share price of shares issued (in dollars per share) | $ 590 | $ 525 |
Maximum [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Per share price of shares issued (in dollars per share) | $ 595 | $ 580 |
Delta National Bancorp [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Issuance of common stock in acquisition (in shares) | 11,932 |
Shareholders' Equity, Complianc
Shareholders' Equity, Compliance with Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Total Capital to Risk Weighted Assets [Abstract] | ||
Actual Amount | $ 342,210 | $ 319,983 |
Current Regulatory Capital Requirement, Amount | $ 209,532 | $ 199,981 |
Total Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Actual Ratio | 13.07% | 12.80% |
Current Regulatory Capital Requirement, Ratio | 8.00% | 8.00% |
Total Common Equity Tier 1 Capital [Abstract] | ||
Actual Amount | $ 299,401 | $ 278,981 |
Current Regulatory Capital Requirement, Amount | $ 117,862 | $ 112,489 |
Total Common Equity Tier 1 Capital, Ratio [Abstract] | ||
Actual Ratio | 11.43% | 11.16% |
Current Regulatory Capital Requirement, Ratio | 4.50% | 4.50% |
Tier 1 Capital to Risk Weighted Assets [Abstract] | ||
Actual Amount | $ 309,250 | $ 288,527 |
Current Regulatory Capital Requirement, Amount | $ 157,150 | $ 149,986 |
Tier 1 Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Actual Ratio | 11.81% | 11.54% |
Current Regulatory Capital Requirement Ratio | 6.00% | 6.00% |
Tier 1 Capital to Average Assets [Abstract] | ||
Actual Amount | $ 309,250 | $ 288,527 |
Current Regulatory Capital Requirement, Amount | $ 123,790 | $ 114,568 |
Tier 1 Capital to Average Assets, Ratio [Abstract] | ||
Actual Ratio | 9.99% | 10.07% |
Current Regulatory Capital Requirement, Ratio | 4.00% | 4.00% |
Bank [Member] | ||
Total Capital to Risk Weighted Assets [Abstract] | ||
Actual Amount | $ 330,041 | $ 319,776 |
Current Regulatory Capital Requirement, Amount | 208,552 | 199,958 |
Well Capitalized Under Prompt Corrective Action, Amount | $ 260,691 | $ 249,947 |
Total Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Actual Ratio | 12.66% | 12.79% |
Current Regulatory Capital Requirement, Ratio | 8.00% | 8.00% |
Well Capitalized Under Prompt Corrective Action, Ratio | 10.00% | 10.00% |
Total Common Equity Tier 1 Capital [Abstract] | ||
Actual Amount | $ 297,232 | $ 288,324 |
Current Regulatory Capital Requirement, Amount | 117,311 | 112,476 |
Well Capitalized Under Prompt Corrective Action, Amount | $ 169,449 | $ 162,466 |
Total Common Equity Tier 1 Capital, Ratio [Abstract] | ||
Actual Ratio | 11.40% | 11.54% |
Current Regulatory Capital Requirement, Ratio | 4.50% | 4.50% |
Well Capitalized Under Prompt Corrective Action, Ratio | 6.50% | 6.50% |
Tier 1 Capital to Risk Weighted Assets [Abstract] | ||
Actual Amount | $ 297,232 | $ 288,323 |
Current Regulatory Capital Requirement, Amount | 156,414 | 149,968 |
Well Capitalized Under Prompt Corrective Action, Amount | $ 208,552 | $ 199,958 |
Tier 1 Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Actual Ratio | 11.40% | 11.54% |
Current Regulatory Capital Requirement Ratio | 6.00% | 6.00% |
Well Capitalized Under Prompt Corrective Action, Ratio | 8.00% | 8.00% |
Tier 1 Capital to Average Assets [Abstract] | ||
Actual Amount | $ 297,232 | $ 288,324 |
Current Regulatory Capital Requirement, Amount | 123,178 | 114,409 |
Well Capitalized Under Prompt Corrective Action, Amount | $ 153,972 | $ 143,011 |
Tier 1 Capital to Average Assets, Ratio [Abstract] | ||
Actual Ratio | 9.65% | 10.08% |
Current Regulatory Capital Requirement, Ratio | 4.00% | 4.00% |
Well Capitalized Under Prompt Corrective Action, Ratio | 5.00% | 5.00% |
Dividends and Basic Earnings 75
Dividends and Basic Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividends and Basic Earnings Per Common Share [Abstract] | |||||||||||
Cash dividends | $ 10,982 | $ 10,478 | $ 10,157 | ||||||||
Cash dividends paid per share of common stock (in dollars per share) | $ 13.55 | $ 13.10 | $ 12.90 | ||||||||
Percentage increase in cash dividend per share | 3.40% | ||||||||||
Earnings per share for the period [Abstract] | |||||||||||
Net Income | $ 3,781 | $ 8,581 | $ 8,187 | $ 7,821 | $ 7,681 | $ 7,538 | $ 7,332 | $ 7,172 | $ 28,370 | $ 29,723 | $ 27,392 |
Weighted Average Number of Common Shares Outstanding (in shares) | 809,834 | 793,970 | 786,582 | ||||||||
Basic Earnings Per Common Share (in dollars per share) | $ 4.64 | $ 10.59 | $ 10.12 | $ 9.68 | $ 9.62 | $ 9.51 | $ 9.25 | $ 9.06 | $ 35.03 | $ 37.44 | $ 34.82 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Contribution | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Tax-exempt interest earned on the life insurance policies | $ 1,822 | $ 1,864 | $ 1,908 |
Executive Officers [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employer contribution | 4,300 | 3,800 | 3,500 |
Total accrued liability | 43,300 | 37,400 | |
Tax-exempt interest earned on the life insurance policies | 1,800 | 1,900 | 1,900 |
Cash surrender value of life insurance policies | 59,600 | 57,800 | |
Senior Level Employees [Member] | Senior Management Retention Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employer contribution | 765 | 627 | 530 |
Total accrued liability | $ 4,400 | 3,400 | |
Profit Sharing Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Type [Extensible List] | us-gaap:PensionPlansDefinedBenefitMember | ||
Minimum requisite service period | 1 year | ||
Number of annual employer contribution | Contribution | 2 | ||
Employer discretionary contribution amount | $ 1,000 | 975 | 925 |
Employer mandatory contributions amount | $ 1,200 | $ 1,200 | $ 1,100 |
Annual vesting percentage, first year | 0.00% | ||
Annual vesting percentage, full year thereafter | 25.00% | ||
Benefit vesting period | 5 years |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of selling costs | 10.00% | ||
Consumer mortgage loans in the process of foreclosure value | $ 0 | ||
Investment Securities Available-for-Sale | 481,596 | $ 448,263 | |
Gains (losses) for assets categorized as Level 3 assets | 0 | ||
Transfer into Level 3 | 0 | ||
Transfer out of Level 3 | 0 | ||
Government Agency & Government-Sponsored Entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 3,128 | 3,241 | |
US Treasury Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 144,164 | 134,428 | |
US Govt SBA [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 29,380 | 36,314 | |
Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | [1] | 301,914 | 273,270 |
Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 3,010 | 1,010 | |
Significant Unobservable Inputs (Level 3) [Member] | SBA Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 2,500 | ||
Amount of increase in investment | 2,000 | ||
Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 481,596 | 448,263 | |
Recurring [Member] | Government Agency & Government-Sponsored Entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 3,128 | 3,241 | |
Recurring [Member] | US Treasury Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 144,164 | 134,428 | |
Recurring [Member] | US Govt SBA [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 29,380 | 36,314 | |
Recurring [Member] | Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 301,914 | 273,270 | |
Recurring [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 3,010 | 1,010 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 144,364 | 134,628 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Agency & Government-Sponsored Entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 0 | 0 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Treasury Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 144,164 | 134,428 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Govt SBA [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 0 | 0 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 0 | 0 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 200 | 200 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 334,732 | 313,135 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Government Agency & Government-Sponsored Entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 3,128 | 3,241 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | US Treasury Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 0 | 0 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | US Govt SBA [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 29,380 | 36,314 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 301,914 | 273,270 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 310 | 310 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 2,500 | 500 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Government Agency & Government-Sponsored Entities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 0 | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Treasury Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 0 | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Govt SBA [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 0 | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | 0 | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Securities Available-for-Sale | $ 2,500 | $ 500 | |
[1] | All Mortgage Backed Securities were issued by an agency or government sponsored entity of the U.S. government. |
Fair Value Measurements, Asse78
Fair Value Measurements, Assets or Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 5,181 | $ 1,893 |
Other Real Estate | 873 | 3,745 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 6,054 | 5,638 |
Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 2,595 | |
Residential 1st Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 997 | 480 |
Home Equity Lines and Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 75 | 83 |
Other Real Estate | 785 | |
Agricultural [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 497 | |
Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 1,514 | 833 |
Real Estate Construction [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate | 873 | 2,960 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Other Real Estate | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Residential 1st Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Home Equity Lines and Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Other Real Estate | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Agricultural [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Construction [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Other Real Estate | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | |
Other Observable Inputs (Level 2) [Member] | Residential 1st Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Home Equity Lines and Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Other Real Estate | 0 | |
Other Observable Inputs (Level 2) [Member] | Agricultural [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | |
Other Observable Inputs (Level 2) [Member] | Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Real Estate Construction [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 5,181 | 1,893 |
Other Real Estate | 873 | 3,745 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 6,054 | 5,638 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 2,595 | |
Significant Unobservable Inputs (Level 3) [Member] | Residential 1st Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 997 | 480 |
Significant Unobservable Inputs (Level 3) [Member] | Home Equity Lines and Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 75 | 83 |
Other Real Estate | 785 | |
Significant Unobservable Inputs (Level 3) [Member] | Agricultural [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 497 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 1,514 | 833 |
Significant Unobservable Inputs (Level 3) [Member] | Real Estate Construction [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate | $ 873 | $ 2,960 |
Fair Value Measurements, Quanti
Fair Value Measurements, Quantitative Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Impaired Loans [Member] | Commercial Real Estate [Member] | Income Approach [Member] | |
Quantitative Information [Abstract] | |
Impaired Loans | $ 2,595 |
Unobservable inputs | Capitalization Rate |
Impaired Loans [Member] | Commercial Real Estate [Member] | Income Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 3.25% |
Impaired Loans [Member] | Commercial Real Estate [Member] | Income Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 3.25% |
Impaired Loans [Member] | Commercial Real Estate [Member] | Income Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 3.25% |
Impaired Loans [Member] | Residential 1st Mortgages [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Impaired Loans | $ 997 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Impaired Loans [Member] | Residential 1st Mortgages [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 1.00% |
Impaired Loans [Member] | Residential 1st Mortgages [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 4.00% |
Impaired Loans [Member] | Residential 1st Mortgages [Member] | Sales Comparison Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 2.00% |
Impaired Loans [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Impaired Loans | $ 75 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Impaired Loans [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 1.00% |
Impaired Loans [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 2.00% |
Impaired Loans [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 2.00% |
Impaired Loans [Member] | Commercial [Member] | Income Approach [Member] | |
Quantitative Information [Abstract] | |
Impaired Loans | $ 1,514 |
Unobservable inputs | Capitalization Rate |
Impaired Loans [Member] | Commercial [Member] | Income Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 2.95% |
Impaired Loans [Member] | Commercial [Member] | Income Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 8.70% |
Impaired Loans [Member] | Commercial [Member] | Income Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Capitalization rate | 3.40% |
Other Real Estate [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Other Real Estate | $ 873 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Other Real Estate [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 10.00% |
Other Real Estate [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 10.00% |
Other Real Estate [Member] | 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 Instr80
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Investment Securities Available-for-Sale | $ 481,596 | $ 448,263 |
Investment Securities Held-to-Maturity | 55,236 | 58,408 |
Carrying Amount [Member] | ||
Assets [Abstract] | ||
Cash and Cash Equivalents | 187,149 | 98,960 |
Investment Securities Available-for-Sale | 481,596 | 448,263 |
Investment Securities Held-to-Maturity | 54,460 | 58,109 |
FHLB Stock | 10,342 | 8,872 |
Loans & Leases, Net of Deferred Fees & Allowance | 2,164,953 | 2,129,682 |
Accrued Interest Receivable | 10,999 | 10,047 |
Liabilities [Abstract] | ||
Deposits | 2,723,228 | 2,581,711 |
Subordinated Debentures | 10,310 | 10,310 |
Accrued Interest Payable | 1,137 | 852 |
Estimated Fair Value [Member] | ||
Assets [Abstract] | ||
Cash and Cash Equivalents | 187,149 | 98,960 |
Investment Securities Available-for-Sale | 481,596 | 448,263 |
Investment Securities Held-to-Maturity | 55,236 | 58,408 |
Loans & Leases, Net of Deferred Fees & Allowance | 2,137,987 | 2,107,060 |
Accrued Interest Receivable | 10,999 | 10,047 |
Liabilities [Abstract] | ||
Deposits | 2,720,502 | 2,580,601 |
Subordinated Debentures | 7,428 | 6,578 |
Accrued Interest Payable | 1,137 | 852 |
Estimated Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Cash and Cash Equivalents | 187,149 | 98,960 |
Investment Securities Available-for-Sale | 29,580 | 134,628 |
Investment Securities Held-to-Maturity | 0 | 0 |
Loans & Leases, Net of Deferred Fees & Allowance | 0 | 0 |
Accrued Interest Receivable | 0 | 0 |
Liabilities [Abstract] | ||
Deposits | 2,247,831 | 2,011,418 |
Subordinated Debentures | 0 | 0 |
Accrued Interest Payable | 0 | 0 |
Estimated Fair Value [Member] | Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Cash and Cash Equivalents | 0 | 0 |
Investment Securities Available-for-Sale | 449,516 | 313,135 |
Investment Securities Held-to-Maturity | 38,492 | 40,415 |
Loans & Leases, Net of Deferred Fees & Allowance | 0 | 0 |
Accrued Interest Receivable | 10,999 | 10,047 |
Liabilities [Abstract] | ||
Deposits | 472,671 | 569,183 |
Subordinated Debentures | 7,428 | 6,578 |
Accrued Interest Payable | 1,137 | 852 |
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Cash and Cash Equivalents | 0 | 0 |
Investment Securities Available-for-Sale | 2,500 | 500 |
Investment Securities Held-to-Maturity | 16,744 | 17,993 |
Loans & Leases, Net of Deferred Fees & Allowance | 2,137,987 | 2,107,060 |
Accrued Interest Receivable | 0 | 0 |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Subordinated Debentures | 0 | 0 |
Accrued Interest Payable | $ 0 | $ 0 |
Commitments and Contingencies81
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum future rental commitments under noncancellable operating leases [Abstract] | ||
2,018 | $ 670 | |
2,019 | 634 | |
2,020 | 644 | |
2,021 | 462 | |
2,022 | 146 | |
Due remaining term of the lease | 139 | |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, amount, liability | 735,678 | $ 609,653 |
Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, amount, liability | $ 20,061 | 20,444 |
Letters of Credit [Member] | Minimum [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off balance sheet risks maturity period | 1 month | |
Letters of Credit [Member] | Maximum [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off balance sheet risks maturity period | 60 months | |
Performance Guarantees under Interest Rate Swap Contracts Entered into between our Borrowing Customers and Third Parties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risks, amount, liability | $ 759 | $ 1,835 |
Parent Company Financial Info82
Parent Company Financial Information, Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheets [Abstract] | ||||
Investment Securities | $ 536,056 | $ 506,372 | ||
Total Assets | 3,075,452 | 2,922,121 | ||
Subordinated Debentures | 10,310 | 10,310 | ||
Liabilities | 2,775,792 | 2,642,140 | ||
Shareholders' Equity | 299,660 | 279,981 | $ 251,835 | $ 233,178 |
Total Liabilities and Shareholders' Equity | 3,075,452 | 2,922,121 | ||
Parent Company [Member] | ||||
Condensed Balance Sheets [Abstract] | ||||
Cash | 332 | 228 | $ 308 | $ 363 |
Investment in Farmers & Merchants Bank of Central California | 297,643 | 289,778 | ||
Investment Securities | 409 | 409 | ||
Other Assets | 12,006 | 184 | ||
Total Assets | 310,390 | 290,599 | ||
Subordinated Debentures | 10,310 | 10,310 | ||
Liabilities | 420 | 308 | ||
Shareholders' Equity | 299,660 | 279,981 | ||
Total Liabilities and Shareholders' Equity | $ 310,390 | $ 290,599 |
Parent Company Financial Info83
Parent Company Financial Information, Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Statements of Income [Abstract] | |||||||||||
Interest Income | $ 28,076 | $ 27,850 | $ 26,531 | $ 25,866 | $ 24,449 | $ 24,152 | $ 23,363 | $ 23,106 | $ 108,323 | $ 95,070 | $ 86,750 |
Tax Benefit | (11,974) | (5,000) | (4,708) | (4,429) | (3,389) | (4,503) | (4,169) | (4,036) | (26,111) | (16,097) | (16,924) |
Net Income | $ 3,781 | $ 8,581 | $ 8,187 | $ 7,821 | $ 7,681 | $ 7,538 | $ 7,332 | $ 7,172 | 28,370 | 29,723 | 27,392 |
Parent Company [Member] | |||||||||||
Condensed Statements of Income [Abstract] | |||||||||||
Equity in Undistributed Earnings in Farmers & Merchants Bank of Central California | 5,575 | 17,043 | 17,352 | ||||||||
Dividends from Subsidiary | 23,575 | 14,275 | 10,875 | ||||||||
Interest Income | 13 | 11 | 10 | ||||||||
Other Expenses, Net | (1,552) | (2,485) | (1,451) | ||||||||
Tax Benefit | 759 | 879 | 606 | ||||||||
Net Income | $ 28,370 | $ 29,723 | $ 27,392 |
Parent Company Financial Info84
Parent Company Financial Information, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net Income | $ 3,781 | $ 8,581 | $ 8,187 | $ 7,821 | $ 7,681 | $ 7,538 | $ 7,332 | $ 7,172 | $ 28,370 | $ 29,723 | $ 27,392 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities [Abstract] | |||||||||||
Net Cash Provided by Operating Activities | 39,944 | 34,812 | 37,327 | ||||||||
Investing Activities [Abstract] | |||||||||||
Net Cash Used in Investing Activities | (82,190) | (185,444) | (258,308) | ||||||||
Financing Activities [Abstract] | |||||||||||
Cash Dividends | (10,982) | (10,478) | (10,157) | ||||||||
Net Cash Provided by (Used in) Financing Activities | 130,535 | 190,046 | 203,302 | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | 88,289 | 39,414 | (17,679) | ||||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net Income | 28,370 | 29,723 | 27,392 | ||||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities [Abstract] | |||||||||||
Equity in Undistributed Net Earnings from Subsidiary | (5,575) | (17,043) | (17,352) | ||||||||
Net (Increase) Decrease in Other Assets | (11,822) | (124) | (79) | ||||||||
Net Increase (Decrease) in Liabilities | 112 | 49 | 141 | ||||||||
Net Cash Provided by Operating Activities | 11,085 | 12,605 | 10,102 | ||||||||
Investing Activities [Abstract] | |||||||||||
Securities Sold or Matured | 1 | 0 | 0 | ||||||||
Payments for Business Acquisition | 0 | (2,207) | 0 | ||||||||
Payments for Investments in Subsidiaries | (2,953) | (2,586) | (3,360) | ||||||||
Net Cash Used in Investing Activities | (2,952) | (4,793) | (3,360) | ||||||||
Financing Activities [Abstract] | |||||||||||
Issuance of Common Stock | 2,953 | 2,586 | 3,360 | ||||||||
Cash Dividends | (10,982) | (10,478) | (10,157) | ||||||||
Net Cash Provided by (Used in) Financing Activities | (8,029) | (7,892) | (6,797) | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | 104 | (80) | (55) | ||||||||
Cash and Cash Equivalents at Beginning of Year | $ 228 | $ 308 | 228 | 308 | 363 | ||||||
Cash and Cash Equivalents at End of Year | $ 332 | $ 228 | $ 332 | $ 228 | $ 308 |
Quarterly Unaudited Financial85
Quarterly Unaudited Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Unaudited Financial Data [Abstract] | |||||||||||
Total Interest Income | $ 29,692 | $ 29,609 | $ 28,069 | $ 27,242 | $ 25,664 | $ 25,262 | $ 24,314 | $ 24,026 | $ 114,612 | $ 99,266 | $ 90,075 |
Total Interest Expense | 1,616 | 1,759 | 1,538 | 1,376 | 1,215 | 1,110 | 951 | 920 | 6,289 | 4,196 | 3,325 |
Net Interest Income | 28,076 | 27,850 | 26,531 | 25,866 | 24,449 | 24,152 | 23,363 | 23,106 | 108,323 | 95,070 | 86,750 |
Provision for Credit Losses | 0 | 1,600 | 650 | 600 | 3,485 | 250 | 0 | 2,600 | 2,850 | 6,335 | 750 |
Net Interest Income After Provision for Credit Losses | 28,076 | 26,250 | 25,881 | 25,266 | 20,964 | 23,902 | 23,363 | 20,506 | 105,473 | 88,735 | 86,000 |
Total Non-Interest Income | 4,179 | 3,638 | 3,539 | 5,406 | 5,108 | 4,553 | 2,875 | 2,721 | 16,762 | 15,257 | 14,575 |
Total Non-Interest Expense | 16,500 | 16,307 | 16,525 | 18,422 | 15,002 | 16,414 | 14,737 | 12,019 | 67,754 | 58,172 | 56,259 |
Income Before Income Taxes | 15,755 | 13,581 | 12,895 | 12,250 | 11,070 | 12,041 | 11,501 | 11,208 | 54,481 | 45,820 | 44,316 |
Provision for Income Taxes | 11,974 | 5,000 | 4,708 | 4,429 | 3,389 | 4,503 | 4,169 | 4,036 | 26,111 | 16,097 | 16,924 |
Net Income | $ 3,781 | $ 8,581 | $ 8,187 | $ 7,821 | $ 7,681 | $ 7,538 | $ 7,332 | $ 7,172 | $ 28,370 | $ 29,723 | $ 27,392 |
Basic Earnings Per Common Share (in dollars per share) | $ 4.64 | $ 10.59 | $ 10.12 | $ 9.68 | $ 9.62 | $ 9.51 | $ 9.25 | $ 9.06 | $ 35.03 | $ 37.44 | $ 34.82 |
Subsequent Events (Details)
Subsequent Events (Details) - Bank of Rio Vista [Member] - Subsequent Event [Member] | Feb. 27, 2018USD ($)shares |
Subsequent Event [Line Items] | |
Number of additional shares acquired (in shares) | 8 |
Value of additional shares acquired | $ | $ 95,200 |
Total ownership of shares (in shares) | 1,586 |
Percentage of ownership of common shares outstanding | 39.65% |