Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 000-26099 | |
Entity Registrant Name | FARMERS & MERCHANTS BANCORP | |
Entity Central Index Key | 0001085913 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3327828 | |
Entity Address, Address Line One | 111 W. Pine Street | |
Entity Address, City or Town | Lodi | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95240 | |
City Area Code | 209 | |
Local Phone Number | 367-2300 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FMCB | |
Security Exchange Name | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 789,646 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Cash and Cash Equivalents: | |||
Cash and Due from Banks | $ 66,503 | $ 66,327 | $ 58,810 |
Interest Bearing Deposits with Banks | 804,260 | 317,510 | 299,558 |
Total Cash and Cash Equivalents | 870,763 | 383,837 | 358,368 |
Investment Securities: | |||
Available-for-Sale | 333,151 | 807,732 | 568,536 |
Held-to-Maturity, fair value $540,308, $70,049 and $71,055, respectively | 550,618 | 68,933 | 69,913 |
Total Investment Securities | 883,769 | 876,665 | 638,449 |
Loans & Leases | 3,139,801 | 3,099,592 | 3,111,931 |
Less: Allowance for Credit Losses | 60,303 | 58,862 | 56,798 |
Loans & Leases, Net | 3,079,498 | 3,040,730 | 3,055,133 |
Premises and Equipment, Net | 48,580 | 50,147 | 49,214 |
Bank Owned Life Insurance, Net | 70,852 | 69,235 | 68,705 |
Interest Receivable and Other Assets | 149,296 | 129,839 | 131,745 |
Total Assets | 5,102,758 | 4,550,453 | 4,301,614 |
Deposits: | |||
Demand | 1,694,431 | 1,475,425 | 1,340,797 |
Interest Bearing Transaction | 1,077,569 | 902,487 | 812,166 |
Savings and Money Market | 1,402,560 | 1,260,487 | 1,201,566 |
Time | 393,834 | 421,868 | 460,248 |
Total Deposits | 4,568,394 | 4,060,267 | 3,814,777 |
Subordinated Debentures | 10,310 | 10,310 | 10,310 |
Interest Payable and Other Liabilities | 69,863 | 56,211 | 59,626 |
Total Liabilities | 4,648,567 | 4,126,788 | 3,884,713 |
Shareholders' Equity | |||
Preferred Stock: No Par Value, 1,000,000 Shares Authorized, None Issued or Outstanding | 0 | 0 | 0 |
Common Stock: Par Value $0.01, 7,500,000 Shares Authorized, 789,646, 789,646, and 793,556 Shares Issued and Outstanding at September 30, 2021, December 31, 2020 and September 30, 2020, Respectively | 8 | 8 | 8 |
Additional Paid-In Capital | 77,516 | 77,516 | 80,350 |
Retained Earnings | 377,523 | 333,070 | 323,524 |
Accumulated Other Comprehensive (Loss) Income, Net of Taxes | (856) | 13,071 | 13,019 |
Total Shareholders' Equity | 454,191 | 423,665 | 416,901 |
Total Liabilities and Shareholders' Equity | $ 5,102,758 | $ 4,550,453 | $ 4,301,614 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Investment Securities: | |||
Held-to-Maturity at fair value | $ 540,308 | $ 70,049 | $ 71,055 |
Shareholders' Equity | |||
Preferred Stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 7,500,000 | 7,500,000 | 7,500,000 |
Common Stock, shares issued (in shares) | 789,646 | 789,646 | 793,556 |
Common Stock, shares outstanding (in shares) | 789,646 | 789,646 | 793,556 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest Income | ||||
Interest and Fees on Loans & Leases | $ 36,088 | $ 36,409 | $ 109,839 | $ 104,880 |
Interest on Deposits with Banks | 328 | 81 | 595 | 1,093 |
Interest on Investment Securities: | ||||
Taxable | 3,283 | 2,889 | 10,781 | 9,216 |
Exempt from Federal Tax | 399 | 414 | 1,238 | 1,260 |
Total Interest Income | 40,098 | 39,793 | 122,453 | 116,449 |
Interest Expense | ||||
Deposits | 929 | 2,011 | 3,200 | 7,613 |
Subordinated Debentures | 78 | 83 | 236 | 296 |
Total Interest Expense | 1,007 | 2,094 | 3,436 | 7,909 |
Net Interest Income | 39,091 | 37,699 | 119,017 | 108,540 |
Provision for Credit Losses | 0 | 1,700 | 1,250 | 2,000 |
Net Interest Income After Provision for Loan Losses | 39,091 | 35,999 | 117,767 | 106,540 |
Non-Interest Income | ||||
Service Charges on Deposit Accounts | 808 | 654 | 2,125 | 1,948 |
Net Gain on Sale of Investment Securities | 0 | 0 | 2,554 | 13 |
Increase in Cash Surrender Value of Bank Owned Life Insurance | 549 | 528 | 1,616 | 1,557 |
Debit Card and ATM Fees | 1,788 | 1,465 | 5,173 | 4,044 |
Net Gain on Deferred Compensation Investments | 615 | 1,022 | 1,828 | 883 |
Other | 1,100 | 870 | 3,641 | 2,535 |
Total Non-Interest Income | 4,860 | 4,539 | 16,937 | 10,980 |
Non-Interest Expense | ||||
Salaries and Employee Benefits | 14,453 | 13,606 | 47,375 | 42,269 |
Net Gain on Deferred Compensation Investments | 615 | 1,022 | 1,828 | 883 |
Occupancy | 1,145 | 1,186 | 3,554 | 3,429 |
Equipment | 1,251 | 1,272 | 3,688 | 3,726 |
Marketing | 63 | 245 | 669 | 515 |
Legal | 85 | 23 | 485 | 100 |
FDIC Insurance | 317 | 249 | 902 | 256 |
Other | 2,656 | 3,180 | 9,231 | 9,182 |
Total Non-Interest Expense | 20,585 | 20,783 | 67,732 | 60,360 |
Income Before Provision for Income Taxes | 23,366 | 19,755 | 66,972 | 57,160 |
Provision for Income Taxes | 5,864 | 4,945 | 16,604 | 13,919 |
Net Income | $ 17,502 | $ 14,810 | $ 50,368 | $ 43,241 |
Basic Earnings Per Common Share (in dollars per share) | $ 22.16 | $ 18.66 | $ 63.79 | $ 54.49 |
Diluted Earnings Per Common Share (in dollars per share) | $ 22.16 | $ 18.66 | $ 63.79 | $ 54.49 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net Income | $ 17,502 | $ 14,810 | $ 50,368 | $ 43,241 |
Other Comprehensive Income | ||||
Increase in Net Unrealized (Loss) Gain on Available-for-Sale Securities | (2,237) | (2,325) | (16,846) | 13,803 |
Deferred Tax Provision Benefit (Expense) Related to Unrealized (Loss) Gains | 662 | 688 | 4,981 | (4,080) |
Reclassification Adjustment for Realized Gains on Available-for-Sale Securities Included in Net Income | 0 | 0 | (2,554) | (13) |
Deferred Tax Related to Reclassification Adjustment | 0 | 0 | 755 | 4 |
Amortization of Unrealized Loss on Securities Transferred to Held to Maturity | (135) | 0 | (373) | 0 |
Deferred Tax Benefit Related to Loss on Securities Transferred | 40 | 0 | 110 | 0 |
Total Other Comprehensive (Loss) Income | (1,670) | (1,637) | (13,927) | 9,714 |
Comprehensive Income | $ 15,832 | $ 13,173 | $ 36,441 | $ 52,955 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income, net [Member] | Total |
Balance at Dec. 31, 2019 | $ 8 | $ 79,947 | $ 286,036 | $ 3,305 | $ 369,296 |
Balance (in shares) at Dec. 31, 2019 | 793,033 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 0 | 43,241 | 0 | 43,241 | |
Cash Dividends Declared on Common Stock | $ 0 | 0 | (5,753) | 0 | (5,753) |
Issuance of Common Stock | $ 0 | 403 | 0 | 0 | 403 |
Issuance of Common Stock (in shares) | 523 | ||||
Other Comprehensive Income (Loss) | $ 0 | 0 | 0 | 9,714 | 9,714 |
Balance at Sep. 30, 2020 | $ 8 | 80,350 | 323,524 | 13,019 | $ 416,901 |
Balance (in shares) at Sep. 30, 2020 | 793,556 | 793,556 | |||
Balance at Jun. 30, 2020 | $ 8 | 80,350 | 308,714 | 14,656 | $ 403,728 |
Balance (in shares) at Jun. 30, 2020 | 793,556 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 0 | 14,810 | 0 | 14,810 | |
Other Comprehensive Income (Loss) | $ 0 | 0 | 0 | (1,637) | (1,637) |
Balance at Sep. 30, 2020 | $ 8 | 80,350 | 323,524 | 13,019 | $ 416,901 |
Balance (in shares) at Sep. 30, 2020 | 793,556 | 793,556 | |||
Balance at Dec. 31, 2020 | $ 8 | 77,516 | 333,070 | 13,071 | $ 423,665 |
Balance (in shares) at Dec. 31, 2020 | 789,646 | 789,646 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 0 | 50,368 | 0 | $ 50,368 | |
Cash Dividends Declared on Common Stock | $ 0 | 0 | (5,922) | 0 | (5,922) |
Cash Dividends Returned | 0 | 0 | 7 | 0 | 7 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | (13,927) | (13,927) |
Balance at Sep. 30, 2021 | $ 8 | 77,516 | 377,523 | (856) | $ 454,191 |
Balance (in shares) at Sep. 30, 2021 | 789,646 | 789,646 | |||
Balance at Jun. 30, 2021 | $ 8 | 77,516 | 360,021 | 814 | $ 438,359 |
Balance (in shares) at Jun. 30, 2021 | 789,646 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 0 | 17,502 | 0 | 17,502 | |
Other Comprehensive Income (Loss) | $ 0 | 0 | 0 | (1,670) | (1,670) |
Balance at Sep. 30, 2021 | $ 8 | $ 77,516 | $ 377,523 | $ (856) | $ 454,191 |
Balance (in shares) at Sep. 30, 2021 | 789,646 | 789,646 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash Dividends Declared per Share of Common Stock (in dollars per share) | $ 7.50 | $ 7.25 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities: | ||
Net Income | $ 50,368 | $ 43,241 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Credit Losses | 1,250 | 2,000 |
Depreciation and Amortization | 1,971 | 2,117 |
Net Amortization of Investment Security Premiums & Discounts | 1,133 | 741 |
Amortization of Core Deposit Intangible | 458 | 470 |
Accretion of Discount on Acquired Loans | (62) | (134) |
Net (Gain) on Sale of Investment Securities | (2,554) | (13) |
Net (Gain) on Sale of Property & Equipment | (31) | (38) |
Net Change in Operating Assets & Liabilities: | ||
Net (Increase) in Interest Receivable and Other Assets | (11,211) | (6,269) |
Net Increase (Decrease) in Interest Payable and Other Liabilities | 10,738 | (1,773) |
Net Cash Provided by Operating Activities | 52,060 | 40,342 |
Investing Activities: | ||
Purchase of Investment Securities Available-for-Sale | (257,228) | (273,408) |
Proceeds from Sold, Matured or Called Securities Available-for-Sale | 397,454 | 225,332 |
Purchase of Investment Securities Held-to-Maturity | (194,332) | (19,056) |
Proceeds from Matured or Called Securities Held-to-Maturity | 29,042 | 9,341 |
Net Loans & Leases Paid, Originated or Acquired | (39,956) | (438,984) |
Additions to Premises and Equipment, Net | (1,001) | (6,108) |
Purchase of Other Investments | (4,516) | (4,935) |
Redemption of Other Investment | 2,556 | 0 |
Proceeds from Sale of Property & Equipment | 635 | 81 |
Net Cash Used in Investing Activities | (67,346) | (507,737) |
Financing Activities: | ||
Net Increase in Deposits | 508,127 | 536,758 |
Cash Dividends | (5,922) | (5,753) |
Cash Dividends Return | 7 | 0 |
Net Cash Provided by Financing Activities | 502,212 | 531,005 |
Net Change in Cash and Cash Equivalents | 486,926 | 63,610 |
Cash and Cash Equivalents at Beginning of Period | 383,837 | 294,758 |
Cash and Cash Equivalents at End of Period | 870,763 | 358,368 |
Supplementary Data | ||
Cash Payments Made for Income Taxes | 22,530 | 7,443 |
Issuance of Common Stock to the Bank's Non-Qualified Retirement Plans | 0 | 403 |
Interest Paid | 4,369 | 9,085 |
Supplementary Noncash Disclosure | ||
Investment Securities Available-for-Sale Transferred to Held-to-Maturity | 316,925 | 0 |
Lease Liabilities Arising from Obtaining Right-of-Use Assets | $ 302 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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 wholly owned 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. 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 unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K, as amended (“2020 Annual Report on Form 10-K”), for the year ended December 31, 2020 and, accordingly, should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 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. Accounting Guidance Pending Adoption at September The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In June the FASB issued ASU - 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. During the Company completed an assessment of its current expected credit losses (CECL) data and system needs, and engaged a -party vendor to assist in developing a CECL model. The Company, in conjunction with this vendor, researched and analyzed modeling standards, loan segmentation, as well as potential external inputs to supplement our historical loss history. Model validation began in the quarter of enabling the Company to complete parallel runs using data beginning with the quarter of The new guidance had been effective on January However, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and H.R. resulted in federal banking regulators issuing an interim final rule allowing banks the option of delaying the implementation of CECL until January In addition, the national banking regulators have issued a joint statement allowing financial institutions to mitigate the effects of CECL in their regulatory capital calculations for up to years. The Company has elected to delay CECL adoption, but continues to run its CECL model quarterly to accumulate data for the ultimate implementation. Management is currently evaluating the impact that the standard will have on its consolidated financial statements. 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, and Federal Funds Sold, which have original maturity dates of months or less. 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 to earliest call date 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. Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted using the effective interest method over the life of the security as an adjustment of yield. Unrealized holding gains or losses that remain in accumulated other comprehensive income are amortized or accreted over the remaining life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. 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. Equity securities are carried at fair value with changes in market value 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 more than insignificant 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 non-accrual status at the time they become TDR, remain on non-accrual status until the borrower demonstrates a sustained period of performance, which the Company generally believes to be six 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. On March the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law by Congress and was amended and extended by the Consolidated Appropriations Act of (“H.R. ”) on December The CARES Act and H.R. provide financial institutions, under specific circumstances, the opportunity to temporarily suspend certain requirements under generally accepted accounting principles related to modifications for a limited period of time to account for the effects of COVID- In March a joint statement was issued by federal and state regulatory agencies, after consultation with the FASB, to clarify that short-term loan modifications are not TDRs if made on a good-faith basis in response to COVID- to borrowers who were current prior to any relief. Under this guidance, months is provided as an example of short-term, and current is defined as less than days past due at the time the modification program is implemented. The guidance also provides that these modified loans generally will not be classified as non-accrual during the term of the modification. See “Note – Risks and Uncertainties” for additional information on the CARES Act and H.R. and the impact of COVID- on the Company. Allowance for Credit Losses The allowance for credit losses is an estimate of probable incurred credit losses inherent in the Company’s 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 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 Company’s 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 and Watch – A pass loan or lease is a strong credit with no existing or known potential weaknesses deserving of management’s Special Mention – A special mention loan or lease has potential weaknesses that deserve management’s Company’s 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 project’s Doubtful – Loans or leases classified doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, highly questionable or improbable. 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 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 lower inherent risk of loss. 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 borrowers’ 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’ 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 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. Right of Use Lease Asset & Lease Liability The Company leases retail space and office space under operating leases. Most leases require the Company to pay real estate taxes, maintenance, insurance and other similar costs in addition to the base rent. Certain leases also contain lease incentives, such as tenant improvement allowances and rent abatement. Variable lease payments are recognized as lease expense as they are incurred. We record an operating lease right of use (ROU) asset and an operating lease liability (lease liability) for operating leases with a lease term greater than months. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated statement of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Accordingly, ROU assets are reduced by tenant improvement allowances from landlords plus any prepaid rent. We do not separate lease and non-lease components of contracts. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Many of our leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule, which are factored into our determination of lease payments when appropriate. A majority of the leases provide the Company with the option to extend the lease term or more times following expiration of the initial term. The ROU asset and lease liability terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic “Revenue from Contracts with Customers” (“Topic ”). Under Topic the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is limited judgment involved in applying Topic that significantly affects the determination of the amount and timing of revenue from contracts with customers. 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 three five 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. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law by Congress and was amended and extended by the Consolidated Appropriations Act of 2021 (“H.R. 133”) on December 21, 2020. The CARES Act and H.R. 133 restrict the ability of financial institutions to exercise their foreclosure rights on residential and multi-family properties backed by federally guaranteed mortgage loans. The State of California went further and temporarily suspended all residential and commercial foreclosures through September 30, 2021, but these guidelines have now expired. The Company continues to work with its borrowers when they make requests to defer payments on their mortgage loans. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act and H.R. 133 and the impact of COVID-19 on the Company. 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”) 740, 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. The Company accounts for its interest in Low Income Housing Tax Credits (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. 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 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. For the three and nine-month periods ended September and the Company had no material uncertain tax positions and recognized interest or penalties. The Company’s policy is to recognize interest and penalties related to income taxes in the provision for income taxes in the Consolidated Statements of Income. Basic and Diluted Earnings Per Common Share The Company’s common stock is not traded on any exchange. However, trades are reported on the OTCQX under the symbol “FMCB”. 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 common stock equivalent shares. – “Dividends and Basic and Diluted Earnings Per Com |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 2. Risks and Uncertainties T he COVID-19 pandemic has affected all of us. Designated as an “essential business”, the Company’s subsidiary, Farmers & Merchants Bank of Central California, has kept all branches open and maintained regular business hours during these difficult times. Our staffing levels have remained stable during the COVID-19 crisis. We have taken what we believe are prudent measures to protect our employees and customers, while still providing core banking services. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law and was amended and extended by the Consolidated Appropriations Act of 2021 (“H.R. 133”) on December 21, 2020. Through this legislation, as well as related federal and state regulatory actions, the federal government has taken extraordinary efforts to provide financial assistance to individuals and companies to help them move through these difficult times. However, there are no guarantees how long the COVID-19 virus may continue to impact our economy, and therefore, the Company. While tremendous strides have been made in fighting the virus, particularly with the development of a vaccine, the lingering effects of COVID-19 could have an adverse future impact on our business, financial condition and results of operations, however, we are unable to predict the extent or nature of these impacts at the current time. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investment Securities [Abstract] | |
Investment Securities | 3. Investment Securities The amortized cost, fair values, and unrealized gains and losses of the debt securities available-for-sale are as follows (in thousands) Amortized Cost Gross Unrealized Fair Value September 30 2021 Gains Losses U.S. Treasury Notes $ 9,922 $ 228 $ - $ 10,150 U.S. Government Agency SBA 6,892 70 43 6,919 Mortgage-Backed Securities (1)(2) 270,667 4,243 5,341 269,569 Other 46,513 - - 46,513 Total $ 333,994 $ 4,541 $ 5,384 $ 333,151 Amortized Cost Gross Unrealized Fair Value December 31 2020 Gains Losses U.S. Treasury Notes $ 14,859 $ 429 $ - $ 15,288 U.S. Government Agency SBA 8,252 1 93 8,160 Mortgage-Backed Securities (1) 720,562 17,359 48 737,873 Corporate Securities 45,010 927 18 45,919 Other 492 - - 492 Total $ 789,175 $ 18,716 $ 159 $ 807,732 Amortized Cost Gross Unrealized Fair Value September 30 2020 Gains Losses U.S. Treasury Notes $ 94,830 $ 512 $ - $ 95,342 U.S. Government Agency SBA 8,530 1 102 8,429 Mortgage-Backed Securities (1) 421,263 18,050 39 439,274 Corporate Securities 25,002 159 98 25,063 Other 428 - - 428 Total $ 550,053 $ 18,722 $ 239 $ 568,536 (1) All Mortgage-Backed securities consist of securities collateralized by residential real estate and were issued by an agency or government-sponsored entity of the U.S. government. (2) During Q the Company transferred of AFS securities to HTM. The amortized cost, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity are as follows (in thousand s): Amortized Cost Gross Unrealized Fair Value September 30 2021 Gains Losses Obligations of States and Political Subdivisions $ 62,936 $ 768 $ - $ 63,704 Mortgage Backed Securities (1)(2) 487,682 48 11,126 476,604 Total $ 550,618 $ 816 $ 11,126 $ 540,308 Amortized Cost Gross Unrealized Fair Value December 31 2020 Gains Losses Obligations of States and Political Subdivisions $ 68,933 $ 1,116 $ - $ 70,049 Total $ 68,933 $ 1,116 $ - $ 70,049 Amortized Value Gross Unrealized Fair Value September 30 2020 Gains Losses Obligations of States and Political Subdivisions $ 69,913 $ 1,142 $ - $ 71,055 Total $ 69,913 $ 1,142 $ - $ 71,055 (1) All Mortgage-Backed securities were issued by an agency or government-sponsored entity of the U.S. government. (2) During Q the Company transferred of AFS securities to HTM. As part of our ongoing review of our investment securities portfolio, we reassessed the classification of certain MBS securities. During the quarter of we transferred of these securities, which we intend and have the ability to hold to maturity, from available-for-sale securities to held-to-maturity at fair value. The unrealized pre-tax loss of at the date of transfer remained in accumulated other comprehensive income and is amortized to yield over the remaining lives of the securities. Fair values are based on quoted market prices or dealer quotes. If a quoted market price or dealer quote is not available, fair value is estimated using quoted market prices for similar securities. The amortized cost and estimated fair values of investment securities at September 30, 2021 by contractual maturity are shown in the following table (in thousand s): Available-for-Sale Held-to-Maturity September 30 2021 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 51,503 $ 51,569 $ 308 $ 308 After one year through five years 5,100 5,262 6,969 7,012 After five years through ten years 563 566 19,543 20,254 After ten years 6,161 6,185 36,116 36,130 63,327 63,582 62,936 63,704 Investment securities not due at a single maturity date: Mortgage-Backed securities 270,667 269,569 487,682 476,604 Total $ 333,994 $ 333,151 $ 550,618 $ 540,308 Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may 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 thousand s) : Less Than 12 Months 12 Months or More Total September 30 2021 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale U.S. Government Agency SBA $ 188 $ 1 $ 2,141 $ 42 $ 2,329 $ 43 Mortgage-Backed Securities 171,869 5,339 116 2 171,985 5,341 Total $ 172,057 $ 5,340 $ 2,257 $ 44 $ 174,314 $ 5,384 Securities Held-to-Maturity Mortgage Backed Securities 468,360 11,126 - - $ 468,360 $ 11,126 Total $ 468,360 $ 11,126 $ - $ - $ 468,360 $ 11,126 Less Than 12 Months 12 Months or More Total December 31 2020 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale U.S. Government Agency SBA $ 1,741 $ 3 $ 6,126 $ 90 $ 7,867 $ 93 Mortgage-Backed Securities 20,142 45 177 3 20,319 48 Corporate Securities 4,041 18 - - 4,041 18 Total $ 25,924 $ 66 $ 6,303 $ 93 $ 32,227 $ 159 There were no HTM investments with gross unrealized losses at December 31, 2020. Less Than 12 Months 12 Months or More Total September 30 2020 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale U.S. Government Agency SBA $ 2,312 $ 4 $ 5,810 $ 98 $ 8,122 $ 102 Mortgage-Backed Securities 20,741 35 194 4 20,935 39 Corporate Securities 10,363 98 - - 10,363 98 Total $ 33,416 $ 137 $ 6,004 $ 102 $ 39,420 $ 239 There were no HTM investments with gross unrealized losses at September 30, 2020. As of September 30, 2021, the Company held 590 investment securities of which 68 were in an unrealized loss position for less than twelve months and 60 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. U.S. Treasury Notes – At September 30, 2021 U.S. Treasury Note security investments were in an unrealized loss position. U.S. Government Agency SBA – At September 30, 2021 U.S. Government SBA security investments were in an unrealized loss position for less than 12 months and were in a loss position for 12 months or more. The unrealized losses on the Company's investment in U.S. Government Agency SBA securities were and at September December and September respectively. 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 September December and September Mortgage-Backed Securities – At September mortgage-backed security investments were in an unrealized loss position for less than months and were in an unrealized loss position for months or more. The unrealized losses on the Company's investment in mortgage-backed securities were , and at September December and September respectively. 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 September December and September Corporate Securities - At September we had corporate securities in our portfolio, having sold all positions during the quarter of The unrealized loss on the Company’s investment in the corporate securities were and at September December and September respectively. Changes in the prices of corporate securities are primarily influenced by: changes in market interest rates; changes in perceived credit risk in the general economy or in particular industries; changes in the perceived credit risk of a particular company; and day to day trading supply, demand and liquidity. The Company monitors the status of each of our corporate securities 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. Because the Company did not intend to sell the securities and it was 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 and September Other Securities – At September 30, 2021, none of the other securities were in an unrealized loss position. Other securities consisted of Money Market accounts held at investment brokerages. Obligations of States and Political Subdivisions – At September obligation of states and political subdivisions was in an unrealized loss position. As of September the Company’s bank-qualified municipal bond portfolio was rated at either the issue or issuer level, and all of these ratings are “investment grade.” The Company monitors the status of all municipal investments in the portfolio 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. Proceeds from sales and calls of securities for the periods shown were as follows: Three Months Ended Nine Months Ended (in s) 2021 2020 2021 2020 Proceeds $ 1,450 $ 50,620 $ 301,320 $ 53,620 Gains - - 5,570 13 Losses - - 3,016 - Pledged Securities As of September 30, 2021, securities carried at $445.2 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 $439.7 million at December 31, 2020, and $333.2 million at September 30, 2020. |
Federal Home Loan Bank Stock an
Federal Home Loan Bank Stock and Other Equity Securities, at Cost | 9 Months Ended |
Sep. 30, 2021 | |
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 $ million at September 30, 2021, and at December and September |
Loans & Leases
Loans & Leases | 9 Months Ended |
Sep. 30, 2021 | |
Loans & Leases [Abstract] | |
Loans & Leases | 5. Loans & Leases Loans & Leases consisted of the following: (in thousands) September 30, 2021 December 31, 2020 September 30, 2020 Commercial Real Estate $ 1,126,230 $ 971,326 $ 887,999 Agricultural Real Estate 656,337 643,014 639,172 Real Estate Construction 178,451 185,741 186,623 Residential 1st Mortgages 309,728 299,379 293,489 Home Equity Lines & Loans 31,664 34,239 35,875 Agricultural 235,085 264,372 252,031 Commercial 394,326 374,816 367,052 Consumer & Other (1) 129,665 235,529 359,697 Leases 90,022 103,117 105,511 Total Gross Loans & Leases 3,151,508 3,111,533 3,127,449 Less: Unearned Income 11,707 11,941 15,518 Subtotal 3,139,801 3,099,592 3,111,931 Less: Allowance for Credit Losses 60,303 58,862 56,798 Net Loans & Leases $ 3,079,498 $ 3,040,730 $ 3,055,133 (1) Includes CARES Act Small Business Administration Paycheck Protection Program loans of $ , $ and $ as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively. Paycheck Protection Program (“PPP”) ... Under the CARES Act and H.R. 133 (see “Note 2 – Risks and Uncertainties”) the Small Business Administration (“SBA”) was directed by Congress to provide loans to small businesses with less than 500 employees to assist these businesses in meeting their payroll and other financial obligations during the COVID-19 pandemic. These government guaranteed loans are made with an interest rate of 1%, a risk weight of 0% under risk-based capital rules, have a term of two to five years, and under certain conditions the SBA will forgive them. The Bank actively participated in the PPP, and since April, 2020 the Bank has funded $ million of loans for over small business customers. At September 30, 2021, 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 $1 billion and $742.4 million, respectively. The borrowing capacity on these loans were $749.5 million from FHLB and $467.8 million from the FRB. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 6. Allowance for Credit Losses The Company was originally scheduled to implement ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“CECL”) as of January 1, 2020. The CARES Act and H.R. 133 provide the election to defer CECL implementation until January 1, 2022. The Company has elected to delay CECL implementation. The following tables show the allocation of the allowance for credit losses by portfolio segment and by impairment methodology at the dates indicated (in thousands) September 30 2021 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- December 31, 2020 $ 27,679 $ 8,633 $ 1,643 $ 960 $ 2,024 $ 4,814 $ 9,961 $ 333 $ 1,731 $ 1,084 $ 58,862 Charge-Offs - - - - - - - (33 ) - - (33 ) Recoveries - - - 74 17 29 83 21 - - 224 Provision 1,200 794 (210 ) (70 ) (129 ) (238 ) 738 (23 ) (872 ) 60 1,250 Ending Balance- September 30 2021 $ 28,879 $ 9,427 $ 1,433 $ 964 $ 1,912 $ 4,605 $ 10,782 $ 298 $ 859 $ 1,144 $ 60,303 Third Quarter Allowance for Credit Losses: Beginning Balance- June 30, 2021 $ 28,890 $ 9,107 $ 1,405 $ 957 $ 1,899 $ 4,552 $ 9,920 $ 281 $ 1,639 $ 1,579 $ 60,229 Charge-Offs - - - - - - - (17 ) - - (17 ) Recoveries - - - 15 6 24 38 8 - - 91 Provision (11 ) 320 28 (8 ) 7 29 824 26 (780 ) (435 ) - Ending Balance- September 30 2021 $ 28,879 $ 9,427 $ 1,433 $ 964 $ 1,912 $ 4,605 $ 10,782 $ 298 $ 859 $ 1,144 $ 60,303 Ending Balance Individually Evaluated for Impairment - - - 88 6 - 6 40 - - 140 Ending Balance Collectively Evaluated for Impairment 28,879 9,427 1,433 876 1,906 4,605 10,776 258 859 1,144 60,163 Loans & Leases: Ending Balance $ 1,114,149 $ 656,337 $ 178,451 $ 309,728 $ 31,664 $ 235,085 $ 394,326 $ 129,665 $ 90,396 $ - $ 3,139,801 Ending Balance Individually Evaluated for Impairment 74 - - 1,764 112 6,129 218 178 - - 8,475 Ending Balance Collectively Evaluated for Impairment $ 1,114,075 $ 656,337 $ 178,451 $ 307,964 $ 31,552 $ 228,956 $ 394,108 $ 129,487 $ 90,396 $ - $ 3,131,326 December 31, 2020 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- December 31, 2019 $ 11,053 $ 15,128 $ 1,949 $ 855 $ 2,675 $ 8,076 $ 11,466 $ 456 $ 3,162 $ 192 $ 55,012 Charge-Offs - - - - (7 ) - (1,101 ) (66 ) - - (1,174 ) Recoveries - - - 52 78 81 280 33 - - 524 Provision 16,626 (6,495 ) (306 ) 53 (722 ) (3,343 ) (684 ) (90 ) (1,431 ) 892 4,500 Ending Balance- December 31, 2020 $ 27,679 $ 8,633 $ 1,643 $ 960 $ 2,024 $ 4,814 $ 9,961 $ 333 $ 1,731 $ 1,084 $ 58,862 Ending Balance Individually Evaluated for Impairment - - - 117 8 92 20 52 - - 289 Ending Balance Collectively Evaluated for Impairment 27,679 8,633 1,643 843 2,016 4,722 9,941 281 1,731 1,084 58,573 Loans & Leases: Ending Balance $ 958,980 $ 643,014 $ 185,741 $ 299,379 $ 34,239 $ 264,372 $ 374,816 $ 235,529 $ 103,522 $ - $ 3,099,592 Ending Balance Individually Evaluated for Impairment 104 5,629 - 2,365 158 495 233 254 - - 9,238 Ending Balance Collectively Evaluated for Impairment $ 958,876 $ 637,385 $ 185,741 $ 297,014 $ 34,081 $ 263,877 $ 374,583 $ 235,275 $ 103,522 $ - $ 3,090,354 September 30 2020 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- December 31, 2019 $ 11,053 $ 15,128 $ 1,949 $ 855 $ 2,675 $ 8,076 $ 11,466 $ 456 $ 3,162 $ 192 $ 55,012 Charge-Offs - - - - (7 ) - (426 ) (54 ) - - (487 ) Recoveries - - - 49 65 54 80 25 - - 273 Provision 13,236 (6,336 ) (381 ) 45 (617 ) (3,458 ) (1,127 ) (63 ) (248 ) 949 2,000 Ending Balance- September 30 2020 $ 24,289 $ 8,792 $ 1,568 $ 949 $ 2,116 $ 4,672 $ 9,993 $ 364 $ 2,914 $ 1,141 $ 56,798 Third Quarter Allowance for Credit Losses: Beginning Balance- June 30, 2020 $ 21,423 $ 9,021 $ 1,452 $ 1,771 $ 2,239 $ 4,790 $ 10,043 $ 359 $ 2,800 $ 1,160 $ 55,058 Charge-Offs - - - - - - - (25 ) - - (25 ) Recoveries - - - 3 31 24 - 7 - - 65 Provision 2,866 (229 ) 116 (825 ) (154 ) (142 ) (50 ) 23 114 (19 ) 1,700 Ending Balance- September 30 2020 $ 24,289 $ 8,792 $ 1,568 $ 949 $ 2,116 $ 4,672 $ 9,993 $ 364 $ 2,914 $ 1,141 $ 56,798 Ending Balance Individually Evaluated for Impairment - - - 118 8 92 13 56 - - 287 Ending Balance Collectively Evaluated for Impairment 24,289 8,792 1,568 831 2,108 4,580 9,980 308 2,914 1,141 56,511 Loans & Leases: Ending Balance $ 871,623 $ 639,172 $ 186,623 $ 293,489 $ 35,875 $ 252,031 $ 367,052 $ 359,697 $ 106,369 $ - $ 3,111,931 Ending Balance Individually Evaluated for Impairment 108 5,629 - 2,390 164 498 235 194 - - 9,218 Ending Balance Collectively Evaluated for Impairment $ 871,515 $ 633,543 $ 186,623 $ 291,099 $ 35,711 $ 251,533 $ 366,817 $ 359,503 $ 106,369 $ - $ 3,102,713 The ending balance of loans individually evaluated for impairment includes restructured loans in the amount of $327,200 at September 30, 2021, $876,000 at December 31, 2020, and $828,500 at September 30, 2020, which are no longer disclosed or classified as TDRs since they were restructured at market terms. The following tables show the loan & lease portfolio, including unearned income, allocated by management’s internal risk ratings at the dates indicated (in thousands) September 30 2021 Pass (1) Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 1,098,929 $ 7,371 $ 7,849 $ 1,114,149 Agricultural Real Estate 646,486 3,312 6,539 656,337 Real Estate Construction 178,451 - - 178,451 Residential 1st Mortgages 308,960 - 768 309,728 Home Equity Lines & Loans 31,490 - 174 31,664 Agricultural 233,493 1,018 574 235,085 Commercial 384,660 8,970 696 394,326 Consumer & Other 129,450 - 215 129,665 Leases 90,396 - - 90,396 Total $ 3,102,315 $ 20,671 $ 16,815 $ 3,139,801 (1) Includes "Watch" loans of $ million. December 31, 2020 Pass (1) Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 946,621 $ 7,849 $ 4,510 $ 958,980 Agricultural Real Estate 631,043 400 11,571 643,014 Real Estate Construction 185,741 - - 185,741 Residential 1st Mortgages 298,689 - 690 299,379 Home Equity Lines & Loans 34,058 - 181 34,239 Agricultural 263,781 96 495 264,372 Commercial 373,038 1,060 718 374,816 Consumer & Other 235,063 - 466 235,529 Leases 103,522 - - 103,522 Total $ 3,071,556 $ 9,405 $ 18,631 $ 3,099,592 (1) Includes "Watch" loans of $ million. September 30 2020 Pass (1) Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 861,874 $ 5,239 $ 4,510 $ 871,623 Agricultural Real Estate 624,859 1,525 12,788 639,172 Real Estate Construction 186,623 - - 186,623 Residential 1st Mortgages 292,792 - 697 293,489 Home Equity Lines & Loans 35,691 - 184 35,875 Agricultural 251,108 - 923 252,031 Commercial 364,465 1,316 1,271 367,052 Consumer & Other 359,194 - 503 359,697 Leases 106,369 - - 106,369 Total $ 3,082,975 $ 8,080 $ 20,876 $ 3,111,931 (1) Includes "Watch" loans of $ million. See “Note 1. Significant Accounting Policies - Allowance for Credit Losses” for a description of the internal risk ratings used by the Company. There were no loans or leases outstanding at September 30, 2021, December 31, 2020, and September 30, 2020, rated doubtful or loss. The following tables show an aging analysis of the loan & lease portfolio, including unearned income, past due at the dates indicated (in thousands) September 30 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ 453 $ - $ - $ - $ 453 $ 1,113,696 $ 1,114,149 Agricultural Real Estate - - - 19 19 656,318 656,337 Real Estate Construction - - - - - 178,451 178,451 Residential 1st Mortgages 102 - - - 102 309,626 309,728 Home Equity Lines & Loans - - - - - 31,664 31,664 Agricultural - - - 497 497 234,588 235,085 Commercial 50 - - - 50 394,276 394,326 Consumer & Other 5 - - - 5 129,660 129,665 Leases - - - - - 90,396 90,396 Total $ 610 $ - $ - $ 516 $ 1,126 $ 3,138,675 $ 3,139,801 December 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 958,980 $ 958,980 Agricultural Real Estate - - - 495 495 642,519 643,014 Real Estate Construction - - - - - 185,741 185,741 Residential 1st Mortgages - - - - - 299,379 299,379 Home Equity Lines & Loans - - - - - 34,239 34,239 Agricultural - - - - - 264,372 264,372 Commercial - - - - - 374,816 374,816 Consumer & Other 11 - - - 11 235,518 235,529 Leases - - - - - 103,522 103,522 Total $ 11 $ - $ - $ 495 $ 506 $ 3,099,086 $ 3,099,592 September 30 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 871,623 $ 871,623 Agricultural Real Estate - - - 498 498 638,674 639,172 Real Estate Construction 85 - - - 85 186,538 186,623 Residential 1st Mortgages - - - - - 293,489 293,489 Home Equity Lines & Loans - - - - - 35,875 35,875 Agricultural - - - - - 252,031 252,031 Commercial 547 - - - 547 366,505 367,052 Consumer & Other 67 - - - 67 359,630 359,697 Leases - - - - - 106,369 106,369 Total $ 699 $ - $ - $ 498 $ 1,197 $ 3,110,734 $ 3,111,931 Non-accrual loans & leases were $516,000 at September 30, 2021, $495,000 at December 31, 2020 and $498,000 at September 30, 2020. Foregone interest income on non-accrual loans & leases, which would have been recognized during the period, if all such loans & leases had been current in accordance with their original terms, totaled $35,700, $22,000, and $15,530 at September 30, 2021, December 31, 2020 and September 30, 2020 respectively. The following tables show information related to impaired loans & leases for the periods indicated (in thousands) Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 September 30 2021 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 65 $ 65 $ - $ 73 $ 1 $ 52 $ 2 Agricultural Real Estate 5,613 5,613 - 5,621 88 5,626 324 Agricultural 516 559 - 504 12 415 46 Commercial 8 8 - 9 - 5 - $ 6,202 $ 6,245 $ - $ 6,207 $ 101 $ 6,098 $ 372 With an allowance recorded: Commercial Real Estate $ - $ - $ - $ - $ - $ 28 $ 3 Residential 1st Mortgages 1,503 1,719 75 1,585 16 1,638 52 Home Equity Lines & Loans 60 71 3 61 1 62 3 Agricultural - - - - - 82 - Commercial 210 210 6 213 4 222 12 Consumer & Other 178 179 40 181 3 185 10 $ 1,951 $ 2,179 $ 124 $ 2,040 $ 24 $ 2,217 $ 80 Total $ 8,153 $ 8,424 $ 124 $ 8,247 $ 125 $ 8,315 $ 452 December 31, 2020 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 84 $ 84 $ - $ 764 $ 35 Agricultural Real Estate 5,629 5,629 - 5,629 352 Agricultural 3 3 - 2 - Commercial - - - 377 16 $ 5,716 $ 5,716 $ - $ 6,772 $ 403 With an allowance recorded: Commercial Real Estate $ - $ - $ - $ 21 $ 1 Agricultural Real Estate - - - 137 - Residential 1st Mortgages 1,671 1,895 84 1,652 76 Home Equity Lines & Loans 64 75 3 66 4 Agricultural 492 534 92 410 59 Commercial 234 234 13 123 18 Consumer & Other 190 191 56 194 13 $ 2,651 $ 2,929 $ 248 $ 2,603 $ 171 Total $ 8,367 $ 8,645 $ 248 $ 9,375 $ 574 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 September 30 2020 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 84 $ 84 $ - $ 42 $ 2 $ 991 $ 33 Agricultural Real Estate 5,629 5,629 - 5,629 88 5,633 264 Agricultural 5 6 - 3 - 1 - Commercial - - - - - 503 16 $ 5,718 $ 5,719 $ - $ 5,674 $ 90 $ 7,128 $ 313 With an allowance recorded: Commercial Real Estate $ - $ - $ - $ 42 $ - $ 498 $ 1 Agricultural Real Estate - - - - - 183 - Residential 1st Mortgages 1,686 1,909 84 1,694 18 1,625 58 Home Equity Lines & Loans 65 76 3 66 1 67 3 Agricultural 492 534 92 483 7 333 52 Commercial 235 235 13 123 13 301 15 Consumer & Other 194 195 56 195 3 196 10 $ 2,672 $ 2,949 $ 248 $ 2,603 $ 42 $ 3,203 $ 139 Total $ 8,390 $ 8,668 $ 248 $ 8,277 $ 132 $ 10,331 $ 452 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 since they were restructured at market terms. Since April 2020, we have restructured $278.1 million of loans under the CARES Act and H.R. 133 guidelines. As of September 30, 2021, all of these loans have returned to making principal and/or interest payments. We believe that these actions have assisted these borrowers in getting through these difficult times, but no guarantees can be made that at some time in the future these loans will not be required to be accounted for as a TDR. For borrowers who were 30 days or more past due when enrolling in a loan modification program related to the COVID-19 pandemic, we evaluated the loan modifications under our existing TDR framework, and where such a loan modification would have resulted in a more than insignificant concession to a borrower experiencing financial difficulty, the loan was accounted for as a TDR and would generally not accrue interest. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act and H.R. 133, and the impact of COVID-19 on the Company. At September 30, 2021, there were no formal foreclosure proceedings in process for consumer mortgage loans secured by residential real estate properties. At September 30, 2021, the Company allocated $123,800 of specific reserves to $8.1 million of troubled debt restructured loans & leases, of which $7.6 million were performing. The Company had no commitments at September 30, 2021, to lend additional amounts to customers with outstanding loans or leases that are classified as TDRs. During the three and nine-month periods ended September 30, 2021, there were no loans or leases modified as a troubled debt restructuring. During the three and nine-month periods ended September 30, 2021, the year ended December 31, 2020, and the three and nine-month periods ended September 30, 2020 there were no payment defaults on loans or leases modified as troubled debt restructurings within twelve months following the modification. The Company considers a loan or lease to be in payment default once it is greater than 90 days contractually past due under the modified terms. At December 31, 2020, there were no formal foreclosure proceedings in process for consumer mortgage loans secured by residential real estate properties. At December 31, 2020, the Company allocated $158,000 of specific reserves to $7.9 million of troubled debt restructured loans, all of which were performing. The Company had no commitments at December 31, 2020 to lend additional amounts to customers with outstanding loans that are classified 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 5 years. Modifications involving an extension of the maturity date range from 3 months to 10 years. The following table presents loans or leases by class modified as troubled debt restructured loans or leases for the year ended December 31, 2020 (in thousands) December 31, 2020 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 2 $ 156 $ 156 Agricultural 3 495 495 Commercial 1 224 224 Total 6 $ 875 $ 875 The troubled debt restructurings described above increased the allowance for credit losses by $120,000 for the twelve months ended December 31, 2020. During the year ended December 31, 2020, there were no payment defaults on loans modified as troubled debt restructurings within twelve months following the modification. At September 30, 2020, there were no formal foreclosure proceedings in process for consumer mortgage loans secured by residential real estate properties. At September 30, 2020, the Company allocated $156,000 of specific reserves to $7.9 million of troubled debt restructured loans & leases, all of which were performing. The Company had no commitments at September 30, 2020, to lend additional amounts to customers with outstanding loans or leases that were classified as TDRs. During the nine-month period ended September 30, 2020, there were six loans modified as a troubled debt restructuring. The modifications involved a reduction of the stated interest rate of the loans for 5 years and extended the maturity dates for 10 years. The following table presents loans or leases by class modified as troubled debt restructured loans or leases during the and nine -month periods ended September (in thousand s) : Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages - $ - $ - 2 $ 156 $ 156 Agricultural - - - 3 495 495 Commercial 1 224 224 1 224 224 Total 1 $ 224 $ 224 6 $ 875 $ 875 TDRs described above had minimal impact on the allowance for credit losses and resulted in charge-offs of $7,000 for the nine-month period ended September 30, 2020. During the and -month periods ended September there were payment defaults on loans or leases modified as troubled debt restructurings within months following the modification. The Company considers a loan or lease to be in payment default once it is greater than days contractually past due under the modified terms. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements The Company follows the “Fair Value Measurement and Disclosures” topic of the FASB ASC 820, 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 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 310. 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. The fair value of collateral dependent impaired loans is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including sales comparison, cost and the income approach. Adjustments are often made in the appraisal process by the appraisers to take into account differences between the comparable sales and income and other available data. Such adjustments can be significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation technique used for Level 3 nonrecurring impaired loans is primarily the sales comparison approach less selling costs of 10%. Other Real Estate (“ORE”) is reported at fair value on a non-recurring basis. Fair values are based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including sales comparison, cost and the income approach. Adjustments are often made in the appraisal process by the appraisers to take into account differences between the comparable sales and income and other available data. Such adjustments can be significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation technique used for Level 3 nonrecurring ORE is primarily the sales comparison approach less selling costs of 10%. The following tables present information about the Company’s assets measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Fair Value Measurements At September 30, 2021, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: U.S. Treasury Notes $ 10,150 $ 10,150 $ - $ - U.S. Government Agency SBA 6,919 - 6,919 - Mortgage-Backed Securities 269,569 - 269,569 - Other 46,513 46,203 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 333,151 $ 56,353 $ 276,798 $ - Fair Value Measurements At December 31, 2020, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: U.S. Treasury Notes $ 15,288 $ 15,288 $ - $ - U.S. Government Agency SBA 8,160 - 8,160 - Mortgage-Backed Securities 737,873 - 737,873 - Corporate Securities 45,919 - 45,919 - Other 492 182 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 807,732 $ 15,470 $ 792,262 $ - Fair Value Measurements At September 30, 2020, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: U.S. Treasury Notes $ 95,342 $ 95,342 $ - $ - U.S. Government Agency SBA 8,429 - 8,429 - Mortgage-Backed Securities 439,274 - 439,274 - Corporate Securities 25,063 - 25,063 - Other 428 118 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 568,536 $ 95,460 $ 473,076 $ - Fair values for Level available-for-sale investment securities are based on quoted market prices for similar securities. During the periods ended September 30 there were transfers in or out of Level 1, 2, or 3 The following tables present information about the Company’s other real estate and impaired loans or leases, classes of assets or liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans or leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment of a specific reserve. Fair Value Measurements At September 30, 2021, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Residential 1st Mortgage $ 1,423 $ - $ - $ 1,423 Home Equity Lines & Loans 57 - - 57 Commercial 204 - - 204 Consumer 138 - - 138 Total Impaired Loans 1,822 - - 1,822 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 $ 2,695 $ - $ - $ 2,695 Fair Value Measurements At December 31, 2020, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Residential 1st Mortgage $ 1,584 $ - $ - $ 1,584 Home Equity Lines & Loans 61 - - 61 Agricultural 400 - - 400 Commercial 213 - - 213 Consumer 138 - - 138 Total Impaired Loans 2,396 - - 2,396 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 $ 3,269 $ - $ - $ 3,269 Fair Value Measurements At September 30, 2020, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Residential 1st Mortgage $ 1,599 $ - $ - $ 1,599 Home Equity Lines & Loans 62 - - 62 Agricultural 400 - - 400 Commercial 222 - - 222 Consumer 138 - - 138 Total Impaired Loans $ 2,421 $ - $ - $ 2,421 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 $ 3,294 $ - $ - $ 3,294 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 tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at the dates indicated. September 30, 2021 (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans: Residential 1st Mortgage $ 1,423 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 0.68% - 4.02%, 2.54 % Home Equity Lines & Loans $ 57 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1.1% - 1.3%, 1.20 % Commercial $ 204 Income Approach Capitalization Rate 10%, 10 % Consumer $ 138 Income Approach Capitalization Rate 10%, 10 % Other Real Estate: Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10 % December 31, 2020 (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans: Residential 1st Mortgage $ 1,584 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 0.72% - 4.13%, 2.57 % Home Equity Lines & Loans $ 61 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1.1% - 1.4%, 1.25 % Agricultural $ 400 Income Approach Capitalization Rate 10%, 10 % Commercial $ 213 Income Approach Capitalization Rate 10%, 10 % Consumer $ 138 Income Approach Adjustment for Difference Between Comparable Sales 10%, 10 % Other Real Estate: Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10 % September 30, 2020 (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans: Residential 1st Mortgage $ 1,599 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 0.73% - 4.16%, 2.58 % Home Equity Lines & Loans $ 62 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1.1% - 1.4%, 1.28 % Agricultural $ 400 Income Approach Capitalization Rate 10%, 10 % Commercial $ 222 Income Approach Capitalization Rate 10%, 10 % Consumer $ 138 Income Approach Adjustment for Difference Between Comparable Sales 10%, 10 % Other Real Estate: Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 8. 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 based on the assumptions market participants would use when pricing the asset or liability. 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 fair value of loans held for investment, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses consistent with ASC 820. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, risk premium, credit, and non-performance risk of the loans. Loans are considered a Level 3 classification. The following tables summarize the book value and estimated fair value of financial instruments for the periods indicated: Fair Value of Financial Instruments Using September 30 2021 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 870,763 $ 870,763 $ - $ - $ 870,763 Investment Securities Available-for-Sale 333,151 56,353 276,798 - 333,151 Investment Securities Held-to-Maturity 550,618 - 499,432 40,876 540,308 Loans & Leases, Net 3,079,498 - - 3,090,187 3,090,187 Accrued Interest Receivable 18,762 - 18,762 - 18,762 Liabilities: Deposits 4,568,394 4,174,561 - 394,158 4,568,719 Subordinated Debentures 10,310 - 6,830 - 6,830 Accrued Interest Payable 451 - 451 - 451 Fair Value of Financial Instruments Using December 31, 2020 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 383,837 $ 383,837 $ - $ - $ 383,837 Investment Securities Available-for-Sale 807,732 15,470 792,262 - 807,732 Investment Securities Held-to-Maturity 68,933 - 26,262 43,787 70,049 Loans & Leases, Net 3,040,730 - - 3,045,911 3,045,911 Accrued Interest Receivable 20,333 - 20,333 - 20,333 Liabilities: Deposits 4,060,267 3,638,400 - 422,840 4,061,240 Subordinated Debentures 10,310 - 6,888 - 6,888 Accrued Interest Payable 1,383 - 1,383 - 1,383 Fair Value of Financial Instruments Using September 30 2020 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 358,368 $ 358,368 $ - $ - $ 358,368 Investment Securities Available-for-Sale 568,536 95,460 473,076 - 568,536 Investment Securities Held-to-Maturity 69,913 - 28,244 42,811 71,055 Loans & Leases, Net 3,055,133 - - 3,065,624 3,065,624 Accrued Interest Receivable 22,596 - 22,596 - 22,596 Liabilities: Deposits 3,814,777 3,354,528 - 461,754 3,816,282 Subordinated Debentures 10,310 - 6,518 - 6,518 Accrued Interest Payable 1,618 - 1,618 - 1,618 |
Dividends and Basic and Diluted
Dividends and Basic and Diluted Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Dividends and Basic and Diluted Earnings Per Common Share [Abstract] | |
Dividends and Basic and Diluted Earnings Per Common Share | 9. Dividends and Basic and Diluted Earnings Per Common Share Farmers & Merchants Bancorp common stock is not traded on any exchange. The shares are primarily held by local residents and are not actively traded. However, trades are reported on the OTCQX under the symbol “FMCB”. On May 13, 2021, the Board of Directors declared a mid-year cash dividend of $7.50 per share, a 3.4% increase over the $7.25 per share paid on July 1, 2020. The cash dividend was paid on July 1, 2021, to shareholders of record on June 11, 2021. Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. The following table calculates the basic earnings per common share for the three and nine-month periods ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, ( net income in thousands 2021 2020 2021 2020 Net Income $ 17,502 $ 14,810 $ 50,368 $ 43,241 Weighted Average Number of Common Shares Outstanding 789,646 793,556 789,646 793,539 Basic and Diluted Earnings Per Common Share $ 22.16 $ 18.66 $ 63.79 $ 54.49 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 10. Leases Lessee – Operating Leases Operating leases in which we are the lessee are recorded as operating lease right-of-use (“ROU”) assets and operating lease liabilities, included in other assets other liabilities Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded net in occupancy expense in the consolidated statements of income. Our leases relate primarily to office space and bank branches with remaining lease terms of generally one five As of September 30 operating lease ROU assets and liabilities were and , respectively. As of September 30 operating lease ROU assets and liabilities were and , respectively. In the first quarter of 2021, early termination of lease resulted in a reduction to ROU assets and liabilities of and respectively. In the third quarter of 2021, a new modification to renew a lease for five The table below summarizes the information related to our operating leases: (in thousands except for percent and period data) Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Nine Months Ended September 30, 2020 Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flow from Operating Leases $ 536 $ 795 $ 594 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities $ 302 $ - $ - Weighted-Average Remaining Lease Term - Operating Leases, in Years 6.76 7.33 7.29 Weighted-Average Discount Rate - Operating Leases 2.6 % 2.9 % 3.2 % The table below summarizes the maturity of remaining lease liability: (in thousands) September 30, 2021 2021 $ 174 2022 702 2023 714 2024 730 2025 741 2026 and thereafter 1,602 Total Lease Payments 4,663 Less: Interest (377 ) Present Value of Lease Liabilities $ 4,286 As of September 30, 2021, we have no additional operating leases for office space that have not yet commenced or that are anticipated to commence during the fourth quarter of 2021. Lessor - Direct Financing Leases The Company is the lessor in direct finance lease arrangements. Leases are recorded at the principal balance outstanding, net of unearned income and charge-offs. Interest income is recognized using the interest method. Leases typically have a maturity of three Lease payments due to the Company are typically fixed and paid in equal installments over the lease term. Variable lease payments that do not depend on an index or a rate (e.g., property taxes) that are paid directly by the Company are minimal. The majority of property taxes are paid directly by the client to a third party and are not considered part of variable payments and therefore are not recorded by the Company. As a lessor, the Company leases certain types of agriculture equipment, solar equipment, construction equipment and other equipment to its customers. The Company’s net investment in direct financing leases was $ million at September 30, $ million at December 31, 2020, and $ million at September 30 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 11. Recent Accounting Pronouncements Accounting Standards Adopted in 2021 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). The updated guidance simplifies the accounting for income taxes by removing certain exceptions and improves the consistent application of GAAP by clarifying and amending other existing guidance. We adopted this ASU prospectively on January 1, 2021, which did not have a material impact on our financial condition or results of operations. Accounting Guidance Pending Adoption at September 30, 2021 The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In March the FASB issued ASU No. - Reference Rate Reform (Topic . The amendments in this ASU are elective and provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU may be elected as of March through December An entity may choose to elect the amendments in this update at an interim period subsequent to March with adoption methods varying based on transaction type. We have not elected to apply these amendments. However, we will assess the applicability of the ASU to us and continue to monitor guidance for reference rate reform from FASB and its impact on our financial condition and results of operations. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The main amendments in this ASU are intended to clarify certain optional expedients and scope of derivative instruments. The amendments are elective and effective immediately upon issuance of this ASU. Amendments may be elected through December 31, 2022. We have not elected to apply amendments at this time, however, will assess the applicability of this ASU to us as we continue to monitor guidance for reference rate reform from FASB and its impact on our financial condition and results of operations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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 unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for quarterly reports on Form 10-Q. These unaudited consolidated financial statements do not include all disclosures associated with the Company’s consolidated annual financial statements included in its Annual Report on Form 10-K, as amended (“2020 Annual Report on Form 10-K”), for the year ended December 31, 2020 and, accordingly, should be read in conjunction with such audited consolidated financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 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. |
Accounting Guidance Pending Adoption | Accounting Guidance Pending Adoption at September The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In June the FASB issued ASU - 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. During the Company completed an assessment of its current expected credit losses (CECL) data and system needs, and engaged a -party vendor to assist in developing a CECL model. The Company, in conjunction with this vendor, researched and analyzed modeling standards, loan segmentation, as well as potential external inputs to supplement our historical loss history. Model validation began in the quarter of enabling the Company to complete parallel runs using data beginning with the quarter of The new guidance had been effective on January However, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and H.R. resulted in federal banking regulators issuing an interim final rule allowing banks the option of delaying the implementation of CECL until January In addition, the national banking regulators have issued a joint statement allowing financial institutions to mitigate the effects of CECL in their regulatory capital calculations for up to years. The Company has elected to delay CECL adoption, but continues to run its CECL model quarterly to accumulate data for the ultimate implementation. Management is currently evaluating the impact that the standard will have on its consolidated financial statements. |
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, and Federal Funds Sold, which have original maturity dates of months or less. 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 to earliest call date 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. Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted using the effective interest method over the life of the security as an adjustment of yield. Unrealized holding gains or losses that remain in accumulated other comprehensive income are amortized or accreted over the remaining life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. 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. Equity securities are carried at fair value with changes in market value 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 more than insignificant 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 non-accrual status at the time they become TDR, remain on non-accrual status until the borrower demonstrates a sustained period of performance, which the Company generally believes to be six 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. On March the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law by Congress and was amended and extended by the Consolidated Appropriations Act of (“H.R. ”) on December The CARES Act and H.R. provide financial institutions, under specific circumstances, the opportunity to temporarily suspend certain requirements under generally accepted accounting principles related to modifications for a limited period of time to account for the effects of COVID- In March a joint statement was issued by federal and state regulatory agencies, after consultation with the FASB, to clarify that short-term loan modifications are not TDRs if made on a good-faith basis in response to COVID- to borrowers who were current prior to any relief. Under this guidance, months is provided as an example of short-term, and current is defined as less than days past due at the time the modification program is implemented. The guidance also provides that these modified loans generally will not be classified as non-accrual during the term of the modification. See “Note – Risks and Uncertainties” for additional information on the CARES Act and H.R. and the impact of COVID- on the Company. |
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 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 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 Company’s 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 and Watch – A pass loan or lease is a strong credit with no existing or known potential weaknesses deserving of management’s Special Mention – A special mention loan or lease has potential weaknesses that deserve management’s Company’s 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 project’s Doubtful – Loans or leases classified doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, highly questionable or improbable. 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 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 lower inherent risk of loss. 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 borrowers’ 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’ 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 |
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. |
Right of Use Lease Asset & Lease Liability | Right of Use Lease Asset & Lease Liability The Company leases retail space and office space under operating leases. Most leases require the Company to pay real estate taxes, maintenance, insurance and other similar costs in addition to the base rent. Certain leases also contain lease incentives, such as tenant improvement allowances and rent abatement. Variable lease payments are recognized as lease expense as they are incurred. We record an operating lease right of use (ROU) asset and an operating lease liability (lease liability) for operating leases with a lease term greater than months. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated statement of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Accordingly, ROU assets are reduced by tenant improvement allowances from landlords plus any prepaid rent. We do not separate lease and non-lease components of contracts. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Many of our leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule, which are factored into our determination of lease payments when appropriate. A majority of the leases provide the Company with the option to extend the lease term or more times following expiration of the initial term. The ROU asset and lease liability terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic “Revenue from Contracts with Customers” (“Topic ”). Under Topic the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is limited judgment involved in applying Topic that significantly affects the determination of the amount and timing of revenue from contracts with customers. |
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 three five |
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. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law by Congress and was amended and extended by the Consolidated Appropriations Act of 2021 (“H.R. 133”) on December 21, 2020. The CARES Act and H.R. 133 restrict the ability of financial institutions to exercise their foreclosure rights on residential and multi-family properties backed by federally guaranteed mortgage loans. The State of California went further and temporarily suspended all residential and commercial foreclosures through September 30, 2021, but these guidelines have now expired. The Company continues to work with its borrowers when they make requests to defer payments on their mortgage loans. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act and H.R. 133 and the impact of COVID-19 on the Company. |
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”) 740, 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. The Company accounts for its interest in Low Income Housing Tax Credits (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. 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 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. For the three and nine-month periods ended September and the Company had no material uncertain tax positions and recognized interest or penalties. The Company’s policy is to recognize interest and penalties related to income taxes in the provision for income taxes in the Consolidated Statements of Income. |
Basic and Diluted Earnings Per Common Share | Basic and Diluted Earnings Per Common Share The Company’s common stock is not traded on any exchange. However, trades are reported on the OTCQX under the symbol “FMCB”. 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 common stock equivalent shares. – “Dividends and Basic and Diluted Earnings Per Common Share” 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. |
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 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, changes in fair value of its available-for-sale investment securities and amortization of net unrealized gains or losses on securities transferred from available-for-sale to held-to-maturity, net of related taxes. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill that arises from a business combination is periodically evaluated for impairment at the reporting unit level, at least annually. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible (“CDI”) At September the future estimated amortization expense for the CDI arising from our past acquisitions is as follows: (in thousands) 2021 2022 2023 2024 2025 Thereafter Total Core Deposit Intangible Amortization $ 153 $ 593 $ 573 $ 549 $ 522 $ 1,165 $ 3,555 We make a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit where goodwill is assigned is less than its carrying amount. If we conclude that it is more likely than not that the fair value is more than its carrying amount, no impairment is recorded. Goodwill is tested for impairment on an interim basis if circumstances change or an event occurs between annual tests that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The qualitative assessment includes adverse events or circumstances identified that could negatively affect the reporting units’ fair value as well as positive and mitigating events. Such indicators may include, among others, a significant change in legal factors or in the general business climate, significant change in our stock price and market capitalization, unanticipated competition, and an action or assessment by a regulator. If the fair value of a reporting unit is less than its carrying amount, an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Recent Accounting Pronouncements [Abstract] | |
Accounting Standards Adopted and Pending Adoption | Accounting Standards Adopted in 2021 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). The updated guidance simplifies the accounting for income taxes by removing certain exceptions and improves the consistent application of GAAP by clarifying and amending other existing guidance. We adopted this ASU prospectively on January 1, 2021, which did not have a material impact on our financial condition or results of operations. Accounting Guidance Pending Adoption at September 30, 2021 The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In March the FASB issued ASU No. - Reference Rate Reform (Topic . The amendments in this ASU are elective and provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU may be elected as of March through December An entity may choose to elect the amendments in this update at an interim period subsequent to March with adoption methods varying based on transaction type. We have not elected to apply these amendments. However, we will assess the applicability of the ASU to us and continue to monitor guidance for reference rate reform from FASB and its impact on our financial condition and results of operations. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The main amendments in this ASU are intended to clarify certain optional expedients and scope of derivative instruments. The amendments are elective and effective immediately upon issuance of this ASU. Amendments may be elected through December 31, 2022. We have not elected to apply amendments at this time, however, will assess the applicability of this ASU to us as we continue to monitor guidance for reference rate reform from FASB and its impact on our financial condition and results of operations. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Significant Accounting Policies [Abstract] | |
Future Estimated Amortization Expense for CDI | At September the future estimated amortization expense for the CDI arising from our past acquisitions is as follows: (in thousands) 2021 2022 2023 2024 2025 Thereafter Total Core Deposit Intangible Amortization $ 153 $ 593 $ 573 $ 549 $ 522 $ 1,165 $ 3,555 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 debt securities available-for-sale are as follows (in thousands) Amortized Cost Gross Unrealized Fair Value September 30 2021 Gains Losses U.S. Treasury Notes $ 9,922 $ 228 $ - $ 10,150 U.S. Government Agency SBA 6,892 70 43 6,919 Mortgage-Backed Securities (1)(2) 270,667 4,243 5,341 269,569 Other 46,513 - - 46,513 Total $ 333,994 $ 4,541 $ 5,384 $ 333,151 Amortized Cost Gross Unrealized Fair Value December 31 2020 Gains Losses U.S. Treasury Notes $ 14,859 $ 429 $ - $ 15,288 U.S. Government Agency SBA 8,252 1 93 8,160 Mortgage-Backed Securities (1) 720,562 17,359 48 737,873 Corporate Securities 45,010 927 18 45,919 Other 492 - - 492 Total $ 789,175 $ 18,716 $ 159 $ 807,732 Amortized Cost Gross Unrealized Fair Value September 30 2020 Gains Losses U.S. Treasury Notes $ 94,830 $ 512 $ - $ 95,342 U.S. Government Agency SBA 8,530 1 102 8,429 Mortgage-Backed Securities (1) 421,263 18,050 39 439,274 Corporate Securities 25,002 159 98 25,063 Other 428 - - 428 Total $ 550,053 $ 18,722 $ 239 $ 568,536 (1) All Mortgage-Backed securities consist of securities collateralized by residential real estate and were issued by an agency or government-sponsored entity of the U.S. government. (2) During Q the Company transferred of AFS securities to HTM. |
Amortized Cost, Estimated Fair Values and Unrealized Gains and Losses of Investments Classified as Held-to-Maturity | The amortized cost, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity are as follows (in thousand s): Amortized Cost Gross Unrealized Fair Value September 30 2021 Gains Losses Obligations of States and Political Subdivisions $ 62,936 $ 768 $ - $ 63,704 Mortgage Backed Securities (1)(2) 487,682 48 11,126 476,604 Total $ 550,618 $ 816 $ 11,126 $ 540,308 Amortized Cost Gross Unrealized Fair Value December 31 2020 Gains Losses Obligations of States and Political Subdivisions $ 68,933 $ 1,116 $ - $ 70,049 Total $ 68,933 $ 1,116 $ - $ 70,049 Amortized Value Gross Unrealized Fair Value September 30 2020 Gains Losses Obligations of States and Political Subdivisions $ 69,913 $ 1,142 $ - $ 71,055 Total $ 69,913 $ 1,142 $ - $ 71,055 (1) All Mortgage-Backed securities were issued by an agency or government-sponsored entity of the U.S. government. (2) During Q the Company transferred of AFS securities to HTM. |
Amortized Cost and Estimated Fair Values of Investment Securities by Contractual Maturity | The amortized cost and estimated fair values of investment securities at September 30, 2021 by contractual maturity are shown in the following table (in thousand s): Available-for-Sale Held-to-Maturity September 30 2021 Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 51,503 $ 51,569 $ 308 $ 308 After one year through five years 5,100 5,262 6,969 7,012 After five years through ten years 563 566 19,543 20,254 After ten years 6,161 6,185 36,116 36,130 63,327 63,582 62,936 63,704 Investment securities not due at a single maturity date: Mortgage-Backed securities 270,667 269,569 487,682 476,604 Total $ 333,994 $ 333,151 $ 550,618 $ 540,308 |
Investments with Gross Unrealized Losses and Their Market Value Aggregated by Investment Category and Length of Time that Individual Securities Have Been in a Continuous Unrealized Loss Position | The following tables show those investments with gross unrealized losses and their market value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at the dates indicated (in thousand s) : Less Than 12 Months 12 Months or More Total September 30 2021 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale U.S. Government Agency SBA $ 188 $ 1 $ 2,141 $ 42 $ 2,329 $ 43 Mortgage-Backed Securities 171,869 5,339 116 2 171,985 5,341 Total $ 172,057 $ 5,340 $ 2,257 $ 44 $ 174,314 $ 5,384 Securities Held-to-Maturity Mortgage Backed Securities 468,360 11,126 - - $ 468,360 $ 11,126 Total $ 468,360 $ 11,126 $ - $ - $ 468,360 $ 11,126 Less Than 12 Months 12 Months or More Total December 31 2020 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale U.S. Government Agency SBA $ 1,741 $ 3 $ 6,126 $ 90 $ 7,867 $ 93 Mortgage-Backed Securities 20,142 45 177 3 20,319 48 Corporate Securities 4,041 18 - - 4,041 18 Total $ 25,924 $ 66 $ 6,303 $ 93 $ 32,227 $ 159 There were no HTM investments with gross unrealized losses at December 31, 2020. Less Than 12 Months 12 Months or More Total September 30 2020 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale U.S. Government Agency SBA $ 2,312 $ 4 $ 5,810 $ 98 $ 8,122 $ 102 Mortgage-Backed Securities 20,741 35 194 4 20,935 39 Corporate Securities 10,363 98 - - 10,363 98 Total $ 33,416 $ 137 $ 6,004 $ 102 $ 39,420 $ 239 |
Proceeds from Sales and Calls of Securities | Proceeds from sales and calls of securities for the periods shown were as follows: Three Months Ended Nine Months Ended (in s) 2021 2020 2021 2020 Proceeds $ 1,450 $ 50,620 $ 301,320 $ 53,620 Gains - - 5,570 13 Losses - - 3,016 - |
Loans & Leases (Tables)
Loans & Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans & Leases [Abstract] | |
Components of Loans & Leases | Loans & Leases consisted of the following: (in thousands) September 30, 2021 December 31, 2020 September 30, 2020 Commercial Real Estate $ 1,126,230 $ 971,326 $ 887,999 Agricultural Real Estate 656,337 643,014 639,172 Real Estate Construction 178,451 185,741 186,623 Residential 1st Mortgages 309,728 299,379 293,489 Home Equity Lines & Loans 31,664 34,239 35,875 Agricultural 235,085 264,372 252,031 Commercial 394,326 374,816 367,052 Consumer & Other (1) 129,665 235,529 359,697 Leases 90,022 103,117 105,511 Total Gross Loans & Leases 3,151,508 3,111,533 3,127,449 Less: Unearned Income 11,707 11,941 15,518 Subtotal 3,139,801 3,099,592 3,111,931 Less: Allowance for Credit Losses 60,303 58,862 56,798 Net Loans & Leases $ 3,079,498 $ 3,040,730 $ 3,055,133 (1) Includes CARES Act Small Business Administration Paycheck Protection Program loans of $ , $ and $ as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Credit Losses [Abstract] | |
Allocation of Allowance for Credit Losses by Portfolio Segment and by Impairment Methodology | The following tables show the allocation of the allowance for credit losses by portfolio segment and by impairment methodology at the dates indicated (in thousands) September 30 2021 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- December 31, 2020 $ 27,679 $ 8,633 $ 1,643 $ 960 $ 2,024 $ 4,814 $ 9,961 $ 333 $ 1,731 $ 1,084 $ 58,862 Charge-Offs - - - - - - - (33 ) - - (33 ) Recoveries - - - 74 17 29 83 21 - - 224 Provision 1,200 794 (210 ) (70 ) (129 ) (238 ) 738 (23 ) (872 ) 60 1,250 Ending Balance- September 30 2021 $ 28,879 $ 9,427 $ 1,433 $ 964 $ 1,912 $ 4,605 $ 10,782 $ 298 $ 859 $ 1,144 $ 60,303 Third Quarter Allowance for Credit Losses: Beginning Balance- June 30, 2021 $ 28,890 $ 9,107 $ 1,405 $ 957 $ 1,899 $ 4,552 $ 9,920 $ 281 $ 1,639 $ 1,579 $ 60,229 Charge-Offs - - - - - - - (17 ) - - (17 ) Recoveries - - - 15 6 24 38 8 - - 91 Provision (11 ) 320 28 (8 ) 7 29 824 26 (780 ) (435 ) - Ending Balance- September 30 2021 $ 28,879 $ 9,427 $ 1,433 $ 964 $ 1,912 $ 4,605 $ 10,782 $ 298 $ 859 $ 1,144 $ 60,303 Ending Balance Individually Evaluated for Impairment - - - 88 6 - 6 40 - - 140 Ending Balance Collectively Evaluated for Impairment 28,879 9,427 1,433 876 1,906 4,605 10,776 258 859 1,144 60,163 Loans & Leases: Ending Balance $ 1,114,149 $ 656,337 $ 178,451 $ 309,728 $ 31,664 $ 235,085 $ 394,326 $ 129,665 $ 90,396 $ - $ 3,139,801 Ending Balance Individually Evaluated for Impairment 74 - - 1,764 112 6,129 218 178 - - 8,475 Ending Balance Collectively Evaluated for Impairment $ 1,114,075 $ 656,337 $ 178,451 $ 307,964 $ 31,552 $ 228,956 $ 394,108 $ 129,487 $ 90,396 $ - $ 3,131,326 December 31, 2020 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- December 31, 2019 $ 11,053 $ 15,128 $ 1,949 $ 855 $ 2,675 $ 8,076 $ 11,466 $ 456 $ 3,162 $ 192 $ 55,012 Charge-Offs - - - - (7 ) - (1,101 ) (66 ) - - (1,174 ) Recoveries - - - 52 78 81 280 33 - - 524 Provision 16,626 (6,495 ) (306 ) 53 (722 ) (3,343 ) (684 ) (90 ) (1,431 ) 892 4,500 Ending Balance- December 31, 2020 $ 27,679 $ 8,633 $ 1,643 $ 960 $ 2,024 $ 4,814 $ 9,961 $ 333 $ 1,731 $ 1,084 $ 58,862 Ending Balance Individually Evaluated for Impairment - - - 117 8 92 20 52 - - 289 Ending Balance Collectively Evaluated for Impairment 27,679 8,633 1,643 843 2,016 4,722 9,941 281 1,731 1,084 58,573 Loans & Leases: Ending Balance $ 958,980 $ 643,014 $ 185,741 $ 299,379 $ 34,239 $ 264,372 $ 374,816 $ 235,529 $ 103,522 $ - $ 3,099,592 Ending Balance Individually Evaluated for Impairment 104 5,629 - 2,365 158 495 233 254 - - 9,238 Ending Balance Collectively Evaluated for Impairment $ 958,876 $ 637,385 $ 185,741 $ 297,014 $ 34,081 $ 263,877 $ 374,583 $ 235,275 $ 103,522 $ - $ 3,090,354 September 30 2020 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- December 31, 2019 $ 11,053 $ 15,128 $ 1,949 $ 855 $ 2,675 $ 8,076 $ 11,466 $ 456 $ 3,162 $ 192 $ 55,012 Charge-Offs - - - - (7 ) - (426 ) (54 ) - - (487 ) Recoveries - - - 49 65 54 80 25 - - 273 Provision 13,236 (6,336 ) (381 ) 45 (617 ) (3,458 ) (1,127 ) (63 ) (248 ) 949 2,000 Ending Balance- September 30 2020 $ 24,289 $ 8,792 $ 1,568 $ 949 $ 2,116 $ 4,672 $ 9,993 $ 364 $ 2,914 $ 1,141 $ 56,798 Third Quarter Allowance for Credit Losses: Beginning Balance- June 30, 2020 $ 21,423 $ 9,021 $ 1,452 $ 1,771 $ 2,239 $ 4,790 $ 10,043 $ 359 $ 2,800 $ 1,160 $ 55,058 Charge-Offs - - - - - - - (25 ) - - (25 ) Recoveries - - - 3 31 24 - 7 - - 65 Provision 2,866 (229 ) 116 (825 ) (154 ) (142 ) (50 ) 23 114 (19 ) 1,700 Ending Balance- September 30 2020 $ 24,289 $ 8,792 $ 1,568 $ 949 $ 2,116 $ 4,672 $ 9,993 $ 364 $ 2,914 $ 1,141 $ 56,798 Ending Balance Individually Evaluated for Impairment - - - 118 8 92 13 56 - - 287 Ending Balance Collectively Evaluated for Impairment 24,289 8,792 1,568 831 2,108 4,580 9,980 308 2,914 1,141 56,511 Loans & Leases: Ending Balance $ 871,623 $ 639,172 $ 186,623 $ 293,489 $ 35,875 $ 252,031 $ 367,052 $ 359,697 $ 106,369 $ - $ 3,111,931 Ending Balance Individually Evaluated for Impairment 108 5,629 - 2,390 164 498 235 194 - - 9,218 Ending Balance Collectively Evaluated for Impairment $ 871,515 $ 633,543 $ 186,623 $ 291,099 $ 35,711 $ 251,533 $ 366,817 $ 359,503 $ 106,369 $ - $ 3,102,713 |
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings | The following tables show the loan & lease portfolio, including unearned income, allocated by management’s internal risk ratings at the dates indicated (in thousands) September 30 2021 Pass (1) Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 1,098,929 $ 7,371 $ 7,849 $ 1,114,149 Agricultural Real Estate 646,486 3,312 6,539 656,337 Real Estate Construction 178,451 - - 178,451 Residential 1st Mortgages 308,960 - 768 309,728 Home Equity Lines & Loans 31,490 - 174 31,664 Agricultural 233,493 1,018 574 235,085 Commercial 384,660 8,970 696 394,326 Consumer & Other 129,450 - 215 129,665 Leases 90,396 - - 90,396 Total $ 3,102,315 $ 20,671 $ 16,815 $ 3,139,801 (1) Includes "Watch" loans of $ million. December 31, 2020 Pass (1) Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 946,621 $ 7,849 $ 4,510 $ 958,980 Agricultural Real Estate 631,043 400 11,571 643,014 Real Estate Construction 185,741 - - 185,741 Residential 1st Mortgages 298,689 - 690 299,379 Home Equity Lines & Loans 34,058 - 181 34,239 Agricultural 263,781 96 495 264,372 Commercial 373,038 1,060 718 374,816 Consumer & Other 235,063 - 466 235,529 Leases 103,522 - - 103,522 Total $ 3,071,556 $ 9,405 $ 18,631 $ 3,099,592 (1) Includes "Watch" loans of $ million. September 30 2020 Pass (1) Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 861,874 $ 5,239 $ 4,510 $ 871,623 Agricultural Real Estate 624,859 1,525 12,788 639,172 Real Estate Construction 186,623 - - 186,623 Residential 1st Mortgages 292,792 - 697 293,489 Home Equity Lines & Loans 35,691 - 184 35,875 Agricultural 251,108 - 923 252,031 Commercial 364,465 1,316 1,271 367,052 Consumer & Other 359,194 - 503 359,697 Leases 106,369 - - 106,369 Total $ 3,082,975 $ 8,080 $ 20,876 $ 3,111,931 (1) Includes "Watch" loans of $ million. |
Aging Analysis of Loan & Lease Portfolio by Past Due | The following tables show an aging analysis of the loan & lease portfolio, including unearned income, past due at the dates indicated (in thousands) September 30 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ 453 $ - $ - $ - $ 453 $ 1,113,696 $ 1,114,149 Agricultural Real Estate - - - 19 19 656,318 656,337 Real Estate Construction - - - - - 178,451 178,451 Residential 1st Mortgages 102 - - - 102 309,626 309,728 Home Equity Lines & Loans - - - - - 31,664 31,664 Agricultural - - - 497 497 234,588 235,085 Commercial 50 - - - 50 394,276 394,326 Consumer & Other 5 - - - 5 129,660 129,665 Leases - - - - - 90,396 90,396 Total $ 610 $ - $ - $ 516 $ 1,126 $ 3,138,675 $ 3,139,801 December 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 958,980 $ 958,980 Agricultural Real Estate - - - 495 495 642,519 643,014 Real Estate Construction - - - - - 185,741 185,741 Residential 1st Mortgages - - - - - 299,379 299,379 Home Equity Lines & Loans - - - - - 34,239 34,239 Agricultural - - - - - 264,372 264,372 Commercial - - - - - 374,816 374,816 Consumer & Other 11 - - - 11 235,518 235,529 Leases - - - - - 103,522 103,522 Total $ 11 $ - $ - $ 495 $ 506 $ 3,099,086 $ 3,099,592 September 30 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 871,623 $ 871,623 Agricultural Real Estate - - - 498 498 638,674 639,172 Real Estate Construction 85 - - - 85 186,538 186,623 Residential 1st Mortgages - - - - - 293,489 293,489 Home Equity Lines & Loans - - - - - 35,875 35,875 Agricultural - - - - - 252,031 252,031 Commercial 547 - - - 547 366,505 367,052 Consumer & Other 67 - - - 67 359,630 359,697 Leases - - - - - 106,369 106,369 Total $ 699 $ - $ - $ 498 $ 1,197 $ 3,110,734 $ 3,111,931 |
Impaired Loans & Leases | The following tables show information related to impaired loans & leases for the periods indicated (in thousands) Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 September 30 2021 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 65 $ 65 $ - $ 73 $ 1 $ 52 $ 2 Agricultural Real Estate 5,613 5,613 - 5,621 88 5,626 324 Agricultural 516 559 - 504 12 415 46 Commercial 8 8 - 9 - 5 - $ 6,202 $ 6,245 $ - $ 6,207 $ 101 $ 6,098 $ 372 With an allowance recorded: Commercial Real Estate $ - $ - $ - $ - $ - $ 28 $ 3 Residential 1st Mortgages 1,503 1,719 75 1,585 16 1,638 52 Home Equity Lines & Loans 60 71 3 61 1 62 3 Agricultural - - - - - 82 - Commercial 210 210 6 213 4 222 12 Consumer & Other 178 179 40 181 3 185 10 $ 1,951 $ 2,179 $ 124 $ 2,040 $ 24 $ 2,217 $ 80 Total $ 8,153 $ 8,424 $ 124 $ 8,247 $ 125 $ 8,315 $ 452 December 31, 2020 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 84 $ 84 $ - $ 764 $ 35 Agricultural Real Estate 5,629 5,629 - 5,629 352 Agricultural 3 3 - 2 - Commercial - - - 377 16 $ 5,716 $ 5,716 $ - $ 6,772 $ 403 With an allowance recorded: Commercial Real Estate $ - $ - $ - $ 21 $ 1 Agricultural Real Estate - - - 137 - Residential 1st Mortgages 1,671 1,895 84 1,652 76 Home Equity Lines & Loans 64 75 3 66 4 Agricultural 492 534 92 410 59 Commercial 234 234 13 123 18 Consumer & Other 190 191 56 194 13 $ 2,651 $ 2,929 $ 248 $ 2,603 $ 171 Total $ 8,367 $ 8,645 $ 248 $ 9,375 $ 574 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 September 30 2020 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 84 $ 84 $ - $ 42 $ 2 $ 991 $ 33 Agricultural Real Estate 5,629 5,629 - 5,629 88 5,633 264 Agricultural 5 6 - 3 - 1 - Commercial - - - - - 503 16 $ 5,718 $ 5,719 $ - $ 5,674 $ 90 $ 7,128 $ 313 With an allowance recorded: Commercial Real Estate $ - $ - $ - $ 42 $ - $ 498 $ 1 Agricultural Real Estate - - - - - 183 - Residential 1st Mortgages 1,686 1,909 84 1,694 18 1,625 58 Home Equity Lines & Loans 65 76 3 66 1 67 3 Agricultural 492 534 92 483 7 333 52 Commercial 235 235 13 123 13 301 15 Consumer & Other 194 195 56 195 3 196 10 $ 2,672 $ 2,949 $ 248 $ 2,603 $ 42 $ 3,203 $ 139 Total $ 8,390 $ 8,668 $ 248 $ 8,277 $ 132 $ 10,331 $ 452 |
Loans or Leases by Class Modified as Troubled Debt Restructured Loans | The following table presents loans or leases by class modified as troubled debt restructured loans or leases for the year ended December 31, 2020 (in thousands) December 31, 2020 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 2 $ 156 $ 156 Agricultural 3 495 495 Commercial 1 224 224 Total 6 $ 875 $ 875 The following table presents loans or leases by class modified as troubled debt restructured loans or leases during the and nine -month periods ended September (in thousand s) : Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages - $ - $ - 2 $ 156 $ 156 Agricultural - - - 3 495 495 Commercial 1 224 224 1 224 224 Total 1 $ 224 $ 224 6 $ 875 $ 875 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Fair Value Measurements At September 30, 2021, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: U.S. Treasury Notes $ 10,150 $ 10,150 $ - $ - U.S. Government Agency SBA 6,919 - 6,919 - Mortgage-Backed Securities 269,569 - 269,569 - Other 46,513 46,203 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 333,151 $ 56,353 $ 276,798 $ - Fair Value Measurements At December 31, 2020, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: U.S. Treasury Notes $ 15,288 $ 15,288 $ - $ - U.S. Government Agency SBA 8,160 - 8,160 - Mortgage-Backed Securities 737,873 - 737,873 - Corporate Securities 45,919 - 45,919 - Other 492 182 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 807,732 $ 15,470 $ 792,262 $ - Fair Value Measurements At September 30, 2020, Using Fair Value Quoted Prices in Active Markets for Identical Assets Other Observable Inputs Significant Unobservable Inputs (in thousands) Total (Level 1) (Level 2) (Level 3) Available-for-Sale Securities: U.S. Treasury Notes $ 95,342 $ 95,342 $ - $ - U.S. Government Agency SBA 8,429 - 8,429 - Mortgage-Backed Securities 439,274 - 439,274 - Corporate Securities 25,063 - 25,063 - Other 428 118 310 - Total Assets Measured at Fair Value On a Recurring Basis $ 568,536 $ 95,460 $ 473,076 $ - |
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following tables present information about the Company’s other real estate and impaired loans or leases, classes of assets or liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans or leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment of a specific reserve. Fair Value Measurements At September 30, 2021, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Residential 1st Mortgage $ 1,423 $ - $ - $ 1,423 Home Equity Lines & Loans 57 - - 57 Commercial 204 - - 204 Consumer 138 - - 138 Total Impaired Loans 1,822 - - 1,822 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 $ 2,695 $ - $ - $ 2,695 Fair Value Measurements At December 31, 2020, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Residential 1st Mortgage $ 1,584 $ - $ - $ 1,584 Home Equity Lines & Loans 61 - - 61 Agricultural 400 - - 400 Commercial 213 - - 213 Consumer 138 - - 138 Total Impaired Loans 2,396 - - 2,396 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 $ 3,269 $ - $ - $ 3,269 Fair Value Measurements At September 30, 2020, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans: Residential 1st Mortgage $ 1,599 $ - $ - $ 1,599 Home Equity Lines & Loans 62 - - 62 Agricultural 400 - - 400 Commercial 222 - - 222 Consumer 138 - - 138 Total Impaired Loans $ 2,421 $ - $ - $ 2,421 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 $ 3,294 $ - $ - $ 3,294 |
Quantitative Information about Level 3 Fair Value Measurements for Financial Assets Measured at Fair Value on a Nonrecurring Basis | The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at the dates indicated. September 30, 2021 (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans: Residential 1st Mortgage $ 1,423 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 0.68% - 4.02%, 2.54 % Home Equity Lines & Loans $ 57 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1.1% - 1.3%, 1.20 % Commercial $ 204 Income Approach Capitalization Rate 10%, 10 % Consumer $ 138 Income Approach Capitalization Rate 10%, 10 % Other Real Estate: Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10 % December 31, 2020 (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans: Residential 1st Mortgage $ 1,584 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 0.72% - 4.13%, 2.57 % Home Equity Lines & Loans $ 61 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1.1% - 1.4%, 1.25 % Agricultural $ 400 Income Approach Capitalization Rate 10%, 10 % Commercial $ 213 Income Approach Capitalization Rate 10%, 10 % Consumer $ 138 Income Approach Adjustment for Difference Between Comparable Sales 10%, 10 % Other Real Estate: Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10 % September 30, 2020 (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans: Residential 1st Mortgage $ 1,599 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 0.73% - 4.16%, 2.58 % Home Equity Lines & Loans $ 62 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1.1% - 1.4%, 1.28 % Agricultural $ 400 Income Approach Capitalization Rate 10%, 10 % Commercial $ 222 Income Approach Capitalization Rate 10%, 10 % Consumer $ 138 Income Approach Adjustment for Difference Between Comparable Sales 10%, 10 % Other Real Estate: Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10 % |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value of Financial Instruments [Abstract] | |
Book Value and Estimated Fair Value of Financial Instruments | The following tables summarize the book value and estimated fair value of financial instruments for the periods indicated: Fair Value of Financial Instruments Using September 30 2021 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 870,763 $ 870,763 $ - $ - $ 870,763 Investment Securities Available-for-Sale 333,151 56,353 276,798 - 333,151 Investment Securities Held-to-Maturity 550,618 - 499,432 40,876 540,308 Loans & Leases, Net 3,079,498 - - 3,090,187 3,090,187 Accrued Interest Receivable 18,762 - 18,762 - 18,762 Liabilities: Deposits 4,568,394 4,174,561 - 394,158 4,568,719 Subordinated Debentures 10,310 - 6,830 - 6,830 Accrued Interest Payable 451 - 451 - 451 Fair Value of Financial Instruments Using December 31, 2020 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 383,837 $ 383,837 $ - $ - $ 383,837 Investment Securities Available-for-Sale 807,732 15,470 792,262 - 807,732 Investment Securities Held-to-Maturity 68,933 - 26,262 43,787 70,049 Loans & Leases, Net 3,040,730 - - 3,045,911 3,045,911 Accrued Interest Receivable 20,333 - 20,333 - 20,333 Liabilities: Deposits 4,060,267 3,638,400 - 422,840 4,061,240 Subordinated Debentures 10,310 - 6,888 - 6,888 Accrued Interest Payable 1,383 - 1,383 - 1,383 Fair Value of Financial Instruments Using September 30 2020 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 358,368 $ 358,368 $ - $ - $ 358,368 Investment Securities Available-for-Sale 568,536 95,460 473,076 - 568,536 Investment Securities Held-to-Maturity 69,913 - 28,244 42,811 71,055 Loans & Leases, Net 3,055,133 - - 3,065,624 3,065,624 Accrued Interest Receivable 22,596 - 22,596 - 22,596 Liabilities: Deposits 3,814,777 3,354,528 - 461,754 3,816,282 Subordinated Debentures 10,310 - 6,518 - 6,518 Accrued Interest Payable 1,618 - 1,618 - 1,618 |
Dividends and Basic and Dilut_2
Dividends and Basic and Diluted Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Dividends and Basic and Diluted Earnings Per Common Share [Abstract] | |
Calculation of Basic and Diluted Earnings per Common Share | The following table calculates the basic earnings per common share for the three and nine-month periods ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, ( net income in thousands 2021 2020 2021 2020 Net Income $ 17,502 $ 14,810 $ 50,368 $ 43,241 Weighted Average Number of Common Shares Outstanding 789,646 793,556 789,646 793,539 Basic and Diluted Earnings Per Common Share $ 22.16 $ 18.66 $ 63.79 $ 54.49 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Information Related to Operating Leases | The table below summarizes the information related to our operating leases: (in thousands except for percent and period data) Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Nine Months Ended September 30, 2020 Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flow from Operating Leases $ 536 $ 795 $ 594 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities $ 302 $ - $ - Weighted-Average Remaining Lease Term - Operating Leases, in Years 6.76 7.33 7.29 Weighted-Average Discount Rate - Operating Leases 2.6 % 2.9 % 3.2 % |
Maturity of Remaining Lease Liability | The table below summarizes the maturity of remaining lease liability: (in thousands) September 30, 2021 2021 $ 174 2022 702 2023 714 2024 730 2025 741 2026 and thereafter 1,602 Total Lease Payments 4,663 Less: Interest (377 ) Present Value of Lease Liabilities $ 4,286 |
Significant Accounting Polici_4
Significant Accounting Policies, Investment Securities (Details) | 9 Months Ended |
Sep. 30, 2021Component | |
Investment Securities [Abstract] | |
Number of components into which amount of impairment is split | 2 |
Significant Accounting Polici_5
Significant Accounting Policies, Loans & Leases and Allowance for Credit Losses (Details) | 9 Months Ended |
Sep. 30, 2021ComponentCategoryFactor | |
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 credit losses | Component | 3 |
Number of categories into which risk ratings are grouped | Category | 5 |
Minimum [Member] | |
Loans & Leases [Abstract] | |
Period after which loans are placed on non accrual status | 90 days |
Agricultural Real Estate [Member] | |
Allowance for Credit Losses [Abstract] | |
Number of risk factors on loans | 2 |
Agricultural [Member] | |
Allowance for Credit Losses [Abstract] | |
Number of risk factors on loans | 2 |
Significant Accounting Polici_6
Significant Accounting Policies, Premises and Equipment (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Buildings [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 30 years |
Buildings [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 40 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 3 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 10 years |
Significant Accounting Polici_7
Significant Accounting Policies, Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Penalties and Interest Expense [Abstract] | ||||
Interest | $ 0 | $ 0 | $ 0 | $ 0 |
Penalties | $ 0 | $ 0 | $ 0 | $ 0 |
Significant Accounting Polici_8
Significant Accounting Policies, Basic and Diluted Earnings Per Common Share (Details) | 9 Months Ended |
Sep. 30, 2021shares | |
Basic and Diluted Earnings Per Common Share [Abstract] | |
Common stock equivalent shares (in shares) | 0 |
Significant Accounting Polici_9
Significant Accounting Policies, Goodwill and Other Intangible Assets (Details) - Core Deposit Intangible [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill and Other Intangible Assets [Abstract] | |
Estimated useful life | 10 years |
Future estimated amortization expense for CDI [Abstract] | |
2021 | $ 153 |
2022 | 593 |
2023 | 573 |
2024 | 549 |
2025 | 522 |
Thereafter | 1,165 |
Total | $ 3,555 |
Investment Securities, Securiti
Investment Securities, Securities Available-for-Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||||
Amortized cost | $ 333,994 | $ 789,175 | $ 550,053 | |||
Gross unrealized gains | 4,541 | 18,716 | 18,722 | |||
Gross unrealized losses | 5,384 | 159 | 239 | |||
Fair value | 333,151 | 807,732 | 568,536 | |||
U.S. Treasury Notes [Member] | ||||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||||
Amortized cost | 9,922 | 14,859 | 94,830 | |||
Gross unrealized gains | 228 | 429 | 512 | |||
Gross unrealized losses | 0 | 0 | 0 | |||
Fair value | 10,150 | 15,288 | 95,342 | |||
U.S. Government Agency SBA [Member] | ||||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||||
Amortized cost | 6,892 | 8,252 | 8,530 | |||
Gross unrealized gains | 70 | 1 | 1 | |||
Gross unrealized losses | 43 | 93 | 102 | |||
Fair value | 6,919 | 8,160 | 8,429 | |||
Mortgage-Backed Securities [Member] | ||||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||||
Amortized cost | [1] | 270,667 | [2] | 720,562 | 421,263 | |
Gross unrealized gains | [1] | 4,243 | [2] | 17,359 | 18,050 | |
Gross unrealized losses | [1] | 5,341 | [2] | 48 | 39 | |
Fair value | [1] | 269,569 | [2] | 737,873 | 439,274 | |
Securities Transferred [Abstract] | ||||||
Fair value of securities transferred to held-to-maturity category | $ 316,900 | |||||
Corporate Securities [Member] | ||||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||||
Amortized cost | 45,010 | 25,002 | ||||
Gross unrealized gains | 927 | 159 | ||||
Gross unrealized losses | 18 | 98 | ||||
Fair value | 45,919 | 25,063 | ||||
Other [Member] | ||||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||||
Amortized cost | 46,513 | 492 | 428 | |||
Gross unrealized gains | 0 | 0 | 0 | |||
Gross unrealized losses | 0 | 0 | 0 | |||
Fair value | $ 46,513 | $ 492 | $ 428 | |||
[1] | All Mortgage-Backed securities consist of securities collateralized by residential real estate and were issued by an agency or government-sponsored entity of the U.S. government. | |||||
[2] | During Q1 2021, the Company transferred $316.9 million of AFS securities to HTM. |
Investment Securities, Securi_2
Investment Securities, Securities Held-to-Maturity (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | ||
Amortized cost, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | |||||
Amortized cost | $ 550,618,000 | $ 68,933,000 | $ 69,913,000 | ||
Gross unrealized gains | 816,000 | 1,116,000 | 1,142,000 | ||
Gross unrealized losses | 11,126,000 | 0 | 0 | ||
Fair value | 540,308,000 | 70,049,000 | 71,055,000 | ||
Obligations of States and Political Subdivisions [Member] | |||||
Amortized cost, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | |||||
Amortized cost | 62,936,000 | 68,933,000 | 69,913,000 | ||
Gross unrealized gains | 768,000 | 1,116,000 | 1,142,000 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Fair value | 63,704,000 | $ 70,049,000 | $ 71,055,000 | ||
Mortgage Backed Securities [Member] | |||||
Securities Transferred [Abstract] | |||||
Fair value of securities transferred to held-to-maturity category | $ 316,900,000 | ||||
Unrealized pre-tax loss from securities transferred | $ 2,000 | ||||
Amortized cost, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | |||||
Amortized cost | [1],[2] | 487,682,000 | |||
Gross unrealized gains | [1],[2] | 48,000 | |||
Gross unrealized losses | [1],[2] | 11,126,000 | |||
Fair value | [1],[2] | $ 476,604,000 | |||
[1] | All Mortgage-Backed securities were issued by an agency or government-sponsored entity of the U.S. government. | ||||
[2] | During Q1 2021, the Company transferred $316.9 million of AFS securities to HTM. |
Investment Securities, Contract
Investment Securities, Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Amortized Cost [Abstract] | |||
Within one year | $ 51,503 | ||
After one year through five years | 5,100 | ||
After five years through ten years | 563 | ||
After ten years | 6,161 | ||
Amortized cost, excluding investment securities not due at a single maturity date | 63,327 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 270,667 | ||
Amortized cost | 333,994 | $ 789,175 | $ 550,053 |
Fair Value [Abstract] | |||
Within one year | 51,569 | ||
After one year through five years | 5,262 | ||
After five years through ten years | 566 | ||
After ten years | 6,185 | ||
Fair value, excluding investment securities not due at a single maturity date | 63,582 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 269,569 | ||
Fair value | 333,151 | 807,732 | 568,536 |
Amortized Cost [Abstract] | |||
Within one year | 308 | ||
After one year through five years | 6,969 | ||
After five years through ten years | 19,543 | ||
After ten years | 36,116 | ||
Book value, excluding investment securities not due at a single maturity date | 62,936 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 487,682 | ||
Amortized cost | 550,618 | 68,933 | 69,913 |
Fair Value [Abstract] | |||
Within one year | 308 | ||
After one year through five years | 7,012 | ||
After five years through ten years | 20,254 | ||
After ten years | 36,130 | ||
Fair value, excluding investment securities not due at a single maturity date | 63,704 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 476,604 | ||
Fair value | $ 540,308 | $ 70,049 | $ 71,055 |
Investment Securities, Securi_3
Investment Securities, Securities in Continuous Unrealized Loss Position (Details) | Sep. 30, 2021USD ($)Security | Dec. 31, 2020USD ($)Security | Sep. 30, 2020USD ($)Security |
Investment Securities, Qualitative Disclosure [Abstract] | |||
Number of investment securities held | Security | 590 | ||
Less than 12 months, number of positions | Security | 68 | ||
12 months or more, number of positions | Security | 60 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 172,057,000 | $ 25,924,000 | $ 33,416,000 |
12 months or more, fair value | 2,257,000 | 6,303,000 | 6,004,000 |
Total, fair value | 174,314,000 | 32,227,000 | 39,420,000 |
Less than 12 months, unrealized loss | 5,340,000 | 66,000 | 137,000 |
12 months or more, unrealized loss | 44,000 | 93,000 | 102,000 |
Total, unrealized loss | 5,384,000 | $ 159,000 | $ 239,000 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 468,360,000 | ||
12 months or more, fair value | 0 | ||
Total, fair value | 468,360,000 | ||
Less than 12 months, unrealized loss | 11,126,000 | ||
12 months or more, unrealized loss | 0 | ||
Total, unrealized loss | 11,126,000 | ||
Number of HTM investments with gross unrealized losses | Security | 0 | 0 | |
Mortgage-Backed Securities [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 468,360,000 | ||
12 months or more, fair value | 0 | ||
Total, fair value | 468,360,000 | ||
Less than 12 months, unrealized loss | 11,126,000 | ||
12 months or more, unrealized loss | 0 | ||
Total, unrealized loss | $ 11,126,000 | ||
Obligations of States and Political Subdivisions [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of HTM investments with gross unrealized losses | Security | 0 | 0 | 0 |
U.S. Treasury Notes [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, number of positions | Security | 0 | 0 | 0 |
U.S. Government Agency SBA [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 188,000 | $ 1,741,000 | $ 2,312,000 |
12 months or more, fair value | 2,141,000 | 6,126,000 | 5,810,000 |
Total, fair value | 2,329,000 | 7,867,000 | 8,122,000 |
Less than 12 months, unrealized loss | 1,000 | 3,000 | 4,000 |
12 months or more, unrealized loss | 42,000 | 90,000 | 98,000 |
Total, unrealized loss | $ 43,000 | 93,000 | 102,000 |
Less than 12 months, number of positions | Security | 4 | ||
12 months or more, number of positions | Security | 44 | ||
Mortgage-Backed Securities [Member] | |||
Investment Securities, Qualitative Disclosure [Abstract] | |||
Less than 12 months, number of positions | Security | 64 | ||
12 months or more, number of positions | Security | 16 | ||
Total, unrealized loss | $ 16,500,000 | 48,000 | 39,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 171,869,000 | 20,142,000 | 20,741,000 |
12 months or more, fair value | 116,000 | 177,000 | 194,000 |
Total, fair value | 171,985,000 | 20,319,000 | 20,935,000 |
Less than 12 months, unrealized loss | 5,339,000 | 45,000 | 35,000 |
12 months or more, unrealized loss | 2,000 | 3,000 | 4,000 |
Total, unrealized loss | $ 5,341,000 | 48,000 | 39,000 |
Corporate Securities [Member] | |||
Investment Securities, Qualitative Disclosure [Abstract] | |||
Number of investment securities held | Security | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 4,041,000 | 10,363,000 | |
12 months or more, fair value | 0 | 0 | |
Total, fair value | 4,041,000 | 10,363,000 | |
Less than 12 months, unrealized loss | 18,000 | 98,000 | |
12 months or more, unrealized loss | 0 | 0 | |
Total, unrealized loss | $ 0 | $ 18,000 | $ 98,000 |
Other Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, number of positions | Security | 0 |
Investment Securities, Proceeds
Investment Securities, Proceeds from Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Proceeds from sales and calls of securities [Abstract] | ||||
Gross proceeds | $ 1,450 | $ 50,620 | $ 301,320 | $ 53,620 |
Gross gains | 0 | 0 | 5,570 | 13 |
Gross losses | $ 0 | $ 0 | $ 3,016 | $ 0 |
Investment Securities, Pledged
Investment Securities, Pledged Securities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Investment Securities [Abstract] | |||
Carrying amount of pledged securities | $ 445.2 | $ 439.7 | $ 333.2 |
Federal Home Loan Bank Stock _2
Federal Home Loan Bank Stock and Other Equity Securities, at Cost (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Federal Home Loan Bank Stock and Other Equity Securities, at Cost [Abstract] | |||
FHLB stock and other equity securities | $ 15.5 | $ 12.7 | $ 12.7 |
Loans & Leases (Details)
Loans & Leases (Details) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2021USD ($)Loan | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | ||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | $ 3,151,508 | $ 3,111,533 | $ 3,127,449 | |
Less: Unearned Income | 11,707 | 11,941 | 15,518 | |
Total Loans & Leases | 3,139,801 | 3,099,592 | 3,111,931 | |
Less: Allowance for Credit Losses | 60,303 | 58,862 | 56,798 | |
Loans & Leases, Net | 3,079,498 | 3,040,730 | 3,055,133 | |
Federal Home Loan Bank [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Collateral on borrowing lines | 1,000,000 | |||
Maximum borrowing capacity | 749,500 | |||
Federal Reserve Bank [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Collateral on borrowing lines | 742,400 | |||
Maximum borrowing capacity | 467,800 | |||
Paycheck Protection Program [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | 121,182 | 224,309 | 347,180 | |
Loans funded for the small business customers | $ 494,900 | |||
Paycheck Protection Program [Member] | Minimum [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Number of small business customers | Loan | 2,000 | |||
Commercial Real Estate [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | $ 1,126,230 | 971,326 | 887,999 | |
Total Loans & Leases | 1,114,149 | 958,980 | 871,623 | |
Agricultural Real Estate [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | 656,337 | 643,014 | 639,172 | |
Total Loans & Leases | 656,337 | 643,014 | 639,172 | |
Real Estate Construction [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | 178,451 | 185,741 | 186,623 | |
Total Loans & Leases | 178,451 | 185,741 | 186,623 | |
Residential 1st Mortgages [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | 309,728 | 299,379 | 293,489 | |
Total Loans & Leases | 309,728 | 299,379 | 293,489 | |
Home Equity Lines & Loans [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | 31,664 | 34,239 | 35,875 | |
Total Loans & Leases | 31,664 | 34,239 | 35,875 | |
Agricultural [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | 235,085 | 264,372 | 252,031 | |
Total Loans & Leases | 235,085 | 264,372 | 252,031 | |
Commercial [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | 394,326 | 374,816 | 367,052 | |
Total Loans & Leases | 394,326 | 374,816 | 367,052 | |
Consumer & Other [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | [1] | 129,665 | 235,529 | 359,697 |
Total Loans & Leases | 129,665 | 235,529 | 359,697 | |
Leases [Member] | ||||
Loan & Lease Portfolio [Abstract] | ||||
Gross Loans & Leases | 90,022 | 103,117 | 105,511 | |
Total Loans & Leases | $ 90,396 | $ 103,522 | $ 106,369 | |
[1] | Includes CARES Act Small Business Administration Paycheck Protection Program loans of $121,182, $224,309 and $347,180 as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively. |
Allowance for Credit Losses, Al
Allowance for Credit Losses, Allocation of The Allowance For Credit Losses by Portfolio Segment and By Impairment Methodology (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | $ 60,229,000 | $ 55,058,000 | $ 58,862,000 | $ 55,012,000 | $ 55,012,000 |
Charge-Offs | (17,000) | (25,000) | (33,000) | (487,000) | (1,174,000) |
Recoveries | 91,000 | 65,000 | 224,000 | 273,000 | 524,000 |
Provision | 0 | 1,700,000 | 1,250,000 | 2,000,000 | 4,500,000 |
Ending Balance | 60,303,000 | 56,798,000 | 60,303,000 | 56,798,000 | 58,862,000 |
Ending Balance Individually Evaluated for Impairment | 140,000 | 287,000 | 140,000 | 287,000 | 289,000 |
Ending Balance Collectively Evaluated for Impairment | 60,163,000 | 56,511,000 | 60,163,000 | 56,511,000 | 58,573,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 3,139,801,000 | 3,111,931,000 | 3,139,801,000 | 3,111,931,000 | 3,099,592,000 |
Ending Balance Individually Evaluated for Impairment | 8,475,000 | 9,218,000 | 8,475,000 | 9,218,000 | 9,238,000 |
Ending Balance Collectively Evaluated for Impairment | 3,131,326,000 | 3,102,713,000 | 3,131,326,000 | 3,102,713,000 | 3,090,354,000 |
Commercial Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 28,890,000 | 21,423,000 | 27,679,000 | 11,053,000 | 11,053,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | (11,000) | 2,866,000 | 1,200,000 | 13,236,000 | 16,626,000 |
Ending Balance | 28,879,000 | 24,289,000 | 28,879,000 | 24,289,000 | 27,679,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 28,879,000 | 24,289,000 | 28,879,000 | 24,289,000 | 27,679,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 1,114,149,000 | 871,623,000 | 1,114,149,000 | 871,623,000 | 958,980,000 |
Ending Balance Individually Evaluated for Impairment | 74,000 | 108,000 | 74,000 | 108,000 | 104,000 |
Ending Balance Collectively Evaluated for Impairment | 1,114,075,000 | 871,515,000 | 1,114,075,000 | 871,515,000 | 958,876,000 |
Agricultural Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 9,107,000 | 9,021,000 | 8,633,000 | 15,128,000 | 15,128,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | 320,000 | (229,000) | 794,000 | (6,336,000) | (6,495,000) |
Ending Balance | 9,427,000 | 8,792,000 | 9,427,000 | 8,792,000 | 8,633,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 9,427,000 | 8,792,000 | 9,427,000 | 8,792,000 | 8,633,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 656,337,000 | 639,172,000 | 656,337,000 | 639,172,000 | 643,014,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 5,629,000 | 0 | 5,629,000 | 5,629,000 |
Ending Balance Collectively Evaluated for Impairment | 656,337,000 | 633,543,000 | 656,337,000 | 633,543,000 | 637,385,000 |
Real Estate Construction [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,405,000 | 1,452,000 | 1,643,000 | 1,949,000 | 1,949,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | 28,000 | 116,000 | (210,000) | (381,000) | (306,000) |
Ending Balance | 1,433,000 | 1,568,000 | 1,433,000 | 1,568,000 | 1,643,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 1,433,000 | 1,568,000 | 1,433,000 | 1,568,000 | 1,643,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 178,451,000 | 186,623,000 | 178,451,000 | 186,623,000 | 185,741,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 178,451,000 | 186,623,000 | 178,451,000 | 186,623,000 | 185,741,000 |
Residential 1st Mortgages [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 957,000 | 1,771,000 | 960,000 | 855,000 | 855,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 15,000 | 3,000 | 74,000 | 49,000 | 52,000 |
Provision | (8,000) | (825,000) | (70,000) | 45,000 | 53,000 |
Ending Balance | 964,000 | 949,000 | 964,000 | 949,000 | 960,000 |
Ending Balance Individually Evaluated for Impairment | 88,000 | 118,000 | 88,000 | 118,000 | 117,000 |
Ending Balance Collectively Evaluated for Impairment | 876,000 | 831,000 | 876,000 | 831,000 | 843,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 309,728,000 | 293,489,000 | 309,728,000 | 293,489,000 | 299,379,000 |
Ending Balance Individually Evaluated for Impairment | 1,764,000 | 2,390,000 | 1,764,000 | 2,390,000 | 2,365,000 |
Ending Balance Collectively Evaluated for Impairment | 307,964,000 | 291,099,000 | 307,964,000 | 291,099,000 | 297,014,000 |
Home Equity Lines & Loans [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,899,000 | 2,239,000 | 2,024,000 | 2,675,000 | 2,675,000 |
Charge-Offs | 0 | 0 | 0 | (7,000) | (7,000) |
Recoveries | 6,000 | 31,000 | 17,000 | 65,000 | 78,000 |
Provision | 7,000 | (154,000) | (129,000) | (617,000) | (722,000) |
Ending Balance | 1,912,000 | 2,116,000 | 1,912,000 | 2,116,000 | 2,024,000 |
Ending Balance Individually Evaluated for Impairment | 6,000 | 8,000 | 6,000 | 8,000 | 8,000 |
Ending Balance Collectively Evaluated for Impairment | 1,906,000 | 2,108,000 | 1,906,000 | 2,108,000 | 2,016,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 31,664,000 | 35,875,000 | 31,664,000 | 35,875,000 | 34,239,000 |
Ending Balance Individually Evaluated for Impairment | 112,000 | 164,000 | 112,000 | 164,000 | 158,000 |
Ending Balance Collectively Evaluated for Impairment | 31,552,000 | 35,711,000 | 31,552,000 | 35,711,000 | 34,081,000 |
Agricultural [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 4,552,000 | 4,790,000 | 4,814,000 | 8,076,000 | 8,076,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 24,000 | 24,000 | 29,000 | 54,000 | 81,000 |
Provision | 29,000 | (142,000) | (238,000) | (3,458,000) | (3,343,000) |
Ending Balance | 4,605,000 | 4,672,000 | 4,605,000 | 4,672,000 | 4,814,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 92,000 | 0 | 92,000 | 92,000 |
Ending Balance Collectively Evaluated for Impairment | 4,605,000 | 4,580,000 | 4,605,000 | 4,580,000 | 4,722,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 235,085,000 | 252,031,000 | 235,085,000 | 252,031,000 | 264,372,000 |
Ending Balance Individually Evaluated for Impairment | 6,129,000 | 498,000 | 6,129,000 | 498,000 | 495,000 |
Ending Balance Collectively Evaluated for Impairment | 228,956,000 | 251,533,000 | 228,956,000 | 251,533,000 | 263,877,000 |
Commercial [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 9,920,000 | 10,043,000 | 9,961,000 | 11,466,000 | 11,466,000 |
Charge-Offs | 0 | 0 | 0 | (426,000) | (1,101,000) |
Recoveries | 38,000 | 0 | 83,000 | 80,000 | 280,000 |
Provision | 824,000 | (50,000) | 738,000 | (1,127,000) | (684,000) |
Ending Balance | 10,782,000 | 9,993,000 | 10,782,000 | 9,993,000 | 9,961,000 |
Ending Balance Individually Evaluated for Impairment | 6,000 | 13,000 | 6,000 | 13,000 | 20,000 |
Ending Balance Collectively Evaluated for Impairment | 10,776,000 | 9,980,000 | 10,776,000 | 9,980,000 | 9,941,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 394,326,000 | 367,052,000 | 394,326,000 | 367,052,000 | 374,816,000 |
Ending Balance Individually Evaluated for Impairment | 218,000 | 235,000 | 218,000 | 235,000 | 233,000 |
Ending Balance Collectively Evaluated for Impairment | 394,108,000 | 366,817,000 | 394,108,000 | 366,817,000 | 374,583,000 |
Consumer & Other [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 281,000 | 359,000 | 333,000 | 456,000 | 456,000 |
Charge-Offs | (17,000) | (25,000) | (33,000) | (54,000) | (66,000) |
Recoveries | 8,000 | 7,000 | 21,000 | 25,000 | 33,000 |
Provision | 26,000 | 23,000 | (23,000) | (63,000) | (90,000) |
Ending Balance | 298,000 | 364,000 | 298,000 | 364,000 | 333,000 |
Ending Balance Individually Evaluated for Impairment | 40,000 | 56,000 | 40,000 | 56,000 | 52,000 |
Ending Balance Collectively Evaluated for Impairment | 258,000 | 308,000 | 258,000 | 308,000 | 281,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 129,665,000 | 359,697,000 | 129,665,000 | 359,697,000 | 235,529,000 |
Ending Balance Individually Evaluated for Impairment | 178,000 | 194,000 | 178,000 | 194,000 | 254,000 |
Ending Balance Collectively Evaluated for Impairment | 129,487,000 | 359,503,000 | 129,487,000 | 359,503,000 | 235,275,000 |
Leases [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,639,000 | 2,800,000 | 1,731,000 | 3,162,000 | 3,162,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | (780,000) | 114,000 | (872,000) | (248,000) | (1,431,000) |
Ending Balance | 859,000 | 2,914,000 | 859,000 | 2,914,000 | 1,731,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 859,000 | 2,914,000 | 859,000 | 2,914,000 | 1,731,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 90,396,000 | 106,369,000 | 90,396,000 | 106,369,000 | 103,522,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 90,396,000 | 106,369,000 | 90,396,000 | 106,369,000 | 103,522,000 |
Unallocated [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,579,000 | 1,160,000 | 1,084,000 | 192,000 | 192,000 |
Charge-Offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | (435,000) | (19,000) | 60,000 | 949,000 | 892,000 |
Ending Balance | 1,144,000 | 1,141,000 | 1,144,000 | 1,141,000 | 1,084,000 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 1,144,000 | 1,141,000 | 1,144,000 | 1,141,000 | 1,084,000 |
Loans & Leases [Abstract] | |||||
Ending Balance | 0 | 0 | 0 | 0 | 0 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Restructured Loans [Member] | |||||
Loans & Leases [Abstract] | |||||
Ending Balance Individually Evaluated for Impairment | $ 327,200 | $ 828,500 | $ 327,200 | $ 828,500 | $ 876,000 |
Allowance for Credit Losses, Lo
Allowance for Credit Losses, Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | $ 3,139,801 | $ 3,099,592 | $ 3,111,931 | |||
Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 3,102,315 | [1] | 3,071,556 | [2] | 3,082,975 | [3] |
Watch [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 954,400 | 958,200 | 947,400 | |||
Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 20,671 | 9,405 | 8,080 | |||
Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 16,815 | 18,631 | 20,876 | |||
Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 0 | 0 | 0 | |||
Loss [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 0 | 0 | 0 | |||
Commercial Real Estate [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 1,114,149 | 958,980 | 871,623 | |||
Commercial Real Estate [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 1,098,929 | [1] | 946,621 | [2] | 861,874 | [3] |
Commercial Real Estate [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 7,371 | 7,849 | 5,239 | |||
Commercial Real Estate [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 7,849 | 4,510 | 4,510 | |||
Agricultural Real Estate [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 656,337 | 643,014 | 639,172 | |||
Agricultural Real Estate [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 646,486 | [1] | 631,043 | [2] | 624,859 | [3] |
Agricultural Real Estate [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 3,312 | 400 | 1,525 | |||
Agricultural Real Estate [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 6,539 | 11,571 | 12,788 | |||
Real Estate Construction [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 178,451 | 185,741 | 186,623 | |||
Real Estate Construction [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 178,451 | [1] | 185,741 | [2] | 186,623 | [3] |
Real Estate Construction [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 0 | 0 | 0 | |||
Real Estate Construction [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 0 | 0 | 0 | |||
Residential 1st Mortgages [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 309,728 | 299,379 | 293,489 | |||
Residential 1st Mortgages [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 308,960 | [1] | 298,689 | [2] | 292,792 | [3] |
Residential 1st Mortgages [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 0 | 0 | 0 | |||
Residential 1st Mortgages [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 768 | 690 | 697 | |||
Home Equity Lines & Loans [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 31,664 | 34,239 | 35,875 | |||
Home Equity Lines & Loans [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 31,490 | [1] | 34,058 | [2] | 35,691 | [3] |
Home Equity Lines & Loans [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 0 | 0 | 0 | |||
Home Equity Lines & Loans [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 174 | 181 | 184 | |||
Agricultural [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 235,085 | 264,372 | 252,031 | |||
Agricultural [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 233,493 | [1] | 263,781 | [2] | 251,108 | [3] |
Agricultural [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 1,018 | 96 | 0 | |||
Agricultural [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 574 | 495 | 923 | |||
Commercial [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 394,326 | 374,816 | 367,052 | |||
Commercial [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 384,660 | [1] | 373,038 | [2] | 364,465 | [3] |
Commercial [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 8,970 | 1,060 | 1,316 | |||
Commercial [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 696 | 718 | 1,271 | |||
Consumer & Other [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 129,665 | 235,529 | 359,697 | |||
Consumer & Other [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 129,450 | [1] | 235,063 | [2] | 359,194 | [3] |
Consumer & Other [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 0 | 0 | 0 | |||
Consumer & Other [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 215 | 466 | 503 | |||
Leases [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 90,396 | 103,522 | 106,369 | |||
Leases [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 90,396 | [1] | 103,522 | [2] | 106,369 | [3] |
Leases [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | 0 | 0 | 0 | |||
Leases [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Loans & Leases | $ 0 | $ 0 | $ 0 | |||
[1] | Includes "Watch" loans of $954.4 million. | |||||
[2] | Includes "Watch" loans of $958.2 million. | |||||
[3] | Includes "Watch" loans of $947.4 million. |
Allowance for Credit Losses, Ag
Allowance for Credit Losses, Aging Analysis of Loan & Lease Portfolio Including Unearned Income, Past Due (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | $ 0 | $ 0 | $ 0 |
Nonaccrual | 516,000 | 498,000 | 495,000 |
Total Loans & Leases | 3,139,801,000 | 3,111,931,000 | 3,099,592,000 |
Interest income forgone on nonaccrual loans | 35,700 | 15,530 | 22,000 |
Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 1,126,000 | 1,197,000 | 506,000 |
30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 610,000 | 699,000 | 11,000 |
60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 3,138,675,000 | 3,110,734,000 | 3,099,086,000 |
Commercial Real Estate [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 1,114,149,000 | 871,623,000 | 958,980,000 |
Commercial Real Estate [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 453,000 | 0 | 0 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 453,000 | 0 | 0 |
Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Commercial Real Estate [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 1,113,696,000 | 871,623,000 | 958,980,000 |
Agricultural Real Estate [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 19,000 | 498,000 | 495,000 |
Total Loans & Leases | 656,337,000 | 639,172,000 | 643,014,000 |
Agricultural Real Estate [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 19,000 | 498,000 | 495,000 |
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Agricultural Real Estate [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 656,318,000 | 638,674,000 | 642,519,000 |
Real Estate Construction [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 178,451,000 | 186,623,000 | 185,741,000 |
Real Estate Construction [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 85,000 | 0 |
Real Estate Construction [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 85,000 | 0 |
Real Estate Construction [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Real Estate Construction [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 178,451,000 | 186,538,000 | 185,741,000 |
Residential 1st Mortgages [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 309,728,000 | 293,489,000 | 299,379,000 |
Residential 1st Mortgages [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 102,000 | 0 | 0 |
Residential 1st Mortgages [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 102,000 | 0 | 0 |
Residential 1st Mortgages [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Residential 1st Mortgages [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 309,626,000 | 293,489,000 | 299,379,000 |
Home Equity Lines & Loans [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 31,664,000 | 35,875,000 | 34,239,000 |
Home Equity Lines & Loans [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Home Equity Lines & Loans [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Home Equity Lines & Loans [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Home Equity Lines & Loans [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 31,664,000 | 35,875,000 | 34,239,000 |
Agricultural [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 497,000 | 0 | 0 |
Total Loans & Leases | 235,085,000 | 252,031,000 | 264,372,000 |
Agricultural [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 497,000 | 0 | 0 |
Agricultural [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Agricultural [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Agricultural [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 234,588,000 | 252,031,000 | 264,372,000 |
Commercial [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 394,326,000 | 367,052,000 | 374,816,000 |
Commercial [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 50,000 | 547,000 | 0 |
Commercial [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 50,000 | 547,000 | 0 |
Commercial [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Commercial [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 394,276,000 | 366,505,000 | 374,816,000 |
Consumer & Other [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 129,665,000 | 359,697,000 | 235,529,000 |
Consumer & Other [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 5,000 | 67,000 | 11,000 |
Consumer & Other [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 5,000 | 67,000 | 11,000 |
Consumer & Other [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Consumer & Other [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 129,660,000 | 359,630,000 | 235,518,000 |
Leases [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Loans & Leases | 90,396,000 | 106,369,000 | 103,522,000 |
Leases [Member] | Total Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Leases [Member] | 30-59 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Leases [Member] | 60-89 Days Past Due [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | 0 | 0 | 0 |
Leases [Member] | Current [Member] | |||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | |||
Total Loans & Leases | $ 90,396,000 | $ 106,369,000 | $ 103,522,000 |
Allowance for Credit Losses, Im
Allowance for Credit Losses, Impaired Loans & Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
With no related allowance recorded [Abstract] | |||||
Recorded Investment | $ 6,202 | $ 5,718 | $ 6,202 | $ 5,718 | $ 5,716 |
Unpaid Principal Balance | 6,245 | 5,719 | 6,245 | 5,719 | 5,716 |
Average Recorded Investment | 6,207 | 5,674 | 6,098 | 7,128 | 6,772 |
Interest Income Recognized | 101 | 90 | 372 | 313 | 403 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 1,951 | 2,672 | 1,951 | 2,672 | 2,651 |
Unpaid Principal Balance | 2,179 | 2,949 | 2,179 | 2,949 | 2,929 |
Related Allowance | 124 | 248 | 124 | 248 | 248 |
Average Recorded Investment | 2,040 | 2,603 | 2,217 | 3,203 | 2,603 |
Interest Income Recognized | 24 | 42 | 80 | 139 | 171 |
Total [Abstract] | |||||
Recorded Investment | 8,153 | 8,390 | 8,153 | 8,390 | 8,367 |
Unpaid Principal Balance | 8,424 | 8,668 | 8,424 | 8,668 | 8,645 |
Related Allowance | 124 | 248 | 124 | 248 | 248 |
Average Recorded Investment | 8,247 | 8,277 | 8,315 | 10,331 | 9,375 |
Interest Income Recognized | 125 | 132 | 452 | 452 | 574 |
Commercial Real Estate [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 65 | 84 | 65 | 84 | 84 |
Unpaid Principal Balance | 65 | 84 | 65 | 84 | 84 |
Average Recorded Investment | 73 | 42 | 52 | 991 | 764 |
Interest Income Recognized | 1 | 2 | 2 | 33 | 35 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 42 | 28 | 498 | 21 |
Interest Income Recognized | 0 | 0 | 3 | 1 | 1 |
Total [Abstract] | |||||
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Agricultural Real Estate [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 5,613 | 5,629 | 5,613 | 5,629 | 5,629 |
Unpaid Principal Balance | 5,613 | 5,629 | 5,613 | 5,629 | 5,629 |
Average Recorded Investment | 5,621 | 5,629 | 5,626 | 5,633 | 5,629 |
Interest Income Recognized | 88 | 88 | 324 | 264 | 352 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Related Allowance | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 183 | 137 | ||
Interest Income Recognized | 0 | 0 | 0 | ||
Total [Abstract] | |||||
Related Allowance | 0 | 0 | 0 | ||
Residential 1st Mortgages [Member] | |||||
With an allowance recorded [Abstract] | |||||
Recorded Investment | 1,503 | 1,686 | 1,503 | 1,686 | 1,671 |
Unpaid Principal Balance | 1,719 | 1,909 | 1,719 | 1,909 | 1,895 |
Related Allowance | 75 | 84 | 75 | 84 | 84 |
Average Recorded Investment | 1,585 | 1,694 | 1,638 | 1,625 | 1,652 |
Interest Income Recognized | 16 | 18 | 52 | 58 | 76 |
Total [Abstract] | |||||
Related Allowance | 75 | 84 | 75 | 84 | 84 |
Home Equity Lines & Loans [Member] | |||||
With an allowance recorded [Abstract] | |||||
Recorded Investment | 60 | 65 | 60 | 65 | 64 |
Unpaid Principal Balance | 71 | 76 | 71 | 76 | 75 |
Related Allowance | 3 | 3 | 3 | 3 | 3 |
Average Recorded Investment | 61 | 66 | 62 | 67 | 66 |
Interest Income Recognized | 1 | 1 | 3 | 3 | 4 |
Total [Abstract] | |||||
Related Allowance | 3 | 3 | 3 | 3 | 3 |
Agricultural [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 516 | 5 | 516 | 5 | 3 |
Unpaid Principal Balance | 559 | 6 | 559 | 6 | 3 |
Average Recorded Investment | 504 | 3 | 415 | 1 | 2 |
Interest Income Recognized | 12 | 0 | 46 | 0 | 0 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 0 | 492 | 0 | 492 | 492 |
Unpaid Principal Balance | 0 | 534 | 0 | 534 | 534 |
Related Allowance | 0 | 92 | 0 | 92 | 92 |
Average Recorded Investment | 0 | 483 | 82 | 333 | 410 |
Interest Income Recognized | 0 | 7 | 0 | 52 | 59 |
Total [Abstract] | |||||
Related Allowance | 0 | 92 | 0 | 92 | 92 |
Commercial [Member] | |||||
With no related allowance recorded [Abstract] | |||||
Recorded Investment | 8 | 0 | 8 | 0 | 0 |
Unpaid Principal Balance | 8 | 0 | 8 | 0 | 0 |
Average Recorded Investment | 9 | 0 | 5 | 503 | 377 |
Interest Income Recognized | 0 | 0 | 0 | 16 | 16 |
With an allowance recorded [Abstract] | |||||
Recorded Investment | 210 | 235 | 210 | 235 | 234 |
Unpaid Principal Balance | 210 | 235 | 210 | 235 | 234 |
Related Allowance | 6 | 13 | 6 | 13 | 13 |
Average Recorded Investment | 213 | 123 | 222 | 301 | 123 |
Interest Income Recognized | 4 | 13 | 12 | 15 | 18 |
Total [Abstract] | |||||
Related Allowance | 6 | 13 | 6 | 13 | 13 |
Consumer & Other [Member] | |||||
With an allowance recorded [Abstract] | |||||
Recorded Investment | 178 | 194 | 178 | 194 | 190 |
Unpaid Principal Balance | 179 | 195 | 179 | 195 | 191 |
Related Allowance | 40 | 56 | 40 | 56 | 56 |
Average Recorded Investment | 181 | 195 | 185 | 196 | 194 |
Interest Income Recognized | 3 | 3 | 10 | 10 | 13 |
Total [Abstract] | |||||
Related Allowance | $ 40 | $ 56 | $ 40 | $ 56 | $ 56 |
Allowance for Credit Losses, _2
Allowance for Credit Losses, Loans or Leases by Class Modified as Troubled Debt Restructured Loans (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)Loan | Sep. 30, 2020USD ($)Loan | Sep. 30, 2021USD ($)Loan | Sep. 30, 2020USD ($)Loan | Dec. 31, 2020USD ($)Loan | |
CARES Act [Abstract] | |||||
Loans restructured under the CARES act | $ 278,100,000 | ||||
Formal foreclosure proceedings in process for consumer mortgage loans secured by residential real estate properties | $ 0 | $ 0 | 0 | $ 0 | $ 0 |
Troubled Debt Restructured Loans [Abstract] | |||||
Specific reserves allocated to troubled debt restructured loans & leases | 123,800 | 156,000 | 123,800 | 156,000 | 158,000 |
Troubled debt restructured loans | 8,100,000 | 8,100,000 | |||
Commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 0 | 1 | 0 | 6 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 224,000 | $ 875,000 | $ 875,000 | ||
Post-Modification Outstanding Recorded Investment | $ 224,000 | 875,000 | 875,000 | ||
Increase in allowance for loan losses due to TDR | $ 120,000 | ||||
TDR's charge-offs | $ 7,000 | ||||
Number of loans modified as troubled debt restructurings with subsequent payment defaults | Loan | 0 | 0 | 0 | 0 | 0 |
Threshold period after which loan is considered to be in payment default | 90 days | ||||
Stated Interest Rate Reduction [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Period of modifications | 5 years | 5 years | |||
Extended Maturity [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Period of modifications | 10 years | ||||
Extended Maturity [Member] | Minimum [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Period of modifications | 3 months | ||||
Extended Maturity [Member] | Maximum [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Period of modifications | 10 years | ||||
Performing [Member] | |||||
Troubled Debt Restructured Loans [Abstract] | |||||
Troubled debt restructured loans | $ 7,600,000 | $ 7,900,000 | $ 7,600,000 | $ 7,900,000 | $ 7,900,000 |
Residential 1st Mortgages [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 0 | 2 | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 156,000 | $ 156,000 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 156,000 | $ 156,000 | ||
Agricultural [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 0 | 3 | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 495,000 | $ 495,000 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 495,000 | $ 495,000 | ||
Commercial [Member] | |||||
Loans by class modified as troubled debt restructured loans [Abstract] | |||||
Number of Loans | Loan | 1 | 1 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 224,000 | $ 224,000 | $ 224,000 | ||
Post-Modification Outstanding Recorded Investment | $ 224,000 | $ 224,000 | $ 224,000 |
Fair Value Measurements, Summar
Fair Value Measurements, Summary (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Impaired Loans [Member] | |
Fair Value Measurements [Abstract] | |
Percentage of selling costs | 10.00% |
ORE [Member] | |
Fair Value Measurements [Abstract] | |
Percentage of selling costs | 10.00% |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | $ 333,151 | $ 568,536 | $ 333,151 | $ 568,536 | $ 807,732 | |||
Level 1 to Level 2 transfers | 0 | 0 | 0 | 0 | ||||
Level 2 to Level 1 transfers | 0 | 0 | 0 | 0 | ||||
Transfer into Level 3 | 0 | 0 | 0 | 0 | ||||
Transfer out of Level 3 | 0 | 0 | 0 | 0 | ||||
U.S. Treasury Notes [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 10,150 | 95,342 | 10,150 | 95,342 | 15,288 | |||
U.S. Government Agency SBA [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 6,919 | 8,429 | 6,919 | 8,429 | 8,160 | |||
Mortgage-Backed Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | [1] | 269,569 | [2] | 439,274 | 269,569 | [2] | 439,274 | 737,873 |
Corporate Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 25,063 | 25,063 | 45,919 | |||||
Other [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 46,513 | 428 | 46,513 | 428 | 492 | |||
Recurring [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 333,151 | 568,536 | 333,151 | 568,536 | 807,732 | |||
Recurring [Member] | U.S. Treasury Notes [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 10,150 | 95,342 | 10,150 | 95,342 | 15,288 | |||
Recurring [Member] | U.S. Government Agency SBA [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 6,919 | 8,429 | 6,919 | 8,429 | 8,160 | |||
Recurring [Member] | Mortgage-Backed Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 269,569 | 439,274 | 269,569 | 439,274 | 737,873 | |||
Recurring [Member] | Corporate Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 25,063 | 25,063 | 45,919 | |||||
Recurring [Member] | Other [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 46,513 | 428 | 46,513 | 428 | 492 | |||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 56,353 | 95,460 | 56,353 | 95,460 | 15,470 | |||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Notes [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 10,150 | 95,342 | 10,150 | 95,342 | 15,288 | |||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government Agency SBA [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | |||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage-Backed Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | |||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |||||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 46,203 | 118 | 46,203 | 118 | 182 | |||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 276,798 | 473,076 | 276,798 | 473,076 | 792,262 | |||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | U.S. Treasury Notes [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | |||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | U.S. Government Agency SBA [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 6,919 | 8,429 | 6,919 | 8,429 | 8,160 | |||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Mortgage-Backed Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 269,569 | 439,274 | 269,569 | 439,274 | 737,873 | |||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 25,063 | 25,063 | 45,919 | |||||
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Other [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 310 | 310 | 310 | 310 | 310 | |||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | |||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury Notes [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | |||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Government Agency SBA [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | |||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-Backed Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | 0 | 0 | |||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |||||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||||||||
Assets Measured at Fair Value on Recurring Basis by Fair Value Hierarchy [Abstract] | ||||||||
Investment Securities Available-for-Sale | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1] | All Mortgage-Backed securities consist of securities collateralized by residential real estate and were issued by an agency or government-sponsored entity of the U.S. government. | |||||||
[2] | During Q1 2021, the Company transferred $316.9 million of AFS securities to HTM. |
Fair Value Measurements, Asse_2
Fair Value Measurements, Assets or Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | $ 1,822 | $ 2,396 | $ 2,421 |
Other Real Estate | 873 | 873 | 873 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 2,695 | 3,269 | 3,294 |
Residential 1st Mortgage [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 1,423 | 1,584 | 1,599 |
Home Equity Lines & Loans [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 57 | 61 | 62 |
Agricultural [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 400 | 400 | |
Commercial [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 204 | 213 | 222 |
Consumer [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 138 | 138 | 138 |
Real Estate Construction [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Other Real Estate | 873 | 873 | 873 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate | 0 | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Residential 1st Mortgage [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Home Equity Lines & Loans [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Agricultural [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Consumer [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Construction [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Other Real Estate | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate | 0 | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Residential 1st Mortgage [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Home Equity Lines & Loans [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Agricultural [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | |
Other Observable Inputs (Level 2) [Member] | Commercial [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Consumer [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Real Estate Construction [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Other Real Estate | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 1,822 | 2,396 | 2,421 |
Other Real Estate | 873 | 873 | 873 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 2,695 | 3,269 | 3,294 |
Significant Unobservable Inputs (Level 3) [Member] | Residential 1st Mortgage [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 1,423 | 1,584 | 1,599 |
Significant Unobservable Inputs (Level 3) [Member] | Home Equity Lines & Loans [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 57 | 61 | 62 |
Significant Unobservable Inputs (Level 3) [Member] | Agricultural [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 400 | 400 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 204 | 213 | 222 |
Significant Unobservable Inputs (Level 3) [Member] | Consumer [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Impaired Loans | 138 | 138 | 138 |
Significant Unobservable Inputs (Level 3) [Member] | Real Estate Construction [Member] | |||
Fair Value on Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Other Real Estate | $ 873 | $ 873 | $ 873 |
Fair Value Measurements, Quanti
Fair Value Measurements, Quantitative Information (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) |
Level 3 [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Minimum [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.0068 | 0.0072 | 0.0073 |
Level 3 [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Maximum [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.0402 | 0.0413 | 0.0416 |
Level 3 [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.0254 | 0.0257 | 0.0258 |
Level 3 [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Minimum [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.011 | 0.011 | 0.011 |
Level 3 [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Maximum [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.013 | 0.014 | 0.014 |
Level 3 [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.0120 | 0.0125 | 0.0128 |
Level 3 [Member] | Agricultural [Member] | Income Approach [Member] | Capitalization Rate [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | |
Level 3 [Member] | Agricultural [Member] | Income Approach [Member] | Capitalization Rate [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | |
Level 3 [Member] | Commercial [Member] | Income Approach [Member] | Capitalization Rate [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | 0.10 |
Level 3 [Member] | Commercial [Member] | Income Approach [Member] | Capitalization Rate [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | 0.10 |
Level 3 [Member] | Consumer [Member] | Income Approach [Member] | Capitalization Rate [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | ||
Level 3 [Member] | Consumer [Member] | Income Approach [Member] | Capitalization Rate [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | ||
Level 3 [Member] | Consumer [Member] | Income Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | |
Level 3 [Member] | Consumer [Member] | Income Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans, measurement input | 0.10 | 0.10 | |
Level 3 [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | |||
Quantitative Information [Abstract] | |||
Other real estate, measurement input | 0.10 | 0.10 | 0.10 |
Level 3 [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | Adjustment for Difference Between Comparable Sales [Member] | Weighted Average [Member] | |||
Quantitative Information [Abstract] | |||
Other real estate, measurement input | 0.10 | 0.10 | 0.10 |
Nonrecurring [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | $ 1,822 | $ 2,396 | $ 2,421 |
Other real estate | 873 | 873 | 873 |
Nonrecurring [Member] | Residential 1st Mortgage [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 1,423 | 1,584 | 1,599 |
Nonrecurring [Member] | Home Equity Lines and Loans [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 57 | 61 | 62 |
Nonrecurring [Member] | Agricultural [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 400 | 400 | |
Nonrecurring [Member] | Commercial [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 204 | 213 | 222 |
Nonrecurring [Member] | Consumer [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 138 | 138 | 138 |
Nonrecurring [Member] | Real Estate Construction [Member] | |||
Quantitative Information [Abstract] | |||
Other real estate | 873 | 873 | 873 |
Nonrecurring [Member] | Level 3 [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 1,822 | 2,396 | 2,421 |
Other real estate | 873 | 873 | 873 |
Nonrecurring [Member] | Level 3 [Member] | Residential 1st Mortgage [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 1,423 | 1,584 | 1,599 |
Nonrecurring [Member] | Level 3 [Member] | Home Equity Lines and Loans [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 57 | 61 | 62 |
Nonrecurring [Member] | Level 3 [Member] | Agricultural [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 400 | 400 | |
Nonrecurring [Member] | Level 3 [Member] | Commercial [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 204 | 213 | 222 |
Nonrecurring [Member] | Level 3 [Member] | Consumer [Member] | |||
Quantitative Information [Abstract] | |||
Impaired loans | 138 | 138 | 138 |
Nonrecurring [Member] | Level 3 [Member] | Real Estate Construction [Member] | |||
Quantitative Information [Abstract] | |||
Other real estate | $ 873 | $ 873 | $ 873 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Assets [Abstract] | |||
Investment Securities Available-for-Sale | $ 333,151 | $ 807,732 | $ 568,536 |
Carrying Amount [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 870,763 | 383,837 | 358,368 |
Investment Securities Available-for-Sale | 333,151 | 807,732 | 568,536 |
Investment Securities Held-to-Maturity | 550,618 | 68,933 | 69,913 |
Loans & Leases, Net | 3,079,498 | 3,040,730 | 3,055,133 |
Accrued Interest Receivable | 18,762 | 20,333 | 22,596 |
Liabilities [Abstract] | |||
Deposits | 4,568,394 | 4,060,267 | 3,814,777 |
Subordinated Debentures | 10,310 | 10,310 | 10,310 |
Accrued Interest Payable | 451 | 1,383 | 1,618 |
Estimated Fair Value [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 870,763 | 383,837 | 358,368 |
Investment Securities Available-for-Sale | 333,151 | 807,732 | 568,536 |
Investment Securities Held-to-Maturity | 540,308 | 70,049 | 71,055 |
Loans & Leases, Net | 3,090,187 | 3,045,911 | 3,065,624 |
Accrued Interest Receivable | 18,762 | 20,333 | 22,596 |
Liabilities [Abstract] | |||
Deposits | 4,568,719 | 4,061,240 | 3,816,282 |
Subordinated Debentures | 6,830 | 6,888 | 6,518 |
Accrued Interest Payable | 451 | 1,383 | 1,618 |
Estimated Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 870,763 | 383,837 | 358,368 |
Investment Securities Available-for-Sale | 56,353 | 15,470 | 95,460 |
Investment Securities Held-to-Maturity | 0 | 0 | 0 |
Loans & Leases, Net | 0 | 0 | 0 |
Accrued Interest Receivable | 0 | 0 | 0 |
Liabilities [Abstract] | |||
Deposits | 4,174,561 | 3,638,400 | 3,354,528 |
Subordinated Debentures | 0 | 0 | 0 |
Accrued Interest Payable | 0 | 0 | 0 |
Estimated Fair Value [Member] | Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Investment Securities Available-for-Sale | 276,798 | 792,262 | 473,076 |
Investment Securities Held-to-Maturity | 499,432 | 26,262 | 28,244 |
Loans & Leases, Net | 0 | 0 | 0 |
Accrued Interest Receivable | 18,762 | 20,333 | 22,596 |
Liabilities [Abstract] | |||
Deposits | 0 | 0 | 0 |
Subordinated Debentures | 6,830 | 6,888 | 6,518 |
Accrued Interest Payable | 451 | 1,383 | 1,618 |
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Investment Securities Available-for-Sale | 0 | 0 | 0 |
Investment Securities Held-to-Maturity | 40,876 | 43,787 | 42,811 |
Loans & Leases, Net | 3,090,187 | 3,045,911 | 3,065,624 |
Accrued Interest Receivable | 0 | 0 | 0 |
Liabilities [Abstract] | |||
Deposits | 394,158 | 422,840 | 461,754 |
Subordinated Debentures | 0 | 0 | 0 |
Accrued Interest Payable | $ 0 | $ 0 | $ 0 |
Dividends and Basic and Dilut_3
Dividends and Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | May 13, 2021 | Jul. 01, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Dividends [Abstract] | ||||||
Cash dividends declared per share of common stock (in dollars per share) | $ 7.50 | $ 7.25 | ||||
Basic Earnings per Common Share [Abstract] | ||||||
Net Income | $ 17,502 | $ 14,810 | $ 50,368 | $ 43,241 | ||
Weighted Average Number of Common Shares Outstanding (in shares) | 789,646 | 793,556 | 789,646 | 793,539 | ||
Basic Earnings Per Common Share (in dollars per share) | $ 22.16 | $ 18.66 | $ 63.79 | $ 54.49 | ||
Diluted Earnings Per Common Share (in dollars per share) | $ 22.16 | $ 18.66 | $ 63.79 | $ 54.49 | ||
Mid-Year Cash Dividend Declared in 2021 [Member] | ||||||
Dividends [Abstract] | ||||||
Dividend, declared date | May 13, 2021 | |||||
Cash dividends declared per share of common stock (in dollars per share) | $ 7.50 | |||||
Percentage increase in cash dividend per share | 3.40% | |||||
Dividends payable, date paid | Jul. 1, 2021 | |||||
Dividend, record date | Jun. 11, 2021 | |||||
Mid-Year Cash Dividend Declared in 2020 [Member] | ||||||
Dividends [Abstract] | ||||||
Cash dividends paid per share of common stock (in dollars per share) | $ 7.25 | |||||
Dividends payable, date paid | Jul. 1, 2020 |
Leases, Summary (Details)
Leases, Summary (Details) | 3 Months Ended | |||
Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($)Lease | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | |
Operating Leases [Abstract] | ||||
Lease extension option term | 5 years | |||
Operating lease ROU assets | $ 4,190,000 | $ 4,800,000 | $ 4,470,000 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Interest Receivable and Other Assets | Interest Receivable and Other Assets | ||
Operating lease liability | $ 4,286,000 | $ 4,920,000 | $ 4,550,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Interest Payable and Other Liabilities | Interest Payable and Other Liabilities | ||
Early termination of lease | Lease | 1 | |||
Addition (Reduction) in ROU assets | $ 302,000 | $ (482,000) | ||
Addition (Reduction) in lease liability | $ 302,000 | $ (494,000) | ||
Minimum [Member] | ||||
Operating Leases [Abstract] | ||||
Remaining lease term | 1 year | |||
Lease extension option term | 5 years | |||
Maximum [Member] | ||||
Operating Leases [Abstract] | ||||
Remaining lease term | 10 years | |||
Lease extension option term | 10 years |
Leases, Information Related to
Leases, Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities [Abstract] | |||
Operating Cash Flow from Operating Leases | $ 536 | $ 594 | $ 795 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | $ 302 | $ 0 | $ 0 |
Weighted-Average Remaining Lease Term - Operating Leases | 6 years 9 months 3 days | 7 years 3 months 14 days | 7 years 3 months 29 days |
Weighted-Average Discount Rate - Operating Leases | 2.60% | 3.20% | 2.90% |
Leases, Maturity of Remaining L
Leases, Maturity of Remaining Lease Liability (Details) $ in Thousands | Sep. 30, 2021USD ($)Lease | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) |
Maturity of Remaining Lease Liability [Abstract] | |||
2021 | $ 174 | ||
2022 | 702 | ||
2023 | 714 | ||
2024 | 730 | ||
2025 | 741 | ||
2026 and thereafter | 1,602 | ||
Total Lease Payments | 4,663 | ||
Less: Interest | (377) | ||
Present Value of Lease Liabilities | $ 4,286 | $ 4,920 | $ 4,550 |
Number of operating leases for office space that will expire after current period | Lease | 0 |
Leases, Lessor - Direct Financi
Leases, Lessor - Direct Financing Leases (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Lessor - Direct Financing Leases [Abstract] | |||
Net investment in direct financing leases | $ 90.4 | $ 103.5 | $ 106.4 |
Minimum [Member] | |||
Lessor - Direct Financing Leases [Abstract] | |||
Term of direct financing leases | 3 years | ||
Maximum [Member] | |||
Lessor - Direct Financing Leases [Abstract] | |||
Term of direct financing leases | 10 years |