Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
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(g) Security | Common Stock, $0.01 Par Value Per Share | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 605,182,616 | ||
Entity Common Stock, Shares Outstanding | 785,146 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Moss Adams LLP | ||
Auditor Location | San Francisco, California | ||
Auditor Firm ID | 659 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 52,499 | $ 66,327 |
Interest bearing deposits with banks | 662,961 | 317,510 |
Total cash and cash equivalents | 715,460 | 383,837 |
Securities available for sale, at fair value | 270,454 | 807,732 |
Securities held to maturity, at amortized cost | 737,052 | 68,933 |
Total investment securities | 1,007,506 | 876,665 |
Non-marketable securities | 15,549 | 12,693 |
Loans and leases held for investment | 3,237,177 | 3,099,592 |
Allowance for credit losses | (61,007) | (58,862) |
Loans held for investment, net | 3,176,170 | 3,040,730 |
Bank-owned life insurance | 71,411 | 69,235 |
Premises and equipment, net | 47,730 | 50,147 |
Deferred income tax assets, net | 25,542 | 17,093 |
Accrued interest receivable | 18,098 | 20,333 |
Goodwill | 11,183 | 11,183 |
Other intangibles | 3,402 | 4,013 |
Other real estate owned | 873 | 873 |
Other assets | 84,796 | 63,651 |
TOTAL ASSETS | 5,177,720 | 4,550,453 |
Deposits: | ||
Noninterest bearing | 1,750,330 | 1,475,425 |
Interest bearing: | ||
Demand | 1,097,337 | 902,487 |
Savings and money market | 1,400,000 | 1,260,487 |
Certificate of deposits | 392,485 | 421,868 |
Total interest bearing | 2,889,822 | 2,584,842 |
Total deposits | 4,640,152 | 4,060,267 |
Subordinated debentures | 10,310 | 10,310 |
Other liabilities | 64,122 | 56,211 |
TOTAL LIABILITIES | 4,714,584 | 4,126,788 |
SHAREHOLDERS' EQUITY | ||
Preferred shares, no par value, 1,000,000 shares authorized and, none issued or outstanding | 0 | 0 |
Common shares, $0.01 par value, 7,500,000 authorized, 789,646 issued and outstanding at December 31, 2021 and 2020, respectively | 8 | 8 |
Additional paid in capital | 77,516 | 77,516 |
Retained earnings | 387,331 | 333,070 |
Accumulated other comprehensive (loss) / income | (1,719) | 13,071 |
TOTAL SHAREHOLDERS' EQUITY | 463,136 | 423,665 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,177,720 | $ 4,550,453 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common Stock, shares issued (in shares) | 789,646 | 789,646 |
Common Stock, shares outstanding (in shares) | 789,646 | 789,646 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income | |||
Interest and fees on loans and leases | $ 147,208 | $ 143,383 | $ 137,237 |
Interest and dividends on investments | 17,158 | 14,704 | 12,476 |
Interest on deposits with others | 902 | 1,207 | 4,909 |
Total interest income | 165,268 | 159,294 | 154,622 |
Interest expense | |||
Deposits | 4,017 | 9,113 | 12,640 |
Borrowed funds | 0 | 0 | 0 |
Subordinated debentures | 315 | 378 | 554 |
Total interest expense | 4,332 | 9,491 | 13,194 |
Net interest income | 160,936 | 149,803 | 141,428 |
Provision for credit losses | 1,910 | 4,500 | 200 |
Net interest income after provision for credit losses | 159,026 | 145,303 | 141,228 |
Noninterest income | |||
Card processing | 6,959 | 5,536 | 5,120 |
Service charges on deposit accounts | 2,972 | 2,637 | 3,673 |
Increase in cash surrender value of BOLI | 2,175 | 2,088 | 2,031 |
Gain on sale of investment securities | 2,554 | 40 | 1 |
Net gain on deferred compensation investments | 2,614 | 1,777 | 2,625 |
Other | 3,782 | 2,976 | 2,877 |
Total noninterest income | 21,056 | 15,054 | 16,327 |
Noninterest expense | |||
Salaries and employee benefits | 63,860 | 56,950 | 55,250 |
Net gain on deferred compensation benefits | 2,614 | 1,777 | 2,625 |
Occupancy | 4,675 | 4,640 | 4,295 |
Data Processing | 4,967 | 4,994 | 4,921 |
FDIC insurance | 1,237 | 517 | 624 |
Marketing | 1,097 | 922 | 1,254 |
Legal | 140 | 128 | 2,347 |
Other | 13,171 | 12,478 | 10,926 |
Total noninterest expense | 91,761 | 82,406 | 82,242 |
INCOME BEFORE INCOME TAXES | 88,321 | 77,951 | 75,313 |
Income tax expense | 21,985 | 19,217 | 19,277 |
NET INCOME | $ 66,336 | $ 58,734 | $ 56,036 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 84.01 | $ 74.03 | $ 71.18 |
Diluted (in dollars per share) | $ 84.01 | $ 74.03 | $ 71.18 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income | $ 66,336 | $ 58,734 | $ 56,036 |
Other comprehensive income | |||
Unrealized holding (losses)/gains on securities available for sale | (17,986) | 13,905 | 8,936 |
Reclassification adjustment for (gains)/losses on available for sale securities | (2,554) | (40) | (1) |
Amortization of unrealized loss on securities transferred to held to maturity | (457) | 0 | 0 |
Net unrealized holding (losses)/gains on securities available for sale | (20,997) | 13,865 | 8,935 |
Income tax income/(expense) | 6,207 | (4,099) | (2,642) |
Other comprehensive (loss)/income, net of tax | (14,790) | 9,766 | 6,293 |
Total comprehensive income | $ 51,546 | $ 68,500 | $ 62,329 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Shares [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] | Total |
Balance at Dec. 31, 2018 | $ 8 | $ 72,974 | $ 241,221 | $ (2,988) | $ 311,215 |
Balance (in shares) at Dec. 31, 2018 | 783,721 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 56,036 | 0 | 56,036 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 6,293 | 6,293 |
Cash dividends declared | 0 | 0 | (11,221) | 0 | (11,221) |
Issuance of common stock | $ 0 | 6,973 | 0 | 0 | 6,973 |
Issuance of common stock (in shares) | 9,312 | ||||
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 | 0 | 58,734 | 0 | 58,734 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 9,766 | 9,766 |
Cash dividends declared | 0 | 0 | (11,700) | 0 | (11,700) |
Issuance of common stock | $ 0 | 403 | 0 | 0 | 403 |
Issuance of common stock (in shares) | 523 | ||||
Repurchase of common stock | $ 0 | (2,834) | 0 | 0 | (2,834) |
Repurchase of common stock (in shares) | (3,910) | ||||
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 | 0 | 66,336 | 0 | $ 66,336 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (14,790) | (14,790) |
Cash dividends declared | 0 | 0 | (12,075) | 0 | (12,075) |
Balance at Dec. 31, 2021 | $ 8 | $ 77,516 | $ 387,331 | $ (1,719) | $ 463,136 |
Balance (in shares) at Dec. 31, 2021 | 789,646 | 789,646 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash dividends declared (in dollars per share) | $ 15.30 | $ 14.75 | $ 14.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 66,336 | $ 58,734 | $ 56,036 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 1,910 | 4,500 | 200 |
Depreciation and amortization | 2,632 | 2,769 | 2,756 |
Net amortization of securities premiums and discounts | 1,446 | 1,159 | 510 |
Increase in cash surrender value of BOLI | (2,176) | (2,087) | (2,031) |
Decrease/(increase) in deferred income taxes, net | (880) | (1,962) | (3,254) |
(Gains)/losses on sale of securities available for sale | (2,554) | (40) | (1) |
Net changes in: | |||
Other assets | (12,432) | (818) | 21,659 |
Other liabilities | 5,681 | (4,136) | 4,983 |
Net cash provided by operating activities | 59,963 | 58,119 | 80,858 |
Cash flows from investing activities: | |||
Net change in loans held for investment | (137,216) | (427,049) | (102,193) |
Purchase of available for sale securities | (257,231) | (670,550) | (652,280) |
Purchase of held to maturity securities | (395,176) | (22,020) | (16,376) |
Purchase of non-marketable securities | (2,856) | 0 | 0 |
Maturities/sales of available for sale securities | 458,855 | 383,257 | 644,244 |
Maturities of held to maturity securities | 43,287 | 13,299 | 10,871 |
Purchase of premises and equipment | (2,069) | (7,709) | (15,537) |
Purchase of other investments | (8,192) | (6,063) | (4,400) |
Redemption of other investments | 2,752 | 0 | 0 |
Proceeds from sale of assets | 1,696 | 81 | 41 |
Net cash used in investing activities | (296,150) | (736,754) | (135,630) |
Cash flows from financing activities: | |||
Net increase in deposits | 579,885 | 782,248 | 215,187 |
Cash dividends paid | (12,075) | (11,700) | (11,221) |
Net cash used in share repurchase program | 0 | (2,834) | 0 |
Net provided by financing activities | 567,810 | 767,714 | 203,966 |
Net change in cash and cash equivalents | 331,623 | 89,079 | 149,194 |
Cash and cash equivalents, beginning of year | 383,837 | 294,758 | 145,564 |
Cash and cash equivalents, end of year | 715,460 | 383,837 | 294,758 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 4,369 | 10,903 | 11,755 |
Income taxes paid | 29,941 | 9,581 | 7,342 |
Issuance of common stock | 0 | 403 | 6,973 |
Supplemental disclosures of non-cash transactions: | |||
Investment securities available for sale transferred to held to maturity | 316,925 | 0 | 0 |
Unrealized (losses)/gains on securities available for sale | 20,540 | (13,865) | 8,935 |
Lease liabilities from obtaining right-of-use assets | $ 295 | $ 0 | $ 5,645 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1—Summary of Significant Accounting Policies Nature of Operations and basis of consolidation 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. Through its network of 29 banking offices and 3 ATMs, F&M Bank emphasizes personalized service along with a broad range of banking services to businesses and individuals located in the service areas of its offices. Although the Company focuses on marketing its services to small and medium-sized businesses, a broad range of retail banking services are also made available to the local consumer market. F&M Bank branches are located through the mid Central Valley of California, including Sacramento, San Joaquin, Solano, Stanislaus and Merced counties and the east region of the San Francisco Bay Area including Napa and Contra Costa counties. F&M Bank provides a broad complement of lending products, including commercial, commercial real estate, real estate construction, agribusiness, consumer, credit card, residential real estate loans, and equipment leases. Commercial products include term loans, leases, lines of credit and other working capital financing and letters of credit. Financing products for individuals include automobile financing, lines of credit, residential real estate, home improvement and home equity lines of credit. F&M Bank also offers a wide range of deposit instruments. These include checking, savings, money market, time certificates of deposit, individual retirement accounts and online banking services for both business and personal accounts. F&M Bank offers a wide range of specialized services designed for the needs of its commercial accounts. These services include a credit card program for merchants, lockbox and other collection services, account reconciliation, investment sweep, on-line account access, and electronic funds transfers by way of domestic and international wire and automated clearinghouse. F&M Bank makes investment products available to customers, including mutual funds and annuities. These investment products are offered through a The consolidated financial statements of the Company include the accounts of FMCB together with the Bank. All intercompany transactions and balances have been eliminated. Use of estimates the determination of the fair value of certain financial instruments, and deferred income tax assets. Reclassifications Cash and cash equivalents — Cash and cash equivalents consist of cash on hand, amounts due from banks, interest bearing deposits, and federal funds sold, all of which have original maturities of three months or less. The Company places its cash with high credit quality institutions. The amounts on deposit fluctuate and, at times, exceed the insured limit by the FDIC, which potentially subjects the Company to credit risk. For these instruments, the carrying amount is a reasonable estimate of fair value. Investment securities — Investment securities are classified as held to maturity (“HTM”) when the Company has the positive intent and ability to hold the securities to maturity. Investment securities are classified as available for sale (“AFS”) when the Company has the intent of holding the security for an indefinite period of time, but not necessarily to maturity. The Company determines the appropriate classification at the time of purchase, and periodically thereafter. Investment securities classified at HTM are carried at amortized cost. Investment securities classified at AFS are reported at fair value. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Debt securities classified as held to maturity are carried at cost. Debt securities classified as available for sale are measured at fair value. Unrealized holding gains and losses on debt securities classified as available for sale are excluded from earnings and are reported net of tax as accumulated other comprehensive income (AOCI), a component of shareholders’ equity, until realized. When AFS securities, specifically identified, are sold, the unrealized gain or loss is reclassified from AOCI to non-interest income. When the estimated fair value of a security is lower than the book value, a security is considered impaired and the Company evaluates it for other-than-temporary impairment (“OTTI”). If there is intent to sell the security, or if the Company will be required to sell the security, or if the Company believes it will not recover the entire cost basis of the security, the security is other-than-temporarily impaired and impairment is recognized. The amount of impairment resulting from credit loss is recognized in earnings and impairment related to all other factors, such as general market conditions, is recognized in AOCI. Management considers a number of factors in its analysis of whether a decline in a security’s estimated fair value is OTTI. Certain factors considered include, but are not limited to: (a) the length of time and the extent to which the security has been in an unrealized loss position, (b) changes in the financial condition of the issuer, (c) the payment structure of debt securities, (d) adverse changes in ratings issued by rating agencies, (e) and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Interest income is recognized based on the coupon rate, and is increased by the accretion of discounts earned or decreased by the amortization of premiums paid. The amortization of premiums or the accretion of discounts are recognized in interest income using the effective interest method over the period of maturity. Non-marketable equity securities — Loans and leases held for investment — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on acquired loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the effective interest method. Loans are placed on non-accrual status when they become 90 days or more past due or at such earlier time as management determines timely recognition of interest to be in doubt. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions, collection efforts, and the borrower’s financial condition, that the borrower will be unable to make payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received, or payment is considered certain. Loans may be returned to accrual status when all delinquent interest and principal amounts contractually due are brought current and future payments are reasonably assured. Impaired loan and leases Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Restructured loan and leases 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 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. The CARES Act and H.R. 133 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 to account for the effects of COVID-19. In March 2020, 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-19 to borrowers who were current prior to any relief. Under this guidance, six months is provided as an example of short-term, and current is defined as less than 30 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 nonaccrual during the term of the modification. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act, H.R. 133 and the impact of COVID-19 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 loan & lease portfolio as of the balance sheet date. The allowance is established through a provision for credit losses, which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan & lease growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of three primary components: specific reserves related to impaired loans and leases; general reserves for inherent losses related to loans and leases that are not impaired; and an unallocated component that takes into account the imprecision in estimating and allocating allowance balances associated with macro factors. The determination of the general reserve for loans and leases that are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, qualitative factors that include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan & lease portfolio, and probable losses inherent in the portfolio taken as a whole. The Company maintains a separate allowance for each portfolio segment (loan & lease type). These portfolio segments include: (1) commercial real estate; (2) agricultural real estate; (3) real estate construction (including land and development loans); (4) residential 1st mortgages; (5) home equity lines and loans; (6) agricultural; (7) commercial; (8) consumer and other; and (9) equipment leases. The allowance for credit losses attributable to each portfolio segment, which includes both individually evaluated impaired loans and leases and loans and leases that are collectively evaluated for impairment, is combined to determine the Company’s overall allowance, which is included on the consolidated balance sheet. The Company assigns a risk rating to all loans and leases and periodically performs detailed reviews of all such loans and leases over a certain threshold to identify credit risks and assess overall collectability. For smaller balance loans and 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 and 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 Special mention Substandard 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 assessment of the following for each portfolio segment: (1) inherent credit risk; (2) historical losses; and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below: Commercial real estate – Commercial real estate mortgage loans are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties affect 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 affect the credit quality of these loans, as property values determine the economic viability of construction projects. Commercial 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. Commercial 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 with qualified, independent appraisers that establish the residual values the Company uses in structuring a lease. Residential 1st mortgages and home equity lines and loans Consumer & other At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s and Bank’s regulators, including the Federal Reserve Board (“FRB”), the California Department of Financial Protection and Innovation (“DFPI”) and the Federal Deposit Insurance Corporation (“FDIC”), as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations. Premises and equipment — Land is carried at cost. Premises and equipment are carried at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is computed using the straight-line method based on the estimated useful lives of the related assets below: Building and building improvements 30 to 40 years Leasehold improvements term of lease Furniture and equipment 3 to 7 years Computers, software and equipment 3 to 7 years Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Bank-owned life insurance (“BOLI”) Goodwill — Goodwill represents the excess of the purchase considerations paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination and is not amortized but is reviewed annually, as of December 31, or more frequently as current circumstances and conditions warrant, for impairment. An assessment of qualitative factors is completed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative analysis concludes that further analysis is required, then a quantitative impairment test would be completed. The quantitative goodwill impairment compares the reporting unit’s estimated fair values, including goodwill, to its carrying amount. If the carrying amount exceeds its reporting unit’s fair value, then an impairment loss would be recognized as a charge to earnings but is limited by the amount of goodwill allocated to that reporting unit. Other intangible assets — Other intangible assets consist primarily of core deposit intangibles (“CDI”), which are amounts recorded in business combinations or deposit purchase transactions related to the value of transaction-related deposits and the value of the client relationships associated with the deposits. Core deposit intangibles are amortized over the estimated useful life of such deposits. These assets Transfers of financial assets — Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Right of use lease asset & lease liability 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 12 months. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. 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 property owners 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 one 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. Off-balance sheet credit related financial instruments — In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Allowance for credit losses - unfunded loan commitments — An allowance for credit losses - unfunded loan commitments is maintained at a level that, in the opinion of management, is adequate to absorb current expected credit losses associated with the contractual life of the Banks’ commitments to lend funds under existing agreements such as letters or lines of credit. The Banks use a methodology for determining the allowance for credit losses - unfunded loan commitments that applies the same segmentation and loss rate to each pool as the funded exposure adjusted for probability of funding. Draws on unfunded loan commitments that are considered uncollectible at the time funds are advanced are charged to the allowance for credit losses on off-balance sheet exposures. Provisions for credit losses - unfunded loan commitments are recognized in non-interest expense and added to the allowance for credit losses - unfunded loan commitments, which is included in other liabilities in the consolidated balance sheets. Revenue from contracts with customers — The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, 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 606. 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 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Income taxes Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial positions, result of operations, or cash flows. 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 no common stock equivalent shares. Therefore, there is no difference between presentation of diluted and basic earnings per common share. 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 and 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. 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. Loss contingencies — Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the consolidated financial statements. Advertising costs — Advertising costs are expensed when incurred and totaled $1.1 million in 2021, $0.9 million in 2020, and $1.3 million in 2019. Impact of recent authoritative accounting guidance — The Accounting Standards Codification™ (“ASC”) is the FASB officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Periodically, the FASB will issue Accounting Standard updates (“ASU”) to its ASC. Rules and interpretive releases of the SEC under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. In June 2016, FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial asset not excluded from the scope that have the contractual right to receive cash. The ASU replaced the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This ASU broadens the information that an organization must use to develop its expected credit loss estimate for assets measured either collectively or individually. The new guidance had been effective on January 1, 2020. However, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and H.R. 133, resulted in federal banking regulators issuing an interim final rule allowing banks the option of delaying the implementation of CECL until January 1, 2022. 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 two years. The Company elected to delay CECL adoption, but continued to run its CECL model quarterly to accumulate data for the ultimate implementation. The Company adopted this ASU effective January 1, 2022. The Company formed an internal committee to oversee the project and engaged a third-party software vendor in the development of its model. The Company developed a reasonable and supportable forecast based upon economic forecast scenarios and incorporated the reasonable and supportable forecast into the models. The Company also developed a qualitative factor methodology and incorporated the qualitative factors into the models. The Company expects greater volatility in its earnings after adoption due to the nature and time horizon used to calculate CECL, the mode sensitivity to changes in economic forecasts, and other factors. Lastly, the Company expects a lack of comparability with financial performance to its peers as it adopts this ASU, due to delayed adoption for some public companies and the varying methodologies utilized by its peers. The Company is in the process of finalizing its review of the model results related to the adoption of this ASU. Based on our most recently determined model results, we expect the combined adjustment to our Allowance for Credit Loss and Reserve for Unfunded Loan Commitments could be within (5.00%) to 5.00% upon the adoption. Based on the credit quality of debt securities held-to-maturity, the allowance for credit losses recorded at adoption on this portfolio is expected to be nominal. In addition, the current accounting p |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | Note 2—Risks and Uncertainties The COVID-19 pandemic has affected the economy and businesses throughout the U.S., in California and in the markets served by the Company. 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 the COVID-19 pandemic. Our staffing levels have remained stable during the COVID-19 pandemic. Through the CARES Act and H.R. 133, 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 we expect the effects of COVID-19 could have an adverse future impact on our business, financial condition and results of operations, we are unable to predict the full extent or nature of these impacts at the current time. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investment Securities [Abstract] | |
Investment Securities | Note 3 — The amortized cost, fair values, and unrealized gains and losses of the securities available-for-sale Available-for-Sale Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2021 U.S. Treasury notes $ 9,938 $ 151 $ - $ 10,089 U.S. Government-sponsored securities 6,351 62 39 6,374 Mortgage-backed securities (1) 253,300 3,200 5,380 251,120 Collateralized Mortgage Obligations 2,412 24 - 2,436 Other 435 - - 435 Total available-for-sale securities $ 272,436 $ 3,437 $ 5,419 $ 270,454 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. Available-for-Sale Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2020 U.S. Treasury notes $ 14,859 $ 429 $ - $ 15,288 U.S. Government-sponsored securities 8,252 1 93 8,160 Mortgage-backed securities (1) 715,523 17,245 48 732,720 Collateralized Mortgage Obligations 5,039 114 - 5,153 Corporate securities 45,010 927 18 45,919 Other 492 - - 492 Total available-for-sale securities $ 789,175 $ 18,716 $ 159 $ 807,732 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity Held-to-Maturity Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2021 Municipal securities $ 66,496 $ 701 $ - $ 67,197 Mortgage-backed securities (1) 596,775 45 11,764 585,056 Collateralized Mortgage Obligations 73,781 36 229 73,588 Total held-to-maturity securities $ 737,052 $ 782 $ 11,993 $ 725,841 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. Held-to-Maturity Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2020 Municipal securities $ 68,933 $ 1,116 $ - $ 70,049 Total held-to-maturity securities $ 68,933 $ 1,116 $ - $ 70,049 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 following tables show the gross unrealized losses for available-for-sale securities that are less than 12 months and 12 months or more: Available-for-Sale Securities December 31, 2021 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of December 31, 2021 U.S. Government-sponsored securities $ 183 $ - $ 2,007 $ 39 $ 2,190 $ 39 Mortgage-backed securities (1) 61,469 1,192 104,489 4,188 165,958 5,380 Total available-for-sale securities $ 61,652 $ 1,192 $ 106,496 $ 4,227 $ 168,148 $ 5,419 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. Available-for-Sale Securities December 31, 2020 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized As of December 31, 2020 U.S. Government-sponsored securities $ 1,741 $ 3 $ 6,126 $ 90 $ 7,867 $ 93 Mortgage-backed securities (1) 20,142 45 177 3 20,319 48 Corporate securities 4,041 18 - - 4,041 18 Total available-for-sale securities $ 25,924 $ 66 $ 6,303 $ 93 $ 32,227 $ 159 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. The following tables show the gross unrealized losses for held-to-maturity securities that are less than 12 months and 12 months or more: Held-to-Maturity Securities December 31, 2021 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of December 31, 2021 Mortgage-backed securities (1) $ 570,119 $ 11,764 $ - $ - $ 570,119 $ 11,764 Collateralized Mortgage Obligations 58,977 229 - - 58,977 229 Total held-to-maturity securities $ 629,096 $ 11,993 $ - $ - $ 629,096 $ 11,993 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. There were no HTM investments with gross unrealized losses at December 31, 2020. As of December 31, 2021, the Company held 654 investment securities of which 82 were in an unrealized loss position for less than twelve months and 71 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. The Company does not intend to sell the securities and believes it is able to more likely than not collect all amounts due according to the contractual terms of the underlying investment securities. Management believes its debt securities are not OTTI. Proceeds from sales and calls of these securities were as follows: (Dollars in thousands) Gross Proceeds Gross Gains Gross Losses 2021 $ 301,320 $ 5,570 $ 3,016 2020 $ 5,080 $ 40 $ - 2019 $ 5,300 $ 1 $ - The amortized cost and estimated fair values of investment securities at December 31, 2021 by contractual maturity are shown in the following tables: Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Securities maturing in: One year or less $ 5,430 $ 5,465 $ 308 $ 308 After one year through five years 5,094 5,209 8,487 8,528 After five years through ten years 510 512 18,433 19,072 After ten years 5,690 5,711 39,268 39,288 $ 16,724 $ 16,897 $ 66,496 $ 67,196 Securities not due at a single maturity date: Mortgage-backed securities 253,300 251,120 596,775 585,056 Collateralized mortgage obligations 2,412 2,437 73,781 73,589 Total $ 272,436 $ 270,454 $ 737,052 $ 725,841 Expected maturities of mortgage-backed and CMO securities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Pledged Securities As of December 31, 2021, securities carried at $426 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. |
Federal Home Loan Bank Stock an
Federal Home Loan Bank Stock and Other Non-Marketable Securities | 12 Months Ended |
Dec. 31, 2021 | |
Federal Home Loan Bank Stock and Other Non-Marketable Securities [Abstract] | |
Federal Home Loan Bank Stock and Other Non-Marketable Securities | Note 4—Federal Home Loan Bank Stock and Other Non-Marketable Securities 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 Non-Marketable Securities on the Company’s Consolidated Balance Sheets and totaled $15.5 million and $12.9 at December 31, 2021 and 2020, respectively. |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Leases [Abstract] | |
Loans and Leases | Note 5—Loans and Leases Loans and leases as of the dates indicated consisted of the following: December 31, (Dollars in thousands) 2021 2020 Loans and leases held-for-investment, net Real estate: Commercial real estate $ 1,167,516 $ 971,326 Agricultural 672,830 643,014 Residential and home equity 350,581 333,618 Construction 177,163 185,741 Total real estate 2,368,090 2,133,699 Commercial & Industrial 427,799 374,816 Agricultural 276,684 264,372 Commercial leases 96,971 103,117 Consumer and other (1) 78,367 235,529 Total gross loans and leases 3,247,911 3,111,533 Unearned income (10,734 ) (11,941 ) Total net loans and leases 3,237,177 3,099,592 Allowance for credit losses (61,007 ) (58,862 ) Total loans and leases held-for-investment, net $ 3,176,170 $ 3,040,730 (1) Includes SBA PPP loans. 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 2 to 5 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 $494.39 million of loans for 2,680 small business customers. As of December 2021 and 2020, PPP loans outstanding were $70.8 million and $224.3 million, respectively. At December 31, 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 $1.1 billion and $767 million, respectively. The borrowing capacity on these loans was $837.1 million from FHLB and $480.4 million from the FRB. The following tables show an aging analysis of the loan & lease portfolio, including unearned income, by the time past due at December 31, 2021 and 2020: December 31, 2021 (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-accrual Total Past Due Total Loans and leases held-for-investment, net Real estate: Commercial real estate $ 1,156,879 $ 459 $ - $ - $ 459 $ 1,157,338 Agricultural 672,812 - - 18 18 672,830 Residential and home equity 350,492 89 - - 89 350,581 Construction 177,163 - - - - 177,163 Total real estate 2,357,346 548 - 18 566 2,357,912 Commercial & Industrial 427,799 - - - - 427,799 Agricultural 276,186 - - 498 498 276,684 Commercial leases 96,415 - - - - 96,415 Consumer and other 78,363 4 - - 4 78,367 Total loans and leases, net $ 3,236,109 $ 552 $ - $ 516 $ 1,068 $ 3,237,177 December 31, 2020 (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-accrual Total Past Due Total Loans and leases held-for-investment, net Real estate: Commercial real estate $ 958,980 $ - $ - $ - $ - $ 958,980 Agricultural 643,014 - - - - 643,014 Residential and home equity 333,618 - - - - 333,618 Construction 185,741 - - - - 185,741 Total real estate 2,121,353 - - - - 2,121,353 Commercial & Industrial 374,816 - - - - 374,816 Agricultural 263,877 - - 495 495 264,372 Commercial leases 103,522 - - - - 103,522 Consumer and other 235,518 11 - - 11 235,529 Total loans and leases, net $ 3,099,086 $ 11 $ - $ 495 $ 506 $ 3,099,592 Non-accrual loans are summarized as follows: December 31, (Dollars in thousands) 2021 2020 Non-accrual loans and leases: Non-accrual loans and leases, not TDRs Real estate: Commercial real estate $ - $ - Agricultural 18 - Residential and home equity - - Construction - - Total real estate 18 - Commercial & Industrial - - Agricultural - - Commercial leases - - Consumer and other - - Subtotal 18 - Non-accrual loans and leases, are TDRs Real estate: Commercial real estate $ - $ - Agricultural - - Residential and home equity - - Construction - - Total real estate - - Commercial & Industrial - - Agricultural 498 495 Commercial leases - - Consumer and other - - Subtotal 498 495 Total non-accrual loans and leases $ 516 $ 495 Not included in the table below, but relevant to a discussion of asset quality are loans that were granted some form of relief because of COVID-19 and are not considered TDRs because of the CARES Act and H.R. 133. Since April 2020, we have restructured $278.1 million of loans under the CARES Act and H.R. 133 guidelines. As of December 31, 2021, all loans that were restructured as part of the CARES Act and H.R. 133 have returned to the contractual terms and conditions of the loans, without exception. The following table lists total troubled debt restructured loans that the Company is either accruing or not accruing interest by loan category: December 31, (Dollars in thousands) 2021 2020 Troubled debt restructured loans and leases: Accruing TDR loans and leases Real estate: Commercial real estate $ 41 $ 84 Agricultural - 5,629 Residential and home equity 1,522 1,731 Construction - - Total real estate 1,563 7,444 Commercial & Industrial 260 233 Agricultural - - Commercial leases - - Consumer and other 1 190 Subtotal 1,824 7,867 Non-accruing TDR loans and leases Real estate: Commercial real estate $ - $ - Agricultural - - Residential and home equity - - Construction - - Total real estate - - Commercial & Industrial - - Agricultural 498 495 Commercial leases - - Consumer and other - - Subtotal 498 495 Total TDR loans and leases $ 2,322 $ 8,362 Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows: December 31, 2021 (Dollars in thousands) Pass Special Mention Sub- standard Doubtful Total Loans & Leases Total Allowance for Credit Losses Loans and leases held-for-investment, net Real estate: Commercial real estate $ 1,142,175 $ 6,903 $ 8,260 $ - $ 1,157,338 $ 28,536 Agricultural 663,157 3,292 6,381 - 672,830 9,613 Residential and home equity 350,148 - 433 - 350,581 2,847 Construction 177,163 - - - 177,163 1,456 Total real estate 2,332,643 10,195 15,074 - 2,357,912 42,452 Commercial & Industrial 417,806 9,321 672 - 427,799 11,489 Agricultural 275,206 958 520 - 276,684 5,465 Commercial leases 96,415 - - - 96,415 938 Consumer and other 78,181 - 186 - 78,367 263 Unallocated - - - - - 400 Total loans and leases, net $ 3,200,251 $ 20,474 $ 16,452 $ - $ 3,237,177 $ 61,007 December 31, 2020 (Dollars in thousands) Pass Special Mention Sub- standard Doubtful Total Loans & Leases Total Allowance for Credit Losses Loans and leases held-for-investment, net Real estate: Commercial real estate $ 946,621 $ 7,849 $ 4,510 $ - $ 958,980 $ 27,679 Agricultural 631,043 400 11,571 - 643,014 8,633 Residential and home equity 332,747 - 871 - 333,618 2,984 Construction 185,741 - - - 185,741 1,643 Total real estate 2,096,152 8,249 16,952 - 2,121,353 40,939 Commercial & Industrial 373,038 1,060 718 - 374,816 9,961 Agricultural 263,781 96 495 - 264,372 4,814 Commercial leases 103,522 - - - 103,522 1,731 Consumer and other 235,063 - 466 - 235,529 333 Unallocated - - - - - 1,084 Total loans and leases, net $ 3,071,556 $ 9,405 $ 18,631 $ - $ 3,099,592 $ 58,862 Changes in the allowance for credit losses are as follows: Year Ended December 31, 2021 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Balance at beginning of year $ 36,312 $ 1,643 $ 2,984 $ 14,775 $ 1,731 $ 333 $ 1,084 $ 58,862 Provision / (recapture) for credit losses 1,837 (187 ) (235 ) 2,025 (793 ) (53 ) (684 ) 1,910 Charge-offs - - - - - (44 ) - (44 ) Recoveries - - 98 154 - 27 - 279 Net (charge-offs) / recoveries - - 98 154 - (17 ) - 235 Balance at end of year $ 38,149 $ 1,456 $ 2,847 $ 16,954 $ 938 $ 263 $ 400 $ 61,007 Year Ended December 31, 2020 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Balance at beginning of year $ 26,181 $ 1,949 $ 3,530 $ 19,542 $ 3,162 $ 456 $ 192 $ 55,012 Provision / (recapture) for credit losses 10,050 (306 ) (669 ) (3,946 ) (1,431 ) (90 ) 892 4,500 Charge-offs - - (7 ) (1,101 ) - (66 ) - (1,174 ) Recoveries 81 - 130 280 - 33 - 524 Net (charge-offs) / recoveries 81 - 123 (821 ) - (33 ) - (650 ) Balance at end of year $ 36,312 $ 1,643 $ 2,984 $ 14,775 $ 1,731 $ 333 $ 1,084 $ 58,862 Year Ended December 31, 2019 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Balance at beginning of year $ 25,701 $ 1,249 $ 3,641 $ 19,898 $ 4,022 $ 494 $ 261 $ 55,266 Provision / (recapture) for credit losses 442 700 (152 ) 146 (860 ) (7 ) (69 ) 200 Charge-offs - - - (592 ) - (83 ) - (675 ) Recoveries 38 - 41 90 - 52 - 221 Net (charge-offs) / recoveries 38 - 41 (502 ) - (31 ) - (454 ) Balance at end of year $ 26,181 $ 1,949 $ 3,530 $ 19,542 $ 3,162 $ 456 $ 192 $ 55,012 The ACL and outstanding loan balances reviewed according to the Company’s estimated credit loss methods were summarized as follows: December 31, 2021 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Total loans and leases Collectively evaluated for impairment $ 1,824,517 $ 177,163 $ 348,729 $ 703,725 $ 96,415 $ 78,193 $ - $ 3,228,742 Individually evaluated for impairment 5,651 - 1,852 758 - 174 - 8,435 Total loans and leases $ 1,830,168 $ 177,163 $ 350,581 $ 704,483 $ 96,415 $ 78,367 $ - $ 3,237,177 Allowance for credit losses: Collectively evaluated for impairment $ 38,149 $ 1,456 $ 2,755 $ 16,937 $ 938 $ 227 $ 400 $ 60,862 Individually evaluated for impairment - - 92 17 - 36 - 145 Total allowance for credit losses $ 38,149 $ 1,456 $ 2,847 $ 16,954 $ 938 $ 263 $ 400 $ 61,007 December 31, 2020 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Total loans and leases Collectively evaluated for impairment $ 1,596,261 $ 185,741 $ 331,095 $ 638,460 $ 103,522 $ 235,275 $ - $ 3,090,354 Individually evaluated for impairment 5,733 - 2,523 728 - 254 - 9,238 Total loans and leases $ 1,601,994 $ 185,741 $ 333,618 $ 639,188 $ 103,522 $ 235,529 $ - $ 3,099,592 Allowance for credit losses: Collectively evaluated for impairment $ 36,312 $ 1,643 $ 2,859 $ 14,663 $ 1,731 $ 281 $ 1,084 $ 58,573 Individually evaluated for impairment - - 125 112 - 52 - 289 Total allowance for credit losses $ 36,312 $ 1,643 $ 2,984 $ 14,775 $ 1,731 $ 333 $ 1,084 $ 58,862 Information on individually evaluated loans was summarized as follows: December 31, 2021 (Dollars in thousands) Unpaid Principal Balance With no Allowance With Allowance Total Recorded Investment Related Allowance Loans and leases individually evaluated: Real estate: Commercial real estate $ 45 $ 45 $ - $ 45 $ - Agricultural 5,606 5,606 - 5,606 - Residential and home equity 1,852 - 1,852 1,663 92 Construction - - - - - Total real estate 7,503 5,651 1,852 7,314 92 Commercial & Industrial 260 - 260 260 17 Agricultural 498 498 - 456 - Commercial leases - - - - - Consumer and other 174 - 174 173 36 Total gross loans and leases $ 8,435 $ 6,149 $ 2,286 $ 8,203 $ 145 December 31, 2020 (Dollars in thousands) Unpaid Principal Balance With no Allowance With Allowance Total Recorded Investment Related Allowance Loans and leases individually evaluated: Real estate: Commercial real estate $ 104 $ 104 $ - $ 104 $ - Agricultural 5,629 5,629 - 5,629 - Residential and home equity 2,523 - 2,523 2,288 125 Construction - - - - - Total real estate 8,256 5,733 2,523 8,021 125 Commercial & Industrial 233 - 233 233 20 Agricultural 495 3 492 453 92 Commercial leases - - - - - Consumer and other 254 63 191 253 52 Total gross loans and leases $ 9,238 $ 5,799 $ 3,439 $ 8,960 $ 289 Interest income recognized on the average recorded investment of individually evaluated loans was as follows: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Loans and leases individually evaluated: Real estate: Commercial real estate $ 80 $ 7 $ 812 $ 38 $ 4,595 $ 182 Agricultural 5,588 735 5,766 352 6,069 379 Residential and home equity 1,978 93 2,543 135 2,679 144 Construction - - - - - - Total real estate 7,646 835 9,121 525 13,343 705 Commercial & Industrial 232 20 500 34 1,562 54 Agricultural 585 58 907 102 195 6 Commercial leases - - - - - - Consumer and other 310 21 257 13 54 - Total loans and leases individually evaluated $ 8,773 $ 934 $ 10,785 $ 674 $ 15,154 $ 765 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 6—Premises and Equipment Premises and equipment consisted of the following: December 31, (Dollars in thousands) 2021 2020 Premises and equipment: Buildings and land $ 59,325 $ 60,512 Furniture, fixtures, and equipment 21,775 21,011 Leasehold improvements 3,658 3,752 Other 527 474 Subtotal 85,285 85,749 Accumulated depreciation and amortization (37,555 ) (35,602 ) Total premises and equipment $ 47,730 $ 50,147 Depreciation and amortization on premises and equipment included in occupancy and equipment expense amounted to $2,632,000, $2,769,000, and $2,756,000 for the years ended December 31, 2021, 2020 and 2019, respectively. Rental income was $491,000, $434,000, and $183,000 for the years ended December 31, 2021, 2020, and 2019, respectively and is recorded in other income. |
Other Real Estate
Other Real Estate | 12 Months Ended |
Dec. 31, 2021 | |
Other Real Estate [Abstract] | |
Other Real Estate | Note 7—Other Real Estate The Bank reported $873,000 in other real estate at December 31, 2021 and 2020, which includes property no longer utilized for business operations and property acquired through foreclosure proceedings. These properties are carried at fair value less selling costs determined at the date acquired. Losses, if any, arising from properties acquired through foreclosure are charged against the allowance for loan losses at the time of foreclosure. Subsequent declines in value, periodic holding costs, and net gains or losses on disposition are included in other operating expense as incurred. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposits | Note 8 — Deposits Certificate of deposits greater than and less than or equal to the FDIC insurance limit are summarized as follows: December 31, (Dollars in thousands) 2021 2020 Certificate of deposits: Certificates of deposits less than or equal to $250,000 $ 223,620 $ 235,924 Certificates of deposits greater than $250,000 168,865 185,944 Total certificate of deposits $ 392,485 $ 421,868 Scheduled maturities for certificates of deposit are as follows for the years ending December 31: (Dollars in thousands) Amount 2022 $ 354,754 2023 29,502 2024 5,171 2025 1,648 2026 and beyond 1,410 Total time deposits $ 392,485 |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Borrowings [Abstract] | |
Short-term Borrowings | Note 9 — Short-term borrowings As of December 31, 2021 and 2020, committed lines of credit arrangements totaling $1.4 billion and $1.3 billion were available to the Company from unaffiliated banks, respectively. The average Federal Funds interest rate as of December 31, 2021 was 0.25%. The Company is a member of the FHLB of San Francisco and has a committed credit line of $837.1 million, which is secured by $1.14 billion in various real estate loans and investment securities pledged as collateral. Borrowings generally provide for interest at the then current published rate, which was 0.17% as of December 31, 2021. The Company has $767 million in pledged loans with the Federal Reserve Bank (the “Fed”). As of December 31, 2021, the Company’s overnight borrowing capacity using the primary credit facilities from the Fed account was $480.4 million. The borrowing rate is 25 basis points. There were no outstanding advances on the above borrowing facilities as of December 31, 2021 and 2020. |
Long-term Subordinated Debentur
Long-term Subordinated Debentures | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Subordinated Debentures [Abstract] | |
Long-term Subordinated Debentures | Note 10—Long-term Subordinated Debentures In December 2003, the Company formed a wholly owned Connecticut statutory business trust, FMCB Statutory Trust I (“Statutory Trust I”), which issued $10.0 million of guaranteed preferred beneficial interests in the Company’s junior subordinated deferrable interest debentures (the “Trust Preferred Securities”). The Company is not considered the primary beneficiary of the trust (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. These debentures qualify as Tier 1 capital under current regulatory guidelines. All of the common securities of Statutory Trust I are owned by the Company. The proceeds from the issuance of the common securities and the Trust Preferred Securities were used by FMCB Statutory Trust to purchase $10.3 million of junior subordinated debentures of the Company, which carry a floating rate based on three-month LIBOR plus 2.85%. The debentures represent the sole asset of Statutory Trust I. The Trust Preferred Securities accrue and pay distributions at a floating rate of three-month LIBOR plus 2.85% per annum of the stated liquidation value of $1,000 per capital security. The Company has entered into contractual arrangements which, taken collectively, fully and unconditionally guarantee payment to the extent that Statutory Trust I has funds available therefore of: (i) accrued and unpaid distributions required to be paid on the Trust Preferred Securities; (ii) the redemption price with respect to any Trust Preferred Securities called for redemption by Statutory Trust I; and (iii) payments due upon a voluntary or involuntary dissolution, winding up, or liquidation of Statutory Trust I. The Trust Preferred Securities are mandatorily redeemable upon maturity of the subordinated debentures on December 17, 2033, or upon earlier redemption as provided in the indenture. The Company has the right to redeem the subordinated debentures purchased by Statutory Trust I, in whole or in part, on or after December 17, 2008. As specified in the indenture, if the subordinated debentures are redeemed prior to maturity, the redemption price will be the principal amount and any accrued but unpaid interest. Additionally, if the Company decided to defer interest on the subordinated debentures, the Company would be prohibited from paying cash dividends on the Company’s common stock. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 11—Shareholders’ Equity The Company and the Bank are subject to various federal regulatory capital requirements under the Basel III Capital Rules. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Company believes that it is currently in compliance with all of these capital requirements and that they will not result in any restrictions on the Company’s business activity. Management believes that the Company and the Bank meet the requirements to be categorized as “well capitalized” under the FDIC regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. The Company’s actual and required capital amounts and ratios are as follows: December 31, 2021 Actual Minimum Capital Requirement Well Capitalized Requirment (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmers & Merchants Bancorp CET1 capital to risk-weighted assets $ 450,687 11.68 % $ 173,674 4.50 % N/A N/A Tier 1 capital to risk-weighted assets 460,687 11.94 % 231,566 6.00 % N/A N/A Risk-based capital to risk-weighted assets 509,091 13.19 % 308,755 8.00 % N/A N/A Tier 1 leverage capital ratio 460,687 8.92 % 206,606 4.00 % N/A N/A Farmers & Merchants Bank CET1 capital to risk-weighted assets $ 459,813 11.91 % $ 173,664 4.50 % $ 250,847 6.50 % Tier 1 capital to risk-weighted assets 459,813 11.91 % 231,551 6.00 % 308,735 8.00 % Risk-based capital to risk-weighted assets 508,215 13.17 % 308,735 8.00 % 385,919 10.00 % Tier 1 leverage capital ratio 459,813 8.91 % 206,426 4.00 % 258,033 5.00 % December 31, 2020 Actual Minimum Capital Requirement Well Capitalized Requirment (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmers & Merchants Bancorp CET1 capital to risk-weighted assets $ 395,941 11.05 % $ 161,178 4.50 % N/A N/A Tier 1 capital to risk-weighted assets 405,941 11.33 % 214,904 6.00 % N/A N/A Risk-based capital to risk-weighted assets 450,890 12.59 % 286,539 8.00 % N/A N/A Tier 1 leverage capital ratio 405,941 9.13 % 177,820 4.00 % N/A N/A Farmers & Merchants Bank CET1 capital to risk-weighted assets $ 401,313 11.21 % $ 161,135 4.50 % $ 232,750 6.50 % Tier 1 capital to risk-weighted assets 401,313 11.21 % 214,846 6.00 % 286,462 8.00 % Risk-based capital to risk-weighted assets 446,251 12.46 % 286,462 8.00 % 358,077 10.00 % Tier 1 leverage capital ratio 401,313 9.04 % 177,605 4.00 % 222,006 5.00 % Basic and dilluted earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Earnings per common share have been computed based on the following: Year Ended December 31, (Dollars in thousands, except share and per share amounts) 2021 2020 2019 Numerator Net income $ 66,336 $ 58,734 $ 56,036 Denominator Weighted average number of common shares outstanding 789,646 793,337 787,227 Weighted average number of dilutive shares outstanding 789,646 793,337 787,227 Basic earnings per common share $ 84.01 $ 74.03 $ 71.18 Diluted earning per commons share $ 84.01 $ 74.03 $ 71.18 The Company’s Board of Directors may declare cash or stock dividends out of retained earnings provided the regulatory minimum capital ratios are met. The Company plans to maintain capital ratios that meet the well-capitalized standards per the regulations. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 12—Employee Benefit Plans Profit Sharing Plan The Company, through the Bank, sponsors a Profit Sharing Plan for substantially all full-time employees of the Company with one Executive Retirement Plan and Life Insurance Arrangements The Company, through the Bank, sponsors an Executive Retirement Plan (“ERP”) for certain executive level employees. The ERP is a non-qualified deferred compensation plan and was developed to supplement the Company’s Profit Sharing Plan, which, as a qualified retirement plan, has a ceiling on benefits as set by the Internal Revenue Service. The ERP is comprised of: (1) a Performance Component which makes contributions based upon long-term cumulative profitability and increase in market value of the Company; (2) a Salary Component which makes contributions based upon participant salary levels; and (3) an Equity Component for which contributions are discretionary and subject to Board of Directors approval. The Company maintains a Rabbi Trust to fund, in part, the ERP. The Rabbi Trust is an irrevocable grantor trust to which the Company may contribute assets for the limited purpose of funding a nonqualified deferred compensation plan. The Company may not use the assets of the Rabbi Trust for any purpose other than meeting its obligations under the ERP; however, the assets of the Rabbi Trust remain subject to the claims of its creditors and are included in the consolidated financial statements. The Company contributes cash to the Rabbi Trust from time to time for the sole purpose of funding the ERP. The Rabbi Trust will use any cash the Company contributes to purchase shares of common stock of the Company, and other financial instruments, on the open market. ERP contributions are invested in a mix of financial instruments; however, the Equity Component contributions are invested primarily in common stock of the Company. The Company expensed $9.0 million to the ERP during the year ended December 31, 2021, $6.8 million during the year ended December 31, 2020 and $6.6 million during the year ended December 31, 2019. The Company’s carrying value of the liability under the ERP was $63.9 million as of December 31, 2021 and $56.7 million as of December 31, 2020. The Company’s shares of common stock held as investments in the Rabbi Trust of the ERP as of December 31, 2021 and 2020 totaled 55,436 and 52,980 with an historical cost basis of $33.2 million and $31.2 million, respectively. All amounts have been fully funded into the Rabbi Trust as of December 31, 2021 and 2020. The consolidated investments held in the Rabbi Trust are recorded at fair value with changes in unrealized gains or losses recorded within non-interest income and the equal and offsetting charges in the related liability are recorded in non-interest expense in the consolidated statements of income. Net gains on ERP plan investments were $2.5 million in 2021 compared to net gains of $1.8 million in 2020 and $2.6 million in 2019. Balances in non-qualified deferred compensation plans may be invested in financial instruments whose market value fluctuates based upon trends in interest rates and stock prices. Senior Management Retention Plan The Company, through the Bank, sponsors a Senior Management Retention Plan (“SMRP”) for certain senior level employees. The SMRP is a non-qualified deferred compensation plan and was developed to supplement the Company’s Profit Sharing Plan, which, as a qualified retirement plan, has a ceiling on benefits as set by the Internal Revenue Service. All contributions are discretionary and subject to the Board of Directors approval. The Company maintains a Rabbi Trust to fund, in part, the SMRP. The Rabbi Trust is an irrevocable grantor trust to which the Company may contribute assets for the limited purpose of funding a nonqualified deferred compensation plan. The Company may not use the assets of the Rabbi Trust for any purpose other than meeting its obligations under the SMRP; however, the assets of the Rabbi Trust remain subject to the claims of its creditors and are included in the consolidated financial statements. The Company contributes cash to the Rabbi Trust from time to time for the sole purpose of funding the SMRP. The Rabbi Trust will use any cash the Company contributes to purchase shares of common stock of the Company, and other financial instruments, on the open market. Contributions to the SMRP are invested primarily in common stock of the Company. The Company expensed $2.7 million to the SMRP during the year ended December 31, 2021, $2.3 million during the year ended December 31, 2020 and $1.3 million during the year ended December 31, 2019. The Company’s carrying value of the liability under the SMRP was $11.1 million as of December 31, 2021 and $8.6 million as of December 31, 2020. The Company’s shares of stock held as investments in the Rabbi Trust of the SMRP as of December 31, 2021 and December 31, 2020 totaled 14,192 and 12,548 shares with an historical cost basis of $9.5 million and $7.9 million, respectively. All amounts have been fully funded into the Rabbi Trust as of December 31, 2021 and 2020. The consolidated investments held in the Rabbi Trust are recorded at fair value with changes in unrealized gains or losses recorded within non-interest income and the equal and offsetting charges in the related liability are recorded in non-interest expense in the consolidated statements of income. Net gains on SMRP plan investments were $0.1 million in 2021, $0.1 million in 2020 and zero in 2019. Balances in non-qualified deferred compensation plans may be invested in financial instruments whose market value fluctuates based upon trends in interest rates and stock prices . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 13—Fair Value Measurements The Company follows the “Fair Value Measurement and Disclosures” topic of the FASB ASC, which establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. This standard applies whenever other standards require, or permit assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. In this standard, the FASB clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability. In support of this principle, this standard establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy is as follows: Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Management monitors the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities or total earnings. Securities classified as available-for-sale are reported at fair value on a recurring basis utilizing Level 1, 2 and 3 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The Company does not record all loans and leases at fair value on a recurring basis. However, from time to time, a loan or lease is considered impaired and an allowance for credit losses is established. Once a loan or lease is identified as individually impaired, management measures impairment in accordance with the “Receivable” topic of the FASB ASC. The fair value of impaired loans or leases is estimated using one of several methods, including collateral value when the loan is collateral dependent, market value of similar debt, enterprise value, and discounted cash flows. Impaired loans and leases not requiring an allowance represent loans and leases for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans and leases. Impaired loans and 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 in to 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 in to 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 and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. December 31, 2021 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash and cash equivalents $ 715,460 $ 715,460 $ - $ - $ 715,460 Investment securities available-for-sale 270,454 10,214 260,240 - 270,454 Investment securities held-to-maturity 737,052 - 681,588 44,446 726,034 Non-marketable securities 15,549 - - 15,549 15,549 Loans and leases, net 3,176,170 - - 3,179,857 3,179,857 Bank-owned life insurance 71,411 71,411 - - 71,411 Financial Liabilities: Total deposits $ 4,640,152 $ 4,247,666 $ - $ 391,732 $ 4,639,398 Subordinated debentures 10,310 - 6,890 - 6,890 December 31, 2020 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Financial 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 Non-marketable securities 12,693 - - 12,693 12,693 Loans and leases, net 3,040,730 - - 3,045,911 3,045,911 Bank-owned life insurance 69,235 69,235 - - 69,235 Financial Liabilities: Total deposits $ 4,060,267 $ 3,638,400 $ - $ 422,840 $ 4,061,240 Subordinated debentures 10,310 - 6,888 - 6,888 Non-recurring Measurements: Impaired loans are classified with Level 3 of the fair value hierarchy. The estimated fair value of impaired loans is based on the fair value of the collateral, less estimated costs to sell. The Company receives an appraisal or performs an evaluation for each impaired loan. The key inputs used to determine the fair value of impaired loans include selling costs, and adjustment to comparable collateral. Valuations and significant inputs obtained by independent sources are reviewed by the Company for accuracy and reasonableness. Appraisals are typically obtained at least on an annual basis. The Company also considers other factors and events that may affect the fair value. The appraisals or evaluations are reviewed at least on a quarterly basis to determine if any adjustments are needed. After review and acceptance of the appraisal or evaluation, adjustments to impaired loans may occur. The following tables present information about the Bank’s assets and liabilities measured at fair value on a recurring and non-recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Bank to determine such fair value for the periods indicated. December 31, 2021 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Fair valued on a recurring basis: Investment securities available-for-sale U.S. Treasury notes $ 10,089 $ 10,089 $ - $ - $ 10,089 U.S. Government-sponsored securities 6,374 - 6,374 - 6,374 Mortgage-backed securities 251,120 - 251,120 - 251,120 Collateralized Mortgage Obligations 2,436 - 2,436 - 2,436 Other 435 125 310 - 435 Fair valued on a non-recurring basis: Individually evaluated loans $ 2,562 $ - $ - $ 2,562 $ 2,562 Other Real Estate 873 - - 873 873 December 31, 2020 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Fair valued on a recurring basis: Investment securities available-for-sale U.S. Treasury notes $ 15,288 $ 15,288 $ - $ - $ 15,288 U.S. Government-sponsored securities 8,160 - 8,160 - 8,160 Mortgage-backed securities 732,720 - 732,720 - 732,720 Collateralized Mortgage Obligations 5,153 - 5,153 - 5,153 Corporate securities 45,919 - 45,919 - 45,919 Other 492 182 310 - 492 Fair valued on a non-recurring basis: Individually evaluated loans $ 3,269 $ - $ - $ 3,269 $ 3,269 Other Real Estate 873 - - 873 873 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies In the normal course of business, the Company enters into financial instruments with off balance sheet risk in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These instruments include commitments to extend credit, letters of credit, and other types of financial guarantees. The Company had the following off balance sheet commitments as of the dates indicated. December 31, (Dollars in thousands) 2021 2020 Commitments to extend credit, including unsecured commitments of $ 21,036 21,057 $ 937,009 $ 957,443 Stand-by letters of credit, including unsecured commitments of $ 9,091 10,945 17,880 18,846 Performance guarantees under interest rate swap contracts entered into our clients and third-parties 1,433 2,786 The Company’s exposure to credit loss in the event of nonperformance by the other party with regard to standby letters of credit, undisbursed loan commitments, and financial guarantees is represented by the contractual notional amount of those instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. The Company uses the same credit policies in making commitments and conditional obligations as it does for recorded balance sheet items. The Company may or may not require collateral or other security to support financial instruments with credit risk. Evaluations of each customer’s creditworthiness are performed on a case-by-case basis. Standby letters of credit are conditional commitments issued by the Company to guarantee performance of or payment for a customer to a third-party. Outstanding standby letters of credit have maturity dates ranging from 1 to 60 months with final expiration in January 2027. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. In the ordinary course of business, the Company becomes involved in litigation arising out of its normal business activities. Management, after consultation with legal counsel, believes that the ultimate liability, if any, resulting from the disposition of such claims would not be material in relation to the financial position of the Company. The Company may be required to maintain average reserves on deposit with the Federal Reserve Bank primarily based on deposits outstanding. Reserve requirements are offset by the Company’s vault cash and deposit balances maintained with the Federal Reserve Bank. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 15 — 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 1 to 10 years. Certain lease arrangements contain extension options that typically range from 5 to 10 years at the then fair market rental rates. ASC 842 requires lessees to evaluate whether option periods, if available, will be exercised in order to determine the full life of the lease. The Company used the first option period, unless it is a relatively new lease that has a long initial lease term or other extenuating circumstances. As of December 31, 2021, operating lease ROU assets and liabilities were $4.05 million and $4.13 million, respectively. Operating lease expenses totaled $739,000 for the year ended December 31, 2021. As of December 31, 2020, operating lease ROU assets and liabilities were $4.80 million and $4.92 million, respectively. Operating lease expenses totaled $833,000 and $836,000 for the years ended December 31, 2020 and 2019, respectively. The table below summarizes the maturity of remaining lease liability: (Dollars in thousands) Amount 2022 $ 701 2023 712 2024 728 2025 740 2026 1,601 Total lease payments 4,482 Discount (349 ) Net present value of lease liabilities $ 4,133 As of December 31, 2021, we have no additional operating leases for office space that have not yet commenced or that are anticipated to commence during the first quarter of 2022. 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 third-parties 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 $96.4 million at December 31, 2021 and $103.5 million at December 31, 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Note 16 — Income Taxes The components of income tax expense (benefit) are as follows: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Income tax expense / (benefit) Current: Federal $ 12,595 $ 12,174 $ 14,798 State 10,270 9,005 7,733 Total current expense 22,865 21,179 22,531 Deferred: Federal 59 (1,115 ) (3,500 ) State (939 ) (847 ) 246 Total current deferred benefit (880 ) (1,962 ) (3,254 ) Provision for income tax expense $ 21,985 $ 19,217 $ 19,277 The combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Amount Rate Amount Rate Amount Rate Effective income tax rate Federal statutory rate $ 18,548 21.00 % $ 16,370 21.00 % $ 15,816 21.00 % State taxes, net of Federal income tax benefit 7,370 8.34 % 6,445 8.27 % 6,304 8.40 % Low-income housing tax credits (3,116 ) (3.53 %) (2,655 ) (3.41 %) (2,078 ) (2.80 %) Bank owned life insurance (471 ) (0.53 %) (444 ) (0.57 %) (460 ) (0.60 %) Tax-exempt interest income (347 ) (0.39 %) (350 ) (0.45 %) (358 ) (0.50 %) Other, net 1 (0.00 %) (149 ) (0.19 %) 53 0.10 % Total provision for income tax expense and effective tax rate $ 21,985 24.89 % $ 19,217 24.65 % $ 19,277 25.60 % The nature and components of the Company’s net deferred income tax assets are as follows: December 31, (Dollars in thousands) 2021 2020 Deferred income tax assets: Allowance for credit losses $ 18,129 $ 17,248 Deferred compensation 15,339 13,707 Accrued liabilities 9,415 8,526 State income taxes 2,157 1,891 Lease liabilities 1,222 1,454 Unrealized losses on debt securities 945 - SBA PPP loan fee income 764 1,367 Acquired net operating losses 614 643 Low-income housing tax investments 503 384 Acquired loans fair valuation 197 237 Acquired OREO fair valuation 108 108 Other 19 7 Total deferred income tax assets 49,412 45,572 Deferred income tax liabilities: Commercial leasing $ (17,892 ) $ (17,183 ) Unrealized gains on debt securities - (5,156 ) Premises and equipment (1,860 ) (1,684 ) Right of use leasing asset (1,197 ) (1,428 ) Core deposit intangible asset (1,006 ) (1,186 ) Deferred loan and lease costs (869 ) (692 ) Accretion on investment securities (523 ) (588 ) FHLB dividends (348 ) (348 ) Prepaid assets (43 ) (45 ) Other (132 ) (169 ) Total deferred income tax liabilities (23,870 ) (28,479 ) Net deferred income tax assets $ 25,542 $ 17,093 The Company believes, based on available information, that more likely than not, the net deferred income tax asset will be realized in the normal course of operations. Accordingly, no valuation allowance has been recorded at December 31, 2021 and 2020. The impact of a tax position is recognized in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. As of December 31, 2021 and 2020, the Company did not have any significant uncertain tax positions. The Company includes any interest and penalties associated with unrecognized tax benefits within the provision for income taxes. The Company does not expect a material change to the total amount of unrecognized tax benefits in the next twelve months. The Company files U.S. and state income tax returns in jurisdictions with various statutes of limitations. The 2017 through 2021 |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Statements of Parent Company [Abstract] | |
Condensed Financial Statements of Parent Company | Note 17 — Condensed Financial Statements of Parent Company Financial information pertaining only to Farmers and Merchants Bancorp (“FMCB”), on a parent-only basis, is as follows: December 31, (Dollars in thousands) 2021 2020 Balance Sheets Assets Cash and cash equivalents $ 1,535 $ 4,551 Investment in subsidiaries 472,573 429,347 Other assets 241 956 Total assets $ 474,349 $ 434,854 Liabilities and shareholders’ equity Subordinated debentures $ 10,310 $ 10,310 Other liabilities 903 879 Shareholders’ equity 463,136 423,665 Total liabilities and shareholders’ equity $ 474,349 $ 434,854 Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Statements of Income Dividend and other income from subsidiaries $ 9,900 $ 19,874 $ 13,166 Interest and dividends 9 11 17 Total income 9,909 19,885 13,183 Reimbursement of expenses from subsidiaries 780 821 800 Other expenses 1,469 1,656 1,616 Total expense 2,249 2,477 2,416 Income before income taxes 7,660 17,408 10,767 Income tax benefit 660 729 698 8,320 18,137 11,465 Equity in undistributed net income of subsidiaries 58,016 40,597 44,571 Net income $ 66,336 $ 58,734 $ 56,036 (Dollars in thousands) Year Ended December 31, Statements of Cash Flows 2021 2020 2019 Cash flows from operating activities: Net income $ 66,336 $ 58,734 $ 56,036 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of the Bank (58,016 ) (40,597 ) (44,571 ) Change in other assets and liabilities 739 (393 ) 62 Net cash provided by operating activities 9,059 17,744 11,527 Cash flows from investing activities: Payments for investments in non-qualified retirement plans - (403 ) (6,273 ) Net cash used in investing activities - (403 ) (6,273 ) Cash flows from financing activities: Common stock repurchases - (2,834 ) - Issuance of common stock - 403 6,973 Cash dividends paid (12,075 ) (11,700 ) (11,221 ) Net used in financing activities (12,075 ) (14,131 ) (4,248 ) Net change in cash and cash equivalents (3,016 ) 3,210 1,006 Cash and cash equivalents, beginning of year 4,551 1,341 335 Cash and cash equivalents, end of year $ 1,535 $ 4,551 $ 1,341 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations and basis of consolidation | Nature of Operations and basis of consolidation 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. Through its network of 29 banking offices and 3 ATMs, F&M Bank emphasizes personalized service along with a broad range of banking services to businesses and individuals located in the service areas of its offices. Although the Company focuses on marketing its services to small and medium-sized businesses, a broad range of retail banking services are also made available to the local consumer market. F&M Bank branches are located through the mid Central Valley of California, including Sacramento, San Joaquin, Solano, Stanislaus and Merced counties and the east region of the San Francisco Bay Area including Napa and Contra Costa counties. F&M Bank provides a broad complement of lending products, including commercial, commercial real estate, real estate construction, agribusiness, consumer, credit card, residential real estate loans, and equipment leases. Commercial products include term loans, leases, lines of credit and other working capital financing and letters of credit. Financing products for individuals include automobile financing, lines of credit, residential real estate, home improvement and home equity lines of credit. F&M Bank also offers a wide range of deposit instruments. These include checking, savings, money market, time certificates of deposit, individual retirement accounts and online banking services for both business and personal accounts. F&M Bank offers a wide range of specialized services designed for the needs of its commercial accounts. These services include a credit card program for merchants, lockbox and other collection services, account reconciliation, investment sweep, on-line account access, and electronic funds transfers by way of domestic and international wire and automated clearinghouse. F&M Bank makes investment products available to customers, including mutual funds and annuities. These investment products are offered through a The consolidated financial statements of the Company include the accounts of FMCB together with the Bank. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of estimates the determination of the fair value of certain financial instruments, and deferred income tax assets. |
Reclassifications | Reclassifications |
Cash and Cash Equivalents | Cash and cash equivalents — Cash and cash equivalents consist of cash on hand, amounts due from banks, interest bearing deposits, and federal funds sold, all of which have original maturities of three months or less. The Company places its cash with high credit quality institutions. The amounts on deposit fluctuate and, at times, exceed the insured limit by the FDIC, which potentially subjects the Company to credit risk. For these instruments, the carrying amount is a reasonable estimate of fair value. |
Investment Securities | Investment securities — Investment securities are classified as held to maturity (“HTM”) when the Company has the positive intent and ability to hold the securities to maturity. Investment securities are classified as available for sale (“AFS”) when the Company has the intent of holding the security for an indefinite period of time, but not necessarily to maturity. The Company determines the appropriate classification at the time of purchase, and periodically thereafter. Investment securities classified at HTM are carried at amortized cost. Investment securities classified at AFS are reported at fair value. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Debt securities classified as held to maturity are carried at cost. Debt securities classified as available for sale are measured at fair value. Unrealized holding gains and losses on debt securities classified as available for sale are excluded from earnings and are reported net of tax as accumulated other comprehensive income (AOCI), a component of shareholders’ equity, until realized. When AFS securities, specifically identified, are sold, the unrealized gain or loss is reclassified from AOCI to non-interest income. When the estimated fair value of a security is lower than the book value, a security is considered impaired and the Company evaluates it for other-than-temporary impairment (“OTTI”). If there is intent to sell the security, or if the Company will be required to sell the security, or if the Company believes it will not recover the entire cost basis of the security, the security is other-than-temporarily impaired and impairment is recognized. The amount of impairment resulting from credit loss is recognized in earnings and impairment related to all other factors, such as general market conditions, is recognized in AOCI. Management considers a number of factors in its analysis of whether a decline in a security’s estimated fair value is OTTI. Certain factors considered include, but are not limited to: (a) the length of time and the extent to which the security has been in an unrealized loss position, (b) changes in the financial condition of the issuer, (c) the payment structure of debt securities, (d) adverse changes in ratings issued by rating agencies, (e) and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Interest income is recognized based on the coupon rate, and is increased by the accretion of discounts earned or decreased by the amortization of premiums paid. The amortization of premiums or the accretion of discounts are recognized in interest income using the effective interest method over the period of maturity. |
Non-marketable Equity Securities | Non-marketable equity securities — |
Loans and Leases Held for Investment | Loans and leases held for investment — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on acquired loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the effective interest method. Loans are placed on non-accrual status when they become 90 days or more past due or at such earlier time as management determines timely recognition of interest to be in doubt. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions, collection efforts, and the borrower’s financial condition, that the borrower will be unable to make payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received, or payment is considered certain. Loans may be returned to accrual status when all delinquent interest and principal amounts contractually due are brought current and future payments are reasonably assured. Impaired loan and leases Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Restructured loan and leases 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 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. The CARES Act and H.R. 133 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 to account for the effects of COVID-19. In March 2020, 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-19 to borrowers who were current prior to any relief. Under this guidance, six months is provided as an example of short-term, and current is defined as less than 30 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 nonaccrual during the term of the modification. See “Note 2 – Risks and Uncertainties” for additional information on the CARES Act, H.R. 133 and the impact of COVID-19 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 loan & lease portfolio as of the balance sheet date. The allowance is established through a provision for credit losses, which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan & lease growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of three primary components: specific reserves related to impaired loans and leases; general reserves for inherent losses related to loans and leases that are not impaired; and an unallocated component that takes into account the imprecision in estimating and allocating allowance balances associated with macro factors. The determination of the general reserve for loans and leases that are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, qualitative factors that include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan & lease portfolio, and probable losses inherent in the portfolio taken as a whole. The Company maintains a separate allowance for each portfolio segment (loan & lease type). These portfolio segments include: (1) commercial real estate; (2) agricultural real estate; (3) real estate construction (including land and development loans); (4) residential 1st mortgages; (5) home equity lines and loans; (6) agricultural; (7) commercial; (8) consumer and other; and (9) equipment leases. The allowance for credit losses attributable to each portfolio segment, which includes both individually evaluated impaired loans and leases and loans and leases that are collectively evaluated for impairment, is combined to determine the Company’s overall allowance, which is included on the consolidated balance sheet. The Company assigns a risk rating to all loans and leases and periodically performs detailed reviews of all such loans and leases over a certain threshold to identify credit risks and assess overall collectability. For smaller balance loans and 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 and 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 Special mention Substandard 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 assessment of the following for each portfolio segment: (1) inherent credit risk; (2) historical losses; and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below: Commercial real estate – Commercial real estate mortgage loans are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties affect 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 affect the credit quality of these loans, as property values determine the economic viability of construction projects. Commercial 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. Commercial 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 with qualified, independent appraisers that establish the residual values the Company uses in structuring a lease. Residential 1st mortgages and home equity lines and loans Consumer & other At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s and Bank’s regulators, including the Federal Reserve Board (“FRB”), the California Department of Financial Protection and Innovation (“DFPI”) and the Federal Deposit Insurance Corporation (“FDIC”), as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations. |
Premises and Equipment | Premises and equipment — Land is carried at cost. Premises and equipment are carried at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is computed using the straight-line method based on the estimated useful lives of the related assets below: Building and building improvements 30 to 40 years Leasehold improvements term of lease Furniture and equipment 3 to 7 years Computers, software and equipment 3 to 7 years Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. |
Bank-owned Life Insurance ("BOLI") | Bank-owned life insurance (“BOLI”) |
Goodwill | Goodwill — Goodwill represents the excess of the purchase considerations paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination and is not amortized but is reviewed annually, as of December 31, or more frequently as current circumstances and conditions warrant, for impairment. An assessment of qualitative factors is completed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative analysis concludes that further analysis is required, then a quantitative impairment test would be completed. The quantitative goodwill impairment compares the reporting unit’s estimated fair values, including goodwill, to its carrying amount. If the carrying amount exceeds its reporting unit’s fair value, then an impairment loss would be recognized as a charge to earnings but is limited by the amount of goodwill allocated to that reporting unit. |
Other Intangible Assets | Other intangible assets — Other intangible assets consist primarily of core deposit intangibles (“CDI”), which are amounts recorded in business combinations or deposit purchase transactions related to the value of transaction-related deposits and the value of the client relationships associated with the deposits. Core deposit intangibles are amortized over the estimated useful life of such deposits. These assets |
Transfers of Financial Assets | Transfers of financial assets — Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Right of Use Lease Asset & Lease Liability | Right of use lease asset & lease liability 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 12 months. The ROU asset and lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. 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 property owners 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 one 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. |
Off-balance Sheet Credit Financial Instruments | Off-balance sheet credit related financial instruments — In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. |
Allowance for Credit Losses - Unfunded Loan Commitments | Allowance for credit losses - unfunded loan commitments — An allowance for credit losses - unfunded loan commitments is maintained at a level that, in the opinion of management, is adequate to absorb current expected credit losses associated with the contractual life of the Banks’ commitments to lend funds under existing agreements such as letters or lines of credit. The Banks use a methodology for determining the allowance for credit losses - unfunded loan commitments that applies the same segmentation and loss rate to each pool as the funded exposure adjusted for probability of funding. Draws on unfunded loan commitments that are considered uncollectible at the time funds are advanced are charged to the allowance for credit losses on off-balance sheet exposures. Provisions for credit losses - unfunded loan commitments are recognized in non-interest expense and added to the allowance for credit losses - unfunded loan commitments, which is included in other liabilities in the consolidated balance sheets. |
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 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, 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 606. 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 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. |
Income Taxes | Income taxes Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial positions, result of operations, or cash flows. |
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 no common stock equivalent shares. Therefore, there is no difference between presentation of diluted and basic earnings per common share. |
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 and 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. |
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. |
Loss Contingencies | Loss contingencies — Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the consolidated financial statements. |
Advertising costs | Advertising costs — Advertising costs are expensed when incurred and totaled $1.1 million in 2021, $0.9 million in 2020, and $1.3 million in 2019. |
Impact of Recent Authoritative Accounting Guidance | Impact of recent authoritative accounting guidance — The Accounting Standards Codification™ (“ASC”) is the FASB officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Periodically, the FASB will issue Accounting Standard updates (“ASU”) to its ASC. Rules and interpretive releases of the SEC under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. In June 2016, FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial asset not excluded from the scope that have the contractual right to receive cash. The ASU replaced the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This ASU broadens the information that an organization must use to develop its expected credit loss estimate for assets measured either collectively or individually. The new guidance had been effective on January 1, 2020. However, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and H.R. 133, resulted in federal banking regulators issuing an interim final rule allowing banks the option of delaying the implementation of CECL until January 1, 2022. 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 two years. The Company elected to delay CECL adoption, but continued to run its CECL model quarterly to accumulate data for the ultimate implementation. The Company adopted this ASU effective January 1, 2022. The Company formed an internal committee to oversee the project and engaged a third-party software vendor in the development of its model. The Company developed a reasonable and supportable forecast based upon economic forecast scenarios and incorporated the reasonable and supportable forecast into the models. The Company also developed a qualitative factor methodology and incorporated the qualitative factors into the models. The Company expects greater volatility in its earnings after adoption due to the nature and time horizon used to calculate CECL, the mode sensitivity to changes in economic forecasts, and other factors. Lastly, the Company expects a lack of comparability with financial performance to its peers as it adopts this ASU, due to delayed adoption for some public companies and the varying methodologies utilized by its peers. The Company is in the process of finalizing its review of the model results related to the adoption of this ASU. Based on our most recently determined model results, we expect the combined adjustment to our Allowance for Credit Loss and Reserve for Unfunded Loan Commitments could be within (5.00%) to 5.00% upon the adoption. Based on the credit quality of debt securities held-to-maturity, the allowance for credit losses recorded at adoption on this portfolio is expected to be nominal. In addition, the current accounting policy and procedures for other-than-temporary impairment on investment securities available-for-sale will be replaced with an allowance approach. |
Subsequent events | Subsequent events — The Company has evaluated events occurring subsequent to December 31, 2021 for disclosure in the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Premises and Equipment | Premises and equipment — Land is carried at cost. Premises and equipment are carried at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is computed using the straight-line method based on the estimated useful lives of the related assets below: Building and building improvements 30 to 40 years Leasehold improvements term of lease Furniture and equipment 3 to 7 years Computers, software and equipment 3 to 7 years |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 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 securities available-for-sale Available-for-Sale Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2021 U.S. Treasury notes $ 9,938 $ 151 $ - $ 10,089 U.S. Government-sponsored securities 6,351 62 39 6,374 Mortgage-backed securities (1) 253,300 3,200 5,380 251,120 Collateralized Mortgage Obligations 2,412 24 - 2,436 Other 435 - - 435 Total available-for-sale securities $ 272,436 $ 3,437 $ 5,419 $ 270,454 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. Available-for-Sale Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2020 U.S. Treasury notes $ 14,859 $ 429 $ - $ 15,288 U.S. Government-sponsored securities 8,252 1 93 8,160 Mortgage-backed securities (1) 715,523 17,245 48 732,720 Collateralized Mortgage Obligations 5,039 114 - 5,153 Corporate securities 45,010 927 18 45,919 Other 492 - - 492 Total available-for-sale securities $ 789,175 $ 18,716 $ 159 $ 807,732 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. |
Book Values, Estimated Fair Values and Unrealized Gains and Losses of Investments Classified as Held-To-Maturity | The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity Held-to-Maturity Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2021 Municipal securities $ 66,496 $ 701 $ - $ 67,197 Mortgage-backed securities (1) 596,775 45 11,764 585,056 Collateralized Mortgage Obligations 73,781 36 229 73,588 Total held-to-maturity securities $ 737,052 $ 782 $ 11,993 $ 725,841 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. Held-to-Maturity Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2020 Municipal securities $ 68,933 $ 1,116 $ - $ 70,049 Total held-to-maturity securities $ 68,933 $ 1,116 $ - $ 70,049 |
Gross Unrealized Losses for Available-for-Sale Securities | The following tables show the gross unrealized losses for available-for-sale securities that are less than 12 months and 12 months or more: Available-for-Sale Securities December 31, 2021 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of December 31, 2021 U.S. Government-sponsored securities $ 183 $ - $ 2,007 $ 39 $ 2,190 $ 39 Mortgage-backed securities (1) 61,469 1,192 104,489 4,188 165,958 5,380 Total available-for-sale securities $ 61,652 $ 1,192 $ 106,496 $ 4,227 $ 168,148 $ 5,419 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. Available-for-Sale Securities December 31, 2020 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized As of December 31, 2020 U.S. Government-sponsored securities $ 1,741 $ 3 $ 6,126 $ 90 $ 7,867 $ 93 Mortgage-backed securities (1) 20,142 45 177 3 20,319 48 Corporate securities 4,041 18 - - 4,041 18 Total available-for-sale securities $ 25,924 $ 66 $ 6,303 $ 93 $ 32,227 $ 159 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. |
Gross Unrealized Losses for Held-to-Maturity Securities | The following tables show the gross unrealized losses for held-to-maturity securities that are less than 12 months and 12 months or more: Held-to-Maturity Securities December 31, 2021 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses As of December 31, 2021 Mortgage-backed securities (1) $ 570,119 $ 11,764 $ - $ - $ 570,119 $ 11,764 Collateralized Mortgage Obligations 58,977 229 - - 58,977 229 Total held-to-maturity securities $ 629,096 $ 11,993 $ - $ - $ 629,096 $ 11,993 (1) All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. |
Proceeds from Sales and Calls of Securities | Proceeds from sales and calls of these securities were as follows: (Dollars in thousands) Gross Proceeds Gross Gains Gross Losses 2021 $ 301,320 $ 5,570 $ 3,016 2020 $ 5,080 $ 40 $ - 2019 $ 5,300 $ 1 $ - |
Amortized Cost and Estimated Fair Values of Investment Securities by Contractual Maturity | The amortized cost and estimated fair values of investment securities at December 31, 2021 by contractual maturity are shown in the following tables: Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Securities maturing in: One year or less $ 5,430 $ 5,465 $ 308 $ 308 After one year through five years 5,094 5,209 8,487 8,528 After five years through ten years 510 512 18,433 19,072 After ten years 5,690 5,711 39,268 39,288 $ 16,724 $ 16,897 $ 66,496 $ 67,196 Securities not due at a single maturity date: Mortgage-backed securities 253,300 251,120 596,775 585,056 Collateralized mortgage obligations 2,412 2,437 73,781 73,589 Total $ 272,436 $ 270,454 $ 737,052 $ 725,841 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Leases [Abstract] | |
Components of Loans and Leases | Loans and leases as of the dates indicated consisted of the following: December 31, (Dollars in thousands) 2021 2020 Loans and leases held-for-investment, net Real estate: Commercial real estate $ 1,167,516 $ 971,326 Agricultural 672,830 643,014 Residential and home equity 350,581 333,618 Construction 177,163 185,741 Total real estate 2,368,090 2,133,699 Commercial & Industrial 427,799 374,816 Agricultural 276,684 264,372 Commercial leases 96,971 103,117 Consumer and other (1) 78,367 235,529 Total gross loans and leases 3,247,911 3,111,533 Unearned income (10,734 ) (11,941 ) Total net loans and leases 3,237,177 3,099,592 Allowance for credit losses (61,007 ) (58,862 ) Total loans and leases held-for-investment, net $ 3,176,170 $ 3,040,730 (1) Includes SBA PPP loans. |
Aging Analysis of Loan and Lease Portfolio | The following tables show an aging analysis of the loan & lease portfolio, including unearned income, by the time past due at December 31, 2021 and 2020: December 31, 2021 (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-accrual Total Past Due Total Loans and leases held-for-investment, net Real estate: Commercial real estate $ 1,156,879 $ 459 $ - $ - $ 459 $ 1,157,338 Agricultural 672,812 - - 18 18 672,830 Residential and home equity 350,492 89 - - 89 350,581 Construction 177,163 - - - - 177,163 Total real estate 2,357,346 548 - 18 566 2,357,912 Commercial & Industrial 427,799 - - - - 427,799 Agricultural 276,186 - - 498 498 276,684 Commercial leases 96,415 - - - - 96,415 Consumer and other 78,363 4 - - 4 78,367 Total loans and leases, net $ 3,236,109 $ 552 $ - $ 516 $ 1,068 $ 3,237,177 December 31, 2020 (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-accrual Total Past Due Total Loans and leases held-for-investment, net Real estate: Commercial real estate $ 958,980 $ - $ - $ - $ - $ 958,980 Agricultural 643,014 - - - - 643,014 Residential and home equity 333,618 - - - - 333,618 Construction 185,741 - - - - 185,741 Total real estate 2,121,353 - - - - 2,121,353 Commercial & Industrial 374,816 - - - - 374,816 Agricultural 263,877 - - 495 495 264,372 Commercial leases 103,522 - - - - 103,522 Consumer and other 235,518 11 - - 11 235,529 Total loans and leases, net $ 3,099,086 $ 11 $ - $ 495 $ 506 $ 3,099,592 |
Non-accrual Loans | Non-accrual loans are summarized as follows: December 31, (Dollars in thousands) 2021 2020 Non-accrual loans and leases: Non-accrual loans and leases, not TDRs Real estate: Commercial real estate $ - $ - Agricultural 18 - Residential and home equity - - Construction - - Total real estate 18 - Commercial & Industrial - - Agricultural - - Commercial leases - - Consumer and other - - Subtotal 18 - Non-accrual loans and leases, are TDRs Real estate: Commercial real estate $ - $ - Agricultural - - Residential and home equity - - Construction - - Total real estate - - Commercial & Industrial - - Agricultural 498 495 Commercial leases - - Consumer and other - - Subtotal 498 495 Total non-accrual loans and leases $ 516 $ 495 |
Troubled Debt Restructured Loans by Loan Category | The following table lists total troubled debt restructured loans that the Company is either accruing or not accruing interest by loan category: December 31, (Dollars in thousands) 2021 2020 Troubled debt restructured loans and leases: Accruing TDR loans and leases Real estate: Commercial real estate $ 41 $ 84 Agricultural - 5,629 Residential and home equity 1,522 1,731 Construction - - Total real estate 1,563 7,444 Commercial & Industrial 260 233 Agricultural - - Commercial leases - - Consumer and other 1 190 Subtotal 1,824 7,867 Non-accruing TDR loans and leases Real estate: Commercial real estate $ - $ - Agricultural - - Residential and home equity - - Construction - - Total real estate - - Commercial & Industrial - - Agricultural 498 495 Commercial leases - - Consumer and other - - Subtotal 498 495 Total TDR loans and leases $ 2,322 $ 8,362 |
Outstanding Loan Balances Category by Credit Quality Indicators | Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows: December 31, 2021 (Dollars in thousands) Pass Special Mention Sub- standard Doubtful Total Loans & Leases Total Allowance for Credit Losses Loans and leases held-for-investment, net Real estate: Commercial real estate $ 1,142,175 $ 6,903 $ 8,260 $ - $ 1,157,338 $ 28,536 Agricultural 663,157 3,292 6,381 - 672,830 9,613 Residential and home equity 350,148 - 433 - 350,581 2,847 Construction 177,163 - - - 177,163 1,456 Total real estate 2,332,643 10,195 15,074 - 2,357,912 42,452 Commercial & Industrial 417,806 9,321 672 - 427,799 11,489 Agricultural 275,206 958 520 - 276,684 5,465 Commercial leases 96,415 - - - 96,415 938 Consumer and other 78,181 - 186 - 78,367 263 Unallocated - - - - - 400 Total loans and leases, net $ 3,200,251 $ 20,474 $ 16,452 $ - $ 3,237,177 $ 61,007 December 31, 2020 (Dollars in thousands) Pass Special Mention Sub- standard Doubtful Total Loans & Leases Total Allowance for Credit Losses Loans and leases held-for-investment, net Real estate: Commercial real estate $ 946,621 $ 7,849 $ 4,510 $ - $ 958,980 $ 27,679 Agricultural 631,043 400 11,571 - 643,014 8,633 Residential and home equity 332,747 - 871 - 333,618 2,984 Construction 185,741 - - - 185,741 1,643 Total real estate 2,096,152 8,249 16,952 - 2,121,353 40,939 Commercial & Industrial 373,038 1,060 718 - 374,816 9,961 Agricultural 263,781 96 495 - 264,372 4,814 Commercial leases 103,522 - - - 103,522 1,731 Consumer and other 235,063 - 466 - 235,529 333 Unallocated - - - - - 1,084 Total loans and leases, net $ 3,071,556 $ 9,405 $ 18,631 $ - $ 3,099,592 $ 58,862 |
Changes in Allowance for Credit Losses | Changes in the allowance for credit losses are as follows: Year Ended December 31, 2021 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Balance at beginning of year $ 36,312 $ 1,643 $ 2,984 $ 14,775 $ 1,731 $ 333 $ 1,084 $ 58,862 Provision / (recapture) for credit losses 1,837 (187 ) (235 ) 2,025 (793 ) (53 ) (684 ) 1,910 Charge-offs - - - - - (44 ) - (44 ) Recoveries - - 98 154 - 27 - 279 Net (charge-offs) / recoveries - - 98 154 - (17 ) - 235 Balance at end of year $ 38,149 $ 1,456 $ 2,847 $ 16,954 $ 938 $ 263 $ 400 $ 61,007 Year Ended December 31, 2020 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Balance at beginning of year $ 26,181 $ 1,949 $ 3,530 $ 19,542 $ 3,162 $ 456 $ 192 $ 55,012 Provision / (recapture) for credit losses 10,050 (306 ) (669 ) (3,946 ) (1,431 ) (90 ) 892 4,500 Charge-offs - - (7 ) (1,101 ) - (66 ) - (1,174 ) Recoveries 81 - 130 280 - 33 - 524 Net (charge-offs) / recoveries 81 - 123 (821 ) - (33 ) - (650 ) Balance at end of year $ 36,312 $ 1,643 $ 2,984 $ 14,775 $ 1,731 $ 333 $ 1,084 $ 58,862 Year Ended December 31, 2019 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Balance at beginning of year $ 25,701 $ 1,249 $ 3,641 $ 19,898 $ 4,022 $ 494 $ 261 $ 55,266 Provision / (recapture) for credit losses 442 700 (152 ) 146 (860 ) (7 ) (69 ) 200 Charge-offs - - - (592 ) - (83 ) - (675 ) Recoveries 38 - 41 90 - 52 - 221 Net (charge-offs) / recoveries 38 - 41 (502 ) - (31 ) - (454 ) Balance at end of year $ 26,181 $ 1,949 $ 3,530 $ 19,542 $ 3,162 $ 456 $ 192 $ 55,012 |
Allowance for Credit Loss and Outstanding Loan Balances | The ACL and outstanding loan balances reviewed according to the Company’s estimated credit loss methods were summarized as follows: December 31, 2021 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Total loans and leases Collectively evaluated for impairment $ 1,824,517 $ 177,163 $ 348,729 $ 703,725 $ 96,415 $ 78,193 $ - $ 3,228,742 Individually evaluated for impairment 5,651 - 1,852 758 - 174 - 8,435 Total loans and leases $ 1,830,168 $ 177,163 $ 350,581 $ 704,483 $ 96,415 $ 78,367 $ - $ 3,237,177 Allowance for credit losses: Collectively evaluated for impairment $ 38,149 $ 1,456 $ 2,755 $ 16,937 $ 938 $ 227 $ 400 $ 60,862 Individually evaluated for impairment - - 92 17 - 36 - 145 Total allowance for credit losses $ 38,149 $ 1,456 $ 2,847 $ 16,954 $ 938 $ 263 $ 400 $ 61,007 December 31, 2020 (Dollars in thousands) Commercial & Agricultural R/E Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer & Other Unallocated Total Allowance for credit losses: Total loans and leases Collectively evaluated for impairment $ 1,596,261 $ 185,741 $ 331,095 $ 638,460 $ 103,522 $ 235,275 $ - $ 3,090,354 Individually evaluated for impairment 5,733 - 2,523 728 - 254 - 9,238 Total loans and leases $ 1,601,994 $ 185,741 $ 333,618 $ 639,188 $ 103,522 $ 235,529 $ - $ 3,099,592 Allowance for credit losses: Collectively evaluated for impairment $ 36,312 $ 1,643 $ 2,859 $ 14,663 $ 1,731 $ 281 $ 1,084 $ 58,573 Individually evaluated for impairment - - 125 112 - 52 - 289 Total allowance for credit losses $ 36,312 $ 1,643 $ 2,984 $ 14,775 $ 1,731 $ 333 $ 1,084 $ 58,862 |
Summary of Information on Individually Evaluated Loans | Information on individually evaluated loans was summarized as follows: December 31, 2021 (Dollars in thousands) Unpaid Principal Balance With no Allowance With Allowance Total Recorded Investment Related Allowance Loans and leases individually evaluated: Real estate: Commercial real estate $ 45 $ 45 $ - $ 45 $ - Agricultural 5,606 5,606 - 5,606 - Residential and home equity 1,852 - 1,852 1,663 92 Construction - - - - - Total real estate 7,503 5,651 1,852 7,314 92 Commercial & Industrial 260 - 260 260 17 Agricultural 498 498 - 456 - Commercial leases - - - - - Consumer and other 174 - 174 173 36 Total gross loans and leases $ 8,435 $ 6,149 $ 2,286 $ 8,203 $ 145 December 31, 2020 (Dollars in thousands) Unpaid Principal Balance With no Allowance With Allowance Total Recorded Investment Related Allowance Loans and leases individually evaluated: Real estate: Commercial real estate $ 104 $ 104 $ - $ 104 $ - Agricultural 5,629 5,629 - 5,629 - Residential and home equity 2,523 - 2,523 2,288 125 Construction - - - - - Total real estate 8,256 5,733 2,523 8,021 125 Commercial & Industrial 233 - 233 233 20 Agricultural 495 3 492 453 92 Commercial leases - - - - - Consumer and other 254 63 191 253 52 Total gross loans and leases $ 9,238 $ 5,799 $ 3,439 $ 8,960 $ 289 |
Interest Income Recognized on Average Recorded Investment | Interest income recognized on the average recorded investment of individually evaluated loans was as follows: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Loans and leases individually evaluated: Real estate: Commercial real estate $ 80 $ 7 $ 812 $ 38 $ 4,595 $ 182 Agricultural 5,588 735 5,766 352 6,069 379 Residential and home equity 1,978 93 2,543 135 2,679 144 Construction - - - - - - Total real estate 7,646 835 9,121 525 13,343 705 Commercial & Industrial 232 20 500 34 1,562 54 Agricultural 585 58 907 102 195 6 Commercial leases - - - - - - Consumer and other 310 21 257 13 54 - Total loans and leases individually evaluated $ 8,773 $ 934 $ 10,785 $ 674 $ 15,154 $ 765 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment consisted of the following: December 31, (Dollars in thousands) 2021 2020 Premises and equipment: Buildings and land $ 59,325 $ 60,512 Furniture, fixtures, and equipment 21,775 21,011 Leasehold improvements 3,658 3,752 Other 527 474 Subtotal 85,285 85,749 Accumulated depreciation and amortization (37,555 ) (35,602 ) Total premises and equipment $ 47,730 $ 50,147 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Summary of Certificate of Deposits | Certificate of deposits greater than and less than or equal to the FDIC insurance limit are summarized as follows: December 31, (Dollars in thousands) 2021 2020 Certificate of deposits: Certificates of deposits less than or equal to $250,000 $ 223,620 $ 235,924 Certificates of deposits greater than $250,000 168,865 185,944 Total certificate of deposits $ 392,485 $ 421,868 |
Maturities for Certificates of Deposits | Scheduled maturities for certificates of deposit are as follows for the years ending December 31: (Dollars in thousands) Amount 2022 $ 354,754 2023 29,502 2024 5,171 2025 1,648 2026 and beyond 1,410 Total time deposits $ 392,485 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' Equity [Abstract] | |
Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s actual and required capital amounts and ratios are as follows: December 31, 2021 Actual Minimum Capital Requirement Well Capitalized Requirment (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmers & Merchants Bancorp CET1 capital to risk-weighted assets $ 450,687 11.68 % $ 173,674 4.50 % N/A N/A Tier 1 capital to risk-weighted assets 460,687 11.94 % 231,566 6.00 % N/A N/A Risk-based capital to risk-weighted assets 509,091 13.19 % 308,755 8.00 % N/A N/A Tier 1 leverage capital ratio 460,687 8.92 % 206,606 4.00 % N/A N/A Farmers & Merchants Bank CET1 capital to risk-weighted assets $ 459,813 11.91 % $ 173,664 4.50 % $ 250,847 6.50 % Tier 1 capital to risk-weighted assets 459,813 11.91 % 231,551 6.00 % 308,735 8.00 % Risk-based capital to risk-weighted assets 508,215 13.17 % 308,735 8.00 % 385,919 10.00 % Tier 1 leverage capital ratio 459,813 8.91 % 206,426 4.00 % 258,033 5.00 % December 31, 2020 Actual Minimum Capital Requirement Well Capitalized Requirment (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmers & Merchants Bancorp CET1 capital to risk-weighted assets $ 395,941 11.05 % $ 161,178 4.50 % N/A N/A Tier 1 capital to risk-weighted assets 405,941 11.33 % 214,904 6.00 % N/A N/A Risk-based capital to risk-weighted assets 450,890 12.59 % 286,539 8.00 % N/A N/A Tier 1 leverage capital ratio 405,941 9.13 % 177,820 4.00 % N/A N/A Farmers & Merchants Bank CET1 capital to risk-weighted assets $ 401,313 11.21 % $ 161,135 4.50 % $ 232,750 6.50 % Tier 1 capital to risk-weighted assets 401,313 11.21 % 214,846 6.00 % 286,462 8.00 % Risk-based capital to risk-weighted assets 446,251 12.46 % 286,462 8.00 % 358,077 10.00 % Tier 1 leverage capital ratio 401,313 9.04 % 177,605 4.00 % 222,006 5.00 % |
Earnings Per Common Share | Earnings per common share have been computed based on the following: Year Ended December 31, (Dollars in thousands, except share and per share amounts) 2021 2020 2019 Numerator Net income $ 66,336 $ 58,734 $ 56,036 Denominator Weighted average number of common shares outstanding 789,646 793,337 787,227 Weighted average number of dilutive shares outstanding 789,646 793,337 787,227 Basic earnings per common share $ 84.01 $ 74.03 $ 71.18 Diluted earning per commons share $ 84.01 $ 74.03 $ 71.18 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. December 31, 2021 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash and cash equivalents $ 715,460 $ 715,460 $ - $ - $ 715,460 Investment securities available-for-sale 270,454 10,214 260,240 - 270,454 Investment securities held-to-maturity 737,052 - 681,588 44,446 726,034 Non-marketable securities 15,549 - - 15,549 15,549 Loans and leases, net 3,176,170 - - 3,179,857 3,179,857 Bank-owned life insurance 71,411 71,411 - - 71,411 Financial Liabilities: Total deposits $ 4,640,152 $ 4,247,666 $ - $ 391,732 $ 4,639,398 Subordinated debentures 10,310 - 6,890 - 6,890 December 31, 2020 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Financial 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 Non-marketable securities 12,693 - - 12,693 12,693 Loans and leases, net 3,040,730 - - 3,045,911 3,045,911 Bank-owned life insurance 69,235 69,235 - - 69,235 Financial Liabilities: Total deposits $ 4,060,267 $ 3,638,400 $ - $ 422,840 $ 4,061,240 Subordinated debentures 10,310 - 6,888 - 6,888 |
Assets Measured at Fair Value on a Recurring and Non-recurring Basis | The following tables present information about the Bank’s assets and liabilities measured at fair value on a recurring and non-recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Bank to determine such fair value for the periods indicated. December 31, 2021 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Fair valued on a recurring basis: Investment securities available-for-sale U.S. Treasury notes $ 10,089 $ 10,089 $ - $ - $ 10,089 U.S. Government-sponsored securities 6,374 - 6,374 - 6,374 Mortgage-backed securities 251,120 - 251,120 - 251,120 Collateralized Mortgage Obligations 2,436 - 2,436 - 2,436 Other 435 125 310 - 435 Fair valued on a non-recurring basis: Individually evaluated loans $ 2,562 $ - $ - $ 2,562 $ 2,562 Other Real Estate 873 - - 873 873 December 31, 2020 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Fair valued on a recurring basis: Investment securities available-for-sale U.S. Treasury notes $ 15,288 $ 15,288 $ - $ - $ 15,288 U.S. Government-sponsored securities 8,160 - 8,160 - 8,160 Mortgage-backed securities 732,720 - 732,720 - 732,720 Collateralized Mortgage Obligations 5,153 - 5,153 - 5,153 Corporate securities 45,919 - 45,919 - 45,919 Other 492 182 310 - 492 Fair valued on a non-recurring basis: Individually evaluated loans $ 3,269 $ - $ - $ 3,269 $ 3,269 Other Real Estate 873 - - 873 873 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Off Balance Sheet Arrangements | The Company had the following off balance sheet commitments as of the dates indicated. December 31, (Dollars in thousands) 2021 2020 Commitments to extend credit, including unsecured commitments of $ 21,036 21,057 $ 937,009 $ 957,443 Stand-by letters of credit, including unsecured commitments of $ 9,091 10,945 17,880 18,846 Performance guarantees under interest rate swap contracts entered into our clients and third-parties 1,433 2,786 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Maturity of Remaining Lease Liability | The table below summarizes the maturity of remaining lease liability: (Dollars in thousands) Amount 2022 $ 701 2023 712 2024 728 2025 740 2026 1,601 Total lease payments 4,482 Discount (349 ) Net present value of lease liabilities $ 4,133 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Income tax expense / (benefit) Current: Federal $ 12,595 $ 12,174 $ 14,798 State 10,270 9,005 7,733 Total current expense 22,865 21,179 22,531 Deferred: Federal 59 (1,115 ) (3,500 ) State (939 ) (847 ) 246 Total current deferred benefit (880 ) (1,962 ) (3,254 ) Provision for income tax expense $ 21,985 $ 19,217 $ 19,277 |
Reconciliation of Federal and State Income Tax Expense with Statutory Corporate Tax Rate | The combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows: Year Ended December 31, 2021 2020 2019 (Dollars in thousands) Amount Rate Amount Rate Amount Rate Effective income tax rate Federal statutory rate $ 18,548 21.00 % $ 16,370 21.00 % $ 15,816 21.00 % State taxes, net of Federal income tax benefit 7,370 8.34 % 6,445 8.27 % 6,304 8.40 % Low-income housing tax credits (3,116 ) (3.53 %) (2,655 ) (3.41 %) (2,078 ) (2.80 %) Bank owned life insurance (471 ) (0.53 %) (444 ) (0.57 %) (460 ) (0.60 %) Tax-exempt interest income (347 ) (0.39 %) (350 ) (0.45 %) (358 ) (0.50 %) Other, net 1 (0.00 %) (149 ) (0.19 %) 53 0.10 % Total provision for income tax expense and effective tax rate $ 21,985 24.89 % $ 19,217 24.65 % $ 19,277 25.60 % |
Components of Net Deferred Income Tax Assets | The nature and components of the Company’s net deferred income tax assets are as follows: December 31, (Dollars in thousands) 2021 2020 Deferred income tax assets: Allowance for credit losses $ 18,129 $ 17,248 Deferred compensation 15,339 13,707 Accrued liabilities 9,415 8,526 State income taxes 2,157 1,891 Lease liabilities 1,222 1,454 Unrealized losses on debt securities 945 - SBA PPP loan fee income 764 1,367 Acquired net operating losses 614 643 Low-income housing tax investments 503 384 Acquired loans fair valuation 197 237 Acquired OREO fair valuation 108 108 Other 19 7 Total deferred income tax assets 49,412 45,572 Deferred income tax liabilities: Commercial leasing $ (17,892 ) $ (17,183 ) Unrealized gains on debt securities - (5,156 ) Premises and equipment (1,860 ) (1,684 ) Right of use leasing asset (1,197 ) (1,428 ) Core deposit intangible asset (1,006 ) (1,186 ) Deferred loan and lease costs (869 ) (692 ) Accretion on investment securities (523 ) (588 ) FHLB dividends (348 ) (348 ) Prepaid assets (43 ) (45 ) Other (132 ) (169 ) Total deferred income tax liabilities (23,870 ) (28,479 ) Net deferred income tax assets $ 25,542 $ 17,093 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Statements of Parent Company [Abstract] | |
Balance Sheets | Financial information pertaining only to Farmers and Merchants Bancorp (“FMCB”), on a parent-only basis, is as follows: December 31, (Dollars in thousands) 2021 2020 Balance Sheets Assets Cash and cash equivalents $ 1,535 $ 4,551 Investment in subsidiaries 472,573 429,347 Other assets 241 956 Total assets $ 474,349 $ 434,854 Liabilities and shareholders’ equity Subordinated debentures $ 10,310 $ 10,310 Other liabilities 903 879 Shareholders’ equity 463,136 423,665 Total liabilities and shareholders’ equity $ 474,349 $ 434,854 |
Statements of Income | Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Statements of Income Dividend and other income from subsidiaries $ 9,900 $ 19,874 $ 13,166 Interest and dividends 9 11 17 Total income 9,909 19,885 13,183 Reimbursement of expenses from subsidiaries 780 821 800 Other expenses 1,469 1,656 1,616 Total expense 2,249 2,477 2,416 Income before income taxes 7,660 17,408 10,767 Income tax benefit 660 729 698 8,320 18,137 11,465 Equity in undistributed net income of subsidiaries 58,016 40,597 44,571 Net income $ 66,336 $ 58,734 $ 56,036 |
Statements of Cash Flows | (Dollars in thousands) Year Ended December 31, Statements of Cash Flows 2021 2020 2019 Cash flows from operating activities: Net income $ 66,336 $ 58,734 $ 56,036 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of the Bank (58,016 ) (40,597 ) (44,571 ) Change in other assets and liabilities 739 (393 ) 62 Net cash provided by operating activities 9,059 17,744 11,527 Cash flows from investing activities: Payments for investments in non-qualified retirement plans - (403 ) (6,273 ) Net cash used in investing activities - (403 ) (6,273 ) Cash flows from financing activities: Common stock repurchases - (2,834 ) - Issuance of common stock - 403 6,973 Cash dividends paid (12,075 ) (11,700 ) (11,221 ) Net used in financing activities (12,075 ) (14,131 ) (4,248 ) Net change in cash and cash equivalents (3,016 ) 3,210 1,006 Cash and cash equivalents, beginning of year 4,551 1,341 335 Cash and cash equivalents, end of year $ 1,535 $ 4,551 $ 1,341 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies, Nature of Operations and Basis of Consolidation (Details) | Dec. 31, 2021OfficeATMs |
Nature of Operations and Basis of Consolidation [Abstract] | |
Number of banking offices | Office | 29 |
Number of ATMs | ATMs | 3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies, Loans and Leases Held for Investment and Allowance for Credit Losses (Details) | 12 Months Ended |
Dec. 31, 2021FactorCategory | |
Loans and Leases Held for Investment [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 | Category | 3 |
Number of categories into which risk ratings are grouped | Category | 5 |
Minimum [Member] | |
Loans and Leases Held for Investment [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 | Factor | 2 |
Agricultural [Member] | |
Allowance for Credit Losses [Abstract] | |
Number of risk factors on loans | Factor | 2 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies, Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings and Building Improvements [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 30 years |
Buildings and Building Improvements [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 |
Computer, Software and Equipment [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 3 years |
Computer, Software and Equipment [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful lives | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies, Basic and Diluted Earnings Per Common Share (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
Basic and Diluted Earnings Per Common Share [Abstract] | |
Common stock equivalent shares (in shares) | 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies, Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Advertising Costs [Abstract] | |||
Advertising costs | $ 1.1 | $ 0.9 | $ 1.3 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies, Impact of Recent Authoritative Accounting Guidance (Details) - ASU 2016-13 [Member] - Forecast [Member] | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Impact of recent authoritative accounting guidance [Abstract] | |
Percentage of adjustment to allowance for credit loss and reserve for unfunded loan commitments | (5.00%) |
Maximum [Member] | |
Impact of recent authoritative accounting guidance [Abstract] | |
Percentage of adjustment to allowance for credit loss and reserve for unfunded loan commitments | 5.00% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies, Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Feb. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | |||
Loans receivable | $ 3,247,911 | $ 3,111,533 | |
Paycheck Protection Program [Member] | |||
Subsequent Events [Abstract] | |||
Loans receivable | $ 70,800 | $ 224,300 | |
Subsequent Event [Member] | |||
Subsequent Events [Abstract] | |||
Common stock repurchased (in shares) | 4,500 | ||
Subsequent Event [Member] | Paycheck Protection Program [Member] | |||
Subsequent Events [Abstract] | |||
Loans originated | $ 497,000 | ||
Loans receivable | $ 32,400 |
Investment Securities, Securiti
Investment Securities, Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | $ 272,436 | $ 789,175 | |
Gross unrealized gains | 3,437 | 18,716 | |
Gross unrealized losses | 5,419 | 159 | |
Fair value | 270,454 | 807,732 | |
U.S. Treasury Notes [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | 9,938 | 14,859 | |
Gross unrealized gains | 151 | 429 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 10,089 | 15,288 | |
U.S. Government-sponsored Securities [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | 6,351 | 8,252 | |
Gross unrealized gains | 62 | 1 | |
Gross unrealized losses | 39 | 93 | |
Fair value | 6,374 | 8,160 | |
Mortgage-backed Securities [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | [1] | 253,300 | 715,523 |
Gross unrealized gains | [1] | 3,200 | 17,245 |
Gross unrealized losses | [1] | 5,380 | 48 |
Fair value | [1] | 251,120 | 732,720 |
Collateralized Mortgage Obligations [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | 2,412 | 5,039 | |
Gross unrealized gains | 24 | 114 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 2,436 | 5,153 | |
Corporate Securities [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | 45,010 | ||
Gross unrealized gains | 927 | ||
Gross unrealized losses | 18 | ||
Fair value | 45,919 | ||
Other [Member] | |||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | |||
Amortized cost | 435 | 492 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | $ 435 | $ 492 | |
[1] | All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. |
Investment Securities, Securi_2
Investment Securities, Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | |||
Amortized cost | $ 737,052 | $ 68,933 | |
Gross unrealized gains | 782 | 1,116 | |
Gross unrealized losses | 11,993 | 0 | |
Fair value | 725,841 | 70,049 | |
Municipal Securities [Member] | |||
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | |||
Amortized cost | 66,496 | 68,933 | |
Gross unrealized gains | 701 | 1,116 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 67,197 | $ 70,049 | |
Mortgage-backed Securities [Member] | |||
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | |||
Amortized cost | [1] | 596,775 | |
Gross unrealized gains | [1] | 45 | |
Gross unrealized losses | [1] | 11,764 | |
Fair value | [1] | 585,056 | |
Collateralized Mortgage Obligations [Member] | |||
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | |||
Amortized cost | 73,781 | ||
Gross unrealized gains | 36 | ||
Gross unrealized losses | 229 | ||
Fair value | $ 73,588 | ||
[1] | All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. |
Investment Securities, Gross Un
Investment Securities, Gross Unrealized Losses for Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | $ 61,652 | $ 25,924 | |
12 months or more, fair value | 106,496 | 6,303 | |
Fair value | 168,148 | 32,227 | |
Less than 12 months, unrealized losses | 1,192 | 66 | |
12 months or more, unrealized losses | 4,227 | 93 | |
Unrealized losses | 5,419 | 159 | |
U.S. Government-sponsored Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | 183 | 1,741 | |
12 months or more, fair value | 2,007 | 6,126 | |
Fair value | 2,190 | 7,867 | |
Less than 12 months, unrealized losses | 0 | 3 | |
12 months or more, unrealized losses | 39 | 90 | |
Unrealized losses | 39 | 93 | |
Mortgage-backed Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | [1] | 61,469 | 20,142 |
12 months or more, fair value | [1] | 104,489 | 177 |
Fair value | [1] | 165,958 | 20,319 |
Less than 12 months, unrealized losses | [1] | 1,192 | 45 |
12 months or more, unrealized losses | [1] | 4,188 | 3 |
Unrealized losses | [1] | $ 5,380 | 48 |
Corporate Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | 4,041 | ||
12 months or more, fair value | 0 | ||
Fair value | 4,041 | ||
Less than 12 months, unrealized losses | 18 | ||
12 months or more, unrealized losses | 0 | ||
Unrealized losses | $ 18 | ||
[1] | All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. |
Investment Securities, Gross _2
Investment Securities, Gross Unrealized Losses for Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 629,096 | ||
12 months or more, fair value | 0 | ||
Fair value | 629,096 | ||
Less than 12 months, unrealized losses | 11,993 | ||
12 months or more, unrealized losses | 0 | ||
Unrealized losses | 11,993 | $ 0 | |
Mortgage-backed Securities [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | [1] | 570,119 | |
12 months or more, fair value | [1] | 0 | |
Fair value | [1] | 570,119 | |
Less than 12 months, unrealized losses | [1] | 11,764 | |
12 months or more, unrealized losses | [1] | 0 | |
Unrealized losses | [1] | 11,764 | |
Collateralized Mortgage Obligations [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 58,977 | ||
12 months or more, fair value | 0 | ||
Fair value | 58,977 | ||
Less than 12 months, unrealized losses | 229 | ||
12 months or more, unrealized losses | 0 | ||
Unrealized losses | $ 229 | ||
[1] | All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. |
Investment Securities, Proceeds
Investment Securities, Proceeds from Sales and Calls of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Proceeds from sales and calls of securities [Abstract] | |||
Gross proceeds | $ 301,320 | $ 5,080 | $ 5,300 |
Gross gains | 5,570 | 40 | 1 |
Gross losses | $ 3,016 | $ 0 | $ 0 |
Investment Securities, Contract
Investment Securities, Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Amortized Cost [Abstract] | |||
One year or less | $ 5,430 | ||
After one year through five years | 5,094 | ||
After five years through ten years | 510 | ||
After ten years | 5,690 | ||
Amortized cost, excluding securities without single maturity date | 16,724 | ||
Amortized cost | 272,436 | $ 789,175 | |
Fair Value [Abstract] | |||
One year or less | 5,465 | ||
After one year through five years | 5,209 | ||
After five years through ten years | 512 | ||
After ten years | 5,711 | ||
Fair value, excluding investment securities not due at a single maturity date | 16,897 | ||
Fair value | 270,454 | 807,732 | |
Amortized Cost [Abstract] | |||
One year or less | 308 | ||
After one year through five years | 8,487 | ||
After five years through ten years | 18,433 | ||
After ten years | 39,268 | ||
Fair value, excluding securities without single maturity date | 66,496 | ||
Amortized cost | 737,052 | 68,933 | |
Fair Value [Abstract] | |||
One year or less | 308 | ||
After one year through five years | 8,528 | ||
After five years through ten years | 19,072 | ||
After ten years | 39,288 | ||
Fair value, excluding securities without single maturity date | 67,196 | ||
Fair value | 725,841 | 70,049 | |
Mortgage-backed Securities [Member] | |||
Amortized Cost [Abstract] | |||
Securities not due at a single maturity date | 253,300 | ||
Amortized cost | [1] | 253,300 | 715,523 |
Fair Value [Abstract] | |||
Securities not due at a single maturity date | 251,120 | ||
Fair value | [1] | 251,120 | 732,720 |
Amortized Cost [Abstract] | |||
Securities not due at a single maturity date | 596,775 | ||
Amortized cost | [1] | 596,775 | |
Fair Value [Abstract] | |||
Securities not due at a single maturity date | 585,056 | ||
Fair value | [1] | 585,056 | |
Collateralized Mortgage Obligations [Member] | |||
Amortized Cost [Abstract] | |||
Securities not due at a single maturity date | 2,412 | ||
Amortized cost | 2,412 | 5,039 | |
Fair Value [Abstract] | |||
Securities not due at a single maturity date | 2,437 | ||
Fair value | 2,436 | $ 5,153 | |
Amortized Cost [Abstract] | |||
Securities not due at a single maturity date | 73,781 | ||
Amortized cost | 73,781 | ||
Fair Value [Abstract] | |||
Securities not due at a single maturity date | 73,589 | ||
Fair value | $ 73,588 | ||
[1] | All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. |
Investment Securities, Debt Sec
Investment Securities, Debt Securities by Credit Quality Indicator (Details) $ in Thousands | Dec. 31, 2021USD ($)Security | Dec. 31, 2020USD ($) |
Available-for-sale Debt Securities by Credit Quality Indicator [Abstract] | ||
Amortized cost | $ 272,436 | $ 789,175 |
Gross unrealized gains | 3,437 | 18,716 |
Gross unrealized losses | 5,419 | 159 |
Fair value | 270,454 | 807,732 |
Held-to-Maturity Debt Securities by Credit Quality Indicator [Abstract] | ||
Amortized cost | 737,052 | 68,933 |
Gross unrealized gains | 782 | 1,116 |
Gross unrealized losses | 11,993 | 0 |
Fair value | $ 725,841 | $ 70,049 |
Investment Securities, Qualitative Disclosure [Abstract] | ||
Number of investment securities held | Security | 654 | |
Less than 12 months, number of positions | Security | 82 | |
12 months or more, number of positions | Security | 71 |
Investment Securities, Pledged
Investment Securities, Pledged Securities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investment Securities [Abstract] | ||
Carrying amount of pledged securities | $ 426 | $ 439.7 |
Federal Home Loan Bank Stock _2
Federal Home Loan Bank Stock and Other Non-Marketable Securities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank Stock and Other Non-Marketable Securities [Abstract] | ||
FHLB stock and other equity securities | $ 15.5 | $ 12.9 |
Loans and Leases, Components of
Loans and Leases, Components of Loans and Leases (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($)Loan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | $ 3,247,911 | $ 3,111,533 | |||
Unearned income | (10,734) | (11,941) | |||
Total net loans and leases | 3,237,177 | 3,099,592 | |||
Allowance for credit losses | (61,007) | (58,862) | $ (55,012) | $ (55,266) | |
Loans held for investment, net | 3,176,170 | 3,040,730 | |||
Collateral on borrowing lines | 767,000 | ||||
Maximum borrowing capacity | 1,400,000 | 1,300,000 | |||
Federal Home Loan Bank [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Collateral on borrowing lines | 1,100,000 | ||||
Maximum borrowing capacity | 837,100 | ||||
Federal Reserve Bank [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Collateral on borrowing lines | 767,000 | ||||
Maximum borrowing capacity | 480,400 | ||||
Paycheck Protection Program [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | 70,800 | 224,300 | |||
Loans funded for the small business customers | $ 494,390 | ||||
Number of small business customers | Loan | 2,680 | ||||
Real Estate [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | $ 2,368,090 | 2,133,699 | |||
Total net loans and leases | 2,357,912 | 2,121,353 | |||
Allowance for credit losses | (42,452) | (40,939) | |||
Commercial Real Estate [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | 1,167,516 | 971,326 | |||
Total net loans and leases | 1,157,338 | 958,980 | |||
Allowance for credit losses | (28,536) | (27,679) | |||
Agricultural [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | 672,830 | 643,014 | |||
Total net loans and leases | 672,830 | 643,014 | |||
Allowance for credit losses | (9,613) | (8,633) | |||
Residential and Home Equity [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | 350,581 | 333,618 | |||
Total net loans and leases | 350,581 | 333,618 | |||
Allowance for credit losses | (2,847) | (2,984) | (3,530) | (3,641) | |
Construction [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | 177,163 | 185,741 | |||
Total net loans and leases | 177,163 | 185,741 | |||
Allowance for credit losses | (1,456) | (1,643) | (1,949) | (1,249) | |
Commercial and Industrial [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | 427,799 | 374,816 | |||
Total net loans and leases | 427,799 | 374,816 | |||
Allowance for credit losses | (11,489) | (9,961) | |||
Agricultural [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | 276,684 | 264,372 | |||
Total net loans and leases | 276,684 | 264,372 | |||
Allowance for credit losses | (5,465) | (4,814) | |||
Commercial Leases [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | 96,971 | 103,117 | |||
Total net loans and leases | 96,415 | 103,522 | |||
Allowance for credit losses | (938) | (1,731) | (3,162) | (4,022) | |
Consumer and Other [Member] | |||||
Loan & Lease Portfolio [Abstract] | |||||
Total gross loans and leases | [1] | 78,367 | 235,529 | ||
Total net loans and leases | 78,367 | 235,529 | |||
Allowance for credit losses | $ (263) | $ (333) | $ (456) | $ (494) | |
[1] | Includes SBA PPP loans. |
Loans and Leases, Aging Analysi
Loans and Leases, Aging Analysis of Loan & Lease Portfolio Including Unearned Income (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | $ 0 | $ 0 |
Nonaccrual | 516 | 495 |
Total loans and leases, net | 3,237,177 | 3,099,592 |
Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 1,068 | 506 |
30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 552 | 11 |
Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 3,236,109 | 3,099,086 |
Real Estate [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 18 | 0 |
Total loans and leases, net | 2,357,912 | 2,121,353 |
Real Estate [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 566 | 0 |
Real Estate [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 548 | 0 |
Real Estate [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 2,357,346 | 2,121,353 |
Commercial Real Estate [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans and leases, net | 1,157,338 | 958,980 |
Commercial Real Estate [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 459 | 0 |
Commercial Real Estate [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 459 | 0 |
Commercial Real Estate [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 1,156,879 | 958,980 |
Agricultural [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 18 | 0 |
Total loans and leases, net | 672,830 | 643,014 |
Agricultural [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 18 | 0 |
Agricultural [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 0 | 0 |
Agricultural [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 672,812 | 643,014 |
Residential and Home Equity [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans and leases, net | 350,581 | 333,618 |
Residential and Home Equity [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 89 | 0 |
Residential and Home Equity [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 89 | 0 |
Residential and Home Equity [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 350,492 | 333,618 |
Construction [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans and leases, net | 177,163 | 185,741 |
Construction [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 0 | 0 |
Construction [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 0 | 0 |
Construction [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 177,163 | 185,741 |
Commercial and Industrial [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans and leases, net | 427,799 | 374,816 |
Commercial and Industrial [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 0 | 0 |
Commercial and Industrial [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 0 | 0 |
Commercial and Industrial [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 427,799 | 374,816 |
Agricultural [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 498 | 495 |
Total loans and leases, net | 276,684 | 264,372 |
Agricultural [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 498 | 495 |
Agricultural [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 0 | 0 |
Agricultural [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 276,186 | 263,877 |
Commercial Leases [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans and leases, net | 96,415 | 103,522 |
Commercial Leases [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 0 | 0 |
Commercial Leases [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 0 | 0 |
Commercial Leases [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 96,415 | 103,522 |
Consumer and Other [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans and leases, net | 78,367 | 235,529 |
Consumer and Other [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 4 | 11 |
Consumer and Other [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | 4 | 11 |
Consumer and Other [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Total loans and leases, net | $ 78,363 | $ 235,518 |
Loans and Leases, Non-accrual L
Loans and Leases, Non-accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | $ 516 | $ 495 |
Real Estate [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 18 | 0 |
Commercial Real Estate [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Agricultural [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 18 | 0 |
Residential and Home Equity [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Construction [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Commercial and Industrial [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Agricultural [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 498 | 495 |
Commercial Leases [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Consumer and Other [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual not TDRs [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 18 | 0 |
Nonaccrual not TDRs [Member] | Real Estate [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 18 | 0 |
Nonaccrual not TDRs [Member] | Commercial Real Estate [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual not TDRs [Member] | Agricultural [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 18 | 0 |
Nonaccrual not TDRs [Member] | Residential and Home Equity [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual not TDRs [Member] | Construction [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual not TDRs [Member] | Commercial and Industrial [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual not TDRs [Member] | Agricultural [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual not TDRs [Member] | Commercial Leases [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual not TDRs [Member] | Consumer and Other [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 498 | 495 |
Nonaccrual TDRs [Member] | Real Estate [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Commercial Real Estate [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Agricultural [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Residential and Home Equity [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Construction [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Commercial and Industrial [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Agricultural [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 498 | 495 |
Nonaccrual TDRs [Member] | Commercial Leases [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Consumer and Other [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | $ 0 | $ 0 |
Loans and Leases, Troubled Debt
Loans and Leases, Troubled Debt Restructured Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CARES Act [Abstract] | ||
Loans restructured under the CARES act | $ 278,100 | |
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 2,322 | $ 8,362 |
Accrual TDRs [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 1,824 | 7,867 |
Accrual TDRs [Member] | Real Estate [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 1,563 | 7,444 |
Accrual TDRs [Member] | Commercial Real Estate [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 41 | 84 |
Accrual TDRs [Member] | Agricultural [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 5,629 |
Accrual TDRs [Member] | Residential and Home Equity [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 1,522 | 1,731 |
Accrual TDRs [Member] | Construction [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Accrual TDRs [Member] | Commercial and Industrial [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 260 | 233 |
Accrual TDRs [Member] | Agricultural [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Accrual TDRs [Member] | Commercial Leases [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Accrual TDRs [Member] | Consumer and Other [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 1 | 190 |
Nonaccrual TDRs [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 498 | 495 |
Nonaccrual TDRs [Member] | Real Estate [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Commercial Real Estate [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Agricultural [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Residential and Home Equity [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Construction [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Commercial and Industrial [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Agricultural [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 498 | 495 |
Nonaccrual TDRs [Member] | Commercial Leases [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | 0 | 0 |
Nonaccrual TDRs [Member] | Consumer and Other [Member] | ||
Troubled Debt Restructuring Loans [Abstract] | ||
TDR loans and leases | $ 0 | $ 0 |
Loans and Leases, Outstanding L
Loans and Leases, Outstanding Loan Balances Categorized by Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | $ 3,237,177 | $ 3,099,592 | ||
Total Allowance for Credit Losses | 61,007 | 58,862 | $ 55,012 | $ 55,266 |
Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 3,200,251 | 3,071,556 | ||
Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 20,474 | 9,405 | ||
Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 16,452 | 18,631 | ||
Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Real Estate [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 2,357,912 | 2,121,353 | ||
Total Allowance for Credit Losses | 42,452 | 40,939 | ||
Real Estate [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 2,332,643 | 2,096,152 | ||
Real Estate [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 10,195 | 8,249 | ||
Real Estate [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 15,074 | 16,952 | ||
Real Estate [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Commercial Real Estate [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 1,157,338 | 958,980 | ||
Total Allowance for Credit Losses | 28,536 | 27,679 | ||
Commercial Real Estate [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 1,142,175 | 946,621 | ||
Commercial Real Estate [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 6,903 | 7,849 | ||
Commercial Real Estate [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 8,260 | 4,510 | ||
Commercial Real Estate [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Agricultural [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 672,830 | 643,014 | ||
Total Allowance for Credit Losses | 9,613 | 8,633 | ||
Agricultural [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 663,157 | 631,043 | ||
Agricultural [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 3,292 | 400 | ||
Agricultural [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 6,381 | 11,571 | ||
Agricultural [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Residential and Home Equity [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 350,581 | 333,618 | ||
Total Allowance for Credit Losses | 2,847 | 2,984 | 3,530 | 3,641 |
Residential and Home Equity [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 350,148 | 332,747 | ||
Residential and Home Equity [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Residential and Home Equity [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 433 | 871 | ||
Residential and Home Equity [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Construction [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 177,163 | 185,741 | ||
Total Allowance for Credit Losses | 1,456 | 1,643 | 1,949 | 1,249 |
Construction [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 177,163 | 185,741 | ||
Construction [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Construction [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Construction [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Commercial and Industrial [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 427,799 | 374,816 | ||
Total Allowance for Credit Losses | 11,489 | 9,961 | ||
Commercial and Industrial [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 417,806 | 373,038 | ||
Commercial and Industrial [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 9,321 | 1,060 | ||
Commercial and Industrial [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 672 | 718 | ||
Commercial and Industrial [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Agricultural [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 276,684 | 264,372 | ||
Total Allowance for Credit Losses | 5,465 | 4,814 | ||
Agricultural [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 275,206 | 263,781 | ||
Agricultural [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 958 | 96 | ||
Agricultural [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 520 | 495 | ||
Agricultural [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Commercial Leases [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 96,415 | 103,522 | ||
Total Allowance for Credit Losses | 938 | 1,731 | 3,162 | 4,022 |
Commercial Leases [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 96,415 | 103,522 | ||
Commercial Leases [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Commercial Leases [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Commercial Leases [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Consumer and Other [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 78,367 | 235,529 | ||
Total Allowance for Credit Losses | 263 | 333 | 456 | 494 |
Consumer and Other [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 78,181 | 235,063 | ||
Consumer and Other [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Consumer and Other [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 186 | 466 | ||
Consumer and Other [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Unallocated [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Total Allowance for Credit Losses | 400 | 1,084 | $ 192 | $ 261 |
Unallocated [Member] | Pass [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Unallocated [Member] | Special Mention [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Unallocated [Member] | Substandard [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | 0 | 0 | ||
Unallocated [Member] | Doubtful [Member] | ||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||
Total loans and leases, net | $ 0 | $ 0 |
Loans and Leases, Changes in Al
Loans and Leases, Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | $ 58,862 | $ 55,012 | $ 55,266 |
Provision / (recapture) for credit losses | 1,910 | 4,500 | 200 |
Charge-offs | (44) | (1,174) | (675) |
Recoveries | 279 | 524 | 221 |
Net (charge-offs) / recoveries | 235 | (650) | (454) |
Ending Balance | 61,007 | 58,862 | 55,012 |
Commercial & Agricultural R/E [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 36,312 | 26,181 | 25,701 |
Provision / (recapture) for credit losses | 1,837 | 10,050 | 442 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 81 | 38 |
Net (charge-offs) / recoveries | 0 | 81 | 38 |
Ending Balance | 38,149 | 36,312 | 26,181 |
Construction [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 1,643 | 1,949 | 1,249 |
Provision / (recapture) for credit losses | (187) | (306) | 700 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net (charge-offs) / recoveries | 0 | 0 | 0 |
Ending Balance | 1,456 | 1,643 | 1,949 |
Residential & Home Equity [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 2,984 | 3,530 | 3,641 |
Provision / (recapture) for credit losses | (235) | (669) | (152) |
Charge-offs | 0 | (7) | 0 |
Recoveries | 98 | 130 | 41 |
Net (charge-offs) / recoveries | 98 | 123 | 41 |
Ending Balance | 2,847 | 2,984 | 3,530 |
Commercial & Agricultural [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 14,775 | 19,542 | 19,898 |
Provision / (recapture) for credit losses | 2,025 | (3,946) | 146 |
Charge-offs | 0 | (1,101) | (592) |
Recoveries | 154 | 280 | 90 |
Net (charge-offs) / recoveries | 154 | (821) | (502) |
Ending Balance | 16,954 | 14,775 | 19,542 |
Commercial Leases [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 1,731 | 3,162 | 4,022 |
Provision / (recapture) for credit losses | (793) | (1,431) | (860) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net (charge-offs) / recoveries | 0 | 0 | 0 |
Ending Balance | 938 | 1,731 | 3,162 |
Consumer and Other [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 333 | 456 | 494 |
Provision / (recapture) for credit losses | (53) | (90) | (7) |
Charge-offs | (44) | (66) | (83) |
Recoveries | 27 | 33 | 52 |
Net (charge-offs) / recoveries | (17) | (33) | (31) |
Ending Balance | 263 | 333 | 456 |
Unallocated [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 1,084 | 192 | 261 |
Provision / (recapture) for credit losses | (684) | 892 | (69) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net (charge-offs) / recoveries | 0 | 0 | 0 |
Ending Balance | $ 400 | $ 1,084 | $ 192 |
Loans and Leases, ACL and Outst
Loans and Leases, ACL and Outstanding Loan Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and Leases [Abstract] | ||
Collectively evaluated for impairment | $ 3,228,742 | $ 3,090,354 |
Individually evaluated for impairment | 8,435 | 9,238 |
Total net loans and leases | 3,237,177 | 3,099,592 |
Allowance For Credit Losses [Abstract] | ||
Collectively evaluated for impairment | 60,862 | 58,573 |
Individually evaluated for impairment | 145 | 289 |
Total allowance for credit losses | 61,007 | 58,862 |
Commercial & Agricultural R/E [Member] | ||
Loans and Leases [Abstract] | ||
Collectively evaluated for impairment | 1,824,517 | 1,596,261 |
Individually evaluated for impairment | 5,651 | 5,733 |
Total net loans and leases | 1,830,168 | 1,601,994 |
Allowance For Credit Losses [Abstract] | ||
Collectively evaluated for impairment | 38,149 | 36,312 |
Individually evaluated for impairment | 0 | 0 |
Total allowance for credit losses | 38,149 | 36,312 |
Construction [Member] | ||
Loans and Leases [Abstract] | ||
Collectively evaluated for impairment | 177,163 | 185,741 |
Individually evaluated for impairment | 0 | 0 |
Total net loans and leases | 177,163 | 185,741 |
Allowance For Credit Losses [Abstract] | ||
Collectively evaluated for impairment | 1,456 | 1,643 |
Individually evaluated for impairment | 0 | 0 |
Total allowance for credit losses | 1,456 | 1,643 |
Residential & Home Equity [Member] | ||
Loans and Leases [Abstract] | ||
Collectively evaluated for impairment | 348,729 | 331,095 |
Individually evaluated for impairment | 1,852 | 2,523 |
Total net loans and leases | 350,581 | 333,618 |
Allowance For Credit Losses [Abstract] | ||
Collectively evaluated for impairment | 2,755 | 2,859 |
Individually evaluated for impairment | 92 | 125 |
Total allowance for credit losses | 2,847 | 2,984 |
Commercial & Agricultural [Member] | ||
Loans and Leases [Abstract] | ||
Collectively evaluated for impairment | 703,725 | 638,460 |
Individually evaluated for impairment | 758 | 728 |
Total net loans and leases | 704,483 | 639,188 |
Allowance For Credit Losses [Abstract] | ||
Collectively evaluated for impairment | 16,937 | 14,663 |
Individually evaluated for impairment | 17 | 112 |
Total allowance for credit losses | 16,954 | 14,775 |
Commercial Leases [Member] | ||
Loans and Leases [Abstract] | ||
Collectively evaluated for impairment | 96,415 | 103,522 |
Individually evaluated for impairment | 0 | 0 |
Total net loans and leases | 96,415 | 103,522 |
Allowance For Credit Losses [Abstract] | ||
Collectively evaluated for impairment | 938 | 1,731 |
Individually evaluated for impairment | 0 | 0 |
Total allowance for credit losses | 938 | 1,731 |
Consumer and Other [Member] | ||
Loans and Leases [Abstract] | ||
Collectively evaluated for impairment | 78,193 | 235,275 |
Individually evaluated for impairment | 174 | 254 |
Total net loans and leases | 78,367 | 235,529 |
Allowance For Credit Losses [Abstract] | ||
Collectively evaluated for impairment | 227 | 281 |
Individually evaluated for impairment | 36 | 52 |
Total allowance for credit losses | 263 | 333 |
Unallocated [Member] | ||
Loans and Leases [Abstract] | ||
Collectively evaluated for impairment | 0 | 0 |
Individually evaluated for impairment | 0 | 0 |
Total net loans and leases | 0 | 0 |
Allowance For Credit Losses [Abstract] | ||
Collectively evaluated for impairment | 400 | 1,084 |
Individually evaluated for impairment | 0 | 0 |
Total allowance for credit losses | $ 400 | $ 1,084 |
Loans and Leases, Summary of In
Loans and Leases, Summary of Individually Evaluated Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | $ 8,435 | $ 9,238 |
With no Allowance | 6,149 | 5,799 |
With Allowance | 2,286 | 3,439 |
Total Recorded Investment | 8,203 | 8,960 |
Related Allowance | 145 | 289 |
Real Estate [Member] | ||
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | 7,503 | 8,256 |
With no Allowance | 5,651 | 5,733 |
With Allowance | 1,852 | 2,523 |
Total Recorded Investment | 7,314 | 8,021 |
Related Allowance | 92 | 125 |
Commercial Real Estate [Member] | ||
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | 45 | 104 |
With no Allowance | 45 | 104 |
With Allowance | 0 | 0 |
Total Recorded Investment | 45 | 104 |
Related Allowance | 0 | 0 |
Agricultural [Member] | ||
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | 5,606 | 5,629 |
With no Allowance | 5,606 | 5,629 |
With Allowance | 0 | 0 |
Total Recorded Investment | 5,606 | 5,629 |
Related Allowance | 0 | 0 |
Residential and Home Equity [Member] | ||
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | 1,852 | 2,523 |
With no Allowance | 0 | 0 |
With Allowance | 1,852 | 2,523 |
Total Recorded Investment | 1,663 | 2,288 |
Related Allowance | 92 | 125 |
Construction [Member] | ||
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | 0 | 0 |
With no Allowance | 0 | 0 |
With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Commercial and Industrial [Member] | ||
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | 260 | 233 |
With no Allowance | 0 | 0 |
With Allowance | 260 | 233 |
Total Recorded Investment | 260 | 233 |
Related Allowance | 17 | 20 |
Agricultural [Member] | ||
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | 498 | 495 |
With no Allowance | 498 | 3 |
With Allowance | 0 | 492 |
Total Recorded Investment | 456 | 453 |
Related Allowance | 0 | 92 |
Commercial Leases [Member] | ||
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | 0 | 0 |
With no Allowance | 0 | 0 |
With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Consumer and Other [Member] | ||
Loans and Leases Individually Evaluated [Abstract] | ||
Unpaid Principal Balance | 174 | 254 |
With no Allowance | 0 | 63 |
With Allowance | 174 | 191 |
Total Recorded Investment | 173 | 253 |
Related Allowance | $ 36 | $ 52 |
Loans and Leases, Interest Inco
Loans and Leases, Interest Income Recognized on Average Recorded Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | $ 8,773 | $ 10,785 | $ 15,154 |
Interest Income Recognized | 934 | 674 | 765 |
Real Estate [Member] | |||
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | 7,646 | 9,121 | 13,343 |
Interest Income Recognized | 835 | 525 | 705 |
Commercial Real Estate [Member] | |||
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | 80 | 812 | 4,595 |
Interest Income Recognized | 7 | 38 | 182 |
Agricultural [Member] | |||
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | 5,588 | 5,766 | 6,069 |
Interest Income Recognized | 735 | 352 | 379 |
Residential and Home Equity [Member] | |||
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | 1,978 | 2,543 | 2,679 |
Interest Income Recognized | 93 | 135 | 144 |
Construction [Member] | |||
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Commercial and Industrial [Member] | |||
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | 232 | 500 | 1,562 |
Interest Income Recognized | 20 | 34 | 54 |
Agricultural [Member] | |||
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | 585 | 907 | 195 |
Interest Income Recognized | 58 | 102 | 6 |
Commercial Leases [Member] | |||
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Consumer and Other [Member] | |||
Loans and Leases Individually Evaluated [Abstract] | |||
Average Recorded Investment | 310 | 257 | 54 |
Interest Income Recognized | $ 21 | $ 13 | $ 0 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |||
Premises and equipment | $ 85,285,000 | $ 85,749,000 | |
Accumulated depreciation and amortization | (37,555,000) | (35,602,000) | |
Total premises and equipment | 47,730,000 | 50,147,000 | |
Depreciation and amortization | 2,632,000 | 2,769,000 | $ 2,756,000 |
Rental income | 491,000 | 434,000 | $ 183,000 |
Buildings and Land [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Premises and equipment | 59,325,000 | 60,512,000 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Premises and equipment | 21,775,000 | 21,011,000 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Premises and equipment | 3,658,000 | 3,752,000 | |
Other [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Premises and equipment | $ 527,000 | $ 474,000 |
Other Real Estate (Details)
Other Real Estate (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Other Real Estate [Abstract] | ||
Other real estate, net | $ 873,000 | $ 873,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Certification of deposits [Abstract] | ||
Certificates of deposits less than or equal to $250,000 | $ 223,620 | $ 235,924 |
Certificates of deposits greater than $250,000 | 168,865 | 185,944 |
Total certificate of deposits | 392,485 | 421,868 |
Maturities for Certificates of Deposits [Abstract] | ||
2022 | 354,754 | |
2023 | 29,502 | |
2024 | 5,171 | |
2025 | 1,648 | |
2026 and beyond | 1,410 | |
Total certificate of deposits | $ 392,485 | $ 421,868 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Borrowings Disclosure [Abstract] | ||
Lines of credit committed | $ 1,400 | $ 1,300 |
Average federal funds interest rate | 0.25% | |
Interest rate | 0.25% | |
Pledged loans with Federal Reserve Bank | $ 767 | |
Fed account borrowing capacity | 480.4 | |
Advances from FHLB | 0 | $ 0 |
FHLB of San Francisco [Member] | ||
Short-term Borrowings Disclosure [Abstract] | ||
Lines of credit committed | 837.1 | |
Debt instrument, collateral amount | $ 1,140 | |
Interest rate | 0.17% |
Long-term Subordinated Debent_2
Long-term Subordinated Debentures (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / shares | |
Subordinated Debentures [Abstract] | |
Guaranteed preferred beneficial interests | $ 10 |
Liquidation value (per capital security) | $ / shares | $ 1,000 |
Junior Subordinated Debentures [Member] | |
Subordinated Debentures [Abstract] | |
Junior subordinated debentures | $ 10.3 |
Debt instrument, maturity date | Dec. 17, 2033 |
Junior Subordinated Debentures [Member] | LIBOR [Member] | |
Subordinated Debentures [Abstract] | |
Term of variable rate | 3 months |
Basis spread on variable rate | 2.85% |
Shareholders' Equity, Complianc
Shareholders' Equity, Compliance with Regulatory Capital Requirements (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
CET1 capital to risk-weighted assets [Abstract] | ||
Actual Amount | $ 450,687 | $ 395,941 |
Minimum Capital Requirement, Amount | $ 173,674 | $ 161,178 |
CET1 capital to risk-weighted assets, Ratio [Abstract] | ||
Actual Ratio | 0.1168 | 0.1105 |
Minimum Capital Requirement, Ratio | 0.0450 | 0.0450 |
Tier 1 capital to risk-weighted assets [Abstract] | ||
Actual Amount | $ 460,687 | $ 405,941 |
Minimum Capital Requirement, Amount | $ 231,566 | $ 214,904 |
Tier 1 capital to risk-weighted assets, Ratio [Abstract] | ||
Actual Ratio | 0.1194 | 0.1133 |
Minimum Capital Requirement, Ratio | 0.0600 | 0.0600 |
Risk-based capital to risk-weighted assets [Abstract] | ||
Actual Amount | $ 509,091 | $ 450,890 |
Minimum Capital Requirement, Amount | $ 308,755 | $ 286,539 |
Risk-based capital to risk-weighted assets, Ratio [Abstract] | ||
Actual Ratio | 0.1319 | 0.1259 |
Minimum Capital Requirement, Ratio | 0.0800 | 0.0800 |
Tier 1 leverage capital ratio [Abstract] | ||
Actual Amount | $ 460,687 | $ 405,941 |
Minimum Capital Requirement, Amount | $ 206,606 | $ 177,820 |
Tier 1 leverage capital ratio, Ratio [Abstract] | ||
Actual Ratio | 0.0892 | 0.0913 |
Minimum Capital Requirement, Ratio | 0.0400 | 0.0400 |
Farmers & Merchants Bank [Member] | ||
CET1 capital to risk-weighted assets [Abstract] | ||
Actual Amount | $ 459,813 | $ 401,313 |
Minimum Capital Requirement, Amount | 173,664 | 161,135 |
Well Capitalized Requirement, Amount | $ 250,847 | $ 232,750 |
CET1 capital to risk-weighted assets, Ratio [Abstract] | ||
Actual Ratio | 0.1191 | 0.1121 |
Minimum Capital Requirement, Ratio | 0.0450 | 0.0450 |
Well Capitalized Requirement, Ratio | 0.0650 | 0.0650 |
Tier 1 capital to risk-weighted assets [Abstract] | ||
Actual Amount | $ 459,813 | $ 401,313 |
Minimum Capital Requirement, Amount | 231,551 | 214,846 |
Well Capitalized Requirement, Amount | $ 308,735 | $ 286,462 |
Tier 1 capital to risk-weighted assets, Ratio [Abstract] | ||
Actual Ratio | 0.1191 | 0.1121 |
Minimum Capital Requirement, Ratio | 0.0600 | 0.0600 |
Well Capitalized Requirement, Ratio | 0.0800 | 0.0800 |
Risk-based capital to risk-weighted assets [Abstract] | ||
Actual Amount | $ 508,215 | $ 446,251 |
Minimum Capital Requirement, Amount | 308,735 | 286,462 |
Well Capitalized Requirement, Amount | $ 385,919 | $ 358,077 |
Risk-based capital to risk-weighted assets, Ratio [Abstract] | ||
Actual Ratio | 0.1317 | 0.1246 |
Minimum Capital Requirement, Ratio | 0.0800 | 0.0800 |
Well Capitalized Requirement, Ratio | 0.1000 | 0.1000 |
Tier 1 leverage capital ratio [Abstract] | ||
Actual Amount | $ 459,813 | $ 401,313 |
Minimum Capital Requirement, Amount | 206,426 | 177,605 |
Well Capitalized Requirement, Amount | $ 258,033 | $ 222,006 |
Tier 1 leverage capital ratio, Ratio [Abstract] | ||
Actual Ratio | 0.0891 | 0.0904 |
Minimum Capital Requirement, Ratio | 0.0400 | 0.0400 |
Well Capitalized Requirement, Ratio | 0.0500 | 0.0500 |
Shareholders' Equity, Earnings
Shareholders' Equity, Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator [Abstract] | |||
Net income | $ 66,336 | $ 58,734 | $ 56,036 |
Denominator [Abstract] | |||
Weighted average number of common shares outstanding (in shares) | 789,646 | 793,337 | 787,227 |
Weighted average number of dilutive shares outstanding (in shares) | 789,646 | 793,337 | 787,227 |
Basic earnings per common share (in dollars per share) | $ 84.01 | $ 74.03 | $ 71.18 |
Diluted earning per commons share (in dollars per share) | $ 84.01 | $ 74.03 | $ 71.18 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Contributionshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | |
Executive Retirement Plan, Life Insurance Arrangements and Senior Management Retention Plan [Abstract] | |||
Net gains on deferred compensation plan investments | $ 2,614 | $ 1,777 | $ 2,625 |
Executive Officers [Member] | |||
Executive Retirement Plan, Life Insurance Arrangements and Senior Management Retention Plan [Abstract] | |||
Employer contribution | 9,000 | 6,800 | 6,600 |
Carrying value of liability | $ 63,900 | $ 56,700 | |
Common stock held as investments in Rabbi Trust of ERP (in shares) | shares | 55,436 | 52,980 | |
Common stock held as investments in Rabbi Trust of ERP, historical cost basis amount | $ 33,200 | $ 31,200 | |
Net gains on deferred compensation plan investments | 2,500 | 1,800 | 2,600 |
Senior Level Employees [Member] | Senior Management Retention Plan [Member] | |||
Executive Retirement Plan, Life Insurance Arrangements and Senior Management Retention Plan [Abstract] | |||
Employer contribution | 2,700 | 2,300 | 1,300 |
Carrying value of liability | $ 11,100 | $ 8,600 | |
Common stock held as investments in Rabbi Trust of ERP (in shares) | shares | 14,192 | 12,548 | |
Common stock held as investments in Rabbi Trust of ERP, historical cost basis amount | $ 9,500 | $ 7,900 | |
Net gains on deferred compensation plan investments | $ 100 | 100 | 0 |
Profit Sharing Plan [Member] | |||
Profit Sharing Plan [Abstract] | |||
Minimum requisite service period | 1 year | ||
Number of annual employer contribution | Contribution | 2 | ||
Employer discretionary contribution amount | $ 1,600 | 1,500 | 1,400 |
Employer mandatory contributions amount | $ 1,700 | $ 1,700 | $ 1,600 |
Annual vesting percentage, first year | 0.00% | ||
Annual vesting percentage, full year thereafter | 25.00% | ||
Benefit vesting period | 5 years |
Fair Value Measurements, Summar
Fair Value Measurements, Summary (Details) | 12 Months Ended |
Dec. 31, 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Assets [Abstract] | ||
Investment securities available-for-sale | $ 270,454 | $ 807,732 |
Recurring [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 715,460 | 383,837 |
Investment securities available-for-sale | 270,454 | 807,732 |
Investment securities held-to-maturity | 726,034 | 70,049 |
Non-marketable securities | 15,549 | 12,693 |
Loans and leases, net | 3,179,857 | 3,045,911 |
Bank-owned life insurance | 71,411 | 69,235 |
Financial Liabilities [Abstract] | ||
Total deposits | 4,639,398 | 4,061,240 |
Subordinated debentures | 6,890 | 6,888 |
Recurring [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 715,460 | 383,837 |
Investment securities available-for-sale | 10,214 | 15,470 |
Investment securities held-to-maturity | 0 | 0 |
Non-marketable securities | 0 | 0 |
Loans and leases, net | 0 | 0 |
Bank-owned life insurance | 71,411 | 69,235 |
Financial Liabilities [Abstract] | ||
Total deposits | 4,247,666 | 3,638,400 |
Subordinated debentures | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 260,240 | 792,262 |
Investment securities held-to-maturity | 681,588 | 26,262 |
Non-marketable securities | 0 | 0 |
Loans and leases, net | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Total deposits | 0 | 0 |
Subordinated debentures | 6,890 | 6,888 |
Recurring [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Investment securities held-to-maturity | 44,446 | 43,787 |
Non-marketable securities | 15,549 | 12,693 |
Loans and leases, net | 3,179,857 | 3,045,911 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Total deposits | 391,732 | 422,840 |
Subordinated debentures | 0 | 0 |
Recurring [Member] | Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 715,460 | 383,837 |
Investment securities available-for-sale | 270,454 | 807,732 |
Investment securities held-to-maturity | 737,052 | 68,933 |
Non-marketable securities | 15,549 | 12,693 |
Loans and leases, net | 3,176,170 | 3,040,730 |
Bank-owned life insurance | 71,411 | 69,235 |
Financial Liabilities [Abstract] | ||
Total deposits | 4,640,152 | 4,060,267 |
Subordinated debentures | $ 10,310 | $ 10,310 |
Fair Value Measurements, Asse_2
Fair Value Measurements, Assets Measured at Fair Value on a Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | $ 270,454 | $ 807,732 | |
U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 10,089 | 15,288 | |
Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | [1] | 251,120 | 732,720 |
Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 45,919 | ||
Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 435 | 492 | |
Recurring [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 270,454 | 807,732 | |
Recurring [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 10,089 | 15,288 | |
Recurring [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 6,374 | 8,160 | |
Recurring [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 251,120 | 732,720 | |
Recurring [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 2,436 | 5,153 | |
Recurring [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 45,919 | ||
Recurring [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 435 | 492 | |
Recurring [Member] | Level 1 [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 10,214 | 15,470 | |
Recurring [Member] | Level 1 [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 10,089 | 15,288 | |
Recurring [Member] | Level 1 [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | ||
Recurring [Member] | Level 1 [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 125 | 182 | |
Recurring [Member] | Level 2 [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 260,240 | 792,262 | |
Recurring [Member] | Level 2 [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Level 2 [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 6,374 | 8,160 | |
Recurring [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 251,120 | 732,720 | |
Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 2,436 | 5,153 | |
Recurring [Member] | Level 2 [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 45,919 | ||
Recurring [Member] | Level 2 [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 310 | 310 | |
Recurring [Member] | Level 3 [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | ||
Recurring [Member] | Level 3 [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring [Member] | Carrying Amount [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 270,454 | 807,732 | |
Recurring [Member] | Carrying Amount [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 10,089 | 15,288 | |
Recurring [Member] | Carrying Amount [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 6,374 | 8,160 | |
Recurring [Member] | Carrying Amount [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 251,120 | 732,720 | |
Recurring [Member] | Carrying Amount [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 2,436 | 5,153 | |
Recurring [Member] | Carrying Amount [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 45,919 | ||
Recurring [Member] | Carrying Amount [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Investment securities available-for-sale | 435 | 492 | |
Nonrecurring [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Individually evaluated loans | 2,562 | 3,269 | |
Other Real Estate | 873 | 873 | |
Nonrecurring [Member] | Level 1 [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Individually evaluated loans | 0 | 0 | |
Other Real Estate | 0 | 0 | |
Nonrecurring [Member] | Level 2 [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Individually evaluated loans | 0 | 0 | |
Other Real Estate | 0 | 0 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Individually evaluated loans | 2,562 | 3,269 | |
Other Real Estate | 873 | 873 | |
Nonrecurring [Member] | Carrying Amount [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Individually evaluated loans | 2,562 | 3,269 | |
Other Real Estate | $ 873 | $ 873 | |
[1] | All mortgage-backed securities were issued by an agency or government sponsored entity of the U.S. Government. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Minimum [Member] | ||
Off Balance Sheet Commitments [Abstract] | ||
Off balance sheet risks maturity period | 1 month | |
Maximum [Member] | ||
Off Balance Sheet Commitments [Abstract] | ||
Off balance sheet risks maturity period | 60 months | |
Commitments to Extend Credit [Member] | ||
Off Balance Sheet Commitments [Abstract] | ||
Off-balance sheet risks, amount, liability | $ 937,009 | $ 957,443 |
Unsecured commitments | 21,036 | 21,057 |
Stand-by Letters of Credit [Member] | ||
Off Balance Sheet Commitments [Abstract] | ||
Off-balance sheet risks, amount, liability | 17,880 | 18,846 |
Unsecured commitments | 9,091 | 10,945 |
Performance Guarantees under Interest Rate Swap Contracts Entered into our Clients and Third-Parties [Member] | ||
Off Balance Sheet Commitments [Abstract] | ||
Off-balance sheet risks, amount, liability | $ 1,433 | $ 2,786 |
Leases, Summary (Details)
Leases, Summary (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Leases [Abstract] | |||
Operating lease ROU assets | $ 4,050,000 | $ 4,800,000 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Operating lease liability | $ 4,133,000 | $ 4,920,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | fmcb:InterestPayableAndOtherLiabilities | fmcb:InterestPayableAndOtherLiabilities | |
Operating lease cost | $ 739,000 | $ 833,000 | $ 836,000 |
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, Maturity of Remaining L
Leases, Maturity of Remaining Lease Liability (Details) $ in Thousands | Dec. 31, 2021USD ($)Lease | Dec. 31, 2020USD ($) |
Maturity of Remaining Lease Liability [Abstract] | ||
2022 | $ 701 | |
2023 | 712 | |
2024 | 728 | |
2025 | 740 | |
2026 and beyond | 1,601 | |
Total lease payments | 4,482 | |
Discount | (349) | |
Net present value of lease liabilities | $ 4,133 | $ 4,920 |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Lessor - Direct Financing Leases [Abstract] | ||
Net investment in direct financing leases | $ 96.4 | $ 103.5 |
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 |
Income Taxes, Components of Inc
Income Taxes, Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: [Abstract] | |||
Federal | $ 12,595 | $ 12,174 | $ 14,798 |
State | 10,270 | 9,005 | 7,733 |
Total current expense | 22,865 | 21,179 | 22,531 |
Deferred: [Abstract] | |||
Federal | 59 | (1,115) | (3,500) |
State | (939) | (847) | 246 |
Total current deferred benefit | (880) | (1,962) | (3,254) |
Provision for income tax expense | $ 21,985 | $ 19,217 | $ 19,277 |
Income Taxes, Effective Income
Income Taxes, Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal statutory rate | $ 18,548 | $ 16,370 | $ 15,816 |
State taxes, net of Federal income tax benefit | 7,370 | 6,445 | 6,304 |
Low-income housing tax credits | (3,116) | (2,655) | (2,078) |
Bank owned life insurance | (471) | (444) | (460) |
Tax-exempt interest income | (347) | (350) | (358) |
Other, net | 1 | (149) | 53 |
Provision for income tax expense | $ 21,985 | $ 19,217 | $ 19,277 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State taxes, net of Federal income tax benefit | 8.34% | 8.27% | 8.40% |
Low-income housing tax credits | (3.53%) | (3.41%) | (2.80%) |
Bank owned life insurance | (0.53%) | (0.57%) | (0.60%) |
Tax-exempt interest income | (0.39%) | (0.45%) | (0.50%) |
Other, net | 0.00% | (0.19%) | 0.10% |
Total effective tax rate | 24.89% | 24.65% | 25.60% |
Income Taxes, Components of Net
Income Taxes, Components of Net Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income tax assets: [Abstract] | ||
Allowance for credit losses | $ 18,129 | $ 17,248 |
Deferred compensation | 15,339 | 13,707 |
Accrued liabilities | 9,415 | 8,526 |
State income taxes | 2,157 | 1,891 |
Lease liabilities | 1,222 | 1,454 |
Unrealized losses on debt securities | 945 | 0 |
SBA PPP loan fee income | 764 | 1,367 |
Acquired net operating losses | 614 | 643 |
Low-income housing tax investments | 503 | 384 |
Acquired loans fair valuation | 197 | 237 |
Acquired OREO fair valuation | 108 | 108 |
Other | 19 | 7 |
Total deferred income tax assets | 49,412 | 45,572 |
Deferred income tax liabilities: [Abstract] | ||
Commercial leasing | (17,892) | (17,183) |
Unrealized gains on debt securities | 0 | (5,156) |
Premises and equipment | (1,860) | (1,684) |
Right of use leasing asset | (1,197) | (1,428) |
Core deposit intangible asset | (1,006) | (1,186) |
Deferred loan and lease costs | (869) | (692) |
Accretion on investment securities | (523) | (588) |
FHLB dividends | (348) | (348) |
Prepaid assets | (43) | (45) |
Other | (132) | (169) |
Total deferred income tax liabilities | (23,870) | (28,479) |
Net deferred income tax assets | $ 25,542 | $ 17,093 |
Income Taxes, Valuation Allowan
Income Taxes, Valuation Allowance, Income Tax Uncertainties and Loss Carryforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||
Valuation allowance | $ 0 | $ 0 |
Uncertain tax positions | $ 0 | 0 |
Tax years remain subject to selection for examination | 2017 2018 2019 2020 2021 | |
Net operating loss | $ 2,000 | 2,100 |
Tax credit carry-forwards | $ 0 | $ 0 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company, Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 715,460 | $ 383,837 | ||
Other assets | 84,796 | 63,651 | ||
TOTAL ASSETS | 5,177,720 | 4,550,453 | ||
Liabilities and shareholders' equity [Abstract] | ||||
Subordinated debentures | 10,310 | 10,310 | ||
Other liabilities | 64,122 | 56,211 | ||
Shareholders' equity | 463,136 | 423,665 | $ 369,296 | $ 311,215 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,177,720 | 4,550,453 | ||
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 1,535 | 4,551 | ||
Investment in subsidiaries | 472,573 | 429,347 | ||
Other assets | 241 | 956 | ||
TOTAL ASSETS | 474,349 | 434,854 | ||
Liabilities and shareholders' equity [Abstract] | ||||
Subordinated debentures | 10,310 | 10,310 | ||
Other liabilities | 903 | 879 | ||
Shareholders' equity | 463,136 | 423,665 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 474,349 | $ 434,854 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company, Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statements of Income [Abstract] | |||
Interest and dividends | $ 165,268 | $ 159,294 | $ 154,622 |
Income before income taxes | 88,321 | 77,951 | 75,313 |
Income tax benefit | (21,985) | (19,217) | (19,277) |
Equity in undistributed net income of subsidiaries | 58,016 | 40,597 | 44,571 |
NET INCOME | 66,336 | 58,734 | 56,036 |
Parent Company [Member] | |||
Statements of Income [Abstract] | |||
Dividend and other income from subsidiaries | 9,900 | 19,874 | 13,166 |
Interest and dividends | 9 | 11 | 17 |
Total income | 9,909 | 19,885 | 13,183 |
Reimbursement of expenses from subsidiaries | 780 | 821 | 800 |
Other expenses | 1,469 | 1,656 | 1,616 |
Total expense | 2,249 | 2,477 | 2,416 |
Income before income taxes | 7,660 | 17,408 | 10,767 |
Income tax benefit | 660 | 729 | 698 |
Income before equity in net income of subsidiaries | 8,320 | 18,137 | 11,465 |
Equity in undistributed net income of subsidiaries | 58,016 | 40,597 | 44,571 |
NET INCOME | $ 66,336 | $ 58,734 | $ 56,036 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company, Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities [Abstract] | |||
Net income | $ 66,336 | $ 58,734 | $ 56,036 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Equity in undistributed net income of the Bank | (58,016) | (40,597) | (44,571) |
Net cash provided by operating activities | 59,963 | 58,119 | 80,858 |
Cash flows from investing activities [Abstract] | |||
Net cash used in investing activities | (296,150) | (736,754) | (135,630) |
Cash flows from financing activities [Abstract] | |||
Common stock repurchases | 0 | (2,834) | 0 |
Cash dividends paid | (12,075) | (11,700) | (11,221) |
Net provided by financing activities | 567,810 | 767,714 | 203,966 |
Net change in cash and cash equivalents | 331,623 | 89,079 | 149,194 |
Cash and cash equivalents, beginning of year | 383,837 | 294,758 | 145,564 |
Cash and cash equivalents, end of year | 715,460 | 383,837 | 294,758 |
Parent Company [Member] | |||
Cash flows from operating activities [Abstract] | |||
Net income | 66,336 | 58,734 | 56,036 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Equity in undistributed net income of the Bank | (58,016) | (40,597) | (44,571) |
Change in other assets and liabilities | 739 | (393) | 62 |
Net cash provided by operating activities | 9,059 | 17,744 | 11,527 |
Cash flows from investing activities [Abstract] | |||
Payments for investments in non-qualified retirement plans | 0 | (403) | (6,273) |
Net cash used in investing activities | 0 | (403) | (6,273) |
Cash flows from financing activities [Abstract] | |||
Common stock repurchases | 0 | (2,834) | 0 |
Issuance of common stock | 0 | 403 | 6,973 |
Cash dividends paid | (12,075) | (11,700) | (11,221) |
Net provided by financing activities | (12,075) | (14,131) | (4,248) |
Net change in cash and cash equivalents | (3,016) | 3,210 | 1,006 |
Cash and cash equivalents, beginning of year | 4,551 | 1,341 | 335 |
Cash and cash equivalents, end of year | $ 1,535 | $ 4,551 | $ 1,341 |