Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | MIDWESTONE FINANCIAL GROUP, INC. | ||
Entity Central Index Key | 1,412,665 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 269.3 | ||
Entity Common Stock, Shares Outstanding | 11,425,035 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash and due from banks | $ 44,199 | $ 23,028 |
Interest-bearing deposits in banks | 2,731 | 381 |
Federal funds sold | 167 | |
Cash and cash equivalents | 47,097 | 23,409 |
Investment securities: | ||
Available for sale | 427,241 | 474,942 |
Held to maturity (fair value of $118,234 as of December 31, 2015 and $51,253 as of December 31, 2014) | 118,423 | 51,524 |
Loans held for sale | 3,187 | 801 |
Loans | 2,151,942 | 1,132,519 |
Allowance for loan losses | (19,427) | (16,363) |
Net loans | 2,132,515 | 1,116,156 |
Loan pool participations, net | 0 | 19,332 |
Premises and equipment, net | 76,202 | 37,770 |
Accrued interest receivable | 13,736 | 10,898 |
Goodwill | 64,548 | 0 |
Other intangible assets, net | 19,141 | 8,259 |
Bank-owned life insurance | 46,295 | 38,142 |
Other real estate owned | 8,834 | 1,916 |
Deferred income taxes | 947 | 3,078 |
Other assets | 21,809 | 14,075 |
Total assets | 2,979,975 | 1,800,302 |
Deposits: | ||
Non-interest-bearing demand | 559,586 | 214,461 |
Interest-bearing checking | 1,064,350 | 618,540 |
Savings | 189,489 | 102,527 |
Certificates of deposit under $100,000 | 348,268 | 235,395 |
Certificates of deposit $100,000 and over | 301,828 | 237,619 |
Total deposits | 2,463,521 | 1,408,542 |
Federal funds purchased | 1,500 | 17,408 |
Securities sold under agreements to repurchase | 67,463 | 60,821 |
Federal Home Loan Bank borrowings | 87,000 | 93,000 |
Junior subordinated notes issued to capital trusts | 23,587 | 15,464 |
Long-term debt | 22,500 | 0 |
Deferred compensation liability | 5,132 | 3,393 |
Accrued interest payable | 1,507 | 863 |
Other liabilities | 11,587 | 8,080 |
Total liabilities | $ 2,683,797 | $ 1,607,571 |
Commitments and contingencies (Note 18) | ||
Shareholders' Equity: | ||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding at December 31, 2015 and December 31, 2014 | $ 0 | $ 0 |
Common stock, $1.00 par value; authorized 15,000,000 shares at December 31, 2015 and December 31, 2014; issued 11,713,481 shares at December 31, 2015 and 8,690,398 shares at December 31, 2014; outstanding 11,408,773 shares at December 31, 2015 and 8,355,666 shares at December 31, 2014 | 11,713 | 8,690 |
Additional paid-in capital | 163,487 | 80,537 |
Treasury stock at cost, 304,708 shares as of December 31, 2015 and 334,732 shares at December 31, 2014 | (6,331) | (6,945) |
Retained earnings | 123,901 | 105,127 |
Accumulated other comprehensive income | 3,408 | 5,322 |
Total shareholders’ equity | 296,178 | 192,731 |
Total liabilities and shareholders’ equity | $ 2,979,975 | $ 1,800,302 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical Parentheticals - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Estimated fair value of investment securities held to maturity | $ 118,234 | $ 51,253 |
Shareholders' equity: | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 11,713,481 | 8,690,398 |
Common stock, shares outstanding | 11,408,773 | 8,355,666 |
Shares of Treasury stock | 304,708 | 334,732 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Interest income: | ||||
Interest and fees on loans | $ 86,544 | $ 48,466 | $ 48,828 | |
Interest and discount on loan pool participations | 798 | 1,516 | 2,046 | |
Interest on bank deposits | 70 | 38 | 16 | |
Interest on federal funds sold | 1 | 8 | 1 | |
Interest on investment securities: | ||||
Taxable securities | 7,734 | 8,921 | 9,905 | |
Tax-exempt securities | 5,553 | 5,455 | 5,298 | |
Total interest income | 100,700 | 64,404 | 66,094 | |
Interest expense: | ||||
Interest-bearing checking | 2,627 | 2,168 | 2,362 | |
Savings | 360 | 145 | 140 | |
Certificates of deposit under $100,000 | 2,445 | 2,701 | 4,239 | |
Certificates of deposit $100,000 and over | 2,406 | 2,013 | 2,214 | |
Total interest expense on deposits | 7,838 | 7,027 | 8,955 | |
Interest on federal funds purchased | 34 | 8 | 38 | |
Interest on securities sold under agreements to repurchase | 176 | 119 | 128 | |
Interest on Federal Home Loan Bank borrowings | 1,451 | 2,092 | 2,686 | |
Interest on other borrowings | 22 | 24 | 29 | |
Interest on junior subordinated notes issued to capital trusts | 592 | 281 | 296 | |
Interest on subordinated notes | 162 | 0 | 0 | |
Interest on long-term debt | 373 | 0 | 0 | |
Total interest expense | 10,648 | 9,551 | 12,132 | |
Net interest income | 90,052 | 54,853 | 53,962 | |
Provision for loan losses | 5,132 | 1,200 | 1,350 | |
Net interest income after provision for loan losses | 84,920 | 53,653 | 52,612 | |
Noninterest income: | ||||
Trust, investment, and insurance fees | 6,005 | 5,771 | 5,345 | |
Service charges and fees on deposit accounts | 4,401 | 3,279 | 2,980 | |
Mortgage origination and loan servicing fees | 2,756 | 1,554 | 3,209 | |
Other service charges, commissions and fees | 5,742 | 2,381 | 2,210 | |
Bank-owned life insurance income | 1,307 | 1,102 | 922 | |
Gain on sale or call of available for sale securities | 1,011 | 1,227 | 65 | |
Loss on sale of premises and equipment | (29) | (1) | (3) | |
Total noninterest income | 21,193 | 15,313 | 14,728 | |
Noninterest expense: | ||||
Salaries and employee benefits | 41,865 | 24,918 | 24,596 | |
Net occupancy and equipment expense | 9,975 | 6,293 | 6,356 | |
Professional fees | 4,929 | 3,606 | 2,622 | |
Data processing expense | 2,659 | 1,565 | 1,452 | |
FDIC Insurance expense | 1,397 | 964 | 1,066 | |
Amortization of intangible assets | 3,271 | 547 | 663 | |
Other operating expense | 9,080 | 5,520 | 5,332 | |
Total noninterest expense | 73,176 | [1] | 43,413 | 42,087 |
Income before income tax expense | 32,937 | 25,553 | 25,253 | |
Income tax expense | 7,819 | 7,031 | 6,646 | |
Net income | $ 25,118 | $ 18,522 | $ 18,607 | |
Earnings per share: | ||||
Earnings per share, basic | $ 2.42 | $ 2.20 | $ 2.19 | |
Earnings per share, diluted | $ 2.42 | $ 2.19 | $ 2.18 | |
[1] | (1) Includes merger-related expenses of $3.5 million and $1.1 million for the year ended December 31, 2015 and December 31, 2014, respectively, included in the All Other segment. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 25,118 | $ 18,522 | $ 18,607 |
Other comprehensive income, available for sale securities: | |||
Unrealized holding gains (losses) arising during period | (2,046) | 8,114 | (15,920) |
Reclassification adjustment for gains included in net income | (1,011) | (1,227) | (65) |
Income tax expense (benefit) | (1,143) | 2,614 | (5,984) |
Other comprehensive income (loss) on available for sale securities | (1,914) | 4,273 | (10,001) |
Total other comprehensive income (loss) | (1,914) | 4,273 | (10,001) |
Comprehensive income | $ 23,204 | $ 22,795 | $ 8,606 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2012 | $ 173,932 | $ 0 | $ 8,690 | $ 80,383 | $ (3,316) | $ 77,125 | $ 11,050 |
Net income | 18,607 | 18,607 | |||||
Dividends paid on common stock | (4,259) | (4,259) | |||||
Stock options exercised | 305 | 9 | 296 | ||||
Release/lapse of restriction on RSUs | 15 | (270) | 285 | ||||
Repurchase of common stock | (967) | (967) | |||||
Stock compensation | 384 | 384 | |||||
Other comprehensive Income (loss), net of tax | (10,001) | (10,001) | |||||
Balance at Dec. 31, 2013 | 178,016 | 0 | 8,690 | 80,506 | (3,702) | 91,473 | 1,049 |
Net income | 18,522 | 18,522 | |||||
Dividends paid on common stock | (4,868) | (4,868) | |||||
Stock options exercised | 259 | (26) | 285 | ||||
Release/lapse of restriction on RSUs | 23 | (436) | 459 | ||||
Repurchase of common stock | (3,987) | (3,987) | |||||
Stock compensation | 493 | 493 | |||||
Other comprehensive Income (loss), net of tax | 4,273 | 4,273 | |||||
Balance at Dec. 31, 2014 | 192,731 | 0 | 8,690 | 80,537 | (6,945) | 105,127 | 5,322 |
Net income | 25,118 | 25,118 | |||||
Issuance of common stock due to business combination | 77,895 | 2,723 | 75,172 | ||||
Issuance of common stock - private placement, net of expenses | 7,900 | 300 | 7,600 | ||||
Dividends paid on common stock | (6,344) | (6,344) | |||||
Stock options exercised | 129 | (40) | 169 | ||||
Release/lapse of restriction on RSUs | 29 | (416) | 445 | ||||
Stock compensation | 634 | 634 | |||||
Other comprehensive Income (loss), net of tax | (1,914) | (1,914) | |||||
Balance at Dec. 31, 2015 | $ 296,178 | $ 0 | $ 11,713 | $ 163,487 | $ (6,331) | $ 123,901 | $ 3,408 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity Parenthetical Parentheticals - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends paid on common stock (per share) | $ 0.60 | $ 0.58 | $ 0.50 |
Common Stock | |||
Issuance of common stock due to business combination (shares) | 2,723,083 | 0 | 0 |
Issuance of common stock - private placement (shares) | 300,000 | 0 | 0 |
Stock options exercised (shares) | 8,414 | 15,419 | 56,314 |
Release/lapse of restriction on RSUs (shares) | 23,123 | 27,491 | 19,585 |
Repurchase of common stock (shares) | 0 | 165,766 | 40,713 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||||
Net income | $ 8,238 | $ 25,118 | $ 18,522 | $ 18,607 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for loan losses | 1,490 | 5,132 | 1,200 | 1,350 |
Depreciation, amortization and accretion | 8,388 | 4,226 | 5,162 | |
Loss on sale of premises and equipment | 29 | 1 | 3 | |
Deferred income tax expense (benefit) | 1,300 | 2,502 | (1,454) | |
Stock based compensation | 634 | 493 | 384 | |
Net gain on sale or call of available for sale securities | (1,011) | (1,227) | (65) | |
Net (gain) loss on sale of other real estate owned | (332) | (74) | 115 | |
Net gain on sale of loans held for sale | (1,794) | (507) | (1,237) | |
Writedown of other real estate owned | 0 | 66 | 33 | |
Origination of loans held for sale | 129,129 | 42,410 | 82,282 | |
Proceeds from sales of loans held for sale | (128,537) | (42,473) | (84,357) | |
Increase in accrued interest receivable | (167) | (489) | (117) | |
Increase in cash value of bank-owned life insurance | (1,307) | (1,102) | (922) | |
Decrease in other assets | 3,037 | 485 | 5,822 | |
(Decrease) increase in deferred compensation liability | 83 | (76) | (86) | |
Decrease in accounts payable, accrued expenses, and other liabilities | (5,810) | (819) | (1,410) | |
Net cash provided by operating activities | 32,708 | 23,264 | 28,260 | |
Cash flows from investing activities | ||||
Proceeds from sales of available for sale investment securities | 116,829 | 33,457 | 12,447 | |
Proceeds from maturities and calls of available for sale securities | 70,806 | 64,669 | 103,200 | |
Purchase of available for sale investment securities | (25,424) | (67,892) | (74,582) | |
Proceeds from maturities and calls of held to maturity securities | 4,669 | 1,147 | 1,232 | |
Purchases of held to maturity securities | (29,182) | (20,052) | (1,185) | |
Increase in loans | (106,278) | (45,911) | (54,477) | |
Decrease in loan pool participations, net | 19,332 | 6,201 | 10,117 | |
Purchase of premises and equipment, net | (14,869) | (12,320) | (4,521) | |
Proceeds from sale of other real estate owned | 3,594 | 650 | 1,581 | |
Proceeds from sales of premises and equipment | 1,132 | 57 | 18 | |
Proceeds from sale of assets held for sale | 0 | 0 | 764 | |
Proceeds of principal and earnings from bank-owned life insurance | 0 | 488 | 0 | |
Purchases of bank-owned life insurance | 0 | (7,930) | 0 | |
Net cash paid in business acquisition (Note 2) | 35,596 | 0 | 0 | |
Net cash provided by (used in) investing activities | 5,013 | (47,436) | (5,406) | |
Cash flows from financing activities: | ||||
Net increase (decrease) in deposits | 5,812 | 33,600 | (24,791) | |
Net increase (decrease) in federal funds purchased | (15,908) | 11,926 | 5,482 | |
Net decrease in securities sold under agreements to repurchase | (9,482) | (362) | (7,640) | |
Proceeds from Federal Home Loan Bank borrowings | 24,000 | 26,000 | 166,000 | |
Repayment of Federal Home Loan Bank borrowings | (30,000) | (39,900) | (179,300) | |
Proceeds from exercise of stock options | 158 | 282 | 320 | |
Redemption of subordinated note | 12,669 | 0 | 0 | |
Proceeds from long-term debt | 25,000 | 0 | 0 | |
Payments on long-term debt | 2,500 | 0 | 0 | |
Dividends paid | (6,344) | (4,868) | (4,259) | |
Issuance of common stock, net of expenses | 7,900 | 0 | 0 | |
Repurchase of common stock | 0 | (3,987) | (967) | |
Net cash provided by (used in) financing activities | (14,033) | 22,691 | (45,155) | |
Net increase (decrease) in cash and cash equivalents | 23,688 | (1,481) | (22,301) | |
Cash and cash equivalents: | ||||
Cash and cash equivalents at beginning of period | 23,409 | 24,890 | 47,191 | |
Cash and cash equivalents at end of period | 47,097 | 47,097 | 23,409 | 24,890 |
Supplemental disclosures of cash flow information: | ||||
Cash paid during the period for interest | 10,004 | 9,453 | 12,842 | |
Cash paid during the period for income taxes | 7,677 | 4,144 | 7,961 | |
Supplemental schedule of non-cash investing activities: | ||||
Transfer of loans to other real estate owned | 1,760 | 788 | $ 221 | |
Noncash assets acquired: | ||||
Goodwill | 64,548 | 64,548 | $ 0 | |
Central Bancshares, Inc. | ||||
Noncash assets acquired: | ||||
Investment securities | 160,775 | 160,775 | ||
Loans | 916,973 | 916,973 | ||
Premises and equipment | 27,908 | 27,908 | ||
Goodwill | 64,548 | 64,548 | ||
FDIC indemnification asset | 3,753 | 3,753 | ||
Other real estate owned | 8,420 | 8,420 | ||
Other assets | 14,588 | 14,588 | ||
Total noncash assets acquired | 1,211,118 | 1,211,118 | ||
Liabilities assumed: | ||||
Deposits | 1,049,167 | 1,049,167 | ||
Short-term borrowings | 16,124 | 16,124 | ||
Junior subordinated notes issued to capital trusts | 8,050 | 8,050 | ||
Subordinated notes payable | 12,669 | 12,669 | ||
Other liabilities | 11,617 | 11,617 | ||
Total liabilities assumed | 1,097,627 | 1,097,627 | ||
Core Deposits | Central Bancshares, Inc. | ||||
Noncash assets acquired: | ||||
Finite lived intangible | 12,773 | 12,773 | ||
Trade Names | Central Bancshares, Inc. | ||||
Noncash assets acquired: | ||||
Finite lived intangible | $ 1,380 | $ 1,380 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Nature of Business and Significant Accounting Policies Nature of business : The Company is a bank holding company registered under the Bank Holding Company Act of 1956 that has elected to be a financial holding company. It is headquartered in Iowa City, Iowa and owns all of the outstanding common stock of MidWest One Bank, Iowa City, all of the outstanding common stock of Central Bank, Golden Valley, Minnesota, and all of the common stock of MidWest One Insurance Services, Inc., Oskaloosa, Iowa. MidWest One Bank is also headquartered in Iowa City, Iowa, and provides services to individuals, businesses, governmental units and institutional customers through 24 offices in central and east-central Iowa. Central Bank has 22 offices, primarily in the Twin Cities metro area with offices in Minnesota and western Wisconsin. Additionally, Central Bank operates two Florida offices in Naples and Fort Myers. We expect Central Bank to merge into MidWest One Bank in the 2nd quarter of 2016. MidWest One Insurance Services, Inc. provides personal and business insurance services in Cedar Falls, Conrad, Melbourne, Oskaloosa, Parkersburg, and Pella, Iowa. The banks are actively engaged in many areas of commercial banking, including: acceptance of demand, savings and time deposits; making commercial, real estate, agricultural and consumer loans, and other banking services tailored for its individual customers. The Wealth Management area of MidWest One Bank administers estates, personal trusts, conservatorships, and pension and profit-sharing accounts along with providing other management services to customers. On May 1, 2015, we consummated a merger with Central Bancshares, Inc. (“Central”), a Minnesota corporation. In connection with the merger, Central Bank, a Minnesota-chartered commercial bank and wholly-owned subsidiary of Central, became a wholly-owned subsidiary of MidWest One . Central Bank has operated, since 1988, as a community bank and has strong roots in the communities it serves. Per the merger agreement, each of the outstanding shares of Central common stock was converted into the pro rata portion of 2,723,083 shares of Company common stock and $64.0 million in cash. (See Note 2. “Business Combination” for additional information.) Accounting estimates : The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The U.S. economic environment in recent years has increased the degree of uncertainty inherent in these estimates. Certain significant estimates : The allowance for loan losses, fair value of assets acquired and liabilities assumed in a business combination, annual impairment testing of goodwill, and the fair values of investment securities and other financial instruments involve certain significant estimates made by management. These estimates are reviewed by management routinely, and it is reasonably possible that circumstances that exist may change in the near-term future and that the effect could be material to the consolidated financial statements. Principles of consolidation : The consolidated financial statements include the accounts of MidWest One Financial Group, Inc., a bank holding company, and its wholly-owned subsidiaries which include MidWest One Bank and Central Bank, both of which are state chartered banks whose primary federal regulator is the Federal Deposit Insurance Corporation, and MidWest One Insurance Services, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. Trust assets, other than cash deposits held by MidWest One Bank in a fiduciary or agency capacity for its customers, are not included in the accompanying consolidated financial statements because such accounts are not assets of the MidWest One Bank. In the normal course of business, the Company may enter into a transaction with a variable interest entity (“VIE”). VIEs are legal entities whose investors lack the ability to make decisions about the entity’s activities, or whose equity investors do not have the right to receive the residual returns of the entity. The applicable accounting guidance requires the Company to perform ongoing quantitative and qualitative analysis to determine whether it must consolidate any VIE. The Company does not have any ownership interest in or exert any control over any VIE, and thus no VIEs are included in the consolidated financial statements. Investments in non-marketable loan participation certificates for which the Company does not have the ability to exert significant influence are accounted for using the cost method. Presentation of cash flows : For purposes of reporting cash flows, cash and due from banks includes cash on hand, amounts due from banks, and federal funds sold. Cash flows from portfolio loans originated by the banks, deposits, federal funds purchased, and securities sold under agreements to repurchase are reported net. Cash receipts and cash payments resulting from acquisitions and sales of loans originated for sale are classified as operating cash flows on a gross basis in the consolidated statements of cash flows. The nature of the Company’s business requires that it maintain amounts due from banks that, at times, may exceed federally insured limits. In the opinion of management, no material risk of loss exists due to the various correspondent banks financial condition and the fact that they are well capitalized. Investment securities : Certain debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. The Company carries its investment securities at fair value, and the Company employs valuation techniques which utilize observable inputs when those inputs are available. These observable inputs reflect assumptions market participants would use in pricing the security, developed based on market data obtained from sources independent of the Company. When such information is not available, the Company employs valuation techniques which utilize unobservable inputs, or those which reflect the Company’s own assumptions about assumptions that market participants would use, based on the best information available in the circumstances. These valuation methods typically involve cash flow and other financial modeling techniques. Changes in underlying factors, assumptions, estimates, or other inputs to the valuation techniques could have a material impact on the Company’s future financial condition and results of operations. Fair value measurements are required to be classified as Level 1 (quoted prices), Level 2 (based on observable inputs) or Level 3 (based on unobservable inputs) discussed in more detail in Note 20 to the consolidated financial statements. Available for sale securities are recorded at fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity until realized. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other than temporary impairment exists, management considers whether: (1) we have the intent to sell the security; (2) it is more likely than not that we will be required to sell the security before recovery of the amortized cost basis; and (3) we do not expect to recover the entire amortized cost basis of the security. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Loans : Loans are stated at the principal amount outstanding, net of deferred loan fees and costs and allowance for loan losses. Interest on loans is credited to income as earned based on the principal amount outstanding. Deferred loan fees and costs are amortized using the level yield method over the remaining maturities on the loans. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due, unless the credit is well secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date, if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Purchased loans : All purchased loans (nonimpaired and impaired) are initially measured at fair value as of the acquisition date in accordance with applicable authoritative accounting guidance. Credit discounts are included in the determination of fair value. An allowance for loan losses is not recorded at the acquisition date for loans purchased. Individual loans acquired through the completion of a transfer, including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are referred to herein as “purchased credit impaired loans.” In determining the acquisition date fair vale and estimated credit losses of purchased credit impaired loans, and in subsequent accounting, the Company accounts for loans individually. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment or as a loss accrual or valuation allowance. Expected cash flows at the purchase date in excess of the fair value of loans, if any, are recorded as interest income over the expected life of the loans if the timing and amount of future cash flows are reasonably estimable. Subsequent to the purchased date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording an allowance for loan losses and a provision for loan losses. If the Company does not have the information necessary to reasonable estimate cash flows to be expected, it may use the cost-recovery method or cash-basis method of income recognition. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. Subsequent to the purchase date, the methods utilized to estimate the required allowance for loan losses for these loans are similar to originated loans. The remaining differences between the purchase price and the unpaid balance at the date of acquisition are recorded in interest income over the life of the loan. Covered assets and indemnification asset : As part of the Central Bank transaction, the Company assumed loss-share or similar credit protection agreements with the FDIC. Loans and other real estate owned covered under these agreements are reported respectively in loans or other real estate owned. The loss-share assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition dates were estimated based on projected collections from the FDIC. When cash flow estimates are adjusted downward for a particular loan, the FDIC indemnification asset is increased. An allowance for loan and lease losses is established for the impairment of the loans. A provision for credit losses is recognized for the decrease in cash flows and the FDIC indemnification asset is increased. When cash flow estimates are adjusted upward for a particular loan, the FDIC indemnification asset is decreased. The difference between the decrease in the FDIC indemnification asset and the increase in cash flows is accreted over the estimated life of the loan. When cash flow estimates are adjusted downward for covered foreclosed real estate, the FDIC indemnification asset is increased. A charge is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows. When cash flow estimates are adjusted upward for covered foreclosed real estate, the FDIC indemnification asset is decreased. Any write-down after the transfer to covered foreclosed real estate is reversed. In applicable scenarios, the claw-back liability for amounts owed to the FDIC for better than expected performance will increase or decrease accordingly. Subsequent to initial recording, the indemnification asset is subject to impairment testing. Additionally, if expected cash flows on covered assets increase, the Company accounts for the associated decrease in the indemnification asset by amortizing the change over the lessor of the contractual term of the indemnification agreement or the remaining life of the indemnified asset. The related FDIC indemnification assets are included in other assets, and there was no impairment recorded in 2015 . Loan Pool Participations: The Company acquired its loan pool participations from the Former Midwest One during the merger and continued in this business following the merger. However, in 2010, the Company made the decision to exit this line of business, and all remaining loan pool participations were sold in June 2015. Loans held for sale : Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price plus the value of servicing rights, less the carrying value of the related mortgage loans sold. Allowance for loan losses : The allowance for loan losses is established as losses estimated to have been incurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectiblity of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as doubtful, substandard or special mention. For such loans that are also classified as impaired as well as any loan (regardless of classification) meeting the definition of a troubled debt restructuring, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. The general component covers loans not classified as impaired and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects that margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. 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. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent. Large groups of smaller-balance, homogeneous loans are collectively evaluated for impairment. Accordingly, the Company generally does not separately identify individual consumer and residential loans for impairment unless they meet the definition of a troubled debt restructure. Transfers of financial assets : Revenue from the origination and sale of loans in the secondary market is recognized upon the transfer of financial assets and accounted for as sales when control over the assets has been surrendered. The Company also sells participation interests in some large loans originated, to non-affiliated entities. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company; (2) the transferee has the right to pledge or exchange the assets it received and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Revenue recognition : Trust fees, deposit account service charges and other fees are recognized when payment is received for the services (cash basis), which generally occurs at the time the services are provided. 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. The Company records a liability to the extent losses on its commitments to lend are probable. Premises and equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. The estimated useful lives and primary method of depreciation for the principal items are as follows: Years Type of Assets Minimum Maximum Depreciation Method Buildings and leasehold improvements 10 - 30 Straight-line Furniture and equipment 3 - 10 Straight-line Charges for maintenance and repairs are expensed as incurred. When assets are retired or disposed of the related cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is recorded. Other real estate owned : Real estate properties acquired through or in lieu of foreclosure are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Fair value is determined by management by obtaining appraisals or other market value information at least annually. Any write-downs in value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management by obtaining updated appraisals or other market value information. Any subsequent write-downs are recorded as a charge to operations, if necessary, to reduce the carrying value of a property to the updated fair value less estimated selling cost. Net costs related to the holding of properties are included in noninterest expense. Goodwill and other intangibles : Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for as purchases. Under ASC Topic 350, goodwill of a reporting unit is tested for impairment on an annual basis, or between annual tests if an event occurs or circumstances change that would reduce the fair value of a reporting unit below its carrying amount. The Company's annual assessment is done at the unit level. The Company did not recognize impairment losses during the year ended December 31, 2015 . Any future impairment will be recorded as noninterest expense in the period of assessment. Certain other intangible assets that have finite lives are amortized over the remaining useful lives. Mortgage servicing rights : Mortgage servicing rights are recorded at fair value based on assumptions through a third-party valuation service. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the servicing cost per loan, the discount rate, the escrow float rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Bank-owned life insurance : Bank-owned life insurance is carried at cash surrender value, net of surrender and other charges, with increases/decreases reflected as income/expense in the consolidated statements of operations. Employee benefit plans: Deferred benefits under a salary continuation plan are charged to expense during the period in which the participating employees attain full eligibility. Stock-based compensation : Compensation expense for share based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. The Company assumes no projected forfeitures on its stock based compensation, since actual historical forfeiture rates on its stock-based incentive awards has been negligible. Income taxes : The Company and/or its subsidiaries currently file tax returns in all states and local taxing jurisdictions which impose corporate income, franchise or other taxes. The methods of filing and the methods for calculating taxable and apportionable income vary depending upon the laws of the taxing jurisdiction. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC 740, Income Taxes , the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. There were no material unrecognized tax benefits or any interest or penalties on any unrecognized tax benefits as of December 31, 2015 and 2014 . Common stock : On January 15, 2013 , the Company's board of directors announced the renewal of the Company's share repurchase program, extending the expiration of the program to December 31, 2014 and increasing the remaining amount of authorized repurchases under the program to $5.0 million from the approximately $2.4 million of authorized repurchases that had previously remained. Pursuant to the program, the Company could continue to repurchase shares from time to time in the open market, and the method, timing and amounts of repurchase would be solely in the discretion of the Company's management. The repurchase program did not require the Company to acquire a specific number of shares. Therefore, the amount of shares repurchased pursuant to the program would depend on several factors, including market conditions, capital and liquidity requirements, and alternative uses for cash available. In 2013, we repurchased 113,566 shares of common stock at a cost of $2.8 million . On July 17, 2014 , the board of directors of the Company approved a new share repurchase program, allowing for the repurchase of up to $5.0 million of stock through December 31, 2016 . The new repurchase program replaced the Company's prior repurchase program, pursuant to which the Company had repurchased approximately $3.7 million of common stock since January 1, 2013. Pursuant to the new program, the Company may continue to repurchase shares from time to time in the open market, and the method, timing and amounts of repurchase will be solely in the discretion of the Company's management. The repurchase program does not require the Company to acquire a specific number of shares. Therefore, the amount of shares repurchased pursuant to the program will depend on several factors, including market conditions, capital and liquidity requirements, and alternative uses for cash available. In 2014, we repurchased 165,766 shares of common stock at a cost of $4.0 million . In 2015 we repurchased no shares of common stock. Of the $5.0 million of stock authorized under the repurchase plan, $3.8 million remained available for possible future repurchases as of December 31, 2015 . In addition, as part of the agreement with Central, the Company issued 2,723,083 shares of Company common stock to Central’s shareholders upon consummation of the transaction. Comprehensive income : Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of shareholders’ equity on the consolidated balance sheets, and are disclosed in the consolidated statements of comprehensive income. The components of accumulated other comprehensive income, included in shareholders’ equity, net of tax, are as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Unrealized gains on securities available for sale, net of tax $ 3,408 $ 5,322 $ 1,049 Accumulated other comprehensive income, net of tax $ 3,408 $ 5,322 $ 1,049 Recent Accounting Pronouncements In January 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects . The objective of this update is to provide guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. The low-income housing tax credit program is designed to encourage private capital investment in the construction and rehabilitation of low-income housing. This program is an indirect tax subsidy that allows investors in a flow-through limited liability entity, such as limited partnerships or limited liability companies that manage or invest in qualified affordable housing projects, to receive the benefits of the tax credits allocated to the entity that owns the qualified affordable housing project. The tax credits are allowable on the tax return each year over a 10-year period as a result of a sufficient number of units being rented to qualifying tenants and are subject to restrictions on gross rentals paid by those tenants. Those credits are subject to recapture over a 15-year period starting with the first year tax credits are earned. The amendments in this update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. For public entities, the amendments are to be applied retrospectively to all annual periods and interim reporting periods presented within those annual periods, beginning after December 15, 2014. The adoption of this amendment did not have a material effect on the Company’s consolidated financial statements. In January 2014, the FASB issued Accounting Standards Update No. 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure . The objective of this update is to reduce diversity by clarifying when an in-substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. For public entities, the amendments are effective for reporting periods beginning after December 31, 2014, with early adoption permitted. The adoption of this amendment did not have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contract with Customers (Topic 606) . The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following five steps: 1) identify the contracts(s) with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. For a public entity, the amendments in this update are effective for annual reporting periods beginning after December 1 |
Business Combination (Notes)
Business Combination (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Business Combination On May 1, 2015, the Company acquired all of the equity interests of Central Bancshares, Inc., a bank holding company and the parent company of Central Bank, a commercial bank headquartered in Golden Valley, Minnesota, through the merger of Central with and into the Company. Among other things, this transaction provided the Company with the opportunity to expand the business into new markets and grow the size of the business. At the effective time of the merger, each share of common stock of Central converted into a pro rata portion of (1) 2,723,083 shares of common stock of the Company, and (2) $64.0 million in cash. This business combination was accounted for under the acquisition method of accounting. Accordingly, the results of operations of the acquired company have been included in the Company’s results of operations since the date of acquisition. Under this method of accounting, assets and liabilities acquired are recorded at their estimated fair values. The excess cost over fair value of net assets acquired is recorded as goodwill. As the consideration paid for Central exceeded the net assets acquired, provisional goodwill of $64.5 million has been recorded on the acquisition. Goodwill recorded in this transaction, which reflects the entry into the geographically new markets served by Central, has been allocated to our Central Bank segment. Goodwill recorded in the transaction is not tax deductible. The fair value of certain assets and liabilities and results recognized in the financial statements for the business combination have been determined only provisionally as of year-end 2015 . Deferred taxes remain provisional as the Company continues the process of determining the impact of Central Bank’s movement from an S-Corp to a C-Corp at the merger date. The recorded value of a deferred tax liability of $2.0 million has been recognized in the financial statements for the business combination as provisional as of year-end 2015. Any future changes in the amount of deferred taxes will impact the amount of goodwill associated with the merger transaction. The Company expects to obtain the additional information needed to finalize this amount in the first quarter of 2016, following the filing of the income tax return for pre-merger Central. All other amounts recognized for the business combination in the financial statements have been determined to be final as of December 31, 2015. Estimated fair values of assets acquired and liabilities assumed in the Central transaction, as of the closing date of the transaction, were as follows: (in thousands) May 1, 2015 ASSETS Cash and due from banks $ 28,404 Investment securities 160,775 Loans 916,973 Premises and equipment 27,908 Goodwill 64,548 Core deposit intangible 12,773 Trade name intangible 1,380 FDIC indemnification asset 3,753 Other real estate owned 8,420 Other assets 14,588 Total assets 1,239,522 LIABILITIES Deposits 1,049,167 Short-term borrowings 16,124 Junior subordinated notes issued to capital trusts 8,050 Subordinated notes payable 12,669 Accrued expenses and other liabilities 11,617 Total liabilities 1,097,627 Net assets 141,895 Consideration: Market value of common stock at $29.31 per share at May 1, 2015 (2,723,083 shares of common stock issued), net of stock illiquidity discount due to restrictions 77,895 Cash paid 64,000 Total fair value of consideration $ 141,895 Purchased loans acquired in a business combination are recorded and initially measured at their estimated fair value as of the acquisition date. Credit discounts are included in the determination of fair value. An allowance for loan losses is not carried over. These purchased loans are segregated into two types: purchased credit impaired loans and purchased non-credit impaired loans without evidence of significant credit deterioration. • Purchased credit impaired loans are accounted for in accordance with ASC 310-30 “Loans and Debt Securities Acquired with Deteriorated Credit Quality” as they display significant credit deterioration since origination and it is probable, as of the acquisition date, that the Company will be unable to collect all contractually required payments from the borrower. • Purchased non-credit impaired loans are accounted for in accordance with ASC 310-20 “ Nonrefundable Fees and Other Costs ” as these loans do not have evidence of significant credit deterioration since origination and it is probable all contractually required payments will be received from the borrower. For purchased non-credit impaired loans, the difference between the estimated fair value of the loans (computed on a loan-by-loan basis) and the principal outstanding is accreted over the remaining life of the loans. For purchased credit impaired loans the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the expected remaining life of the loan if the timing and amount of the future cash flows are reasonably estimable. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording an allowance for credit losses and a provision for loan losses. The following table presents the purchased loans as of the acquisition date: (in thousands) Purchased Credit Impaired Loans Purchased Non-Credit Impaired Loans Contractually required principal payments $ 36,886 $ 905,314 Nonaccretable difference (6,675 ) — Principal cash flows expected to be collected 30,211 905,314 Accretable discount (1) (1,882 ) (16,670 ) Fair value of acquired loans $ 28,329 $ 888,644 (1) Included in the accretable discount for Purchased Non-Credit Impaired Loans is approximately $10.4 million of estimated undiscounted principal losses. Disclosures required by ASC 805-20-50-1(a) concerning the FDIC indemnification assets have not been included due to the immateriality of the amount involved. See Note 4 “Loans Receivable and the Allowance for Loan Losses” to our consolidated financial statements for additional information related to the FDIC indemnification asset. ASC 805-30-30-7 requires that the consideration transfered in a business combination should be measured at fair value. Since the common shares issued as part of the consideration of the merger included a restriction on their sale, pledge or other disposition, an illiquidity discount has been assigned to the shares based upon the volatility of the underlying shares’ daily returns and the period of restriction. The Company recorded $3.5 million in pre-tax merger-related expenses for the year ended 2015 , including professional and legal fees of $1.9 million to directly consummate the merger. These amounts are included in professional fees in the Company’s consolidated statements of operations. The remainder of merger-related expenses primarily relate to retention and severance compensation costs in the amount of $0.6 million , which are included in salaries and employee benefits in the consolidated statements of operations, and $1.0 million of service contract termination and miscellaneous costs, which are included in other operating expenses. During the measurement period, specifically the three months ended December 31, 2015, the Company recognized adjustments to the provisional amounts reported at September 30, 2015, which reflect new information that existed as of May 1, 2015 that, if known, would have affected the measurement of the amounts recognized as of that date. In its interim financial statements for the year ended December 31, 2015, the Company adjusted the provisional amounts for deferred taxes. The results of this adjustment is reflected in the $1.4 million increase to goodwill during the quarter ended December 31, 2015. The provisional adjustments had no impact on earnings, and in accordance with ASU 2015-16 were recorded during the three months ending December 31, 2015. The following table provides the unaudited pro forma information for the results of operations for the year ended December 31, 2015 and 2014 , as if the acquisition had occurred January 1, 2014. The pro forma results combine the historical results of Central into the Company’s consolidated statement of income including the impact of certain purchase accounting adjustments, including loan discount accretion, investment securities discount accretion, intangible assets amortization, deposit premium accretion and borrowing discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. The merger-related expenses that have been recognized are included in net income in the table below. Year Ended December 31, (in thousands) 2015 2014 Total revenues (net interest income plus noninterest income) $ 128,613 $ 130,502 Net income $ 25,799 $ 24,430 The pro forma information above excludes the impact of any provision recorded related to renewing Central loans. Revenues and earnings included in the consolidated statements of operations of the acquired company since the acquisition date were $41.3 million and $7.0 million for the year ended December 31, 2015 . |
Investment Securities (Notes)
Investment Securities (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities The amortized cost and fair value of investment securities available for sale, with gross unrealized gains and losses, are as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) December 31, 2015 U.S. Treasury securities $ 6,931 $ — $ 21 $ 6,910 U.S. Government agencies and corporations 26,600 99 46 26,653 State and political subdivisions 176,794 6,662 72 183,384 Mortgage-backed securities 56,950 569 457 57,062 Collateralized mortgage obligations 107,613 321 1,530 106,404 Corporate debt securities 45,602 50 86 45,566 Total debt securities 420,490 7,701 2,212 425,979 Other equity securities 1,250 50 38 1,262 Total investment securities $ 421,740 $ 7,751 $ 2,250 $ 427,241 December 31, 2014 U.S. Government agencies and corporations $ 49,392 $ 248 $ 265 $ 49,375 State and political subdivisions 187,276 8,113 190 195,199 Mortgage-backed securities 30,965 1,498 — 32,463 Collateralized mortgage obligations 147,412 813 2,093 146,132 Corporate debt securities 48,656 188 103 48,741 Total debt securities 463,701 10,860 2,651 471,910 Other equity securities 2,686 380 34 3,032 Total investment securities $ 466,387 $ 11,240 $ 2,685 $ 474,942 The amortized cost and fair value of investment securities held to maturity, with gross unrealized gains and losses, are as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) December 31, 2015 State and political subdivisions $ 66,454 $ 928 $ 110 $ 67,272 Mortgage-backed securities 3,920 4 38 3,886 Collateralized mortgage obligations 30,505 1 459 30,047 Corporate debt securities 17,544 — 515 17,029 Total $ 118,423 $ 933 $ 1,122 $ 118,234 December 31, 2014 State and political subdivisions $ 39,704 $ 370 $ 252 $ 39,822 Mortgage-backed securities 22 3 — 25 Collateralized mortgage obligations 8,531 — 233 8,298 Corporate debt securities 3,267 — 159 3,108 Total $ 51,524 $ 373 $ 644 $ 51,253 Investment securities with a market value of $321.6 million and $200.7 million at December 31, 2015 and 2014 , respectively, were pledged on public deposits, securities sold under agreements to repurchase and for other purposes, as required or permitted by law. The summary of investment securities shows that some of the securities in the available for sale and held to maturity investment portfolios had unrealized losses, or were temporarily impaired, as of December 31, 2015 and December 31, 2014 . This temporary impairment represents the estimated amount of loss that would be realized if the securities were sold on the valuation date. The following presents information pertaining to securities with gross unrealized losses as of December 31, 2015 and 2014 , aggregated by investment category and length of time that individual securities have been in a continuous loss position: As of December 31, 2015 Number of Securities Less than 12 Months 12 Months or More Total Available for Sale Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (in thousands, except number of securities) U.S. Treasury securities 1 $ 6,910 $ 21 $ — $ — $ 6,910 $ 21 U.S. Government agencies and corporations 1 4,890 46 — — 4,890 46 State and political subdivisions 22 8,419 24 3,177 48 11,596 72 Mortgage-backed securities 27 37,753 457 — — 37,753 457 Collateralized mortgage obligations 23 56,447 420 31,253 1,110 87,700 1,530 Corporate debt securities 8 30,496 86 — — 30,496 86 Other equity securities 1 — — 962 38 962 38 Total 83 $ 144,915 $ 1,054 $ 35,392 $ 1,196 $ 180,307 $ 2,250 As of December 31, 2014 Number of Securities Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (in thousands, except number of securities) U.S. Government agencies and corporations 4 $ 9,946 $ 11 $ 15,018 $ 254 $ 24,964 $ 265 State and political subdivisions 46 3,024 18 10,728 172 13,752 190 Collateralized mortgage obligations 14 14,971 123 68,370 1,970 83,341 2,093 Corporate debt securities 7 23,024 50 3,400 53 26,424 103 Other equity securities 1 — — 966 34 966 34 Total 72 $ 50,965 $ 202 $ 98,482 $ 2,483 $ 149,447 $ 2,685 As of December 31, 2015 Number of Securities Less than 12 Months 12 Months or More Total Held to Maturity Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 32 $ 9,345 $ 93 $ 2,040 $ 17 $ 11,385 $ 110 Mortgage-backed securities 5 3,723 38 — — 3,723 38 Collateralized mortgage obligations 7 22,571 320 7,416 139 29,987 459 Corporate debt securities 6 15,606 309 680 206 16,286 515 Total 50 $ 51,245 $ 760 $ 10,136 $ 362 $ 61,381 $ 1,122 As of December 31, 2014 Number of Securities Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 29 $ 5,322 $ 190 $ 9,144 $ 62 $ 14,466 $ 252 Collateralized mortgage obligations 1 — — 8,298 233 8,298 233 Corporate debt securities 2 2,358 27 750 132 3,108 159 Total 32 $ 7,680 $ 217 $ 18,192 $ 427 $ 25,872 $ 644 The Company's assessment of other-than-temporary impairment ("OTTI") is based on its reasonable judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers factual information, including expected cash flows, the structure of the security, the creditworthiness of the issuer, the type of underlying assets and the current and anticipated market conditions. As of December 31, 2015 and 2014 , the Company’s mortgage-backed securities and collateralized mortgage obligations portfolios consisted of securities predominantly backed by one- to four-family mortgage loans and underwritten to the standards of and guaranteed by the following government-sponsored agencies: the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Government National Mortgage Association. The receipt of principal, at par, and interest on mortgage-backed securities is guaranteed by the respective government-sponsored agency guarantor, such that the Company believes that its mortgage-backed securities do not expose the Company to credit-related losses. At December 31, 2015 , approximately 56% of the municipal obligations held by the Company were Iowa-based, and approximately 22% were Minnesota-based. The Company does not intend to sell these municipal obligations, and it is more likely than not that the Company will not be required to sell them until the recovery of its cost. Due to the issuers’ continued satisfaction of their obligations under the securities in accordance with their contractual terms and the expectation that they will continue to do so, management’s intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in fair value, as well as the evaluation of the fundamentals of the issuers’ financial conditions and other objective evidence, the Company believes that the municipal obligations identified in the tables above were temporarily impaired as of December 31, 2015 and 2014 . At December 31, 2013, the Company owned five collateralized debt obligations (“CDOs”) backed by pools of trust preferred securities with an original cost basis of $8.8 million . The amortized cost of these securities as of that date totaled $2.1 million after OTTI charges have been recognized. During the quarter ended March 31, 2014, the Company sold these investment securities at a net gain of $0.8 million . As of December 31, 2015 , the Company owned $0.3 million of equity securities in banks and financial service-related companies, and $1.0 million of mutual funds invested in debt securities and other debt instruments that will cause units of the fund to be deemed to be qualified under the Community Reinvestment Act. Equity securities are considered to have OTTI whenever they have been in a loss position, compared to current book value, for twelve consecutive months, and the Company does not expect them to recover to their original cost basis. For the years ended December 31, 2015 and 2014 , no impairment charges were recorded, as the affected equity securities were not deemed impaired due to market prices that are above the Company's original purchase price. The following table provides a roll forward of credit losses on fixed maturity securities recognized in net income: Year Ended December 31, 2015 2014 (in thousands) Beginning balance $ — $ 6,639 Reductions to credit losses: Securities with previous other than temporary impairments, due to sale — (6,639 ) Ending balance $ — $ — It is reasonably possible that the fair values of the Company's investment securities could decline in the future if the overall economy or the financial conditions of the issuers deteriorate or the liquidity of certain securities remains depressed. As a result, there is a risk that additional OTTI may be recognized in the future and any such amounts could be material to the Company's consolidated statements of operations. The contractual maturity distribution of investment debt securities at December 31, 2015 , is summarized as follows: Available For Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Due in one year or less $ 35,139 $ 35,355 $ 417 $ 417 Due after one year through five years 100,588 102,119 5,638 5,634 Due after five years through ten years 101,972 106,337 49,722 49,941 Due after ten years 18,228 18,702 28,221 28,309 Debt securities without a single maturity date 164,563 163,466 34,425 33,933 Total $ 420,490 $ 425,979 $ 118,423 $ 118,234 Mortgage-backed securities and collateralized mortgage obligations are collateralized by mortgage loans, and guaranteed by U.S. government agencies. Experience has indicated that principal payments will be collected sooner than scheduled because of prepayments. Therefore, these securities are not scheduled in the maturity categories indicated above. Other equity securities available for sale with an amortized cost of $1.3 million and a fair value of $1.3 million are also excluded from this table. Proceeds from the sales of investment securities available for sale during 2015 were $116.8 million . During 2014 there were $33.5 million sales of investment securities available for sale, while in 2013 there were $12.4 million sales of investment securities available for sale. Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. Realized gains (losses) on investments, including impairment losses for the years ended December 31, 2015 , 2014 and 2013 , were as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Available for sale fixed maturity securities: Gross realized gains $ 1,265 $ 1,463 $ 144 Gross realized losses (442 ) (236 ) (79 ) 823 1,227 65 Equity securities: Gross realized gains 188 — — Gross realized losses — — — 188 — — Total net realized gains and losses $ 1,011 $ 1,227 $ 65 |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Loan Losses (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Loans Receivable and the Allowance for Loan Losses The composition of allowance for loan losses and loans by portfolio segment, as of December 31, 2015 and 2014 , were as follows: Allowance for Loan Losses and Recorded Investment in Loan Receivables As of December 31, 2015 and 2014 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2015 Allowance for loan losses: Individually evaluated for impairment $ 51 $ 489 $ 2,786 $ 387 $ 1 $ — $ 3,714 Collectively evaluated for impairment 1,366 4,962 5,718 3,539 408 (374 ) 15,619 Purchased credit impaired loans — — 52 42 — — 94 Total $ 1,417 $ 5,451 $ 8,556 $ 3,968 $ 409 $ (374 ) $ 19,427 Loans receivable Individually evaluated for impairment $ 3,072 $ 7,718 $ 23,697 $ 5,725 $ 26 $ — $ 40,238 Collectively evaluated for impairment 118,642 461,275 950,207 517,482 38,506 — 2,086,112 Purchased credit impaired loans $ — $ 256 $ 18,037 $ 7,299 $ — $ — 25,592 Total $ 121,714 $ 469,249 $ 991,941 $ 530,506 $ 38,532 $ — $ 2,151,942 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2014 Allowance for loan losses: Individually evaluated for impairment $ 88 $ 206 $ 226 $ 623 $ 2 $ — $ 1,145 Collectively evaluated for impairment 1,418 5,574 4,173 2,544 321 1,188 15,218 Total $ 1,506 $ 5,780 $ 4,399 $ 3,167 $ 323 $ 1,188 $ 16,363 Loans receivable Individually evaluated for impairment $ 3,027 $ 3,168 $ 3,916 $ 3,341 $ 34 $ — $ 13,486 Collectively evaluated for impairment 101,782 301,732 422,605 269,270 23,644 — 1,119,033 Total $ 104,809 $ 304,900 $ 426,521 $ 272,611 $ 23,678 $ — $ 1,132,519 Included above as of December 31, 2015 , are loans with a contractual balance of $108.7 million and a recorded balance of $103.0 million , which are covered under loss sharing agreements with the FDIC. The agreements cover certain losses and expenses and expire at various dates through October 7, 2021 . The related FDIC indemnification asset is reported separately in Note 7. “Other Assets.” As of December 31, 2015 , the purchased credit impaired loans above are $33.0 million , net of a discount of $7.4 million . Loans with unpaid principal in the amount of $558.8 million and $404.4 million at December 31, 2015 and December 31, 2014 , respectively, were pledged to the FHLB as collateral for borrowings. The changes in the allowance for loan losses by portfolio segment, as of December 31, 2015 , 2014 , and 2013 , were as follows: Allowance for Loan Loss Activity For the Years Ended December 31, 2015, 2014, and 2013 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2015 Beginning balance $ 1,506 $ 5,780 $ 4,399 $ 3,167 $ 323 $ 1,188 $ 16,363 Charge-offs (245 ) (692 ) (853 ) (740 ) (92 ) — (2,622 ) Recoveries 1 372 7 143 31 — 554 Provision 155 (9 ) 5,003 1,398 147 (1,562 ) 5,132 Ending balance $ 1,417 $ 5,451 $ 8,556 $ 3,968 $ 409 $ (374 ) $ 19,427 2014 Beginning balance $ 1,358 $ 4,980 $ 5,294 $ 3,185 $ 275 $ 1,087 $ 16,179 Charge-offs (26 ) (685 ) (165 ) (409 ) (76 ) — (1,361 ) Recoveries 10 217 61 22 35 — 345 Provision 164 1,268 (791 ) 369 89 101 1,200 Ending balance $ 1,506 $ 5,780 $ 4,399 $ 3,167 $ 323 $ 1,188 $ 16,363 2013 Beginning balance $ 1,026 $ 4,599 $ 5,767 $ 3,007 $ 356 $ 1,202 $ 15,957 Charge-offs (39 ) (790 ) (545 ) (286 ) (147 ) — (1,807 ) Recoveries 36 70 479 67 27 — 679 Provision 335 1,101 (407 ) 397 39 (115 ) 1,350 Ending balance $ 1,358 $ 4,980 $ 5,294 $ 3,185 $ 275 $ 1,087 $ 16,179 Loan Portfolio Segment Risk Characteristics Agricultural - Agricultural loans, most of which are secured by crops, livestock, and machinery, are provided to finance capital improvements and farm operations as well as acquisitions of livestock and machinery. The ability of the borrower to repay may be affected by many factors outside of the borrower's control including adverse weather conditions, loss of livestock due to disease or other factors, declines in market prices for agricultural products and the impact of government regulations. The ultimate repayment of agricultural loans is dependent upon the profitable operation or management of the agricultural entity. Collateral for these loans generally includes accounts receivable, inventory, equipment and real estate. However, depending on the overall financial condition of the borrower, some loans are made on an unsecured basis. The collateral securing these loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. Commercial and Industrial - Commercial and industrial loans are primarily made based on the reported cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The collateral support provided by the borrower for most of these loans and the probability of repayment are based on the liquidation of the pledged collateral and enforcement of a personal guarantee, if any exists. The primary repayment risks of commercial and industrial loans are that the cash flows of the borrower may be unpredictable, and the collateral securing these loans may fluctuate in value. The size of the loans the Company can offer to commercial customers is less than the size of the loans that competitors with larger lending limits can offer. This may limit the Company's ability to establish relationships with the largest businesses in the areas in which the Company operates. As a result, the Company may assume greater lending risks than financial institutions that have a lesser concentration of such loans and tend to make loans to larger businesses. Collateral for these loans generally includes accounts receivable, inventory, equipment and real estate. However, depending on the overall financial condition of the borrower, some loans are made on an unsecured basis. The collateral securing these loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. In addition, if the U.S. economy does not continue to improve, this could harm or continue to harm the businesses of the Company’s commercial and industrial customers and reduce the value of the collateral securing these loans. Commercial Real Estate - The Company offers mortgage loans to commercial and agricultural customers for the acquisition of real estate used in their businesses, such as offices, warehouses and production facilities, and to real estate investors for the acquisition of apartment buildings, retail centers, office buildings and other commercial buildings. The market value of real estate securing commercial real estate loans can fluctuate significantly in a short period of time as a result of market conditions in the geographic area in which the real estate is located. Adverse developments affecting real estate values in one or more of the Company's markets could increase the credit risk associated with its loan portfolio. Additionally, real estate lending typically involves higher loan principal amounts than other loans, and the repayment of the loans generally is dependent, in large part, on sufficient income from the properties securing the loans to cover operating expenses and debt service. Economic events or governmental regulations outside of the Company’s control or that of the borrower could negatively impact the future cash flow and market values of the affected properties. Residential Real Estate - The Company generally retains short-term residential mortgage loans that are originated for its own portfolio but sells most long-term loans to other parties while retaining servicing rights on the majority of those loans. The market value of real estate securing residential real estate loans can fluctuate as a result of market conditions in the geographic area in which the real estate is located. Adverse developments affecting real estate values in one or more of the Company's markets could increase the credit risk associated with its loan portfolio. Additionally, real estate lending typically involves higher loan principal amounts than other loans, and the repayment of the loans generally is dependent, in large part, on the borrower's continuing financial stability, and is therefore more likely to be affected by adverse personal circumstances. Consumer - Consumer loans typically have shorter terms, lower balances, higher yields and higher risks of default than real estate related loans. Consumer loan collections are dependent on the borrower's continuing financial stability, and are therefore more likely to be affected by adverse personal circumstances. Collateral for these loans generally includes automobiles, boats, recreational vehicles, mobile homes, and real estate. However, depending on the overall financial condition of the borrower, some loans are made on an unsecured basis. The collateral securing these loans may depreciate over time, may be difficult to recover and may fluctuate in value based on condition. In addition, a decline in the United States economy could result in reduced employment, impacting the ability of customers to repay their obligations. Charge-off Policy The Company requires a loan to be charged-off as soon as it becomes apparent that some loss will be incurred, or when its collectability is sufficiently questionable that it no longer is considered a bankable asset. The primary considerations when determining if and how much of a loan should be charged-off are as follows: (1) the potential for future cash flows; (2) the value of any collateral; and (3) the strength of any co-makers or guarantors. When it is determined that a loan requires a partial or full charge-off, a request for approval of a charge-off is submitted to the Company's President, Executive Vice President and Chief Credit Officer, and the Senior Regional Loan officer. The respective bank's board of directors formally approves all loan charge-offs. Once a loan is charged-off, it cannot be restructured and returned to the Company's books. The Allowance for Loan and Lease Losses - Bank Loans The Company requires the maintenance of an adequate allowance for loan and lease losses (“ALLL”) in order to cover estimated probable losses without eroding the Company's capital base. Calculations are done at each quarter end, or more frequently if warranted, to analyze the collectability of loans and to ensure the adequacy of the allowance. In line with FDIC directives, the ALLL calculation does not include consideration of loans held for sale or off-balance-sheet credit exposures (such as unfunded letters of credit). Determining the appropriate level for the ALLL relies on the informed judgment of management, and as such, is subject to inaccuracy. Given the inherently imprecise nature of calculating the necessary ALLL, the Company's policy permits an "unallocated" allowance between 15% above and 5% below the “indicated reserve.” These unallocated amounts are due to those overall factors impacting the ALLL that are not captured in detailed loan category calculations. Loans Reviewed Individually for Impairment The Company identifies loans to be reviewed and evaluated individually for impairment based on current information and events and the probability that the borrower will be unable to repay all amounts due according to the contractual terms of the loan agreement. Specific areas of consideration include: size of credit exposure, risk rating, delinquency, nonaccrual status, and loan classification. The level of individual impairment is measured using one of the following methods: (1) the fair value of the collateral less costs to sell; (2) the present value of expected future cash flows, discounted at the loan's effective interest rate; or (3) the loan's observable market price. Loans that are deemed fully collateralized or have been charged down to a level corresponding with any of the three measurements require no assignment of reserves from the ALLL. All loans deemed troubled debt restructure or “TDR” are considered impaired. A loan is considered a TDR when the Company, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. All of the following factors are potential indicators that the Company has granted a concession (one or multiple items may be present): • The borrower receives a reduction of the stated interest rate for the remaining original life of the debt. • The borrower receives an extension of the maturity date or dates at a stated interest rate lower that the current market interest rate for new debt with similar risk characteristics. • The borrower receives a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. • The borrower receives a deferral of required payments (principal and/or interest). • The borrower receives a reduction of the accrued interest. The following tables set forth information on the Company's TDRs by class of financing receivable occurring during the stated periods: For the Year Ended December 31, 2015 2014 2013 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) : Commercial and industrial Extended maturity date 0 — — 1 1,405 1,405 10 1,546 1,546 Commercial real estate: Commercial real estate-other Extended maturity date 0 — — 0 — — 2 165 136 Residential real estate: One- to four- family first liens Interest rate reduction 1 151 151 1 285 292 2 164 169 Extended maturity date 0 — — 0 — — 1 66 69 One- to four- family junior liens Interest rate reduction 0 — — 0 — — 1 8 13 Total 1 $ 151 $ 151 2 $ 1,690 $ 1,697 16 $ 1,949 $ 1,933 (1) TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower. Loans by class of financing receivable modified as TDRs within the previous 12 months and for which there was a payment default during the stated periods were: For the Year Ended December 31, 2015 2014 2013 Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) That Subsequently Defaulted: Commercial real estate: Commercial real estate-other Extended maturity date 0 — 0 — 1 69 Residential real estate: One- to four- family first liens Interest rate reduction 0 — 0 — 1 111 Total 0 $ — 0 $ — 2 $ 180 (1) TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower. Loans Reviewed Collectively for Impairment All loans not evaluated individually for impairment are grouped together by type (i.e. commercial, agricultural, consumer, etc.) and further segmented within each subset by risk classification (i.e. pass, special mention, and substandard). Homogeneous loans past due 60-89 days and 90 days and over are classified special mention and substandard, respectively, for allocation purposes. The Company's historical loss experience for each loan type is calculated using the fiscal quarter-end data for the most recent 20 quarters as a starting point for estimating losses. In addition, other prevailing qualitative or environmental factors likely to cause probable losses to vary from historical data are incorporated in the form of adjustments to increase or decrease the loss rate applied to each group. These adjustments are documented and fully explain how the current information, events, circumstances, and conditions impact the historical loss measurement assumptions. Although not a comprehensive list, the following are considered key factors and are evaluated with each calculation of the ALLL to determine if adjustments to historical loss rates are warranted: • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses. • Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. • Changes in the nature and volume of the portfolio and in the terms of loans. • Changes in the experience, ability and depth of lending management and other relevant staff. • Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans. • Changes in the quality of our loan review system. • Changes in the value of underlying collateral for collateral-dependent loans. • The existence and effect of any concentrations of credit, and changes in the level of such concentrations. • The effect of other external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Company’s existing portfolio. The items listed above are used to determine the reserve percentage for "pass" rated loans percentage for loans evaluated collectively. Due to the inherent risks associated with special mention risk rated loans and based on the Company’s historical experience (i.e. early stages of financial deterioration, technical exceptions, etc.), this subset is reserved at two times the pass allocation factor to reflect this increased risk exposure. In addition, non-impaired loans classified as substandard loans carry greater risk than special mention loans, and as such, this subset is reserved at six times the pass allocation. Further, non-impaired loans less than $0.2 million that are past due 60 - 89 days or 90 days and over, are respectively classified as special mention or substandard. They are given an increased loan loss allocation of 25% or 50% , respectively, above the five-year historical loss rate of the specific loan type. The Allowance for Loan and Lease Losses - Loan Pool Participations Until the Company’s sale of its remaining loan pool participations in June 2015, the Company required the maintenance of an adequate allowance for loan pool participation losses in order to cover estimated probable losses. Charge-offs were netted against the income the Company received, so the balance in the loan pool reserve was not affected and remained stable. In essence, a provision for loan losses was made that was equal to the quarterly charge-offs, which was deducted from income received from the loan pools. By maintaining a sufficient reserve to cover the next quarter’s charge-offs, the Company would have sufficient reserves in place should no income be collected from the loan pools during the quarter. In the event the estimated charge-offs provided by the servicer were greater than the loan pool ALLL, an additional provision was made to cover the difference between the current ALLL and the estimated charge-offs provided by the servicer. Loans Reviewed Individually for Impairment The loan servicer reviews the portfolio quarterly on a loan-by-loan basis, and loans that are deemed to be impaired are charged-down to their estimated value during the next calendar quarter. All loans that are to be charged-down are reserved against in the ALLL adequacy calculation. Loans that continue to have an investment basis that have been charged-down are monitored, and, if additional impairment is noted, the reserve requirement is increased on the individual loan. Loans Reviewed Collectively for Impairment The Company utilizes the annualized average of portfolio loan (not loan pool participation) historical loss per risk category over a two year period of time. Supporting documentation for the technique used to develop the historical loss rate for each group of loans is required to be maintained. It is management’s assessment that the two year rate is most reflective of the estimated credit losses in the current loan pool portfolio. The following table sets forth the composition of the Company’s loans by internally assigned credit quality indicators at December 31, 2015 and 2014 : Pass Special Mention/Watch Substandard Doubtful Loss Total (in thousands) 2015 Agricultural $ 111,361 $ 8,536 $ 1,817 $ — $ — $ 121,714 Commercial and industrial 436,857 12,893 17,652 10 — 467,412 Credit cards 1,354 19 4 — — 1,377 Overdrafts 1,168 100 215 — — 1,483 Commercial real estate: Construction & development 114,640 2,406 3,707 — — 120,753 Farmland 82,442 2,408 4,234 — — 89,084 Multifamily 119,139 371 2,253 — — 121,763 Commercial real estate-other 609,651 19,402 31,288 — — 660,341 Total commercial real estate 925,872 24,587 41,482 — — 991,941 Residential real estate: One- to four- family first liens 410,143 4,813 13,042 235 — 428,233 One- to four- family junior liens 96,223 1,782 4,209 59 — 102,273 Total residential real estate 506,366 6,595 17,251 294 — 530,506 Consumer 37,184 6 278 41 — 37,509 Total $ 2,020,162 $ 52,736 $ 78,699 $ 345 $ — $ 2,151,942 2014 Agricultural $ 98,096 $ 5,032 $ 1,681 $ — $ — $ 104,809 Commercial and industrial 273,290 7,468 22,350 — — 303,108 Credit cards 1,240 6 — — — 1,246 Overdrafts 373 262 109 — — 744 Commercial real estate: Construction & development 56,963 1,151 1,269 — — 59,383 Farmland 79,629 1,778 2,293 — — 83,700 Multifamily 54,708 178 — — — 54,886 Commercial real estate-other 215,268 11,216 2,068 — — 228,552 Total commercial real estate 406,568 14,323 5,630 — — 426,521 Residential real estate: One- to four- family first liens 211,390 3,933 3,991 — — 219,314 One- to four- family junior liens 53,039 48 210 — — 53,297 Total residential real estate 264,429 3,981 4,201 — — 272,611 Consumer 23,431 8 41 — — 23,480 Total $ 1,067,427 $ 31,080 $ 34,012 $ — $ — $ 1,132,519 Included within the special mention, substandard, and doubtful categories at December 31, 2015 are purchased credit impaired loans totaling $23.7 million . Special Mention/Watch - A special mention/watch asset has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company's credit position at some future date. Special mention/watch assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard - Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. Loss - Loans classified loss are generally considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. The following table presents loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, as of December 31, 2015 and 2014 : As of December 31, 2015 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (in thousands) With no related allowance recorded: Agricultural $ 1,512 $ 2,084 $ — $ 1,410 $ 1,910 $ — Commercial and industrial 6,487 6,752 — 2,169 2,270 — Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 321 448 — 49 176 — Farmland 2,711 2,870 — 2,270 2,433 — Multifamily 1,632 1,798 — — — — Commercial real estate-other 12,230 12,642 — 939 1,064 — Total commercial real estate 16,894 17,758 — 3,258 3,673 — Residential real estate: One- to four- family first liens 2,494 2,533 — 535 773 — One- to four- family junior liens 1,297 1,308 — 134 157 — Total residential real estate 3,791 3,841 — 669 930 — Consumer 17 33 — 6 22 — Total $ 28,701 $ 30,468 $ — $ 7,512 $ 8,805 $ — With an allowance recorded: Agricultural $ 1,560 $ 1,560 $ 51 $ 1,617 $ 1,617 $ 88 Commercial and industrial 1,231 1,258 489 999 999 206 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 34 34 34 34 34 34 Farmland 69 69 3 74 74 4 Multifamily 224 224 73 — — — Commercial real estate-other 6,476 6,478 2,676 550 550 188 Total commercial real estate 6,803 6,805 2,786 658 658 226 Residential real estate: One- to four- family first liens 1,919 2,056 383 2,600 2,600 594 One- to four- family junior liens 15 15 4 72 72 29 Total residential real estate 1,934 2,071 387 2,672 2,672 623 Consumer 9 9 1 28 28 2 Total $ 11,537 $ 11,703 $ 3,714 $ 5,974 $ 5,974 $ 1,145 Total: Agricultural $ 3,072 $ 3,644 $ 51 $ 3,027 $ 3,527 $ 88 Commercial and industrial 7,718 8,010 489 3,168 3,269 206 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 355 482 34 83 210 34 Farmland 2,780 2,939 3 2,344 2,507 4 Multifamily 1,856 2,022 73 — — — Commercial real estate-other 18,706 19,120 2,676 1,489 1,614 188 Total commercial real estate 23,697 24,563 2,786 3,916 4,331 226 Residential real estate: One- to four- family first liens 4,413 4,589 383 3,135 3,373 594 One- to four- family junior liens 1,312 1,323 4 206 229 29 Total residential real estate 5,725 5,912 387 3,341 3,602 623 Consumer 26 42 1 34 50 2 Total $ 40,238 $ 42,171 $ 3,714 $ 13,486 $ 14,779 $ 1,145 The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, during the stated periods: For the Year Ended December 31, 2015 2014 2013 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) With no related allowance recorded: Agricultural $ 1,533 $ 58 $ 1,413 $ 211 $ 1,128 $ 114 Commercial and industrial 6,769 424 2,234 160 2,025 76 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 325 7 49 — 149 21 Farmland 2,743 128 2,288 456 101 8 Multifamily 1,833 68 — — — — Commercial real estate-other 12,772 446 975 — 593 25 Total commercial real estate 17,673 649 3,312 456 843 54 Residential real estate: One- to four- family first liens 2,469 81 547 32 669 14 One- to four- family junior liens 1,313 42 134 6 50 1 Total residential real estate 3,782 123 681 38 719 15 Consumer 21 2 8 — 12 — Total $ 29,778 $ 1,256 $ 7,648 $ 865 $ 4,727 $ 259 With an allowance recorded: Agricultural $ 1,572 $ 48 $ 1,627 $ 203 $ 1,681 $ 51 Commercial and industrial 1,313 67 1,044 104 1,697 75 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 34 — 35 3 7 — Farmland 70 2 74 3 2,315 110 Multifamily 226 6 — — — — Commercial real estate-other 6,528 344 551 43 1,921 55 Total commercial real estate 6,858 352 660 49 4,243 165 Residential real estate: One- to four- family first liens 1,928 44 2,612 203 909 38 One- to four- family junior liens 15 — 74 — 92 1 Total residential real estate 1,943 44 2,686 203 1,001 39 Consumer 9 — 31 5 41 2 Total $ 11,695 $ 511 $ 6,048 $ 564 $ 8,663 $ 332 Total: Agricultural $ 3,105 $ 106 $ 3,040 $ 414 $ 2,809 $ 165 Commercial and industrial 8,082 491 3,278 264 3,722 151 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 359 7 84 3 156 21 Farmland 2,813 130 2,362 459 2,416 118 Multifamily 2,059 74 — — — — Commercial real estate-other 19,300 790 1,526 43 2,514 80 Total commercial real estate 24,531 1,001 3,972 505 5,086 219 Residential real estate: One- to four- family first liens 4,397 125 3,159 235 1,578 52 One- to four- family junior liens 1,328 42 208 6 142 2 Total residential real estate 5,725 167 3,367 241 1,720 54 Consumer 30 2 39 5 53 2 Total $ 41,473 $ 1,767 $ 13,696 $ 1,429 $ 13,390 $ 591 The following table sets forth the composition and past due status of the Company’s loans at December 31, 2015 and 2014 : 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable (in thousands) 2015 Agricultural $ 19 $ 190 $ 169 $ 378 $ 121,336 $ 121,714 Commercial and industrial 1,046 710 644 2,400 465,012 467,412 Credit cards 2 17 4 23 1,354 1,377 Overdrafts 175 8 31 214 1,269 1,483 Commercial real estate: Construction & development — — 415 415 120,338 120,753 Farmland 120 — 80 200 88,884 89,084 Multifamily — — 224 224 121,539 121,763 Commercial real estate-other 1,190 754 1,636 3,580 656,761 660,341 Total commercial real estate 1,310 754 2,355 4,419 987,522 991,941 Residential real estate: One- to four- family first liens 2,611 1,293 1,772 5,676 422,557 428,233 One- to four- family junior liens 168 120 317 605 101,668 102,273 Total residential real estate 2,779 1,413 2,089 6,281 524,225 530,506 Consumer 62 6 17 85 37,424 37,509 Total $ 5,393 $ 3,098 $ 5,309 $ 13,800 $ 2,138,142 $ 2,151,942 Included in the totals above are the following purchased credit impaired loans $ 473 $ 799 $ 989 $ 2,261 $ 23,331 $ 25,592 2014 Agricultural $ 58 $ 30 $ — $ 88 $ 104,721 $ 104,809 Commercial and industrial 897 603 515 2,015 301,093 303,108 Credit cards 3 3 — 6 1,240 1,246 Overdrafts 104 2 4 110 634 744 Commercial real estate: Construction & development — — 83 83 59,300 59,383 Farmland 503 — — 503 83,197 83,700 Multifamily — — — — 54,886 54,886 Commercial real estate-other 168 57 1,200 1,425 227,127 228,552 Total commercial real estate 671 57 1,283 2,011 424,510 426,521 Residential real estate: One- to four- family first liens 1,481 581 2,023 4,085 215,229 219,314 One- to four- family junior liens 105 48 192 345 52,952 53,297 Total residential real estate 1,586 629 2,215 4,430 268,181 272,611 Consumer 35 8 23 66 23,414 23,480 Total $ 3,354 $ 1,332 $ 4,040 $ 8,726 $ 1,123,793 $ 1,132,519 Non-accrual and Delinquent Loans Loans are placed on non-accrual when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 days or more (unless the loan is both well secured with marketable collateral and in the process of collection). All loans rated doubtful or worse, and certain loans rated substandard, are placed on non-accrual. A non-accrual asset may be restored to an accrual status when (1) all past due principal and interest has been paid (excluding renewals and modifications that involve the capitalizing of interest) or (2) the loan becomes well secured with marketable collateral and is in the process of collection. An established track record of performance is also considered when determining accrual status. Delinquency status of a loan is determined by the number of days that have elapsed past the loan's payment due date, using the following classification groupings: 30-59 days, 60-89 days and 90 days or more. Loans shown in the 30-59 days and 60-89 days columns in the table above reflect contractual delinquency status of loans not considered nonperforming due to classification as a TDR or being placed on non-accrual. The following table sets forth the composition of the Company’s recorded investment in loans on nonaccrual status and past due ninety days or more and still accruing by class of loans, excluding purchased credit impaired loans, as of December 31, 2015 and 2014 : As of December 31, 2015 2014 Non-Accrual Loans Past Due 90 Days or More and Still Accruing Non-Accrual Loans Past Due 90 Days or More and Still Accruing (in thousands) Agricultural $ 172 $ — $ — $ — Commercial and industrial 575 — 479 66 Credit cards — — — — Overdrafts — — — — Commercial real estate: Construction & development 95 — 83 — Farmland 20 80 24 — Multifamily 224 — — — Commercial real estate-other 1,452 — 1,200 — Total commercial real estate 1,791 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Premises and Equipment Premises and equipment as of December 31, 2015 and 2014 were as follows: As of December 31, 2015 2014 (in thousands) Land $ 13,270 $ 4,836 Buildings and leasehold improvements 60,871 29,942 Furniture and equipment 17,160 13,206 Construction in process 10,972 14,705 Premises and equipment 102,273 62,689 Accumulated depreciation and amortization 26,071 24,919 Premises and equipment, net $ 76,202 $ 37,770 Premises and equipment depreciation and amortization expense for the years ended December 31, 2015 , 2014 and 2013 was $3.1 million , $2.2 million and $2.4 million , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets The excess of the cost of an acquisition over the fair value of the net assets acquired, including core deposit, trade name, and client relationship intangibles, consists of goodwill. Under ASC Topic 350, goodwill and the non-amortizing portion of the trade name intangible are subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill and the non-amortizing portion of the trade name intangible at the reporting unit level to determine potential impairment annually on October 1, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable, by comparing the carrying value of the reporting unit with the fair value of the reporting unit. At the current time the Company has three reporting units: MidWest One Bank, Central Bank, and Corporate and other. No impairment was recorded on either the goodwill or the trade name intangible assets in 2015 , 2014 , or 2013 . The carrying amount of goodwill was $64.5 million at December 31, 2015 and zero at December 31, 2014 . The increase of $64.5 million in goodwill was due to the Central merger. The Company recognized a $64.5 million goodwill intangible, a $12.7 million core deposit intangible, and a $1.4 million trade name intangible in 2015 due to the Central merger. Amortization of intangible assets is recorded using an accelerated method based on the estimated useful life of insurance agency intangible, the core deposit intangible, the amortizing portion of the trade name intangible, and the customer list intangible. Projections of amortization expense are based on existing asset balances and the remaining useful lives. The following table presents the changes in the carrying amount of intangibles (excluding goodwill), gross carrying amount, accumulated amortization, net book value, and weighted average life as of December 31, 2015 and 2014 : Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Finite-Lived Trade Name Intangible Customer List Intangible Total (in thousands) December 31, 2015 Balance, beginning of period $ 364 $ 691 $ 7,040 $ — $ 164 $ 8,259 Additions from business combination — 12,773 — 1,380 — 14,153 Amortization expense (89 ) (2,984 ) — (177 ) (21 ) (3,271 ) Balance at end of period $ 275 $ 10,480 $ 7,040 $ 1,203 $ 143 $ 19,141 Gross carrying amount $ 1,320 $ 18,206 $ 7,040 $ 1,380 $ 330 $ 28,276 Accumulated amortization (1,045 ) (7,726 ) — (177 ) (187 ) (9,135 ) Net book value $ 275 $ 10,480 $ 7,040 $ 1,203 $ 143 $ 19,141 Remaining weighted average useful life (years) 7 6 9 8 Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Customer List Intangible Total (in thousands) December 31, 2014 Balance, beginning of period $ 470 $ 1,111 $ 7,040 $ 185 $ 8,806 Amortization expense (106 ) (420 ) — (21 ) (547 ) Balance at end of period $ 364 $ 691 $ 7,040 $ 164 $ 8,259 Gross carrying amount $ 1,320 $ 5,433 $ 7,040 $ 330 $ 14,123 Accumulated amortizations (956 ) (4,742 ) — (166 ) (5,864 ) Net book value $ 364 $ 691 $ 7,040 $ 164 $ 8,259 Remaining weighted average useful life (years) 7 4 9 The following table summarizes future amortization expense of intangible assets: Insurance Core Trade Customer Agency Deposit Name List Intangible Premium Intangible Intangible Totals (in thousands) Year ending December 31, 2016 $ 72 $ 3,634 $ 243 $ 20 $ 3,969 2017 55 2,835 216 19 3,125 2018 38 2,037 188 18 2,281 2019 21 1,312 161 17 1,511 2020 20 613 133 16 782 Thereafter 69 49 262 53 433 Total $ 275 $ 10,480 $ 1,203 $ 143 $ 12,101 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Other Assets Disclosure [Text Block] | Other Assets The components of the Company’s other assets as of December 31, 2015 and 2014 were as follows: As of December 31, 2015 2014 (in thousands) Federal Home Loan Bank Stock $ 9,832 $ 8,582 FDIC indemnification asset, net 4,274 — Prepaid expenses 2,271 1,350 Mortgage servicing rights 2,249 2,308 Federal and state taxes, current 1,079 — Accounts receivable & other miscellaneous assets 2,104 1,835 $ 21,809 $ 14,075 MidWest One Bank and Central Bank are each members of The Federal Home Loan Bank (“FHLB”) of Des Moines, and ownership of FHLB stock is a requirement for membership in the FHLB Des Moines. The amount of FHLB stock the banks are required to hold is directly related to the amount of FHLB advances borrowed. Because this security is not readily marketable and there are no available market values, this security is carried at cost and evaluated for potential impairment each quarter. No impairment was recorded on FHLB stock in 2015 or 2014 . Redemption of this investment is at the option of the FHLB. |
Loans Serviced for Others
Loans Serviced for Others | 12 Months Ended |
Dec. 31, 2015 | |
Loans Serviced for Others [Abstract] | |
Loans Serviced For Others [Text Block] | Loans Serviced for Others Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $362.3 million and $370.0 million at December 31, 2015 and 2014 , respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and collection and foreclosure processing. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees, and is net of fair value adjustments to capitalized mortgage servicing rights. |
Time Deposits
Time Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Time Deposits [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Time Deposits Time deposits that meet or exceed the FDIC Insurance limit of $250,000 at December 31, 2015 and December 31, 2014 was $162.5 million and $150.2 million , respectively. At December 31, 2015 , the scheduled maturities of certificates of deposits were as follows: (in thousands) 2016 $ 391,097 2017 182,029 2018 35,407 2019 22,935 2020 18,621 Thereafter 7 Total $ 650,096 The Company had $2.9 million and $6.1 million in brokered time deposits through the CDARS program as of December 31, 2015 and December 31, 2014 , respectively. The CDARS program coordinates, on a reciprocal basis, a network of banks to spread deposits exceeding the FDIC insurance coverage limits out to numerous institutions in order to provide insurance coverage for all participating deposits. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Debt [Abstract] | |
Debt Disclosure [Text Block] | Short-Term Borrowings Short-term borrowings were as follows as of December 31, 2015 and December 31, 2014 : December 31, 2015 December 31, 2014 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance Federal funds purchased 0.34 % $ 1,500 0.52 % $ 17,408 Securities sold under agreements to repurchase 0.31 67,463 0.21 60,821 Total 0.31 % $ 68,963 0.28 % $ 78,229 At December 31, 2015 and 2014 , the Company had no borrowings through the Federal Reserve Discount Window, while the borrowing capacity for both dates was $11.8 million . As of December 31, 2015 , the Bank had $13.1 million of municipal securities pledged to the Federal Reserve to secure potential borrowings. The Company also has various other unsecured Federal Funds agreements with correspondent banks. As of December 31, 2015 and 2014 there were $1.5 million and $17.4 million borrowings through these correspondent bank federal funds agreements, respectively. Securities sold under repurchase agreements are used by the Company to acquire funds from customers where the customer is required or desires to have its funds supported by collateral consisting of U.S. Treasury securities, U.S. Government agencies or other types of securities. The repurchase agreement is a promise to sell these securities to a customer at a certain price and repurchase them within one to four days after the transaction date at that same price plus interest accrued at an agreed upon rate. On April 30, 2015 , the Company entered into a $5.0 million unsecured line of credit with a correspondent bank. Interest is payable at a rate of one-month LIBOR + 2.00% . The line is scheduled to mature on April 28, 2016 . The Company had no balance outstanding under this agreement as of December 31, 2015 . |
Subordinated Notes Payable (Not
Subordinated Notes Payable (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Junior Subordinated Notes [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | Subordinated Notes Payable The Company has established three statutory business trusts, Central Bancshares Capital Trust II, Barron Investment Capital Trust I, and MidWestOne Statutory Trust II, under the laws of the state of Delaware, which exist for the exclusive purposes of (i) issuing trust securities representing undivided beneficial interests in the assets of the trust; (ii) investing the gross proceeds of the trust securities in junior subordinated deferrable interest debentures (subordinated debentures); and (iii) engaging in only those activities necessary or incidental thereto. For regulatory capital purposes, these trust securities qualify as a component of Tier 1 capital. The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of as of December 31, 2015 and December 31, 2014 : Face Value Book Value Interest Rate Year-end Interest Rate Maturity Date Callable Date (in thousands) 2015 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,552 Three-month LIBOR + 3.50% 4.01 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,571 Three-month LIBOR + 2.15% 2.74 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 2.10 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,587 2014 MidWestOne Statutory Trust II (1) $ 15,464 $ 15,464 Three-month LIBOR + 1.59% 1.83 % 12/15/2037 12/15/2012 (1) All distributions are cumulative and paid in cash quarterly. (2) Central Bancshares Capital Trust II and Barron Investment Capital Trust I were established by Central prior to the Company’s merger with Central, and the junior subordinated notes issued by Central were assumed by the Company. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at the stated maturity date or upon redemption of the junior subordinated notes. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligation under the junior subordinated notes and other relevant trust agreements, in aggregate, constitutes a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the notes and, therefore, distributions on the trust preferred securities, for up to five years , but not beyond the stated maturity date in the table above. During any such deferral period the Company may not pay cash dividends on its stock and generally may not repurchase its stock. The Company assumed a subordinated note held by 1907 EJF Fund, LTD, which was issued by Central prior to the Company’s merger, with a face value of $12.3 million . On June 23, 2015 the Company redeemed the subordinated note. |
Long-Term Borrowings
Long-Term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, by Type, Current and Noncurrent [Abstract] | |
Long-term Debt [Text Block] | Long-Term Borrowings Long-term borrowings were as follows as of December 31, 2015 and December 31, 2014 : December 31, 2015 December 31, 2014 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance FHLB Borrowings 1.64 % $ 87,000 1.88 % $ 93,000 Note payable to unaffiliated bank 2.17 22,500 — — Total 1.75 % $ 109,500 1.88 % $ 93,000 The Company utilizes FHLB borrowings as a supplement to customer deposits to fund earning assets and to assist in managing interest rate risk. As a member of The Federal Home Loan Bank of Des Moines, the Bank may borrow funds from the FHLB in amounts up to 35% of the Bank’s total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. Advances from the FHLB are collateralized primarily by 1-4 unit residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 4 “Loans Receivable and the Allowance for Loan Losses” of the notes to the consolidated financial statements. As of December 31, 2015 and 2014 , Federal Home Loan Bank borrowings were as follows: Rates Amount Minimum Maximum 2015 2014 (in thousands) Due in 2015 2.06 % to 3.00 % $ — $ 20,000 Due in 2016 0.50 % to 2.46 % 22,000 17,000 Due in 2017 1.09 % to 2.78 % 10,000 10,000 Due in 2018 1.30 % to 1.83 % 19,000 17,000 Due in 2019 1.42 % to 1.85 % 17,000 17,000 Due in 2020 1.52 % to 2.25 % 12,000 12,000 Thereafter 1.93 % to 1.93 % 7,000 — Total $ 87,000 $ 93,000 On April 30, 2015 , the Company entered into a $35.0 million unsecured note payable with a correspondent bank with a maturity date of June 30, 2020 . The Company drew $25.0 million on the note prior to June 30, 2015, at which time the ability to obtain additional advances ceased. Payments of principal and interest are payable quarterly beginning September 30, 2015 . As of December 31, 2015 , $22.5 million of that note was outstanding. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Income taxes for the years ended December 31, 2015 , 2014 and 2013 are summarized as follows: December 31, 2015 2014 2013 (in thousands) Current: Federal $ 6,147 $ 3,573 $ 6,841 State 372 956 1,259 Deferred 1,300 2,502 (1,454 ) Total income tax provision $ 7,819 $ 7,031 $ 6,646 The income tax provisions for the years ended December 31, 2015 , 2014 and 2013 were less than the amounts computed by applying the maximum effective federal income tax rate of 35% for the years ended December 31, 2015 , 2014 , and 2013 , to the income before income taxes because of the following items: 2015 2014 2013 (in thousands) Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Expected provision $ 11,528 35.0 % $ 8,943 35.0 % $ 8,839 35.0 % Tax-exempt interest (2,817 ) (8.6 ) (2,520 ) (9.9 ) (2,345 ) (9.3 ) Bank-owned life insurance (438 ) (1.3 ) (385 ) (1.5 ) (322 ) (1.3 ) State income taxes, net of federal income tax benefit 333 1.0 798 3.1 776 3.1 Non-deductible acquisition expenses 691 2.1 261 1.0 — — General business credits (1,225 ) (3.7 ) — — — — Other (253 ) (0.8 ) (66 ) (0.3 ) (302 ) (1.2 ) Total income tax provision $ 7,819 23.7 % $ 7,031 27.4 % $ 6,646 26.3 % Net deferred tax assets as of December 31, 2015 and 2014 consisted of the following components: December 31, 2015 2014 (in thousands) Deferred income tax assets: Allowance for loan losses $ 7,449 $ 7,981 Deferred compensation 1,909 1,022 Net operating losses (state net operating loss carryforwards) 3,560 3,266 Impairment losses on securities — 53 Other real estate owned 146 568 Other 1,934 1,278 Gross deferred tax assets 14,998 14,168 Deferred income tax liabilities: Premises and equipment depreciation and amortization 3,658 1,992 Federal Home Loan Bank stock 133 132 Purchase accounting adjustments 2,717 684 Mortgage servicing rights 853 875 Prepaid expenses 194 213 Unrealized gains on investment securities 2,091 3,234 Deferred loan fees 261 249 Other 584 253 Gross deferred tax liabilities 10,491 7,632 Net deferred income tax asset 4,507 6,536 Valuation allowance 3,560 3,458 Net deferred tax asset $ 947 $ 3,078 The Company has recorded a deferred tax asset for the future tax benefits of Iowa net operating loss carryforwards and certain impairment losses on investment securities. The Iowa net operating loss carryforwards amounting to approximately $44.5 million will expire in various amounts from 2018 to 2036 . As of December 31, 2015 and 2014 , the Company believed it was more likely than not that all temporary differences associated with the Iowa corporate tax return would not be fully realized. Accordingly, the Company has recorded a valuation allowance to reduce the net operating loss carryforward. Certain impairment and capital losses on securities at the federal and state level that existed at December 31, 2014 , were fully utilized during the year ended December 31, 2015 . A valuation allowance related to the remaining deferred tax assets has not been provided because management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. The Company had no material unrecognized tax benefits as of December 31, 2015 and 2014 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Employee Benefit Plans The Company has a salary reduction profit-sharing 401(k) plan covering all employees fulfilling minimum age and service requirements. Employee contributions to the plan are optional. Employer contributions are discretionary and may be made to the plan in an amount equal to a percentage of each participating employee’s salary. The 401(k) contribution expense for this plan totaled $1.2 million , $0.7 million and $0.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company has an employee stock ownership plan (ESOP) covering all employees fulfilling minimum age and service requirements. Employer contributions are discretionary and may be made to the plan in an amount equal to a percentage of each participating employee’s salary. The ESOP contribution expense for this plan totaled $1.0 million , $0.5 million and $0.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company has a salary continuation plan for several officers and directors. These plans provide annual payments of various amounts upon retirement or death. The Company accrues the expense for these benefits by charges to operating expense during the period the respective officer or director attains full eligibility. The amount charged to operating expense during the years ended December 31, 2015 , 2014 and 2013 totaled $0.4 million , $0.3 million and $0.4 million , respectively. To provide the retirement benefits, the Company carries life insurance policies which had cash values totaling $14.7 million , $14.3 million and $13.9 million at December 31, 2015 , 2014 and 2013 , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock Compensation Plans The Company maintains the MidWest One Financial Group, Inc. 2008 Equity Incentive Plan (the “Plan”) as a means to attract, retain and reward certain designated employees and directors of, and service providers to, the Company and its subsidiaries. Under the terms of the Plan, the Company may grant a total of 750,000 total shares of the Company’s common stock as stock options, stock appreciation rights or stock awards (including restricted stock units) and may also grant cash incentive awards to eligible individuals. As of December 31, 2015 and 2014 , 460,757 and 492,878 shares, respectively, of the Company’s common stock remained available for future awards under the Plan. During 2015 , the Company recognized $634,000 of stock based compensation expense, which consisted of $634,000 of expense related to restricted stock unit grants and no expense related to stock option grants. In comparison, during 2014 , the Company recognized $493,000 of stock-based compensation expense, which consisted of $493,000 for restricted stock unit grants and nothing for stock option grants, while total stock-based compensation expense in 2013 was $384,000 which consisted of $380,000 for restricted stock unit grants and $4,000 for stock option grants. Incentive Stock Options: The Company is required to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as compensation expense in the Company’s consolidated statements of operations over the requisite service periods using a straight-line method. The Company assumes no projected forfeitures on its stock-based compensation, since actual historical forfeiture rates on its stock-based incentive awards have been negligible. The stock options have a maximum term of ten years, an exercise price equal to the fair market value of a share of stock on the date of grant and vest 25% per year over four years , with the first vesting date being the one-year anniversary of the grant date. The following is a summary of stock option activity for the year ended December 31, 2015 : Weighted- Average Weighted- Remaining Aggregate Average Contractual Intrinsic Exercise Term in Value Shares Price Years ($000) Outstanding at December 31, 2014 30,861 $ 14.08 Granted — — Exercised (8,414 ) 15.52 Forfeited — — Expired (147 ) 18.49 Outstanding at December 31, 2015 22,300 $ 13.51 2.42 $ 377 Exercisable at December 31, 2015 22,300 $ 13.51 2.42 $ 377 During 2015 , the Company received $129,000 of cash from the exercise of stock option awards and recorded a $7,000 tax benefit from these exercises. Plan participants realized an intrinsic value of $119,000 from the exercise of these stock options during 2015 . In comparison, Plan participants realized an intrinsic value of $109,000 and $362,000 from the exercise of stock options during 2014 and 2013 , respectively. As of December 31, 2015 , there were no remaining compensation costs related to nonvested stock options that have not yet been recognized. There were no stock option awards granted in 2015 , 2014 , or 2013 . Restricted Stock Units: Under the Plan, the Company may grant restricted stock unit awards that vest upon the completion of future service requirements or specified performance criteria. The fair value of these awards is equal to the market price of the common stock at the date of the grant. The Company recognizes stock-based compensation expense for these awards over the vesting period, using the straight-line method, based upon the number of awards ultimately expected to vest. Each restricted stock unit entitles the recipient to receive one share of stock on the vesting date. Generally, for employee awards, the restricted stock units vest 25% per year over four years , with the first vesting date being the one-year anniversary of the grant date, or 100% upon the death or disability of the recipient, or upon change of control (as defined in the Plan) of the Company. Beginning with the awards granted with an effective date of May 15, 2013, the restricted stock units awarded to directors vest 100% one year from the date of the award. Director awards made prior to May 15, 2013 generally vest 25% per year over four years . If a participant terminates employment or service prior to the end of the continuous service period, the unearned portion of the stock unit award may be forfeited, at the discretion of the Company’s Compensation Committee. The Company may also issue awards that vest upon satisfaction of specified performance criteria. For these types of awards, the final measure of compensation cost is based upon the number of shares that ultimately vest considering the performance criteria. The following is a summary of nonvested restricted stock unit activity for the year ended December 31, 2015 : Weighted- Average Grant-Date Shares Fair Value Nonvested at December 31, 2014 50,806 $ 22.17 Granted 34,100 29.08 Vested (23,123 ) 21.01 Forfeited (925 ) 23.74 Nonvested at December 31, 2015 60,858 $ 26.46 The fair value of restricted stock unit awards that vested during 2015 was $703,000 , compared to $792,000 and $533,000 during the years ended December 31, 2014 and 2013 , respectively. As of December 31, 2015 , the total compensation costs related to nonvested restricted stock units that have not yet been recognized totaled $1,075,000 , and the weighted average period over which these costs are expected to be recognized is approximately 2.5 years . Value Information: The risk-free interest rate assumption is based upon observed interest rates for the expected term of the Company’s stock options. The expected volatility input into the model takes into account the historical volatility of the Company’s stock over the period that it has been publicly traded or the expected term of the option. The expected dividend yield assumption is based upon the Company’s historical dividend payout determined at the date of grant, if any. |
Earnings per Share (Notes)
Earnings per Share (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Disclosure [Text Block] | Earnings per Share Basic per-share amounts are computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator). Diluted per share amounts assume issuance of all common stock issuable upon conversion or exercise of other securities, unless the effect is to reduce the loss or increase the income per common share from continuing operations. Following are the calculations for basic and diluted earnings per common share: Year Ended December 31, 2015 2014 2013 (dollars in thousands, except per share amounts) Basic earnings per common share computation Numerator: Net income $ 25,118 $ 18,522 $ 18,607 Denominator: Weighted average shares outstanding 10,362,929 8,405,284 8,477,904 Basic earnings per common share $ 2.42 $ 2.20 $ 2.19 Diluted earnings per common share computation Numerator: Net income $ 25,118 $ 18,522 $ 18,607 Denominator: Weighted average shares outstanding, included all dilutive potential shares 10,391,323 8,433,296 8,525,119 Diluted earnings per common share $ 2.42 $ 2.19 $ 2.18 |
Regulatory Capital Requirements
Regulatory Capital Requirements and Restrictions on Subsidiary Cash | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Regulatory Capital Requirements and Restrictions on Subsidiary Cash The Company (on a consolidated basis), and the banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the banks’ financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by the regulations in effect on December 31, 2015, to ensure capital adequacy require the Company and the banks to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 capital (as defined in the regulations) and Common Equity Tier 1 Capital (as defined) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2015 and 2014 , that the Company and the banks met all capital adequacy requirements to which they were subject. As of December 31, 2015 , the most recent notification from the Federal Deposit Insurance Corporation categorized the banks as well capitalized under the regulatory framework for prompt corrective action then in effect. To be categorized as well capitalized under those requirements, an institutions had to maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since the notification that management believes have changed the banks’ categories. Notwithstanding its compliance with the specified regulatory thresholds, however, MidWest One Bank’s board of directors, subsequent to December 31, 2008 , adopted a capital policy pursuant to which it will maintain a ratio of Tier 1 capital to total assets of 8% or greater, which ratio is greater than the ratio required to be well capitalized under the regulatory framework for prompt corrective action. This capital policy also provides that MidWest One Bank will maintain a ratio of total capital to total risk-weighted assets of at least 10% , which is equal to the threshold for being well capitalized under the regulatory framework for prompt corrective action. A comparison of the Company’s and the Banks’ capital with the corresponding minimum regulatory requirements in effect as of December 31, 2015 and December 31, 2014 , is presented below: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2015: Consolidated: Total capital/risk weighted assets $ 263,717 11.48 % $ 183,718 8.00 % N/A N/A Tier 1 capital/risk weighted assets 244,154 10.63 137,789 6.00 N/A N/A Common equity tier 1 capital/risk weighted assets 220,567 9.60 103,342 4.50 N/A N/A Tier 1 leverage capital/average assets 244,154 8.34 117,123 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $ 171,583 12.53 % $ 109,578 8.00 % $ 136,972 10.00 % Tier 1 capital/risk weighted assets 154,726 11.30 82,183 6.00 109,578 8.00 Common equity tier 1 capital/risk weighted assets 154,726 11.30 61,638 4.50 89,032 6.50 Tier 1 leverage capital/average assets 154,726 8.90 69,501 4.00 86,876 5.00 Central Bank: Total capital/risk weighted assets $ 102,718 11.14 % $ 73,792 8.00 % $ 92,240 10.00 % Tier 1 capital/risk weighted assets 100,017 10.84 55,344 6.00 73,792 8.00 Common equity tier 1 capital/risk weighted assets 100,017 10.84 41,508 4.50 59,956 6.50 Tier 1 leverage capital/average assets 100,017 8.44 47,412 4.00 59,265 5.00 At December 31, 2014: Consolidated: Total capital/risk weighted assets $ 212,559 14.73 % $ 115,407 8.00 % N/A N/A Tier 1 capital/risk weighted assets 194,362 13.47 57,703 4.00 N/A N/A Tier 1 leverage capital/average assets 194,362 10.85 71,647 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $ 197,018 13.75 % $ 114,624 8.00 % $ 143,280 10.00 % Tier 1 capital/risk weighted assets 179,098 12.50 57,312 4.00 85,968 6.00 Tier 1 leverage capital/average assets 179,098 10.05 71,249 4.00 89,061 5.00 The ability of the Company to pay dividends to its shareholders is dependent upon dividends paid by the banks to the Company. The banks are subject to certain statutory and regulatory restrictions on the amount of dividends they may pay. In addition, as previously noted, subsequent to December 31, 2008 , MidWest One Bank’s board of directors adopted a capital policy requiring it to maintain a ratio of Tier 1 capital to total assets of at least 8% and a ratio of total capital to risk-based capital of at least 10% . Failure to maintain these ratios also could limit the ability of the MidWest One Bank and Central Bank to pay dividends to the Company. The banks are required to maintain reserve balances in cash on hand or on deposit with Federal Reserve Banks. Reserve balances for MidWest One Bank and Central Bank collectively totaled $2.0 million and $1.8 million as of December 31, 2015 and 2014 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Financial instruments with off-balance sheet risk : The banks are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of their customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The banks use the same credit policies in making commitments and conditional obligations as they do for on-balance-sheet instruments. A summary of the banks’ commitments at December 31, 2015 and 2014 , is as follows: December 31, 2015 2014 (in thousands) Commitments to extend credit $ 417,927 $ 267,036 Commitments to sell loans 3,187 801 Standby letters of credit 16,146 3,204 Total $ 437,260 $ 271,041 The banks’ exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit is represented by the contractual 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. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The banks evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the banks upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, crops, livestock, inventory, property and equipment, residential real estate and income-producing commercial properties. Commitments to sell loans are agreements to sell loans held for sale to third parties at an agreed upon price. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The banks hold collateral, which may include accounts receivable, inventory, property, equipment and income-producing properties, that support those commitments, if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the banks would be required to fund the commitment. The maximum potential amount of future payments the banks could be required to make is represented by the contractual amount shown in the summary above. If the commitment is funded, the banks would be entitled to seek recovery from the customer. At both December 31, 2015 and 2014 , the amount recorded as liabilities for the banks’ potential obligations under these guarantees was $0.1 million . Building commitments : MidWest One Bank is party to contractual agreements related to certain major building projects entered into in 2013, with a total original estimated cost of $29.8 million . As of December 31, 2015 , an estimated $3.1 million remained to be paid on these contracts. The projects are scheduled for completion in 2016. Contingencies : In the normal course of business, the banks are involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the accompanying consolidated financial statements. Concentrations of credit risk : Substantially all of the banks’ loans, commitments to extend credit and standby letters of credit have been granted to customers in the banks’ market areas. Although the loan portfolio of the banks are diversified, approximately 71% of the loans are real estate loans and approximately 10% are agriculturally related. The concentrations of credit by type of loan are set forth in Note 4. Commitments to extend credit are primarily related to commercial loans and home equity loans. Standby letters of credit were granted primarily to commercial borrowers. Investments in securities issued by state and political subdivisions involve certain governmental entities within Iowa. The carrying value of investment securities of Iowa and Minnesota political subdivisions totaled $135.9 million and $53.4 million , respectively, as of December 31, 2015 . No individual municipality exceeded $5.0 million . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions Certain directors of the Company and certain principal officers are customers of, and have banking transactions with, the banks in the ordinary course of business. Such indebtedness has been incurred on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons. The following is an analysis of the changes in the loans to related parties during the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 2014 (in thousands) Balance, beginning $ 11,655 $ 22,392 Net decrease due to change in related parties (284 ) (10,275 ) Advances 3,919 2,420 Collections (5,043 ) (2,882 ) Balance, ending $ 10,247 $ 11,655 None of these loans are past due, nonaccrual or restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. Deposits from these related parties totaled $8.5 million and $6.5 million as of December 31, 2015 and 2014 , respectively. Deposits from related parties are accepted subject to the same interest rates and terms as those from nonrelated parties. The Company has from time to time engaged Neumann Monson, P.C. (“Neumann Monson”), an architectural services firm headquartered in Iowa City for which Kevin Monson, Vice Chairman of the Company, is President, Managing Partner and majority owner, to perform architectural and design services with respect to the Company's offices. During 2015 and 2014 , the Company paid Neumann Monson $254,000 and $315,000 , respectively, for such services. The engagement of Neumann Monson to provide the services described was reviewed by our Audit Committee, which also monitors the level of services by Neumann Monson on a periodic basis. Apart from the approval and monitoring process involving the Audit Committee, Neumann Monson was retained in the ordinary course of business, and the Company believes that such services are provided to the Company on terms no less favorable than those that would have been realized in transactions with unaffiliated parties. |
Estimated Fair Value of Financi
Estimated Fair Value of Financial Instruments and Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair value is the price that would be received in selling an asset or paid in transferring a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. GAAP requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, GAAP establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting 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 or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. • 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. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. The Company is required to use observable inputs, to the extent available, in the fair value estimation process unless that data results from forced liquidations or distressed sales. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. V aluation methods for instruments measured at fair value on a recurring basis Securities Available for Sale - The Company’s investment securities classified as available for sale include: debt securities issued by the U.S. Treasury and other U.S. Government agencies and corporations, debt securities issued by state and political subdivisions, mortgage-backed securities, collateralized mortgage obligations, corporate debt securities, and equity securities. Quoted exchange prices are available for equity securities, which are classified as Level 1. The Company utilizes an independent pricing service to obtain the fair value of debt securities. On a quarterly basis, the Company selects a sample of 30 securities from its primary pricing service and compares them to a secondary independent pricing service to validate value. In addition, the Company periodically reviews the pricing methodology utilized by the primary independent service for reasonableness. Debt securities issued by the U.S. Treasury and other U.S. Government agencies and corporations and mortgage-backed obligations are priced utilizing industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace and are classified as Level 2. Municipal securities are valued using a type of matrix, or grid, pricing in which securities are benchmarked against the treasury rate based on credit rating. These model and matrix measurements are classified as Level 2 in the fair value hierarchy. On an annual basis, a group of selected municipal securities are priced by a securities dealer and that price is used to verify the primary independent service’s valuation. The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2015 and 2014 . There were no liabilities subject to fair value measurement on a recurring basis as of these dates. The assets are segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurement at December 31, 2015 Using (in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Assets: Available for sale debt securities: U.S. Treasury securities $ 6,910 $ — $ 6,910 $ — U.S. Government agencies and corporations 26,653 — 26,653 — State and political subdivisions 183,384 — 183,384 — Mortgage-backed securities 57,062 — 57,062 — Collateralized mortgage obligations 106,404 — 106,404 — Corporate debt securities 45,566 — 45,566 — Total available for sale debt securities 425,979 — 425,979 — Other equity securities 1,262 1,262 — — Total securities available for sale $ 427,241 $ 1,262 $ 425,979 $ — Fair Value Measurement at December 31, 2014 Using (in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Available for sale debt securities: U.S. Government agencies and corporations $ 49,375 $ — $ 49,375 $ — State and political subdivisions 195,199 — 195,199 — Mortgage-backed securities 32,463 — 32,463 — Collateralized mortgage obligations 146,132 — 146,132 — Corporate debt securities 48,741 — 48,741 — Total available for sale debt securities 471,910 — 471,910 — Other equity securities 3,032 3,032 — — Total securities available for sale $ 474,942 $ 3,032 $ 471,910 $ — There were no transfers of assets between levels of the fair value hierarchy during the years ended December 31, 2015 and 2014 . There have been no changes in valuation techniques used for any assets measured at fair value during the year ended December 31, 2015 . The following table presents additional information about assets measured at fair market value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value for the years ended December 31, 2015 and 2014 : For the Years Ended December 31, 2015 2014 Collateralized Debt Obligations Collateralized Debt Obligations (in thousands) Beginning balance $ — $ 1,317 Transfers into Level 3 — — Transfers out of Level 3 — — Total gains (losses): Included in earnings — 782 Included in other comprehensive income — 794 Purchases, issuances, sales, and settlements: Purchases — — Issuances — — Sales — (2,893 ) Settlements — — Ending Balance $ — $ — In December 2013 the Company was notified by the trustee of one of the collateralized debt obligations it owns that the security was in the process of being liquidated. The Company recorded a receivable for the expected amount of the liquidation payment and wrote-off the book value of the security. The remaining five CDOs were sold in the first quarter of 2014 at a net gain of $0.8 million . Changes in the fair value of available-for-sale securities are included in other comprehensive income to the extent the changes are not considered OTTI. OTTI tests are performed on a quarterly basis and any decline in the fair value of an individual security below its cost that is deemed to be other than temporary results in a write-down that is reflected directly in the Company’s consolidated statements of operations. Valuation methods for instruments measured at fair value on a nonrecurring basis Collateral Dependent Impaired Loans - From time to time, a loan is considered impaired and an allowance for credit losses is established. The specific reserves for collateral dependent impaired loans are based on the fair value of the collateral less estimated costs to sell. The fair value of collateral is determined based on appraisals. In some cases, adjustments are made to the appraised values due to various factors, including age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in the collateral. Because many of these inputs are unobservable, the valuations are classified as Level 3. Other Real Estate Owned (“OREO”) - OREO represents property acquired through foreclosures and settlements of loans. Property acquired through or in lieu of foreclosure are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. The Company considers third party appraisals as well as independent fair value assessments from real estate brokers or persons involved in selling OREO in determining the fair value of particular properties. Accordingly, the valuation of OREO is subject to significant external and internal judgment. The Company also periodically reviews OREO to determine whether the property continues to be carried at the lower of its recorded book value or fair value of the property, less disposal costs. Because many of these inputs are unobservable, the valuations are classified as Level 3. The following table discloses the Company’s estimated fair value amounts of its financial instruments recorded at fair value on a nonrecurring basis. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of December 31, 2015 and 2014 , as more fully described above. Fair Value Measurement at December 31, 2015 Using (in thousands) Total Quoted Prices in Significant Other Significant Unobservable Inputs (Level 3) Assets: Collateral dependent impaired loans $ 23,812 $ — $ — $ 23,812 Other real estate owned $ 8,834 $ — $ — $ 8,834 Fair Value Measurement at December 31, 2014 Using (in thousands) Total Quoted Prices in Significant Other Significant Assets: Collateral dependent impaired loans $ 3,412 $ — $ — $ 3,412 Other real estate owned $ 1,916 $ — $ — $ 1,916 The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at December 31, 2015 and 2014 . The information presented is subject to change over time based on a variety of factors. The operations of the Company are managed on a going concern basis and not a liquidation basis. As a result, the ultimate value realized from the financial instruments presented could be substantially different when actually recognized over time through the normal course of operations. Additionally, a substantial portion of the Company’s inherent value is the banks' capitalization and franchise value. Neither of these components has been given consideration in the presentation of fair values below. December 31, 2015 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial assets: Cash and cash equivalents $ 47,097 $ 47,097 $ 47,097 $ — $ — Investment securities: Available for sale 427,241 427,241 1,262 425,979 — Held to maturity 118,423 118,234 — 118,234 — Total investment securities 545,664 545,475 1,262 544,213 — Loans held for sale 3,187 3,262 — — 3,262 Loans, net 2,132,515 2,132,009 — 2,132,009 — Loan pool participations, net — — — — — Accrued interest receivable 13,736 13,736 13,736 — — Federal Home Loan Bank stock 9,832 9,832 — 9,832 — Financial liabilities: Deposits: Non-interest-bearing demand 559,586 559,586 559,586 — — Interest-bearing checking 1,064,350 1,064,350 1,064,350 — — Savings 189,489 189,489 189,489 — — Certificates of deposit under $100,000 348,268 346,875 — 346,875 — Certificates of deposit $100,000 and over 301,828 301,521 — 301,521 — Total deposits 2,463,521 2,461,821 1,813,425 648,396 — Federal funds purchased and securities sold under agreements to repurchase 68,963 68,963 68,963 — — Federal Home Loan Bank borrowings 87,000 86,817 — 86,817 — Junior subordinated notes issued to capital trusts 23,587 18,611 — 18,611 — Long-term debt 22,500 22,500 — 22,500 — Accrued interest payable 1,507 1,507 1,507 — — December 31, 2014 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial assets: Cash and cash equivalents $ 23,409 $ 23,409 $ 23,409 $ — $ — Investment securities: Available for sale 474,942 474,942 3,032 471,910 — Held to maturity 51,524 51,253 — 51,253 — Total investment securities 526,466 526,195 3,032 523,163 — Loans held for sale 801 812 — — 812 Loans, net 1,116,156 1,116,285 — 1,116,285 — Loan pool participations, net 19,332 19,332 — — 19,332 Accrued interest receivable 10,898 10,898 10,898 — — Federal Home Loan Bank stock 8,582 8,582 — 8,582 — Financial liabilities: Deposits: Non-interest bearing demand 214,461 214,461 214,461 — — Interest-bearing checking 618,540 618,540 618,540 — — Savings 102,527 102,527 102,527 — — Certificates of deposit under $100,000 235,395 235,401 — 235,401 — Certificates of deposit $100,000 and over 237,619 238,480 — 238,480 — Total deposits 1,408,542 1,409,409 935,528 473,881 — Federal funds purchased and securities sold under agreements to repurchase 78,229 78,229 78,229 — — Federal Home Loan Bank borrowings 93,000 93,051 — 93,051 — Junior subordinated notes issued to capital trusts 15,464 10,021 — 10,021 — Long-term debt — — — — — Accrued interest payable 863 863 863 — — • Cash and cash equivalents, federal funds purchased, securities sold under repurchase agreements, and accrued interest are instruments with carrying values that approximate fair value. • Investment securities available for sale are measured at fair value on a recurring basis. Held to maturity securities are carried at amortized cost. Fair value is based upon quoted prices, if available. If a quoted price is not available, the fair value is obtained from benchmarking the security against similar securities by using a third-party pricing service. • Loans held for sale are carried at the lower of cost or fair value, with fair value being based on recent observable loan sales. The portfolio has historically consisted primarily of residential real estate loans. • For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are determined using estimated future cash flows, discounted at the interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. The Company does record nonrecurring fair value adjustments to loans to reflect (1) partial write-downs and allowances that are based on the observable market price or appraised value of the collateral or (2) the full charge-off of the loan carrying value. • Loan pool participation carrying values represent the discounted price paid by us to acquire our participation interests in the various loan pool participations purchased, which approximates fair value. • The fair value of FHLB stock is estimated at its carrying value and redemption price of $100 per share. • Deposit liabilities are carried at historical cost. The fair value of demand deposits, savings accounts and certain money market account deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. If the fair value of the fixed maturity certificates of deposit is calculated at less than the carrying amount, the carrying value of these deposits is reported as the fair value. • FHLB borrowings, junior subordinated notes issued to capital trusts, and long-term debt are recorded at historical cost. The fair value of these items is estimated using discounted cash flow analysis, based on the Company's current incremental borrowing rates for similar types of borrowing arrangements. The following presents the valuation technique(s), observable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company at December 31, 2015 , categorized within Level 3 of the fair value hierarchy: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at December 31, 2015 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans 23,812 Modified appraised value Third party appraisal NM * NM * NM * Appraisal discount NM * NM * NM * Other real estate owned 8,834 Modified appraised value Third party appraisal NM * NM * NM * Appraisal discount NM * NM * NM * * Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered include age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing a range would not be meaningful. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entity [Text Block] | Variable Interest Entities The Company had invested in certain participation certificates of loan pools which were purchased, held and serviced by a third-party independent servicing corporation. The Company's portfolio held approximately 95% of the participation interests in the pools of loans owned and serviced by States Resources Corporation (“SRC”), a third-party loan servicing organization located in Omaha, Nebraska, in which the Company participated. SRC's owner held the remaining interest. The Company did not have any ownership interest in or exert any control over SRC, and thus it was not included in the consolidated financial statements. The Company exited this line of business in June 2015. These pools of loans were purchased from large nonaffiliated banking organizations and from the FDIC acting as receiver of failed banks and savings associations. As loan pools were put out for bid (generally in a sealed bid auction), SRC’s due diligence teams evaluated the loans and determined their interest in bidding on the pool. After the due diligence, the Company’s management reviewed the status and decided if it wished to continue in the process. If the decision to consider a bid was made, SRC conducted additional analysis to determine the appropriate bid price. This analysis involved discounting loan cash flows with adjustments made for expected losses, changes in collateral values as well as targeted rates of return. A cost or investment basis was assigned to each individual loan on a cents-per-dollar (discounted price) basis based on SRC’s assessment of the recovery potential of each loan. Once a bid was awarded to SRC, the Company assumed the risk of profit or loss but on a non-recourse basis so the risk was limited to its initial investment. The extent of the risk was also dependent upon: the debtor or guarantor’s financial condition, the possibility that a debtor or guarantor may file for bankruptcy protection, SRC’s ability to locate any collateral and obtain possession, the value of such collateral, and the length of time it took to realize the recovery either through collection procedures, legal process, or resale of the loans after a restructure. Loan pool participations were shown on the Company’s consolidated balance sheets as a separate asset category. The original carrying value or investment basis of loan pool participations was the discounted price paid by the Company to acquire its interests, which, as noted, was less than the face amount of the underlying loans. The Company’s investment basis was reduced as SRC recovered principal on the loans and remitted its share to the Company or as loan balances were written off as uncollectible. |
Operating Segments (Notes)
Operating Segments (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Operating Segments Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company’s internal organization, focusing on the financial information that the Company’s operating decision-makers routinely use to make decisions about operating matters. The Company’s primary segment, Commercial Banking, is geographically divided by markets into the secondary segments which are the two subsidiary banks wholly-owned by the Company: MidWest One Bank and Central Bank (which was acquired May 1, 2015). Each of these secondary segments offers similar products and services, with each offering commercial, consumer, and mortgage loans and deposit services. The Company’s All Other segment includes the operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds, as well as the corporate operations of the parent company. The following table presents summary financial information for the reportable segments for the years ended December 31, 2015 , 2014 , and 2013 : Commercial Banking (in thousands) MidWest One Bank Central Bank All Other Intercompany Eliminations Consolidated Total Year ended December 31, 2015 Net interest income $ 55,414 $ 35,801 $ (1,163 ) $ — $ 90,052 Provision for loan losses 1,950 3,182 — — 5,132 Noninterest income 14,625 5,457 1,111 — 21,193 Noninterest expense (1) 40,153 26,555 6,468 — 73,176 Income tax expense (benefit) 5,161 4,562 (1,904 ) — 7,819 Net income $ 22,775 $ 6,959 $ (4,616 ) $ — $ 25,118 Goodwill $ — $ 64,548 $ — $ — $ 64,548 Total assets $ 1,720,819 $ 1,267,387 $ 343,523 $ (351,754 ) $ 2,979,975 Year ended December 31, 2014 Net interest income $ 55,377 $ — $ (524 ) $ — $ 54,853 Provision for loan losses 1,200 — — — 1,200 Noninterest income 14,016 — 1,297 — 15,313 Noninterest expense (1) 39,855 — 3,558 — 43,413 Income tax expense (benefit) 7,806 — (775 ) — 7,031 Net income $ 20,532 $ — $ (2,010 ) $ — $ 18,522 Goodwill $ — $ — $ — $ — $ — Total assets $ 1,793,428 $ — $ 210,544 $ (203,670 ) $ 1,800,302 Year ended December 31, 2013 Net interest income $ 55,159 $ — $ (1,197 ) — $ 53,962 Provision for loan losses 1,350 — — — 1,350 Noninterest income 13,436 — 1,292 — 14,728 Noninterest expense 39,827 — 2,260 — 42,087 Income tax expense (benefit) 7,514 — (868 ) — 6,646 Net income $ 19,904 $ — $ (1,297 ) $ — $ 18,607 Goodwill $ — $ — $ — $ — $ — Total assets $ 1,744,408 $ — $ 195,172 $ (184,362 ) $ 1,755,218 (1) Includes merger-related expenses of $3.5 million and $1.1 million for the year ended December 31, 2015 and December 31, 2014 , respectively, included in the All Other segment. |
Branch Sales (Notes)
Branch Sales (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Branch Sales On September 10, 2015, MidWestOne Bank, a wholly owned subsidiary of the Company, entered into an agreement to sell its Ottumwa, Iowa branch to Peoples State Bank headquartered in Albia, Iowa, a unit of Peoples Tri-County BanCorp. Peoples State Bank assumed approximately $33 million in deposits and $17 million in loans on the sale completion date of December 4, 2015, and the Company realized a net gain of $0.7 million , which is included on the Consolidated Statements of Operation in Other service charges, commissions and fees. On September 24, 2015, Central Bank, a wholly owned subsidiary of the Company, entered into an agreement to sell its Barron and Rice Lake, Wisconsin branches to Citizens Community Federal Bank (“CCF Bank”) headquartered in Altoona, Wisconsin, a unit of Citizens Community Bancorp, Inc. of Eau Claire, Wisconsin. The transaction was completed on February 5, 2016. Please see Note 25 "Subsequent Events" for more information. |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Parent Company Only Financial Information The following is condensed financial information of MidWest One Financial Group, Inc. as of December 31, 2015 and 2014 (parent company only): As of December 31, 2015 2014 (in thousands) Balance Sheets Assets Cash $ 4,489 $ 5,942 Investment in subsidiaries 331,612 193,600 Investment securities available for sale 300 1,602 Investment securities held to maturity 743 464 Loan pool participations, net — 1,964 Income tax receivable 571 — Deferred income taxes — 425 Other assets 4,976 5,010 Total assets $ 342,691 $ 209,007 Liabilities and Shareholders’ Equity Liabilities: Junior subordinated notes issued to capital trusts $ 23,587 $ 15,464 Long-term debt 22,500 — Deferred income taxes 113 — Other liabilities 313 812 Total liabilities 46,513 16,276 Shareholders’ equity: Capital stock, preferred — — Capital stock, common 11,713 8,690 Additional paid-in capital 163,487 80,537 Treasury stock (6,331 ) (6,945 ) Retained earnings 123,901 105,127 Accumulated other comprehensive income 3,408 5,322 Total shareholders’ equity 296,178 192,731 Total liabilities and shareholders’ equity $ 342,691 $ 209,007 The following is condensed financial information of MidWest One Financial Group, Inc. as of December 31, 2015 , 2014 , and 2013 (parent company only): Year Ended December 31, 2015 2014 2013 (in thousands) Statements of Income Dividends received from subsidiaries $ 53,511 $ 8,500 $ 4,006 Interest income and dividends on investment securities 30 49 33 Interest and discount on loan pool participations (69 ) (293 ) (940 ) Investment securities gains 188 — — Loss on sale of loan pool participations (455 ) — — Interest on debt (1,135 ) (281 ) (296 ) Operating expenses (5,233 ) (2,351 ) (1,034 ) Income before income taxes and equity in subsidiaries’ undistributed income 46,837 5,624 1,769 Income tax benefit (1,951 ) (807 ) (890 ) Income before equity in subsidiaries’ undistributed income 48,788 6,431 2,659 Equity in subsidiaries’ undistributed income (23,670 ) 12,091 15,948 Net income $ 25,118 $ 18,522 $ 18,607 The following is condensed financial information of MidWest One Financial Group, Inc. as of December 31, 2015 , 2014 , and 2013 (parent company only): Year Ended December 31, 2015 2014 2013 (in thousands) Statements of Cash Flows Cash flows from operating activities: Net income $ 25,118 $ 18,522 $ 18,607 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed (earnings) loss of subsidiaries, net of dividends and distributions 23,670 (12,091 ) (15,948 ) Amortization of premium on junior subordinated notes issued to capital trusts 73 — — Deferred income taxes 617 330 (583 ) Investment securities gain (188 ) — — Stock based compensation 634 493 384 (Increase) decrease in other assets 518 (488 ) (232 ) Increase (decrease) in other liabilities (907 ) 550 (15 ) Net cash provided by operating activities 49,535 7,316 2,213 Cash flows from investing activities Proceeds from sales of available for sale securities 1,173 2 2 Purchase of available for sale securities (14 ) (29 ) (24 ) Proceeds from maturities and calls of held to maturity securities 246 — — Loan participation pools, net 1,964 1,445 2,719 Net cash acquired in business combination (62,902 ) — — Investment in subsidiary - Central Bank (3,000 ) — — Net cash provided by (used in) investing activities (62,533 ) 1,418 2,697 Cash flows from financing activities: Stock options exercised 158 282 320 Repurchase of common stock — (3,987 ) (967 ) Redemption of subordinated note payable (12,669 ) — — Proceeds from long-term debt 25,000 — — Payments on long-term debt (2,500 ) — — Issuance of common stock, net of expenses 7,900 — — Dividends paid (6,344 ) (4,868 ) (4,259 ) Net cash provided by (used in) financing activities 11,545 (8,573 ) (4,906 ) Increase (decrease) in cash (1,453 ) 161 4 Cash Balance: Beginning 5,942 5,781 5,777 Ending $ 4,489 $ 5,942 $ 5,781 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Management evaluated subsequent events through the date the consolidated financial statements were issued. Events or transactions occurring after December 31, 2015 , but prior to the date the consolidated financial statements were issued, that provided additional evidence about conditions that existed at December 31, 2015 have been recognized in the consolidated financial statements for the period ended December 31, 2015 . Events or transactions that provided evidence about conditions that did not exist at December 31, 2015 , but arose before the consolidated financial statements were issued, have not been recognized in the consolidated financial statements for the period ended December 31, 2015 . On January 19, 2016 , the board of directors of the Company declared a cash dividend of $0.16 per share payable on March 15, 2016 to shareholders of record as of the close of business on March 1, 2016 . On February 5, 2016, Central Bank, a wholly owned subsidiary of the Company, completed the sale of its Barron and Rice Lake, Wisconsin branches to Citizens Community Federal Bank (“CCF Bank”) headquartered in Altoona, Wisconsin, a unit of Citizens Community Bancorp, Inc. of Eau Claire, Wisconsin. CCF Bank assumed approximately $27.1 million in deposits and $16.4 million in loans, and the Company realized a net gain of $0.7 million . |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Results of Operations (unaudited) Three Months Ended December 31 September 30 June 30 March 31 (in thousands, except per share amounts) 2015 Interest income $ 29,044 $ 29,989 $ 25,185 $ 16,482 Interest expense (1) 2,716 3,230 2,462 2,240 Net interest income 26,328 26,759 22,723 14,242 Provision for loan losses 1,490 2,141 901 600 Noninterest income 6,638 5,460 5,087 4,008 Noninterest expense (1) 21,809 20,342 19,846 11,179 Income before income taxes 9,667 9,736 7,063 6,471 Income tax expense 1,429 2,121 2,594 1,675 Net income $ 8,238 $ 7,615 $ 4,469 $ 4,796 Net income per common share - basic $ 0.72 $ 0.67 $ 0.43 $ 0.57 Net income per common share - diluted $ 0.72 $ 0.67 $ 0.42 $ 0.57 2014 Interest income $ 16,311 $ 15,996 $ 16,176 $ 15,921 Interest expense 2,407 2,429 2,321 2,394 Net interest income 13,904 13,567 13,855 13,527 Provision for loan losses 300 150 300 450 Noninterest income 3,534 4,006 3,556 4,217 Noninterest expense 11,563 10,819 10,639 10,392 Income before income taxes 5,575 6,604 6,472 6,902 Income tax expense 1,668 1,715 1,719 1,929 Net income $ 3,907 $ 4,889 $ 4,753 $ 4,973 Net income per common share - basic $ 0.46 $ 0.59 $ 0.56 $ 0.59 Net income per common share - diluted $ 0.46 $ 0.59 $ 0.56 $ 0.58 (1) Certain amounts in the prior periods have been reclassified to conform to the current year presentation, with no effect on net income. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The U.S. economic environment in recent years has increased the degree of uncertainty inherent in these estimates. Certain significant estimates : The allowance for loan losses, fair value of assets acquired and liabilities assumed in a business combination, annual impairment testing of goodwill, and the fair values of investment securities and other financial instruments involve certain significant estimates made by management. These estimates are reviewed by management routinely, and it is reasonably possible that circumstances that exist may change in the near-term future and that the effect could be material to the consolidated financial statements. |
Consolidation, Policy [Policy Text Block] | The consolidated financial statements include the accounts of MidWest One Financial Group, Inc., a bank holding company, and its wholly-owned subsidiaries which include MidWest One Bank and Central Bank, both of which are state chartered banks whose primary federal regulator is the Federal Deposit Insurance Corporation, and MidWest One Insurance Services, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. Trust assets, other than cash deposits held by MidWest One Bank in a fiduciary or agency capacity for its customers, are not included in the accompanying consolidated financial statements because such accounts are not assets of the MidWest One Bank. In the normal course of business, the Company may enter into a transaction with a variable interest entity (“VIE”). VIEs are legal entities whose investors lack the ability to make decisions about the entity’s activities, or whose equity investors do not have the right to receive the residual returns of the entity. The applicable accounting guidance requires the Company to perform ongoing quantitative and qualitative analysis to determine whether it must consolidate any VIE. The Company does not have any ownership interest in or exert any control over any VIE, and thus no VIEs are included in the consolidated financial statements. Investments in non-marketable loan participation certificates for which the Company does not have the ability to exert significant influence are accounted for using the cost method. |
Cash and Cash Equivalents, Policy [Policy Text Block] | For purposes of reporting cash flows, cash and due from banks includes cash on hand, amounts due from banks, and federal funds sold. Cash flows from portfolio loans originated by the banks, deposits, federal funds purchased, and securities sold under agreements to repurchase are reported net. |
Marketable Securities, Policy [Policy Text Block] | Certain debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. The Company carries its investment securities at fair value, and the Company employs valuation techniques which utilize observable inputs when those inputs are available. These observable inputs reflect assumptions market participants would use in pricing the security, developed based on market data obtained from sources independent of the Company. When such information is not available, the Company employs valuation techniques which utilize unobservable inputs, or those which reflect the Company’s own assumptions about assumptions that market participants would use, based on the best information available in the circumstances. These valuation methods typically involve cash flow and other financial modeling techniques. Changes in underlying factors, assumptions, estimates, or other inputs to the valuation techniques could have a material impact on the Company’s future financial condition and results of operations. Fair value measurements are required to be classified as Level 1 (quoted prices), Level 2 (based on observable inputs) or Level 3 (based on unobservable inputs) discussed in more detail in Note 20 to the consolidated financial statements. Available for sale securities are recorded at fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity until realized. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other than temporary impairment exists, management considers whether: (1) we have the intent to sell the security; (2) it is more likely than not that we will be required to sell the security before recovery of the amortized cost basis; and (3) we do not expect to recover the entire amortized cost basis of the security. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
Finance, Loan and Lease Receivables, Held-for-investment, Policy [Policy Text Block] | Loans are stated at the principal amount outstanding, net of deferred loan fees and costs and allowance for loan losses. Interest on loans is credited to income as earned based on the principal amount outstanding. Deferred loan fees and costs are amortized using the level yield method over the remaining maturities on the loans. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due, unless the credit is well secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date, if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Loans Acquired in Transfer, Policy [Policy Text Block] | All purchased loans (nonimpaired and impaired) are initially measured at fair value as of the acquisition date in accordance with applicable authoritative accounting guidance. Credit discounts are included in the determination of fair value. An allowance for loan losses is not recorded at the acquisition date for loans purchased. Individual loans acquired through the completion of a transfer, including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are referred to herein as “purchased credit impaired loans.” In determining the acquisition date fair vale and estimated credit losses of purchased credit impaired loans, and in subsequent accounting, the Company accounts for loans individually. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment or as a loss accrual or valuation allowance. Expected cash flows at the purchase date in excess of the fair value of loans, if any, are recorded as interest income over the expected life of the loans if the timing and amount of future cash flows are reasonably estimable. Subsequent to the purchased date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording an allowance for loan losses and a provision for loan losses. If the Company does not have the information necessary to reasonable estimate cash flows to be expected, it may use the cost-recovery method or cash-basis method of income recognition. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. Subsequent to the purchase date, the methods utilized to estimate the required allowance for loan losses for these loans are similar to originated loans. The remaining differences between the purchase price and the unpaid balance at the date of acquisition are recorded in interest income over the life of the loan. |
FDIC Indemnification Asset [Policy Text Block] | As part of the Central Bank transaction, the Company assumed loss-share or similar credit protection agreements with the FDIC. Loans and other real estate owned covered under these agreements are reported respectively in loans or other real estate owned. The loss-share assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Company choose to dispose of them. Fair values at the acquisition dates were estimated based on projected collections from the FDIC. When cash flow estimates are adjusted downward for a particular loan, the FDIC indemnification asset is increased. An allowance for loan and lease losses is established for the impairment of the loans. A provision for credit losses is recognized for the decrease in cash flows and the FDIC indemnification asset is increased. When cash flow estimates are adjusted upward for a particular loan, the FDIC indemnification asset is decreased. The difference between the decrease in the FDIC indemnification asset and the increase in cash flows is accreted over the estimated life of the loan. When cash flow estimates are adjusted downward for covered foreclosed real estate, the FDIC indemnification asset is increased. A charge is recognized for the difference between the increase in the FDIC indemnification asset and the decrease in cash flows. When cash flow estimates are adjusted upward for covered foreclosed real estate, the FDIC indemnification asset is decreased. Any write-down after the transfer to covered foreclosed real estate is reversed. In applicable scenarios, the claw-back liability for amounts owed to the FDIC for better than expected performance will increase or decrease accordingly. Subsequent to initial recording, the indemnification asset is subject to impairment testing. Additionally, if expected cash flows on covered assets increase, the Company accounts for the associated decrease in the indemnification asset by amortizing the change over the lessor of the contractual term of the indemnification agreement or the remaining life of the indemnified asset. The related FDIC indemnification assets are included in other assets, and there was no impairment recorded in 2015 . |
Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block] | Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price plus the value of servicing rights, less the carrying value of the related mortgage loans sold. |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | The allowance for loan losses is established as losses estimated to have been incurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectiblity of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as doubtful, substandard or special mention. For such loans that are also classified as impaired as well as any loan (regardless of classification) meeting the definition of a troubled debt restructuring, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. The general component covers loans not classified as impaired and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects that margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. 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. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent. Large groups of smaller-balance, homogeneous loans are collectively evaluated for impairment. Accordingly, the Company generally does not separately identify individual consumer and residential loans for impairment unless they meet the definition of a troubled debt restructure. The Allowance for Loan and Lease Losses - Bank Loans The Company requires the maintenance of an adequate allowance for loan and lease losses (“ALLL”) in order to cover estimated probable losses without eroding the Company's capital base. Calculations are done at each quarter end, or more frequently if warranted, to analyze the collectability of loans and to ensure the adequacy of the allowance. In line with FDIC directives, the ALLL calculation does not include consideration of loans held for sale or off-balance-sheet credit exposures (such as unfunded letters of credit). Determining the appropriate level for the ALLL relies on the informed judgment of management, and as such, is subject to inaccuracy. Given the inherently imprecise nature of calculating the necessary ALLL, the Company's policy permits an "unallocated" allowance between 15% above and 5% below the “indicated reserve.” These unallocated amounts are due to those overall factors impacting the ALLL that are not captured in detailed loan category calculations. |
Transfers and Servicing of Financial Assets, Servicing of Financial Assets, Policy [Policy Text Block] | Revenue from the origination and sale of loans in the secondary market is recognized upon the transfer of financial assets and accounted for as sales when control over the assets has been surrendered. The Company also sells participation interests in some large loans originated, to non-affiliated entities. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company; (2) the transferee has the right to pledge or exchange the assets it received and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Revenue Recognition, Sales of Services [Policy Text Block] | Trust fees, deposit account service charges and other fees are recognized when payment is received for the services (cash basis), which generally occurs at the time the services are provided. |
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | 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. The Company records a liability to the extent losses on its commitments to lend are probable. |
Property, Plant and Equipment, Policy [Policy Text Block] | Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. The estimated useful lives and primary method of depreciation for the principal items are as follows: Years Type of Assets Minimum Maximum Depreciation Method Buildings and leasehold improvements 10 - 30 Straight-line Furniture and equipment 3 - 10 Straight-line Charges for maintenance and repairs are expensed as incurred. When assets are retired or disposed of the related cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is recorded. |
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy [Policy Text Block] | Real estate properties acquired through or in lieu of foreclosure are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Fair value is determined by management by obtaining appraisals or other market value information at least annually. Any write-downs in value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management by obtaining updated appraisals or other market value information. Any subsequent write-downs are recorded as a charge to operations, if necessary, to reduce the carrying value of a property to the updated fair value less estimated selling cost. Net costs related to the holding of properties are included in noninterest expense. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and other intangibles : Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for as purchases. Under ASC Topic 350, goodwill of a reporting unit is tested for impairment on an annual basis, or between annual tests if an event occurs or circumstances change that would reduce the fair value of a reporting unit below its carrying amount. The Company's annual assessment is done at the unit level. The Company did not recognize impairment losses during the year ended December 31, 2015 . Any future impairment will be recorded as noninterest expense in the period of assessment. Certain other intangible assets that have finite lives are amortized over the remaining useful lives. |
Transfers and Servicing of Financial Assets, Servicing of Financial Assets, Policy [Policy Text Block] | Mortgage servicing rights are recorded at fair value based on assumptions through a third-party valuation service. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the servicing cost per loan, the discount rate, the escrow float rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. |
Bank Owned Life Insurance [Policy Text Block] | Bank-owned life insurance is carried at cash surrender value, net of surrender and other charges, with increases/decreases reflected as income/expense in the consolidated statements of operations. |
Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | Deferred benefits under a salary continuation plan are charged to expense during the period in which the participating employees attain full eligibility. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Compensation expense for share based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. The Company assumes no projected forfeitures on its stock based compensation, since actual historical forfeiture rates on its stock-based incentive awards has been negligible. |
Income Tax, Policy [Policy Text Block] | Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC 740, Income Taxes , the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. There were no material unrecognized tax benefits or any interest or penalties on any unrecognized tax benefits as of December 31, 2015 and 2014 . |
Stockholders' Equity, Policy [Policy Text Block] | On January 15, 2013 , the Company's board of directors announced the renewal of the Company's share repurchase program, extending the expiration of the program to December 31, 2014 and increasing the remaining amount of authorized repurchases under the program to $5.0 million from the approximately $2.4 million of authorized repurchases that had previously remained. Pursuant to the program, the Company could continue to repurchase shares from time to time in the open market, and the method, timing and amounts of repurchase would be solely in the discretion of the Company's management. The repurchase program did not require the Company to acquire a specific number of shares. Therefore, the amount of shares repurchased pursuant to the program would depend on several factors, including market conditions, capital and liquidity requirements, and alternative uses for cash available. In 2013, we repurchased 113,566 shares of common stock at a cost of $2.8 million . On July 17, 2014 , the board of directors of the Company approved a new share repurchase program, allowing for the repurchase of up to $5.0 million of stock through December 31, 2016 . The new repurchase program replaced the Company's prior repurchase program, pursuant to which the Company had repurchased approximately $3.7 million of common stock since January 1, 2013. Pursuant to the new program, the Company may continue to repurchase shares from time to time in the open market, and the method, timing and amounts of repurchase will be solely in the discretion of the Company's management. The repurchase program does not require the Company to acquire a specific number of shares. Therefore, the amount of shares repurchased pursuant to the program will depend on several factors, including market conditions, capital and liquidity requirements, and alternative uses for cash available. In 2014, we repurchased 165,766 shares of common stock at a cost of $4.0 million . In 2015 we repurchased no shares of common stock. Of the $5.0 million of stock authorized under the repurchase plan, $3.8 million remained available for possible future repurchases as of December 31, 2015 . In addition, as part of the agreement with Central, the Company issued 2,723,083 shares of Company common stock to Central’s shareholders upon consummation of the transaction. |
Comprehensive Income, Policy [Policy Text Block] | Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of shareholders’ equity on the consolidated balance sheets, and are disclosed in the consolidated statements of comprehensive income. The components of accumulated other comprehensive income, included in shareholders’ equity, net of tax, are as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Unrealized gains on securities available for sale, net of tax $ 3,408 $ 5,322 $ 1,049 Accumulated other comprehensive income, net of tax $ 3,408 $ 5,322 $ 1,049 |
New Accounting Pronouncements, Policy [Policy Text Block] | In January 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects . The objective of this update is to provide guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. The low-income housing tax credit program is designed to encourage private capital investment in the construction and rehabilitation of low-income housing. This program is an indirect tax subsidy that allows investors in a flow-through limited liability entity, such as limited partnerships or limited liability companies that manage or invest in qualified affordable housing projects, to receive the benefits of the tax credits allocated to the entity that owns the qualified affordable housing project. The tax credits are allowable on the tax return each year over a 10-year period as a result of a sufficient number of units being rented to qualifying tenants and are subject to restrictions on gross rentals paid by those tenants. Those credits are subject to recapture over a 15-year period starting with the first year tax credits are earned. The amendments in this update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. For public entities, the amendments are to be applied retrospectively to all annual periods and interim reporting periods presented within those annual periods, beginning after December 15, 2014. The adoption of this amendment did not have a material effect on the Company’s consolidated financial statements. In January 2014, the FASB issued Accounting Standards Update No. 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure . The objective of this update is to reduce diversity by clarifying when an in-substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. For public entities, the amendments are effective for reporting periods beginning after December 31, 2014, with early adoption permitted. The adoption of this amendment did not have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contract with Customers (Topic 606) . The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following five steps: 1) identify the contracts(s) with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. For a public entity, the amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The adoption of this amendment is not expected to have a material effect on the Company’s consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures . The guidance in this update changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires enhanced disclosures about repurchase agreements and other similar transactions. The accounting changes in this update are effective for public companies for the first interim or annual period beginning after December 15, 2014. In addition, for public companies, the disclosure for certain transactions accounted for as a sale is effective for the first interim or annual period beginning on or after December 15, 2014, and the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early application is not permitted. The adoption of this amendment did not have a material effect on the Company’s consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure . This update provides guidance on how to classify and measure certain government-guaranteed mortgage loans upon foreclosure, most commonly those offered by the Federal Housing Administration of the U.S. Department of Housing and Urban Development, and the U.S. Department of Veterans Affairs. The ASU requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: 1) the loan has a government guarantee that is not separable from the loan before foreclosure; 2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under the claim; and 3) at the time of foreclosure, an amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The accounting changes in this update are effective for public companies for annual periods, and the interim periods within those annual periods, beginning after December 15, 2014. Early application is permitted under certain circumstances. The adoption of this amendment did not have a material effect on the Company’s consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The amendments in this update provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendment should reduce diversity in the timing and content of footnote disclosures. Disclosures are required if it is probable an entity will be unable to meet its obligations within the look-forward period of twelve months after the financial statements are made available. Incremental substantial doubt disclosure is required if the probability is not mitigated by management’s plans. The new standard applies to all entities for the first annual period ending after December 15, 2016, and interim periods thereafter. The adoption of this standard is not expected to have a material effect on the Company’s consolidated financial statements. In July 2015, the FASB announced a delay to the effective date of Accounting Standards Update No. 2015-09, Revenue from Contract with Customers (Topic 606) . Reporting entities may choose to adopt the standard as of the original date, or take advantage of a one-year delay. For a public entity, the revised effective date is for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted prior to the original effective date. The adoption of this amendment is not expected to have a material effect on the Company’s consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments . The guidance in this update eliminates the requirement to restate prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The new guidance is intended to reduce complexity in financial reporting. The elimination of the restatement requirement should simplify financial reporting for many entities. However, recognizing the entire impact of a measurement period adjustment in a single reporting period may introduce earnings volatility and reduce comparability between periods when the adjustments are material. The accounting changes in this update are effective for public companies for annual periods, and the interim periods within those annual periods, beginning after December 15, 2015. Early application is permitted for financial statements that have not been issued, and the Company has elected to adopt the guidance effective September 30, 2015. See Note 2. “Business Combination” to our consolidated financial statements for further discussion. In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance in this update makes changes to the current GAAP model primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged. The treatment of gains and losses for all equity securities, including those without a readily determinable market value, is expected to result in additional volatility in the income statement, with the loss of mark to market via equity for these investments. Additionally, changes in the allowable method for determining the fair value of financial instruments in the financial statement footnotes (“exit price” only), will likely require changes to current methodologies of determining these vales, and how they are disclosed in the financial statement footnotes. The new standard applies to public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The adoption of this amendment is not expected to have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) . The guidance in this update is meant to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, Elements of Financial Statements , and, therefore, recognition of those lease assets and lease liabilities represents an improvement over previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. Disclosures are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. To meet that objective, qualitative disclosures along with specific quantitative disclosures are required. The new standard applies to public business entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is still evaluating the effect of this guidance on the Company’s consolidated financial statements. |
Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts [Policy Text Block] | Charge-off Policy The Company requires a loan to be charged-off as soon as it becomes apparent that some loss will be incurred, or when its collectability is sufficiently questionable that it no longer is considered a bankable asset. The primary considerations when determining if and how much of a loan should be charged-off are as follows: (1) the potential for future cash flows; (2) the value of any collateral; and (3) the strength of any co-makers or guarantors. When it is determined that a loan requires a partial or full charge-off, a request for approval of a charge-off is submitted to the Company's President, Executive Vice President and Chief Credit Officer, and the Senior Regional Loan officer. The respective bank's board of directors formally approves all loan charge-offs. Once a loan is charged-off, it cannot be restructured and returned to the Company's books. |
Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block] | Loans Reviewed Individually for Impairment The Company identifies loans to be reviewed and evaluated individually for impairment based on current information and events and the probability that the borrower will be unable to repay all amounts due according to the contractual terms of the loan agreement. Specific areas of consideration include: size of credit exposure, risk rating, delinquency, nonaccrual status, and loan classification. The level of individual impairment is measured using one of the following methods: (1) the fair value of the collateral less costs to sell; (2) the present value of expected future cash flows, discounted at the loan's effective interest rate; or (3) the loan's observable market price. Loans that are deemed fully collateralized or have been charged down to a level corresponding with any of the three measurements require no assignment of reserves from the ALLL. All loans deemed troubled debt restructure or “TDR” are considered impaired. A loan is considered a TDR when the Company, for economic or legal reasons related to a borrower's financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. All of the following factors are potential indicators that the Company has granted a concession (one or multiple items may be present): • The borrower receives a reduction of the stated interest rate for the remaining original life of the debt. • The borrower receives an extension of the maturity date or dates at a stated interest rate lower that the current market interest rate for new debt with similar risk characteristics. • The borrower receives a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. • The borrower receives a deferral of required payments (principal and/or interest). • The borrower receives a reduction of the accrued interest. |
Loans and Leases Receivable, Past Due Status, Policy [Policy Text Block] | Non-accrual and Delinquent Loans Loans are placed on non-accrual when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 days or more (unless the loan is both well secured with marketable collateral and in the process of collection). All loans rated doubtful or worse, and certain loans rated substandard, are placed on non-accrual. A non-accrual asset may be restored to an accrual status when (1) all past due principal and interest has been paid (excluding renewals and modifications that involve the capitalizing of interest) or (2) the loan becomes well secured with marketable collateral and is in the process of collection. An established track record of performance is also considered when determining accrual status. Delinquency status of a loan is determined by the number of days that have elapsed past the loan's payment due date, using the following classification groupings: 30-59 days, 60-89 days and 90 days or more. Loans shown in the 30-59 days and 60-89 days columns in the table above reflect contractual delinquency status of loans not considered nonperforming due to classification as a TDR or being placed on non-accrual. |
Subsequent Events, Policy [Policy Text Block] | Management evaluated subsequent events through the date the consolidated financial statements were issued. Events or transactions occurring after December 31, 2015 , but prior to the date the consolidated financial statements were issued, that provided additional evidence about conditions that existed at December 31, 2015 have been recognized in the consolidated financial statements for the period ended December 31, 2015 . Events or transactions that provided evidence about conditions that did not exist at December 31, 2015 , but arose before the consolidated financial statements were issued, have not been recognized in the consolidated financial statements for the period ended December 31, 2015 . |
Nature of Business and Signif36
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. The estimated useful lives and primary method of depreciation for the principal items are as follows: Years Type of Assets Minimum Maximum Depreciation Method Buildings and leasehold improvements 10 - 30 Straight-line Furniture and equipment 3 - 10 Straight-line |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive income, included in shareholders’ equity, net of tax, are as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Unrealized gains on securities available for sale, net of tax $ 3,408 $ 5,322 $ 1,049 Accumulated other comprehensive income, net of tax $ 3,408 $ 5,322 $ 1,049 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Estimated fair values of assets acquired and liabilities assumed in the Central transaction, as of the closing date of the transaction, were as follows: (in thousands) May 1, 2015 ASSETS Cash and due from banks $ 28,404 Investment securities 160,775 Loans 916,973 Premises and equipment 27,908 Goodwill 64,548 Core deposit intangible 12,773 Trade name intangible 1,380 FDIC indemnification asset 3,753 Other real estate owned 8,420 Other assets 14,588 Total assets 1,239,522 LIABILITIES Deposits 1,049,167 Short-term borrowings 16,124 Junior subordinated notes issued to capital trusts 8,050 Subordinated notes payable 12,669 Accrued expenses and other liabilities 11,617 Total liabilities 1,097,627 Net assets 141,895 Consideration: Market value of common stock at $29.31 per share at May 1, 2015 (2,723,083 shares of common stock issued), net of stock illiquidity discount due to restrictions 77,895 Cash paid 64,000 Total fair value of consideration $ 141,895 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block] | The following table presents the purchased loans as of the acquisition date: (in thousands) Purchased Credit Impaired Loans Purchased Non-Credit Impaired Loans Contractually required principal payments $ 36,886 $ 905,314 Nonaccretable difference (6,675 ) — Principal cash flows expected to be collected 30,211 905,314 Accretable discount (1) (1,882 ) (16,670 ) Fair value of acquired loans $ 28,329 $ 888,644 (1) Included in the accretable discount for Purchased Non-Credit Impaired Loans is approximately $10.4 million of estimated undiscounted principal losses. Changes in accretable yield on the loan pool participations that met the level-yield income recognition criteria under ASC Topic 310 were as follows: Accretable Yield December 31, 2015 2014 (in thousands) Balance at beginning of year $ 1,579 $ 2,244 Additions — — Accretions (1,579 ) (665 ) Reclassifications to nonaccretable differences — — Balance at end of year $ — $ 1,579 Cash flows expected to be collected at acquisition $ — $ 7,913 Basis in acquired loans at acquisition $ — $ 4,482 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table provides the unaudited pro forma information for the results of operations for the year ended December 31, 2015 and 2014 , as if the acquisition had occurred January 1, 2014. The pro forma results combine the historical results of Central into the Company’s consolidated statement of income including the impact of certain purchase accounting adjustments, including loan discount accretion, investment securities discount accretion, intangible assets amortization, deposit premium accretion and borrowing discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. The merger-related expenses that have been recognized are included in net income in the table below. Year Ended December 31, (in thousands) 2015 2014 Total revenues (net interest income plus noninterest income) $ 128,613 $ 130,502 Net income $ 25,799 $ 24,430 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The amortized cost and fair value of investment securities available for sale, with gross unrealized gains and losses, are as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) December 31, 2015 U.S. Treasury securities $ 6,931 $ — $ 21 $ 6,910 U.S. Government agencies and corporations 26,600 99 46 26,653 State and political subdivisions 176,794 6,662 72 183,384 Mortgage-backed securities 56,950 569 457 57,062 Collateralized mortgage obligations 107,613 321 1,530 106,404 Corporate debt securities 45,602 50 86 45,566 Total debt securities 420,490 7,701 2,212 425,979 Other equity securities 1,250 50 38 1,262 Total investment securities $ 421,740 $ 7,751 $ 2,250 $ 427,241 December 31, 2014 U.S. Government agencies and corporations $ 49,392 $ 248 $ 265 $ 49,375 State and political subdivisions 187,276 8,113 190 195,199 Mortgage-backed securities 30,965 1,498 — 32,463 Collateralized mortgage obligations 147,412 813 2,093 146,132 Corporate debt securities 48,656 188 103 48,741 Total debt securities 463,701 10,860 2,651 471,910 Other equity securities 2,686 380 34 3,032 Total investment securities $ 466,387 $ 11,240 $ 2,685 $ 474,942 |
Held-to-maturity Securities [Table Text Block] | The amortized cost and fair value of investment securities held to maturity, with gross unrealized gains and losses, are as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) December 31, 2015 State and political subdivisions $ 66,454 $ 928 $ 110 $ 67,272 Mortgage-backed securities 3,920 4 38 3,886 Collateralized mortgage obligations 30,505 1 459 30,047 Corporate debt securities 17,544 — 515 17,029 Total $ 118,423 $ 933 $ 1,122 $ 118,234 December 31, 2014 State and political subdivisions $ 39,704 $ 370 $ 252 $ 39,822 Mortgage-backed securities 22 3 — 25 Collateralized mortgage obligations 8,531 — 233 8,298 Corporate debt securities 3,267 — 159 3,108 Total $ 51,524 $ 373 $ 644 $ 51,253 |
Schedule of Temporary Impairment Losses, Investments [Table Text Block] | The following presents information pertaining to securities with gross unrealized losses as of December 31, 2015 and 2014 , aggregated by investment category and length of time that individual securities have been in a continuous loss position: As of December 31, 2015 Number of Securities Less than 12 Months 12 Months or More Total Available for Sale Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (in thousands, except number of securities) U.S. Treasury securities 1 $ 6,910 $ 21 $ — $ — $ 6,910 $ 21 U.S. Government agencies and corporations 1 4,890 46 — — 4,890 46 State and political subdivisions 22 8,419 24 3,177 48 11,596 72 Mortgage-backed securities 27 37,753 457 — — 37,753 457 Collateralized mortgage obligations 23 56,447 420 31,253 1,110 87,700 1,530 Corporate debt securities 8 30,496 86 — — 30,496 86 Other equity securities 1 — — 962 38 962 38 Total 83 $ 144,915 $ 1,054 $ 35,392 $ 1,196 $ 180,307 $ 2,250 As of December 31, 2014 Number of Securities Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (in thousands, except number of securities) U.S. Government agencies and corporations 4 $ 9,946 $ 11 $ 15,018 $ 254 $ 24,964 $ 265 State and political subdivisions 46 3,024 18 10,728 172 13,752 190 Collateralized mortgage obligations 14 14,971 123 68,370 1,970 83,341 2,093 Corporate debt securities 7 23,024 50 3,400 53 26,424 103 Other equity securities 1 — — 966 34 966 34 Total 72 $ 50,965 $ 202 $ 98,482 $ 2,483 $ 149,447 $ 2,685 As of December 31, 2015 Number of Securities Less than 12 Months 12 Months or More Total Held to Maturity Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 32 $ 9,345 $ 93 $ 2,040 $ 17 $ 11,385 $ 110 Mortgage-backed securities 5 3,723 38 — — 3,723 38 Collateralized mortgage obligations 7 22,571 320 7,416 139 29,987 459 Corporate debt securities 6 15,606 309 680 206 16,286 515 Total 50 $ 51,245 $ 760 $ 10,136 $ 362 $ 61,381 $ 1,122 As of December 31, 2014 Number of Securities Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 29 $ 5,322 $ 190 $ 9,144 $ 62 $ 14,466 $ 252 Collateralized mortgage obligations 1 — — 8,298 233 8,298 233 Corporate debt securities 2 2,358 27 750 132 3,108 159 Total 32 $ 7,680 $ 217 $ 18,192 $ 427 $ 25,872 $ 644 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | The following table provides a roll forward of credit losses on fixed maturity securities recognized in net income: Year Ended December 31, 2015 2014 (in thousands) Beginning balance $ — $ 6,639 Reductions to credit losses: Securities with previous other than temporary impairments, due to sale — (6,639 ) Ending balance $ — $ — |
Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturity distribution of investment debt securities at December 31, 2015 , is summarized as follows: Available For Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Due in one year or less $ 35,139 $ 35,355 $ 417 $ 417 Due after one year through five years 100,588 102,119 5,638 5,634 Due after five years through ten years 101,972 106,337 49,722 49,941 Due after ten years 18,228 18,702 28,221 28,309 Debt securities without a single maturity date 164,563 163,466 34,425 33,933 Total $ 420,490 $ 425,979 $ 118,423 $ 118,234 |
Schedule of Realized Gain (Loss) [Table Text Block] | Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. Realized gains (losses) on investments, including impairment losses for the years ended December 31, 2015 , 2014 and 2013 , were as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Available for sale fixed maturity securities: Gross realized gains $ 1,265 $ 1,463 $ 144 Gross realized losses (442 ) (236 ) (79 ) 823 1,227 65 Equity securities: Gross realized gains 188 — — Gross realized losses — — — 188 — — Total net realized gains and losses $ 1,011 $ 1,227 $ 65 |
Loans Receivable and the Allo39
Loans Receivable and the Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The composition of allowance for loan losses and loans by portfolio segment, as of December 31, 2015 and 2014 , were as follows: Allowance for Loan Losses and Recorded Investment in Loan Receivables As of December 31, 2015 and 2014 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2015 Allowance for loan losses: Individually evaluated for impairment $ 51 $ 489 $ 2,786 $ 387 $ 1 $ — $ 3,714 Collectively evaluated for impairment 1,366 4,962 5,718 3,539 408 (374 ) 15,619 Purchased credit impaired loans — — 52 42 — — 94 Total $ 1,417 $ 5,451 $ 8,556 $ 3,968 $ 409 $ (374 ) $ 19,427 Loans receivable Individually evaluated for impairment $ 3,072 $ 7,718 $ 23,697 $ 5,725 $ 26 $ — $ 40,238 Collectively evaluated for impairment 118,642 461,275 950,207 517,482 38,506 — 2,086,112 Purchased credit impaired loans $ — $ 256 $ 18,037 $ 7,299 $ — $ — 25,592 Total $ 121,714 $ 469,249 $ 991,941 $ 530,506 $ 38,532 $ — $ 2,151,942 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2014 Allowance for loan losses: Individually evaluated for impairment $ 88 $ 206 $ 226 $ 623 $ 2 $ — $ 1,145 Collectively evaluated for impairment 1,418 5,574 4,173 2,544 321 1,188 15,218 Total $ 1,506 $ 5,780 $ 4,399 $ 3,167 $ 323 $ 1,188 $ 16,363 Loans receivable Individually evaluated for impairment $ 3,027 $ 3,168 $ 3,916 $ 3,341 $ 34 $ — $ 13,486 Collectively evaluated for impairment 101,782 301,732 422,605 269,270 23,644 — 1,119,033 Total $ 104,809 $ 304,900 $ 426,521 $ 272,611 $ 23,678 $ — $ 1,132,519 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The changes in the allowance for loan losses by portfolio segment, as of December 31, 2015 , 2014 , and 2013 , were as follows: Allowance for Loan Loss Activity For the Years Ended December 31, 2015, 2014, and 2013 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2015 Beginning balance $ 1,506 $ 5,780 $ 4,399 $ 3,167 $ 323 $ 1,188 $ 16,363 Charge-offs (245 ) (692 ) (853 ) (740 ) (92 ) — (2,622 ) Recoveries 1 372 7 143 31 — 554 Provision 155 (9 ) 5,003 1,398 147 (1,562 ) 5,132 Ending balance $ 1,417 $ 5,451 $ 8,556 $ 3,968 $ 409 $ (374 ) $ 19,427 2014 Beginning balance $ 1,358 $ 4,980 $ 5,294 $ 3,185 $ 275 $ 1,087 $ 16,179 Charge-offs (26 ) (685 ) (165 ) (409 ) (76 ) — (1,361 ) Recoveries 10 217 61 22 35 — 345 Provision 164 1,268 (791 ) 369 89 101 1,200 Ending balance $ 1,506 $ 5,780 $ 4,399 $ 3,167 $ 323 $ 1,188 $ 16,363 2013 Beginning balance $ 1,026 $ 4,599 $ 5,767 $ 3,007 $ 356 $ 1,202 $ 15,957 Charge-offs (39 ) (790 ) (545 ) (286 ) (147 ) — (1,807 ) Recoveries 36 70 479 67 27 — 679 Provision 335 1,101 (407 ) 397 39 (115 ) 1,350 Ending balance $ 1,358 $ 4,980 $ 5,294 $ 3,185 $ 275 $ 1,087 $ 16,179 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following tables set forth information on the Company's TDRs by class of financing receivable occurring during the stated periods: For the Year Ended December 31, 2015 2014 2013 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) : Commercial and industrial Extended maturity date 0 — — 1 1,405 1,405 10 1,546 1,546 Commercial real estate: Commercial real estate-other Extended maturity date 0 — — 0 — — 2 165 136 Residential real estate: One- to four- family first liens Interest rate reduction 1 151 151 1 285 292 2 164 169 Extended maturity date 0 — — 0 — — 1 66 69 One- to four- family junior liens Interest rate reduction 0 — — 0 — — 1 8 13 Total 1 $ 151 $ 151 2 $ 1,690 $ 1,697 16 $ 1,949 $ 1,933 (1) TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower. Loans by class of financing receivable modified as TDRs within the previous 12 months and for which there was a payment default during the stated periods were: For the Year Ended December 31, 2015 2014 2013 Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) That Subsequently Defaulted: Commercial real estate: Commercial real estate-other Extended maturity date 0 — 0 — 1 69 Residential real estate: One- to four- family first liens Interest rate reduction 0 — 0 — 1 111 Total 0 $ — 0 $ — 2 $ 180 (1) TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower. |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table sets forth the composition of the Company’s loans by internally assigned credit quality indicators at December 31, 2015 and 2014 : Pass Special Mention/Watch Substandard Doubtful Loss Total (in thousands) 2015 Agricultural $ 111,361 $ 8,536 $ 1,817 $ — $ — $ 121,714 Commercial and industrial 436,857 12,893 17,652 10 — 467,412 Credit cards 1,354 19 4 — — 1,377 Overdrafts 1,168 100 215 — — 1,483 Commercial real estate: Construction & development 114,640 2,406 3,707 — — 120,753 Farmland 82,442 2,408 4,234 — — 89,084 Multifamily 119,139 371 2,253 — — 121,763 Commercial real estate-other 609,651 19,402 31,288 — — 660,341 Total commercial real estate 925,872 24,587 41,482 — — 991,941 Residential real estate: One- to four- family first liens 410,143 4,813 13,042 235 — 428,233 One- to four- family junior liens 96,223 1,782 4,209 59 — 102,273 Total residential real estate 506,366 6,595 17,251 294 — 530,506 Consumer 37,184 6 278 41 — 37,509 Total $ 2,020,162 $ 52,736 $ 78,699 $ 345 $ — $ 2,151,942 2014 Agricultural $ 98,096 $ 5,032 $ 1,681 $ — $ — $ 104,809 Commercial and industrial 273,290 7,468 22,350 — — 303,108 Credit cards 1,240 6 — — — 1,246 Overdrafts 373 262 109 — — 744 Commercial real estate: Construction & development 56,963 1,151 1,269 — — 59,383 Farmland 79,629 1,778 2,293 — — 83,700 Multifamily 54,708 178 — — — 54,886 Commercial real estate-other 215,268 11,216 2,068 — — 228,552 Total commercial real estate 406,568 14,323 5,630 — — 426,521 Residential real estate: One- to four- family first liens 211,390 3,933 3,991 — — 219,314 One- to four- family junior liens 53,039 48 210 — — 53,297 Total residential real estate 264,429 3,981 4,201 — — 272,611 Consumer 23,431 8 41 — — 23,480 Total $ 1,067,427 $ 31,080 $ 34,012 $ — $ — $ 1,132,519 |
Impaired Financing Receivables [Table Text Block] | December 31, 2015 and 2014 : As of December 31, 2015 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (in thousands) With no related allowance recorded: Agricultural $ 1,512 $ 2,084 $ — $ 1,410 $ 1,910 $ — Commercial and industrial 6,487 6,752 — 2,169 2,270 — Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 321 448 — 49 176 — Farmland 2,711 2,870 — 2,270 2,433 — Multifamily 1,632 1,798 — — — — Commercial real estate-other 12,230 12,642 — 939 1,064 — Total commercial real estate 16,894 17,758 — 3,258 3,673 — Residential real estate: One- to four- family first liens 2,494 2,533 — 535 773 — One- to four- family junior liens 1,297 1,308 — 134 157 — Total residential real estate 3,791 3,841 — 669 930 — Consumer 17 33 — 6 22 — Total $ 28,701 $ 30,468 $ — $ 7,512 $ 8,805 $ — With an allowance recorded: Agricultural $ 1,560 $ 1,560 $ 51 $ 1,617 $ 1,617 $ 88 Commercial and industrial 1,231 1,258 489 999 999 206 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 34 34 34 34 34 34 Farmland 69 69 3 74 74 4 Multifamily 224 224 73 — — — Commercial real estate-other 6,476 6,478 2,676 550 550 188 Total commercial real estate 6,803 6,805 2,786 658 658 226 Residential real estate: One- to four- family first liens 1,919 2,056 383 2,600 2,600 594 One- to four- family junior liens 15 15 4 72 72 29 Total residential real estate 1,934 2,071 387 2,672 2,672 623 Consumer 9 9 1 28 28 2 Total $ 11,537 $ 11,703 $ 3,714 $ 5,974 $ 5,974 $ 1,145 Total: Agricultural $ 3,072 $ 3,644 $ 51 $ 3,027 $ 3,527 $ 88 Commercial and industrial 7,718 8,010 489 3,168 3,269 206 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 355 482 34 83 210 34 Farmland 2,780 2,939 3 2,344 2,507 4 Multifamily 1,856 2,022 73 — — — Commercial real estate-other 18,706 19,120 2,676 1,489 1,614 188 Total commercial real estate 23,697 24,563 2,786 3,916 4,331 226 Residential real estate: One- to four- family first liens 4,413 4,589 383 3,135 3,373 594 One- to four- family junior liens 1,312 1,323 4 206 229 29 Total residential real estate 5,725 5,912 387 3,341 3,602 623 Consumer 26 42 1 34 50 2 Total $ 40,238 $ 42,171 $ 3,714 $ 13,486 $ 14,779 $ 1,145 The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, during the stated periods: For the Year Ended December 31, 2015 2014 2013 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) With no related allowance recorded: Agricultural $ 1,533 $ 58 $ 1,413 $ 211 $ 1,128 $ 114 Commercial and industrial 6,769 424 2,234 160 2,025 76 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 325 7 49 — 149 21 Farmland 2,743 128 2,288 456 101 8 Multifamily 1,833 68 — — — — Commercial real estate-other 12,772 446 975 — 593 25 Total commercial real estate 17,673 649 3,312 456 843 54 Residential real estate: One- to four- family first liens 2,469 81 547 32 669 14 One- to four- family junior liens 1,313 42 134 6 50 1 Total residential real estate 3,782 123 681 38 719 15 Consumer 21 2 8 — 12 — Total $ 29,778 $ 1,256 $ 7,648 $ 865 $ 4,727 $ 259 With an allowance recorded: Agricultural $ 1,572 $ 48 $ 1,627 $ 203 $ 1,681 $ 51 Commercial and industrial 1,313 67 1,044 104 1,697 75 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 34 — 35 3 7 — Farmland 70 2 74 3 2,315 110 Multifamily 226 6 — — — — Commercial real estate-other 6,528 344 551 43 1,921 55 Total commercial real estate 6,858 352 660 49 4,243 165 Residential real estate: One- to four- family first liens 1,928 44 2,612 203 909 38 One- to four- family junior liens 15 — 74 — 92 1 Total residential real estate 1,943 44 2,686 203 1,001 39 Consumer 9 — 31 5 41 2 Total $ 11,695 $ 511 $ 6,048 $ 564 $ 8,663 $ 332 Total: Agricultural $ 3,105 $ 106 $ 3,040 $ 414 $ 2,809 $ 165 Commercial and industrial 8,082 491 3,278 264 3,722 151 Credit cards — — — — — — Overdrafts — — — — — — Commercial real estate: Construction & development 359 7 84 3 156 21 Farmland 2,813 130 2,362 459 2,416 118 Multifamily 2,059 74 — — — — Commercial real estate-other 19,300 790 1,526 43 2,514 80 Total commercial real estate 24,531 1,001 3,972 505 5,086 219 Residential real estate: One- to four- family first liens 4,397 125 3,159 235 1,578 52 One- to four- family junior liens 1,328 42 208 6 142 2 Total residential real estate 5,725 167 3,367 241 1,720 54 Consumer 30 2 39 5 53 2 Total $ 41,473 $ 1,767 $ 13,696 $ 1,429 $ 13,390 $ 591 |
Past Due Loan Receivables [Table Text Block] | The following table sets forth the composition and past due status of the Company’s loans at December 31, 2015 and 2014 : 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable (in thousands) 2015 Agricultural $ 19 $ 190 $ 169 $ 378 $ 121,336 $ 121,714 Commercial and industrial 1,046 710 644 2,400 465,012 467,412 Credit cards 2 17 4 23 1,354 1,377 Overdrafts 175 8 31 214 1,269 1,483 Commercial real estate: Construction & development — — 415 415 120,338 120,753 Farmland 120 — 80 200 88,884 89,084 Multifamily — — 224 224 121,539 121,763 Commercial real estate-other 1,190 754 1,636 3,580 656,761 660,341 Total commercial real estate 1,310 754 2,355 4,419 987,522 991,941 Residential real estate: One- to four- family first liens 2,611 1,293 1,772 5,676 422,557 428,233 One- to four- family junior liens 168 120 317 605 101,668 102,273 Total residential real estate 2,779 1,413 2,089 6,281 524,225 530,506 Consumer 62 6 17 85 37,424 37,509 Total $ 5,393 $ 3,098 $ 5,309 $ 13,800 $ 2,138,142 $ 2,151,942 Included in the totals above are the following purchased credit impaired loans $ 473 $ 799 $ 989 $ 2,261 $ 23,331 $ 25,592 2014 Agricultural $ 58 $ 30 $ — $ 88 $ 104,721 $ 104,809 Commercial and industrial 897 603 515 2,015 301,093 303,108 Credit cards 3 3 — 6 1,240 1,246 Overdrafts 104 2 4 110 634 744 Commercial real estate: Construction & development — — 83 83 59,300 59,383 Farmland 503 — — 503 83,197 83,700 Multifamily — — — — 54,886 54,886 Commercial real estate-other 168 57 1,200 1,425 227,127 228,552 Total commercial real estate 671 57 1,283 2,011 424,510 426,521 Residential real estate: One- to four- family first liens 1,481 581 2,023 4,085 215,229 219,314 One- to four- family junior liens 105 48 192 345 52,952 53,297 Total residential real estate 1,586 629 2,215 4,430 268,181 272,611 Consumer 35 8 23 66 23,414 23,480 Total $ 3,354 $ 1,332 $ 4,040 $ 8,726 $ 1,123,793 $ 1,132,519 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | December 31, 2015 and 2014 : As of December 31, 2015 2014 Non-Accrual Loans Past Due 90 Days or More and Still Accruing Non-Accrual Loans Past Due 90 Days or More and Still Accruing (in thousands) Agricultural $ 172 $ — $ — $ — Commercial and industrial 575 — 479 66 Credit cards — — — — Overdrafts — — — — Commercial real estate: Construction & development 95 — 83 — Farmland 20 80 24 — Multifamily 224 — — — Commercial real estate-other 1,452 — 1,200 — Total commercial real estate 1,791 80 1,307 — Residential real estate: One- to four- family first liens 1,182 199 1,261 780 One- to four- family junior liens 281 — 192 — Total residential real estate 1,463 199 1,453 780 Consumer 11 5 16 2 Total $ 4,012 $ 284 $ 3,255 $ 848 |
Schedule of Changes in Accretable Yield for Purchased Credit Impaired Loans [Table Text Block] | Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the year ended December 31, 2015 and 2014 : For the Year Ended December 31, 2015 2014 (in thousands) Balance at beginning of period $ — $ — Purchases 1,882 — Accretion (666 ) — Reclassification from nonaccretable difference 230 — Balance at end of period $ 1,446 $ — |
Loan Pool Participations [Table Text Block] | A summary of the changes in the carrying value of loan pool participations for the years ended December 31, 2015 and 2014 , is as follows: For the Year Ended December 31, 2015 2014 (in thousands) Balance at beginning of year $ 19,332 $ 25,533 Principal payments and sale proceeds (18,823 ) (4,724 ) Net charge-offs (509 ) (1,477 ) Balance at end of year $ — $ 19,332 Total face value at end of year $ — $ 68,376 |
Certain Loans Acquired With Deteriorated Qredit Quality [Table Text Block] | The outstanding balances and carrying values as of December 31, 2015 and 2014 , of the loan pool participations purchased that met the level-yield income recognition criteria under ASC Topic 310 are as follows: As of December 31, 2015 2014 (in thousands) Commercial — 477 Real Estate: 1-4 family residences — 201 Commercial — 1,930 Total real estate — 2,131 Total $ — $ 2,608 Allowance — (56 ) Carrying amount, net of allowance $ — $ 2,552 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block] | The following table presents the purchased loans as of the acquisition date: (in thousands) Purchased Credit Impaired Loans Purchased Non-Credit Impaired Loans Contractually required principal payments $ 36,886 $ 905,314 Nonaccretable difference (6,675 ) — Principal cash flows expected to be collected 30,211 905,314 Accretable discount (1) (1,882 ) (16,670 ) Fair value of acquired loans $ 28,329 $ 888,644 (1) Included in the accretable discount for Purchased Non-Credit Impaired Loans is approximately $10.4 million of estimated undiscounted principal losses. Changes in accretable yield on the loan pool participations that met the level-yield income recognition criteria under ASC Topic 310 were as follows: Accretable Yield December 31, 2015 2014 (in thousands) Balance at beginning of year $ 1,579 $ 2,244 Additions — — Accretions (1,579 ) (665 ) Reclassifications to nonaccretable differences — — Balance at end of year $ — $ 1,579 Cash flows expected to be collected at acquisition $ — $ 7,913 Basis in acquired loans at acquisition $ — $ 4,482 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Premises and equipment as of December 31, 2015 and 2014 were as follows: As of December 31, 2015 2014 (in thousands) Land $ 13,270 $ 4,836 Buildings and leasehold improvements 60,871 29,942 Furniture and equipment 17,160 13,206 Construction in process 10,972 14,705 Premises and equipment 102,273 62,689 Accumulated depreciation and amortization 26,071 24,919 Premises and equipment, net $ 76,202 $ 37,770 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table presents the changes in the carrying amount of intangibles (excluding goodwill), gross carrying amount, accumulated amortization, net book value, and weighted average life as of December 31, 2015 and 2014 : Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Finite-Lived Trade Name Intangible Customer List Intangible Total (in thousands) December 31, 2015 Balance, beginning of period $ 364 $ 691 $ 7,040 $ — $ 164 $ 8,259 Additions from business combination — 12,773 — 1,380 — 14,153 Amortization expense (89 ) (2,984 ) — (177 ) (21 ) (3,271 ) Balance at end of period $ 275 $ 10,480 $ 7,040 $ 1,203 $ 143 $ 19,141 Gross carrying amount $ 1,320 $ 18,206 $ 7,040 $ 1,380 $ 330 $ 28,276 Accumulated amortization (1,045 ) (7,726 ) — (177 ) (187 ) (9,135 ) Net book value $ 275 $ 10,480 $ 7,040 $ 1,203 $ 143 $ 19,141 Remaining weighted average useful life (years) 7 6 9 8 Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Customer List Intangible Total (in thousands) December 31, 2014 Balance, beginning of period $ 470 $ 1,111 $ 7,040 $ 185 $ 8,806 Amortization expense (106 ) (420 ) — (21 ) (547 ) Balance at end of period $ 364 $ 691 $ 7,040 $ 164 $ 8,259 Gross carrying amount $ 1,320 $ 5,433 $ 7,040 $ 330 $ 14,123 Accumulated amortizations (956 ) (4,742 ) — (166 ) (5,864 ) Net book value $ 364 $ 691 $ 7,040 $ 164 $ 8,259 Remaining weighted average useful life (years) 7 4 9 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following table summarizes future amortization expense of intangible assets: Insurance Core Trade Customer Agency Deposit Name List Intangible Premium Intangible Intangible Totals (in thousands) Year ending December 31, 2016 $ 72 $ 3,634 $ 243 $ 20 $ 3,969 2017 55 2,835 216 19 3,125 2018 38 2,037 188 18 2,281 2019 21 1,312 161 17 1,511 2020 20 613 133 16 782 Thereafter 69 49 262 53 433 Total $ 275 $ 10,480 $ 1,203 $ 143 $ 12,101 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | The components of the Company’s other assets as of December 31, 2015 and 2014 were as follows: As of December 31, 2015 2014 (in thousands) Federal Home Loan Bank Stock $ 9,832 $ 8,582 FDIC indemnification asset, net 4,274 — Prepaid expenses 2,271 1,350 Mortgage servicing rights 2,249 2,308 Federal and state taxes, current 1,079 — Accounts receivable & other miscellaneous assets 2,104 1,835 $ 21,809 $ 14,075 |
Time Deposits (Tables)
Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Time Deposits [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | At December 31, 2015 , the scheduled maturities of certificates of deposits were as follows: (in thousands) 2016 $ 391,097 2017 182,029 2018 35,407 2019 22,935 2020 18,621 Thereafter 7 Total $ 650,096 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings were as follows as of December 31, 2015 and December 31, 2014 : December 31, 2015 December 31, 2014 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance Federal funds purchased 0.34 % $ 1,500 0.52 % $ 17,408 Securities sold under agreements to repurchase 0.31 67,463 0.21 60,821 Total 0.31 % $ 68,963 0.28 % $ 78,229 |
Subordinated Notes Payable (Tab
Subordinated Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Junior Subordinated Notes [Abstract] | |
Schedule of Subordinated Borrowing [Table Text Block] | The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of as of December 31, 2015 and December 31, 2014 : Face Value Book Value Interest Rate Year-end Interest Rate Maturity Date Callable Date (in thousands) 2015 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,552 Three-month LIBOR + 3.50% 4.01 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,571 Three-month LIBOR + 2.15% 2.74 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 2.10 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,587 2014 MidWestOne Statutory Trust II (1) $ 15,464 $ 15,464 Three-month LIBOR + 1.59% 1.83 % 12/15/2037 12/15/2012 (1) All distributions are cumulative and paid in cash quarterly. (2) Central Bancshares Capital Trust II and Barron Investment Capital Trust I were established by Central prior to the Company’s merger with Central, and the junior subordinated notes issued by Central were assumed by the Company. |
Long-Term Borrowings (Tables)
Long-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, by Type, Current and Noncurrent [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term borrowings were as follows as of December 31, 2015 and December 31, 2014 : December 31, 2015 December 31, 2014 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance FHLB Borrowings 1.64 % $ 87,000 1.88 % $ 93,000 Note payable to unaffiliated bank 2.17 22,500 — — Total 1.75 % $ 109,500 1.88 % $ 93,000 |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block] | As of December 31, 2015 and 2014 , Federal Home Loan Bank borrowings were as follows: Rates Amount Minimum Maximum 2015 2014 (in thousands) Due in 2015 2.06 % to 3.00 % $ — $ 20,000 Due in 2016 0.50 % to 2.46 % 22,000 17,000 Due in 2017 1.09 % to 2.78 % 10,000 10,000 Due in 2018 1.30 % to 1.83 % 19,000 17,000 Due in 2019 1.42 % to 1.85 % 17,000 17,000 Due in 2020 1.52 % to 2.25 % 12,000 12,000 Thereafter 1.93 % to 1.93 % 7,000 — Total $ 87,000 $ 93,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income taxes for the years ended December 31, 2015 , 2014 and 2013 are summarized as follows: December 31, 2015 2014 2013 (in thousands) Current: Federal $ 6,147 $ 3,573 $ 6,841 State 372 956 1,259 Deferred 1,300 2,502 (1,454 ) Total income tax provision $ 7,819 $ 7,031 $ 6,646 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income tax provisions for the years ended December 31, 2015 , 2014 and 2013 were less than the amounts computed by applying the maximum effective federal income tax rate of 35% for the years ended December 31, 2015 , 2014 , and 2013 , to the income before income taxes because of the following items: 2015 2014 2013 (in thousands) Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Expected provision $ 11,528 35.0 % $ 8,943 35.0 % $ 8,839 35.0 % Tax-exempt interest (2,817 ) (8.6 ) (2,520 ) (9.9 ) (2,345 ) (9.3 ) Bank-owned life insurance (438 ) (1.3 ) (385 ) (1.5 ) (322 ) (1.3 ) State income taxes, net of federal income tax benefit 333 1.0 798 3.1 776 3.1 Non-deductible acquisition expenses 691 2.1 261 1.0 — — General business credits (1,225 ) (3.7 ) — — — — Other (253 ) (0.8 ) (66 ) (0.3 ) (302 ) (1.2 ) Total income tax provision $ 7,819 23.7 % $ 7,031 27.4 % $ 6,646 26.3 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax assets as of December 31, 2015 and 2014 consisted of the following components: December 31, 2015 2014 (in thousands) Deferred income tax assets: Allowance for loan losses $ 7,449 $ 7,981 Deferred compensation 1,909 1,022 Net operating losses (state net operating loss carryforwards) 3,560 3,266 Impairment losses on securities — 53 Other real estate owned 146 568 Other 1,934 1,278 Gross deferred tax assets 14,998 14,168 Deferred income tax liabilities: Premises and equipment depreciation and amortization 3,658 1,992 Federal Home Loan Bank stock 133 132 Purchase accounting adjustments 2,717 684 Mortgage servicing rights 853 875 Prepaid expenses 194 213 Unrealized gains on investment securities 2,091 3,234 Deferred loan fees 261 249 Other 584 253 Gross deferred tax liabilities 10,491 7,632 Net deferred income tax asset 4,507 6,536 Valuation allowance 3,560 3,458 Net deferred tax asset $ 947 $ 3,078 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following is a summary of stock option activity for the year ended December 31, 2015 : Weighted- Average Weighted- Remaining Aggregate Average Contractual Intrinsic Exercise Term in Value Shares Price Years ($000) Outstanding at December 31, 2014 30,861 $ 14.08 Granted — — Exercised (8,414 ) 15.52 Forfeited — — Expired (147 ) 18.49 Outstanding at December 31, 2015 22,300 $ 13.51 2.42 $ 377 Exercisable at December 31, 2015 22,300 $ 13.51 2.42 $ 377 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following is a summary of nonvested restricted stock unit activity for the year ended December 31, 2015 : Weighted- Average Grant-Date Shares Fair Value Nonvested at December 31, 2014 50,806 $ 22.17 Granted 34,100 29.08 Vested (23,123 ) 21.01 Forfeited (925 ) 23.74 Nonvested at December 31, 2015 60,858 $ 26.46 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Following are the calculations for basic and diluted earnings per common share: Year Ended December 31, 2015 2014 2013 (dollars in thousands, except per share amounts) Basic earnings per common share computation Numerator: Net income $ 25,118 $ 18,522 $ 18,607 Denominator: Weighted average shares outstanding 10,362,929 8,405,284 8,477,904 Basic earnings per common share $ 2.42 $ 2.20 $ 2.19 Diluted earnings per common share computation Numerator: Net income $ 25,118 $ 18,522 $ 18,607 Denominator: Weighted average shares outstanding, included all dilutive potential shares 10,391,323 8,433,296 8,525,119 Diluted earnings per common share $ 2.42 $ 2.19 $ 2.18 |
Regulatory Capital Requiremen50
Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | A comparison of the Company’s and the Banks’ capital with the corresponding minimum regulatory requirements in effect as of December 31, 2015 and December 31, 2014 , is presented below: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2015: Consolidated: Total capital/risk weighted assets $ 263,717 11.48 % $ 183,718 8.00 % N/A N/A Tier 1 capital/risk weighted assets 244,154 10.63 137,789 6.00 N/A N/A Common equity tier 1 capital/risk weighted assets 220,567 9.60 103,342 4.50 N/A N/A Tier 1 leverage capital/average assets 244,154 8.34 117,123 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $ 171,583 12.53 % $ 109,578 8.00 % $ 136,972 10.00 % Tier 1 capital/risk weighted assets 154,726 11.30 82,183 6.00 109,578 8.00 Common equity tier 1 capital/risk weighted assets 154,726 11.30 61,638 4.50 89,032 6.50 Tier 1 leverage capital/average assets 154,726 8.90 69,501 4.00 86,876 5.00 Central Bank: Total capital/risk weighted assets $ 102,718 11.14 % $ 73,792 8.00 % $ 92,240 10.00 % Tier 1 capital/risk weighted assets 100,017 10.84 55,344 6.00 73,792 8.00 Common equity tier 1 capital/risk weighted assets 100,017 10.84 41,508 4.50 59,956 6.50 Tier 1 leverage capital/average assets 100,017 8.44 47,412 4.00 59,265 5.00 At December 31, 2014: Consolidated: Total capital/risk weighted assets $ 212,559 14.73 % $ 115,407 8.00 % N/A N/A Tier 1 capital/risk weighted assets 194,362 13.47 57,703 4.00 N/A N/A Tier 1 leverage capital/average assets 194,362 10.85 71,647 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $ 197,018 13.75 % $ 114,624 8.00 % $ 143,280 10.00 % Tier 1 capital/risk weighted assets 179,098 12.50 57,312 4.00 85,968 6.00 Tier 1 leverage capital/average assets 179,098 10.05 71,249 4.00 89,061 5.00 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Credit Commitments [Table Text Block] | A summary of the banks’ commitments at December 31, 2015 and 2014 , is as follows: December 31, 2015 2014 (in thousands) Commitments to extend credit $ 417,927 $ 267,036 Commitments to sell loans 3,187 801 Standby letters of credit 16,146 3,204 Total $ 437,260 $ 271,041 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following is an analysis of the changes in the loans to related parties during the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 2014 (in thousands) Balance, beginning $ 11,655 $ 22,392 Net decrease due to change in related parties (284 ) (10,275 ) Advances 3,919 2,420 Collections (5,043 ) (2,882 ) Balance, ending $ 10,247 $ 11,655 |
Estimated Fair Value of Finan53
Estimated Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2015 and 2014 . There were no liabilities subject to fair value measurement on a recurring basis as of these dates. The assets are segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurement at December 31, 2015 Using (in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Assets: Available for sale debt securities: U.S. Treasury securities $ 6,910 $ — $ 6,910 $ — U.S. Government agencies and corporations 26,653 — 26,653 — State and political subdivisions 183,384 — 183,384 — Mortgage-backed securities 57,062 — 57,062 — Collateralized mortgage obligations 106,404 — 106,404 — Corporate debt securities 45,566 — 45,566 — Total available for sale debt securities 425,979 — 425,979 — Other equity securities 1,262 1,262 — — Total securities available for sale $ 427,241 $ 1,262 $ 425,979 $ — Fair Value Measurement at December 31, 2014 Using (in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Available for sale debt securities: U.S. Government agencies and corporations $ 49,375 $ — $ 49,375 $ — State and political subdivisions 195,199 — 195,199 — Mortgage-backed securities 32,463 — 32,463 — Collateralized mortgage obligations 146,132 — 146,132 — Corporate debt securities 48,741 — 48,741 — Total available for sale debt securities 471,910 — 471,910 — Other equity securities 3,032 3,032 — — Total securities available for sale $ 474,942 $ 3,032 $ 471,910 $ — |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table presents additional information about assets measured at fair market value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value for the years ended December 31, 2015 and 2014 : For the Years Ended December 31, 2015 2014 Collateralized Debt Obligations Collateralized Debt Obligations (in thousands) Beginning balance $ — $ 1,317 Transfers into Level 3 — — Transfers out of Level 3 — — Total gains (losses): Included in earnings — 782 Included in other comprehensive income — 794 Purchases, issuances, sales, and settlements: Purchases — — Issuances — — Sales — (2,893 ) Settlements — — Ending Balance $ — $ — |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table discloses the Company’s estimated fair value amounts of its financial instruments recorded at fair value on a nonrecurring basis. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of December 31, 2015 and 2014 , as more fully described above. Fair Value Measurement at December 31, 2015 Using (in thousands) Total Quoted Prices in Significant Other Significant Unobservable Inputs (Level 3) Assets: Collateral dependent impaired loans $ 23,812 $ — $ — $ 23,812 Other real estate owned $ 8,834 $ — $ — $ 8,834 Fair Value Measurement at December 31, 2014 Using (in thousands) Total Quoted Prices in Significant Other Significant Assets: Collateral dependent impaired loans $ 3,412 $ — $ — $ 3,412 Other real estate owned $ 1,916 $ — $ — $ 1,916 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at December 31, 2015 and 2014 . The information presented is subject to change over time based on a variety of factors. The operations of the Company are managed on a going concern basis and not a liquidation basis. As a result, the ultimate value realized from the financial instruments presented could be substantially different when actually recognized over time through the normal course of operations. Additionally, a substantial portion of the Company’s inherent value is the banks' capitalization and franchise value. Neither of these components has been given consideration in the presentation of fair values below. December 31, 2015 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial assets: Cash and cash equivalents $ 47,097 $ 47,097 $ 47,097 $ — $ — Investment securities: Available for sale 427,241 427,241 1,262 425,979 — Held to maturity 118,423 118,234 — 118,234 — Total investment securities 545,664 545,475 1,262 544,213 — Loans held for sale 3,187 3,262 — — 3,262 Loans, net 2,132,515 2,132,009 — 2,132,009 — Loan pool participations, net — — — — — Accrued interest receivable 13,736 13,736 13,736 — — Federal Home Loan Bank stock 9,832 9,832 — 9,832 — Financial liabilities: Deposits: Non-interest-bearing demand 559,586 559,586 559,586 — — Interest-bearing checking 1,064,350 1,064,350 1,064,350 — — Savings 189,489 189,489 189,489 — — Certificates of deposit under $100,000 348,268 346,875 — 346,875 — Certificates of deposit $100,000 and over 301,828 301,521 — 301,521 — Total deposits 2,463,521 2,461,821 1,813,425 648,396 — Federal funds purchased and securities sold under agreements to repurchase 68,963 68,963 68,963 — — Federal Home Loan Bank borrowings 87,000 86,817 — 86,817 — Junior subordinated notes issued to capital trusts 23,587 18,611 — 18,611 — Long-term debt 22,500 22,500 — 22,500 — Accrued interest payable 1,507 1,507 1,507 — — December 31, 2014 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial assets: Cash and cash equivalents $ 23,409 $ 23,409 $ 23,409 $ — $ — Investment securities: Available for sale 474,942 474,942 3,032 471,910 — Held to maturity 51,524 51,253 — 51,253 — Total investment securities 526,466 526,195 3,032 523,163 — Loans held for sale 801 812 — — 812 Loans, net 1,116,156 1,116,285 — 1,116,285 — Loan pool participations, net 19,332 19,332 — — 19,332 Accrued interest receivable 10,898 10,898 10,898 — — Federal Home Loan Bank stock 8,582 8,582 — 8,582 — Financial liabilities: Deposits: Non-interest bearing demand 214,461 214,461 214,461 — — Interest-bearing checking 618,540 618,540 618,540 — — Savings 102,527 102,527 102,527 — — Certificates of deposit under $100,000 235,395 235,401 — 235,401 — Certificates of deposit $100,000 and over 237,619 238,480 — 238,480 — Total deposits 1,408,542 1,409,409 935,528 473,881 — Federal funds purchased and securities sold under agreements to repurchase 78,229 78,229 78,229 — — Federal Home Loan Bank borrowings 93,000 93,051 — 93,051 — Junior subordinated notes issued to capital trusts 15,464 10,021 — 10,021 — Long-term debt — — — — — Accrued interest payable 863 863 863 — — |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The following presents the valuation technique(s), observable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company at December 31, 2015 , categorized within Level 3 of the fair value hierarchy: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at December 31, 2015 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans 23,812 Modified appraised value Third party appraisal NM * NM * NM * Appraisal discount NM * NM * NM * Other real estate owned 8,834 Modified appraised value Third party appraisal NM * NM * NM * Appraisal discount NM * NM * NM * * Not Meaningful. Third party appraisals are obtained as to the value of the underlying asset, but disclosure of this information would not provide meaningful information, as the range will vary widely from loan to loan. Types of discounts considered include age of the appraisal, local market conditions, current condition of the property, and estimated sales costs. These discounts will also vary from loan to loan, thus providing a range would not be meaningful. |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table presents summary financial information for the reportable segments for the years ended December 31, 2015 , 2014 , and 2013 : Commercial Banking (in thousands) MidWest One Bank Central Bank All Other Intercompany Eliminations Consolidated Total Year ended December 31, 2015 Net interest income $ 55,414 $ 35,801 $ (1,163 ) $ — $ 90,052 Provision for loan losses 1,950 3,182 — — 5,132 Noninterest income 14,625 5,457 1,111 — 21,193 Noninterest expense (1) 40,153 26,555 6,468 — 73,176 Income tax expense (benefit) 5,161 4,562 (1,904 ) — 7,819 Net income $ 22,775 $ 6,959 $ (4,616 ) $ — $ 25,118 Goodwill $ — $ 64,548 $ — $ — $ 64,548 Total assets $ 1,720,819 $ 1,267,387 $ 343,523 $ (351,754 ) $ 2,979,975 Year ended December 31, 2014 Net interest income $ 55,377 $ — $ (524 ) $ — $ 54,853 Provision for loan losses 1,200 — — — 1,200 Noninterest income 14,016 — 1,297 — 15,313 Noninterest expense (1) 39,855 — 3,558 — 43,413 Income tax expense (benefit) 7,806 — (775 ) — 7,031 Net income $ 20,532 $ — $ (2,010 ) $ — $ 18,522 Goodwill $ — $ — $ — $ — $ — Total assets $ 1,793,428 $ — $ 210,544 $ (203,670 ) $ 1,800,302 Year ended December 31, 2013 Net interest income $ 55,159 $ — $ (1,197 ) — $ 53,962 Provision for loan losses 1,350 — — — 1,350 Noninterest income 13,436 — 1,292 — 14,728 Noninterest expense 39,827 — 2,260 — 42,087 Income tax expense (benefit) 7,514 — (868 ) — 6,646 Net income $ 19,904 $ — $ (1,297 ) $ — $ 18,607 Goodwill $ — $ — $ — $ — $ — Total assets $ 1,744,408 $ — $ 195,172 $ (184,362 ) $ 1,755,218 (1) Includes merger-related expenses of $3.5 million and $1.1 million for the year ended December 31, 2015 and December 31, 2014 , respectively, included in the All Other segment. |
Parent Company Only Financial55
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet [Table Text Block] | The following is condensed financial information of MidWest One Financial Group, Inc. as of December 31, 2015 and 2014 (parent company only): As of December 31, 2015 2014 (in thousands) Balance Sheets Assets Cash $ 4,489 $ 5,942 Investment in subsidiaries 331,612 193,600 Investment securities available for sale 300 1,602 Investment securities held to maturity 743 464 Loan pool participations, net — 1,964 Income tax receivable 571 — Deferred income taxes — 425 Other assets 4,976 5,010 Total assets $ 342,691 $ 209,007 Liabilities and Shareholders’ Equity Liabilities: Junior subordinated notes issued to capital trusts $ 23,587 $ 15,464 Long-term debt 22,500 — Deferred income taxes 113 — Other liabilities 313 812 Total liabilities 46,513 16,276 Shareholders’ equity: Capital stock, preferred — — Capital stock, common 11,713 8,690 Additional paid-in capital 163,487 80,537 Treasury stock (6,331 ) (6,945 ) Retained earnings 123,901 105,127 Accumulated other comprehensive income 3,408 5,322 Total shareholders’ equity 296,178 192,731 Total liabilities and shareholders’ equity $ 342,691 $ 209,007 |
Schedule of Condensed Income Statement [Table Text Block] | The following is condensed financial information of MidWest One Financial Group, Inc. as of December 31, 2015 , 2014 , and 2013 (parent company only): Year Ended December 31, 2015 2014 2013 (in thousands) Statements of Income Dividends received from subsidiaries $ 53,511 $ 8,500 $ 4,006 Interest income and dividends on investment securities 30 49 33 Interest and discount on loan pool participations (69 ) (293 ) (940 ) Investment securities gains 188 — — Loss on sale of loan pool participations (455 ) — — Interest on debt (1,135 ) (281 ) (296 ) Operating expenses (5,233 ) (2,351 ) (1,034 ) Income before income taxes and equity in subsidiaries’ undistributed income 46,837 5,624 1,769 Income tax benefit (1,951 ) (807 ) (890 ) Income before equity in subsidiaries’ undistributed income 48,788 6,431 2,659 Equity in subsidiaries’ undistributed income (23,670 ) 12,091 15,948 Net income $ 25,118 $ 18,522 $ 18,607 |
Schedule of Condensed Cash Flow Statement [Table Text Block] | The following is condensed financial information of MidWest One Financial Group, Inc. as of December 31, 2015 , 2014 , and 2013 (parent company only): Year Ended December 31, 2015 2014 2013 (in thousands) Statements of Cash Flows Cash flows from operating activities: Net income $ 25,118 $ 18,522 $ 18,607 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed (earnings) loss of subsidiaries, net of dividends and distributions 23,670 (12,091 ) (15,948 ) Amortization of premium on junior subordinated notes issued to capital trusts 73 — — Deferred income taxes 617 330 (583 ) Investment securities gain (188 ) — — Stock based compensation 634 493 384 (Increase) decrease in other assets 518 (488 ) (232 ) Increase (decrease) in other liabilities (907 ) 550 (15 ) Net cash provided by operating activities 49,535 7,316 2,213 Cash flows from investing activities Proceeds from sales of available for sale securities 1,173 2 2 Purchase of available for sale securities (14 ) (29 ) (24 ) Proceeds from maturities and calls of held to maturity securities 246 — — Loan participation pools, net 1,964 1,445 2,719 Net cash acquired in business combination (62,902 ) — — Investment in subsidiary - Central Bank (3,000 ) — — Net cash provided by (used in) investing activities (62,533 ) 1,418 2,697 Cash flows from financing activities: Stock options exercised 158 282 320 Repurchase of common stock — (3,987 ) (967 ) Redemption of subordinated note payable (12,669 ) — — Proceeds from long-term debt 25,000 — — Payments on long-term debt (2,500 ) — — Issuance of common stock, net of expenses 7,900 — — Dividends paid (6,344 ) (4,868 ) (4,259 ) Net cash provided by (used in) financing activities 11,545 (8,573 ) (4,906 ) Increase (decrease) in cash (1,453 ) 161 4 Cash Balance: Beginning 5,942 5,781 5,777 Ending $ 4,489 $ 5,942 $ 5,781 |
Quarterly Results of Operatio56
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Three Months Ended December 31 September 30 June 30 March 31 (in thousands, except per share amounts) 2015 Interest income $ 29,044 $ 29,989 $ 25,185 $ 16,482 Interest expense (1) 2,716 3,230 2,462 2,240 Net interest income 26,328 26,759 22,723 14,242 Provision for loan losses 1,490 2,141 901 600 Noninterest income 6,638 5,460 5,087 4,008 Noninterest expense (1) 21,809 20,342 19,846 11,179 Income before income taxes 9,667 9,736 7,063 6,471 Income tax expense 1,429 2,121 2,594 1,675 Net income $ 8,238 $ 7,615 $ 4,469 $ 4,796 Net income per common share - basic $ 0.72 $ 0.67 $ 0.43 $ 0.57 Net income per common share - diluted $ 0.72 $ 0.67 $ 0.42 $ 0.57 2014 Interest income $ 16,311 $ 15,996 $ 16,176 $ 15,921 Interest expense 2,407 2,429 2,321 2,394 Net interest income 13,904 13,567 13,855 13,527 Provision for loan losses 300 150 300 450 Noninterest income 3,534 4,006 3,556 4,217 Noninterest expense 11,563 10,819 10,639 10,392 Income before income taxes 5,575 6,604 6,472 6,902 Income tax expense 1,668 1,715 1,719 1,929 Net income $ 3,907 $ 4,889 $ 4,753 $ 4,973 Net income per common share - basic $ 0.46 $ 0.59 $ 0.56 $ 0.59 Net income per common share - diluted $ 0.46 $ 0.59 $ 0.56 $ 0.58 (1) Certain amounts in the prior periods have been reclassified to conform to the current year presentation, with no effect on net income. |
Nature of Business and Signif57
Nature of Business and Significant Accounting Policies Nature of Business (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)count | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entities, Number Consolidated | 0 |
Financing Receivable, Additional Disclosures [Abstract] | |
Threshold Period Past Due For Nonaccrual Of Interest | 90 days |
Threshold Period Past Due for Write-off of Financing Receivable | 180 days |
MidWestOne Bank | |
Entity Information [Line Items] | |
Number of branches | 24 |
Central Bank | |
Entity Information [Line Items] | |
Number of branches | 22 |
FDIC Indemnification Asset | |
Entity Information [Line Items] | |
Asset Impairment Charges | $ | $ 0 |
Nature of Business and Signif58
Nature of Business and Significant Accounting Policies Business Combination (Details) - Central Bancshares, Inc. $ in Thousands | May. 01, 2015USD ($)shares |
Business Acquisition [Line Items] | |
Cash Paid | $ | $ 64,000 |
Common Stock | |
Business Acquisition [Line Items] | |
Number of shares issued in merger | shares | 2,723,083 |
Nature of Business and Signif59
Nature of Business and Significant Accounting Policies Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Depreciation Methods | Straight-line |
Buildings and leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Buildings and leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 30 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Nature of Business and Signif60
Nature of Business and Significant Accounting Policies Stock Repurchase (Details) - Common Stock - USD ($) $ in Millions | 12 Months Ended | 18 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jul. 17, 2014 | Jan. 15, 2013 | Dec. 31, 2012 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchased During Period, Shares | 0 | 165,766 | 40,713 | ||||
October 18 2011 Share Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 2.4 | ||||||
January 15 2013 Share Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 5 | ||||||
Stock Repurchased During Period, Shares | 113,566 | ||||||
Stock Repurchased During Period, Value | $ 2.8 | $ 3.7 | |||||
July 17 2014 Share Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 5 | ||||||
Stock Repurchased During Period, Shares | 0 | 165,766 | |||||
Stock Repurchased During Period, Value | $ 4 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 3.8 |
Schedule of Cumulative Other Co
Schedule of Cumulative Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Cumulative Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income, net of tax | $ 3,408 | $ 5,322 | |
Accumulated Other Comprehensive Income (Loss) | |||
Schedule of Cumulative Other Comprehensive Income [Line Items] | |||
Unrealized gains on securities available for sale, net of tax | 3,408 | 5,322 | $ 1,049 |
Accumulated other comprehensive income, net of tax | $ 3,408 | $ 5,322 | $ 1,049 |
Business Combination Identifiab
Business Combination Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Goodwill | $ 64,548 | $ 64,548 | $ 0 | |
Central Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Business combination, provisional information, initial accounting incomplete, adjustment, deferred tax liability | 2,000 | |||
Pretax merger related costs | 3,500 | |||
Professional and legal fees | 1,900 | |||
Retention and severance compensation expenses | 600 | |||
Service contract termination and other expenses | 1,000 | |||
Goodwill purchase accounting adjustments | 1,400 | |||
Assets | ||||
Cash and due from banks | $ 28,404 | |||
Investment securities | 160,775 | 160,775 | 160,775 | |
Loans | 916,973 | 916,973 | 916,973 | |
Premises and equipment | 27,908 | 27,908 | 27,908 | |
Goodwill | 64,548 | 64,548 | 64,548 | |
FDIC indemnification asset | 3,753 | |||
Other real estate owned | 8,420 | 8,420 | 8,420 | |
Other assets | 14,588 | 14,588 | 14,588 | |
Total assets | 1,239,522 | 1,211,118 | 1,211,118 | |
Liabilities [Abstract] | ||||
Deposits | 1,049,167 | 1,049,167 | 1,049,167 | |
Short-term borrowings | 16,124 | 16,124 | 16,124 | |
Junior subordinated notes issued to capital trusts | 8,050 | 8,050 | 8,050 | |
Subordinated notes payable | 12,669 | 12,669 | 12,669 | |
Accrued expenses and other liabilities | 11,617 | 11,617 | 11,617 | |
Total liabilities | 1,097,627 | 1,097,627 | 1,097,627 | |
Net assets | 141,895 | |||
Consideration [Abstract] | ||||
Market value of common stock at $29.31 per share at May 1, 2015 (2,723,083 shares of common stock issued), net of stock illiquidity discount due to restrictions | 77,895 | |||
Cash Paid | 64,000 | |||
Total fair value of consideration | 141,895 | |||
Central Bancshares, Inc. | Core Deposits | ||||
Assets | ||||
Finite lived intangible | 12,773 | 12,773 | 12,773 | |
Central Bancshares, Inc. | Trade Names | ||||
Assets | ||||
Finite lived intangible | $ 1,380 | $ 1,380 | $ 1,380 | |
Central Bancshares, Inc. | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued in merger | 2,723,083 | |||
Common Stock | Central Bancshares, Inc. | ||||
Consideration [Abstract] | ||||
Business acquisition, share price | $ 29.31 |
Business Combination Acquired L
Business Combination Acquired Loans (Details) - Central Bancshares, Inc. $ in Thousands | May. 01, 2015USD ($) | |
Business Acquisition [Line Items] | ||
Contractually required principal and interest payments, purchased credit impaired loans | $ 36,886 | |
Nonaccretable difference, purchased credit impaired loans | (6,675) | |
Principal cash flows expected to be collected, purchased credit impaired loans | 30,211 | |
Accretable difference, purchased credit impaired loans | (1,882) | |
Fair value of acquired loans, purchased credit impaired loans | 28,329 | |
Contractually required principal and interest payments, purchased non-credit impaired loans | 905,314 | |
Nonaccretable difference, purchased non-credit impaired loans | 0 | |
Principal cash flows expected to be collected, purchased non-credit impaired loans | 905,314 | |
Accretable difference, purchased non-credit impaired loans | (16,670) | [1] |
Fair value of acquired loans, purchased non-credit impaired loans | 888,644 | |
Purchased non-credit impaired loans, accretable discount, estimated uncollectible | $ 10,400 | |
[1] | (1) Included in the accretable discount for Purchased Non-Credit Impaired Loans is approximately $10.4 million of estimated undiscounted principal losses. |
Business Combination Pro Forma
Business Combination Pro Forma Information (Details) - Central Bancshares, Inc. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Business acquisition, pro forma revenue (net interest income plus noninterest income) | $ 128,613 | $ 130,502 |
Business acquisition, pro forma net income | 25,799 | 24,430 |
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | $ 41,300 | |
Business combination, pro forma information, earnings of acquiree since acquisition date, actual | $ 7,000 |
Schedule of Available for Sale
Schedule of Available for Sale Securities(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | $ 421,740 | $ 466,387 |
Gross unrealized gains | 7,751 | 11,240 |
Gross unrealized losses | 2,250 | 2,685 |
Available for sale | 427,241 | 474,942 |
Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | 420,490 | 463,701 |
Gross unrealized gains | 7,701 | 10,860 |
Gross unrealized losses | 2,212 | 2,651 |
Available for sale | 425,979 | 471,910 |
US Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | 6,931 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 21 | |
Available for sale | 6,910 | |
U.S. Government agencies and corporations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | 26,600 | 49,392 |
Gross unrealized gains | 99 | 248 |
Gross unrealized losses | 46 | 265 |
Available for sale | 26,653 | 49,375 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | 176,794 | 187,276 |
Gross unrealized gains | 6,662 | 8,113 |
Gross unrealized losses | 72 | 190 |
Available for sale | 183,384 | 195,199 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | 56,950 | 30,965 |
Gross unrealized gains | 569 | 1,498 |
Gross unrealized losses | 457 | 0 |
Available for sale | 57,062 | 32,463 |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | 107,613 | 147,412 |
Gross unrealized gains | 321 | 813 |
Gross unrealized losses | 1,530 | 2,093 |
Available for sale | 106,404 | 146,132 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | 45,602 | 48,656 |
Gross unrealized gains | 50 | 188 |
Gross unrealized losses | 86 | 103 |
Available for sale | 45,566 | 48,741 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost basis | 1,250 | 2,686 |
Gross unrealized gains | 50 | 380 |
Gross unrealized losses | 38 | 34 |
Available for sale | $ 1,262 | $ 3,032 |
Schedule of Held to Maturity Se
Schedule of Held to Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | $ 118,423 | $ 51,524 |
Gross unrealized gains | 933 | 373 |
Gross unrealized losses | 1,122 | 644 |
Estimated fair value of investment securities held to maturity | 118,234 | 51,253 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | 66,454 | 39,704 |
Gross unrealized gains | 928 | 370 |
Gross unrealized losses | 110 | 252 |
Estimated fair value of investment securities held to maturity | 67,272 | 39,822 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | 3,920 | 22 |
Gross unrealized gains | 4 | 3 |
Gross unrealized losses | 38 | |
Estimated fair value of investment securities held to maturity | 3,886 | 25 |
Collateralized mortgage obligations | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | 30,505 | 8,531 |
Gross unrealized gains | 1 | |
Gross unrealized losses | 459 | 233 |
Estimated fair value of investment securities held to maturity | 30,047 | 8,298 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | 17,544 | 3,267 |
Gross unrealized losses | 515 | 159 |
Estimated fair value of investment securities held to maturity | $ 17,029 | $ 3,108 |
Available for Sale Securities i
Available for Sale Securities in Continuous Loss Position (Details) $ in Thousands | Dec. 31, 2015USD ($)count | Dec. 31, 2014USD ($)count |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities in unrealized loss positions, number of positions | count | 83 | 72 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 144,915 | $ 50,965 |
Available for sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 1,054 | 202 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 35,392 | 98,482 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 1,196 | 2,483 |
Available for sale securities, continuous unrealized loss position, fair value | 180,307 | 149,447 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 2,250 | $ 2,685 |
US Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities in unrealized loss positions, number of positions | count | 1 | |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 6,910 | |
Available for sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 21 | |
Available for sale securities, continuous unrealized loss position, fair value | 6,910 | |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 21 | |
U.S. Government agencies and corporations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities in unrealized loss positions, number of positions | count | 1 | 4 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 4,890 | $ 9,946 |
Available for sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 46 | 11 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 15,018 | |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 254 | |
Available for sale securities, continuous unrealized loss position, fair value | 4,890 | 24,964 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 46 | $ 265 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities in unrealized loss positions, number of positions | count | 22 | 46 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 8,419 | $ 3,024 |
Available for sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 24 | 18 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 3,177 | 10,728 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 48 | 172 |
Available for sale securities, continuous unrealized loss position, fair value | 11,596 | 13,752 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 72 | $ 190 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities in unrealized loss positions, number of positions | count | 27 | |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 37,753 | |
Available for sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 457 | |
Available for sale securities, continuous unrealized loss position, fair value | 37,753 | |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 457 | |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities in unrealized loss positions, number of positions | count | 23 | 14 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 56,447 | $ 14,971 |
Available for sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 420 | 123 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 31,253 | 68,370 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 1,110 | 1,970 |
Available for sale securities, continuous unrealized loss position, fair value | 87,700 | 83,341 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 1,530 | $ 2,093 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities in unrealized loss positions, number of positions | count | 8 | 7 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 30,496 | $ 23,024 |
Available for sale securities, continuous unrealized loss position, less than 12 months, accumulated loss | 86 | 50 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 3,400 | |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 53 | |
Available for sale securities, continuous unrealized loss position, fair value | 30,496 | 26,424 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 86 | $ 103 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities in unrealized loss positions, number of positions | count | 1 | 1 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | $ 962 | $ 966 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 38 | 34 |
Available for sale securities, continuous unrealized loss position, fair value | 962 | 966 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 38 | $ 34 |
Held to Maturity Securities in
Held to Maturity Securities in Continuous Loss Position (Details) $ in Thousands | Dec. 31, 2015USD ($)count | Dec. 31, 2014USD ($)count |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 50 | 32 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 51,245 | $ 7,680 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 760 | 217 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 10,136 | 18,192 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 362 | 427 |
Held to maturity securities, continuous unrealized loss position, fair value | 61,381 | 25,872 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 1,122 | $ 644 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 32 | 29 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 9,345 | $ 5,322 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 93 | 190 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 2,040 | 9,144 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 17 | 62 |
Held to maturity securities, continuous unrealized loss position, fair value | 11,385 | 14,466 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 110 | $ 252 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 5 | |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 3,723 | |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 38 | |
Held to maturity securities, continuous unrealized loss position, fair value | 3,723 | |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 38 | |
Collateralized mortgage obligations | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 7 | 1 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 22,571 | |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 320 | |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 7,416 | $ 8,298 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 139 | 233 |
Held to maturity securities, continuous unrealized loss position, fair value | 29,987 | 8,298 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 459 | $ 233 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 6 | 2 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 15,606 | $ 2,358 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 309 | 27 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 680 | 750 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 206 | 132 |
Held to maturity securities, continuous unrealized loss position, fair value | 16,286 | 3,108 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 515 | $ 159 |
Credit Losses on Fixed Maturity
Credit Losses on Fixed Maturity Securities Recognized in Net Income (Details) - Available-for-sale Securities [Member] - Debt securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Beginning balance | $ 0 | $ 6,639 |
Reductions to credit losses: | ||
Securities with previous other than temporary impairments, due to sale | 0 | 6,639 |
Ending balance | $ 0 | $ 0 |
Investments Classified by Contr
Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, amortized cost | $ 35,139 | |
Due after one year through five years, amortized cost | 100,588 | |
Due after five years through ten years, amortized cost | 101,972 | |
Due after ten years, amortized cost | 18,228 | |
Debt securities without a single maturity date, amortized cost | 164,563 | |
Total, amortized cost | 420,490 | |
Due in one year or less, estimated fair value | 35,355 | |
Due after one year through five years, estimated fair value | 102,119 | |
Due after five years through ten years, estimated fair value | 106,337 | |
Due after ten years, estimated fair value | 18,702 | |
Debt securities without a single maturity date, estimated fair value | 163,466 | |
Total, estimated fair value | 425,979 | |
Held-to-maturity Securities, Debt Maturities [Abstract] | ||
Due in one year or less, amortized cost | 417 | |
Due after one year through five years, amortized cost | 5,638 | |
Due after five years through ten years, amortized cost | 49,722 | |
Due after ten years, amortized cost | 28,221 | |
Debt securities without a single maturity date, amortized cost | 34,425 | |
Held to maturity | 118,423 | $ 51,524 |
Due in one year or less, estimated fair value | 417 | |
Due after one year through five years, estimated fair value | 5,634 | |
Due after five years through ten years, estimated fair value | 49,941 | |
Due after ten years, estimated fair value | 28,309 | |
Debt securities without a single maturity date, estimated fair value | 33,933 | |
Estimated fair value | $ 118,234 | $ 51,253 |
Investment Securities Realized
Investment Securities Realized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Investments [Line Items] | |||
Total | $ 1,011 | $ 1,227 | $ 65 |
Debt securities | |||
Gain (Loss) on Investments [Line Items] | |||
Gross realized gains | 1,265 | 1,463 | 144 |
Gross realized losses | 442 | 236 | 79 |
Total | 823 | 1,227 | 65 |
Equity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Gross realized gains | 188 | 0 | |
Gross realized losses | 0 | 0 | |
Other-than-temporary impairment | 0 | $ 0 | |
Total | $ 188 | $ 0 |
Investment Securities Investmen
Investment Securities Investment Securities Textual References (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)count | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment securities gains | $ 1,011 | $ 1,227 | $ 65 | |
Available for sale | 427,241 | 474,942 | ||
Available-for-sale securities pledged as collateral | 321,600 | 200,700 | ||
Investment in collateralized debt obligations, number of securities | count | 5 | |||
Investment in Collateralized Debt Obligations, amortized cost basis | 421,740 | 466,387 | ||
Proceeds from sales of available for sale securities | 116,829 | 33,457 | $ 12,447 | |
State and political subdivisions | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale | 183,384 | 195,199 | ||
Investment in Collateralized Debt Obligations, amortized cost basis | 176,794 | 187,276 | ||
Collateralized debt obligations | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment securities gains | $ 800 | |||
Investment in Collateralized Debt Obligations, original basis | 8,800 | |||
Investment in Collateralized Debt Obligations, amortized cost basis | $ 2,100 | |||
Corporate debt securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale | 45,566 | 48,741 | ||
Investment in Collateralized Debt Obligations, amortized cost basis | 45,602 | 48,656 | ||
Equity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale | 1,262 | 3,032 | ||
Other-than-temporary impairment losses, equity securities | 0 | 0 | ||
Investment in Collateralized Debt Obligations, amortized cost basis | 1,250 | $ 2,686 | ||
Community Reinvestment Act qualified investment | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale | 1,000 | |||
Banks, Trust and Insurance, Equities | Equity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale | $ 300 | |||
Total Obligations of State and Political Subdivisions | Geographic Concentration Risk | IOWA | State and political subdivisions | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Concentration risk, percentage | 56.00% | |||
Total Obligations of State and Political Subdivisions | Geographic Concentration Risk | MINNESOTA | State and political subdivisions | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Concentration risk, percentage | 22.00% |
Allowance for Loan Losses and R
Allowance for Loan Losses and Recorded Investment in Loan Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | $ 3,714 | $ 1,145 | ||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 15,619 | 15,218 | ||
Loans and leases receivable, allowance for loan losses | 19,427 | 16,363 | $ 16,179 | $ 15,957 |
Financing Receivable [Abstract] | ||||
Loans receivable, individually evaluated for impairment | 40,238 | 13,486 | ||
Loans receivable, collectively evaluated for impairment | 2,086,112 | 1,119,033 | ||
Loans and leases receivable, gross | 2,151,942 | 1,132,519 | ||
Agricultural Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 51 | 88 | ||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 1,366 | 1,418 | ||
Loans and leases receivable, allowance for loan losses | 1,417 | 1,506 | 1,358 | 1,026 |
Financing Receivable [Abstract] | ||||
Loans receivable, individually evaluated for impairment | 3,072 | 3,027 | ||
Loans receivable, collectively evaluated for impairment | 118,642 | 101,782 | ||
Loans and leases receivable, gross | 121,714 | 104,809 | ||
Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 489 | 206 | ||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 4,962 | 5,574 | ||
Loans and leases receivable, allowance for loan losses | 5,451 | 5,780 | 4,980 | 4,599 |
Financing Receivable [Abstract] | ||||
Loans receivable, individually evaluated for impairment | 7,718 | 3,168 | ||
Loans receivable, collectively evaluated for impairment | 461,275 | 301,732 | ||
Loans and leases receivable, gross | 469,249 | 304,900 | ||
Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 2,786 | 226 | ||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 5,718 | 4,173 | ||
Loans and leases receivable, allowance for loan losses | 8,556 | 4,399 | 5,294 | 5,767 |
Financing Receivable [Abstract] | ||||
Loans receivable, individually evaluated for impairment | 23,697 | 3,916 | ||
Loans receivable, collectively evaluated for impairment | 950,207 | 422,605 | ||
Loans and leases receivable, gross | 991,941 | 426,521 | ||
Residential Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 387 | 623 | ||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 3,539 | 2,544 | ||
Loans and leases receivable, allowance for loan losses | 3,968 | 3,167 | 3,185 | 3,007 |
Financing Receivable [Abstract] | ||||
Loans receivable, individually evaluated for impairment | 5,725 | 3,341 | ||
Loans receivable, collectively evaluated for impairment | 517,482 | 269,270 | ||
Loans and leases receivable, gross | 530,506 | 272,611 | ||
Consumer Other Financing Receivable | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 1 | 2 | ||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 408 | 321 | ||
Loans and leases receivable, allowance for loan losses | 409 | 323 | 275 | 356 |
Financing Receivable [Abstract] | ||||
Loans receivable, individually evaluated for impairment | 26 | 34 | ||
Loans receivable, collectively evaluated for impairment | 38,506 | 23,644 | ||
Loans and leases receivable, gross | 38,532 | 23,678 | ||
Unallocated Financing Receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | (374) | 1,188 | ||
Loans and leases receivable, allowance for loan losses | (374) | $ 1,188 | $ 1,087 | $ 1,202 |
Receivables Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Certain loans acquired in transfer not accounted for as debt securities, allowance for loan losses | 94 | |||
Financing Receivable [Abstract] | ||||
Loans receivable, purchased credit impaired | 25,592 | |||
Receivables Acquired with Deteriorated Credit Quality | Commercial Portfolio Segment | ||||
Financing Receivable [Abstract] | ||||
Loans receivable, purchased credit impaired | 256 | |||
Receivables Acquired with Deteriorated Credit Quality | Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Certain loans acquired in transfer not accounted for as debt securities, allowance for loan losses | 52 | |||
Financing Receivable [Abstract] | ||||
Loans receivable, purchased credit impaired | 18,037 | |||
Receivables Acquired with Deteriorated Credit Quality | Residential Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Certain loans acquired in transfer not accounted for as debt securities, allowance for loan losses | 42 | |||
Financing Receivable [Abstract] | ||||
Loans receivable, purchased credit impaired | $ 7,299 |
Allowance for Loan Loss Activit
Allowance for Loan Loss Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | $ 16,363 | $ 16,179 | $ 16,363 | $ 16,179 | $ 15,957 | ||||||
Charge-offs | 2,622 | 1,361 | 1,807 | ||||||||
Recoveries | 554 | 345 | 679 | ||||||||
Provision for loan losses | $ 1,490 | $ 2,141 | $ 901 | 600 | $ 300 | $ 150 | $ 300 | 450 | 5,132 | 1,200 | 1,350 |
Ending balance | 19,427 | 16,363 | 19,427 | 16,363 | 16,179 | ||||||
Agricultural Portfolio Segment | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | 1,506 | 1,358 | 1,506 | 1,358 | 1,026 | ||||||
Charge-offs | 245 | 26 | 39 | ||||||||
Recoveries | 1 | 10 | 36 | ||||||||
Provision for loan losses | 155 | 164 | 335 | ||||||||
Ending balance | 1,417 | 1,506 | 1,417 | 1,506 | 1,358 | ||||||
Commercial Portfolio Segment | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | 5,780 | 4,980 | 5,780 | 4,980 | 4,599 | ||||||
Charge-offs | 692 | 685 | 790 | ||||||||
Recoveries | 372 | 217 | 70 | ||||||||
Provision for loan losses | (9) | 1,268 | 1,101 | ||||||||
Ending balance | 5,451 | 5,780 | 5,451 | 5,780 | 4,980 | ||||||
Commercial Real Estate Portfolio Segment | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | 4,399 | 5,294 | 4,399 | 5,294 | 5,767 | ||||||
Charge-offs | 853 | 165 | 545 | ||||||||
Recoveries | 7 | 61 | 479 | ||||||||
Provision for loan losses | 5,003 | (791) | (407) | ||||||||
Ending balance | 8,556 | 4,399 | 8,556 | 4,399 | 5,294 | ||||||
Residential Portfolio Segment | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | 3,167 | 3,185 | 3,167 | 3,185 | 3,007 | ||||||
Charge-offs | 740 | 409 | 286 | ||||||||
Recoveries | 143 | 22 | 67 | ||||||||
Provision for loan losses | 1,398 | 369 | 397 | ||||||||
Ending balance | 3,968 | 3,167 | 3,968 | 3,167 | 3,185 | ||||||
Consumer Other Financing Receivable | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | 323 | 275 | 323 | 275 | 356 | ||||||
Charge-offs | 92 | 76 | 147 | ||||||||
Recoveries | 31 | 35 | 27 | ||||||||
Provision for loan losses | 147 | 89 | 39 | ||||||||
Ending balance | 409 | 323 | 409 | 323 | 275 | ||||||
Unallocated Financing Receivables | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | $ 1,188 | $ 1,087 | 1,188 | 1,087 | 1,202 | ||||||
Provision for loan losses | (1,562) | 101 | (115) | ||||||||
Ending balance | $ (374) | $ 1,188 | $ (374) | $ 1,188 | $ 1,087 |
New Troubled Debt Restructuring
New Troubled Debt Restructurings During Period (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)count | Dec. 31, 2014USD ($)count | Dec. 31, 2013USD ($)count | ||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | count | [1] | 1 | 2 | 16 |
Financing receivable, modifications, pre-modification recorded investment | [1] | $ 151 | $ 1,690 | $ 1,949 |
Financing receivable, modifications, post-modification recorded investment | [1] | $ 151 | $ 1,697 | $ 1,933 |
Contractual Interest Rate Reduction | Residential Real Estate First Lien Loan Financing Receivable | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | count | [1] | 1 | 1 | 2 |
Financing receivable, modifications, pre-modification recorded investment | [1] | $ 151 | $ 285 | $ 164 |
Financing receivable, modifications, post-modification recorded investment | [1] | $ 151 | $ 292 | $ 169 |
Contractual Interest Rate Reduction | Residential Real Estate Junior Lien Loan Financing Receivable | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | count | [1] | 1 | ||
Financing receivable, modifications, pre-modification recorded investment | [1] | $ 8 | ||
Financing receivable, modifications, post-modification recorded investment | [1] | $ 13 | ||
Extended Maturity | Commercial and Industrical Loan Financing Receivable | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | count | [1] | 1 | 10 | |
Financing receivable, modifications, pre-modification recorded investment | [1] | $ 1,405 | $ 1,546 | |
Financing receivable, modifications, post-modification recorded investment | [1] | $ 1,405 | $ 1,546 | |
Extended Maturity | Commercial Real Estate Loan Other Financing Receivable | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | count | [1] | 2 | ||
Financing receivable, modifications, pre-modification recorded investment | [1] | $ 165 | ||
Financing receivable, modifications, post-modification recorded investment | [1] | $ 136 | ||
Extended Maturity | Residential Real Estate First Lien Loan Financing Receivable | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | count | [1] | 1 | ||
Financing receivable, modifications, pre-modification recorded investment | [1] | $ 66 | ||
Financing receivable, modifications, post-modification recorded investment | [1] | $ 69 | ||
[1] | (1) TDRs may include multiple concessions and the disclosure classifications are based on the primary concession provided to the borrower. |
New Troubled Debt Restructuri76
New Troubled Debt Restructurings During Past Twelve Months That Defaulted During the Period (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($)count | |
Financing Receivable, Modifications [Line Items] | |
Financing receivable, modifications, subsequent default, number of contracts | count | 2 |
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 180 |
Contractual Interest Rate Reduction | Residential Real Estate First Lien Loan Financing Receivable | |
Financing Receivable, Modifications [Line Items] | |
Financing receivable, modifications, subsequent default, number of contracts | count | 1 |
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 111 |
Extended Maturity | Commercial Real Estate Loan Other Financing Receivable | |
Financing Receivable, Modifications [Line Items] | |
Financing receivable, modifications, subsequent default, number of contracts | count | 1 |
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 69 |
Loans by Internally Assigned Cr
Loans by Internally Assigned Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | $ 2,151,942 | $ 1,132,519 |
Purchased credit-impaired loans, internally classified as other than pass | 23,700 | |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 121,714 | 104,809 |
Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 467,412 | 303,108 |
Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 1,377 | 1,246 |
Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 1,483 | 744 |
Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 120,753 | 59,383 |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 89,084 | 83,700 |
Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 121,763 | 54,886 |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 660,341 | 228,552 |
Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 991,941 | 426,521 |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 428,233 | 219,314 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 102,273 | 53,297 |
Residential Real Estate Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 530,506 | 272,611 |
Consumer Other Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 37,509 | 23,480 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 2,020,162 | 1,067,427 |
Pass | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 111,361 | 98,096 |
Pass | Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 436,857 | 273,290 |
Pass | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 1,354 | 1,240 |
Pass | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 1,168 | 373 |
Pass | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 114,640 | 56,963 |
Pass | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 82,442 | 79,629 |
Pass | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 119,139 | 54,708 |
Pass | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 609,651 | 215,268 |
Pass | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 925,872 | 406,568 |
Pass | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 410,143 | 211,390 |
Pass | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 96,223 | 53,039 |
Pass | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 506,366 | 264,429 |
Pass | Consumer Other Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 37,184 | 23,431 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 52,736 | 31,080 |
Special Mention | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 8,536 | 5,032 |
Special Mention | Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 12,893 | 7,468 |
Special Mention | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 19 | 6 |
Special Mention | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 100 | 262 |
Special Mention | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 2,406 | 1,151 |
Special Mention | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 2,408 | 1,778 |
Special Mention | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 371 | 178 |
Special Mention | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 19,402 | 11,216 |
Special Mention | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 24,587 | 14,323 |
Special Mention | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 4,813 | 3,933 |
Special Mention | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 1,782 | 48 |
Special Mention | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 6,595 | 3,981 |
Special Mention | Consumer Other Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 6 | 8 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 78,699 | 34,012 |
Substandard | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 1,817 | 1,681 |
Substandard | Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 17,652 | 22,350 |
Substandard | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 4 | |
Substandard | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 215 | 109 |
Substandard | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 3,707 | 1,269 |
Substandard | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 4,234 | 2,293 |
Substandard | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 2,253 | |
Substandard | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 31,288 | 2,068 |
Substandard | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 41,482 | 5,630 |
Substandard | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 13,042 | 3,991 |
Substandard | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 4,209 | 210 |
Substandard | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 17,251 | 4,201 |
Substandard | Consumer Other Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 278 | $ 41 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 345 | |
Doubtful | Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 10 | |
Doubtful | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 235 | |
Doubtful | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 59 | |
Doubtful | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 294 | |
Doubtful | Consumer Other Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | $ 41 |
Amounts and Categories of Impai
Amounts and Categories of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | $ 28,701 | $ 7,512 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 30,468 | 8,805 | |
Impaired financing receivable, with related allowance, recorded investment | 11,537 | 5,974 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 11,703 | 5,974 | |
Impaired financing receivable, related allowance | 3,714 | 1,145 | |
Impaired financing receivable, recorded investment | 40,238 | 13,486 | |
Impaired financing receivable, unpaid principal balance | 42,171 | 14,779 | |
Impaired financing receivable, with no related allowance, average recorded investment | 29,778 | 7,648 | $ 4,727 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 1,256 | 865 | 259 |
Impaired financing receivable, with related allowance, average recorded investment | 11,695 | 6,048 | 8,663 |
Impaired financing receivable, with related allowance, interest income, accrual method | 511 | 564 | 332 |
Impaired financing receivable, average recorded investment | 41,473 | 13,696 | 13,390 |
Impaired financing receivable, interest income, accrual method | 1,767 | 1,429 | 591 |
Loans and leases receivable, impaired, commitment to lend | 0 | ||
Agricultural Loan Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 1,512 | 1,410 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,084 | 1,910 | |
Impaired financing receivable, with related allowance, recorded investment | 1,560 | 1,617 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 1,560 | 1,617 | |
Impaired financing receivable, related allowance | 51 | 88 | |
Impaired financing receivable, recorded investment | 3,072 | 3,027 | |
Impaired financing receivable, unpaid principal balance | 3,644 | 3,527 | |
Impaired financing receivable, with no related allowance, average recorded investment | 1,533 | 1,413 | 1,128 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 58 | 211 | 114 |
Impaired financing receivable, with related allowance, average recorded investment | 1,572 | 1,627 | 1,681 |
Impaired financing receivable, with related allowance, interest income, accrual method | 48 | 203 | 51 |
Impaired financing receivable, average recorded investment | 3,105 | 3,040 | 2,809 |
Impaired financing receivable, interest income, accrual method | 106 | 414 | 165 |
Commercial and Industrical Loan Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 6,487 | 2,169 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 6,752 | 2,270 | |
Impaired financing receivable, with related allowance, recorded investment | 1,231 | 999 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 1,258 | 999 | |
Impaired financing receivable, related allowance | 489 | 206 | |
Impaired financing receivable, recorded investment | 7,718 | 3,168 | |
Impaired financing receivable, unpaid principal balance | 8,010 | 3,269 | |
Impaired financing receivable, with no related allowance, average recorded investment | 6,769 | 2,234 | 2,025 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 424 | 160 | 76 |
Impaired financing receivable, with related allowance, average recorded investment | 1,313 | 1,044 | 1,697 |
Impaired financing receivable, with related allowance, interest income, accrual method | 67 | 104 | 75 |
Impaired financing receivable, average recorded investment | 8,082 | 3,278 | 3,722 |
Impaired financing receivable, interest income, accrual method | 491 | 264 | 151 |
Commercial Real Estate Construction and Development Loan Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 321 | 49 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 448 | 176 | |
Impaired financing receivable, with related allowance, recorded investment | 34 | 34 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 34 | 34 | |
Impaired financing receivable, related allowance | 34 | 34 | |
Impaired financing receivable, recorded investment | 355 | 83 | |
Impaired financing receivable, unpaid principal balance | 482 | 210 | |
Impaired financing receivable, with no related allowance, average recorded investment | 325 | 49 | 149 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 7 | 21 | |
Impaired financing receivable, with related allowance, average recorded investment | 34 | 35 | 7 |
Impaired financing receivable, with related allowance, interest income, accrual method | 3 | ||
Impaired financing receivable, average recorded investment | 359 | 84 | 156 |
Impaired financing receivable, interest income, accrual method | 7 | 3 | 21 |
Farmland Loan Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 2,711 | 2,270 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,870 | 2,433 | |
Impaired financing receivable, with related allowance, recorded investment | 69 | 74 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 69 | 74 | |
Impaired financing receivable, related allowance | 3 | 4 | |
Impaired financing receivable, recorded investment | 2,780 | 2,344 | |
Impaired financing receivable, unpaid principal balance | 2,939 | 2,507 | |
Impaired financing receivable, with no related allowance, average recorded investment | 2,743 | 2,288 | 101 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 128 | 456 | 8 |
Impaired financing receivable, with related allowance, average recorded investment | 70 | 74 | 2,315 |
Impaired financing receivable, with related allowance, interest income, accrual method | 2 | 3 | 110 |
Impaired financing receivable, average recorded investment | 2,813 | 2,362 | 2,416 |
Impaired financing receivable, interest income, accrual method | 130 | 459 | 118 |
Multifamily Real Estate Loan Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 1,632 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 1,798 | ||
Impaired financing receivable, with related allowance, recorded investment | 224 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 224 | ||
Impaired financing receivable, related allowance | 73 | ||
Impaired financing receivable, recorded investment | 1,856 | ||
Impaired financing receivable, unpaid principal balance | 2,022 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 1,833 | ||
Impaired financing receivable, with no related allowance, interest income, accrual method | 68 | ||
Impaired financing receivable, with related allowance, average recorded investment | 226 | ||
Impaired financing receivable, with related allowance, interest income, accrual method | 6 | ||
Impaired financing receivable, average recorded investment | 2,059 | ||
Impaired financing receivable, interest income, accrual method | 74 | ||
Commercial Real Estate Loan Other Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 12,230 | 939 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 12,642 | 1,064 | |
Impaired financing receivable, with related allowance, recorded investment | 6,476 | 550 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 6,478 | 550 | |
Impaired financing receivable, related allowance | 2,676 | 188 | |
Impaired financing receivable, recorded investment | 18,706 | 1,489 | |
Impaired financing receivable, unpaid principal balance | 19,120 | 1,614 | |
Impaired financing receivable, with no related allowance, average recorded investment | 12,772 | 975 | 593 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 446 | 25 | |
Impaired financing receivable, with related allowance, average recorded investment | 6,528 | 551 | 1,921 |
Impaired financing receivable, with related allowance, interest income, accrual method | 344 | 43 | 55 |
Impaired financing receivable, average recorded investment | 19,300 | 1,526 | 2,514 |
Impaired financing receivable, interest income, accrual method | 790 | 43 | 80 |
Commercial Real Estate Total | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 16,894 | 3,258 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 17,758 | 3,673 | |
Impaired financing receivable, with related allowance, recorded investment | 6,803 | 658 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 6,805 | 658 | |
Impaired financing receivable, related allowance | 2,786 | 226 | |
Impaired financing receivable, recorded investment | 23,697 | 3,916 | |
Impaired financing receivable, unpaid principal balance | 24,563 | 4,331 | |
Impaired financing receivable, with no related allowance, average recorded investment | 17,673 | 3,312 | 843 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 649 | 456 | 54 |
Impaired financing receivable, with related allowance, average recorded investment | 6,858 | 660 | 4,243 |
Impaired financing receivable, with related allowance, interest income, accrual method | 352 | 49 | 165 |
Impaired financing receivable, average recorded investment | 24,531 | 3,972 | 5,086 |
Impaired financing receivable, interest income, accrual method | 1,001 | 505 | 219 |
Residential Real Estate First Lien Loan Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 2,494 | 535 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,533 | 773 | |
Impaired financing receivable, with related allowance, recorded investment | 1,919 | 2,600 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 2,056 | 2,600 | |
Impaired financing receivable, related allowance | 383 | 594 | |
Impaired financing receivable, recorded investment | 4,413 | 3,135 | |
Impaired financing receivable, unpaid principal balance | 4,589 | 3,373 | |
Impaired financing receivable, with no related allowance, average recorded investment | 2,469 | 547 | 669 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 81 | 32 | 14 |
Impaired financing receivable, with related allowance, average recorded investment | 1,928 | 2,612 | 909 |
Impaired financing receivable, with related allowance, interest income, accrual method | 44 | 203 | 38 |
Impaired financing receivable, average recorded investment | 4,397 | 3,159 | 1,578 |
Impaired financing receivable, interest income, accrual method | 125 | 235 | 52 |
Residential Real Estate Junior Lien Loan Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 1,297 | 134 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 1,308 | 157 | |
Impaired financing receivable, with related allowance, recorded investment | 15 | 72 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 15 | 72 | |
Impaired financing receivable, related allowance | 4 | 29 | |
Impaired financing receivable, recorded investment | 1,312 | 206 | |
Impaired financing receivable, unpaid principal balance | 1,323 | 229 | |
Impaired financing receivable, with no related allowance, average recorded investment | 1,313 | 134 | 50 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 42 | 6 | 1 |
Impaired financing receivable, with related allowance, average recorded investment | 15 | 74 | 92 |
Impaired financing receivable, with related allowance, interest income, accrual method | 1 | ||
Impaired financing receivable, average recorded investment | 1,328 | 208 | 142 |
Impaired financing receivable, interest income, accrual method | 42 | 6 | 2 |
Residential Real Estate Total | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 3,791 | 669 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 3,841 | 930 | |
Impaired financing receivable, with related allowance, recorded investment | 1,934 | 2,672 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 2,071 | 2,672 | |
Impaired financing receivable, related allowance | 387 | 623 | |
Impaired financing receivable, recorded investment | 5,725 | 3,341 | |
Impaired financing receivable, unpaid principal balance | 5,912 | 3,602 | |
Impaired financing receivable, with no related allowance, average recorded investment | 3,782 | 681 | 719 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 123 | 38 | 15 |
Impaired financing receivable, with related allowance, average recorded investment | 1,943 | 2,686 | 1,001 |
Impaired financing receivable, with related allowance, interest income, accrual method | 44 | 203 | 39 |
Impaired financing receivable, average recorded investment | 5,725 | 3,367 | 1,720 |
Impaired financing receivable, interest income, accrual method | 167 | 241 | 54 |
Consumer Other Financing Receivable | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 17 | 6 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 33 | 22 | |
Impaired financing receivable, with related allowance, recorded investment | 9 | 28 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 9 | 28 | |
Impaired financing receivable, related allowance | 1 | 2 | |
Impaired financing receivable, recorded investment | 26 | 34 | |
Impaired financing receivable, unpaid principal balance | 42 | 50 | |
Impaired financing receivable, with no related allowance, average recorded investment | 21 | 8 | 12 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 2 | ||
Impaired financing receivable, with related allowance, average recorded investment | 9 | 31 | 41 |
Impaired financing receivable, with related allowance, interest income, accrual method | 5 | 2 | |
Impaired financing receivable, average recorded investment | 30 | 39 | 53 |
Impaired financing receivable, interest income, accrual method | $ 2 | $ 5 | $ 2 |
Past Due Loan Aging (Details)
Past Due Loan Aging (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | $ 13,800 | $ 8,726 |
Loans current | 2,138,142 | 1,123,793 |
Total Loans Receivable | 2,151,942 | 1,132,519 |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 378 | 88 |
Loans current | 121,336 | 104,721 |
Total Loans Receivable | 121,714 | 104,809 |
Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 2,400 | 2,015 |
Loans current | 465,012 | 301,093 |
Total Loans Receivable | 467,412 | 303,108 |
Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 23 | 6 |
Loans current | 1,354 | 1,240 |
Total Loans Receivable | 1,377 | 1,246 |
Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 214 | 110 |
Loans current | 1,269 | 634 |
Total Loans Receivable | 1,483 | 744 |
Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 415 | 83 |
Loans current | 120,338 | 59,300 |
Total Loans Receivable | 120,753 | 59,383 |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 200 | 503 |
Loans current | 88,884 | 83,197 |
Total Loans Receivable | 89,084 | 83,700 |
Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 224 | |
Loans current | 121,539 | 54,886 |
Total Loans Receivable | 121,763 | 54,886 |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 3,580 | 1,425 |
Loans current | 656,761 | 227,127 |
Total Loans Receivable | 660,341 | 228,552 |
Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 4,419 | 2,011 |
Loans current | 987,522 | 424,510 |
Total Loans Receivable | 991,941 | 426,521 |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 5,676 | 4,085 |
Loans current | 422,557 | 215,229 |
Total Loans Receivable | 428,233 | 219,314 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 605 | 345 |
Loans current | 101,668 | 52,952 |
Total Loans Receivable | 102,273 | 53,297 |
Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 6,281 | 4,430 |
Loans current | 524,225 | 268,181 |
Total Loans Receivable | 530,506 | 272,611 |
Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 85 | 66 |
Loans current | 37,424 | 23,414 |
Total Loans Receivable | 37,509 | 23,480 |
Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 2,261 | |
Loans current | 23,331 | |
Total Loans Receivable | 25,592 | |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 5,393 | 3,354 |
Financing Receivables, 30 to 59 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 19 | 58 |
Financing Receivables, 30 to 59 Days Past Due | Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 1,046 | 897 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 2 | 3 |
Financing Receivables, 30 to 59 Days Past Due | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 175 | 104 |
Financing Receivables, 30 to 59 Days Past Due | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 120 | 503 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 1,190 | 168 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 1,310 | 671 |
Financing Receivables, 30 to 59 Days Past Due | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 2,611 | 1,481 |
Financing Receivables, 30 to 59 Days Past Due | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 168 | 105 |
Financing Receivables, 30 to 59 Days Past Due | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 2,779 | 1,586 |
Financing Receivables, 30 to 59 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 62 | 35 |
Financing Receivables, 30 to 59 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 473 | |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 3,098 | 1,332 |
Financing Receivables, 60 to 89 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 190 | 30 |
Financing Receivables, 60 to 89 Days Past Due | Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 710 | 603 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 17 | 3 |
Financing Receivables, 60 to 89 Days Past Due | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 8 | 2 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 754 | 57 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 754 | 57 |
Financing Receivables, 60 to 89 Days Past Due | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 1,293 | 581 |
Financing Receivables, 60 to 89 Days Past Due | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 120 | 48 |
Financing Receivables, 60 to 89 Days Past Due | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 1,413 | 629 |
Financing Receivables, 60 to 89 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 6 | 8 |
Financing Receivables, 60 to 89 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 799 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 5,309 | 4,040 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 169 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 644 | 515 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 4 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 31 | 4 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 415 | 83 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 80 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 224 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 1,636 | 1,200 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 2,355 | 1,283 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 1,772 | 2,023 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 317 | 192 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 2,089 | 2,215 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | 17 | $ 23 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due | $ 989 |
Nonaccrual and 90+ Days Past Du
Nonaccrual and 90+ Days Past Due and Still Accruing (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | $ 4,012 | $ 3,255 |
Loans past due 90 days or more and still accruing | 284 | 848 |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 172 | |
Commercial and Industrical Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 575 | 479 |
Loans past due 90 days or more and still accruing | 66 | |
Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 95 | 83 |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 20 | 24 |
Loans past due 90 days or more and still accruing | 80 | |
Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 224 | |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 1,452 | 1,200 |
Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 1,791 | 1,307 |
Loans past due 90 days or more and still accruing | 80 | |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 1,182 | 1,261 |
Loans past due 90 days or more and still accruing | 199 | 780 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 281 | 192 |
Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 1,463 | 1,453 |
Loans past due 90 days or more and still accruing | 199 | 780 |
Consumer Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 11 | 16 |
Loans past due 90 days or more and still accruing | $ 5 | $ 2 |
Loans Receivable and the Allo81
Loans Receivable and the Allowance for Loan Losses Accretable Yield for Loans Acquired and Accounted for Under ASC 310-30 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans and Leases Receivable Disclosure [Abstract] | ||
Balance at beginning of year | $ 0 | $ 0 |
Purchases | 1,882 | 0 |
Accretions | (666) | 0 |
Reclassifications from nonaccretable difference | 230 | 0 |
Balance at end of year | $ 1,446 | $ 0 |
Loans Textual References (Detai
Loans Textual References (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)quarters | Dec. 31, 2014USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Covered loans, contractual balance | $ 108.7 | |
Covered loans, net of discounts | $ 103 | |
Covered loans, FDIC coverage end date | Oct. 7, 2021 | |
Unpaid principal balance, loans pledged to the FHLB | $ 558.8 | $ 404.4 |
Allowance for Loan Losses, Unallocated Maximum Overage Percentage | 15.00% | |
Allowance for Loan Losses, Unallocated Maximum Shortage Percentage | 5.00% | |
Loans Reviewed Collectively for Impairment, Historical Loss Lookback, Number of Quarters | quarters | 20 | |
Special Mention Loans, Allowance for Loan Loss Pass Allocation Multiple | 2 | |
Substandard Loans, Allowance for Loan Loss Pass Allocation Multiple | 6 | |
Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Purchased credit-impaired loans, outstanding balance | $ 33 | |
Purchased credit-impaired loans, discount | $ 7.4 |
Loan Pool Participations Carryi
Loan Pool Participations Carrying Value Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loan Pool Participations [Abstract] | ||
Balance at beginning of year | $ 19,332 | $ 25,533 |
Principal payments and sale proceeds | 18,823 | 4,724 |
Net charge-offs | 509 | 1,477 |
Balance at end of year | 0 | 19,332 |
Loan pool participations, face value | $ 0 | $ 68,376 |
Loan Pool Participations Meetin
Loan Pool Participations Meeting Level-Yield Income Recognition Criteria (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Abstract] | |
Commercial | $ 477 |
Real estate loans: [Abstract] | |
One- to four- family residential real estate, | 201 |
Other commercial real estate | 1,930 |
Total real estate | 2,131 |
Total | 2,608 |
Allowance | (56) |
Carrying amount, net of allowance | $ 2,552 |
Loan Pool Participations Accret
Loan Pool Participations Accretable Yield Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loan Pool Participation, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 1,579 | $ 2,244 |
Additions | 0 | 0 |
Accretions | (1,579) | (665) |
Reclass to nonaccretable difference | 0 | 0 |
Balance at end of period | 0 | 1,579 |
Cash flows expected to be collected at acquisition | 0 | 7,913 |
Basis in acquired loans at acquisition | $ 0 | $ 4,482 |
Loan Pool Participations Textua
Loan Pool Participations Textual References (Details) $ in Millions | Dec. 31, 2014USD ($) |
Loan Pool Participations [Abstract] | |
Loan Pool Participations Not Subject to Accretable Yield, Face Value | $ 65 |
Loan Pool Participations Receivable Not Subject to Accretable Yield, Gross Amount | $ 18.9 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | $ 102,273 | $ 62,689 | |
Accumulated depreciation and amortization | 26,071 | 24,919 | |
Premises and equipment, net | 76,202 | 37,770 | |
Depreciation expense | 3,100 | 2,200 | $ 2,400 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | 13,270 | 4,836 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | 60,871 | 29,942 | |
Furniture and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | 17,160 | 13,206 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | $ 10,972 | $ 14,705 |
Goodwill and Intangible Asset88
Goodwill and Intangible Assets Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)count | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 01, 2015USD ($) | |
Goodwill [Line Items] | ||||
Number of operating segments | count | 3 | |||
Goodwill | $ 64,548 | $ 0 | ||
Central Bancshares, Inc. | ||||
Goodwill [Line Items] | ||||
Goodwill | 64,548 | $ 64,548 | ||
Goodwill acquired during the period | 64,500 | |||
Central Bank | ||||
Goodwill [Line Items] | ||||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset89
Goodwill and Intangible Assets Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Trade Names | MidWestOne Bank | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of indefinite-lived trade name intangible | $ 0 | $ 0 | $ 0 |
Schedule of Intangible Assets (
Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Balance, beginning of period | $ 8,259 | $ 8,806 | |||
Amortization expense | (3,271) | (547) | $ (663) | ||
Balance, end of period | 19,141 | 8,259 | 8,806 | ||
Gross carrying amount | $ 28,276 | $ 14,123 | |||
Accumulated amortization | (9,135) | (5,864) | |||
Net book value | 8,259 | 8,806 | 8,806 | 19,141 | 8,259 |
Insurance agency intangible | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Balance, beginning of period | 364 | 470 | |||
Amortization expense | (89) | (106) | |||
Balance, end of period | 275 | 364 | 470 | ||
Gross carrying amount | 1,320 | 1,320 | |||
Accumulated amortization | (1,045) | (956) | |||
Net book value | $ 364 | $ 470 | 470 | 275 | 364 |
Remaining weighted average useful life (years) | 7 years | 7 years | |||
Core Deposits | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Balance, beginning of period | $ 691 | $ 1,111 | |||
Amortization expense | (2,984) | (420) | |||
Balance, end of period | 10,480 | 691 | 1,111 | ||
Gross carrying amount | 18,206 | 5,433 | |||
Accumulated amortization | (7,726) | (4,742) | |||
Net book value | $ 691 | $ 1,111 | 1,111 | 10,480 | 691 |
Remaining weighted average useful life (years) | 6 years | 4 years | |||
Trade Names | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Balance, beginning of period | $ 0 | ||||
Amortization expense | (177) | ||||
Balance, end of period | 1,203 | $ 0 | |||
Gross carrying amount | 1,380 | ||||
Accumulated amortization | (177) | ||||
Net book value | $ 0 | 0 | 1,203 | 0 | |
Remaining weighted average useful life (years) | 9 years | ||||
Customer list intangible | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Balance, beginning of period | $ 164 | 185 | |||
Amortization expense | (21) | (21) | |||
Balance, end of period | 143 | 164 | 185 | ||
Gross carrying amount | 330 | 330 | |||
Accumulated amortization | (187) | (166) | |||
Net book value | $ 164 | $ 185 | 185 | 143 | 164 |
Remaining weighted average useful life (years) | 8 years | 9 years | |||
Trade Names | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Balance, beginning of period | $ 7,040 | $ 7,040 | |||
Balance, end of period | 7,040 | 7,040 | 7,040 | ||
Gross carrying amount | 7,040 | 7,040 | |||
Net book value | 7,040 | $ 7,040 | $ 7,040 | $ 7,040 | $ 7,040 |
Central Bancshares, Inc. | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Additions from business combinations | 14,153 | ||||
Central Bancshares, Inc. | Insurance agency intangible | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Additions from business combinations | 0 | ||||
Central Bancshares, Inc. | Core Deposits | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Additions from business combinations | 12,773 | ||||
Central Bancshares, Inc. | Trade Names | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Additions from business combinations | 1,380 | ||||
Central Bancshares, Inc. | Customer list intangible | |||||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | |||||
Additions from business combinations | $ 0 |
Schedule of Finite-Lived Intang
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Amortization expense, next twelve months | $ 3,969 |
Amortization expense, year two | 3,125 |
Amortization expense, year three | 2,281 |
Amortization expense, year four | 1,511 |
Amortization expense, year five | 782 |
Amortization expense, after year five | 433 |
Total | 12,101 |
Insurance agency intangible | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization expense, next twelve months | 72 |
Amortization expense, year two | 55 |
Amortization expense, year three | 38 |
Amortization expense, year four | 21 |
Amortization expense, year five | 20 |
Amortization expense, after year five | 69 |
Total | 275 |
Core Deposits | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization expense, next twelve months | 3,634 |
Amortization expense, year two | 2,835 |
Amortization expense, year three | 2,037 |
Amortization expense, year four | 1,312 |
Amortization expense, year five | 613 |
Amortization expense, after year five | 49 |
Total | 10,480 |
Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization expense, next twelve months | 243 |
Amortization expense, year two | 216 |
Amortization expense, year three | 188 |
Amortization expense, year four | 161 |
Amortization expense, year five | 133 |
Amortization expense, after year five | 262 |
Total | 1,203 |
Customer list intangible | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization expense, next twelve months | 20 |
Amortization expense, year two | 19 |
Amortization expense, year three | 18 |
Amortization expense, year four | 17 |
Amortization expense, year five | 16 |
Amortization expense, after year five | 53 |
Total | $ 143 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Assets [Abstract] | ||
Federal Home Loan Bank Stock | $ 9,832 | $ 8,582 |
FDIC Indemnification Asset | 4,274 | 0 |
Prepaid expenses | 2,271 | 1,350 |
Mortgage servicing rights | 2,249 | 2,308 |
Federal and state taxes, current | 1,079 | 0 |
Accounts receivable & other miscellaneous assets | 2,104 | 1,835 |
Total other assets | 21,809 | 14,075 |
Investment in Federal Home Loan Bank Stock | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other than Temporary Impairment Losses, Investments | $ 0 | $ 0 |
Loans Serviced for Others (Deta
Loans Serviced for Others (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Managed Servicing Portfolio [Abstract] | ||
Loans serviced for others | $ 362.3 | $ 370 |
Time Deposits, Fiscal Year Matu
Time Deposits, Fiscal Year Maturity (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2,016 | $ 391,097 |
2,017 | 182,029 |
2,018 | 35,407 |
2,019 | 22,935 |
2,020 | 18,621 |
Thereafter | 7 |
Time Deposits | $ 650,096 |
Time Deposits Time Deposit Text
Time Deposits Time Deposit Textual References (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Time Deposits [Abstract] | ||
Time deposits, $250,000 or more | $ 162.5 | $ 150.2 |
Domestic time deposit, brokered | $ 2.9 | $ 6.1 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | ||
Short-term debt, weighted average interest rate | 0.31% | 0.28% |
Short-term debt | $ 68,963 | $ 78,229 |
Available-for-sale securities pledged as collateral | 321,600 | 200,700 |
Federal Reserve Bank Advances | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | 0 |
Line of credit facility, maximum borrowing capacity | 11,800 | $ 11,822 |
Available-for-sale securities pledged as collateral | $ 13,100 | |
Federal Funds Purchased | ||
Short-term Debt [Line Items] | ||
Short-term debt, weighted average interest rate | 0.34% | 0.52% |
Short-term debt | $ 1,500 | $ 17,408 |
Securities Sold under Agreements to Repurchase | ||
Short-term Debt [Line Items] | ||
Short-term debt, weighted average interest rate | 0.31% | 0.21% |
Short-term debt | $ 67,463 | $ 60,821 |
Line of Credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | |
Line of credit facility, maximum borrowing capacity | $ 5,000 | |
Debt instrument, issuance date | Apr. 30, 2015 | |
Debt instrument, maturity date | Apr. 28, 2016 | |
London Interbank Offered Rate (LIBOR) | Line of Credit | ||
Short-term Debt [Line Items] | ||
Description of variable rate basis | one-month LIBOR | |
Basis spread on variable rate | 2.00% |
Subordinated Notes Payable (Det
Subordinated Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | May. 01, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | ||||
Junior subordinated notes issued to capital trusts | $ 23,587 | $ 15,464 | ||
Junior Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | 24,743 | |||
Junior subordinated notes issued to capital trusts | 23,587 | |||
Junior Subordinated Debt [Member] | CBI Capital Trust II | ||||
Debt Instrument [Line Items] | ||||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1],[2] | 7,217 | ||
Junior subordinated notes issued to capital trusts | [1],[2] | $ 6,552 | ||
Interest rate | [1],[2] | 4.01% | ||
Debt instrument, maturity date | [1],[2] | Mar. 15, 2038 | ||
Debt instrument, earliest call date | [1],[2] | Mar. 15, 2013 | ||
Junior Subordinated Debt [Member] | CBI Capital Trust II | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | [1],[2] | Three-month LIBOR | ||
Basis spread on variable rate | [1],[2] | 3.50% | ||
Junior Subordinated Debt [Member] | Barron Investment Capital Trust 1 | ||||
Debt Instrument [Line Items] | ||||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1],[2] | $ 2,062 | ||
Junior subordinated notes issued to capital trusts | [1],[2] | $ 1,571 | ||
Interest rate | [1],[2] | 2.74% | ||
Debt instrument, maturity date | [1],[2] | Sep. 23, 2036 | ||
Debt instrument, earliest call date | [1],[2] | Sep. 23, 2011 | ||
Junior Subordinated Debt [Member] | Barron Investment Capital Trust 1 | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | [1],[2] | Three-month LIBOR | ||
Basis spread on variable rate | [1],[2] | 2.15% | ||
Junior Subordinated Debt [Member] | MidWestOne Statutory Trust II | ||||
Debt Instrument [Line Items] | ||||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1] | $ 15,464 | 15,464 | |
Junior subordinated notes issued to capital trusts | [1] | $ 15,464 | $ 15,464 | |
Interest rate | [1] | 2.10% | 1.83% | |
Debt instrument, maturity date | [1] | Dec. 15, 2037 | ||
Debt instrument, earliest call date | [1] | Dec. 15, 2012 | ||
Junior Subordinated Debt [Member] | MidWestOne Statutory Trust II | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Description of variable rate basis | [1] | Three-month LIBOR | ||
Basis spread on variable rate | [1] | 1.59% | ||
Subordinated Debt [Member] | 1907 EJF Fund, LTD | ||||
Debt Instrument [Line Items] | ||||
Redemption date of subordinated note | Jun. 23, 2015 | |||
Central Bancshares, Inc. | ||||
Debt Instrument [Line Items] | ||||
Subordinated note assumed in merger | $ 12,669 | $ 12,669 | ||
Central Bancshares, Inc. | Subordinated Debt [Member] | 1907 EJF Fund, LTD | ||||
Debt Instrument [Line Items] | ||||
Subordinated note assumed in merger | $ 12,300 | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Junior subordinated debenture owed to unconsolidated subsidiary, deferral period | 5 years | |||
[1] | (1) All distributions are cumulative and paid in cash quarterly. | |||
[2] | (2) Central Bancshares Capital Trust II and Barron Investment Capital Trust I were established by Central prior to the Company’s merger with Central, and the junior subordinated notes issued by Central were assumed by the Company. |
Long-Term Borrowings (Details)
Long-Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Long-term debt, excluding subordinated debt | $ 109,500 | $ 93,000 | ||
Long-term debt, excluding subordinated debt, weighted average interest rate | 1.75% | 1.88% | ||
Federal Home Loan Bank Advances | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 87,000 | $ 93,000 | ||
Long-term debt, weighted average interest rate | 1.64% | 1.88% | ||
Federal Home Loan, Bank advances general debt obligations, disclosures maximum borrowing capacity as percentage of total assets | 35.00% | |||
Notes Payable to Banks | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 22,500 | $ 0 | ||
Long-term debt, weighted average interest rate | 2.17% | 0.00% | ||
Debt instrument, issuance date | Apr. 30, 2015 | |||
Debt instrument, face amount | $ 35,000 | |||
Long-term debt, amount advanced | $ 25,000 | |||
Debt instrument, maturity date | Jun. 30, 2020 | |||
Debt instrument, frequency of periodic payment | quarterly | |||
Debt instrument, date of first required payment | Sep. 30, 2015 |
Long-Term Borrowings Federal Ho
Long-Term Borrowings Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Due in next twelve months | $ 22,000 | $ 20,000 |
Due in year two | 10,000 | 17,000 |
Due in year three | 19,000 | 10,000 |
Due in year four | 17,000 | 17,000 |
Due in year five | 12,000 | 17,000 |
Due after year five | 7,000 | 12,000 |
Total Federal Home Loan Bank borrowings | $ 87,000 | $ 93,000 |
Minimum | ||
Debt Instrument [Line Items] | ||
Average interest rate of amounts due within one year | 0.50% | 2.06% |
Average interest rate, due in one to two years | 1.09% | 1.13% |
Average interest rate, due in two to three years | 1.30% | 1.09% |
Average interest rate, due in three to four years | 1.42% | 1.30% |
Average interest rate, due in four to five years | 1.52% | 1.42% |
Average interest rate, due after five years | 1.93% | 1.52% |
Maximum | ||
Debt Instrument [Line Items] | ||
Average interest rate of amounts due within one year | 2.46% | 3.00% |
Average interest rate, due in one to two years | 2.78% | 2.46% |
Average interest rate, due in two to three years | 1.83% | 2.78% |
Average interest rate, due in three to four years | 1.85% | 1.83% |
Average interest rate, due in four to five years | 2.25% | 1.85% |
Average interest rate, due after five years | 1.93% | 2.25% |
Income Tax Components (Details)
Income Tax Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Current Federal tax expense | $ 6,147 | $ 3,573 | $ 6,841 | ||||||||
Current State tax expense | 372 | 956 | 1,259 | ||||||||
Deferred income tax expense (benefit) | 1,300 | 2,502 | (1,454) | ||||||||
Total income tax provision | $ 1,429 | $ 2,121 | $ 2,594 | $ 1,675 | $ 1,668 | $ 1,715 | $ 1,719 | $ 1,929 | $ 7,819 | $ 7,031 | $ 6,646 |
Income Tax Reconciliation (Deta
Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Expected provision, amount | $ 11,528 | $ 8,943 | $ 8,839 | ||||||||
Tax-exempt interest, amount | (2,817) | (2,520) | (2,345) | ||||||||
Bank-owned life insurance, amount | (438) | (385) | (322) | ||||||||
State income taxes, net of federal income tax benefit, amount | 333 | 798 | 776 | ||||||||
Non-deductible acquisition expenses | 691 | 261 | 0 | ||||||||
General business credits | (1,225) | 0 | 0 | ||||||||
Other, amount | (253) | (66) | (302) | ||||||||
Total income tax provision | $ 1,429 | $ 2,121 | $ 2,594 | $ 1,675 | $ 1,668 | $ 1,715 | $ 1,719 | $ 1,929 | $ 7,819 | $ 7,031 | $ 6,646 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
Expected provision, percent | 35.00% | 35.00% | 35.00% | ||||||||
Tax-exempt interest, percent | (8.60%) | (9.90%) | (9.30%) | ||||||||
Bank-owned life insurance, percent | (1.30%) | (1.50%) | (1.30%) | ||||||||
State income taxes, net of federal income tax benefit, percent | 1.00% | 3.10% | 3.10% | ||||||||
Non-deductible acquisition expenses, percent | 2.10% | 1.00% | 0.00% | ||||||||
General business credits | (3.70%) | (0.00%) | (0.00%) | ||||||||
Other, percent | (0.80%) | (0.30%) | (1.20%) | ||||||||
Effective income tax rate reconciliation, percent | 23.70% | 27.40% | 26.30% |
Deferred Tax Assets and Liabili
Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets, Gross [Abstract] | ||
Allowance for loan losses | $ 7,449 | $ 7,981 |
Deferred compensation | 1,909 | 1,022 |
Net operating losses (state net operating loss carryforwards) | 3,560 | 3,266 |
Impairment losses on securities | 0 | 53 |
Other real estate owned | 146 | 568 |
Other | 1,934 | 1,278 |
Gross deferred tax assets | 14,998 | 14,168 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Premises and equipment depreciation and amortization | 3,658 | 1,992 |
Federal Home Loan Bank stock | 133 | 132 |
Purchase accounting adjustments | 2,717 | 684 |
Mortgage servicing rights | 853 | 875 |
Prepaid expenses | 194 | 213 |
Unrealized gains on investment securities | 2,091 | 3,234 |
Deferred loan fees | 261 | 249 |
Other | 584 | 253 |
Gross deferred tax liabilities | 10,491 | 7,632 |
Net deferred income tax asset | 4,507 | 6,536 |
Valuation allowance | 3,560 | 3,458 |
Net deferred tax asset | $ 947 | $ 3,078 |
Income Taxes Textual References
Income Taxes Textual References (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||
Unrecognized Tax Benefits | $ 0 | $ 0 |
Earliest Tax Year | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2018 | |
Latest Tax Year | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2036 | |
Iowa | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 44,500 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefit Plans [Abstract] | |||
Defined contribution plan, cost recognized | $ 1.2 | $ 0.7 | $ 0.6 |
Employee stock ownership plan (ESOP), compensation expense | 1 | 0.5 | 0.6 |
Salary continuation plan cost recognized | 0.4 | 0.3 | 0.4 |
Cash surrender value of life insurance, salary continuation plans | $ 14.7 | $ 14.3 | $ 13.9 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares authorized | 750,000 | ||
Share-based compensation, number of shares available for grant | 460,757 | 492,878 | |
Share-based compensation expense | $ 634,000 | $ 493,000 | $ 384,000 |
Share based compensation arrangement by share based payment award, number of shares per unit | 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic Value Cash Received and Tax Benefits Realized [Abstract] | |||
Share-based compensation, options exercises in period, total intrinsic value | $ 119,000 | 109,000 | 362,000 |
Share-based compensation, cash received from exercise of stock options | 129,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Share-based compensation, nonvested stock options, compensation cost not yet recognized | 0 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 634,000 | 493,000 | 380,000 |
Share based compensation arrangement by share based payment award, award vesting rights percentage death disability or change in control | 100.00% | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract] | |||
Share-based compensation, nonvested awards, period for recognition of unrecognized compensation cost | 2 years 6 months | ||
Share-based compensation, nonvested awards other than options, compensation cost not yet recognized | $ 1,075,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options Grant Date Fair Value [Abstract] | |||
Share-based compensation, other than options, fair value of equity instruments vested in period | 703,000 | 792,000 | 533,000 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 | $ 0 | $ 4,000 |
Share-based compensation, award vesting period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Intrinsic Value Cash Received and Tax Benefits Realized [Abstract] | |||
Share-based compensation, tax benefit from compensation expense | $ 7,000 | ||
2008 Equity Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at December 31, 2014 | 50,806 | ||
Granted | 34,100 | ||
Vested | (23,123) | ||
Forfeited | (925) | ||
Nonvested at December 31, 2015 | 60,858 | 50,806 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested at December 31, 2014 | $ 22.17 | ||
Granted | 29.08 | ||
Vested | 21.01 | ||
Forfeited | 23.74 | ||
Nonvested at December 31, 2015 | $ 26.46 | $ 22.17 | |
2008 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation arrangement by share based payment award, award vesting percentage per year | 25.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at December 31, 2014 | 30,861 | ||
Granted | 0 | 0 | 0 |
Exercised | (8,414) | ||
Forfeited | 0 | ||
Expired | (147) | ||
Outstanding at December 31, 2015 | 22,300 | 30,861 | |
Exercisable at December 31, 2015 | 22,300 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at December 31, 2014 | $ 14.08 | ||
Granted | 0 | ||
Exercised | 15.52 | ||
Forfeited | 0 | ||
Expired | 18.49 | ||
Outstanding at December 31, 2015 | 13.51 | $ 14.08 | |
Exercisable at December 31, 2015 | $ 13.51 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Share-based compensation, options outstanding weighted average remaining contractual term | 2 years 5 months 1 day | ||
Share-based compensation, options, exercisable weighted average remaining contractual term | 2 years 5 months 1 day | ||
Share-based compensation, options outstanding intrinsic value | $ 377,000 | ||
Share-based compensation options exercisable intrinsic value | $ 377,000 | ||
Management | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting period | 4 years | ||
Management | 2008 Equity Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation arrangement by share based payment award, award vesting percentage per year | 25.00% | ||
Before May 15, 2013 | Director | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting period | 4 years | ||
May 15, 2013 or After | Director | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting period | 1 year | ||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 100.00% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 8,238 | $ 7,615 | $ 4,469 | $ 4,796 | $ 3,907 | $ 4,889 | $ 4,753 | $ 4,973 | $ 25,118 | $ 18,522 | $ 18,607 |
Weighted average shares outstanding | 10,362,929 | 8,405,284 | 8,477,904 | ||||||||
Basic earnings per common share | $ 0.72 | $ 0.67 | $ 0.43 | $ 0.57 | $ 0.46 | $ 0.59 | $ 0.56 | $ 0.59 | $ 2.42 | $ 2.20 | $ 2.19 |
Weighted average shares outstanding, included all dilutive potential shares | 10,391,323 | 8,433,296 | 8,525,119 | ||||||||
Diluted earnings per common share | $ 0.72 | $ 0.67 | $ 0.42 | $ 0.57 | $ 0.46 | $ 0.59 | $ 0.56 | $ 0.58 | $ 2.42 | $ 2.19 | $ 2.18 |
Regulatory Capital Requireme107
Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | $ 263,717 | $ 212,559 |
Tier one risk based capital | 244,154 | 194,362 |
Common equity tier one capital | 220,567 | |
Tier one leverage capital | $ 244,154 | $ 194,362 |
Total capital to risk weighted assets | 11.48% | 14.73% |
Tier one risk based capital to risk weighted assets | 10.63% | 13.47% |
Common equity tier one capital to risk weighted assets | 9.60% | |
Tier one leverage capital to average assets | 8.34% | 10.85% |
Capital required for capital adequacy purposes | $ 183,718 | $ 115,407 |
Tier one risk based capital required for capital adequacy purposes | 137,789 | 57,703 |
Common equity tier one capital required for capital adequacy purposes | 103,342 | |
Tier one capital required for capital adequacy purposes | $ 117,123 | $ 71,647 |
Capital required for capital adequacy purposes to risk weighted assets | 8.00% | 8.00% |
Tier one risk based capital required for capital adequacy purposes to risk weighted assets | 6.00% | 4.00% |
Common equity tier one capital required for capital adequacy purposes to risk weighted assets | 4.50% | |
Tier one leverage capital required for capital adequacy purposes to average assets | 4.00% | 4.00% |
Policy guideline, minimum tier one capital to total assets | 8.00% | |
Policy guideline, minimum capital to risk weighted assets | 10.00% | |
Required cash reserve | $ 2,000 | $ 1,800 |
MidWestOne Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | 171,583 | 197,018 |
Tier one risk based capital | 154,726 | 179,098 |
Common equity tier one capital | 154,726 | |
Tier one leverage capital | $ 154,726 | $ 179,098 |
Total capital to risk weighted assets | 12.53% | 13.75% |
Tier one risk based capital to risk weighted assets | 11.30% | 12.50% |
Common equity tier one capital to risk weighted assets | 11.30% | |
Tier one leverage capital to average assets | 8.90% | 10.05% |
Capital required for capital adequacy purposes | $ 109,578 | $ 114,624 |
Tier one risk based capital required for capital adequacy purposes | 82,183 | 57,312 |
Common equity tier one capital required for capital adequacy purposes | 61,638 | |
Tier one capital required for capital adequacy purposes | $ 69,501 | $ 71,249 |
Capital required for capital adequacy purposes to risk weighted assets | 8.00% | 8.00% |
Tier one risk based capital required for capital adequacy purposes to risk weighted assets | 6.00% | 4.00% |
Common equity tier one capital required for capital adequacy purposes to risk weighted assets | 4.50% | |
Tier one leverage capital required for capital adequacy purposes to average assets | 4.00% | 4.00% |
Capital required to be well capitalized | $ 136,972 | $ 143,280 |
Tier one risk based capital required to be well capitalized | 109,578 | 85,968 |
Common equity tier one risk based capital required to be well capitalized | 89,032 | |
Tier one leverage capital required to be well capitalized | $ 86,876 | $ 89,061 |
Capital required to be well capitalized to risk weighted assets | 10.00% | 10.00% |
Tier one risk based capital required to be well capitalized to risk weighted assets | 8.00% | 6.00% |
Common equity tier one risk based capital required to be well capitalized to Rrsk weighted assets | 6.50% | |
Tier one leverage capital required to be well capitalized to average assets | 5.00% | 5.00% |
Central Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | $ 102,718 | |
Tier one risk based capital | 100,017 | |
Common equity tier one capital | 100,017 | |
Tier one leverage capital | $ 100,017 | |
Total capital to risk weighted assets | 11.14% | |
Tier one risk based capital to risk weighted assets | 10.84% | |
Common equity tier one capital to risk weighted assets | 10.84% | |
Tier one leverage capital to average assets | 8.44% | |
Capital required for capital adequacy purposes | $ 73,792 | |
Tier one risk based capital required for capital adequacy purposes | 55,344 | |
Common equity tier one capital required for capital adequacy purposes | 41,508 | |
Tier one capital required for capital adequacy purposes | $ 47,412 | |
Capital required for capital adequacy purposes to risk weighted assets | 8.00% | |
Tier one risk based capital required for capital adequacy purposes to risk weighted assets | 6.00% | |
Common equity tier one capital required for capital adequacy purposes to risk weighted assets | 4.50% | |
Tier one leverage capital required for capital adequacy purposes to average assets | 4.00% | |
Capital required to be well capitalized | $ 92,240 | |
Tier one risk based capital required to be well capitalized | 73,792 | |
Common equity tier one risk based capital required to be well capitalized | 59,956 | |
Tier one leverage capital required to be well capitalized | $ 59,265 | |
Capital required to be well capitalized to risk weighted assets | 10.00% | |
Tier one risk based capital required to be well capitalized to risk weighted assets | 8.00% | |
Common equity tier one risk based capital required to be well capitalized to Rrsk weighted assets | 6.50% | |
Tier one leverage capital required to be well capitalized to average assets | 5.00% |
Commitments and Contingencie108
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Commitments [Line Items] | ||
Other commitment | $ 437,260 | $ 271,041 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Loss contingency accrual | 100 | 200 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Other commitment | 417,927 | 267,036 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Other commitment | 16,146 | 3,204 |
Commitments to sell loans | ||
Other Commitments [Line Items] | ||
Other commitment | $ 3,187 | $ 801 |
Commitments and Contingencies B
Commitments and Contingencies Building Commitments (Details) - Building commitment $ in Millions | Dec. 31, 2015USD ($) |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitment, original amount committed | $ 29.8 |
Purchase commitment, remaining minimum amount committed | $ 3.1 |
Commitments and Contingencies T
Commitments and Contingencies Textual References (Details) - Credit Concentration Risk $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Loans Concentration | Agricultural Related Loan Financing Receivable | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.00% |
Loans Concentration | Commercial Real Estate Portfolio Segment | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 71.00% |
Investment Securities | State and political subdivisions | |
Concentration Risk [Line Items] | |
Concentration risk, credit risk, financial instrument, maximum exposure | $ 5 |
Investment Securities | IOWA | State and political subdivisions | |
Concentration Risk [Line Items] | |
Concentration risk, credit risk, financial instrument, maximum exposure | 135.9 |
Investment Securities | MINNESOTA | State and political subdivisions | |
Concentration Risk [Line Items] | |
Concentration risk, credit risk, financial instrument, maximum exposure | $ 53.4 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning | $ 11,655 | $ 22,392 |
Net decrease due to change in related parties | (284) | (10,275) |
Advances | 3,919 | 2,420 |
Collections | (5,043) | (2,882) |
Balance, ending | $ 10,247 | $ 11,655 |
Related Party Transactions Text
Related Party Transactions Textual References (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Related party deposit liabilities | $ 8,500,000 | $ 6,500,000 |
Director | Purchase of Architectural Services | ||
Related Party Transaction [Line Items] | ||
Amount of related party transaction | $ 254,000 | $ 315,000 |
Fair Value Financial Assets and
Fair Value Financial Assets and Liabilities Measured on a Recurring Basis (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)count | Dec. 31, 2014USD ($) | Dec. 31, 2013count | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | $ 427,241 | $ 474,942 | |
Level 1 to Level 2 transfers of assets, fair value, amount | 0 | 0 | |
Level 2 to Level 1 transfers of assets, fair value, amount | 0 | 0 | |
Transfer of assets, fair value, to (from) Level 3, amount | $ 0 | 0 | |
Changes in fair value measurements valuation techniques | 0 | ||
Investment in collateralized debt obligations, number of securities | count | 5 | ||
Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | $ 1,262 | 3,032 | |
Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 425,979 | 471,910 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 427,241 | 474,942 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 1,262 | 3,032 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | $ 425,979 | 471,910 | |
Debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Sample size used to validate pricing service results | count | 30 | ||
Available for sale | $ 425,979 | 471,910 | |
Debt securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 425,979 | 471,910 | |
Debt securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 425,979 | 471,910 | |
US Treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 6,910 | ||
US Treasury securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 6,910 | ||
US Treasury securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 6,910 | ||
U.S. Government agencies and corporations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 26,653 | 49,375 | |
U.S. Government agencies and corporations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 26,653 | 49,375 | |
U.S. Government agencies and corporations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 26,653 | 49,375 | |
State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 183,384 | 195,199 | |
State and political subdivisions | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 183,384 | 195,199 | |
State and political subdivisions | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 183,384 | 195,199 | |
Mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 57,062 | 32,463 | |
Mortgage-backed securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 57,062 | 32,463 | |
Mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 57,062 | 32,463 | |
Collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 106,404 | 146,132 | |
Collateralized mortgage obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 106,404 | 146,132 | |
Collateralized mortgage obligations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 106,404 | 146,132 | |
Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 45,566 | 48,741 | |
Corporate debt securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 45,566 | 48,741 | |
Corporate debt securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 45,566 | 48,741 | |
Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 1,262 | 3,032 | |
Equity securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | 1,262 | 3,032 | |
Equity securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale | $ 1,262 | $ 3,032 |
Fair Value, Assets Measured on
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation by Asset Class (Details) - Collateralized debt obligations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 0 | $ 1,317 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains (losses): | ||
Included in earnings | 0 | 782 |
Included in other comprehensive income | 0 | 794 |
Purchases, issuances, sales, and settlements: | ||
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 2,893 |
Settlements | 0 | 0 |
Ending Balance | $ 0 | $ 0 |
Fair Value Assets and Liabiliti
Fair Value Assets and Liabilities Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 8,834 | $ 1,916 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 23,812 | 3,412 |
Other real estate owned | 8,834 | 1,916 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 23,812 | 3,412 |
Other real estate owned | $ 8,834 | $ 1,916 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investment securities: | ||
Available for sale | $ 427,241 | $ 474,942 |
Held to maturity | 118,423 | 51,524 |
Held to maturity, estimated fair value | 118,234 | 51,253 |
Loan pool participations, net | 0 | 19,332 |
Accrued interest receivable | 13,736 | 10,898 |
Federal Home Loan Bank Stock | 9,832 | 8,582 |
Deposits: | ||
Non-interest-bearing demand | 559,586 | 214,461 |
Interest-bearing checking | 1,064,350 | 618,540 |
Savings | 189,489 | 102,527 |
Accrued interest payable | $ 1,507 | 863 |
Federal Home Loan Bank stock, redemption price, per share | $ 100 | |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | $ 47,097 | 23,409 |
Investment securities: | ||
Available for sale | 427,241 | 474,942 |
Held to maturity | 118,423 | 51,524 |
Total investment securities | 545,664 | 526,466 |
Loans held for sale | 3,187 | 801 |
Loans, net | 2,132,515 | 1,116,156 |
Loan pool participations, net | 19,332 | |
Accrued interest receivable | 13,736 | 10,898 |
Deposits: | ||
Non-interest-bearing demand | 559,586 | 214,461 |
Interest-bearing checking | 1,064,350 | 618,540 |
Savings | 189,489 | 102,527 |
Certificates of deposit under $100,000 | 348,268 | 235,395 |
Certificates of deposit $100,000 and over | 301,828 | 237,619 |
Total deposits | 2,463,521 | 1,408,542 |
Federal funds purchased and securities sold under agreements to repurchase | 68,963 | 78,229 |
Federal Home Loan Bank borrowings | 87,000 | 93,000 |
Junior subordinated notes issued to capital trusts | 23,587 | 15,464 |
Long-term debt | 22,500 | 0 |
Accrued interest payable | 1,507 | 863 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 47,097 | 23,409 |
Investment securities: | ||
Available for sale | 427,241 | 474,942 |
Held to maturity, estimated fair value | 118,234 | 51,253 |
Total investment securities | 545,475 | 526,195 |
Loans held for sale | 3,262 | 812 |
Loans, net | 2,132,009 | 1,116,285 |
Loan pool participations, net | 19,332 | |
Accrued interest receivable | 13,736 | 10,898 |
Federal Home Loan Bank Stock | 9,832 | 8,582 |
Deposits: | ||
Non-interest-bearing demand | 559,586 | 214,461 |
Interest-bearing checking | 1,064,350 | 618,540 |
Savings | 189,489 | 102,527 |
Certificates of deposit under $100,000 | 346,875 | 235,401 |
Certificates of deposit $100,000 and over | 301,521 | 238,480 |
Total deposits | 2,461,821 | 1,409,409 |
Federal funds purchased and securities sold under agreements to repurchase | 68,963 | 78,229 |
Federal Home Loan Bank borrowings | 86,817 | 93,051 |
Junior subordinated notes issued to capital trusts | 18,611 | 10,021 |
Long-term debt | 22,500 | 0 |
Accrued interest payable | 1,507 | 863 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 47,097 | 23,409 |
Investment securities: | ||
Available for sale | 1,262 | 3,032 |
Total investment securities | 1,262 | 3,032 |
Accrued interest receivable | 13,736 | 10,898 |
Deposits: | ||
Non-interest-bearing demand | 559,586 | 214,461 |
Interest-bearing checking | 1,064,350 | 618,540 |
Savings | 189,489 | 102,527 |
Total deposits | 1,813,425 | 935,528 |
Federal funds purchased and securities sold under agreements to repurchase | 68,963 | 78,229 |
Accrued interest payable | 1,507 | 863 |
Fair Value, Inputs, Level 2 | ||
Investment securities: | ||
Available for sale | 425,979 | 471,910 |
Held to maturity, estimated fair value | 118,234 | 51,253 |
Total investment securities | 544,213 | 523,163 |
Loans, net | 2,132,009 | 1,116,285 |
Federal Home Loan Bank Stock | 9,832 | 8,582 |
Deposits: | ||
Certificates of deposit under $100,000 | 346,875 | 235,401 |
Certificates of deposit $100,000 and over | 301,521 | 238,480 |
Total deposits | 648,396 | 473,881 |
Federal Home Loan Bank borrowings | 86,817 | 93,051 |
Junior subordinated notes issued to capital trusts | 18,611 | 10,021 |
Long-term debt | 22,500 | |
Fair Value, Inputs, Level 3 | ||
Investment securities: | ||
Loans held for sale | $ 3,262 | 812 |
Loans, net | ||
Loan pool participations, net | $ 19,332 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net interest income | $ 26,328 | $ 26,759 | $ 22,723 | $ 14,242 | $ 13,904 | $ 13,567 | $ 13,855 | $ 13,527 | $ 90,052 | $ 54,853 | $ 53,962 | |||||
Provision for loan losses | 1,490 | 2,141 | 901 | 600 | 300 | 150 | 300 | 450 | 5,132 | 1,200 | 1,350 | |||||
Noninterest income | 6,638 | 5,460 | 5,087 | 4,008 | 3,534 | 4,006 | 3,556 | 4,217 | 21,193 | 15,313 | 14,728 | |||||
Operating expenses | 21,809 | [1] | 20,342 | [1] | 19,846 | [1] | 11,179 | [1] | 11,563 | 10,819 | 10,639 | 10,392 | 73,176 | [2] | 43,413 | 42,087 |
Income tax expense (benefit) | 1,429 | 2,121 | 2,594 | 1,675 | 1,668 | 1,715 | 1,719 | 1,929 | 7,819 | 7,031 | 6,646 | |||||
Net Income (Loss) Attributable to Parent | 8,238 | $ 7,615 | $ 4,469 | $ 4,796 | 3,907 | $ 4,889 | $ 4,753 | $ 4,973 | 25,118 | 18,522 | 18,607 | |||||
Goodwill | 64,548 | 0 | 64,548 | 0 | ||||||||||||
Assets | 2,979,975 | 1,800,302 | 2,979,975 | 1,800,302 | 1,755,218 | |||||||||||
Commercial Banking | MidWestOne Bank | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net interest income | 55,414 | 55,377 | 55,159 | |||||||||||||
Provision for loan losses | 1,950 | 1,200 | 1,350 | |||||||||||||
Noninterest income | 14,625 | 14,016 | 13,436 | |||||||||||||
Operating expenses | 40,153 | [2] | 39,855 | 39,827 | ||||||||||||
Income tax expense (benefit) | 5,161 | 7,806 | 7,514 | |||||||||||||
Net Income (Loss) Attributable to Parent | 22,775 | 20,532 | 19,904 | |||||||||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | |||||||||||
Commercial Banking | Central Bank | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net interest income | 35,801 | 0 | 0 | |||||||||||||
Provision for loan losses | 3,182 | 0 | 0 | |||||||||||||
Noninterest income | 5,457 | 0 | 0 | |||||||||||||
Operating expenses | 26,555 | 0 | 0 | |||||||||||||
Income tax expense (benefit) | 4,562 | 0 | 0 | |||||||||||||
Net Income (Loss) Attributable to Parent | 6,959 | 0 | 0 | |||||||||||||
Goodwill | 64,548 | 0 | 64,548 | 0 | 0 | |||||||||||
Corporate and Other | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net interest income | (1,163) | (524) | (1,197) | |||||||||||||
Noninterest income | 1,111 | 1,297 | 1,292 | |||||||||||||
Operating expenses | 6,468 | 3,558 | 2,260 | |||||||||||||
Income tax expense (benefit) | (1,904) | (775) | (868) | |||||||||||||
Net Income (Loss) Attributable to Parent | (4,616) | (2,010) | (1,297) | |||||||||||||
Operating Segments | Commercial Banking | MidWestOne Bank | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Assets | 1,720,819 | 1,793,428 | 1,720,819 | 1,793,428 | 1,744,408 | |||||||||||
Operating Segments | Commercial Banking | Central Bank | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Assets | 1,267,387 | 0 | 1,267,387 | 0 | 0 | |||||||||||
Operating Segments | Corporate and Other | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Assets | 343,523 | 210,544 | 343,523 | 210,544 | 195,172 | |||||||||||
Intersegment Eliminations | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Assets | $ (351,754) | $ (203,670) | $ (351,754) | $ (203,670) | $ (184,362) | |||||||||||
[1] | (1) Certain amounts in the prior periods have been reclassified to conform to the current year presentation, with no effect on net income. | |||||||||||||||
[2] | (1) Includes merger-related expenses of $3.5 million and $1.1 million for the year ended December 31, 2015 and December 31, 2014, respectively, included in the All Other segment. |
Branch Sales (Details)
Branch Sales (Details) - MidWestOne Bank - Ottumwa Iowa Branch - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal group, deposits | $ 33 |
Disposal group, loans | 17 |
Other Service Charges, Commissions and Fees | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal group, gain on disposal | $ 0.7 |
Parent Company Only Balance She
Parent Company Only Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Available for sale | $ 427,241 | $ 474,942 | ||
Held to maturity | 118,423 | 51,524 | ||
Loan pool participations, net | 0 | 19,332 | ||
Income tax receivable | 1,079 | 0 | ||
Deferred income taxes | 947 | 3,078 | ||
Other assets | 21,809 | 14,075 | ||
Total assets | 2,979,975 | 1,800,302 | $ 1,755,218 | |
Liabilities: | ||||
Junior subordinated notes issued to capital trusts | 23,587 | 15,464 | ||
Long-term debt | 22,500 | 0 | ||
Other liabilities | 11,587 | 8,080 | ||
Total liabilities | 2,683,797 | 1,607,571 | ||
Shareholders’ equity: | ||||
Capital stock, preferred | 0 | 0 | ||
Capital stock, common | 11,713 | 8,690 | ||
Additional paid-in capital | 163,487 | 80,537 | ||
Treasury stock | (6,331) | (6,945) | ||
Retained earnings | 123,901 | 105,127 | ||
Accumulated other comprehensive income | 3,408 | 5,322 | ||
Total shareholders’ equity | 296,178 | 192,731 | 178,016 | $ 173,932 |
Total liabilities and shareholders’ equity | 2,979,975 | 1,800,302 | ||
Parent Company | ||||
Assets: | ||||
Cash | 4,489 | 5,942 | $ 5,781 | $ 5,777 |
Investment in subsidiaries | 331,612 | 193,600 | ||
Available for sale | 300 | 1,602 | ||
Held to maturity | 743 | 464 | ||
Loan pool participations, net | 0 | 1,964 | ||
Income tax receivable | 571 | 0 | ||
Deferred income taxes | 0 | 425 | ||
Other assets | 4,976 | 5,010 | ||
Total assets | 342,691 | 209,007 | ||
Liabilities: | ||||
Junior subordinated notes issued to capital trusts | 23,587 | 15,464 | ||
Long-term debt | 22,500 | |||
Deferred income taxes | 113 | |||
Other liabilities | 313 | 812 | ||
Total liabilities | 46,513 | 16,276 | ||
Shareholders’ equity: | ||||
Capital stock, preferred | 0 | 0 | ||
Capital stock, common | 11,713 | 8,690 | ||
Additional paid-in capital | 163,487 | 80,537 | ||
Treasury stock | (6,331) | (6,945) | ||
Retained earnings | 123,901 | 105,127 | ||
Accumulated other comprehensive income | 3,408 | 5,322 | ||
Total shareholders’ equity | 296,178 | 192,731 | ||
Total liabilities and shareholders’ equity | $ 342,691 | $ 209,007 |
Parent Company Only Statements
Parent Company Only Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Interest and discount on loan pool participations | $ 798 | $ 1,516 | $ 2,046 | |||||||||||||
Investment securities gains | 1,011 | 1,227 | 65 | |||||||||||||
Operating expenses | $ (21,809) | [1] | $ (20,342) | [1] | $ (19,846) | [1] | $ (11,179) | [1] | $ (11,563) | $ (10,819) | $ (10,639) | $ (10,392) | (73,176) | [2] | (43,413) | (42,087) |
Income tax expense (benefit) | 1,429 | 2,121 | 2,594 | 1,675 | 1,668 | 1,715 | 1,719 | 1,929 | 7,819 | 7,031 | 6,646 | |||||
Net income | $ 8,238 | $ 7,615 | $ 4,469 | $ 4,796 | $ 3,907 | $ 4,889 | $ 4,753 | $ 4,973 | 25,118 | 18,522 | 18,607 | |||||
Parent Company | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Dividends from subsidiaries | 53,511 | 8,500 | 4,006 | |||||||||||||
Interest income and dividends on investment securities | 30 | 49 | 33 | |||||||||||||
Interest and discount on loan pool participations | (69) | (293) | (940) | |||||||||||||
Investment securities gains | 188 | 0 | 0 | |||||||||||||
Loss on sale of loan pool participations | (455) | 0 | 0 | |||||||||||||
Interest on debt | (1,135) | (281) | (296) | |||||||||||||
Operating expenses | (5,233) | (2,351) | (1,034) | |||||||||||||
Income before income taxes and equity in subsidiaries’ undistributed income | 46,837 | 5,624 | 1,769 | |||||||||||||
Income tax expense (benefit) | (1,951) | (807) | (890) | |||||||||||||
Income before equity in subsidiaries’ undistributed income | 48,788 | 6,431 | 2,659 | |||||||||||||
Equity in subsidiaries’ undistributed income | (23,670) | 12,091 | 15,948 | |||||||||||||
Net income | $ 25,118 | $ 18,522 | $ 18,607 | |||||||||||||
[1] | (1) Certain amounts in the prior periods have been reclassified to conform to the current year presentation, with no effect on net income. | |||||||||||||||
[2] | (1) Includes merger-related expenses of $3.5 million and $1.1 million for the year ended December 31, 2015 and December 31, 2014, respectively, included in the All Other segment. |
Parent Company Only Statemen121
Parent Company Only Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 8,238 | $ 7,615 | $ 4,469 | $ 4,796 | $ 3,907 | $ 4,889 | $ 4,753 | $ 4,973 | $ 25,118 | $ 18,522 | $ 18,607 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred income taxes | 1,300 | 2,502 | (1,454) | ||||||||
Investment securities gain | (1,011) | (1,227) | (65) | ||||||||
Stock based compensation | 634 | 493 | 384 | ||||||||
(Increase) decrease in other assets | 3,037 | 485 | 5,822 | ||||||||
Net cash provided by operating activities | 32,708 | 23,264 | 28,260 | ||||||||
Cash flows from investing activities | |||||||||||
Proceeds from sales of available for sale securities | 116,829 | 33,457 | 12,447 | ||||||||
Purchase of available for sale securities | (25,424) | (67,892) | (74,582) | ||||||||
Proceeds from maturities and calls of held to maturity securities | 4,669 | 1,147 | 1,232 | ||||||||
Loan participation pools, net | 19,332 | 6,201 | 10,117 | ||||||||
Net cash acquired in business combination | (35,596) | 0 | 0 | ||||||||
Net cash provided by (used in) investing activities | 5,013 | (47,436) | (5,406) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase of common stock | 0 | (3,987) | (967) | ||||||||
Redemption of subordinated note | (12,669) | 0 | 0 | ||||||||
Proceeds from Issuance of Long-term Debt | 25,000 | 0 | 0 | ||||||||
Payments on long-term debt | (2,500) | 0 | 0 | ||||||||
Issuance of common stock, net of expenses | 7,900 | 0 | 0 | ||||||||
Dividends paid | (6,344) | (4,868) | (4,259) | ||||||||
Net cash provided by (used in) financing activities | (14,033) | 22,691 | (45,155) | ||||||||
Net increase (decrease) in cash and cash equivalents | 23,688 | (1,481) | (22,301) | ||||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 25,118 | 18,522 | 18,607 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Undistributed (earnings) loss of subsidiaries, net of dividends and distributions | 23,670 | (12,091) | (15,948) | ||||||||
Amortization of premium on junior subordinated notes issued to capital trusts | 73 | 0 | 0 | ||||||||
Deferred income taxes | 617 | 330 | (583) | ||||||||
Investment securities gain | (188) | 0 | 0 | ||||||||
Stock based compensation | 634 | 493 | 384 | ||||||||
(Increase) decrease in other assets | 518 | (488) | (232) | ||||||||
Increase (decrease) in other liabilities | (907) | 550 | (15) | ||||||||
Net cash provided by operating activities | 49,535 | 7,316 | 2,213 | ||||||||
Cash flows from investing activities | |||||||||||
Proceeds from sales of available for sale securities | 1,173 | 2 | 2 | ||||||||
Purchase of available for sale securities | (14) | (29) | (24) | ||||||||
Proceeds from maturities and calls of held to maturity securities | 246 | ||||||||||
Loan participation pools, net | 1,964 | 1,445 | 2,719 | ||||||||
Net cash acquired in business combination | (62,902) | ||||||||||
Investment in subsidiary - Central Bank | (3,000) | ||||||||||
Net cash provided by (used in) investing activities | (62,533) | 1,418 | 2,697 | ||||||||
Cash flows from financing activities: | |||||||||||
Stock options exercised | 158 | 282 | 320 | ||||||||
Repurchase of common stock | 0 | (3,987) | (967) | ||||||||
Redemption of subordinated note | (12,669) | ||||||||||
Proceeds from Issuance of Long-term Debt | 25,000 | 0 | 0 | ||||||||
Payments on long-term debt | (2,500) | ||||||||||
Issuance of common stock, net of expenses | 7,900 | 0 | 0 | ||||||||
Dividends paid | (6,344) | (4,868) | (4,259) | ||||||||
Net cash provided by (used in) financing activities | 11,545 | (8,573) | (4,906) | ||||||||
Net increase (decrease) in cash and cash equivalents | (1,453) | 161 | 4 | ||||||||
Cash Balance: | |||||||||||
Beginning | $ 5,942 | $ 5,781 | 5,942 | 5,781 | 5,777 | ||||||
Ending | $ 4,489 | $ 5,942 | $ 4,489 | $ 5,942 | $ 5,781 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | Feb. 05, 2016 | Jan. 19, 2016 |
Central Bank | Rice Lake and Barron Wisconsin Branches | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||
Subsequent Event [Line Items] | ||
Disposal group, deposits | $ 27.1 | |
Disposal group, loans | 16.4 | |
Disposal group, gain on disposal | $ 0.7 | |
Common Stock | ||
Subsequent Event [Line Items] | ||
Dividends Payable, Amount Per Share | $ 0.16 | |
Dividends Payable, Date to be Paid | Mar. 15, 2016 | |
Dividends Payable, Date of Record | Mar. 1, 2016 |
Quarterly Results of Operati123
Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Interest income | $ 29,044 | $ 29,989 | $ 25,185 | $ 16,482 | $ 16,311 | $ 15,996 | $ 16,176 | $ 15,921 | $ 100,700 | $ 64,404 | $ 66,094 | |||||
Interest expense | 2,716 | [1] | 3,230 | [1] | 2,462 | [1] | 2,240 | [1] | 2,407 | 2,429 | 2,321 | 2,394 | 10,648 | 9,551 | 12,132 | |
Net interest income | 26,328 | 26,759 | 22,723 | 14,242 | 13,904 | 13,567 | 13,855 | 13,527 | 90,052 | 54,853 | 53,962 | |||||
Provision for loan losses | 1,490 | 2,141 | 901 | 600 | 300 | 150 | 300 | 450 | 5,132 | 1,200 | 1,350 | |||||
Noninterest income | 6,638 | 5,460 | 5,087 | 4,008 | 3,534 | 4,006 | 3,556 | 4,217 | 21,193 | 15,313 | 14,728 | |||||
Noninterest expense | 21,809 | [1] | 20,342 | [1] | 19,846 | [1] | 11,179 | [1] | 11,563 | 10,819 | 10,639 | 10,392 | 73,176 | [2] | 43,413 | 42,087 |
Income before income tax expense | 9,667 | 9,736 | 7,063 | 6,471 | 5,575 | 6,604 | 6,472 | 6,902 | 32,937 | 25,553 | 25,253 | |||||
Income tax expense | 1,429 | 2,121 | 2,594 | 1,675 | 1,668 | 1,715 | 1,719 | 1,929 | 7,819 | 7,031 | 6,646 | |||||
Net income | $ 8,238 | $ 7,615 | $ 4,469 | $ 4,796 | $ 3,907 | $ 4,889 | $ 4,753 | $ 4,973 | $ 25,118 | $ 18,522 | $ 18,607 | |||||
Basic earnings per common share | $ 0.72 | $ 0.67 | $ 0.43 | $ 0.57 | $ 0.46 | $ 0.59 | $ 0.56 | $ 0.59 | $ 2.42 | $ 2.20 | $ 2.19 | |||||
Diluted earnings per common share | $ 0.72 | $ 0.67 | $ 0.42 | $ 0.57 | $ 0.46 | $ 0.59 | $ 0.56 | $ 0.58 | $ 2.42 | $ 2.19 | $ 2.18 | |||||
[1] | (1) Certain amounts in the prior periods have been reclassified to conform to the current year presentation, with no effect on net income. | |||||||||||||||
[2] | (1) Includes merger-related expenses of $3.5 million and $1.1 million for the year ended December 31, 2015 and December 31, 2014, respectively, included in the All Other segment. |