Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 02, 2016 | |
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-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 11,435,860 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 33,385 | $ 44,199 |
Interest-bearing deposits in banks | 75,254 | 2,731 |
Federal funds sold | 2,319 | 167 |
Cash and cash equivalents | 110,958 | 47,097 |
Investment securities: | ||
Available for sale securities | 370,855 | 427,241 |
Held to maturity (fair value of $127,815 as of June 30, 2016 and $118,234 as of December 31, 2015) | 125,885 | 118,423 |
Loans held for sale | 5,048 | 3,187 |
Loans and leases receivable, gross | 2,168,126 | 2,151,942 |
Less: Allowance for loan losses | (21,197) | (19,427) |
Net loans | 2,146,929 | 2,132,515 |
Premises and equipment, net | 76,438 | 76,202 |
Accrued interest receivable | 12,171 | 13,736 |
Goodwill | 64,654 | 64,548 |
Other intangible assets, net | 17,065 | 19,141 |
Bank-owned life insurance | 46,581 | 46,295 |
Other real estate owned | 4,143 | 8,834 |
Deferred income taxes | 947 | |
Other assets | 21,467 | 21,809 |
Total assets | 3,002,194 | 2,979,975 |
Deposits: | ||
Non-interest-bearing demand | 536,052 | 559,586 |
Interest-bearing checking | 1,073,023 | 1,064,350 |
Savings | 195,887 | 189,489 |
Certificates of deposit under $100,000 | 336,744 | 348,268 |
Certificates of deposit $100,000 and over | 321,855 | 301,828 |
Total deposits | 2,463,561 | 2,463,521 |
Federal funds purchased | 0 | 1,500 |
Securities sold under agreements to repurchase | 60,458 | 67,463 |
Federal Home Loan Bank borrowings | 107,000 | 87,000 |
Junior subordinated notes issued to capital trusts | 23,640 | 23,587 |
Long-term debt | 20,000 | 22,500 |
Deferred compensation liability | 5,190 | 5,132 |
Accrued interest payable | 1,620 | 1,507 |
Deferred income taxes | 83 | 0 |
Other liabilities | 15,447 | 11,587 |
Total liabilities | 2,696,999 | 2,683,797 |
Shareholders' equity: | ||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding at June 30, 2016 and December 31, 2015 | 0 | 0 |
Common stock, $1.00 par value; authorized 15,000,000 shares at June 30, 2016 and December 31, 2015; issued 11,713,481 shares at June 30, 2016 and at December 31, 2015; outstanding 11,435,860 shares at June 30, 2016 and 11,408,773 shares at December 31, 2015 | 11,713 | 11,713 |
Additional paid-in capital | 163,310 | 163,487 |
Treasury stock at cost, 277,621 shares as of June 30, 2016 and 304,708 shares at December 31, 2015 | (5,776) | (6,331) |
Retained earnings | 130,543 | 123,901 |
Accumulated other comprehensive income | 5,405 | 3,408 |
Total shareholders' equity | 305,195 | 296,178 |
Total liabilities and shareholders' equity | $ 3,002,194 | $ 2,979,975 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Held to maturity, estimated fair value | $ 127,815 | $ 118,234 |
Shareholders' equity: | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 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 | 11,713,481 |
Common stock, shares outstanding | 11,435,860 | 11,408,773 |
Shares of Treasury stock | 277,621 | 304,708 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Interest and fees on loans | $ 24,635 | $ 21,685 | $ 49,751 | $ 34,262 |
Interest and discount on loan pool participations | 178 | 798 | ||
Interest on bank deposits | 70 | 15 | 78 | 16 |
Interest on federal funds sold | 1 | 0 | 1 | 0 |
Interest on investment securities: | ||||
Taxable securities | 1,912 | 1,913 | 3,836 | 3,807 |
Tax-exempt securities | 1,420 | 1,394 | 2,857 | 2,784 |
Total interest income | 28,038 | 25,185 | 56,523 | 41,667 |
Interest expense: | ||||
Interest-bearing checking | 776 | 662 | 1,536 | 1,197 |
Savings | 60 | 44 | 166 | 80 |
Certificates of deposit under $100,000 | 719 | 491 | 1,288 | 1,117 |
Certificates of deposit $100,000 and over | 719 | 467 | 1,358 | 993 |
Total interest expense on deposits | 2,274 | 1,664 | 4,348 | 3,387 |
Interest on federal funds purchased | 2 | 25 | 14 | |
Interest on securities sold under agreements to repurchase | 32 | 43 | 85 | 73 |
Interest on Federal Home Loan Bank borrowings | 467 | 353 | 918 | 752 |
Interest on other borrowings | 6 | 6 | 12 | 10 |
Interest on junior subordinated notes issued to capital trusts | 196 | 136 | 393 | 208 |
Interest on subordinated notes | 0 | 162 | 0 | 162 |
Interest on long-term debt | 123 | 96 | 247 | 96 |
Total interest expense | 3,098 | 2,462 | 6,028 | 4,702 |
Net interest income | 24,940 | 22,723 | 50,495 | 36,965 |
Provision for loan losses | 1,171 | 901 | 2,236 | 1,501 |
Net interest income after provision for loan losses | 23,769 | 21,822 | 48,259 | 35,464 |
Noninterest income: | ||||
Trust, investment and insurance fees | 1,440 | 1,633 | 2,938 | 3,214 |
Service charges and fees on deposit accounts | 1,283 | 1,068 | 2,541 | 1,801 |
Mortgage origination and loan servicing fees | 755 | 833 | 1,304 | 1,071 |
Other service charges, commissions and fees | 1,378 | 1,228 | 2,808 | 1,813 |
Bank-owned life insurance income | 332 | 325 | 716 | 620 |
Gain on sale or call of available for sale securities | 223 | 456 | 467 | 1,011 |
Gain (loss) on sale of premises and equipment | 130 | (13) | (16) | (10) |
Other gain (loss) | 54 | (443) | 1,242 | (425) |
Total noninterest income | 5,595 | 5,087 | 12,000 | 9,095 |
Noninterest expense: | ||||
Salaries and employee benefits | 13,321 | 9,994 | 25,966 | 16,863 |
Net occupancy and equipment expense | 3,326 | 2,342 | 6,577 | 3,866 |
Professional fees | 1,221 | 2,229 | 2,167 | 2,909 |
Data processing expense | 809 | 668 | 3,382 | 1,100 |
FDIC insurance expense | 398 | 388 | 819 | 627 |
Amortization of intangible assets | 1,015 | 1,228 | 2,076 | 1,336 |
Other operating expense | 2,725 | 2,997 | 5,274 | 4,324 |
Total noninterest expense | 22,815 | 19,846 | 46,261 | 31,025 |
Income before income tax expense | 6,549 | 7,063 | 13,998 | 13,534 |
Income tax expense | 1,794 | 2,594 | 3,699 | 4,269 |
Net income | $ 4,755 | $ 4,469 | $ 10,299 | $ 9,265 |
Share and per share information: | ||||
Ending number of shares outstanding | 11,435,860 | 11,405,931 | 11,435,860 | 11,405,931 |
Average number of shares outstanding | 11,431,252 | 10,229,355 | 11,424,122 | 9,301,761 |
Diluted average number of shares | 11,453,831 | 10,254,279 | 11,448,677 | 9,328,941 |
Earnings per common share - basic | $ 0.42 | $ 0.43 | $ 0.90 | $ 1 |
Earnings per common share - diluted | 0.42 | 0.42 | 0.90 | 0.99 |
Dividends paid per common share | $ 0.16 | $ 0.15 | $ 0.32 | $ 0.30 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 4,755 | $ 4,469 | $ 10,299 | $ 9,265 |
Other comprehensive income, available for sale securities: | ||||
Unrealized holding gains (losses) arising during period | 891 | (4,430) | 3,869 | (2,274) |
Reclassification adjustment for gains included in net income | (223) | (456) | (467) | (1,011) |
Income tax (expense) benefit | (389) | 1,853 | (1,405) | 1,236 |
Other comprehensive income (loss) on available for sale securities | 279 | (3,033) | 1,997 | (2,049) |
Other comprehensive income (loss), net of tax | 279 | (3,033) | 1,997 | (2,049) |
Comprehensive income | $ 5,034 | $ 1,436 | $ 12,296 | $ 7,216 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2014 | $ 192,731 | $ 0 | $ 8,690 | $ 80,537 | $ (6,945) | $ 105,127 | $ 5,322 |
Net income | 9,265 | 9,265 | |||||
Issuance of common stock due to business combination (2,723,083 shares) | 72,638 | 0 | 2,723 | 69,915 | 0 | 0 | 0 |
Issuance of common stock -private placement (300,000 shares) | 7,900 | 0 | 300 | 7,600 | 0 | 0 | 0 |
Dividends paid on common stock | (2,921) | (2,921) | |||||
Stock options exercised | 84 | (26) | 110 | ||||
Release/lapse of restriction on RSUs | 29 | (416) | 445 | ||||
Stock compensation | 289 | 289 | |||||
Other comprehensive income (loss), net of tax | (2,049) | (2,049) | |||||
Balance at Jun. 30, 2015 | 277,966 | 0 | 11,713 | 157,899 | (6,390) | 111,471 | 3,273 |
Balance at Dec. 31, 2015 | 296,178 | 0 | 11,713 | 163,487 | (6,331) | 123,901 | 3,408 |
Net income | 10,299 | 10,299 | |||||
Dividends paid on common stock | (3,657) | (3,657) | |||||
Stock options exercised | 38 | (22) | 60 | ||||
Release/lapse of restriction on RSUs | (25) | (520) | 495 | ||||
Stock compensation | 365 | 365 | |||||
Other comprehensive income (loss), net of tax | 1,997 | 1,997 | |||||
Balance at Jun. 30, 2016 | $ 305,195 | $ 0 | $ 11,713 | $ 163,310 | $ (5,776) | $ 130,543 | $ 5,405 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity Parenthetical - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Dividends paid on common stock (per share) | $ 0.32 | $ 0.30 |
Common Stock | ||
Issuance of common stock due to business combination (shares) | 0 | 2,723,083 |
Issuance of common stock - private placement (shares) | 0 | 300,000 |
Stock options exercised (shares) | 2,900 | 5,269 |
Release/lapse of restriction on RSUs (shares) | 25,633 | 23,123 |
Repurchase of common stock (shares) | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||||
Net income | $ 4,755 | $ 4,469 | $ 10,299 | $ 9,265 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for loan losses | 1,171 | 901 | 2,236 | 1,501 |
Depreciation, amortization and accretion | 5,289 | 3,730 | ||
(Gain) loss on sale of premises and equipment | (130) | 13 | 16 | 10 |
Deferred income taxes | 481 | 501 | ||
Stock-based compensation | 365 | 289 | ||
Net gain on sale or call of available for sale securities | (223) | (456) | (467) | (1,011) |
Net (gain) loss on sale of other real estate owned | (601) | 33 | ||
Net gain on sale of loans held for sale | (993) | (582) | ||
Origination of loans held for sale | 47,588 | 61,657 | ||
Proceeds from sales of loans held for sale | 46,720 | 54,534 | ||
Decrease in accrued interest receivable | 1,565 | 1,148 | ||
Increase in cash surrender value of bank-owned life insurance | (716) | (620) | ||
(Increase) decrease in other assets | 342 | (129) | ||
Increase (decrease) in deferred compensation liability | 58 | 63 | ||
Increase (decrease) in accrued interest payable, accounts payable, accrued expenses, and other liabilities | 3,973 | (3,220) | ||
Net cash provided by operating activities | 20,017 | 2,853 | ||
Cash flows from investing activities: | ||||
Proceeds from sales of available for sale securities | 23,384 | 106,389 | ||
Proceeds from maturities and calls of available for sale securities | 51,873 | 54,481 | ||
Purchases of available for sale securities | (15,818) | (9) | ||
Proceeds from maturities and calls of held to maturity securities | 9,259 | 1,235 | ||
Purchases of held to maturity securities | (16,821) | (6,322) | ||
Net increase in loans | (17,610) | (59,973) | ||
Decrease in loan pool participations, net | 0 | 19,332 | ||
Purchases of premises and equipment | (3,964) | (6,958) | ||
Proceeds from sale of other real estate owned | 6,252 | 1,217 | ||
Proceeds from sale of premises and equipment | 1,468 | 25 | ||
Proceeds of principal and earnings from bank-owned life insurance | 430 | 0 | ||
Net cash paid in business acquisitions (Note 2) | 0 | (35,596) | ||
Net cash provided by investing activities | 38,453 | 73,821 | ||
Cash flows from financing activities: | ||||
Net increase (decrease) in deposits | 40 | (53,363) | ||
Increase (decrease) in federal funds purchased | (1,500) | 7,292 | ||
Decrease in securities sold under agreements to repurchase | (7,005) | (9,831) | ||
Proceeds from Federal Home Loan Bank borrowings | 30,000 | 10,000 | ||
Repayment of Federal Home Loan Bank borrowings | (10,000) | (25,000) | ||
Proceeds and effect of tax from share-based compensation | 13 | 113 | ||
Redemption of subordinated note | 0 | (12,669) | ||
Proceeds from long-term debt | 0 | 25,000 | ||
Payments on long-term debt | (2,500) | 0 | ||
Dividends paid | (3,657) | (2,921) | ||
Issuance of common stock, net of expenses | 0 | 7,900 | ||
Net cash provided by (used in) financing activities | 5,391 | (53,479) | ||
Net increase in cash and cash equivalents | 63,861 | 23,195 | ||
Cash and cash equivalents at beginning of period | 47,097 | 23,409 | ||
Cash and cash equivalents at end of period | 110,958 | 46,604 | 110,958 | 46,604 |
Supplemental disclosures of cash flow information: | ||||
Cash paid during the period for interest | 5,915 | 3,556 | ||
Cash paid during the period for income taxes | 4,225 | 2,550 | ||
Supplemental schedule of non-cash investing activities: | ||||
Transfer of loans to other real estate owned | 960 | 410 | ||
Noncash assets acquired: | ||||
Goodwill | 64,654 | 64,654 | ||
Total noncash assets acquired | 1,211,118 | |||
Liabilities assumed: | ||||
Total liabilities assumed | 1,097,627 | |||
Central Bancshares, Inc. | ||||
Noncash assets acquired: | ||||
Investment securities | 0 | 160,775 | 0 | 160,775 |
Loans | 0 | 916,973 | 0 | 916,973 |
Premises and equipment | 0 | 27,908 | 0 | 27,908 |
Goodwill | 0 | 64,654 | 0 | 64,654 |
FDIC indemnification asset | 0 | 3,753 | 0 | 3,753 |
Other real estate owned | 0 | 8,420 | 0 | 8,420 |
Other assets | 0 | 14,482 | 0 | 14,482 |
Liabilities assumed: | ||||
Deposits | 0 | 1,049,167 | 0 | 1,049,167 |
Short-term borrowings | 0 | 16,124 | 0 | 16,124 |
Junior subordinated notes issued to capital trusts | 0 | 8,050 | 0 | 8,050 |
Subordinated notes payable | 0 | 12,669 | 0 | 12,669 |
Accrued expenses and other liabilities | 0 | 11,617 | 0 | 11,617 |
Core deposit intangible | Central Bancshares, Inc. | ||||
Noncash assets acquired: | ||||
Finite-lived intangibles | 0 | 12,773 | 0 | 12,773 |
Trade names intangible | Central Bancshares, Inc. | ||||
Noncash assets acquired: | ||||
Finite-lived intangibles | $ 0 | $ 1,380 | $ 0 | $ 1,380 |
Principles of Consolidation and
Principles of Consolidation and Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Principles of Consolidation and Presentation MidWest One Financial Group, Inc. (the “Company,” which is also referred to herein as “we,” “our” or “us”) is an Iowa corporation incorporated in 1983, a bank holding company under the Bank Holding Company Act of 1956 and a financial holding company under the Gramm-Leach-Bliley Act of 1999. Our principal executive offices are located at 102 South Clinton Street, Iowa City, Iowa 52240. On May 1, 2015, the Company completed its merger with Central Bancshares, Inc. (“Central”), pursuant to which Central was merged with and into the Company. In connection with the merger, Central Bank, a Minnesota-chartered commercial bank and wholly-owned subsidiary of Central, became a wholly-owned subsidiary of the Company. On April 2, 2016, Central Bank merged with and into MidWest One Bank. The Company issued 2,723,083 shares of common stock and paid $64.0 million in cash, for total consideration of $141.9 million , in connection with the holding company merger. The results of operations acquired from Central have been included in the Company’s results of operations for the time period since the date of acquisition. The Company owns all of the common stock of MidWest One Bank, an Iowa state non-member bank chartered in 1934 with its main office in Iowa City, Iowa (and prior to the bank merger, all of the common stock of Central Bank, a Minnesota state non-member bank chartered in 1988 with its main office in Golden Valley, Minnesota), and all of the common stock of MidWest One Insurance Services, Inc., Oskaloosa, Iowa. We operate primarily through our bank subsidiary, MidWest One Bank (and, prior to the bank merger, Central Bank) and MidWest One Insurance Services, Inc., our wholly-owned subsidiary that operates an insurance agency business through six offices located in central and east-central Iowa. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all the information and notes necessary for complete financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”). The information in this Quarterly Report on Form 10-Q is written with the presumption that the users of the interim financial statements have read or have access to the most recent Annual Report on Form 10-K of the Company, which contains the latest audited financial statements and notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations as of December 31, 2015 and for the year then ended. Management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position as of June 30, 2016 , and the results of operations and cash flows for the three and six months ended June 30, 2016 and 2015 . All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect: (1) the reported amounts of assets and liabilities, (2) the disclosure of contingent assets and liabilities at the date of the financial statements, and (3) the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available to management at the time the estimates are made. Actual results could differ from those estimates. The results for the three and six months ended June 30, 2016 may not be indicative of results for the year ending December 31, 2016 , or for any other period. All significant accounting policies followed in the preparation of the quarterly financial statements are disclosed in the Annual Report on Form 10-K for the year ended December 31, 2015 . In the consolidated statements of cash flows, cash and cash equivalents include cash and due from banks, interest-bearing deposits in banks, and federal funds sold. Certain reclassifications have been made to prior periods’ consolidated financial statements to present them on a basis comparable with the current period’s consolidated financial statements. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Business Combination On May 1, 2015, the Company acquired all of the voting equity interests of Central, 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 its 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 Central 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, goodwill of $64.7 million has been recorded on the acquisition. Goodwill recorded in this transaction reflects the entry into the geographically new markets served by Central. Goodwill recorded in the transaction is not tax deductible. The amounts recognized for the business combination in the financial statements have been determined to be final as of March 31, 2016. 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 64,654 Core deposit intangible 12,773 Trade name intangible 1,380 FDIC indemnification asset 3,753 Other real estate owned 8,420 Other assets 14,482 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 Total identifiable 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 Federal Deposit Insurance Corporation (the ”FDIC”) indemnification assets have not been included due to the immateriality of the amount involved. See Note 6. “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 $1.8 million and $2.7 million in pre-tax merger-related expenses for the three months ended June 30, 2016 and 2015 , respectively, and $4.0 million and $3.2 million for the six months ended June 30, 2016 and 2015 , respectively. For the three months ended June 30, 2016 and 2015 , these expenses included professional and legal fees of $0.3 million and $1.5 million , respectively, to directly consummate the bank merger and the holding company 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 $1.3 million and $0.1 million , for the three months ended June 30, 2016 and 2015 , respectively, which are included in salaries and employee benefits in the consolidated statements of operations. For the six months ended June 30, 2016 and 2015 , respectively, merger-related expenses included $0.3 million and $1.7 million of professional and legal fees, $1.6 million and $0.4 million of retention and severance compensation costs, and $1.9 million of data processing service contract termination costs for the six months ended June 30, 2016 , which are included in data processing expense. The following table provides the unaudited pro forma information for the results of operations for the three and six months ended June 30, 2015 , as if the acquisition had occurred January 1, 2015. 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, 2015. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. Net income in the table below includes merger expenses. Pro Forma Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2015 2015 Total revenues (net interest income plus noninterest income) $ 31,634 $ 65,078 Net income $ 5,236 $ 12,875 The pro forma information above excludes the impact of any provision recorded related to renewing Central loans. Revenues and earnings of the acquired company have not been disclosed as it is not practicable because Central Bank was merged into MidWest One Bank on April 2, 2016, and separate financial information is not readily available. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Disclosure [Text Block] | Shareholders’ Equity Preferred Stock: The number of authorized shares of preferred stock for the Company is 500,000 . As of June 30, 2016 , none were issued or outstanding. Common Stock : As of June 30, 2016 , the number of authorized shares of common stock for the Company was 15,000,000 . As of June 30, 2016 , 11,435,860 shares were outstanding. On May 1, 2015, in connection with the Central merger, the Company issued 2,723,083 shares of its common stock. On June 22, 2015, the Company entered into a Securities Purchase Agreement with certain institutional accredited investors, pursuant to which, on June 23, 2015, the Company sold an aggregate of 300,000 newly issued shares of the Company’s common stock, at a purchase price of $28.00 per share. Each of the purchasers was an existing shareholder of the Company. On July 17, 2014 , the board of directors of the Company approved a share repurchase program, allowing for the repurchase of up to $5.0 million of stock through December 31, 2016 . During the second quarter of 2016 the Company repurchased no 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 June 30, 2016 . |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2016 | |
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. The following table presents the computation of earnings per common share for the respective periods: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share amounts) 2016 2015 2016 2015 Basic earnings per common share computation Numerator: Net income $ 4,755 $ 4,469 $ 10,299 $ 9,265 Denominator: Weighted average shares outstanding 11,431,252 10,229,355 11,424,122 9,301,761 Basic earnings per common share $ 0.42 $ 0.43 $ 0.90 $ 1.00 Diluted earnings per common share computation Numerator: Net income $ 4,755 $ 4,469 $ 10,299 $ 9,265 Denominator: Weighted average shares outstanding, including all dilutive potential shares 11,453,831 10,254,279 11,448,677 9,328,941 Diluted earnings per common share $ 0.42 $ 0.42 $ 0.90 $ 0.99 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
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: As of June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) U.S. Government agencies and corporations $ 6,027 $ 96 $ — $ 6,123 State and political subdivisions 162,480 7,487 3 169,964 Mortgage-backed securities 44,766 767 4 45,529 Collateralized mortgage obligations 104,401 782 652 104,531 Corporate debt securities 43,025 422 16 43,431 Total debt securities 360,699 9,554 675 369,578 Other equity securities 1,255 40 18 1,277 Total $ 361,954 $ 9,594 $ 693 $ 370,855 As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) 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 $ 421,740 $ 7,751 $ 2,250 $ 427,241 The amortized cost and fair value of investment securities held to maturity, with gross unrealized gains and losses, are as follows: As of June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) State and political subdivisions $ 72,330 $ 1,938 $ 41 $ 74,227 Mortgage-backed securities 2,870 31 — 2,901 Collateralized mortgage obligations 28,154 149 70 28,233 Corporate debt securities 22,531 260 337 22,454 Total $ 125,885 $ 2,378 $ 448 $ 127,815 As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) 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 Investment securities with a carrying value of $217.3 million and $321.6 million at June 30, 2016 and December 31, 2015 , 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 June 30, 2016 and December 31, 2015 . This temporary impairment represents the estimated amount of loss that would be realized if the securities were sold on the valuation date. The following tables present information pertaining to securities with gross unrealized losses as of June 30, 2016 and December 31, 2015 , aggregated by investment category and length of time that individual securities have been in a continuous loss position: As of June 30, 2016 Number of Securities Less than 12 Months 12 Months or More Total Available for Sale Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 2 $ — $ — $ 639 $ 3 $ 639 $ 3 Mortgage-backed securities 8 701 3 118 1 819 4 Collateralized mortgage obligations 6 15,619 240 19,092 412 34,711 652 Corporate debt securities 2 7,312 16 — — 7,312 16 Other equity securities 1 — — 982 18 982 18 Total 19 $ 23,632 $ 259 $ 20,831 $ 434 $ 44,463 $ 693 As of December 31, 2015 Number of Securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses 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 June 30, 2016 Number of Securities Less than 12 Months 12 Months or More Total Held to Maturity Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 10 $ 3,511 $ 40 $ 250 $ 1 $ 3,761 $ 41 Collateralized mortgage obligations 5 6,037 1 11,976 69 18,013 70 Corporate debt securities 3 — — 4,935 337 4,935 337 Total 18 $ 9,548 $ 41 $ 17,161 $ 407 $ 26,709 $ 448 As of December 31, 2015 Number of Securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses 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 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. At June 30, 2016 and December 31, 2015 , 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 and collateralized mortgage obligations do not expose the Company to credit-related losses. At June 30, 2016 , approximately 58% of the municipal bonds 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 their 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 June 30, 2016 and December 31, 2015 . As of June 30, 2016 , the Company also 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 six months ended June 30, 2016 and the full year of 2015 , no impairment charges were recorded, as the affected equity securities were not deemed impaired due to stabilized market prices in relation to the Company’s original purchase price. It is reasonably possible that the fair values of the Company’s investment securities could decline in the future if interest rates increase or the overall economy or the financial conditions of the issuers deteriorate. As a result, there is a risk that 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 June 30, 2016 , 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 $ 14,821 $ 14,895 $ — $ — Due after one year through five years 85,564 88,068 7,360 7,462 Due after five years through ten years 95,480 100,338 51,114 52,516 Due after ten years 15,667 16,217 36,387 36,703 Debt securities without a single maturity date 149,167 150,060 31,024 31,134 Total $ 360,699 $ 369,578 $ 125,885 $ 127,815 Mortgage-backed securities and collateralized mortgage obligations are collateralized by mortgage loans and guaranteed by U.S. government agencies. Our 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. 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 the six months ended June 30, 2016 and June 30, 2015 were $23.4 million and $106.4 million , respectively. Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. Realized gains on investments for the three and six months ended June 30, 2016 and 2015 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Available for sale fixed maturity securities: Gross realized gains $ 223 $ 824 $ 467 $ 1,265 Gross realized losses — (368 ) — (442 ) Other-than-temporary impairment — — — — 223 456 467 823 Equity securities: Gross realized gains — — — 188 Gross realized losses — — — — Other-than-temporary impairment — — — — — — — 188 Total net realized gains and losses $ 223 $ 456 $ 467 $ 1,011 |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
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 and based on impairment method are as follows: Allowance for Loan Losses and Recorded Investment in Loan Receivables As of June 30, 2016 and December 31, 2015 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total June 30, 2016 Allowance for loan losses: Individually evaluated for impairment $ 208 $ 763 $ 2,514 $ 255 $ — $ 3,740 Collectively evaluated for impairment 2,146 4,622 7,909 1,968 367 17,012 Purchased credit impaired loans — — 205 240 — 445 Total $ 2,354 $ 5,385 $ 10,628 $ 2,463 $ 367 $ 21,197 Loans receivable Individually evaluated for impairment $ 3,120 $ 7,755 $ 9,888 $ 3,531 $ — $ 24,294 Collectively evaluated for impairment 118,402 474,910 993,101 496,937 37,188 2,120,538 Purchased credit impaired loans — — 17,176 6,118 — 23,294 Total $ 121,522 $ 482,665 $ 1,020,165 $ 506,586 $ 37,188 $ 2,168,126 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total December 31, 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 Included above as of June 30, 2016 , are loans with a contractual balance of $87.8 million and a recorded balance of $83.5 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 8. “Other Assets”. As of June 30, 2016 , the purchased credit impaired loans included above are $29.3 million , net of a discount of $6.0 million . Loans with unpaid principal in the amount of $371.3 million and $558.8 million at June 30, 2016 and December 31, 2015 , respectively, were pledged to the Federal Home Loan Bank (the “FHLB”) as collateral for borrowings. The changes in the allowance for loan losses by portfolio segment are as follows: Allowance for Loan Loss Activity For the Three Months Ended June 30, 2016 and 2015 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2016 Beginning balance $ 2,235 $ 4,680 $ 9,713 $ 3,429 $ 188 $ — $ 20,245 Charge-offs — — (1 ) (354 ) (77 ) — (432 ) Recoveries 1 60 127 13 12 — 213 Provision 118 645 789 (625 ) 244 — 1,171 Ending balance $ 2,354 $ 5,385 $ 10,628 $ 2,463 $ 367 $ — $ 21,197 2015 Beginning balance $ 1,612 $ 5,518 $ 5,756 $ 3,083 $ 285 $ 272 $ 16,526 Charge-offs — (44 ) (191 ) (38 ) (19 ) — (292 ) Recoveries — 12 6 8 6 — 32 Provision (132 ) (61 ) 195 171 65 663 901 Ending balance $ 1,480 $ 5,425 $ 5,766 $ 3,224 $ 337 $ 935 $ 17,167 Allowance for Loan Loss Activity For the Six Months Ended June 30, 2016 and 2015 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2016 Beginning balance $ 1,417 $ 5,451 $ 8,556 $ 3,968 $ 409 $ (374 ) $ 19,427 Charge-offs (125 ) (10 ) (41 ) (513 ) (127 ) — (816 ) Recoveries 7 72 180 77 14 — 350 Provision 1,055 (128 ) 1,933 (1,069 ) 71 374 2,236 Ending balance $ 2,354 $ 5,385 $ 10,628 $ 2,463 $ 367 $ — $ 21,197 2015 Beginning balance $ 1,506 $ 5,780 $ 4,399 $ 3,167 $ 323 $ 1,188 $ 16,363 Charge-offs — (291 ) (191 ) (548 ) (52 ) — (1,082 ) Recoveries — 351 6 12 16 — 385 Provision (26 ) (415 ) 1,552 593 50 (253 ) 1,501 Ending balance $ 1,480 $ 5,425 $ 5,766 $ 3,224 $ 337 $ 935 $ 17,167 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. Purchased Loans Policy 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 value 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 reasonably estimate cash flows to be expected, it may use the cost-recovery method or cash-basis method of income recognition. Charge-off Policy The Company requires a loan to be charged-off, in whole or in part, 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. MidWest One 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 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 inexactness. Given the inherently imprecise nature of calculating the necessary ALLL, the Company’s policy permits the actual ALLL to be between 20% above and 5% below the “indicated reserve.” As part of the merger between MidWest One Bank and Central Bank, management developed a single methodology for determining the amount of the ALLL that would be needed at the combined bank. The new methodology is a hybrid of the methods used at MidWest One Bank and Central Bank prior to the bank merger, and the results from the new ALLL model are consistent with the results that the two banks calculated individually. The refined allowance calculation allocates the portion of allowance that was previously deemed to be unallocated to instead be included in management’s determination of appropriate qualitative factors. These qualitative factors include (i) national and local economic conditions, (ii) the quality and experience of lending staff and management, (iii) changes in lending policies and procedures, (iv) changes in volume and severity of past due loans, classified loans and non-performing loans, (v) potential impact of any concentrations of credit, (vi) changes in the nature and terms of loans such as growth rates and utilization rates, (vii) changes in the value of underlying collateral for collateral-dependent loans, considering the Company’s disposition bias, and (viii) the effect of other external factors such as the legal and regulatory environment. The Company may also consider other qualitative factors for additional allowance allocations, including changes in the Company’s loan review process. Changes in the criteria used in this evaluation or the availability of new information could cause the allowance to be increased or decreased in future periods. In addition, bank regulatory agencies, as part of their examination process, may require adjustments to the allowance for loan losses based on their judgments and estimates. 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. A loan modification is a change in an existing loan contract that has been agreed to by the borrower and MidWest One Bank, which may or may not be a troubled debt restructure or “TDR.” All loans deemed TDR are considered impaired. A loan is considered a TDR when, for economic or legal reasons related to a borrower’s financial difficulties, a concession is granted to the borrower that would not otherwise be considered. Both financial distress on the part of the borrower and MidWest One Bank’s granting of a concession, which are detailed further below, must be present in order for the loan to be considered a TDR. All of the following factors are indicators that the debtor is experiencing financial difficulties (one or more items may be present): • The debtor is currently in default on any of its debt. • The debtor has declared or is in the process of declaring bankruptcy. • There is significant doubt as to whether the debtor will continue to be a going concern. • Currently, the debtor has securities being held as collateral that have been delisted, are in the process of being delisted, or are under threat of being delisted from an exchange. • Based on estimates and projections that only encompass the current business capabilities, the debtor forecasts that its entity-specific cash flows will be insufficient to service the debt (both interest and principal) in accordance with the contractual terms of the existing agreement through maturity. • Absent the current modification, the debtor cannot obtain funds from sources other than the existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor. The following factors are potential indicators that a concession has been granted (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 table sets forth information on the Company’s TDRs by class of financing receivable occurring during the stated periods: Three Months Ended June 30, 2016 2015 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) : Total — $ — $ — — $ — $ — Six Months Ended June 30, 2016 2015 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) : Agricultural Extended maturity date 1 $ 25 $ 25 — $ — $ — Residential real estate: One- to four- family first liens Interest rate reduction 1 104 104 — — — One- to four- family junior liens Interest rate reduction 1 71 71 — — — Total 3 $ 200 $ 200 — $ — $ — (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 as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Number of Contracts Recorded Investment 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: Total — $ — — $ — — $ — — $ — (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 will be separated into homogeneous pools to be collectively evaluated. Loans will be first grouped into the various loan types (i.e. commercial, agricultural, consumer, etc.) and further segmented within each subset by risk classification (i.e. pass, special mention/watch, and substandard). Homogeneous loans past due 60-89 days and 90 days and over are classified special mention/watch and substandard, respectively, for allocation purposes. The Company’s historical loss experience for each group segmented by loan type is calculated for the prior 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 MidWest One Bank’s existing portfolios. The items listed above are used to determine the pass percentage for loans evaluated under ASC 450, and as such, are applied to the loans risk rated pass. Due to the inherent risks associated with special mention/watch risk rated loans (i.e. early stages of financial deterioration, technical exceptions, etc.), this subset is reserved at a level that will cover losses above a pass allocation for loans that had a loss in the last 20 quarters in which the loan was risk rated special mention/watch at the time of the loss. Substandard loans carry greater risk than special mention/watch loans, and as such, this subset is reserved at a level that will cover losses above a pass allocation for loans that had a loss in the last 20 quarters in which the loans was risk rated substandard at the time of the loss. Ongoing analysis will be performed to support these factor multiples. The following tables set forth the risk category of loans by class of loans and credit quality indicator based on the most recent analysis performed, as of June 30, 2016 and December 31, 2015 : Pass Special Mention/ Watch Substandard Doubtful Loss Total (in thousands) June 30, 2016 Agricultural $ 106,027 $ 12,366 $ 3,037 $ — $ 92 $ 121,522 Commercial and industrial 447,153 14,317 19,674 9 — 481,153 Credit cards 1,512 — — — — 1,512 Commercial real estate: Construction and development 124,172 2,407 2,601 — — 129,180 Farmland 84,461 5,756 2,628 — — 92,845 Multifamily 119,026 364 1,862 — — 121,252 Commercial real estate-other 637,048 20,417 19,423 — — 676,888 Total commercial real estate 964,707 28,944 26,514 — — 1,020,165 Residential real estate: One- to four- family first liens 369,781 3,264 11,250 — — 384,295 One- to four- family junior liens 118,243 1,997 2,051 — — 122,291 Total residential real estate 488,024 5,261 13,301 — — 506,586 Consumer 36,937 2 211 38 — 37,188 Total $ 2,044,360 $ 60,890 $ 62,737 $ 47 $ 92 $ 2,168,126 Pass Special Mention/ Watch Substandard Doubtful Loss Total (in thousands) December 31, 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 and 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 Included within the special mention/watch, substandard, and doubtful categories at June 30, 2016 and December 31, 2015 are purchased credit impaired loans totaling $17.8 million and $23.7 million , respectively. 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 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 as doubtful have all the weaknesses inherent in those classified as 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 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 June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (in thousands) With no related allowance recorded: Agricultural $ 1,266 $ 1,766 $ — $ 1,512 $ 2,084 $ — Commercial and industrial 3,765 3,774 — 6,487 6,752 — Credit cards — — — — — — Commercial real estate: Construction and development — — — 321 448 — Farmland 2,414 2,564 — 2,711 2,870 — Multifamily — — — 1,632 1,798 — Commercial real estate-other 1,899 2,100 — 12,230 12,642 — Total commercial real estate 4,313 4,664 — 16,894 17,758 — Residential real estate: One- to four- family first liens 2,180 2,180 — 2,494 2,533 — One- to four- family junior liens — — — 1,297 1,308 — Total residential real estate 2,180 2,180 — 3,791 3,841 — Consumer — — — 17 33 — Total $ 11,524 $ 12,384 $ — $ 28,701 $ 30,468 $ — With an allowance recorded: Agricultural $ 1,854 $ 1,858 $ 208 $ 1,560 $ 1,560 $ 51 Commercial and industrial 3,990 3,990 763 1,231 1,258 489 Credit cards — — — — — — Commercial real estate: Construction and development — — — 34 34 34 Farmland — — — 69 69 3 Multifamily 159 159 42 224 224 73 Commercial real estate-other 5,416 5,416 2,472 6,476 6,478 2,676 Total commercial real estate 5,575 5,575 2,514 6,803 6,805 2,786 Residential real estate: One- to four- family first liens 1,351 1,349 255 1,919 2,056 383 One- to four- family junior liens — — — 15 15 4 Total residential real estate 1,351 1,349 255 1,934 2,071 387 Consumer — — — 9 9 1 Total $ 12,770 $ 12,772 $ 3,740 $ 11,537 $ 11,703 $ 3,714 Total: Agricultural $ 3,120 $ 3,624 $ 208 $ 3,072 $ 3,644 $ 51 Commercial and industrial 7,755 7,764 763 7,718 8,010 489 Credit cards — — — — — — Commercial real estate: Construction and development — — — 355 482 34 Farmland 2,414 2,564 — 2,780 2,939 3 Multifamily 159 159 42 1,856 2,022 73 Commercial real estate-other 7,315 7,516 2,472 18,706 19,120 2,676 Total commercial real estate 9,888 10,239 2,514 23,697 24,563 2,786 Residential real estate: One- to four- family first liens 3,531 3,529 255 4,413 4,589 383 One- to four- family junior liens — — — 1,312 1,323 4 Total residential real estate 3,531 3,529 255 5,725 5,912 387 Consumer — — — 26 42 1 Total $ 24,294 $ 25,156 $ 3,740 $ 40,238 $ 42,171 $ 3,714 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: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Average Recorded Investment Interest Income Recognized 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 $ 1,266 $ 27 $ 1,517 $ 71 $ 1,291 $ 13 $ 1,541 $ 86 Commercial and industrial 3,777 — 1,063 52 3,927 10 1,695 82 Credit cards — — — — — — — — Commercial real estate: Construction and development — — 49 — — — 49 — Farmland 2,568 49 2,358 128 2,580 28 2,377 155 Multifamily — — — — — — — — Commercial real estate-other 1,979 12 1,542 4 2,009 3 1,547 12 Total commercial real estate 4,547 61 3,949 132 4,589 31 3,973 167 Residential real estate: One- to four- family first liens 2,200 44 1,241 3 2,209 23 1,239 — One- to four- family junior liens — — 90 — — — 90 — Total residential real estate 2,200 44 1,331 3 2,209 23 1,329 — Consumer — — 21 1 — — 22 1 Total $ 11,790 $ 132 $ 7,881 $ 259 $ 12,016 $ 77 $ 8,560 $ 336 With an allowance recorded: Agricultural $ 1,856 $ 20 $ 1,561 $ 61 $ 1,878 $ 7 $ 1,579 $ 73 Commercial and industrial 3,863 10 3,118 18 3,724 14 2,426 27 Credit cards — — — — — — — — Commercial real estate: Construction and development — — 34 — — — 34 — Farmland — — 69 3 — — 71 4 Multifamily 158 — — — 158 — — — Commercial real estate-other 5,416 — 356 9 2,415 — 357 12 Total commercial real estate 5,574 — 459 12 2,573 — 462 16 Residential real estate: One- to four- family first liens 1,351 19 1,089 16 1,357 11 1,092 25 One- to four- family junior liens — — 71 — — — 71 — Total residential real estate 1,351 19 1,160 16 1,357 11 1,163 25 Consumer — — 9 — — — 10 — Total $ 12,644 $ 49 $ 6,307 $ 107 $ 9,532 $ 32 $ 5,640 $ 141 Total: Agricultural $ 3,122 $ 47 $ 3,078 $ 132 $ 3,169 $ 20 $ 3,120 $ 159 Commercial and industrial 7,640 10 4,181 70 7,651 24 4,121 109 Credit cards — — — — — — — — Commercial real estate: Construction and development — — 83 — — — 83 — Farmland 2,568 49 2,427 131 2,580 28 2,448 159 Multifamily 158 — — — 158 — — — Commercial real estate-other 7,395 12 1,898 13 4,424 3 1,904 24 Total commercial real estate 10,121 61 4,408 144 7,162 31 4,435 183 Residential real estate: One- to four- family first liens 3,551 63 2,330 19 3,566 34 2,331 25 One- to four- family junior liens — — 161 — — — 161 — Total residential real estate 3,551 63 2,491 19 3,566 34 2,492 25 Consumer — — 30 1 — — 32 1 Total $ 24,434 $ 181 $ 14,188 $ 366 $ 21,548 $ 109 $ 14,200 $ 477 The following table presents the contractual aging of the recorded investment in past due loans by class of loans at June 30, 2016 and December 31, 2015 : 30 - 59 Days Past Due 60 - 8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
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. No impairment was recorded on either the goodwill or the trade name intangible assets during the six months ended June 30, 2016 . The carrying amount of goodwill was $64.7 million at June 30, 2016 and $64.5 million at December 31, 2015 . The increase of $0.1 million in goodwill was due to the finalization of merger accounting issues related to the Central merger. In addition to goodwill, the Company recognized a $12.7 million core deposit intangible, and a $1.4 million trade name intangible in 2015 due to the Central merger. The following table presents the changes in the carrying amount of intangibles (excluding goodwill), gross carrying amount, accumulated amortization, and net book value as of June 30, 2016 : Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Finite-Lived Trade Name Intangible Customer List Intangible Total (in thousands) June 30, 2016 Balance, beginning of period $ 275 $ 10,480 $ 7,040 $ 1,203 $ 143 $ 19,141 Additions from business combination — — — — — — Amortization expense (36 ) (1,905 ) — (125 ) (10 ) (2,076 ) Balance at end of period $ 239 $ 8,575 $ 7,040 $ 1,078 $ 133 $ 17,065 Gross carrying amount $ 1,320 $ 18,206 $ 7,040 $ 1,380 $ 330 $ 28,276 Accumulated amortizations (1,081 ) (9,631 ) — (302 ) (197 ) (11,211 ) Net book value $ 239 $ 8,575 $ 7,040 $ 1,078 $ 133 $ 17,065 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Other Assets Disclosure [Text Block] | Other Assets The components of the Company’s other assets were as follows: June 30, 2016 December 31, 2015 (in thousands) Federal Home Loan Bank Stock $ 10,707 $ 9,832 FDIC indemnification asset, net 3,008 4,274 Prepaid expenses 2,457 2,271 Mortgage servicing rights 2,025 2,249 Federal & state income taxes receivable, current 1,059 1,079 Accounts receivable & other miscellaneous assets 2,211 2,104 $ 21,467 $ 21,809 MidWest One Bank is a member of the FHLB of Des Moines, and ownership of FHLB stock is a requirement for membership in the FHLB Des Moines. The amount of FHLB stock MidWest One Bank is 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. Redemption of this investment is at the option of the FHLB. No impairment was recorded on FHLB stock in the six months ended June 30, 2016 or in the year ended December 31, 2015 . Redemption of this investment is at the option of the FHLB. As part of the Central merger, the Company became a party to certain loss-share agreements with the FDIC from previous Central-related acquisitions. These agreements cover realized losses on loans and foreclosed real estate for specified periods. These 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 cash flows available for loss-share based on the credit adjustments estimated for each loan. The loss-share assets are recorded within other assets on the balance sheet. Mortgage servicing rights are recorded at fair value based on assumptions provided by 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. |
Short-Term Borrowings
Short-Term Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
Short-term Debt [Abstract] | |
Short-term Debt [Text Block] | Short-Term Borrowings Short-term borrowings were as follows as of June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance Federal funds purchased — % $ — 0.34 % $ 1,500 Securities sold under agreements to repurchase 0.22 60,458 0.31 67,463 Total 0.22 % $ 60,458 0.31 % $ 68,963 At June 30, 2016 and December 31, 2015 , the Company had no borrowings through the Federal Reserve Discount Window, while the borrowing capacity was $12.0 million as of both June 30, 2016 and December 31, 2015 . As of June 30, 2016 and December 31, 2015 , MidWest One Bank had municipal securities pledged with a market value of $13.3 million pledged to the Federal Reserve to secure potential borrowings. The Company also has various other unsecured federal funds agreements with correspondent banks. As of June 30, 2016 and December 31, 2015 , there were zero and $1.5 million of borrowings through these correspondent bank federal funds agreements, respectively. Securities sold under agreements to repurchase are agreements in which the Company acquires funds by selling assets to another party under a simultaneous agreement to repurchase the same assets at a specified price and date. The Company enters into repurchase agreements and also offers a demand deposit account product to customers that sweeps their balances in excess of an agreed upon target amount into overnight repurchase agreements. All securities sold under agreements to repurchase are recorded on the face of the balance sheet. 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 plus 2.00% . The line was renewed in April 2016, and is now scheduled to mature on April 27, 2017 . The Company had no balance outstanding under this agreement as of June 30, 2016 . |
Subordinated Notes Payable
Subordinated Notes Payable | 6 Months Ended |
Jun. 30, 2016 | |
Junior Subordinated Notes [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | Subordinated Notes Payable The Company has established three statutory business trusts under the laws of the state of Delaware: Central Bancshares Capital Trust II, Barron Investment Capital Trust I, and MidWestOne Statutory Trust II. The trusts exist for the exclusive purposes of (i) issuing trust securities representing undivided beneficial interests in the assets of the respective 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 June 30, 2016 and December 31, 2015 : Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 6/30/2016 June 30, 2016 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,583 Three-month LIBOR + 3.50% 4.15 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,593 Three-month LIBOR + 2.15% 2.79 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 2.24 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,640 Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 12/31/2015 December 31, 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 (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. |
Long-term Borrowings
Long-term Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance FHLB Borrowings 1.72 % $ 107,000 1.64 % $ 87,000 Note payable to unaffiliated bank 2.21 20,000 2.17 22,500 Total 1.80 % $ 127,000 1.75 % $ 109,500 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, MidWest One Bank may borrow funds from the FHLB in amounts up to 35% of MidWest One Bank’s total assets, provided MidWest One Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. Advances from the FHLB are collateralized primarily by one- to four- family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 6 “Loans Receivable and the Allowance for Loan Losses” of the notes to the consolidated financial statements. 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 , which began September 30, 2015 . As of June 30, 2016 , $20.0 million of that note was outstanding. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The income tax provisions for the three and six months ended June 30, 2016 and 2015 were less than the amounts computed by applying the maximum effective federal income tax rate of 35% to the income before income taxes, because of the following items: For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Expected provision $ 2,292 35.0 % $ 2,472 35.0 % $ 4,899 35.0 % $ 4,737 35.0 % Tax-exempt interest (745 ) (11.4 ) (665 ) (9.4 ) (1,499 ) (10.7 ) (1,335 ) (9.9 ) Bank-owned life insurance (115 ) (1.8 ) (110 ) (1.6 ) (249 ) (1.8 ) (213 ) (1.6 ) State income taxes, net of federal income tax benefit 327 5.0 313 4.4 647 4.6 513 3.8 Non-deductible acquisition expenses 28 0.4 590 8.4 53 0.4 655 4.8 General business credits (14 ) (0.2 ) (8 ) (0.1 ) (153 ) (1.1 ) (16 ) (0.1 ) Other 21 0.3 2 — 1 — (72 ) (0.5 ) Total income tax provision $ 1,794 27.3 % $ 2,594 36.7 % $ 3,699 26.4 % $ 4,269 31.5 % The Company also recognized income tax expense pertaining to state franchise and income taxes payable by MidWest One Bank. |
Estimated Fair Value of Financi
Estimated Fair Value of Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 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 (1) independent, (2) knowledgeable, (3) able to transact and (4) 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 for identical assets or liabilities in active markets 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 June 30, 2016 and December 31, 2015 . There were no liabilities subject to fair value measurement 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 June 30, 2016 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 $ 6,123 $ — $ 6,123 $ — State and political subdivisions 169,964 — 169,964 — Mortgage-backed securities 45,529 — 45,529 — Collateralized mortgage obligations 104,531 — 104,531 — Corporate debt securities 43,431 — 43,431 — Total available for sale debt securities 369,578 — 369,578 — Other equity securities 1,277 1,277 — — Total securities available for sale $ 370,855 $ 1,277 $ 369,578 $ — Fair Value Measurement at December 31, 2015 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. 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 $ — There were no transfers of assets between levels of the fair value hierarchy during the three and six months ended June 30, 2016 or the year ended December 31, 2015 . There have been no changes in valuation techniques used for any assets measured at fair value during the three and six months ended June 30, 2016 or the year ended December 31, 2015 . 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 assets 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 June 30, 2016 and December 31, 2015 , as more fully described above. Fair Value Measurement at June 30, 2016 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: Collateral dependent impaired loans $ 7,467 $ — $ — $ 7,467 Other real estate owned $ 4,143 $ — $ — $ 4,143 Fair Value Measurement at December 31, 2015 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: Collateral dependent impaired loans $ 23,812 $ — $ — $ 23,812 Other real estate owned $ 8,834 $ — $ — $ 8,834 The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at June 30, 2016 and December 31, 2015 . 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 capitalization and franchise value of MidWest One Bank. Neither of these components has been given consideration in the presentation of fair values below. June 30, 2016 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 $ 110,958 $ 110,958 $ 110,958 $ — $ — Investment securities: Available for sale 370,855 370,855 1,277 369,578 — Held to maturity 125,885 127,815 — 127,815 — Total investment securities 496,740 498,670 1,277 497,393 — Loans held for sale 5,048 5,124 — — 5,124 Loans, net 2,146,929 2,149,997 — 2,149,997 — Accrued interest receivable 12,171 12,171 12,171 — — Federal Home Loan Bank stock 10,707 10,707 — 10,707 — Financial liabilities: Deposits: Non-interest bearing demand 536,052 536,052 536,052 — — Interest-bearing checking 1,073,023 1,073,023 1,073,023 — — Savings 195,887 195,887 195,887 — — Certificates of deposit under $100,000 336,744 337,145 — 337,145 — Certificates of deposit $100,000 and over 321,855 322,881 — 322,881 — Total deposits 2,463,561 2,464,988 1,804,962 660,026 — Federal funds purchased and securities sold under agreements to repurchase 60,458 60,458 60,458 — — Federal Home Loan Bank borrowings 107,000 108,246 — 108,246 — Junior subordinated notes issued to capital trusts 23,640 18,999 — 18,999 — Long-term debt 20,000 20,000 — 20,000 — Accrued interest payable 1,620 1,620 1,620 — — 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 — 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 — — • 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. • 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 non-interest bearing demand deposits, savings accounts and certain interest-bearing checking 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), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company at June 30, 2016 , categorized within Level 3 of the fair value hierarchy: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at June 30, 2016 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans $ 7,467 Modified appraised value Third party appraisal NM * NM * NM * Appraisal discount NM * NM * NM * Other real estate owned $ 4,143 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. |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Operating Segments The Company’s activities are considered to be a single industry segment for financial reporting purposes. The Company is engaged in the business of commercial and retail banking, investment management and insurance services with operations throughout central and eastern Iowa, the Twin Cities area of Minnesota and Wisconsin, and Florida. Substantially all income is derived from a diverse base of commercial, mortgage and retail lending activities, and investments. |
Branch Sales
Branch Sales | 6 Months Ended |
Jun. 30, 2016 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Branch Sale On May 9, 2016, MidWest One Bank entered into an agreement to sell its Davenport, Iowa branch to CBI Bank and Trust (“CBI Bank”) headquartered in Muscatine, Iowa, a unit of Central Bancshares, Inc. of Muscatine, Iowa. Subject to regulatory approval, CBI Bank will assume approximately $12.0 million in deposits and $33.0 million in loans, with an expected completion date in August 2016. The Company expects to realize a gain from the transaction. |
Effect of New Financial Account
Effect of New Financial Accounting Standards | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Effect of New Financial Accounting Standards 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 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 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. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718) . The guidance involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard applies to public business entities for annual periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is still evaluating the effect of this guidance on the Company’s consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments . The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The amendment requires the use of a new model covering current expected credit losses (CECL), which will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. Upon initial recognition of the exposure, the CECL model requires an entity to estimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses (ECL) should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments. The new guidance also amends the current available for sale (AFS) security OTTI model for debt securities. The new model will require an estimate of ECL only when the fair value is below the amortized cost of the asset. The length of time the fair value of an AFS debt security has been below the amortized cost will no longer impact the determination of whether a credit loss exists. As such, it is no longer an other-than-temporary model. Finally, the purchased financial assets with credit deterioration (PCD) model applies to purchased financial assets (measured at amortized cost or AFS) that have experienced more than insignificant credit deterioration since origination. This represents a change from the scope of what are considered purchased credit-impaired assets under today’s model. Different than the accounting for originated or purchased assets that do not qualify as PCD, the initial estimate of expected credit losses for a PCD would be recognized through an allowance for loan and lease losses with an offset to the cost basis of the related financial asset at acquisition. The new standard applies to public business entities that are SEC filers in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 31, 2018, including interim periods within those fiscal years. The Company is still evaluating the effect of this guidance on the Company’s consolidated financial statements, but it is expected to be material. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 , but prior to the date the consolidated financial statements were issued, that provided additional evidence about conditions that existed at June 30, 2016 have been recognized in the consolidated financial statements for the three and six months ended June 30, 2016 . Events or transactions that provided evidence about conditions that did not exist at June 30, 2016 , but arose before the consolidated financial statements were issued, have not been recognized in the consolidated financial statements for the three and six months ended June 30, 2016 . On July 21, 2016 , the board of directors of the Company approved a share repurchase program, allowing for the repurchase of up to $5.0 million of stock through December 31, 2018 . The repurchase program replaced the Company’s prior repurchase program. Pursuant to the repurchase 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. On July 21, 2016 , the board of directors of the Company declared a cash dividend of $0.16 per share payable on September 15, 2016 to shareholders of record as of the close of business on September 1, 2016 . |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Certain Loans and Debt Securities Acquired in Transfer, Recognizing Interest Income on Impaired Loans, Policy [Policy Text Block] | Purchased Loans Policy 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 value 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 reasonably estimate cash flows to be expected, it may use the cost-recovery method or cash-basis method of income recognition. |
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, in whole or in part, 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. MidWest One 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, Allowance for Loan Losses Policy [Policy Text Block] | The Allowance for Loan and Lease Losses 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 inexactness. Given the inherently imprecise nature of calculating the necessary ALLL, the Company’s policy permits the actual ALLL to be between 20% above and 5% below the “indicated reserve.” |
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. A loan modification is a change in an existing loan contract that has been agreed to by the borrower and MidWest One Bank, which may or may not be a troubled debt restructure or “TDR.” All loans deemed TDR are considered impaired. A loan is considered a TDR when, for economic or legal reasons related to a borrower’s financial difficulties, a concession is granted to the borrower that would not otherwise be considered. Both financial distress on the part of the borrower and MidWest One Bank’s granting of a concession, which are detailed further below, must be present in order for the loan to be considered a TDR. All of the following factors are indicators that the debtor is experiencing financial difficulties (one or more items may be present): • The debtor is currently in default on any of its debt. • The debtor has declared or is in the process of declaring bankruptcy. • There is significant doubt as to whether the debtor will continue to be a going concern. • Currently, the debtor has securities being held as collateral that have been delisted, are in the process of being delisted, or are under threat of being delisted from an exchange. • Based on estimates and projections that only encompass the current business capabilities, the debtor forecasts that its entity-specific cash flows will be insufficient to service the debt (both interest and principal) in accordance with the contractual terms of the existing agreement through maturity. • Absent the current modification, the debtor cannot obtain funds from sources other than the existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor. The following factors are potential indicators that a concession has been granted (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. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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 (1) independent, (2) knowledgeable, (3) able to transact and (4) 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 for identical assets or liabilities in active markets 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. |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 64,654 Core deposit intangible 12,773 Trade name intangible 1,380 FDIC indemnification asset 3,753 Other real estate owned 8,420 Other assets 14,482 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 Total identifiable 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 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table provides the unaudited pro forma information for the results of operations for the three and six months ended June 30, 2015 , as if the acquisition had occurred January 1, 2015. 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, 2015. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. Net income in the table below includes merger expenses. Pro Forma Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2015 2015 Total revenues (net interest income plus noninterest income) $ 31,634 $ 65,078 Net income $ 5,236 $ 12,875 The pro forma information above excludes the impact of any provision recorded related to renewing Central loans. Revenues and earnings |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | The following table presents the computation of earnings per common share for the respective periods: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share amounts) 2016 2015 2016 2015 Basic earnings per common share computation Numerator: Net income $ 4,755 $ 4,469 $ 10,299 $ 9,265 Denominator: Weighted average shares outstanding 11,431,252 10,229,355 11,424,122 9,301,761 Basic earnings per common share $ 0.42 $ 0.43 $ 0.90 $ 1.00 Diluted earnings per common share computation Numerator: Net income $ 4,755 $ 4,469 $ 10,299 $ 9,265 Denominator: Weighted average shares outstanding, including all dilutive potential shares 11,453,831 10,254,279 11,448,677 9,328,941 Diluted earnings per common share $ 0.42 $ 0.42 $ 0.90 $ 0.99 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: As of June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) U.S. Government agencies and corporations $ 6,027 $ 96 $ — $ 6,123 State and political subdivisions 162,480 7,487 3 169,964 Mortgage-backed securities 44,766 767 4 45,529 Collateralized mortgage obligations 104,401 782 652 104,531 Corporate debt securities 43,025 422 16 43,431 Total debt securities 360,699 9,554 675 369,578 Other equity securities 1,255 40 18 1,277 Total $ 361,954 $ 9,594 $ 693 $ 370,855 As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) 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 $ 421,740 $ 7,751 $ 2,250 $ 427,241 |
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: As of June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) State and political subdivisions $ 72,330 $ 1,938 $ 41 $ 74,227 Mortgage-backed securities 2,870 31 — 2,901 Collateralized mortgage obligations 28,154 149 70 28,233 Corporate debt securities 22,531 260 337 22,454 Total $ 125,885 $ 2,378 $ 448 $ 127,815 As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) 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 |
Schedule of Temporary Impairment Losses, Investments [Table Text Block] | The following tables present information pertaining to securities with gross unrealized losses as of June 30, 2016 and December 31, 2015 , aggregated by investment category and length of time that individual securities have been in a continuous loss position: As of June 30, 2016 Number of Securities Less than 12 Months 12 Months or More Total Available for Sale Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 2 $ — $ — $ 639 $ 3 $ 639 $ 3 Mortgage-backed securities 8 701 3 118 1 819 4 Collateralized mortgage obligations 6 15,619 240 19,092 412 34,711 652 Corporate debt securities 2 7,312 16 — — 7,312 16 Other equity securities 1 — — 982 18 982 18 Total 19 $ 23,632 $ 259 $ 20,831 $ 434 $ 44,463 $ 693 As of December 31, 2015 Number of Securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses 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 June 30, 2016 Number of Securities Less than 12 Months 12 Months or More Total Held to Maturity Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 10 $ 3,511 $ 40 $ 250 $ 1 $ 3,761 $ 41 Collateralized mortgage obligations 5 6,037 1 11,976 69 18,013 70 Corporate debt securities 3 — — 4,935 337 4,935 337 Total 18 $ 9,548 $ 41 $ 17,161 $ 407 $ 26,709 $ 448 As of December 31, 2015 Number of Securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses 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 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturity distribution of investment debt securities at June 30, 2016 , 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 $ 14,821 $ 14,895 $ — $ — Due after one year through five years 85,564 88,068 7,360 7,462 Due after five years through ten years 95,480 100,338 51,114 52,516 Due after ten years 15,667 16,217 36,387 36,703 Debt securities without a single maturity date 149,167 150,060 31,024 31,134 Total $ 360,699 $ 369,578 $ 125,885 $ 127,815 |
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 on investments for the three and six months ended June 30, 2016 and 2015 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Available for sale fixed maturity securities: Gross realized gains $ 223 $ 824 $ 467 $ 1,265 Gross realized losses — (368 ) — (442 ) Other-than-temporary impairment — — — — 223 456 467 823 Equity securities: Gross realized gains — — — 188 Gross realized losses — — — — Other-than-temporary impairment — — — — — — — 188 Total net realized gains and losses $ 223 $ 456 $ 467 $ 1,011 |
Loans Receivable and the Allo30
Loans Receivable and the Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 and based on impairment method are as follows: Allowance for Loan Losses and Recorded Investment in Loan Receivables As of June 30, 2016 and December 31, 2015 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total June 30, 2016 Allowance for loan losses: Individually evaluated for impairment $ 208 $ 763 $ 2,514 $ 255 $ — $ 3,740 Collectively evaluated for impairment 2,146 4,622 7,909 1,968 367 17,012 Purchased credit impaired loans — — 205 240 — 445 Total $ 2,354 $ 5,385 $ 10,628 $ 2,463 $ 367 $ 21,197 Loans receivable Individually evaluated for impairment $ 3,120 $ 7,755 $ 9,888 $ 3,531 $ — $ 24,294 Collectively evaluated for impairment 118,402 474,910 993,101 496,937 37,188 2,120,538 Purchased credit impaired loans — — 17,176 6,118 — 23,294 Total $ 121,522 $ 482,665 $ 1,020,165 $ 506,586 $ 37,188 $ 2,168,126 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total December 31, 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 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The changes in the allowance for loan losses by portfolio segment are as follows: Allowance for Loan Loss Activity For the Three Months Ended June 30, 2016 and 2015 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2016 Beginning balance $ 2,235 $ 4,680 $ 9,713 $ 3,429 $ 188 $ — $ 20,245 Charge-offs — — (1 ) (354 ) (77 ) — (432 ) Recoveries 1 60 127 13 12 — 213 Provision 118 645 789 (625 ) 244 — 1,171 Ending balance $ 2,354 $ 5,385 $ 10,628 $ 2,463 $ 367 $ — $ 21,197 2015 Beginning balance $ 1,612 $ 5,518 $ 5,756 $ 3,083 $ 285 $ 272 $ 16,526 Charge-offs — (44 ) (191 ) (38 ) (19 ) — (292 ) Recoveries — 12 6 8 6 — 32 Provision (132 ) (61 ) 195 171 65 663 901 Ending balance $ 1,480 $ 5,425 $ 5,766 $ 3,224 $ 337 $ 935 $ 17,167 Allowance for Loan Loss Activity For the Six Months Ended June 30, 2016 and 2015 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2016 Beginning balance $ 1,417 $ 5,451 $ 8,556 $ 3,968 $ 409 $ (374 ) $ 19,427 Charge-offs (125 ) (10 ) (41 ) (513 ) (127 ) — (816 ) Recoveries 7 72 180 77 14 — 350 Provision 1,055 (128 ) 1,933 (1,069 ) 71 374 2,236 Ending balance $ 2,354 $ 5,385 $ 10,628 $ 2,463 $ 367 $ — $ 21,197 2015 Beginning balance $ 1,506 $ 5,780 $ 4,399 $ 3,167 $ 323 $ 1,188 $ 16,363 Charge-offs — (291 ) (191 ) (548 ) (52 ) — (1,082 ) Recoveries — 351 6 12 16 — 385 Provision (26 ) (415 ) 1,552 593 50 (253 ) 1,501 Ending balance $ 1,480 $ 5,425 $ 5,766 $ 3,224 $ 337 $ 935 $ 17,167 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | Three Months Ended June 30, 2016 2015 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) : Total — $ — $ — — $ — $ — Six Months Ended June 30, 2016 2015 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) : Agricultural Extended maturity date 1 $ 25 $ 25 — $ — $ — Residential real estate: One- to four- family first liens Interest rate reduction 1 104 104 — — — One- to four- family junior liens Interest rate reduction 1 71 71 — — — Total 3 $ 200 $ 200 — $ — $ — (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 as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Number of Contracts Recorded Investment 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: Total — $ — — $ — — $ — — $ — (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] | Pass Special Mention/ Watch Substandard Doubtful Loss Total (in thousands) June 30, 2016 Agricultural $ 106,027 $ 12,366 $ 3,037 $ — $ 92 $ 121,522 Commercial and industrial 447,153 14,317 19,674 9 — 481,153 Credit cards 1,512 — — — — 1,512 Commercial real estate: Construction and development 124,172 2,407 2,601 — — 129,180 Farmland 84,461 5,756 2,628 — — 92,845 Multifamily 119,026 364 1,862 — — 121,252 Commercial real estate-other 637,048 20,417 19,423 — — 676,888 Total commercial real estate 964,707 28,944 26,514 — — 1,020,165 Residential real estate: One- to four- family first liens 369,781 3,264 11,250 — — 384,295 One- to four- family junior liens 118,243 1,997 2,051 — — 122,291 Total residential real estate 488,024 5,261 13,301 — — 506,586 Consumer 36,937 2 211 38 — 37,188 Total $ 2,044,360 $ 60,890 $ 62,737 $ 47 $ 92 $ 2,168,126 Pass Special Mention/ Watch Substandard Doubtful Loss Total (in thousands) December 31, 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 and 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 |
Impaired Financing Receivables [Table Text Block] | June 30, 2016 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (in thousands) With no related allowance recorded: Agricultural $ 1,266 $ 1,766 $ — $ 1,512 $ 2,084 $ — Commercial and industrial 3,765 3,774 — 6,487 6,752 — Credit cards — — — — — — Commercial real estate: Construction and development — — — 321 448 — Farmland 2,414 2,564 — 2,711 2,870 — Multifamily — — — 1,632 1,798 — Commercial real estate-other 1,899 2,100 — 12,230 12,642 — Total commercial real estate 4,313 4,664 — 16,894 17,758 — Residential real estate: One- to four- family first liens 2,180 2,180 — 2,494 2,533 — One- to four- family junior liens — — — 1,297 1,308 — Total residential real estate 2,180 2,180 — 3,791 3,841 — Consumer — — — 17 33 — Total $ 11,524 $ 12,384 $ — $ 28,701 $ 30,468 $ — With an allowance recorded: Agricultural $ 1,854 $ 1,858 $ 208 $ 1,560 $ 1,560 $ 51 Commercial and industrial 3,990 3,990 763 1,231 1,258 489 Credit cards — — — — — — Commercial real estate: Construction and development — — — 34 34 34 Farmland — — — 69 69 3 Multifamily 159 159 42 224 224 73 Commercial real estate-other 5,416 5,416 2,472 6,476 6,478 2,676 Total commercial real estate 5,575 5,575 2,514 6,803 6,805 2,786 Residential real estate: One- to four- family first liens 1,351 1,349 255 1,919 2,056 383 One- to four- family junior liens — — — 15 15 4 Total residential real estate 1,351 1,349 255 1,934 2,071 387 Consumer — — — 9 9 1 Total $ 12,770 $ 12,772 $ 3,740 $ 11,537 $ 11,703 $ 3,714 Total: Agricultural $ 3,120 $ 3,624 $ 208 $ 3,072 $ 3,644 $ 51 Commercial and industrial 7,755 7,764 763 7,718 8,010 489 Credit cards — — — — — — Commercial real estate: Construction and development — — — 355 482 34 Farmland 2,414 2,564 — 2,780 2,939 3 Multifamily 159 159 42 1,856 2,022 73 Commercial real estate-other 7,315 7,516 2,472 18,706 19,120 2,676 Total commercial real estate 9,888 10,239 2,514 23,697 24,563 2,786 Residential real estate: One- to four- family first liens 3,531 3,529 255 4,413 4,589 383 One- to four- family junior liens — — — 1,312 1,323 4 Total residential real estate 3,531 3,529 255 5,725 5,912 387 Consumer — — — 26 42 1 Total $ 24,294 $ 25,156 $ 3,740 $ 40,238 $ 42,171 $ 3,714 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: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Average Recorded Investment Interest Income Recognized 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 $ 1,266 $ 27 $ 1,517 $ 71 $ 1,291 $ 13 $ 1,541 $ 86 Commercial and industrial 3,777 — 1,063 52 3,927 10 1,695 82 Credit cards — — — — — — — — Commercial real estate: Construction and development — — 49 — — — 49 — Farmland 2,568 49 2,358 128 2,580 28 2,377 155 Multifamily — — — — — — — — Commercial real estate-other 1,979 12 1,542 4 2,009 3 1,547 12 Total commercial real estate 4,547 61 3,949 132 4,589 31 3,973 167 Residential real estate: One- to four- family first liens 2,200 44 1,241 3 2,209 23 1,239 — One- to four- family junior liens — — 90 — — — 90 — Total residential real estate 2,200 44 1,331 3 2,209 23 1,329 — Consumer — — 21 1 — — 22 1 Total $ 11,790 $ 132 $ 7,881 $ 259 $ 12,016 $ 77 $ 8,560 $ 336 With an allowance recorded: Agricultural $ 1,856 $ 20 $ 1,561 $ 61 $ 1,878 $ 7 $ 1,579 $ 73 Commercial and industrial 3,863 10 3,118 18 3,724 14 2,426 27 Credit cards — — — — — — — — Commercial real estate: Construction and development — — 34 — — — 34 — Farmland — — 69 3 — — 71 4 Multifamily 158 — — — 158 — — — Commercial real estate-other 5,416 — 356 9 2,415 — 357 12 Total commercial real estate 5,574 — 459 12 2,573 — 462 16 Residential real estate: One- to four- family first liens 1,351 19 1,089 16 1,357 11 1,092 25 One- to four- family junior liens — — 71 — — — 71 — Total residential real estate 1,351 19 1,160 16 1,357 11 1,163 25 Consumer — — 9 — — — 10 — Total $ 12,644 $ 49 $ 6,307 $ 107 $ 9,532 $ 32 $ 5,640 $ 141 Total: Agricultural $ 3,122 $ 47 $ 3,078 $ 132 $ 3,169 $ 20 $ 3,120 $ 159 Commercial and industrial 7,640 10 4,181 70 7,651 24 4,121 109 Credit cards — — — — — — — — Commercial real estate: Construction and development — — 83 — — — 83 — Farmland 2,568 49 2,427 131 2,580 28 2,448 159 Multifamily 158 — — — 158 — — — Commercial real estate-other 7,395 12 1,898 13 4,424 3 1,904 24 Total commercial real estate 10,121 61 4,408 144 7,162 31 4,435 183 Residential real estate: One- to four- family first liens 3,551 63 2,330 19 3,566 34 2,331 25 One- to four- family junior liens — — 161 — — — 161 — Total residential real estate 3,551 63 2,491 19 3,566 34 2,492 25 Consumer — — 30 1 — — 32 1 Total $ 24,434 $ 181 $ 14,188 $ 366 $ 21,548 $ 109 $ 14,200 $ 477 |
Past Due Financing Receivables [Table Text Block] | The following table presents the contractual aging of the recorded investment in past due loans by class of loans at June 30, 2016 and December 31, 2015 : 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) June 30, 2016 Agricultural $ 260 $ 453 $ 559 $ 1,272 $ 120,250 $ 121,522 Commercial and industrial 3,913 983 5,987 10,883 470,270 481,153 Credit cards — — — — 1,512 1,512 Commercial real estate: Construction and development 353 33 314 700 128,480 129,180 Farmland 235 98 — 333 92,512 92,845 Multifamily — — 225 225 121,027 121,252 Commercial real estate-other 5,736 667 6,792 13,195 663,693 676,888 Total commercial real estate 6,324 798 7,331 14,453 1,005,712 1,020,165 Residential real estate: One- to four- family first liens 2,258 686 1,159 4,103 380,192 384,295 One- to four- family junior liens 734 293 655 1,682 120,609 122,291 Total residential real estate 2,992 979 1,814 5,785 500,801 506,586 Consumer 91 12 22 125 37,063 37,188 Total $ 13,580 $ 3,225 $ 15,713 $ 32,518 $ 2,135,608 $ 2,168,126 Included in the totals above are the following purchased credit impaired loans $ 403 $ 766 $ 234 $ 1,403 $ 21,890 $ 23,293 December 31, 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 and 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 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | The following table sets forth the composition of the Company’s recorded investment in loans on nonaccrual status and past due 90 days or more and still accruing by class of loans, excluding purchased credit impaired loans, as of June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 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 $ 595 $ 30 $ 172 $ — Commercial and industrial 5,931 56 575 — Credit cards — — — — Commercial real estate: Construction and development 75 112 95 — Farmland 236 — 20 80 Multifamily 225 — 224 — Commercial real estate-other 6,776 16 1,452 — Total commercial real estate 7,312 128 1,791 80 Residential real estate: One- to four- family first liens 1,065 546 1,182 199 One- to four- family junior liens 32 535 281 — Total residential real estate 1,097 1,081 1,463 199 Consumer 15 7 11 5 Total $ 14,950 $ 1,302 $ 4,012 $ 284 |
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 three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Balance at beginning of period $ 845 $ — $ 1,446 $ — Purchases — 1,882 — 1,882 Accretion (509 ) (43 ) (1,110 ) (43 ) Reclassification from nonaccretable difference 3,208 — 3,208 — Balance at end of period $ 3,544 $ 1,839 $ 3,544 $ 1,839 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, and net book value as of June 30, 2016 : Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Finite-Lived Trade Name Intangible Customer List Intangible Total (in thousands) June 30, 2016 Balance, beginning of period $ 275 $ 10,480 $ 7,040 $ 1,203 $ 143 $ 19,141 Additions from business combination — — — — — — Amortization expense (36 ) (1,905 ) — (125 ) (10 ) (2,076 ) Balance at end of period $ 239 $ 8,575 $ 7,040 $ 1,078 $ 133 $ 17,065 Gross carrying amount $ 1,320 $ 18,206 $ 7,040 $ 1,380 $ 330 $ 28,276 Accumulated amortizations (1,081 ) (9,631 ) — (302 ) (197 ) (11,211 ) Net book value $ 239 $ 8,575 $ 7,040 $ 1,078 $ 133 $ 17,065 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | The components of the Company’s other assets were as follows: June 30, 2016 December 31, 2015 (in thousands) Federal Home Loan Bank Stock $ 10,707 $ 9,832 FDIC indemnification asset, net 3,008 4,274 Prepaid expenses 2,457 2,271 Mortgage servicing rights 2,025 2,249 Federal & state income taxes receivable, current 1,059 1,079 Accounts receivable & other miscellaneous assets 2,211 2,104 $ 21,467 $ 21,809 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Short-term Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings were as follows as of June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance Federal funds purchased — % $ — 0.34 % $ 1,500 Securities sold under agreements to repurchase 0.22 60,458 0.31 67,463 Total 0.22 % $ 60,458 0.31 % $ 68,963 |
Subordinated Notes Payable (Tab
Subordinated Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 : Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 6/30/2016 June 30, 2016 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,583 Three-month LIBOR + 3.50% 4.15 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,593 Three-month LIBOR + 2.15% 2.79 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 2.24 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,640 Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 12/31/2015 December 31, 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 (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) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance FHLB Borrowings 1.72 % $ 107,000 1.64 % $ 87,000 Note payable to unaffiliated bank 2.21 20,000 2.17 22,500 Total 1.80 % $ 127,000 1.75 % $ 109,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income tax provisions for the three and six months ended June 30, 2016 and 2015 were less than the amounts computed by applying the maximum effective federal income tax rate of 35% to the income before income taxes, because of the following items: For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Expected provision $ 2,292 35.0 % $ 2,472 35.0 % $ 4,899 35.0 % $ 4,737 35.0 % Tax-exempt interest (745 ) (11.4 ) (665 ) (9.4 ) (1,499 ) (10.7 ) (1,335 ) (9.9 ) Bank-owned life insurance (115 ) (1.8 ) (110 ) (1.6 ) (249 ) (1.8 ) (213 ) (1.6 ) State income taxes, net of federal income tax benefit 327 5.0 313 4.4 647 4.6 513 3.8 Non-deductible acquisition expenses 28 0.4 590 8.4 53 0.4 655 4.8 General business credits (14 ) (0.2 ) (8 ) (0.1 ) (153 ) (1.1 ) (16 ) (0.1 ) Other 21 0.3 2 — 1 — (72 ) (0.5 ) Total income tax provision $ 1,794 27.3 % $ 2,594 36.7 % $ 3,699 26.4 % $ 4,269 31.5 % |
Estimated Fair Value of Finan37
Estimated Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
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 June 30, 2016 and December 31, 2015 . There were no liabilities subject to fair value measurement 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 June 30, 2016 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 $ 6,123 $ — $ 6,123 $ — State and political subdivisions 169,964 — 169,964 — Mortgage-backed securities 45,529 — 45,529 — Collateralized mortgage obligations 104,531 — 104,531 — Corporate debt securities 43,431 — 43,431 — Total available for sale debt securities 369,578 — 369,578 — Other equity securities 1,277 1,277 — — Total securities available for sale $ 370,855 $ 1,277 $ 369,578 $ — Fair Value Measurement at December 31, 2015 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. 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, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | The following table discloses the Company’s estimated fair value amounts of its assets 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 June 30, 2016 and December 31, 2015 , as more fully described above. Fair Value Measurement at June 30, 2016 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: Collateral dependent impaired loans $ 7,467 $ — $ — $ 7,467 Other real estate owned $ 4,143 $ — $ — $ 4,143 Fair Value Measurement at December 31, 2015 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: Collateral dependent impaired loans $ 23,812 $ — $ — $ 23,812 Other real estate owned $ 8,834 $ — $ — $ 8,834 |
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 June 30, 2016 and December 31, 2015 . 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 capitalization and franchise value of MidWest One Bank. Neither of these components has been given consideration in the presentation of fair values below. June 30, 2016 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 $ 110,958 $ 110,958 $ 110,958 $ — $ — Investment securities: Available for sale 370,855 370,855 1,277 369,578 — Held to maturity 125,885 127,815 — 127,815 — Total investment securities 496,740 498,670 1,277 497,393 — Loans held for sale 5,048 5,124 — — 5,124 Loans, net 2,146,929 2,149,997 — 2,149,997 — Accrued interest receivable 12,171 12,171 12,171 — — Federal Home Loan Bank stock 10,707 10,707 — 10,707 — Financial liabilities: Deposits: Non-interest bearing demand 536,052 536,052 536,052 — — Interest-bearing checking 1,073,023 1,073,023 1,073,023 — — Savings 195,887 195,887 195,887 — — Certificates of deposit under $100,000 336,744 337,145 — 337,145 — Certificates of deposit $100,000 and over 321,855 322,881 — 322,881 — Total deposits 2,463,561 2,464,988 1,804,962 660,026 — Federal funds purchased and securities sold under agreements to repurchase 60,458 60,458 60,458 — — Federal Home Loan Bank borrowings 107,000 108,246 — 108,246 — Junior subordinated notes issued to capital trusts 23,640 18,999 — 18,999 — Long-term debt 20,000 20,000 — 20,000 — Accrued interest payable 1,620 1,620 1,620 — — 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 — 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 — — |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Table Text Block] | The following presents the valuation technique(s), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company at June 30, 2016 , categorized within Level 3 of the fair value hierarchy: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at June 30, 2016 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans $ 7,467 Modified appraised value Third party appraisal NM * NM * NM * Appraisal discount NM * NM * NM * Other real estate owned $ 4,143 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. |
Principles of Consolidation a38
Principles of Consolidation and Presentation Central Merger (Details) - Central Bancshares, Inc. $ in Thousands | May 01, 2015USD ($)shares |
Business Acquisition [Line Items] | |
Cash paid, gross | $ 64,000 |
Total consideration transferred | $ 141,895 |
Common Stock | |
Business Acquisition [Line Items] | |
Number of shares issued in merger | shares | 2,723,083 |
Business Combination Identifiab
Business Combination Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net (Details) - USD ($) $ / shares in Units, $ in Thousands | May 01, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
ASSETS | ||||||
Goodwill | $ 64,654 | $ 64,654 | $ 64,548 | |||
Central Bancshares, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Pretax merger related costs | 1,800 | $ 2,700 | $ 3,200 | $ 4,000 | ||
Professional and legal fees | 300 | 1,500 | 300 | 1,700 | ||
Retention and severance compensation expenses | 1,300 | 100 | 1,600 | 400 | ||
Service contract termination and other expenses | 1,900 | |||||
ASSETS | ||||||
Cash and due from banks | $ 28,404 | |||||
Investment securities | 160,775 | 0 | 160,775 | 0 | 160,775 | |
Loans | 916,973 | 0 | 916,973 | 0 | 916,973 | |
Premises and equipment | 27,908 | 0 | 27,908 | 0 | 27,908 | |
Goodwill | 64,654 | 0 | 64,654 | 0 | 64,654 | |
FDIC indemnification asset | 3,753 | |||||
Other real estate owned | 8,420 | 0 | 8,420 | 0 | 8,420 | |
Other assets | 14,482 | 0 | 14,482 | 0 | 14,482 | |
Total assets | 1,239,522 | |||||
LIABILITIES | ||||||
Deposits | 1,049,167 | 0 | 1,049,167 | 0 | 1,049,167 | |
Short-term borrowings | 16,124 | 0 | 16,124 | 0 | 16,124 | |
Junior subordinated notes issued to capital trusts | 8,050 | 0 | 8,050 | 0 | 8,050 | |
Subordinated notes payable | 12,669 | 0 | 12,669 | 0 | 12,669 | |
Accrued expenses and other liabilities | 11,617 | 0 | 11,617 | 0 | 11,617 | |
Total liabilities | 1,097,627 | |||||
Total identifiable 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, gross | 64,000 | |||||
Total fair value of consideration | $ 141,895 | |||||
Common Stock | Central Bancshares, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in merger | 2,723,083 | |||||
Core deposit intangible | Central Bancshares, Inc. | ||||||
ASSETS | ||||||
Finite-lived intangibles | $ 12,773 | 0 | 12,773 | 0 | 12,773 | |
Trade names intangible | Central Bancshares, Inc. | ||||||
ASSETS | ||||||
Finite-lived intangibles | $ 1,380 | $ 0 | $ 1,380 | $ 0 | $ 1,380 | |
Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in merger | 0 | 2,723,083 | ||||
Common Stock | Central Bancshares, Inc. | ||||||
Consideration | ||||||
Business acquisition, per share price of shares issued, acquirer | $ 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 | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | ||
Business acquisition, pro forma revenue (net interest income plus noninterest income) | $ 31,634 | $ 65,078 |
Business acquisition, pro forma net income | $ 5,236 | $ 12,875 |
Shareholders' Equity Stock by C
Shareholders' Equity Stock by Class (Details) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Stockholders' Equity Note [Abstract] | |||
Preferred stock, shares authorized | 500,000 | 500,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | ||
Common stock, shares authorized | 15,000,000 | 15,000,000 | |
Common stock, shares outstanding | 11,435,860 | 11,408,773 | 11,405,931 |
Common stock, par value per share | $ 1 | $ 1 |
Shareholders' Equity Stock Issu
Shareholders' Equity Stock Issuance (Details) - Common Stock - $ / shares | Jun. 23, 2015 | May 01, 2015 |
Private Placement | ||
Class of Stock | ||
Sale of stock, new issues | 300,000 | |
Sale of stock, price per share | $ 28 | |
Central Bancshares, Inc. | ||
Class of Stock | ||
Number of shares issued in merger | 2,723,083 |
Shareholders' Equity Stock Repu
Shareholders' Equity Stock Repurchase (Details) - Common Stock - July 17 2014 Share Repurchase Program - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jul. 17, 2014 | |
Equity, Class of Treasury Stock | ||
Authorized amount of stock repurchase program | $ 5 | |
Stock repurchase program, remaining authorized repurchase amount | $ 3.8 | |
Value of stock repurchased during period | $ 0 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 4,755 | $ 4,469 | $ 10,299 | $ 9,265 |
Earnings per common share - basic | $ 0.42 | $ 0.43 | $ 0.90 | $ 1 |
Earnings per common share - diluted | $ 0.42 | $ 0.42 | $ 0.90 | $ 0.99 |
Investment Securities Schedule
Investment Securities Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities | ||
Amortized cost basis | $ 361,954 | $ 421,740 |
Gross unrealized gains | 9,594 | 7,751 |
Gross unrealized losses | 693 | 2,250 |
Estimated fair value | 370,855 | 427,241 |
US Treasury securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 6,931 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 21 | |
Estimated fair value | 6,910 | |
U.S. Government agencies and corporations | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 6,027 | 26,600 |
Gross unrealized gains | 96 | 99 |
Gross unrealized losses | 0 | 46 |
Estimated fair value | 6,123 | 26,653 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 162,480 | 176,794 |
Gross unrealized gains | 7,487 | 6,662 |
Gross unrealized losses | 3 | 72 |
Estimated fair value | 169,964 | 183,384 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 44,766 | 56,950 |
Gross unrealized gains | 767 | 569 |
Gross unrealized losses | 4 | 457 |
Estimated fair value | 45,529 | 57,062 |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 104,401 | 107,613 |
Gross unrealized gains | 782 | 321 |
Gross unrealized losses | 652 | 1,530 |
Estimated fair value | 104,531 | 106,404 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 43,025 | 45,602 |
Gross unrealized gains | 422 | 50 |
Gross unrealized losses | 16 | 86 |
Estimated fair value | 43,431 | 45,566 |
Debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 360,699 | 420,490 |
Gross unrealized gains | 9,554 | 7,701 |
Gross unrealized losses | 675 | 2,212 |
Estimated fair value | 369,578 | 425,979 |
Equity securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 1,255 | 1,250 |
Gross unrealized gains | 40 | 50 |
Gross unrealized losses | 18 | 38 |
Estimated fair value | $ 1,277 | $ 1,262 |
Investment Securities Schedul47
Investment Securities Schedule of Held to Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | $ 125,885 | $ 118,423 |
Gross unrealized gains | 2,378 | 933 |
Gross unrealized losses | 448 | 1,122 |
Estimated fair value | 127,815 | 118,234 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 72,330 | 66,454 |
Gross unrealized gains | 1,938 | 928 |
Gross unrealized losses | 41 | 110 |
Estimated fair value | 74,227 | 67,272 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 2,870 | 3,920 |
Gross unrealized gains | 31 | 4 |
Gross unrealized losses | 38 | |
Estimated fair value | 2,901 | 3,886 |
Collateralized mortgage obligations | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 28,154 | 30,505 |
Gross unrealized gains | 149 | 1 |
Gross unrealized losses | 70 | 459 |
Estimated fair value | 28,233 | 30,047 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 22,531 | 17,544 |
Gross unrealized gains | 260 | |
Gross unrealized losses | 337 | 515 |
Estimated fair value | $ 22,454 | $ 17,029 |
Investment Securities Available
Investment Securities Available for Sale Securities in Continuous Loss Position (Details) $ in Thousands | Jun. 30, 2016USD ($)count | Dec. 31, 2015USD ($)count |
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 19 | 83 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 23,632 | $ 144,915 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 259 | 1,054 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 20,831 | 35,392 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 434 | 1,196 |
Available for sale securities, continuous unrealized loss position, fair value | 44,463 | 180,307 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 693 | $ 2,250 |
US Treasury securities | ||
Schedule of Available-for-sale Securities | ||
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 | ||
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 | $ 4,890 | |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 46 | |
Available for sale securities, continuous unrealized loss position, fair value | 4,890 | |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 46 | |
State and political subdivisions | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 2 | 22 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 8,419 | |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 24 | |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | $ 639 | 3,177 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 3 | 48 |
Available for sale securities, continuous unrealized loss position, fair value | 639 | 11,596 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 3 | $ 72 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 8 | 27 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 701 | $ 37,753 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 3 | 457 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 118 | |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 1 | |
Available for sale securities, continuous unrealized loss position, fair value | 819 | 37,753 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 4 | $ 457 |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 6 | 23 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 15,619 | $ 56,447 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 240 | 420 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 19,092 | 31,253 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 412 | 1,110 |
Available for sale securities, continuous unrealized loss position, fair value | 34,711 | 87,700 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 652 | $ 1,530 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 2 | 8 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 7,312 | $ 30,496 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 16 | 86 |
Available for sale securities, continuous unrealized loss position, fair value | 7,312 | 30,496 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 16 | $ 86 |
Equity securities | ||
Schedule of Available-for-sale Securities | ||
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 | $ 982 | $ 962 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 18 | 38 |
Available for sale securities, continuous unrealized loss position, fair value | 982 | 962 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 18 | $ 38 |
Investment Securities Held to M
Investment Securities Held to Maturity Securities in Continuous Loss Position (Details) $ in Thousands | Jun. 30, 2016USD ($)count | Dec. 31, 2015USD ($)count |
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 18 | 50 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 9,548 | $ 51,245 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 41 | 760 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 17,161 | 10,136 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 407 | 362 |
Held to maturity securities, continuous urealized loss position, fair value | 26,709 | 61,381 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 448 | $ 1,122 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 10 | 32 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 3,511 | $ 9,345 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 40 | 93 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 250 | 2,040 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 1 | 17 |
Held to maturity securities, continuous urealized loss position, fair value | 3,761 | 11,385 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 41 | $ 110 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 5 | |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 3,723 | |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 38 | |
Held to maturity securities, continuous urealized 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 | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 5 | 7 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 6,037 | $ 22,571 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 1 | 320 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 11,976 | 7,416 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 69 | 139 |
Held to maturity securities, continuous urealized loss position, fair value | 18,013 | 29,987 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 70 | $ 459 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 3 | 6 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 15,606 | |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 309 | |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | $ 4,935 | 680 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 337 | 206 |
Held to maturity securities, continuous urealized loss position, fair value | 4,935 | 16,286 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 337 | $ 515 |
Investment Securities Investmen
Investment Securities Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ||
Due in one year or less, amortized cost | $ 14,821 | |
Due after one year through five years, amortized cost | 85,564 | |
Due after five years through ten years, amortized cost | 95,480 | |
Due after ten years, amortized cost | 15,667 | |
Debt securities without a single maturity date, amortized cost | 149,167 | |
Total available for sale securities, debt securities, amortized cost | 360,699 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Due in one year or less, estimated fair value | 14,895 | |
Due after one year through five years, estimated fair value | 88,068 | |
Due after five years through ten years, estimated fair value | 100,338 | |
Due after ten years, estimated fair value | 16,217 | |
Debt securities without a single maturity date, estimated fair value | 150,060 | |
Total available for sale securities, debt securities, estimated fair value | 369,578 | |
Held-to-maturity Securities, Debt Maturities, Amortized Cost, Rolling Maturity [Abstract] | ||
Due after one year through five years, amortized cost | 7,360 | |
Due after five years through ten years, amortized cost | 51,114 | |
Due after ten years, amortized cost | 36,387 | |
Debt securities without a single maturity date, amortized cost | 31,024 | |
Held to maturity securities, amortized cost | 125,885 | $ 118,423 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Due after one year through five years, estimated fair value | 7,462 | |
Due after five years through ten years, estimated fair value | 52,516 | |
Due after ten years, estimated fair value | 36,703 | |
Debt securities without a single maturity date, estimated fair value | 31,134 | |
Fair value of investment securities held to maturity | $ 127,815 | $ 118,234 |
Investment Securities Realized
Investment Securities Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Gain (Loss) on Investments | |||||
Total | $ 223 | $ 456 | $ 467 | $ 1,011 | |
Debt securities | |||||
Gain (Loss) on Investments | |||||
Gross realized gains | 223 | 824 | 467 | 1,265 | |
Gross realized losses | 0 | (368) | 0 | (442) | |
Other-than-temporary impairment | 0 | 0 | 0 | 0 | |
Total | 223 | 456 | 467 | 823 | |
Equity securities | |||||
Gain (Loss) on Investments | |||||
Gross realized gains | 0 | 0 | 0 | 188 | |
Gross realized losses | 0 | 0 | 0 | 0 | |
Other-than-temporary impairment | 0 | 0 | 0 | 0 | $ 0 |
Total | $ 0 | $ 0 | $ 0 | $ 188 |
Investment Securities Textual R
Investment Securities Textual References (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities | |||
Available-for-sale securities pledged as collateral | $ 217,300 | $ 321,600 | |
Available for sale securities | 370,855 | 427,241 | |
Amortized cost basis | 361,954 | 421,740 | |
Proceeds from sales of available for sale securities | $ 23,384 | $ 106,389 | |
Document Period End Date | Jun. 30, 2016 | ||
State and political subdivisions | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | $ 169,964 | 183,384 | |
Amortized cost basis | 162,480 | 176,794 | |
Corporate debt securities | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | 43,431 | 45,566 | |
Amortized cost basis | 43,025 | 45,602 | |
Other equity securities | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | 1,277 | 1,262 | |
Amortized cost basis | 1,255 | $ 1,250 | |
Other equity securities | Banks and Financial Service-Related Companies | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | 300 | ||
Community Reinvestment Act qualified investment | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | $ 1,000 | ||
Geographic Concentration Risk | Total Obligations of State and Political Subdivisions | State and political subdivisions | IOWA | |||
Schedule of Available-for-sale Securities | |||
Concentration risk, percentage | 58.00% | ||
Geographic Concentration Risk | Total Obligations of State and Political Subdivisions | State and political subdivisions | MINNESOTA | |||
Schedule of Available-for-sale Securities | |||
Concentration risk, percentage | 22.00% |
Loans Receivable and the Allo53
Loans Receivable and the Allowance for Loan Losses Allowance for Loan Losses and Recorded Investment in Loan Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | $ 3,740 | $ 3,714 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 17,012 | 15,619 | ||||
Allowance for loan losses | 21,197 | $ 20,245 | 19,427 | $ 17,167 | $ 16,526 | $ 16,363 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 24,294 | 40,238 | ||||
Loans receivable, collectively evaluated for impairment | 2,120,538 | 2,086,112 | ||||
Loans and leases receivable, gross | 2,168,126 | 2,151,942 | ||||
Agricultural Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 208 | 51 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 2,146 | 1,366 | ||||
Allowance for loan losses | 2,354 | 2,235 | 1,417 | 1,480 | 1,612 | 1,506 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 3,120 | 3,072 | ||||
Loans receivable, collectively evaluated for impairment | 118,402 | 118,642 | ||||
Loans and leases receivable, gross | 121,522 | 121,714 | ||||
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 763 | 489 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 4,622 | 4,962 | ||||
Allowance for loan losses | 5,385 | 4,680 | 5,451 | 5,425 | 5,518 | 5,780 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 7,755 | 7,718 | ||||
Loans receivable, collectively evaluated for impairment | 474,910 | 461,275 | ||||
Loans and leases receivable, gross | 482,665 | 469,249 | ||||
Commercial Real Estate Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 2,514 | 2,786 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 7,909 | 5,718 | ||||
Allowance for loan losses | 10,628 | 9,713 | 8,556 | 5,766 | 5,756 | 4,399 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 9,888 | 23,697 | ||||
Loans receivable, collectively evaluated for impairment | 993,101 | 950,207 | ||||
Loans and leases receivable, gross | 1,020,165 | 991,941 | ||||
Residential Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 255 | 387 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 1,968 | 3,539 | ||||
Allowance for loan losses | 2,463 | 3,429 | 3,968 | 3,224 | 3,083 | 3,167 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 3,531 | 5,725 | ||||
Loans receivable, collectively evaluated for impairment | 496,937 | 517,482 | ||||
Loans and leases receivable, gross | 506,586 | 530,506 | ||||
Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 1 | |||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 367 | 408 | ||||
Allowance for loan losses | 367 | $ 188 | 409 | 337 | 285 | 323 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 26 | |||||
Loans receivable, collectively evaluated for impairment | 37,188 | 38,506 | ||||
Loans and leases receivable, gross | 37,188 | 38,532 | ||||
Unallocated Financing Receivables | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | (374) | |||||
Allowance for loan losses | (374) | $ 935 | $ 272 | $ 1,188 | ||
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 | 445 | 94 | ||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 23,294 | 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 | 205 | 52 | ||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 17,176 | 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 | 240 | 42 | ||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | $ 6,118 | $ 7,299 |
Loans Receivable and the Allo54
Loans Receivable and the Allowance for Loan Losses Allowance for Loan Loss Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 20,245 | $ 16,526 | $ 19,427 | $ 16,363 |
Charge-offs | (432) | (292) | (816) | (1,082) |
Recoveries | 213 | 32 | 350 | 385 |
Provision | 1,171 | 901 | 2,236 | 1,501 |
Ending balance | 21,197 | 17,167 | 21,197 | 17,167 |
Agricultural Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 2,235 | 1,612 | 1,417 | 1,506 |
Charge-offs | (125) | |||
Recoveries | 1 | 7 | ||
Provision | 118 | (132) | 1,055 | (26) |
Ending balance | 2,354 | 1,480 | 2,354 | 1,480 |
Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 4,680 | 5,518 | 5,451 | 5,780 |
Charge-offs | (44) | (10) | (291) | |
Recoveries | 60 | 12 | 72 | 351 |
Provision | 645 | (61) | (128) | (415) |
Ending balance | 5,385 | 5,425 | 5,385 | 5,425 |
Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 9,713 | 5,756 | 8,556 | 4,399 |
Charge-offs | (1) | (191) | (41) | (191) |
Recoveries | 127 | 6 | 180 | 6 |
Provision | 789 | 195 | 1,933 | 1,552 |
Ending balance | 10,628 | 5,766 | 10,628 | 5,766 |
Residential Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 3,429 | 3,083 | 3,968 | 3,167 |
Charge-offs | (354) | (38) | (513) | (548) |
Recoveries | 13 | 8 | 77 | 12 |
Provision | (625) | 171 | (1,069) | 593 |
Ending balance | 2,463 | 3,224 | 2,463 | 3,224 |
Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 188 | 285 | 409 | 323 |
Charge-offs | (77) | (19) | (127) | (52) |
Recoveries | 12 | 6 | 14 | 16 |
Provision | 244 | 65 | 71 | 50 |
Ending balance | $ 367 | 337 | 367 | 337 |
Unallocated Financing Receivables | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 272 | (374) | 1,188 | |
Provision | 663 | $ 374 | (253) | |
Ending balance | $ 935 | $ 935 |
Loans Receivable and the Allo55
Loans Receivable and the Allowance for Loan Losses New Troubled Debt Restructurings During Period (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)count | ||
Financing Receivable, Modifications | ||
Financing Receivable, Modifications, Number of Contracts | count | 3 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 200 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 200 | |
Agricultural Loan Financing Receivable | Extended Maturity [Member] | ||
Financing Receivable, Modifications | ||
Financing Receivable, Modifications, Number of Contracts | count | 1 | [1] |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 25 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 25 | [1] |
Residential Real Estate First Lien Loan Financing Receivable | Contractual Interest Rate Reduction [Member] | ||
Financing Receivable, Modifications | ||
Financing Receivable, Modifications, Number of Contracts | count | 1 | [1] |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 104 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 104 | [1] |
Residential Real Estate Junior Lien Loan Financing Receivable | Contractual Interest Rate Reduction [Member] | ||
Financing Receivable, Modifications | ||
Financing Receivable, Modifications, Number of Contracts | count | 1 | [1] |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 71 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 71 | [1] |
[1] | TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. |
Loans Receivable and the Allo56
Loans Receivable and the Allowance for Loan Losses New Troubled Debt Restructurings During Past Twelve Months That Defaulted During the Period (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)count | Jun. 30, 2015USD ($)count | Jun. 30, 2016USD ($)count | Jun. 30, 2015USD ($)count | |
Financing Receivable, Modifications | ||||
Financing receivable, modifications, subsequent default, number of contracts | count | 0 | 0 | 0 | 0 |
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable and the Allo57
Loans Receivable and the Allowance for Loan Losses Loans by Internally Assigned Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment | ||
Loans receivable, net | $ 2,168,126 | $ 2,151,942 |
Purchased credit-impaired loans, internally classified as other than pass | 17,800 | 23,700 |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 121,522 | 121,714 |
Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 481,153 | 467,412 |
Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,512 | 1,377 |
Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,483 | |
Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 129,180 | 120,753 |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 92,845 | 89,084 |
Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 121,252 | 121,763 |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 676,888 | 660,341 |
Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,020,165 | 991,941 |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 384,295 | 428,233 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 122,291 | 102,273 |
Residential Real Estate Total | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 506,586 | 530,506 |
Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 37,188 | 37,509 |
Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,044,360 | 2,020,162 |
Internally Assigned Grade Pass | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 106,027 | 111,361 |
Internally Assigned Grade Pass | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 447,153 | 436,857 |
Internally Assigned Grade Pass | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,512 | 1,354 |
Internally Assigned Grade Pass | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,168 | |
Internally Assigned Grade Pass | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 124,172 | 114,640 |
Internally Assigned Grade Pass | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 84,461 | 82,442 |
Internally Assigned Grade Pass | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 119,026 | 119,139 |
Internally Assigned Grade Pass | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 637,048 | 609,651 |
Internally Assigned Grade Pass | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 964,707 | 925,872 |
Internally Assigned Grade Pass | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 369,781 | 410,143 |
Internally Assigned Grade Pass | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 118,243 | 96,223 |
Internally Assigned Grade Pass | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 488,024 | 506,366 |
Internally Assigned Grade Pass | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 36,937 | 37,184 |
Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 60,890 | 52,736 |
Internally Assigned Grade Special Mention Watch | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 12,366 | 8,536 |
Internally Assigned Grade Special Mention Watch | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 14,317 | 12,893 |
Internally Assigned Grade Special Mention Watch | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 19 | |
Internally Assigned Grade Special Mention Watch | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 100 | |
Internally Assigned Grade Special Mention Watch | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,407 | 2,406 |
Internally Assigned Grade Special Mention Watch | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 5,756 | 2,408 |
Internally Assigned Grade Special Mention Watch | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 364 | 371 |
Internally Assigned Grade Special Mention Watch | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 20,417 | 19,402 |
Internally Assigned Grade Special Mention Watch | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 28,944 | 24,587 |
Internally Assigned Grade Special Mention Watch | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 3,264 | 4,813 |
Internally Assigned Grade Special Mention Watch | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,997 | 1,782 |
Internally Assigned Grade Special Mention Watch | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 5,261 | 6,595 |
Internally Assigned Grade Special Mention Watch | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2 | 6 |
Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 62,737 | 78,699 |
Internally Assigned Grade Substandard | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 3,037 | 1,817 |
Internally Assigned Grade Substandard | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 19,674 | 17,652 |
Internally Assigned Grade Substandard | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 4 | |
Internally Assigned Grade Substandard | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 215 | |
Internally Assigned Grade Substandard | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,601 | 3,707 |
Internally Assigned Grade Substandard | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,628 | 4,234 |
Internally Assigned Grade Substandard | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,862 | 2,253 |
Internally Assigned Grade Substandard | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 19,423 | 31,288 |
Internally Assigned Grade Substandard | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 26,514 | 41,482 |
Internally Assigned Grade Substandard | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 11,250 | 13,042 |
Internally Assigned Grade Substandard | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,051 | 4,209 |
Internally Assigned Grade Substandard | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 13,301 | 17,251 |
Internally Assigned Grade Substandard | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 211 | 278 |
Internally Assigned Grade Doubtful | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 47 | 345 |
Internally Assigned Grade Doubtful | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 9 | 10 |
Internally Assigned Grade Doubtful | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 235 | |
Internally Assigned Grade Doubtful | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 59 | |
Internally Assigned Grade Doubtful | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 294 | |
Internally Assigned Grade Doubtful | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 38 | $ 41 |
Internally Assigned Grade Loss | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 92 | |
Internally Assigned Grade Loss | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | $ 92 |
Loans Receivable and the Allo58
Loans Receivable and the Allowance for Loan Losses Amounts and Categories of Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | $ 11,524 | $ 11,524 | $ 28,701 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 12,384 | 12,384 | 30,468 | ||
Impaired financing receivable, with related allowance, recorded investment | 12,770 | 12,770 | 11,537 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 12,772 | 12,772 | 11,703 | ||
Impaired financing receivable, related allowance | 3,740 | 3,740 | 3,714 | ||
Impaired financing receivable, recorded investment | 24,294 | 24,294 | 40,238 | ||
Impaired financing receivable, unpaid principal balance | 25,156 | 25,156 | 42,171 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 11,790 | $ 7,881 | 12,016 | $ 8,560 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 132 | 259 | 77 | 336 | |
Impaired financing receivable, with related allowance, average recorded investment | 12,644 | 6,307 | 9,532 | 5,640 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 49 | 107 | 32 | 141 | |
Impaired financing receivable, average recorded investment | 24,434 | 14,188 | 21,548 | 14,200 | |
Impaired financing receivable, interest income, accrual method | 181 | 366 | 109 | 477 | |
Loans and leases receivable, impaired, commitment to lend | 0 | 0 | |||
Agricultural Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 1,266 | 1,266 | 1,512 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 1,766 | 1,766 | 2,084 | ||
Impaired financing receivable, with related allowance, recorded investment | 1,854 | 1,854 | 1,560 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 1,858 | 1,858 | 1,560 | ||
Impaired financing receivable, related allowance | 208 | 208 | 51 | ||
Impaired financing receivable, recorded investment | 3,120 | 3,120 | 3,072 | ||
Impaired financing receivable, unpaid principal balance | 3,624 | 3,624 | 3,644 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 1,266 | 1,517 | 1,291 | 1,541 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 27 | 71 | 13 | 86 | |
Impaired financing receivable, with related allowance, average recorded investment | 1,856 | 1,561 | 1,878 | 1,579 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 20 | 61 | 7 | 73 | |
Impaired financing receivable, average recorded investment | 3,122 | 3,078 | 3,169 | 3,120 | |
Impaired financing receivable, interest income, accrual method | 47 | 132 | 20 | 159 | |
Commercial and Industrial Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 3,765 | 3,765 | 6,487 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 3,774 | 3,774 | 6,752 | ||
Impaired financing receivable, with related allowance, recorded investment | 3,990 | 3,990 | 1,231 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 3,990 | 3,990 | 1,258 | ||
Impaired financing receivable, related allowance | 763 | 763 | 489 | ||
Impaired financing receivable, recorded investment | 7,755 | 7,755 | 7,718 | ||
Impaired financing receivable, unpaid principal balance | 7,764 | 7,764 | 8,010 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 3,777 | 1,063 | 3,927 | 1,695 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 52 | 10 | 82 | ||
Impaired financing receivable, with related allowance, average recorded investment | 3,863 | 3,118 | 3,724 | 2,426 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 10 | 18 | 14 | 27 | |
Impaired financing receivable, average recorded investment | 7,640 | 4,181 | 7,651 | 4,121 | |
Impaired financing receivable, interest income, accrual method | 10 | 70 | 24 | 109 | |
Commercial Real Estate Construction and Development Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 321 | ||||
Impaired financing receivable, with no related allowance, unpaid principal balance | 448 | ||||
Impaired financing receivable, with related allowance, recorded investment | 34 | ||||
Impaired financing receivable, with related allowance, unpaid principal balance | 34 | ||||
Impaired financing receivable, related allowance | 34 | ||||
Impaired financing receivable, recorded investment | 355 | ||||
Impaired financing receivable, unpaid principal balance | 482 | ||||
Impaired financing receivable, with no related allowance, average recorded investment | 49 | 49 | |||
Impaired financing receivable, with related allowance, average recorded investment | 34 | 34 | |||
Impaired financing receivable, average recorded investment | 83 | 83 | |||
Farmland Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 2,414 | 2,414 | 2,711 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,564 | 2,564 | 2,870 | ||
Impaired financing receivable, with related allowance, recorded investment | 69 | ||||
Impaired financing receivable, with related allowance, unpaid principal balance | 69 | ||||
Impaired financing receivable, related allowance | 3 | ||||
Impaired financing receivable, recorded investment | 2,414 | 2,414 | 2,780 | ||
Impaired financing receivable, unpaid principal balance | 2,564 | 2,564 | 2,939 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 2,568 | 2,358 | 2,580 | 2,377 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 49 | 128 | 28 | 155 | |
Impaired financing receivable, with related allowance, average recorded investment | 69 | 71 | |||
Impaired financing receivable, with related allowance, interest income, accrual method | 3 | 4 | |||
Impaired financing receivable, average recorded investment | 2,568 | 2,427 | 2,580 | 2,448 | |
Impaired financing receivable, interest income, accrual method | 49 | 131 | 28 | 159 | |
Multifamily Real Estate Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
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 | 159 | 159 | 224 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 159 | 159 | 224 | ||
Impaired financing receivable, related allowance | 42 | 42 | 73 | ||
Impaired financing receivable, recorded investment | 159 | 159 | 1,856 | ||
Impaired financing receivable, unpaid principal balance | 159 | 159 | 2,022 | ||
Impaired financing receivable, with related allowance, average recorded investment | 158 | 158 | |||
Impaired financing receivable, average recorded investment | 158 | 158 | |||
Commercial Real Estate Loan Other Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 1,899 | 1,899 | 12,230 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,100 | 2,100 | 12,642 | ||
Impaired financing receivable, with related allowance, recorded investment | 5,416 | 5,416 | 6,476 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 5,416 | 5,416 | 6,478 | ||
Impaired financing receivable, related allowance | 2,472 | 2,472 | 2,676 | ||
Impaired financing receivable, recorded investment | 7,315 | 7,315 | 18,706 | ||
Impaired financing receivable, unpaid principal balance | 7,516 | 7,516 | 19,120 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 1,979 | 1,542 | 2,009 | 1,547 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 12 | 4 | 3 | 12 | |
Impaired financing receivable, with related allowance, average recorded investment | 5,416 | 356 | 2,415 | 357 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 9 | 12 | |||
Impaired financing receivable, average recorded investment | 7,395 | 1,898 | 4,424 | 1,904 | |
Impaired financing receivable, interest income, accrual method | 12 | 13 | 3 | 24 | |
Commercial Real Estate Total | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 4,313 | 4,313 | 16,894 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 4,664 | 4,664 | 17,758 | ||
Impaired financing receivable, with related allowance, recorded investment | 5,575 | 5,575 | 6,803 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 5,575 | 5,575 | 6,805 | ||
Impaired financing receivable, related allowance | 2,514 | 2,514 | 2,786 | ||
Impaired financing receivable, recorded investment | 9,888 | 9,888 | 23,697 | ||
Impaired financing receivable, unpaid principal balance | 10,239 | 10,239 | 24,563 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 4,547 | 3,949 | 4,589 | 3,973 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 61 | 132 | 31 | 167 | |
Impaired financing receivable, with related allowance, average recorded investment | 5,574 | 459 | 2,573 | 462 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 12 | 16 | |||
Impaired financing receivable, average recorded investment | 10,121 | 4,408 | 7,162 | 4,435 | |
Impaired financing receivable, interest income, accrual method | 61 | 144 | 31 | 183 | |
Residential Real Estate First Lien Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 2,180 | 2,180 | 2,494 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,180 | 2,180 | 2,533 | ||
Impaired financing receivable, with related allowance, recorded investment | 1,351 | 1,351 | 1,919 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 1,349 | 1,349 | 2,056 | ||
Impaired financing receivable, related allowance | 255 | 255 | 383 | ||
Impaired financing receivable, recorded investment | 3,531 | 3,531 | 4,413 | ||
Impaired financing receivable, unpaid principal balance | 3,529 | 3,529 | 4,589 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 2,200 | 1,241 | 2,209 | 1,239 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 44 | 3 | 23 | ||
Impaired financing receivable, with related allowance, average recorded investment | 1,351 | 1,089 | 1,357 | 1,092 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 19 | 16 | 11 | 25 | |
Impaired financing receivable, average recorded investment | 3,551 | 2,330 | 3,566 | 2,331 | |
Impaired financing receivable, interest income, accrual method | 63 | 19 | 34 | 25 | |
Residential Real Estate Junior Lien Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 1,297 | ||||
Impaired financing receivable, with no related allowance, unpaid principal balance | 1,308 | ||||
Impaired financing receivable, with related allowance, recorded investment | 15 | ||||
Impaired financing receivable, with related allowance, unpaid principal balance | 15 | ||||
Impaired financing receivable, related allowance | 4 | ||||
Impaired financing receivable, recorded investment | 1,312 | ||||
Impaired financing receivable, unpaid principal balance | 1,323 | ||||
Impaired financing receivable, with no related allowance, average recorded investment | 90 | 90 | |||
Impaired financing receivable, with related allowance, average recorded investment | 71 | 71 | |||
Impaired financing receivable, average recorded investment | 161 | 161 | |||
Residential Real Estate Total | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 2,180 | 2,180 | 3,791 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,180 | 2,180 | 3,841 | ||
Impaired financing receivable, with related allowance, recorded investment | 1,351 | 1,351 | 1,934 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 1,349 | 1,349 | 2,071 | ||
Impaired financing receivable, related allowance | 255 | 255 | 387 | ||
Impaired financing receivable, recorded investment | 3,531 | 3,531 | 5,725 | ||
Impaired financing receivable, unpaid principal balance | 3,529 | 3,529 | 5,912 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 2,200 | 1,331 | 2,209 | 1,329 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 44 | 3 | 23 | ||
Impaired financing receivable, with related allowance, average recorded investment | 1,351 | 1,160 | 1,357 | 1,163 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 19 | 16 | 11 | 25 | |
Impaired financing receivable, average recorded investment | 3,551 | 2,491 | 3,566 | 2,492 | |
Impaired financing receivable, interest income, accrual method | $ 63 | 19 | $ 34 | 25 | |
Consumer Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 17 | ||||
Impaired financing receivable, with no related allowance, unpaid principal balance | 33 | ||||
Impaired financing receivable, with related allowance, recorded investment | 9 | ||||
Impaired financing receivable, with related allowance, unpaid principal balance | 9 | ||||
Impaired financing receivable, related allowance | 1 | ||||
Impaired financing receivable, recorded investment | 26 | ||||
Impaired financing receivable, unpaid principal balance | $ 42 | ||||
Impaired financing receivable, with no related allowance, average recorded investment | 21 | 22 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 1 | 1 | |||
Impaired financing receivable, with related allowance, average recorded investment | 9 | 10 | |||
Impaired financing receivable, average recorded investment | 30 | 32 | |||
Impaired financing receivable, interest income, accrual method | $ 1 | $ 1 |
Loans Receivable and the Allo59
Loans Receivable and the Allowance for Loan Losses Past Due Loan Aging (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | $ 32,518 | $ 13,800 |
Loans current | 2,135,608 | 2,138,142 |
Total Loans Receivable | 2,168,126 | 2,151,942 |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,272 | 378 |
Loans current | 120,250 | 121,336 |
Total Loans Receivable | 121,522 | 121,714 |
Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 10,883 | 2,400 |
Loans current | 470,270 | 465,012 |
Total Loans Receivable | 481,153 | 467,412 |
Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 23 | |
Loans current | 1,512 | 1,354 |
Total Loans Receivable | 1,512 | 1,377 |
Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 214 | |
Loans current | 1,269 | |
Total Loans Receivable | 1,483 | |
Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 700 | 415 |
Loans current | 128,480 | 120,338 |
Total Loans Receivable | 129,180 | 120,753 |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 333 | 200 |
Loans current | 92,512 | 88,884 |
Total Loans Receivable | 92,845 | 89,084 |
Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 225 | 224 |
Loans current | 121,027 | 121,539 |
Total Loans Receivable | 121,252 | 121,763 |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 13,195 | 3,580 |
Loans current | 663,693 | 656,761 |
Total Loans Receivable | 676,888 | 660,341 |
Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 14,453 | 4,419 |
Loans current | 1,005,712 | 987,522 |
Total Loans Receivable | 1,020,165 | 991,941 |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 4,103 | 5,676 |
Loans current | 380,192 | 422,557 |
Total Loans Receivable | 384,295 | 428,233 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,682 | 605 |
Loans current | 120,609 | 101,668 |
Total Loans Receivable | 122,291 | 102,273 |
Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 5,785 | 6,281 |
Loans current | 500,801 | 524,225 |
Total Loans Receivable | 506,586 | 530,506 |
Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 125 | 85 |
Loans current | 37,063 | 37,424 |
Total Loans Receivable | 37,188 | 37,509 |
Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,403 | 2,261 |
Loans current | 21,890 | 23,331 |
Total Loans Receivable | 23,293 | 25,592 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 15,713 | 5,309 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 559 | 169 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 5,987 | 644 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
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 | ||
Loans past due | 31 | |
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 | ||
Loans past due | 314 | 415 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
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 | ||
Loans past due | 225 | 224 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 6,792 | 1,636 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 7,331 | 2,355 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,159 | 1,772 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 655 | 317 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,814 | 2,089 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 22 | 17 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 234 | 989 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 3,225 | 3,098 |
Financing Receivables, 60 to 89 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 453 | 190 |
Financing Receivables, 60 to 89 Days Past Due | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 983 | 710 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 17 | |
Financing Receivables, 60 to 89 Days Past Due | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 8 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 33 | |
Financing Receivables, 60 to 89 Days Past Due | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 98 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 667 | 754 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 798 | 754 |
Financing Receivables, 60 to 89 Days Past Due | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 686 | 1,293 |
Financing Receivables, 60 to 89 Days Past Due | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 293 | 120 |
Financing Receivables, 60 to 89 Days Past Due | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 979 | 1,413 |
Financing Receivables, 60 to 89 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 12 | 6 |
Financing Receivables, 60 to 89 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 766 | 799 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 13,580 | 5,393 |
Financing Receivables, 30 to 59 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 260 | 19 |
Financing Receivables, 30 to 59 Days Past Due | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 3,913 | 1,046 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Credit Card Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 2 | |
Financing Receivables, 30 to 59 Days Past Due | Overdraft Deposit Account Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 175 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 353 | |
Financing Receivables, 30 to 59 Days Past Due | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 235 | 120 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 5,736 | 1,190 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 6,324 | 1,310 |
Financing Receivables, 30 to 59 Days Past Due | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 2,258 | 2,611 |
Financing Receivables, 30 to 59 Days Past Due | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 734 | 168 |
Financing Receivables, 30 to 59 Days Past Due | Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 2,992 | 2,779 |
Financing Receivables, 30 to 59 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 91 | 62 |
Financing Receivables, 30 to 59 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | $ 403 | $ 473 |
Loans Receivable and the Allo60
Loans Receivable and the Allowance for Loan Losses Nonaccrual and 90+ Days Past Due and Still Accruing Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | $ 14,950 | $ 4,012 |
Loans 90 days past due and still accruing | 1,302 | 284 |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 595 | 172 |
Loans 90 days past due and still accruing | 30 | |
Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 5,931 | 575 |
Loans 90 days past due and still accruing | 56 | |
Commercial Real Estate Construction and Development Loan Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 75 | 95 |
Loans 90 days past due and still accruing | 112 | |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 236 | 20 |
Loans 90 days past due and still accruing | 80 | |
Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 225 | 224 |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 6,776 | 1,452 |
Loans 90 days past due and still accruing | 16 | |
Commercial Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 7,312 | 1,791 |
Loans 90 days past due and still accruing | 128 | 80 |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 1,065 | 1,182 |
Loans 90 days past due and still accruing | 546 | 199 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 32 | 281 |
Loans 90 days past due and still accruing | 535 | |
Residential Real Estate Total | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 1,097 | 1,463 |
Loans 90 days past due and still accruing | 1,081 | 199 |
Consumer Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 15 | 11 |
Loans 90 days past due and still accruing | 7 | 5 |
Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans, nonaccrual or 90 days past due and still accruing | 3,600 | 4,100 |
Loans, discount, nonaccrual or 90 days past due and still accruing | $ 1,300 | $ 1,400 |
Loans Receivable and the Allo61
Loans Receivable and the Allowance for Loan Losses Accretable Yield for Loans Acquired and Accounted for Under ASC 310-30 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | ||||
Balance at beginning of period | $ 845 | $ 0 | $ 1,446 | $ 0 |
Purchases | 0 | 1,882 | 0 | 1,882 |
Accretion | (509) | (43) | (1,110) | (43) |
Reclassifications (to) from nonaccretable difference | 3,208 | 0 | 3,208 | 0 |
Balance at end of period | $ 3,544 | $ 1,839 | $ 3,544 | $ 1,839 |
Loans Receivable and the Allo62
Loans Receivable and the Allowance for Loan Losses Textual References (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2016USD ($)quarters | Dec. 31, 2015USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Covered loans contractual balance | $ 87.8 | |
Covered loans, net of discounts | $ 83.5 | |
Covered loans, FDIC coverage end date | Oct. 7, 2021 | |
Loans pledged for Federal Home Loan Bank debt | $ 371.3 | $ 558.8 |
Allowance for loan losses, maximum overage percentage | 20.00% | |
Allowance for loan losses, maximum shortage percentage | 5.00% | |
Loans reviewed collectively for impairment, historical loss lookback, number of quarters | quarters | 20 | |
Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Purchased credit-impaired loans, outstanding balance | $ 29.3 | |
Purchased credit-impaired loans, discount | $ 6 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets Changes in Carrying Amount of Non-Goodwill Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | |
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | $ 19,141 | ||||
Additions from business combination | 0 | ||||
Amortization expense | $ (1,015) | $ (1,228) | (2,076) | $ (1,336) | |
Balance at end of period | 17,065 | 17,065 | |||
Gross carrying amount | $ 28,276 | ||||
Accumulated amortizations | (11,211) | ||||
Net book value | 17,065 | 19,141 | 17,065 | ||
Trade names intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 7,040 | ||||
Amortization expense | 0 | ||||
Balance at end of period | 7,040 | 7,040 | |||
Gross carrying amount | 7,040 | ||||
Net book value | 7,040 | 7,040 | 7,040 | ||
Insurance agency intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 275 | ||||
Additions from business combination | 0 | ||||
Amortization expense | (36) | ||||
Balance at end of period | 239 | 239 | |||
Gross carrying amount | 1,320 | ||||
Accumulated amortizations | (1,081) | ||||
Net book value | 239 | 275 | 239 | ||
Core deposit intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 10,480 | ||||
Additions from business combination | 0 | ||||
Amortization expense | (1,905) | ||||
Balance at end of period | 8,575 | 8,575 | |||
Gross carrying amount | 18,206 | ||||
Accumulated amortizations | (9,631) | ||||
Net book value | 8,575 | 10,480 | 8,575 | ||
Trade names intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 1,203 | ||||
Additions from business combination | 0 | ||||
Amortization expense | (125) | ||||
Balance at end of period | 1,078 | 1,078 | |||
Gross carrying amount | 1,380 | ||||
Accumulated amortizations | (302) | ||||
Net book value | 1,078 | 1,203 | 1,078 | ||
Customer list intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 143 | ||||
Additions from business combination | 0 | ||||
Amortization expense | (10) | ||||
Balance at end of period | 133 | 133 | |||
Gross carrying amount | 330 | ||||
Accumulated amortizations | (197) | ||||
Net book value | $ 133 | $ 143 | $ 133 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets Textual References (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | May 01, 2015 | |
Schedule of Intangible Assets [Line Items] | ||||
Additions from business combination | $ 0 | |||
Goodwill, impairment loss | 0 | |||
Goodwill | 64,654 | $ 64,548 | ||
Trade names intangible | ||||
Schedule of Intangible Assets [Line Items] | ||||
Additions from business combination | 0 | |||
Core deposit intangible | ||||
Schedule of Intangible Assets [Line Items] | ||||
Additions from business combination | 0 | |||
Central Bancshares, Inc. | ||||
Schedule of Intangible Assets [Line Items] | ||||
Goodwill | 0 | $ 64,654 | $ 64,654 | |
Goodwill acquired during period | 100 | |||
Central Bancshares, Inc. | Trade names intangible | ||||
Schedule of Intangible Assets [Line Items] | ||||
Additions from business combination | 1,400 | |||
Central Bancshares, Inc. | Core deposit intangible | ||||
Schedule of Intangible Assets [Line Items] | ||||
Additions from business combination | $ 12,700 | |||
MidWestOne Bank | Trade names intangible | ||||
Schedule of Intangible Assets [Line Items] | ||||
Impairment of indefinite-lived trade name intangible | $ 0 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Other Assets [Abstract] | ||
Federal Home Loan Bank stock | $ 10,707,000 | $ 9,832,000 |
FDIC indemnification asset, net | 3,008,000 | 4,274,000 |
Prepaid expense | 2,457,000 | 2,271,000 |
Mortgage Servicing Rights | 2,025,000 | 2,249,000 |
Federal & state income taxes receivable, current | 1,059,000 | 1,079,000 |
Accounts receivable & other miscellaneous assets | 2,211,000 | 2,104,000 |
Other assets | 21,467,000 | 21,809,000 |
Investment in Federal Home Loan Bank Stock | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other than Temporary Impairment Losses, Investments | $ 0 | $ 0 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||
Weighted Average Cost | 0.22% | 0.31% |
Short-term debt | $ 60,458 | $ 68,963 |
Available-for-sale securities pledged as collateral | 217,300 | 321,600 |
Federal Reserve Bank advances | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | |
Unsercured line of credit, maximum borrowing capacity | 12,000 | 11,758 |
Available-for-sale securities pledged as collateral | $ 13,300 | $ 13,064 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Weighted Average Cost | 0.00% | 0.34% |
Short-term debt | $ 0 | $ 1,500 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Weighted Average Cost | 0.22% | 0.31% |
Short-term debt | $ 60,458 | $ 67,463 |
Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | |
Unsercured line of credit, maximum borrowing capacity | $ 5,000 | |
London Interbank Offered Rate (LIBOR) | Line of credit | ||
Short-term Debt [Line Items] | ||
Description of variable interest rate basis | one-month LIBOR | |
Debt instrument, basis spread on variable rate | 2.00% |
Subordinated Notes Payable (Det
Subordinated Notes Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Junior subordinated notes issued to capital trusts, book value | $ 23,640 | $ 23,587 | |
Junior subordinated notes | |||
Debt Instrument [Line Items] | |||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1] | 24,743 | 24,743 |
Junior subordinated notes issued to capital trusts, book value | 23,640 | 23,587 | |
Junior subordinated notes | CBI Capital Trust II | |||
Debt Instrument [Line Items] | |||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1],[2] | 7,217 | 7,217 |
Junior subordinated notes issued to capital trusts, book value | [1],[2] | $ 6,583 | $ 6,552 |
Interest rate | [1],[2] | 4.15% | 4.01% |
Debt instrument, maturity date | [1],[2] | Mar. 15, 2038 | Mar. 15, 2038 |
Debt instrument, earliest call date | [1],[2] | Mar. 15, 2013 | Mar. 15, 2013 |
Junior subordinated notes | CBI Capital Trust II | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Description of variable interest rate basis | [1],[2] | Three-month LIBOR | |
Debt instrument, basis spread on variable rate | 3.50% | ||
Junior subordinated notes | Barron Investment Capital Trust I | |||
Debt Instrument [Line Items] | |||
Junior subordinated debenture owed to unconsolidated subsidiary trust, face value | [1],[2] | $ 2,062 | $ 2,062 |
Junior subordinated notes issued to capital trusts, book value | [1],[2] | $ 1,593 | $ 1,571 |
Interest rate | [1],[2] | 2.79% | 2.74% |
Debt instrument, maturity date | [1],[2] | Sep. 23, 2036 | Sep. 23, 2036 |
Debt instrument, earliest call date | [1],[2] | Sep. 23, 2011 | Sep. 23, 2011 |
Junior subordinated notes | Barron Investment Capital Trust I | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Description of variable interest rate basis | [1],[2] | Three-month LIBOR | |
Debt instrument, basis spread on variable rate | 2.15% | ||
Junior subordinated notes | 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, book value | [1] | $ 15,464 | $ 15,464 |
Interest rate | [1] | 2.24% | 2.10% |
Debt instrument, maturity date | [1] | Dec. 15, 2037 | Dec. 15, 2037 |
Debt instrument, earliest call date | [1] | Dec. 15, 2012 | Dec. 15, 2012 |
Junior subordinated notes | MidWestOne Statutory Trust II | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Description of variable interest rate basis | [1] | Three-month LIBOR | |
Debt instrument, basis spread on variable rate | 1.59% | ||
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 | 6 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Apr. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Long-term debt, excluding subordinated debt, weighted average interest rate | 1.80% | 1.75% | ||
Long-term debt, excluding subordinated debt | $ 127,000 | $ 109,500 | ||
Federal Home Loan Bank Borrowings | ||||
Debt Instrument [Line Items] | ||||
Weighted average cost | 1.72% | 1.64% | ||
Long-term Debt, Gross | $ 107,000 | $ 87,000 | ||
Federal Home Loan, Bank advances general debt obligations, disclosures maximum borrowing capacity as percentage of total assets | 35.00% | |||
Note payable to unaffiliated bank | ||||
Debt Instrument [Line Items] | ||||
Weighted average cost | 2.21% | 2.17% | ||
Long-term Debt, Gross | $ 20,000 | $ 22,500 | ||
Original note face amount | $ 35,000 | |||
Long-term Debt, Amount Advanced | $ 25,000 | |||
Debt instrument, frequency of periodic payment | quarterly |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected provision, amount | $ 2,292 | $ 2,472 | $ 4,899 | $ 4,737 |
Tax-exempt interest, amount | (745) | (665) | (1,499) | (1,335) |
Bank-owned life insurance, amount | (115) | (110) | (249) | (213) |
State income taxes, net of federal income tax benefit, amount | 327 | 313 | 647 | 513 |
Non-deductible acquisition expenses, amount | 28 | 590 | 53 | 655 |
General business credits, amount | (14) | (8) | (153) | (16) |
Other, amount | 21 | 2 | 1 | (72) |
Total income tax provision, amount | $ 1,794 | $ 2,594 | $ 3,699 | $ 4,269 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Expected provision, percent | 35.00% | 35.00% | 35.00% | 35.00% |
Tax-exempt interest, percent | (11.40%) | (9.40%) | (10.70%) | (9.90%) |
Bank-owned life insurance, percent | (1.80%) | (1.60%) | (1.80%) | (1.60%) |
State income taxes, net of federal income tax benefit, percent | 5.00% | 4.40% | 4.60% | 3.80% |
Non-deductible acquisition expenses, percent | 0.40% | 8.40% | 0.40% | 4.80% |
General business credits, percent | (0.20%) | (0.10%) | (1.10%) | (0.10%) |
Other, percent | 0.30% | 0.00% | 0.00% | (0.50%) |
Total income tax provision, percent | 27.30% | 36.70% | 26.40% | 31.50% |
Estimated Fair Value of Finan70
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value Financial Assets and Liabilities Measured on a Recurring Basis (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)count | Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 370,855 | $ 427,241 |
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 | |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 1,277 | 1,262 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 369,578 | 425,979 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 370,855 | 427,241 |
Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 1,277 | 1,262 |
Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 369,578 | 425,979 |
Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | |
US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 6,910 | |
US Treasury securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 6,910 | |
US Treasury securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 6,910 | |
U.S. Government agencies and corporations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 6,123 | 26,653 |
U.S. Government agencies and corporations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 6,123 | 26,653 |
U.S. Government agencies and corporations | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 6,123 | 26,653 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 169,964 | 183,384 |
State and political subdivisions | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 169,964 | 183,384 |
State and political subdivisions | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 169,964 | 183,384 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 45,529 | 57,062 |
Mortgage-backed securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 45,529 | 57,062 |
Mortgage-backed securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 45,529 | 57,062 |
Collateralized mortgage obligations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 104,531 | 106,404 |
Collateralized mortgage obligations | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 104,531 | 106,404 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 43,431 | 45,566 |
Corporate debt securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 43,431 | 45,566 |
Corporate debt securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 43,431 | 45,566 |
Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Sample size used to validate pricing service results | count | 30 | |
Available for sale securities | $ 369,578 | 425,979 |
Debt securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 369,578 | 425,979 |
Debt securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 369,578 | 425,979 |
Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 1,277 | 1,262 |
Other equity securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 1,277 | 1,262 |
Other equity securities | Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 1,277 | $ 1,262 |
Estimated Fair Value of Finan71
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value Assets and Liabilities Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | $ 4,143 | $ 8,834 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 7,467 | 23,812 |
Other real estate owned | 4,143 | 8,834 |
Nonrecurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 7,467 | 23,812 |
Other real estate owned | $ 4,143 | $ 8,834 |
Estimated Fair Value of Finan72
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value of Financial Instruments (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment securities: | ||
Available for sale securities | $ 370,855 | $ 427,241 |
Held to maturity securities | 125,885 | 118,423 |
Held to maturity, estimated fair value | 127,815 | 118,234 |
Accrued interest receivable | 12,171 | 13,736 |
Federal Home Loan Bank stock | 10,707 | 9,832 |
Deposits: | ||
Non-interest-bearing demand | 536,052 | 559,586 |
Interest-bearing checking | 1,073,023 | 1,064,350 |
Savings | 195,887 | 189,489 |
Accrued interest payable | $ 1,620 | 1,507 |
Federal Home Loan Bank stock, redemption price, per share | $ 100 | |
Reported Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | $ 110,958 | 47,097 |
Investment securities: | ||
Available for sale securities | 370,855 | 427,241 |
Held to maturity securities | 125,885 | 118,423 |
Total investment securities | 496,740 | 545,664 |
Loans held for sale | 5,048 | 3,187 |
Loans, net | 2,146,929 | 2,132,515 |
Accrued interest receivable | 12,171 | 13,736 |
Deposits: | ||
Non-interest-bearing demand | 536,052 | 559,586 |
Interest-bearing checking | 1,073,023 | 1,064,350 |
Savings | 195,887 | 189,489 |
Certificates of deposit under $100,000 | 336,744 | 348,268 |
Certificates of deposit $100,000 and over | 321,855 | 301,828 |
Total deposits | 2,463,561 | 2,463,521 |
Federal funds purchased and securities sold under agreements to repurchase | 60,458 | 68,963 |
Federal Home Loan Bank borrowings | 107,000 | 87,000 |
Junior subordinated notes issued to capital trusts | 23,640 | 23,587 |
Long-term debt | 20,000 | 22,500 |
Accrued interest payable | 1,620 | 1,507 |
Estimate of Fair Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | 110,958 | 47,097 |
Investment securities: | ||
Available for sale securities | 370,855 | 427,241 |
Held to maturity, estimated fair value | 127,815 | 118,234 |
Total investment securities | 498,670 | 545,475 |
Loans held for sale | 5,124 | 3,262 |
Loans, net | 2,149,997 | 2,132,009 |
Accrued interest receivable | 12,171 | 13,736 |
Federal Home Loan Bank stock | 10,707 | 9,832 |
Deposits: | ||
Non-interest-bearing demand | 536,052 | 559,586 |
Interest-bearing checking | 1,073,023 | 1,064,350 |
Savings | 195,887 | 189,489 |
Certificates of deposit under $100,000 | 337,145 | 346,875 |
Certificates of deposit $100,000 and over | 322,881 | 301,521 |
Total deposits | 2,464,988 | 2,461,821 |
Federal funds purchased and securities sold under agreements to repurchase | 60,458 | 68,963 |
Federal Home Loan Bank borrowings | 108,246 | 86,817 |
Junior subordinated notes issued to capital trusts | 18,999 | 18,611 |
Long-term debt | 20,000 | 22,500 |
Accrued interest payable | 1,620 | 1,507 |
Fair Value, Inputs, Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 110,958 | 47,097 |
Investment securities: | ||
Available for sale securities | 1,277 | 1,262 |
Total investment securities | 1,277 | 1,262 |
Accrued interest receivable | 12,171 | 13,736 |
Deposits: | ||
Non-interest-bearing demand | 536,052 | 559,586 |
Interest-bearing checking | 1,073,023 | 1,064,350 |
Savings | 195,887 | 189,489 |
Total deposits | 1,804,962 | 1,813,425 |
Federal funds purchased and securities sold under agreements to repurchase | 60,458 | 68,963 |
Accrued interest payable | 1,620 | 1,507 |
Fair Value, Inputs, Level 2 | ||
Investment securities: | ||
Available for sale securities | 369,578 | 425,979 |
Held to maturity, estimated fair value | 127,815 | 118,234 |
Total investment securities | 497,393 | 544,213 |
Loans, net | 2,149,997 | 2,132,009 |
Federal Home Loan Bank stock | 10,707 | 9,832 |
Deposits: | ||
Certificates of deposit under $100,000 | 337,145 | 346,875 |
Certificates of deposit $100,000 and over | 322,881 | 301,521 |
Total deposits | 660,026 | 648,396 |
Federal Home Loan Bank borrowings | 108,246 | 86,817 |
Junior subordinated notes issued to capital trusts | 18,999 | 18,611 |
Long-term debt | 20,000 | 22,500 |
Fair Value, Inputs, Level 3 | ||
Investment securities: | ||
Loans held for sale | 5,124 | 3,262 |
Loans, net |
Branch Sales (Details)
Branch Sales (Details) - Davenport Iowa Branch [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations - MidWestOne Bank $ in Millions | Jun. 30, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Branch Deposits Held for Sale | $ 12 |
Branch Loans Held for Sale | $ 33 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions | Jul. 21, 2016USD ($)$ / shares |
Common Stock | |
Subsequent Event | |
Dividends Payable, Amount Per Share | $ / shares | $ 0.16 |
Dividends Payable, Date to be Paid | Sep. 15, 2016 |
Dividends Payable, Date of Record | Sep. 1, 2016 |
Common Stock | July 21 2016 Share Repurchase Program [Member] | |
Subsequent Event | |
Stock repurchase program, remaining authorized repurchase amount | $ | $ 5 |