Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
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 | |
Trading Symbol | MOFG | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 12,218,528 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 46,234 | $ 41,464 |
Interest-bearing deposits in banks | 3,164 | 1,764 |
Cash and cash equivalents | 49,398 | 43,228 |
Investment securities: | ||
Available for sale securities | 442,958 | 477,518 |
Held to maturity (fair value of $183,296 as of June 30, 2017 and $164,792 as of December 31, 2016) | 182,478 | 168,392 |
Loans held for sale | 1,636 | 4,241 |
Loans and leases receivable, gross | 2,197,503 | 2,165,143 |
Less: Allowance for loan losses | (22,510) | (21,850) |
Net loans | 2,174,993 | 2,143,293 |
Premises and equipment, net | 74,711 | 75,043 |
Accrued interest receivable | 12,606 | 13,871 |
Goodwill | 64,654 | 64,654 |
Other intangible assets, net | 13,518 | 15,171 |
Bank-owned life insurance | 47,877 | 47,231 |
Other real estate owned | 1,486 | 2,097 |
Deferred income taxes | 5,482 | 6,523 |
Other assets | 19,248 | 18,313 |
Total assets | 3,091,045 | 3,079,575 |
Deposits: | ||
Non-interest-bearing demand | 476,031 | 494,586 |
Interest-bearing checking | 1,131,151 | 1,136,282 |
Savings | 203,967 | 197,698 |
Certificates of deposit under $100,000 | 325,847 | 326,832 |
Certificates of deposit $100,000 and over | 356,713 | 325,050 |
Total deposits | 2,493,709 | 2,480,448 |
Federal funds purchased | 45,319 | 35,684 |
Securities sold under agreements to repurchase | 60,182 | 82,187 |
Federal Home Loan Bank borrowings | 90,000 | 115,000 |
Junior subordinated notes issued to capital trusts | 23,743 | 23,692 |
Long-term debt | 15,000 | 17,500 |
Deferred compensation liability | 5,224 | 5,180 |
Accrued interest payable | 1,551 | 1,472 |
Other liabilities | 13,445 | 12,956 |
Total liabilities | 2,748,173 | 2,774,119 |
Shareholders' equity: | ||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding at June 30, 2017 and December 31, 2016 | 0 | 0 |
Common stock, $1.00 par value; authorized 30,000,000 shares at June 30, 2017 and 15,000,000 shares at December 31, 2016; issued 12,463,481 shares at June 30, 2017 and 11,713,481 shares at December 31, 2016; outstanding 12,218,528 shares at June 30, 2017 and 11,436,360 shares at December 31, 2016 | 12,463 | 11,713 |
Additional paid-in capital | 187,062 | 163,667 |
Treasury stock at cost, 244,953 shares as of June 30, 2017 and 277,121 shares as of December 31, 2016 | (5,141) | (5,766) |
Retained earnings | 147,015 | 136,975 |
Accumulated other comprehensive income | 1,473 | (1,133) |
Total shareholders' equity | 342,872 | 305,456 |
Total liabilities and shareholders' equity | $ 3,091,045 | $ 3,079,575 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Held to maturity, estimated fair value | $ 183,296 | $ 164,792 |
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 | 30,000,000 | 15,000,000 |
Common stock, shares issued | 12,463,481 | 11,713,481 |
Common stock, shares outstanding | 12,218,528 | 11,436,360 |
Shares of Treasury stock | 244,953 | 277,121 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest income: | ||||
Interest and fees on loans | $ 25,650 | $ 24,635 | $ 49,929 | $ 49,751 |
Interest on bank deposits | 26 | 70 | 31 | 78 |
Interest on federal funds sold | 1 | 1 | 1 | 1 |
Interest on investment securities: | ||||
Taxable securities | 2,590 | 1,912 | 5,308 | 3,836 |
Tax-exempt securities | 1,587 | 1,420 | 3,152 | 2,857 |
Total interest income | 29,854 | 28,038 | 58,421 | 56,523 |
Interest expense: | ||||
Interest-bearing checking | 912 | 776 | 1,710 | 1,536 |
Savings | 51 | 60 | 102 | 166 |
Certificates of deposit under $100,000 | 886 | 719 | 1,745 | 1,288 |
Certificates of deposit $100,000 and over | 995 | 719 | 1,912 | 1,358 |
Total interest expense on deposits | 2,844 | 2,274 | 5,469 | 4,348 |
Interest on federal funds purchased | 25 | 71 | 25 | |
Interest on securities sold under agreements to repurchase | 34 | 32 | 72 | 85 |
Interest on Federal Home Loan Bank borrowings | 404 | 467 | 847 | 918 |
Interest on other borrowings | 3 | 6 | 6 | 12 |
Interest on junior subordinated notes issued to capital trusts | 240 | 196 | 461 | 393 |
Interest on long-term debt | 113 | 123 | 223 | 247 |
Total interest expense | 3,663 | 3,098 | 7,149 | 6,028 |
Net interest income | 26,191 | 24,940 | 51,272 | 50,495 |
Provision for loan losses | 1,240 | 1,171 | 2,281 | 2,236 |
Net interest income after provision for loan losses | 24,951 | 23,769 | 48,991 | 48,259 |
Noninterest income: | ||||
Trust, investment and insurance fees | 1,528 | 1,440 | 3,140 | 2,938 |
Service charges and fees on deposit accounts | 1,257 | 1,283 | 2,540 | 2,541 |
Loan origination and servicing fees | 718 | 855 | 1,520 | 1,474 |
Other service charges, commissions and fees | 1,497 | 1,378 | 2,955 | 2,808 |
Bank-owned life insurance income | 318 | 332 | 646 | 716 |
Gain on sale or call of available for sale securities | 20 | 223 | 20 | 467 |
Net gain on sale or call of held to maturity securities | 0 | 0 | 43 | 0 |
Gain (loss) on sale of premises and equipment | 8 | (40) | 6 | (251) |
Other gain | 37 | 124 | 50 | 1,307 |
Total noninterest income | 5,383 | 5,595 | 10,920 | 12,000 |
Noninterest expense: | ||||
Salaries and employee benefits | 11,789 | 13,321 | 23,673 | 25,966 |
Net occupancy and equipment expense | 3,033 | 3,326 | 6,337 | 6,577 |
Professional fees | 1,036 | 1,221 | 2,058 | 2,167 |
Data processing expense | 548 | 809 | 1,259 | 3,382 |
FDIC insurance expense | 352 | 398 | 719 | 819 |
Amortization of intangible assets | 804 | 1,015 | 1,653 | 2,076 |
Other operating expense | 2,402 | 2,725 | 4,600 | 5,274 |
Total noninterest expense | 19,964 | 22,815 | 40,299 | 46,261 |
Income before income tax expense | 10,370 | 6,549 | 19,612 | 13,998 |
Income tax expense | 3,136 | 1,794 | 5,665 | 3,699 |
Net income | $ 7,234 | $ 4,755 | $ 13,947 | $ 10,299 |
Share and per share information: | ||||
Ending number of shares outstanding | 12,218,528 | 11,435,860 | 12,218,528 | 11,435,860 |
Average number of shares outstanding | 12,200,689 | 11,431,252 | 11,855,108 | 11,424,122 |
Diluted average number of shares | 12,219,238 | 11,453,831 | 11,878,315 | 11,448,677 |
Earnings per common share - basic | $ 0.59 | $ 0.42 | $ 1.18 | $ 0.90 |
Earnings per common share - diluted | 0.59 | 0.42 | 1.17 | 0.90 |
Dividends paid per common share | $ 0.165 | $ 0.16 | $ 0.33 | $ 0.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 7,234 | $ 4,755 | $ 13,947 | $ 10,299 |
Other comprehensive income, available for sale securities: | ||||
Unrealized holding gains arising during period | 2,745 | 891 | 4,312 | 3,869 |
Reclassification adjustment for gains included in net income | (20) | (223) | (20) | (467) |
Income tax expense | (1,070) | (389) | (1,686) | (1,405) |
Other comprehensive income on available for sale securities | 1,655 | 279 | 2,606 | 1,997 |
Other comprehensive income, net of tax | 1,655 | 279 | 2,606 | 1,997 |
Comprehensive income | $ 8,889 | $ 5,034 | $ 16,553 | $ 12,296 |
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, 2015 | $ 296,178 | $ 0 | $ 11,713 | $ 163,487 | $ (6,331) | $ 123,901 | $ 3,408 |
Net income | 10,299 | 0 | 0 | 0 | 0 | 10,299 | 0 |
Dividends paid on common stock | (3,657) | 0 | 0 | 0 | 0 | (3,657) | 0 |
Stock options exercised | 38 | 0 | 0 | (22) | 60 | 0 | 0 |
Release/lapse of restriction on RSUs | (25) | 0 | 0 | (520) | 495 | 0 | 0 |
Stock compensation | 365 | 0 | 0 | 365 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 1,997 | 0 | 0 | 0 | 0 | 0 | 1,997 |
Balance at Jun. 30, 2016 | 305,195 | 0 | 11,713 | 163,310 | (5,776) | 130,543 | 5,405 |
Balance at Dec. 31, 2016 | 305,456 | 0 | 11,713 | 163,667 | (5,766) | 136,975 | (1,133) |
Net income | 13,947 | 0 | 0 | 0 | 0 | 13,947 | 0 |
Issuance of common stock, net of expenses | 24,360 | 0 | 750 | 23,610 | 0 | 0 | 0 |
Dividends paid on common stock | (3,907) | 0 | 0 | 0 | 0 | (3,907) | 0 |
Stock options exercised | 91 | 0 | 0 | (81) | 172 | 0 | 0 |
Release/lapse of restriction on RSUs | (107) | 0 | 0 | (560) | 453 | 0 | 0 |
Stock compensation | 426 | 0 | 0 | 426 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 2,606 | 0 | 0 | 0 | 0 | 0 | 2,606 |
Balance at Jun. 30, 2017 | $ 342,872 | $ 0 | $ 12,463 | $ 187,062 | $ (5,141) | $ 147,015 | $ 1,473 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity Parenthetical - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Dividends paid on common stock (per share) | $ 0.33 | $ 0.32 |
Additional Paid-in Capital | ||
Expenses incurred in issuance of common stock | $ 1,328 | $ 0 |
Common Stock | ||
Issuance of common stock (shares) | 750,000 | 0 |
Stock options exercised (shares) | 8,250 | 2,900 |
Release/lapse of restriction on RSUs (shares) | 26,875 | 25,633 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 13,947 | $ 10,299 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 2,281 | 2,236 |
Depreciation, amortization and accretion | 2,058 | 2,297 |
Amortization of other intangibles | 1,653 | 2,076 |
Amortization of premiums and discounts on investment securities, net | (650) | (916) |
(Gain) loss on sale of premises and equipment | (6) | 251 |
Deferred income taxes | 554 | 468 |
Excess tax benefit from share-based award activity | (91) | (13) |
Stock-based compensation | 426 | 365 |
Net gain on sale or call of available for sale securities | (20) | (467) |
Net gain on sale or call of held to maturity securities | (43) | 0 |
Net gain on sale of other real estate owned | (30) | (601) |
Net gain on sale of loans held for sale | (799) | (993) |
Writedown of other real estate owned | 23 | 0 |
Origination of loans held for sale | 41,284 | 47,588 |
Proceeds from sales of loans held for sale | 44,688 | 46,720 |
Decrease in accrued interest receivable | 1,265 | 1,565 |
Increase in cash surrender value of bank-owned life insurance | (646) | (716) |
(Increase) decrease in other assets | (935) | 342 |
Increase (decrease) in deferred compensation liability | 44 | 58 |
Increase in accrued interest payable, accounts payable, accrued expenses, and other liabilities | 568 | 3,973 |
Net cash provided by operating activities | 23,195 | 20,252 |
Cash flows from investing activities: | ||
Proceeds from sales of available for sale securities | 9,999 | 23,384 |
Proceeds from maturities and calls of available for sale securities | 41,162 | 51,873 |
Purchases of available for sale securities | (12,841) | (15,818) |
Proceeds from sales of held to maturity securities | 1,153 | 0 |
Proceeds from maturities and calls of held to maturity securities | 2,998 | 9,259 |
Purchases of held to maturity securities | (18,292) | (16,821) |
Net increase in loans | (34,188) | (17,610) |
Purchases of premises and equipment | (1,697) | (3,964) |
Proceeds from sale of other real estate owned | 825 | 6,252 |
Proceeds from sale of premises and equipment | 28 | 1,233 |
Proceeds of principal and earnings from bank-owned life insurance | 0 | 430 |
Net cash provided by (used in) investing activities | (10,853) | 38,218 |
Cash flows from financing activities: | ||
Net increase in deposits | 13,261 | 40 |
Increase (decrease) in federal funds purchased | 9,635 | (1,500) |
Decrease in securities sold under agreements to repurchase | (22,005) | (7,005) |
Proceeds from Federal Home Loan Bank borrowings | 50,000 | 30,000 |
Repayment of Federal Home Loan Bank borrowings | (75,000) | (10,000) |
Proceeds from stock options exercised | 1 | 38 |
Excess tax benefit from share-based award activity | 91 | 13 |
Taxes paid relating to net share settlement of equity awards | (108) | (38) |
Payments on long-term debt | (2,500) | (2,500) |
Dividends paid | (3,907) | (3,657) |
Proceeds from issuance of common stock | 25,688 | 0 |
Payments of stock issuance costs | (1,328) | 0 |
Net cash provided by (used in) financing activities | (6,172) | 5,391 |
Net increase in cash and cash equivalents | 6,170 | 63,861 |
Cash and cash equivalents at beginning of period | 43,228 | 47,097 |
Cash and cash equivalents at end of period | 49,398 | 110,958 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 7,070 | 5,915 |
Cash paid during the period for income taxes | 5,975 | 4,225 |
Supplemental schedule of non-cash investing activities: | ||
Transfer of loans to other real estate owned | $ 207 | $ 960 |
Principles of Consolidation and
Principles of Consolidation and Presentation | 6 Months Ended |
Jun. 30, 2017 | |
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, as amended, 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. 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 (the “Bank”), and all of the common stock of MidWest One Insurance Services, Inc., Oskaloosa, Iowa. We operate primarily through MidWest One Bank, our bank subsidiary, 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. 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 1, 2016, Central Bank merged with and into MidWest One Bank. 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, 2016 and for the year then ended. Management believes that the disclosures in this Form 10-Q 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, 2017 , and the results of operations and cash flows for the three and six months ended June 30, 2017 and 2016 . 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, 2017 may not be indicative of results for the year ending December 31, 2017 , or for any other period. The Company adopted ASU 2016-09, " Improvements to Employee Share-Based Payment Accounting ," on January 1, 2017. The Company elected to account for forfeitures when they occur and recognize them in compensation cost at that time. There was no effect due to this accounting policy election on the Company’s consolidated financial statements. The Company adopted ASU 2017-08, “ Premium Amortization on Purchased Callable Debt Securities ” during the second quarter of 2017. Since the Company was already amortizing premiums on callable investment securities between the date of purchase and the first call date, there was no cumulative effect adjustment necessary to the Company’s consolidated financial statements. 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, 2016 . 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. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 , none were issued or outstanding. Common Stock : As of June 30, 2017 , the number of authorized shares of common stock for the Company was 30,000,000 . At the Company’s 2017 annual meeting of shareholders, the Company’s shareholders approved an increase in the number of authorized shares of common stock to 30,000,000 , which became effective on April 21, 2017. As of June 30, 2017 , 12,218,528 shares were outstanding. On March 17, 2017, the Company entered into an underwriting agreement to offer and sell, through an underwriter, up to 750,000 newly issued shares of the Company’s common stock, $1.00 par value per share, at a public purchase price of $34.25 per share. This included 250,000 shares of the Company’s common stock granted as a 30-day option to purchase to cover over-allotments, if any. On April 6, 2017, the underwriter purchased the full amount of its over-allotment option of 250,000 shares. 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 . During the second quarter of 2017 the Company repurchased no common stock. Of the $5.0 million of stock authorized under the repurchase plan, $5.0 million remained available for possible future repurchases as of June 30, 2017 . |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2017 | |
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) 2017 2016 2017 2016 Basic earnings per common share computation Numerator: Net income $ 7,234 $ 4,755 $ 13,947 $ 10,299 Denominator: Weighted average shares outstanding 12,200,689 11,431,252 11,855,108 11,424,122 Basic earnings per common share $ 0.59 $ 0.42 $ 1.18 $ 0.90 Diluted earnings per common share computation Numerator: Net income $ 7,234 $ 4,755 $ 13,947 $ 10,299 Denominator: Weighted average shares outstanding, including all dilutive potential shares 12,219,238 11,453,831 11,878,315 11,448,677 Diluted earnings per common share $ 0.59 $ 0.42 $ 1.17 $ 0.90 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) U.S. Government agencies and corporations $ 5,768 $ 10 $ — $ 5,778 State and political subdivisions 147,392 4,474 27 151,839 Mortgage-backed securities 53,654 490 29 54,115 Collateralized mortgage obligations 167,130 118 2,858 164,390 Corporate debt securities 64,331 326 155 64,502 Total debt securities 438,275 5,418 3,069 440,624 Other equity securities 2,263 101 30 2,334 Total $ 440,538 $ 5,519 $ 3,099 $ 442,958 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) U.S. Government agencies and corporations $ 5,895 $ 10 $ — $ 5,905 State and political subdivisions 162,145 3,545 418 165,272 Mortgage-backed securities 61,606 315 567 61,354 Collateralized mortgage obligations 175,506 148 4,387 171,267 Corporate debt securities 72,979 76 602 72,453 Total debt securities 478,131 4,094 5,974 476,251 Other equity securities 1,259 66 58 1,267 Total $ 479,390 $ 4,160 $ 6,032 $ 477,518 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, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) State and political subdivisions $ 121,162 $ 1,577 $ 657 $ 122,082 Mortgage-backed securities 2,202 7 5 2,204 Collateralized mortgage obligations 24,076 3 357 23,722 Corporate debt securities 35,038 601 351 35,288 Total $ 182,478 $ 2,188 $ 1,370 $ 183,296 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) State and political subdivisions $ 107,941 $ 156 $ 2,713 $ 105,384 Mortgage-backed securities 2,398 5 34 2,369 Collateralized mortgage obligations 26,036 — 598 25,438 Corporate debt securities 32,017 149 565 31,601 Total $ 168,392 $ 310 $ 3,910 $ 164,792 Investment securities with a carrying value of $172.0 million and $212.1 million at June 30, 2017 and December 31, 2016 , 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, 2017 and December 31, 2016 . 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, 2017 and December 31, 2016 , aggregated by investment category and length of time that individual securities have been in a continuous loss position: As of June 30, 2017 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 11 $ 9,175 $ 24 $ 451 $ 3 $ 9,626 $ 27 Mortgage-backed securities 11 11,495 28 23 1 11,518 29 Collateralized mortgage obligations 29 112,364 1,857 27,948 1,001 140,312 2,858 Corporate debt securities 4 18,769 155 — — 18,769 155 Other equity securities 1 — — 1,970 30 1,970 30 Total 56 $ 151,803 $ 2,064 $ 30,392 $ 1,035 $ 182,195 $ 3,099 As of December 31, 2016 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 63 $ 24,574 $ 389 $ 427 $ 29 $ 25,001 $ 418 Mortgage-backed securities 20 40,752 566 23 1 40,775 567 Collateralized mortgage obligations 29 140,698 3,544 16,776 843 157,474 4,387 Corporate debt securities 11 54,891 602 — — 54,891 602 Other equity securities 1 — — 942 58 942 58 Total 124 $ 260,915 $ 5,101 $ 18,168 $ 931 $ 279,083 $ 6,032 As of June 30, 2017 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 77 $ 29,935 $ 581 $ 1,943 $ 76 $ 31,878 $ 657 Mortgage-backed securities 3 1,155 5 — — 1,155 5 Collateralized mortgage obligations 6 11,787 220 6,105 137 17,892 357 Corporate debt securities 4 3,416 4 2,544 347 5,960 351 Total 90 $ 46,293 $ 810 $ 10,592 $ 560 $ 56,885 $ 1,370 As of December 31, 2016 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 180 $ 65,174 $ 2,713 $ — $ — $ 65,174 $ 2,713 Mortgage-backed securities 5 2,246 34 — — 2,246 34 Collateralized mortgage obligations 7 18,964 369 6,435 229 25,399 598 Corporate debt securities 11 19,198 187 2,512 378 21,710 565 Total 203 $ 105,582 $ 3,303 $ 8,947 $ 607 $ 114,529 $ 3,910 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, 2017 and December 31, 2016 , 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, 2017 , approximately 56% of the municipal bonds held by the Company were Iowa-based, and approximately 21% 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 believed that the municipal obligations identified in the tables above were temporarily impaired as of June 30, 2017 and December 31, 2016 . At June 30, 2017 and December 31, 2016 , all but one of the Company’s corporate bonds held an investment grade rating from Moody’s, S&P or Kroll, or carried a guarantee from an agency of the US government. We have evaluated financial statements of the company issuing the non-investment grade bond and found the company’s earnings and equity position to be satisfactory and in line with industry norms. Therefore, we believe the low market value of this investment is temporary and expect to receive all contractual payments. The internal evaluation of the non-investment grade bond along with the investment grade ratings on the remainder of the corporate portfolio lead us to conclude that all of the corporate bonds in our portfolio will continue to pay according to their contractual terms. Since the Company has the ability and intent to hold securities until price recovery, we believe that there is no other-than-temporary-impairment in the corporate bond portfolio. As of June 30, 2017 , the Company also owned $0.4 million of equity securities in banks and financial service-related companies, and $2.0 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, 2017 and the full year of 2016 , 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. During the first quarter of 2017 as part of the Company’s annual review and analysis of municipal investments, $1.2 million of municipal bonds from a single issuer in the held to maturity portfolio, which did not carry a credit rating from one of the major statistical rating agencies, were identified as having an elevated level of credit risk. While the instruments were currently making payments as agreed, certain financial trends were identified that provided material doubt as to the ability of the entity to continue to service the debt in the future. The investment securities were classified as “watch,” and the Company’s asset and liability management committee were notified of the situation. In early March 2017 the Company learned of a potential buyer for the investments and a bid to purchase was received and accepted. Investment securities designated as held to maturity may generally not be sold without calling into question the Company’s stated intention to hold other debt securities to maturity in the future (“tainting”), unless certain conditions are met that provide for an exception to accounting policy. One of these exceptions, as outlined under Accounting Standards Codification (“ASC”) 320-10-25-6(a), allows for the sale of an investment that is classified as held to maturity due to significant deterioration of the issuer’s creditworthiness. Since the bonds had been internally classified as “watch” due to credit deterioration, the Company believes that the sale was in accordance with the allowable provisions of ASC 320-10-25-6(a), and as such, does not “taint” the remainder of the held to maturity portfolio. A small gain was realized on the sale. 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, 2017 , 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 $ 12,458 $ 12,566 $ 2,385 $ 2,385 Due after one year through five years 121,620 123,272 18,752 18,941 Due after five years through ten years 75,303 78,015 79,287 80,684 Due after ten years 8,110 8,266 55,776 55,360 Debt securities without a single maturity date 220,784 218,505 26,278 25,926 Total $ 438,275 $ 440,624 $ 182,478 $ 183,296 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 $2.3 million and a fair value of $2.3 million are also excluded from this table. Proceeds from the sales of investment securities available for sale during the six months ended June 30, 2017 and June 30, 2016 were $10.0 million and $23.4 million , respectively. Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. Gross realized gains on fixed maturity available for sale investment securities for the three and six months ended June 30, 2017 and 2016 were $20,000 and $467,000 , respectfully, while gross realized gains on fixed maturity held to maturity investment securities were $43,000 and zero , respectfully. |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total June 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ 400 $ 2,125 $ 697 $ 236 $ — $ 3,458 Collectively evaluated for impairment 2,266 5,834 7,969 1,958 222 18,249 Purchased credit impaired loans — — 347 456 — 803 Total $ 2,666 $ 7,959 $ 9,013 $ 2,650 $ 222 $ 22,510 Loans receivable Individually evaluated for impairment $ 3,044 $ 11,700 $ 16,697 $ 3,752 $ — $ 35,193 Collectively evaluated for impairment 104,607 473,896 1,052,889 474,273 34,666 2,140,331 Purchased credit impaired loans — 41 15,977 5,961 — 21,979 Total $ 107,651 $ 485,637 $ 1,085,563 $ 483,986 $ 34,666 $ 2,197,503 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 62 $ 2,066 $ 1,924 $ 299 $ — $ 4,351 Collectively evaluated for impairment 1,941 4,199 7,692 2,791 255 16,878 Purchased credit impaired loans — 9 244 368 — 621 Total $ 2,003 $ 6,274 $ 9,860 $ 3,458 $ 255 $ 21,850 Loans receivable Individually evaluated for impairment $ 5,339 $ 11,434 $ 11,450 $ 3,955 $ — $ 32,178 Collectively evaluated for impairment 108,004 449,380 1,036,049 480,143 36,591 2,110,167 Purchased credit impaired loans — 156 16,744 5,898 — 22,798 Total $ 113,343 $ 460,970 $ 1,064,243 $ 489,996 $ 36,591 $ 2,165,143 Included above as of June 30, 2017 , are loans with a contractual balance of $27.6 million and a recorded balance of $27.2 million , which are covered under loss sharing agreements with the FDIC. The agreements cover certain losses and expenses and expire at various dates through October 7, 2021 . The related FDIC indemnification asset is reported separately in Note 7. “Other Assets.” The FDIC loss sharing agreement was terminated on July 14, 2017, at which time the loans were reclassified to non-covered assets (see Note 15. “Subsequent Events”). As of June 30, 2017 , the gross purchased credit impaired loans included above were $24.5 million , with a discount of $2.6 million . Loans with unpaid principal in the amount of $485.0 million and $498.3 million at June 30, 2017 and December 31, 2016 , 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 were as follows: Allowance for Loan Loss Activity For the Three Months Ended June 30, 2017 and 2016 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2017 Beginning balance $ 2,460 $ 6,021 $ 9,751 $ 3,764 $ 221 $ — $ 22,217 Charge-offs (347 ) (464 ) (45 ) (52 ) (135 ) — (1,043 ) Recoveries 4 83 5 — 4 — 96 Provision 549 2,319 (698 ) (1,062 ) 132 — 1,240 Ending balance $ 2,666 $ 7,959 $ 9,013 $ 2,650 $ 222 $ — $ 22,510 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 Allowance for Loan Loss Activity For the Six Months Ended June 30, 2017 and 2016 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2017 Beginning balance $ 2,003 $ 6,274 $ 9,860 $ 3,458 $ 255 $ — $ 21,850 Charge-offs (884 ) (529 ) (106 ) (80 ) (160 ) — (1,759 ) Recoveries 14 102 15 — 7 — 138 Provision 1,533 2,112 (756 ) (728 ) 120 — 2,281 Ending balance $ 2,666 $ 7,959 $ 9,013 $ 2,650 $ 222 $ — $ 22,510 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 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, a decline in the U.S. economy 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 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 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. The 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. 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. 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 the 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 the 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 loan occurring during the stated periods: Three Months Ended June 30, 2017 2016 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) : Commercial real estate: Farmland Extended maturity date 2 $ 176 $ 176 — $ — $ — Commercial real estate-other Other 1 10,546 10,923 — — — Total 3 $ 10,722 $ 11,099 — $ — $ — Six Months Ended June 30, 2017 2016 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 Commercial and industrial Extended maturity date 6 2,037 2,083 — — — Commercial real estate: Farmland Extended maturity date 2 176 176 — — — Commercial real estate-other Extended maturity date 1 968 968 — — — Other 1 10,546 10,923 — — — 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 10 $ 13,727 $ 14,150 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 modified as TDRs within 12 months of modification 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, 2017 2016 2017 2016 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: Commercial and industrial Extended maturity date 1 $ 550 — $ — 4 $ 1,504 — $ — Commercial real estate: Commercial real estate-other Extended maturity date 1 968 — — 1 968 — — Total 2 $ 1,518 — $ — 5 $ 2,472 — $ — (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 national 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 quality and experience of lending staff and management. • 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 the volume and severity of past due loans, classified loans and non-performing loans. • The existence and potential impact of any concentrations of credit. • Changes in the nature and terms of loans such as growth rates and utilization rates. • Changes in the value of underlying collateral for collateral-dependent loans, considering the Company’s disposition bias. • 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. 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 loan 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, 2017 and December 31, 2016 : Pass Special Mention/ Watch Substandard Doubtful Loss Total (in thousands) June 30, 2017 Agricultural $ 84,851 $ 21,111 $ 1,689 $ — $ — $ 107,651 Commercial and industrial (1) 443,739 25,041 16,849 8 — 485,637 Commercial real estate: Construction and development 132,112 1,230 2,387 — — 135,729 Farmland 79,096 10,192 562 — — 89,850 Multifamily 135,222 1,792 492 — — 137,506 Commercial real estate-other 668,602 25,464 28,412 — — 722,478 Total commercial real estate 1,015,032 38,678 31,853 — — 1,085,563 Residential real estate: One- to four- family first liens 356,547 3,025 10,757 — — 370,329 One- to four- family junior liens 110,606 1,145 1,906 — — 113,657 Total residential real estate 467,153 4,170 12,663 — — 483,986 Consumer 34,538 — 94 34 — 34,666 Total $ 2,045,313 $ 89,000 $ 63,148 $ 42 $ — $ 2,197,503 Pass Special Mention/ Watch Substandard Doubtful Loss Total (in thousands) December 31, 2016 Agricultural $ 95,103 $ 14,089 $ 4,151 $ — $ — $ 113,343 Commercial and industrial 429,392 11,065 19,016 8 — 459,481 Credit cards 1,489 — — — — 1,489 Commercial real estate: Construction and development 121,982 2,732 1,971 — — 126,685 Farmland 83,563 8,986 2,430 — — 94,979 Multifamily 134,975 548 480 — — 136,003 Commercial real estate-other 666,767 20,955 18,854 — — 706,576 Total commercial real estate 1,007,287 33,221 23,735 — — 1,064,243 Residential real estate: One- to four- family first liens 359,029 2,202 11,002 — — 372,233 One- to four- family junior liens 114,233 1,628 1,902 — — 117,763 Total residential real estate 473,262 3,830 12,904 — — 489,996 Consumer 36,419 1 134 37 — 36,591 Total $ 2,042,952 $ 62,206 $ 59,940 $ 45 $ — $ 2,165,143 (1) As of the first quarter of 2017, the Company no longer considered credit cards a separate class of loans, and these balances are now included in commercial and industrial loans. Included within the special mention/watch, substandard, and doubtful categories at June 30, 2017 and December 31, 2016 are purchased credit impaired loans totaling $13.9 million and $15.3 million , respectively. Below are descriptions of the risk classifications of our loan portfolio. 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 as 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, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (in thousands) With no related allowance recorded: Agricultural $ 1,192 $ 1,692 $ — $ 3,673 $ 4,952 $ — Commercial and industrial 4,781 4,791 — 6,211 6,259 — Commercial real estate: Construction and development 360 360 — 445 1,170 — Farmland 524 524 — 2,230 2,380 — Multifamily — — — — — — Commercial real estate-other 3,359 3,359 — 2,224 2,384 — Total commercial real estate 4,243 4,243 — 4,899 5,934 — Residential real estate: One- to four- family first liens 2,371 2,375 — 2,429 2,442 — One- to four- family junior liens 13 13 — — — — Total residential real estate 2,384 2,388 — 2,429 2,442 — Consumer — — — — — — Total $ 12,600 $ 13,114 $ — $ 17,212 $ 19,587 $ — With an allowance recorded: Agricultural $ 1,852 $ 1,852 $ 400 $ 1,666 $ 1,669 $ 62 Commercial and industrial 6,919 6,919 2,125 5,223 5,223 2,066 Commercial real estate: Construction and development 738 1,464 163 263 270 21 Farmland — — — — — — Multifamily — — — — — — Commercial real estate-other 11,716 11,716 534 6,288 6,344 1,903 Total commercial real estate 12,454 13,180 697 6,551 6,614 1,924 Residential real estate: One- to four- family first liens 1,368 1,368 236 1,526 1,526 299 One- to four- family junior liens — — — — — — Total residential real estate 1,368 1,368 236 1,526 1,526 299 Consumer — — — — — — Total $ 22,593 $ 23,319 $ 3,458 $ 14,966 $ 15,032 $ 4,351 Total: Agricultural $ 3,044 $ 3,544 $ 400 $ 5,339 $ 6,621 $ 62 Commercial and industrial 11,700 11,710 2,125 11,434 11,482 2,066 Commercial real estate: Construction and development 1,098 1,824 163 708 1,440 21 Farmland 524 524 — 2,230 2,380 — Multifamily — — — — — — Commercial real estate-other 15,075 15,075 534 8,512 8,728 1,903 Total commercial real estate 16,697 17,423 697 11,450 12,548 1,924 Residential real estate: One- to four- family first liens 3,739 3,743 236 3,955 3,968 299 One- to four- family junior liens 13 13 — — — — Total residential real estate 3,752 3,756 236 3,955 3,968 299 Consumer — — — — — — Total $ 35,193 $ 36,433 $ 3,458 $ 32,178 $ 34,619 $ 4,351 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, 2017 2016 2017 2016 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 $ 1,192 $ 66 $ 1,266 $ 13 $ 1,216 $ 79 $ 1,291 $ 27 Commercial and industrial 4,787 67 3,777 10 4,143 90 3,927 — Commercial real estate: Construction and development 360 — — — 360 — — — Farmland 1,686 36 2,568 28 2,073 69 2,580 49 Multifamily — — — — — — — — Commercial real estate-other 3,118 71 1,979 3 3,040 103 2,009 12 Total commercial real estate 5,164 107 4,547 31 5,473 172 4,589 61 Residential real estate: One- to four- family first liens 2,409 46 2,200 23 2,417 70 2,209 44 One- to four- family junior liens 13 — — — 13 — — — Total residential real estate 2,422 46 2,200 23 2,430 70 2,209 44 Consumer — — — — — — — — Total $ 13,565 $ 286 $ 11,790 $ 77 $ 13,262 $ 411 $ 12,016 $ 132 With an allowance recorded: Agricultural $ 1,855 $ 53 $ 1,856 $ 7 $ 1,875 $ 67 $ 1,878 $ 20 Commercial and industrial 4,444 14 3,863 14 3,495 37 3,724 10 Commercial real estate: Construction and development 809 — — — 832 — — — Farmland — — — — — — — — Multifamily — — 158 — — — 158 — Commercial real estate-other 6,294 16 5,416 — 4,410 — 2,415 — Total commercial real estate 7,103 16 5,574 — 5,242 — 2,573 — Residential real estate: One- to four- family first liens 1,372 17 1,351 11 1,389 26 1,357 19 One- to four- family junior liens — — — — — — — — Total residential real estate 1,372 17 1,351 11 1,389 26 1,357 19 Consumer — — — — — — — — Total $ 14,774 $ 100 $ 12,644 $ 32 $ 12,001 $ 130 $ 9,532 $ 49 Total: Agricultural $ 3,047 $ 119 $ 3,122 $ 20 $ 3,091 $ 146 $ 3,169 $ 47 Commercial and industrial 9,231 81 7,640 24 7,638 127 7,651 10 Commercial real estate: Construction and development 1,169 — — — 1,192 — — — Farmland 1,686 36 2,568 28 2,073 69 2,580 49 Multifamily — — 158 — — — 158 — Commercial real estate-other 9,412 87 7,395 3 7,450 103 4,424 12 Total commercial real estate 12,267 123 10,121 31 10,715 172 7,162 61 Residential real estate: One- to four- family first liens 3,781 63 3,551 34 3,806 96 3,566 63 One- to four- family junior liens 13 — — — 13 — — — Total residential real estate 3,794 63 3,551 34 3,819 96 3,566 63 Consumer — — — — — — — — Total $ 28,339 $ 386 $ 24,434 $ 109 $ 25,263 $ 541 $ 21,548 $ 181 The following table presents the contractual aging of the recorded investment in past due loans by class of loans at June 30, 2017 and December 31, 2016 : 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, 2017 Agricultural $ 101 $ — $ 430 $ 531 $ 107,120 $ 107,651 Commercial and industrial (1) 981 1,920 2,253 5,154 480,483 485,637 Commercial real |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 . The carrying amount of goodwill was $64.7 million at June 30, 2017 , the same as at December 31, 2016 . 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 and for the six months ended June 30, 2017 : Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Finite-Lived Trade Name Intangible Customer List Intangible Total (in thousands) June 30, 2017 Balance, beginning of period $ 203 $ 6,846 $ 7,040 $ 960 $ 122 $ 15,171 Amortization expense (27 ) (1,506 ) — (111 ) (9 ) (1,653 ) Balance at end of period $ 176 $ 5,340 $ 7,040 $ 849 $ 113 $ 13,518 Gross carrying amount $ 1,320 $ 18,206 $ 7,040 $ 1,380 $ 330 $ 28,276 Accumulated amortizations (1,144 ) (12,866 ) — (531 ) (217 ) (14,758 ) Net book value $ 176 $ 5,340 $ 7,040 $ 849 $ 113 $ 13,518 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2017 | |
Other Assets [Abstract] | |
Other Assets Disclosure [Text Block] | Other Assets The components of the Company’s other assets were as follows: June 30, 2017 December 31, 2016 (in thousands) Federal Home Loan Bank Stock $ 12,181 $ 12,800 FDIC indemnification asset, net — 479 Prepaid expenses 1,874 1,760 Mortgage servicing rights 2,136 1,951 Accounts receivable & other miscellaneous assets 3,057 1,323 $ 19,248 $ 18,313 The Bank is a member of the FHLB of Des Moines, and ownership of FHLB stock is a requirement for such membership. The amount of FHLB stock the 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, 2017 or in the year ended December 31, 2016 . 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. On July 14, 2017, the Bank, entered into an agreement with the FDIC that terminated all of the Bank's loss sharing agreements related to the former Central Bank. See Note 15. “Subsequent Events” to our consolidated financial statements for additional information related to our termination of the loss-share agreements. 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, 2017 | |
Short-term Debt [Abstract] | |
Short-term Debt [Text Block] | Short-Term Borrowings Short-term borrowings were as follows as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance Federal funds purchased 1.31 % $ 45,319 0.83 % $ 35,684 Securities sold under agreements to repurchase 0.23 60,182 0.22 82,187 Total 0.69 % $ 105,501 0.40 % $ 117,871 At June 30, 2017 and December 31, 2016 , the Company had no borrowings through the Federal Reserve Discount Window, while the borrowing capacity was $11.7 million as of June 30, 2017 , the same as of December 31, 2016 . As of both June 30, 2017 and December 31, 2016 , the Bank had municipal securities pledged with a market value of $13.0 million , 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, 2017 and December 31, 2016 , there were $45.3 million and $35.7 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 May 2017, and is now scheduled to mature on April 28, 2018 . The Company had no balance outstanding under this agreement as of June 30, 2017 . |
Subordinated Notes Payable
Subordinated Notes Payable | 6 Months Ended |
Jun. 30, 2017 | |
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 (junior subordinated notes); 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, 2017 and December 31, 2016 : Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 6/30/2017 June 30, 2017 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,644 Three-month LIBOR + 3.50% 4.75 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,635 Three-month LIBOR + 2.15% 3.44 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 2.84 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,743 Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 12/31/2016 December 31, 2016 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,614 Three-month LIBOR + 3.50% 4.46 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,614 Three-month LIBOR + 2.15% 3.15 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 2.55 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,692 (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 junior subordinated 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, 2017 | |
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, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance FHLB Borrowings 1.61 % $ 90,000 1.56 % $ 115,000 Note payable to unaffiliated bank 2.98 15,000 2.52 17,500 Total 1.81 % $ 105,000 1.69 % $ 132,500 The Company utilizes FHLB borrowings as a supplement to customer deposits to fund interest-earning assets and to assist in managing interest rate risk. As a member of the Federal Home Loan Bank of Des Moines, the Bank may borrow funds from the FHLB in amounts up to 35% of the Bank’s total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. Advances from the FHLB are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 5 “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 on September 30, 2015 . As of June 30, 2017 , $15.0 million of that note was outstanding. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The income tax provisions for the three and six months ended June 30, 2017 and 2016 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, 2017 2016 2017 2016 (in thousands) Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Expected provision $ 3,629 35.0 % $ 2,292 35.0 % $ 6,864 35.0 % $ 4,899 35.0 % Tax-exempt interest (795 ) (7.7 ) (745 ) (11.4 ) (1,581 ) (8.1 ) (1,499 ) (10.7 ) Bank-owned life insurance (110 ) (1.1 ) (115 ) (1.8 ) (225 ) (1.1 ) (249 ) (1.8 ) State income taxes, net of federal income tax benefit 443 4.3 327 5.0 848 4.3 647 4.6 Non-deductible acquisition expenses — — 28 0.4 — — 53 0.4 General business credits (19 ) (0.2 ) (14 ) (0.2 ) (40 ) (0.2 ) (153 ) (1.1 ) Other (12 ) (0.1 ) 21 0.4 (201 ) (1.0 ) 1 — Total income tax provision $ 3,136 30.2 % $ 1,794 27.4 % $ 5,665 28.9 % $ 3,699 26.4 % |
Estimated Fair Value of Financi
Estimated Fair Value of Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair value is the price that would be received in selling an asset or paid in transferring a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (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, mortgage-backed securities, and collateralized mortgage 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 have their credit rating evaluated by a securities dealer and that information is used to verify the primary independent service’s rating and pricing. The following table summarizes assets measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 . 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, 2017 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 $ 5,778 $ — $ 5,778 $ — State and political subdivisions 151,839 — 151,839 — Mortgage-backed securities 54,115 — 54,115 — Collateralized mortgage obligations 164,390 — 164,390 — Corporate debt securities 64,502 — 64,502 — Total available for sale debt securities 440,624 — 440,624 — Other equity securities 2,334 2,334 — — Total securities available for sale $ 442,958 $ 2,334 $ 440,624 $ — Fair Value Measurement at December 31, 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 $ 5,905 $ — $ 5,905 $ — State and political subdivisions 165,272 — 165,272 — Mortgage-backed securities 61,354 — 61,354 — Collateralized mortgage obligations 171,267 — 171,267 — Corporate debt securities 72,453 — 72,453 — Total available for sale debt securities 476,251 — 476,251 — Other equity securities 1,267 1,267 — — Total securities available for sale $ 477,518 $ 1,267 $ 476,251 $ — There were no transfers of assets between levels of the fair value hierarchy during the three and six months ended June 30, 2017 or the year ended December 31, 2016 . 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, 2017 or the year ended December 31, 2016 . 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, 2017 and December 31, 2016 , as more fully described above. Fair Value Measurement at June 30, 2017 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 $ 1,073 $ — $ — $ 1,073 Other real estate owned $ 1,486 $ — $ — $ 1,486 Fair Value Measurement at December 31, 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 $ 8,774 $ — $ — $ 8,774 Other real estate owned $ 2,097 $ — $ — $ 2,097 The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at June 30, 2017 and December 31, 2016 . 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 the Bank. Neither of these components has been given consideration in the presentation of fair values below. June 30, 2017 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 $ 49,398 $ 49,398 $ 49,398 $ — $ — Investment securities: Available for sale 442,958 442,958 2,334 440,624 — Held to maturity 182,478 183,296 — 183,296 — Total investment securities 625,436 626,254 2,334 623,920 — Loans held for sale 1,636 1,667 — — 1,667 Loans, net 2,174,993 2,175,104 — 2,175,104 — Accrued interest receivable 12,606 12,606 12,606 — — Federal Home Loan Bank stock 12,181 12,181 — 12,181 — Financial liabilities: Deposits: Non-interest bearing demand 476,031 476,031 476,031 — — Interest-bearing checking 1,131,151 1,131,151 1,131,151 — — Savings 203,967 203,967 203,967 — — Certificates of deposit under $100,000 325,847 323,885 — 323,885 — Certificates of deposit $100,000 and over 356,713 355,582 — 355,582 — Total deposits 2,493,709 2,490,616 1,811,149 679,467 — Federal funds purchased and securities sold under agreements to repurchase 105,501 105,501 105,501 — — Federal Home Loan Bank borrowings 90,000 89,791 — 89,791 — Junior subordinated notes issued to capital trusts 23,743 19,462 — 19,462 — Long-term debt 15,000 15,000 — 15,000 — Accrued interest payable 1,551 1,551 1,551 — — December 31, 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 $ 43,228 $ 43,228 $ 43,228 $ — $ — Investment securities: Available for sale 477,518 477,518 1,267 476,251 — Held to maturity 168,392 164,792 — 164,792 — Total investment securities 645,910 642,310 1,267 641,043 — Loans held for sale 4,241 4,286 — — 4,286 Loans, net 2,143,293 2,138,252 — 2,138,252 — Accrued interest receivable 13,871 13,871 13,871 — — Federal Home Loan Bank stock 12,800 12,800 — 12,800 — Financial liabilities: Deposits: Non-interest bearing demand 494,586 494,586 494,586 — — Interest-bearing checking 1,136,282 1,136,282 1,136,282 — — Savings 197,698 197,698 197,698 — — Certificates of deposit under $100,000 326,832 324,978 — 324,978 — Certificates of deposit $100,000 and over 325,050 324,060 — 324,060 — Total deposits 2,480,448 2,477,604 1,828,566 649,038 — Federal funds purchased and securities sold under agreements to repurchase 117,871 117,871 117,871 — — Federal Home Loan Bank borrowings 115,000 114,590 — 114,590 — Junior subordinated notes issued to capital trusts 23,692 19,248 — 19,248 — Long-term debt 17,500 17,500 — 17,500 — Accrued interest payable 1,472 1,472 1,472 — — • 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, 2017 , 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, 2017 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans $ 1,073 Modified appraised value Third party appraisal NM * NM * NM * Appraisal discount NM * NM * NM * Other real estate owned $ 1,486 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, 2017 | |
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, Florida, and Denver, Colorado. Substantially all income is derived from a diverse base of commercial, mortgage and retail lending activities, and investments. |
Effect of New Financial Account
Effect of New Financial Accounting Standards | 6 Months Ended |
Jun. 30, 2017 | |
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 Financial Accounting Standards Board (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. 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 Company’s revenue is comprised of interest income on financial assets, which is excluded from the scope of this new guidance, and noninterest income. The Company expects this new guidance will potentially require it to change how certain recurring revenue streams are recognized within trust and asset management fees, sales of other real estate, credit and debit card interchange fees, and credit card revenue. In addition, the Company continues to stay apprised of certain issues related to implementation of the standard that are relevant to the banking industry which are still pending resolution. The Company is beginning to analyze the expected areas of impact, and currently does not expect the effect on the Company’s consolidated financial statements to be material. The Company has determined that it will not early-adopt this standard, and plans to utilize the modified retrospective transition method. 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 did not 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 Company is in the process of evaluating the impact of this ASU on its consolidated financial statements, including potential changes to the Company’s note disclosure of the fair value of its financial assets and liabilities, and does not expect to early adopt the standard. 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 has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore not recognized on the Company’s consolidated balance sheets. The Company expects the new guidance will require these lease agreements to now be recognized on the consolidated balance sheets as right-of-use assets and a corresponding lease liability. However, the Company continues to evaluate the extent of the potential impact the new guidance will have on the Company’s consolidated financial statements and the availability of outside vendor products to assist in the implementation, and does not expect to early adopt the standard. 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 amendments were effective January 1, 2017. The Company elected to account for forfeitures as they occur. The effect of this election and other amendments did not have an effect 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, and is expected to increase the allowance for loan losses upon adoption. The Company has formed a working group to evaluate the impact of the standard’s adoption on the Company’s consolidated financial statements, including viewing demonstrations of the capabilities of outside vendor software systems, and evaluation of the ability of these systems to meet the processing necessary to support the data collection and retention requirements of the Company in implementation of the new standard. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. The new guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. The update applies to public business entities that are SEC filers in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company early adopted this amendment during the second quarter of 2017, and adoption did not have a significant effect on the Company’s consolidated financial statements. In March 2017, the FASB issued Accounting Standards Update No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities. The new guidance requires that the premium amortization period on non-contingently callable securities, end at the earliest call date, rather than the contractual maturity date. The shorter amortization period means that interest income would generally be lower in the periods before the earliest call date and higher thereafter (if the security is not called) compared to current GAAP. The update applies to public business entities in fiscal years beginning after December 15, 2018. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company adopted this update during the second quarter of 2017. Since the Company was already amortizing premiums on callable investment securities between the date of purchase and the first call date, there was no effect on the Company’s consolidated financial statements. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 , but prior to the date the consolidated financial statements were issued, that provided additional evidence about conditions that existed at June 30, 2017 have been recognized in the consolidated financial statements for the three and six months ended June 30, 2017 . Events or transactions that provided evidence about conditions that did not exist at June 30, 2017 , 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, 2017 . On July 14, 2017 , the board of directors of the Company declared a cash dividend of $0.17 per share payable on September 15, 2017 to shareholders of record as of the close of business on September 1, 2017 . On July 14, 2017 , MidWest One Bank (the “Bank”), entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) that terminated all of the Bank's loss sharing agreements related to the former Central Bank's six FDIC-assisted acquisitions from 2009 through 2011. The agreement required the Bank to pay $0.3 million to the FDIC to settle all outstanding items related to the terminated loss sharing agreements. As a result of entering into the agreement, assets that were covered by the terminated loss sharing agreements, including covered loans in the amount of $27.2 million on June 30, 2017, have been reclassified as non-covered assets, effective July 14, 2017. Accordingly, in the third quarter of 2017, the Company expects to realize a one-time pre-tax gain of approximately $0.2 million , inclusive of the write-off of the remaining indemnification asset, other receivables from the FDIC and the Bank's clawback liabilities due to the FDIC. The termination of the loss sharing agreements will not impact the yields for the loans that were previously covered under this agreement and is not expected to impact the allowance for loan losses. All future recoveries, gains, losses and expenses related to these previously covered assets will now be recognized entirely by the Bank since the FDIC will no longer be sharing in such gains or losses. Accordingly, the Company's future earnings will be positively impacted to the extent the Company recognizes gains on any sales or recoveries in excess of the carrying value of such assets. Similarly, the Company's future earnings will be negatively impacted to the extent the Company recognizes expenses, losses or charge-offs related to such assets. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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 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 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. The 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] | 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. |
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 the 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 the 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. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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) 2017 2016 2017 2016 Basic earnings per common share computation Numerator: Net income $ 7,234 $ 4,755 $ 13,947 $ 10,299 Denominator: Weighted average shares outstanding 12,200,689 11,431,252 11,855,108 11,424,122 Basic earnings per common share $ 0.59 $ 0.42 $ 1.18 $ 0.90 Diluted earnings per common share computation Numerator: Net income $ 7,234 $ 4,755 $ 13,947 $ 10,299 Denominator: Weighted average shares outstanding, including all dilutive potential shares 12,219,238 11,453,831 11,878,315 11,448,677 Diluted earnings per common share $ 0.59 $ 0.42 $ 1.17 $ 0.90 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) U.S. Government agencies and corporations $ 5,768 $ 10 $ — $ 5,778 State and political subdivisions 147,392 4,474 27 151,839 Mortgage-backed securities 53,654 490 29 54,115 Collateralized mortgage obligations 167,130 118 2,858 164,390 Corporate debt securities 64,331 326 155 64,502 Total debt securities 438,275 5,418 3,069 440,624 Other equity securities 2,263 101 30 2,334 Total $ 440,538 $ 5,519 $ 3,099 $ 442,958 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) U.S. Government agencies and corporations $ 5,895 $ 10 $ — $ 5,905 State and political subdivisions 162,145 3,545 418 165,272 Mortgage-backed securities 61,606 315 567 61,354 Collateralized mortgage obligations 175,506 148 4,387 171,267 Corporate debt securities 72,979 76 602 72,453 Total debt securities 478,131 4,094 5,974 476,251 Other equity securities 1,259 66 58 1,267 Total $ 479,390 $ 4,160 $ 6,032 $ 477,518 |
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, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) State and political subdivisions $ 121,162 $ 1,577 $ 657 $ 122,082 Mortgage-backed securities 2,202 7 5 2,204 Collateralized mortgage obligations 24,076 3 357 23,722 Corporate debt securities 35,038 601 351 35,288 Total $ 182,478 $ 2,188 $ 1,370 $ 183,296 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) State and political subdivisions $ 107,941 $ 156 $ 2,713 $ 105,384 Mortgage-backed securities 2,398 5 34 2,369 Collateralized mortgage obligations 26,036 — 598 25,438 Corporate debt securities 32,017 149 565 31,601 Total $ 168,392 $ 310 $ 3,910 $ 164,792 |
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, 2017 and December 31, 2016 , aggregated by investment category and length of time that individual securities have been in a continuous loss position: As of June 30, 2017 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 11 $ 9,175 $ 24 $ 451 $ 3 $ 9,626 $ 27 Mortgage-backed securities 11 11,495 28 23 1 11,518 29 Collateralized mortgage obligations 29 112,364 1,857 27,948 1,001 140,312 2,858 Corporate debt securities 4 18,769 155 — — 18,769 155 Other equity securities 1 — — 1,970 30 1,970 30 Total 56 $ 151,803 $ 2,064 $ 30,392 $ 1,035 $ 182,195 $ 3,099 As of December 31, 2016 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 63 $ 24,574 $ 389 $ 427 $ 29 $ 25,001 $ 418 Mortgage-backed securities 20 40,752 566 23 1 40,775 567 Collateralized mortgage obligations 29 140,698 3,544 16,776 843 157,474 4,387 Corporate debt securities 11 54,891 602 — — 54,891 602 Other equity securities 1 — — 942 58 942 58 Total 124 $ 260,915 $ 5,101 $ 18,168 $ 931 $ 279,083 $ 6,032 As of June 30, 2017 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 77 $ 29,935 $ 581 $ 1,943 $ 76 $ 31,878 $ 657 Mortgage-backed securities 3 1,155 5 — — 1,155 5 Collateralized mortgage obligations 6 11,787 220 6,105 137 17,892 357 Corporate debt securities 4 3,416 4 2,544 347 5,960 351 Total 90 $ 46,293 $ 810 $ 10,592 $ 560 $ 56,885 $ 1,370 As of December 31, 2016 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 180 $ 65,174 $ 2,713 $ — $ — $ 65,174 $ 2,713 Mortgage-backed securities 5 2,246 34 — — 2,246 34 Collateralized mortgage obligations 7 18,964 369 6,435 229 25,399 598 Corporate debt securities 11 19,198 187 2,512 378 21,710 565 Total 203 $ 105,582 $ 3,303 $ 8,947 $ 607 $ 114,529 $ 3,910 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturity distribution of investment debt securities at June 30, 2017 , 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 $ 12,458 $ 12,566 $ 2,385 $ 2,385 Due after one year through five years 121,620 123,272 18,752 18,941 Due after five years through ten years 75,303 78,015 79,287 80,684 Due after ten years 8,110 8,266 55,776 55,360 Debt securities without a single maturity date 220,784 218,505 26,278 25,926 Total $ 438,275 $ 440,624 $ 182,478 $ 183,296 |
Loans Receivable and the Allo27
Loans Receivable and the Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total June 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ 400 $ 2,125 $ 697 $ 236 $ — $ 3,458 Collectively evaluated for impairment 2,266 5,834 7,969 1,958 222 18,249 Purchased credit impaired loans — — 347 456 — 803 Total $ 2,666 $ 7,959 $ 9,013 $ 2,650 $ 222 $ 22,510 Loans receivable Individually evaluated for impairment $ 3,044 $ 11,700 $ 16,697 $ 3,752 $ — $ 35,193 Collectively evaluated for impairment 104,607 473,896 1,052,889 474,273 34,666 2,140,331 Purchased credit impaired loans — 41 15,977 5,961 — 21,979 Total $ 107,651 $ 485,637 $ 1,085,563 $ 483,986 $ 34,666 $ 2,197,503 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 62 $ 2,066 $ 1,924 $ 299 $ — $ 4,351 Collectively evaluated for impairment 1,941 4,199 7,692 2,791 255 16,878 Purchased credit impaired loans — 9 244 368 — 621 Total $ 2,003 $ 6,274 $ 9,860 $ 3,458 $ 255 $ 21,850 Loans receivable Individually evaluated for impairment $ 5,339 $ 11,434 $ 11,450 $ 3,955 $ — $ 32,178 Collectively evaluated for impairment 108,004 449,380 1,036,049 480,143 36,591 2,110,167 Purchased credit impaired loans — 156 16,744 5,898 — 22,798 Total $ 113,343 $ 460,970 $ 1,064,243 $ 489,996 $ 36,591 $ 2,165,143 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The changes in the allowance for loan losses by portfolio segment were as follows: Allowance for Loan Loss Activity For the Three Months Ended June 30, 2017 and 2016 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2017 Beginning balance $ 2,460 $ 6,021 $ 9,751 $ 3,764 $ 221 $ — $ 22,217 Charge-offs (347 ) (464 ) (45 ) (52 ) (135 ) — (1,043 ) Recoveries 4 83 5 — 4 — 96 Provision 549 2,319 (698 ) (1,062 ) 132 — 1,240 Ending balance $ 2,666 $ 7,959 $ 9,013 $ 2,650 $ 222 $ — $ 22,510 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 Allowance for Loan Loss Activity For the Six Months Ended June 30, 2017 and 2016 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Unallocated Total 2017 Beginning balance $ 2,003 $ 6,274 $ 9,860 $ 3,458 $ 255 $ — $ 21,850 Charge-offs (884 ) (529 ) (106 ) (80 ) (160 ) — (1,759 ) Recoveries 14 102 15 — 7 — 138 Provision 1,533 2,112 (756 ) (728 ) 120 — 2,281 Ending balance $ 2,666 $ 7,959 $ 9,013 $ 2,650 $ 222 $ — $ 22,510 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 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following table sets forth information on the Company’s TDRs by class of loan occurring during the stated periods: Three Months Ended June 30, 2017 2016 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) : Commercial real estate: Farmland Extended maturity date 2 $ 176 $ 176 — $ — $ — Commercial real estate-other Other 1 10,546 10,923 — — — Total 3 $ 10,722 $ 11,099 — $ — $ — Six Months Ended June 30, 2017 2016 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 Commercial and industrial Extended maturity date 6 2,037 2,083 — — — Commercial real estate: Farmland Extended maturity date 2 176 176 — — — Commercial real estate-other Extended maturity date 1 968 968 — — — Other 1 10,546 10,923 — — — 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 10 $ 13,727 $ 14,150 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 modified as TDRs within 12 months of modification 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, 2017 2016 2017 2016 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: Commercial and industrial Extended maturity date 1 $ 550 — $ — 4 $ 1,504 — $ — Commercial real estate: Commercial real estate-other Extended maturity date 1 968 — — 1 968 — — Total 2 $ 1,518 — $ — 5 $ 2,472 — $ — (1) TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following 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, 2017 and December 31, 2016 : Pass Special Mention/ Watch Substandard Doubtful Loss Total (in thousands) June 30, 2017 Agricultural $ 84,851 $ 21,111 $ 1,689 $ — $ — $ 107,651 Commercial and industrial (1) 443,739 25,041 16,849 8 — 485,637 Commercial real estate: Construction and development 132,112 1,230 2,387 — — 135,729 Farmland 79,096 10,192 562 — — 89,850 Multifamily 135,222 1,792 492 — — 137,506 Commercial real estate-other 668,602 25,464 28,412 — — 722,478 Total commercial real estate 1,015,032 38,678 31,853 — — 1,085,563 Residential real estate: One- to four- family first liens 356,547 3,025 10,757 — — 370,329 One- to four- family junior liens 110,606 1,145 1,906 — — 113,657 Total residential real estate 467,153 4,170 12,663 — — 483,986 Consumer 34,538 — 94 34 — 34,666 Total $ 2,045,313 $ 89,000 $ 63,148 $ 42 $ — $ 2,197,503 Pass Special Mention/ Watch Substandard Doubtful Loss Total (in thousands) December 31, 2016 Agricultural $ 95,103 $ 14,089 $ 4,151 $ — $ — $ 113,343 Commercial and industrial 429,392 11,065 19,016 8 — 459,481 Credit cards 1,489 — — — — 1,489 Commercial real estate: Construction and development 121,982 2,732 1,971 — — 126,685 Farmland 83,563 8,986 2,430 — — 94,979 Multifamily 134,975 548 480 — — 136,003 Commercial real estate-other 666,767 20,955 18,854 — — 706,576 Total commercial real estate 1,007,287 33,221 23,735 — — 1,064,243 Residential real estate: One- to four- family first liens 359,029 2,202 11,002 — — 372,233 One- to four- family junior liens 114,233 1,628 1,902 — — 117,763 Total residential real estate 473,262 3,830 12,904 — — 489,996 Consumer 36,419 1 134 37 — 36,591 Total $ 2,042,952 $ 62,206 $ 59,940 $ 45 $ — $ 2,165,143 |
Impaired Financing Receivables [Table Text Block] | The following table presents loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (in thousands) With no related allowance recorded: Agricultural $ 1,192 $ 1,692 $ — $ 3,673 $ 4,952 $ — Commercial and industrial 4,781 4,791 — 6,211 6,259 — Commercial real estate: Construction and development 360 360 — 445 1,170 — Farmland 524 524 — 2,230 2,380 — Multifamily — — — — — — Commercial real estate-other 3,359 3,359 — 2,224 2,384 — Total commercial real estate 4,243 4,243 — 4,899 5,934 — Residential real estate: One- to four- family first liens 2,371 2,375 — 2,429 2,442 — One- to four- family junior liens 13 13 — — — — Total residential real estate 2,384 2,388 — 2,429 2,442 — Consumer — — — — — — Total $ 12,600 $ 13,114 $ — $ 17,212 $ 19,587 $ — With an allowance recorded: Agricultural $ 1,852 $ 1,852 $ 400 $ 1,666 $ 1,669 $ 62 Commercial and industrial 6,919 6,919 2,125 5,223 5,223 2,066 Commercial real estate: Construction and development 738 1,464 163 263 270 21 Farmland — — — — — — Multifamily — — — — — — Commercial real estate-other 11,716 11,716 534 6,288 6,344 1,903 Total commercial real estate 12,454 13,180 697 6,551 6,614 1,924 Residential real estate: One- to four- family first liens 1,368 1,368 236 1,526 1,526 299 One- to four- family junior liens — — — — — — Total residential real estate 1,368 1,368 236 1,526 1,526 299 Consumer — — — — — — Total $ 22,593 $ 23,319 $ 3,458 $ 14,966 $ 15,032 $ 4,351 Total: Agricultural $ 3,044 $ 3,544 $ 400 $ 5,339 $ 6,621 $ 62 Commercial and industrial 11,700 11,710 2,125 11,434 11,482 2,066 Commercial real estate: Construction and development 1,098 1,824 163 708 1,440 21 Farmland 524 524 — 2,230 2,380 — Multifamily — — — — — — Commercial real estate-other 15,075 15,075 534 8,512 8,728 1,903 Total commercial real estate 16,697 17,423 697 11,450 12,548 1,924 Residential real estate: One- to four- family first liens 3,739 3,743 236 3,955 3,968 299 One- to four- family junior liens 13 13 — — — — Total residential real estate 3,752 3,756 236 3,955 3,968 299 Consumer — — — — — — Total $ 35,193 $ 36,433 $ 3,458 $ 32,178 $ 34,619 $ 4,351 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, 2017 2016 2017 2016 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 $ 1,192 $ 66 $ 1,266 $ 13 $ 1,216 $ 79 $ 1,291 $ 27 Commercial and industrial 4,787 67 3,777 10 4,143 90 3,927 — Commercial real estate: Construction and development 360 — — — 360 — — — Farmland 1,686 36 2,568 28 2,073 69 2,580 49 Multifamily — — — — — — — — Commercial real estate-other 3,118 71 1,979 3 3,040 103 2,009 12 Total commercial real estate 5,164 107 4,547 31 5,473 172 4,589 61 Residential real estate: One- to four- family first liens 2,409 46 2,200 23 2,417 70 2,209 44 One- to four- family junior liens 13 — — — 13 — — — Total residential real estate 2,422 46 2,200 23 2,430 70 2,209 44 Consumer — — — — — — — — Total $ 13,565 $ 286 $ 11,790 $ 77 $ 13,262 $ 411 $ 12,016 $ 132 With an allowance recorded: Agricultural $ 1,855 $ 53 $ 1,856 $ 7 $ 1,875 $ 67 $ 1,878 $ 20 Commercial and industrial 4,444 14 3,863 14 3,495 37 3,724 10 Commercial real estate: Construction and development 809 — — — 832 — — — Farmland — — — — — — — — Multifamily — — 158 — — — 158 — Commercial real estate-other 6,294 16 5,416 — 4,410 — 2,415 — Total commercial real estate 7,103 16 5,574 — 5,242 — 2,573 — Residential real estate: One- to four- family first liens 1,372 17 1,351 11 1,389 26 1,357 19 One- to four- family junior liens — — — — — — — — Total residential real estate 1,372 17 1,351 11 1,389 26 1,357 19 Consumer — — — — — — — — Total $ 14,774 $ 100 $ 12,644 $ 32 $ 12,001 $ 130 $ 9,532 $ 49 Total: Agricultural $ 3,047 $ 119 $ 3,122 $ 20 $ 3,091 $ 146 $ 3,169 $ 47 Commercial and industrial 9,231 81 7,640 24 7,638 127 7,651 10 Commercial real estate: Construction and development 1,169 — — — 1,192 — — — Farmland 1,686 36 2,568 28 2,073 69 2,580 49 Multifamily — — 158 — — — 158 — Commercial real estate-other 9,412 87 7,395 3 7,450 103 4,424 12 Total commercial real estate 12,267 123 10,121 31 10,715 172 7,162 61 Residential real estate: One- to four- family first liens 3,781 63 3,551 34 3,806 96 3,566 63 One- to four- family junior liens 13 — — — 13 — — — Total residential real estate 3,794 63 3,551 34 3,819 96 3,566 63 Consumer — — — — — — — — Total $ 28,339 $ 386 $ 24,434 $ 109 $ 25,263 $ 541 $ 21,548 $ 181 |
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, 2017 and December 31, 2016 : 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, 2017 Agricultural $ 101 $ — $ 430 $ 531 $ 107,120 $ 107,651 Commercial and industrial (1) 981 1,920 2,253 5,154 480,483 485,637 Commercial real estate: Construction and development 254 90 1,098 1,442 134,287 135,729 Farmland 127 121 317 565 89,285 89,850 Multifamily — — — — 137,506 137,506 Commercial real estate-other 1,214 643 1,399 3,256 719,222 722,478 Total commercial real estate 1,595 854 2,814 5,263 1,080,300 1,085,563 Residential real estate: One- to four- family first liens 1,902 336 2,021 4,259 366,070 370,329 One- to four- family junior liens 232 245 21 498 113,159 113,657 Total residential real estate 2,134 581 2,042 4,757 479,229 483,986 Consumer 55 20 2 77 34,589 34,666 Total $ 4,866 $ 3,375 $ 7,541 $ 15,782 $ 2,181,721 $ 2,197,503 Included in the totals above are the following purchased credit impaired loans $ 114 $ 306 $ 354 $ 774 $ 21,205 $ 21,979 December 31, 2016 Agricultural $ 44 $ — $ 399 $ 443 $ 112,900 $ 113,343 Commercial and industrial 2,615 293 9,654 12,562 446,919 459,481 Credit cards — — — — 1,489 1,489 Commercial real estate: Construction and development 630 — 297 927 125,758 126,685 Farmland 373 — 91 464 94,515 94,979 Multifamily — 129 — 129 135,874 136,003 Commercial real estate-other 1,238 763 6,655 8,656 697,920 706,576 Total commercial real estate 2,241 892 7,043 10,176 1,054,067 1,064,243 Residential real estate: One- to four- family first liens 2,851 1,143 1,328 5,322 366,911 372,233 One- to four- family junior liens 437 151 150 738 117,025 117,763 Total residential real estate 3,288 1,294 1,478 6,060 483,936 489,996 Consumer 50 23 33 106 36,485 36,591 Total $ 8,238 $ 2,502 $ 18,607 $ 29,347 $ 2,135,796 $ 2,165,143 Included in the totals above are the following purchased credit impaired loans $ 965 $ 489 $ 549 $ 2,003 $ 20,795 $ 22,798 |
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, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 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 $ 494 $ — $ 2,690 $ — Commercial and industrial 2,161 147 8,358 — Commercial real estate: Construction and development 1,110 — 780 95 Farmland 364 89 227 — Multifamily — — — — Commercial real estate-other 12,095 — 7,360 — Total commercial real estate 13,569 89 8,367 95 Residential real estate: One- to four- family first liens 1,364 702 1,127 375 One- to four- family junior liens 115 — 116 15 Total residential real estate 1,479 702 1,243 390 Consumer 37 — 10 — Total $ 17,740 $ 938 $ 20,668 $ 485 |
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, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Balance at beginning of period $ 1,633 $ 845 $ 1,961 $ 1,446 Accretion (475 ) (509 ) (891 ) (1,110 ) Reclassification from nonaccretable difference 213 3,208 301 3,208 Balance at end of period $ 1,371 $ 3,544 $ 1,371 $ 3,544 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 and for the six months ended June 30, 2017 : Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Finite-Lived Trade Name Intangible Customer List Intangible Total (in thousands) June 30, 2017 Balance, beginning of period $ 203 $ 6,846 $ 7,040 $ 960 $ 122 $ 15,171 Amortization expense (27 ) (1,506 ) — (111 ) (9 ) (1,653 ) Balance at end of period $ 176 $ 5,340 $ 7,040 $ 849 $ 113 $ 13,518 Gross carrying amount $ 1,320 $ 18,206 $ 7,040 $ 1,380 $ 330 $ 28,276 Accumulated amortizations (1,144 ) (12,866 ) — (531 ) (217 ) (14,758 ) Net book value $ 176 $ 5,340 $ 7,040 $ 849 $ 113 $ 13,518 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | The components of the Company’s other assets were as follows: June 30, 2017 December 31, 2016 (in thousands) Federal Home Loan Bank Stock $ 12,181 $ 12,800 FDIC indemnification asset, net — 479 Prepaid expenses 1,874 1,760 Mortgage servicing rights 2,136 1,951 Accounts receivable & other miscellaneous assets 3,057 1,323 $ 19,248 $ 18,313 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Short-term Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings were as follows as of June 30, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance Federal funds purchased 1.31 % $ 45,319 0.83 % $ 35,684 Securities sold under agreements to repurchase 0.23 60,182 0.22 82,187 Total 0.69 % $ 105,501 0.40 % $ 117,871 |
Subordinated Notes Payable (Tab
Subordinated Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 : Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 6/30/2017 June 30, 2017 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,644 Three-month LIBOR + 3.50% 4.75 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,635 Three-month LIBOR + 2.15% 3.44 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 2.84 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,743 Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 12/31/2016 December 31, 2016 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,614 Three-month LIBOR + 3.50% 4.46 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,614 Three-month LIBOR + 2.15% 3.15 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 2.55 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,692 (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, 2017 | |
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, 2017 and December 31, 2016 : June 30, 2017 December 31, 2016 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance FHLB Borrowings 1.61 % $ 90,000 1.56 % $ 115,000 Note payable to unaffiliated bank 2.98 15,000 2.52 17,500 Total 1.81 % $ 105,000 1.69 % $ 132,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and 2016 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, 2017 2016 2017 2016 (in thousands) Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Expected provision $ 3,629 35.0 % $ 2,292 35.0 % $ 6,864 35.0 % $ 4,899 35.0 % Tax-exempt interest (795 ) (7.7 ) (745 ) (11.4 ) (1,581 ) (8.1 ) (1,499 ) (10.7 ) Bank-owned life insurance (110 ) (1.1 ) (115 ) (1.8 ) (225 ) (1.1 ) (249 ) (1.8 ) State income taxes, net of federal income tax benefit 443 4.3 327 5.0 848 4.3 647 4.6 Non-deductible acquisition expenses — — 28 0.4 — — 53 0.4 General business credits (19 ) (0.2 ) (14 ) (0.2 ) (40 ) (0.2 ) (153 ) (1.1 ) Other (12 ) (0.1 ) 21 0.4 (201 ) (1.0 ) 1 — Total income tax provision $ 3,136 30.2 % $ 1,794 27.4 % $ 5,665 28.9 % $ 3,699 26.4 % |
Estimated Fair Value of Finan34
Estimated Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 . 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, 2017 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 $ 5,778 $ — $ 5,778 $ — State and political subdivisions 151,839 — 151,839 — Mortgage-backed securities 54,115 — 54,115 — Collateralized mortgage obligations 164,390 — 164,390 — Corporate debt securities 64,502 — 64,502 — Total available for sale debt securities 440,624 — 440,624 — Other equity securities 2,334 2,334 — — Total securities available for sale $ 442,958 $ 2,334 $ 440,624 $ — Fair Value Measurement at December 31, 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 $ 5,905 $ — $ 5,905 $ — State and political subdivisions 165,272 — 165,272 — Mortgage-backed securities 61,354 — 61,354 — Collateralized mortgage obligations 171,267 — 171,267 — Corporate debt securities 72,453 — 72,453 — Total available for sale debt securities 476,251 — 476,251 — Other equity securities 1,267 1,267 — — Total securities available for sale $ 477,518 $ 1,267 $ 476,251 $ — |
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, 2017 and December 31, 2016 , as more fully described above. Fair Value Measurement at June 30, 2017 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 $ 1,073 $ — $ — $ 1,073 Other real estate owned $ 1,486 $ — $ — $ 1,486 Fair Value Measurement at December 31, 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 $ 8,774 $ — $ — $ 8,774 Other real estate owned $ 2,097 $ — $ — $ 2,097 |
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, 2017 and December 31, 2016 . 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 the Bank. Neither of these components has been given consideration in the presentation of fair values below. June 30, 2017 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 $ 49,398 $ 49,398 $ 49,398 $ — $ — Investment securities: Available for sale 442,958 442,958 2,334 440,624 — Held to maturity 182,478 183,296 — 183,296 — Total investment securities 625,436 626,254 2,334 623,920 — Loans held for sale 1,636 1,667 — — 1,667 Loans, net 2,174,993 2,175,104 — 2,175,104 — Accrued interest receivable 12,606 12,606 12,606 — — Federal Home Loan Bank stock 12,181 12,181 — 12,181 — Financial liabilities: Deposits: Non-interest bearing demand 476,031 476,031 476,031 — — Interest-bearing checking 1,131,151 1,131,151 1,131,151 — — Savings 203,967 203,967 203,967 — — Certificates of deposit under $100,000 325,847 323,885 — 323,885 — Certificates of deposit $100,000 and over 356,713 355,582 — 355,582 — Total deposits 2,493,709 2,490,616 1,811,149 679,467 — Federal funds purchased and securities sold under agreements to repurchase 105,501 105,501 105,501 — — Federal Home Loan Bank borrowings 90,000 89,791 — 89,791 — Junior subordinated notes issued to capital trusts 23,743 19,462 — 19,462 — Long-term debt 15,000 15,000 — 15,000 — Accrued interest payable 1,551 1,551 1,551 — — December 31, 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 $ 43,228 $ 43,228 $ 43,228 $ — $ — Investment securities: Available for sale 477,518 477,518 1,267 476,251 — Held to maturity 168,392 164,792 — 164,792 — Total investment securities 645,910 642,310 1,267 641,043 — Loans held for sale 4,241 4,286 — — 4,286 Loans, net 2,143,293 2,138,252 — 2,138,252 — Accrued interest receivable 13,871 13,871 13,871 — — Federal Home Loan Bank stock 12,800 12,800 — 12,800 — Financial liabilities: Deposits: Non-interest bearing demand 494,586 494,586 494,586 — — Interest-bearing checking 1,136,282 1,136,282 1,136,282 — — Savings 197,698 197,698 197,698 — — Certificates of deposit under $100,000 326,832 324,978 — 324,978 — Certificates of deposit $100,000 and over 325,050 324,060 — 324,060 — Total deposits 2,480,448 2,477,604 1,828,566 649,038 — Federal funds purchased and securities sold under agreements to repurchase 117,871 117,871 117,871 — — Federal Home Loan Bank borrowings 115,000 114,590 — 114,590 — Junior subordinated notes issued to capital trusts 23,692 19,248 — 19,248 — Long-term debt 17,500 17,500 — 17,500 — Accrued interest payable 1,472 1,472 1,472 — — |
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, 2017 , 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, 2017 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans $ 1,073 Modified appraised value Third party appraisal NM * NM * NM * Appraisal discount NM * NM * NM * Other real estate owned $ 1,486 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. |
Shareholders' Equity Stock by C
Shareholders' Equity Stock by Class (Details) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
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 | 30,000,000 | 15,000,000 | |
Common stock, shares outstanding | 12,218,528 | 11,436,360 | 11,435,860 |
Common stock, par value per share | $ 1 | $ 1 |
Shareholders' Equity Stock Issu
Shareholders' Equity Stock Issuance (Details) - $ / shares | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Class of Stock | |||
Common stock, shares authorized | 30,000,000 | 15,000,000 | |
Common Stock | |||
Class of Stock | |||
Sale of stock, new issues | 750,000 | 0 | |
Sale of stock, price per share | $ 34.25 | ||
Common Stock | Over-Allotment Option | |||
Class of Stock | |||
Sale of stock, new issues | 250,000 |
Shareholders' Equity Stock Repu
Shareholders' Equity Stock Repurchase (Details) - Common Stock - July 21 2016 Share Repurchase Program [Member] - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jul. 21, 2016 | |
Equity, Class of Treasury Stock | ||
Authorized amount of stock repurchase program | $ 5 | |
Stock repurchased during period, shares | 0 | |
Stock repurchase program, remaining authorized repurchase amount | $ 5 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 7,234 | $ 4,755 | $ 13,947 | $ 10,299 |
Earnings per common share - basic | $ 0.59 | $ 0.42 | $ 1.18 | $ 0.90 |
Earnings per common share - diluted | $ 0.59 | $ 0.42 | $ 1.17 | $ 0.90 |
Investment Securities Schedule
Investment Securities Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities | ||
Amortized cost basis | $ 440,538 | $ 479,390 |
Gross unrealized gains | 5,519 | 4,160 |
Gross unrealized losses | 3,099 | 6,032 |
Estimated fair value | 442,958 | 477,518 |
U.S. Government agencies and corporations | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 5,768 | 5,895 |
Gross unrealized gains | 10 | 10 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 5,778 | 5,905 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 147,392 | 162,145 |
Gross unrealized gains | 4,474 | 3,545 |
Gross unrealized losses | 27 | 418 |
Estimated fair value | 151,839 | 165,272 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 53,654 | 61,606 |
Gross unrealized gains | 490 | 315 |
Gross unrealized losses | 29 | 567 |
Estimated fair value | 54,115 | 61,354 |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 167,130 | 175,506 |
Gross unrealized gains | 118 | 148 |
Gross unrealized losses | 2,858 | 4,387 |
Estimated fair value | 164,390 | 171,267 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 64,331 | 72,979 |
Gross unrealized gains | 326 | 76 |
Gross unrealized losses | 155 | 602 |
Estimated fair value | 64,502 | 72,453 |
Debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 438,275 | 478,131 |
Gross unrealized gains | 5,418 | 4,094 |
Gross unrealized losses | 3,069 | 5,974 |
Estimated fair value | 440,624 | 476,251 |
Equity securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 2,263 | 1,259 |
Gross unrealized gains | 101 | 66 |
Gross unrealized losses | 30 | 58 |
Estimated fair value | $ 2,334 | $ 1,267 |
Investment Securities Schedul40
Investment Securities Schedule of Held to Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | $ 182,478 | $ 168,392 |
Gross unrealized gains | 2,188 | 310 |
Gross unrealized losses | 1,370 | 3,910 |
Estimated fair value | 183,296 | 164,792 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 121,162 | 107,941 |
Gross unrealized gains | 1,577 | 156 |
Gross unrealized losses | 657 | 2,713 |
Estimated fair value | 122,082 | 105,384 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 2,202 | 2,398 |
Gross unrealized gains | 7 | 5 |
Gross unrealized losses | 5 | 34 |
Estimated fair value | 2,204 | 2,369 |
Collateralized mortgage obligations | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 24,076 | 26,036 |
Gross unrealized gains | 3 | |
Gross unrealized losses | 357 | 598 |
Estimated fair value | 23,722 | 25,438 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 35,038 | 32,017 |
Gross unrealized gains | 601 | 149 |
Gross unrealized losses | 351 | 565 |
Estimated fair value | $ 35,288 | $ 31,601 |
Investment Securities Available
Investment Securities Available for Sale Securities in Continuous Loss Position (Details) $ in Thousands | Jun. 30, 2017USD ($)count | Dec. 31, 2016USD ($)count |
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 56 | 124 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 151,803 | $ 260,915 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 2,064 | 5,101 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 30,392 | 18,168 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 1,035 | 931 |
Available for sale securities, continuous unrealized loss position, fair value | 182,195 | 279,083 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 3,099 | $ 6,032 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 11 | 63 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 9,175 | $ 24,574 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 24 | 389 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 451 | 427 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 3 | 29 |
Available for sale securities, continuous unrealized loss position, fair value | 9,626 | 25,001 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 27 | $ 418 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 11 | 20 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 11,495 | $ 40,752 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 28 | 566 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 23 | 23 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 1 | 1 |
Available for sale securities, continuous unrealized loss position, fair value | 11,518 | 40,775 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 29 | $ 567 |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 29 | 29 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 112,364 | $ 140,698 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 1,857 | 3,544 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 27,948 | 16,776 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 1,001 | 843 |
Available for sale securities, continuous unrealized loss position, fair value | 140,312 | 157,474 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 2,858 | $ 4,387 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 4 | 11 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 18,769 | $ 54,891 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 155 | 602 |
Available for sale securities, continuous unrealized loss position, fair value | 18,769 | 54,891 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 155 | $ 602 |
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 | $ 1,970 | $ 942 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 30 | 58 |
Available for sale securities, continuous unrealized loss position, fair value | 1,970 | 942 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 30 | $ 58 |
Investment Securities Held to M
Investment Securities Held to Maturity Securities in Continuous Loss Position (Details) $ in Thousands | Jun. 30, 2017USD ($)count | Dec. 31, 2016USD ($)count |
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 90 | 203 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 46,293 | $ 105,582 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 810 | 3,303 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 10,592 | 8,947 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 560 | 607 |
Held to maturity securities, continuous urealized loss position, fair value | 56,885 | 114,529 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 1,370 | $ 3,910 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 77 | 180 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 29,935 | $ 65,174 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 581 | 2,713 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 1,943 | |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 76 | |
Held to maturity securities, continuous urealized loss position, fair value | 31,878 | 65,174 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 657 | $ 2,713 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 3 | 5 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 1,155 | $ 2,246 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 5 | 34 |
Held to maturity securities, continuous urealized loss position, fair value | 1,155 | 2,246 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 5 | $ 34 |
Collateralized mortgage obligations | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 6 | 7 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 11,787 | $ 18,964 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 220 | 369 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 6,105 | 6,435 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 137 | 229 |
Held to maturity securities, continuous urealized loss position, fair value | 17,892 | 25,399 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 357 | $ 598 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 4 | 11 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 3,416 | $ 19,198 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 4 | 187 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 2,544 | 2,512 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 347 | 378 |
Held to maturity securities, continuous urealized loss position, fair value | 5,960 | 21,710 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 351 | $ 565 |
Investment Securities Investmen
Investment Securities Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ||
Due in one year or less, amortized cost | $ 12,458 | |
Due after one year through five years, amortized cost | 121,620 | |
Due after five years through ten years, amortized cost | 75,303 | |
Due after ten years, amortized cost | 8,110 | |
Debt securities without a single maturity date, amortized cost | 220,784 | |
Total available for sale securities, debt securities, amortized cost | 438,275 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Due in one year or less, estimated fair value | 12,566 | |
Due after one year through five years, estimated fair value | 123,272 | |
Due after five years through ten years, estimated fair value | 78,015 | |
Due after ten years, estimated fair value | 8,266 | |
Debt securities without a single maturity date, estimated fair value | 218,505 | |
Total available for sale securities, debt securities, estimated fair value | 440,624 | |
Held-to-maturity Securities, Debt Maturities, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in one year or less, amortized cost | 2,385 | |
Due after one year through five years, amortized cost | 18,752 | |
Due after five years through ten years, amortized cost | 79,287 | |
Due after ten years, amortized cost | 55,776 | |
Debt securities without a single maturity date, amortized cost | 26,278 | |
Held to maturity securities, amortized cost | 182,478 | $ 168,392 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Due in one year or less, estimated fair value | 2,385 | |
Due after one year through five years, estimated fair value | 18,941 | |
Due after five years through ten years, estimated fair value | 80,684 | |
Due after ten years, estimated fair value | 55,360 | |
Debt securities without a single maturity date, estimated fair value | 25,926 | |
Fair value of investment securities held to maturity | $ 183,296 | $ 164,792 |
Investment Securities Textual R
Investment Securities Textual References 1 (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities | |||
Available-for-sale securities pledged as collateral | $ 172,000,000 | $ 212,100,000 | |
Available for sale securities | 442,958,000 | 477,518,000 | |
Amortized cost basis | 440,538,000 | 479,390,000 | |
Proceeds from sales of available for sale securities | 9,999,000 | $ 23,384,000 | |
Proceeds from sales of held to maturity securities | 1,153,000 | 0 | |
State and political subdivisions | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | 151,839,000 | 165,272,000 | |
Amortized cost basis | 147,392,000 | 162,145,000 | |
Corporate debt securities | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | 64,502,000 | 72,453,000 | |
Amortized cost basis | 64,331,000 | 72,979,000 | |
Other equity securities | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | 2,334,000 | 1,267,000 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 0 | ||
Amortized cost basis | 2,263,000 | 1,259,000 | |
Other equity securities | Banks and Financial Service-Related Companies | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | 400,000 | ||
Community Reinvestment Act qualified investment | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | 2,000,000 | ||
Debt securities | |||
Schedule of Available-for-sale Securities | |||
Available for sale securities | 440,624,000 | 476,251,000 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 0 | ||
Amortized cost basis | 438,275,000 | $ 478,131,000 | |
Available for sale securities, gross realized gains | $ 20,000 | $ 467,000 | |
Geographic Concentration Risk | Total Obligations of State and Political Subdivisions | State and political subdivisions | IOWA | |||
Schedule of Available-for-sale Securities | |||
Concentration risk, percentage | 56.00% | ||
Geographic Concentration Risk | Total Obligations of State and Political Subdivisions | State and political subdivisions | MINNESOTA | |||
Schedule of Available-for-sale Securities | |||
Concentration risk, percentage | 21.00% |
Investment Securities Textual45
Investment Securities Textual References 2 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Held-to-maturity Securities | ||||
Held to maturity securities, gross realized gains | $ 0 | $ 0 | $ 43,000 | $ 0 |
Debt securities | ||||
Schedule of Held-to-maturity Securities | ||||
Held to maturity securities, gross realized gains | $ 43,000 | $ 0 |
Loans Receivable and the Allo46
Loans Receivable and the Allowance for Loan Losses Allowance for Loan Losses and Recorded Investment in Loan Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | $ 3,458 | $ 4,351 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 18,249 | 16,878 | ||||
Certain loans acquired in transfer not accounted for as debt securities, allowance for loan losses | 621 | |||||
Allowance for loan losses | 22,510 | $ 22,217 | 21,850 | $ 21,197 | $ 20,245 | $ 19,427 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 35,193 | 32,178 | ||||
Loans receivable, collectively evaluated for impairment | 2,140,331 | 2,110,167 | ||||
Loans receivable,purchased credit impaired | 22,798 | |||||
Loans and leases receivable, gross | 2,197,503 | 2,165,143 | ||||
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 | 803 | |||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 21,979 | |||||
Agricultural Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 400 | 62 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 2,266 | 1,941 | ||||
Allowance for loan losses | 2,666 | 2,460 | 2,003 | 2,354 | 2,235 | 1,417 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 3,044 | 5,339 | ||||
Loans receivable, collectively evaluated for impairment | 104,607 | 108,004 | ||||
Loans and leases receivable, gross | 107,651 | 113,343 | ||||
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 2,125 | 2,066 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 5,834 | 4,199 | ||||
Allowance for loan losses | 7,959 | 6,021 | 6,274 | 5,385 | 4,680 | 5,451 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 11,700 | 11,434 | ||||
Loans receivable, collectively evaluated for impairment | 473,896 | 449,380 | ||||
Loans and leases receivable, gross | 485,637 | 460,970 | ||||
Commercial Portfolio Segment | 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 | 9 | |||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 41 | 156 | ||||
Commercial Real Estate Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 697 | 1,924 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 7,969 | 7,692 | ||||
Allowance for loan losses | 9,013 | 9,751 | 9,860 | 10,628 | 9,713 | 8,556 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 16,697 | 11,450 | ||||
Loans receivable, collectively evaluated for impairment | 1,052,889 | 1,036,049 | ||||
Loans and leases receivable, gross | 1,085,563 | 1,064,243 | ||||
Commercial Real Estate Portfolio Segment | 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 | 347 | 244 | ||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 15,977 | 16,744 | ||||
Residential Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 236 | 299 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 1,958 | 2,791 | ||||
Allowance for loan losses | 2,650 | 3,764 | 3,458 | 2,463 | 3,429 | 3,968 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 3,752 | 3,955 | ||||
Loans receivable, collectively evaluated for impairment | 474,273 | 480,143 | ||||
Loans and leases receivable, gross | 483,986 | 489,996 | ||||
Residential Portfolio Segment | 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 | 456 | 368 | ||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 5,961 | 5,898 | ||||
Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 222 | 255 | ||||
Allowance for loan losses | 222 | $ 221 | 255 | $ 367 | $ 188 | $ 409 |
Financing Receivable [Abstract] | ||||||
Loans receivable, collectively evaluated for impairment | 34,666 | 36,591 | ||||
Loans and leases receivable, gross | $ 34,666 | $ 36,591 |
Loans Receivable and the Allo47
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 22,217 | $ 20,245 | $ 21,850 | $ 19,427 |
Charge-offs | (1,043) | (432) | (1,759) | (816) |
Recoveries | 96 | 213 | 138 | 350 |
Provision | 1,240 | 1,171 | 2,281 | 2,236 |
Ending balance | 22,510 | 21,197 | 22,510 | 21,197 |
Agricultural Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 2,460 | 2,235 | 2,003 | 1,417 |
Charge-offs | (347) | (884) | (125) | |
Recoveries | 4 | 1 | 14 | 7 |
Provision | 549 | 118 | 1,533 | 1,055 |
Ending balance | 2,666 | 2,354 | 2,666 | 2,354 |
Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 6,021 | 4,680 | 6,274 | 5,451 |
Charge-offs | (464) | (529) | (10) | |
Recoveries | 83 | 60 | 102 | 72 |
Provision | 2,319 | 645 | 2,112 | (128) |
Ending balance | 7,959 | 5,385 | 7,959 | 5,385 |
Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 9,751 | 9,713 | 9,860 | 8,556 |
Charge-offs | (45) | (1) | (106) | (41) |
Recoveries | 5 | 127 | 15 | 180 |
Provision | (698) | 789 | (756) | 1,933 |
Ending balance | 9,013 | 10,628 | 9,013 | 10,628 |
Residential Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 3,764 | 3,429 | 3,458 | 3,968 |
Charge-offs | (52) | (354) | (80) | (513) |
Recoveries | 13 | 77 | ||
Provision | (1,062) | (625) | (728) | (1,069) |
Ending balance | 2,650 | 2,463 | 2,650 | 2,463 |
Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 221 | 188 | 255 | 409 |
Charge-offs | (135) | (77) | (160) | (127) |
Recoveries | 4 | 12 | 7 | 14 |
Provision | 132 | 244 | 120 | 71 |
Ending balance | $ 222 | $ 367 | $ 222 | 367 |
Unallocated Financing Receivables | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | (374) | |||
Provision | $ 374 |
Loans Receivable and the Allo48
Loans Receivable and the Allowance for Loan Losses New Troubled Debt Restructurings During Period (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)count | Jun. 30, 2017USD ($)count | Jun. 30, 2016USD ($)count | ||
Financing Receivable, Modifications | ||||
Financing Receivable, Modifications, Number of Contracts | count | 3 | 10 | 3 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 10,722 | $ 13,727 | $ 200 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 11,099 | $ 14,150 | $ 200 | |
Agricultural Loan Financing Receivable | Extended Maturity | ||||
Financing Receivable, Modifications | ||||
Financing Receivable, Modifications, Number of Contracts | count | [1] | 1 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | [1] | $ 25 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | [1] | $ 25 | ||
Commercial and Industrial Loan Financing Receivable | Extended Maturity | ||||
Financing Receivable, Modifications | ||||
Financing Receivable, Modifications, Number of Contracts | count | [1] | 6 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | [1] | $ 2,037 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | [1] | $ 2,083 | ||
Commercial Real Estate Loan Other Financing Receivable | Other Concession | ||||
Financing Receivable, Modifications | ||||
Financing Receivable, Modifications, Number of Contracts | count | [1] | 1 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | [1] | $ 10,546 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | [1] | $ 10,923 | ||
Residential Real Estate First Lien Loan Financing Receivable | Contractual Interest Rate Reduction | ||||
Financing Receivable, Modifications | ||||
Financing Receivable, Modifications, Number of Contracts | count | [1] | 1 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | [1] | $ 104 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | [1] | $ 104 | ||
Residential Real Estate Junior Lien Loan Financing Receivable | Contractual Interest Rate Reduction | ||||
Financing Receivable, Modifications | ||||
Financing Receivable, Modifications, Number of Contracts | count | [1] | 1 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | [1] | $ 71 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | [1] | $ 71 | ||
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | Extended Maturity | ||||
Financing Receivable, Modifications | ||||
Financing Receivable, Modifications, Number of Contracts | count | [1] | 2 | 2 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | [1] | $ 176 | $ 176 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | [1] | $ 176 | $ 176 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | Extended Maturity | ||||
Financing Receivable, Modifications | ||||
Financing Receivable, Modifications, Number of Contracts | count | [1] | 1 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | [1] | $ 968 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | [1] | $ 968 | ||
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | Other Concession | ||||
Financing Receivable, Modifications | ||||
Financing Receivable, Modifications, Number of Contracts | count | [1] | 1 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | [1] | $ 10,546 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | [1] | $ 10,923 | ||
[1] | TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. |
Loans Receivable and the Allo49
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, 2017USD ($)count | Jun. 30, 2016USD ($)count | Jun. 30, 2017USD ($)count | Jun. 30, 2016USD ($)count | ||
Financing Receivable, Modifications | |||||
Financing receivable, modifications, subsequent default, number of contracts | count | 2 | 0 | 5 | 0 | |
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 1,518 | $ 0 | $ 2,472 | $ 0 | |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | Extended Maturity | |||||
Financing Receivable, Modifications | |||||
Financing receivable, modifications, subsequent default, number of contracts | count | [1] | 1 | 4 | ||
Financing receivable, modifications, subsequent default, recorded investment | $ | [1] | $ 550 | $ 1,504 | ||
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | Extended Maturity | |||||
Financing Receivable, Modifications | |||||
Financing receivable, modifications, subsequent default, number of contracts | count | [1] | 1 | 1 | ||
Financing receivable, modifications, subsequent default, recorded investment | $ | [1] | $ 968 | $ 968 | ||
[1] | TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. |
Loans Receivable and the Allo50
Loans Receivable and the Allowance for Loan Losses Loans by Internally Assigned Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment | |||
Loans receivable, net | $ 2,197,503 | $ 2,165,143 | |
Purchased credit-impaired loans, internally classified as other than pass | 13,900 | 15,300 | |
Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 2,045,313 | 2,042,952 | |
Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 89,000 | 62,206 | |
Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 63,148 | 59,940 | |
Internally Assigned Grade Doubtful | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 42 | 45 | |
Agricultural Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 107,651 | 113,343 | |
Agricultural Loan Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 84,851 | 95,103 | |
Agricultural Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 21,111 | 14,089 | |
Agricultural Loan Financing Receivable | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,689 | 4,151 | |
Commercial and Industrial Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 485,637 | [1] | 459,481 |
Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 443,739 | [1] | 429,392 |
Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 25,041 | [1] | 11,065 |
Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 16,849 | [1] | 19,016 |
Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Doubtful | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 8 | [1] | 8 |
Commercial Credit Card Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,489 | ||
Commercial Credit Card Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,489 | ||
Commercial Real Estate Construction and Development Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 135,729 | 126,685 | |
Commercial Real Estate Construction and Development Loan Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 132,112 | 121,982 | |
Commercial Real Estate Construction and Development Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,230 | 2,732 | |
Commercial Real Estate Construction and Development Loan Financing Receivable | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 2,387 | 1,971 | |
Farmland Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 89,850 | 94,979 | |
Farmland Loan Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 79,096 | 83,563 | |
Farmland Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 10,192 | 8,986 | |
Farmland Loan Financing Receivable | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 562 | 2,430 | |
Multifamily Real Estate Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 137,506 | 136,003 | |
Multifamily Real Estate Loan Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 135,222 | 134,975 | |
Multifamily Real Estate Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,792 | 548 | |
Multifamily Real Estate Loan Financing Receivable | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 492 | 480 | |
Commercial Real Estate Loan Other Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 722,478 | 706,576 | |
Commercial Real Estate Loan Other Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 668,602 | 666,767 | |
Commercial Real Estate Loan Other Financing Receivable | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 25,464 | 20,955 | |
Commercial Real Estate Loan Other Financing Receivable | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 28,412 | 18,854 | |
Residential Real Estate First Lien Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 370,329 | 372,233 | |
Residential Real Estate First Lien Loan Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 356,547 | 359,029 | |
Residential Real Estate First Lien Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 3,025 | 2,202 | |
Residential Real Estate First Lien Loan Financing Receivable | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 10,757 | 11,002 | |
Residential Real Estate Junior Lien Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 113,657 | 117,763 | |
Residential Real Estate Junior Lien Loan Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 110,606 | 114,233 | |
Residential Real Estate Junior Lien Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,145 | 1,628 | |
Residential Real Estate Junior Lien Loan Financing Receivable | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,906 | 1,902 | |
Consumer Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 34,666 | 36,591 | |
Consumer Loan Financing Receivable | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 34,538 | 36,419 | |
Consumer Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1 | ||
Consumer Loan Financing Receivable | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 94 | 134 | |
Consumer Loan Financing Receivable | Internally Assigned Grade Doubtful | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 34 | 37 | |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 107,651 | 113,343 | |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 485,637 | [1] | 459,481 |
Commercial Portfolio Segment | Commercial Credit Card Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,489 | ||
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,085,563 | 1,064,243 | |
Commercial Real Estate Portfolio Segment | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 1,015,032 | 1,007,287 | |
Commercial Real Estate Portfolio Segment | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 38,678 | 33,221 | |
Commercial Real Estate Portfolio Segment | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 31,853 | 23,735 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 135,729 | 126,685 | |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 89,850 | 94,979 | |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 137,506 | 136,003 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 722,478 | 706,576 | |
Residential Portfolio Segment | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 483,986 | 489,996 | |
Residential Portfolio Segment | Internally Assigned Grade Pass | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 467,153 | 473,262 | |
Residential Portfolio Segment | Internally Assigned Grade Special Mention Watch | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 4,170 | 3,830 | |
Residential Portfolio Segment | Internally Assigned Grade Substandard | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 12,663 | 12,904 | |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 370,329 | 372,233 | |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | 113,657 | 117,763 | |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | |||
Financing Receivable, Recorded Investment | |||
Loans receivable, net | $ 34,666 | $ 36,591 | |
[1] | As of the first quarter of 2017, the Company no longer considered credit cards a separate class of loans, and these balances are now included in commercial and industrial loans. |
Loans Receivable and the Allo51
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | $ 12,600 | $ 12,600 | $ 17,212 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 13,114 | 13,114 | 19,587 | ||
Impaired financing receivable, with related allowance, recorded investment | 22,593 | 22,593 | 14,966 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 23,319 | 23,319 | 15,032 | ||
Impaired financing receivable, related allowance | 3,458 | 3,458 | 4,351 | ||
Impaired financing receivable, recorded investment | 35,193 | 35,193 | 32,178 | ||
Impaired financing receivable, unpaid principal balance | 36,433 | 36,433 | 34,619 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 13,565 | $ 11,790 | 13,262 | $ 12,016 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 286 | 77 | 411 | 132 | |
Impaired financing receivable, with related allowance, average recorded investment | 14,774 | 12,644 | 12,001 | 9,532 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 100 | 32 | 130 | 49 | |
Impaired financing receivable, average recorded investment | 28,339 | 24,434 | 25,263 | 21,548 | |
Impaired financing receivable, interest income, accrual method | 386 | 109 | 541 | 181 | |
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 | 1,192 | 1,192 | 3,673 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 1,692 | 1,692 | 4,952 | ||
Impaired financing receivable, with related allowance, recorded investment | 1,852 | 1,852 | 1,666 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 1,852 | 1,852 | 1,669 | ||
Impaired financing receivable, related allowance | 400 | 400 | 62 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 1,216 | 1,291 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 79 | 27 | |||
Impaired financing receivable, with related allowance, average recorded investment | 1,875 | 1,878 | |||
Impaired financing receivable, with related allowance, interest income, accrual method | 67 | 20 | |||
Commercial and Industrial Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 4,781 | 4,781 | 6,211 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 4,791 | 4,791 | 6,259 | ||
Impaired financing receivable, with related allowance, recorded investment | 6,919 | 6,919 | 5,223 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 6,919 | 6,919 | 5,223 | ||
Impaired financing receivable, related allowance | 2,125 | 2,125 | 2,066 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 4,143 | 3,927 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 90 | ||||
Impaired financing receivable, with related allowance, average recorded investment | 3,495 | 3,724 | |||
Impaired financing receivable, with related allowance, interest income, accrual method | 37 | 10 | |||
Commercial Real Estate Construction and Development Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 360 | 360 | 445 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 360 | 360 | 1,170 | ||
Impaired financing receivable, with related allowance, recorded investment | 738 | 738 | 263 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 1,464 | 1,464 | 270 | ||
Impaired financing receivable, related allowance | 163 | 163 | 21 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 360 | ||||
Impaired financing receivable, with related allowance, average recorded investment | 832 | ||||
Farmland Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 524 | 524 | 2,230 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 524 | 524 | 2,380 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 2,073 | 2,580 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 69 | 49 | |||
Multifamily Real Estate Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with related allowance, average recorded investment | 158 | ||||
Commercial Real Estate Loan Other Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 3,359 | 3,359 | 2,224 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 3,359 | 3,359 | 2,384 | ||
Impaired financing receivable, with related allowance, recorded investment | 11,716 | 11,716 | 6,288 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 11,716 | 11,716 | 6,344 | ||
Impaired financing receivable, related allowance | 534 | 534 | 1,903 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 3,040 | 2,009 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 103 | 12 | |||
Impaired financing receivable, with related allowance, average recorded investment | 4,410 | 2,415 | |||
Residential Real Estate First Lien Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 2,371 | 2,371 | 2,429 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,375 | 2,375 | 2,442 | ||
Impaired financing receivable, with related allowance, recorded investment | 1,368 | 1,368 | 1,526 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 1,368 | 1,368 | 1,526 | ||
Impaired financing receivable, related allowance | 236 | 236 | 299 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 2,417 | 2,209 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 70 | 44 | |||
Impaired financing receivable, with related allowance, average recorded investment | 1,389 | 1,357 | |||
Impaired financing receivable, with related allowance, interest income, accrual method | 26 | 19 | |||
Residential Real Estate Junior Lien Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 13 | 13 | |||
Impaired financing receivable, with no related allowance, unpaid principal balance | 13 | 13 | |||
Impaired financing receivable, with no related allowance, average recorded investment | 13 | ||||
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, related allowance | 400 | 400 | 62 | ||
Impaired financing receivable, recorded investment | 3,044 | 3,044 | 5,339 | ||
Impaired financing receivable, unpaid principal balance | 3,544 | 3,544 | 6,621 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 1,192 | 1,266 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 66 | 13 | |||
Impaired financing receivable, with related allowance, average recorded investment | 1,855 | 1,856 | |||
Impaired financing receivable, with related allowance, interest income, accrual method | 53 | 7 | |||
Impaired financing receivable, average recorded investment | 3,047 | 3,122 | 3,091 | 3,169 | |
Impaired financing receivable, interest income, accrual method | 119 | 20 | 146 | 47 | |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, related allowance | 2,125 | 2,125 | 2,066 | ||
Impaired financing receivable, recorded investment | 11,700 | 11,700 | 11,434 | ||
Impaired financing receivable, unpaid principal balance | 11,710 | 11,710 | 11,482 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 4,787 | 3,777 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 67 | 10 | |||
Impaired financing receivable, with related allowance, average recorded investment | 4,444 | 3,863 | |||
Impaired financing receivable, with related allowance, interest income, accrual method | 14 | 14 | |||
Impaired financing receivable, average recorded investment | 9,231 | 7,640 | 7,638 | 7,651 | |
Impaired financing receivable, interest income, accrual method | 81 | 24 | 127 | 10 | |
Commercial Real Estate Portfolio Segment | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 4,243 | 4,243 | 4,899 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 4,243 | 4,243 | 5,934 | ||
Impaired financing receivable, with related allowance, recorded investment | 12,454 | 12,454 | 6,551 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 13,180 | 13,180 | 6,614 | ||
Impaired financing receivable, related allowance | 697 | 697 | 1,924 | ||
Impaired financing receivable, recorded investment | 16,697 | 16,697 | 11,450 | ||
Impaired financing receivable, unpaid principal balance | 17,423 | 17,423 | 12,548 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 5,164 | 4,547 | 5,473 | 4,589 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 107 | 31 | 172 | 61 | |
Impaired financing receivable, with related allowance, average recorded investment | 7,103 | 5,574 | 5,242 | 2,573 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 16 | ||||
Impaired financing receivable, average recorded investment | 12,267 | 10,121 | 10,715 | 7,162 | |
Impaired financing receivable, interest income, accrual method | 123 | 31 | 172 | 61 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, related allowance | 163 | 163 | 21 | ||
Impaired financing receivable, recorded investment | 1,098 | 1,098 | 708 | ||
Impaired financing receivable, unpaid principal balance | 1,824 | 1,824 | 1,440 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 360 | ||||
Impaired financing receivable, with related allowance, average recorded investment | 809 | ||||
Impaired financing receivable, average recorded investment | 1,169 | 1,192 | |||
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, recorded investment | 524 | 524 | 2,230 | ||
Impaired financing receivable, unpaid principal balance | 524 | 524 | 2,380 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 1,686 | 2,568 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 36 | 28 | |||
Impaired financing receivable, average recorded investment | 1,686 | 2,568 | 2,073 | 2,580 | |
Impaired financing receivable, interest income, accrual method | 36 | 28 | 69 | 49 | |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with related allowance, average recorded investment | 158 | ||||
Impaired financing receivable, average recorded investment | 158 | 158 | |||
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, related allowance | 534 | 534 | 1,903 | ||
Impaired financing receivable, recorded investment | 15,075 | 15,075 | 8,512 | ||
Impaired financing receivable, unpaid principal balance | 15,075 | 15,075 | 8,728 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 3,118 | 1,979 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 71 | 3 | |||
Impaired financing receivable, with related allowance, average recorded investment | 6,294 | 5,416 | |||
Impaired financing receivable, with related allowance, interest income, accrual method | 16 | ||||
Impaired financing receivable, average recorded investment | 9,412 | 7,395 | 7,450 | 4,424 | |
Impaired financing receivable, interest income, accrual method | 87 | 3 | 103 | 12 | |
Residential Portfolio Segment | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 2,384 | 2,384 | 2,429 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,388 | 2,388 | 2,442 | ||
Impaired financing receivable, with related allowance, recorded investment | 1,368 | 1,368 | 1,526 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 1,368 | 1,368 | 1,526 | ||
Impaired financing receivable, related allowance | 236 | 236 | 299 | ||
Impaired financing receivable, recorded investment | 3,752 | 3,752 | 3,955 | ||
Impaired financing receivable, unpaid principal balance | 3,756 | 3,756 | 3,968 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 2,422 | 2,200 | 2,430 | 2,209 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 46 | 23 | 70 | 44 | |
Impaired financing receivable, with related allowance, average recorded investment | 1,372 | 1,351 | 1,389 | 1,357 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 17 | 11 | 26 | 19 | |
Impaired financing receivable, average recorded investment | 3,794 | 3,551 | 3,819 | 3,566 | |
Impaired financing receivable, interest income, accrual method | 63 | 34 | 96 | 63 | |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, related allowance | 236 | 236 | 299 | ||
Impaired financing receivable, recorded investment | 3,739 | 3,739 | 3,955 | ||
Impaired financing receivable, unpaid principal balance | 3,743 | 3,743 | $ 3,968 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 2,409 | 2,200 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 46 | 23 | |||
Impaired financing receivable, with related allowance, average recorded investment | 1,372 | 1,351 | |||
Impaired financing receivable, with related allowance, interest income, accrual method | 17 | 11 | |||
Impaired financing receivable, average recorded investment | 3,781 | 3,551 | 3,806 | 3,566 | |
Impaired financing receivable, interest income, accrual method | 63 | $ 34 | 96 | $ 63 | |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, recorded investment | 13 | 13 | |||
Impaired financing receivable, unpaid principal balance | 13 | 13 | |||
Impaired financing receivable, with no related allowance, average recorded investment | 13 | ||||
Impaired financing receivable, average recorded investment | $ 13 | $ 13 |
Loans Receivable and the Allo52
Loans Receivable and the Allowance for Loan Losses Past Due Loan Aging (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | $ 15,782 | $ 29,347 | |
Loans current | 2,181,721 | 2,135,796 | |
Total Loans Receivable | 2,197,503 | 2,165,143 | |
Agricultural Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 531 | 443 | |
Loans current | 107,120 | 112,900 | |
Total Loans Receivable | 107,651 | 113,343 | |
Commercial and Industrial Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 5,154 | [1] | 12,562 |
Loans current | 480,483 | [1] | 446,919 |
Total Loans Receivable | 485,637 | [1] | 459,481 |
Commercial Credit Card Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans current | 1,489 | ||
Total Loans Receivable | 1,489 | ||
Commercial Real Estate Construction and Development Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 1,442 | 927 | |
Loans current | 134,287 | 125,758 | |
Total Loans Receivable | 135,729 | 126,685 | |
Farmland Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 565 | 464 | |
Loans current | 89,285 | 94,515 | |
Total Loans Receivable | 89,850 | 94,979 | |
Multifamily Real Estate Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 129 | ||
Loans current | 137,506 | 135,874 | |
Total Loans Receivable | 137,506 | 136,003 | |
Commercial Real Estate Loan Other Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 3,256 | 8,656 | |
Loans current | 719,222 | 697,920 | |
Total Loans Receivable | 722,478 | 706,576 | |
Residential Real Estate First Lien Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 4,259 | 5,322 | |
Loans current | 366,070 | 366,911 | |
Total Loans Receivable | 370,329 | 372,233 | |
Residential Real Estate Junior Lien Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 498 | 738 | |
Loans current | 113,159 | 117,025 | |
Total Loans Receivable | 113,657 | 117,763 | |
Consumer Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 77 | 106 | |
Loans current | 34,589 | 36,485 | |
Total Loans Receivable | 34,666 | 36,591 | |
Purchased Credit Impaired Loans Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 774 | 2,003 | |
Loans current | 21,205 | 20,795 | |
Total Loans Receivable | 21,979 | 22,798 | |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 4,866 | 8,238 | |
Financing Receivables, 30 to 59 Days Past Due | Agricultural Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 101 | 44 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial and Industrial Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 981 | [1] | 2,615 |
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 | 254 | 630 | |
Financing Receivables, 30 to 59 Days Past Due | Farmland Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 127 | 373 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 1,214 | 1,238 | |
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 | 1,902 | 2,851 | |
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 | 232 | 437 | |
Financing Receivables, 30 to 59 Days Past Due | Consumer Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 55 | 50 | |
Financing Receivables, 30 to 59 Days Past Due | Purchased Credit Impaired Loans Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 114 | 965 | |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 3,375 | 2,502 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial and Industrial Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 1,920 | [1] | 293 |
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 | 90 | ||
Financing Receivables, 60 to 89 Days Past Due | Farmland Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 121 | ||
Financing Receivables, 60 to 89 Days Past Due | Multifamily Real Estate Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 129 | ||
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 643 | 763 | |
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 | 336 | 1,143 | |
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 | 245 | 151 | |
Financing Receivables, 60 to 89 Days Past Due | Consumer Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 20 | 23 | |
Financing Receivables, 60 to 89 Days Past Due | Purchased Credit Impaired Loans Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 306 | 489 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 7,541 | 18,607 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Agricultural Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 430 | 399 | |
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 | 2,253 | [1] | 9,654 |
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 | 1,098 | 297 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Farmland Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 317 | 91 | |
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 | 1,399 | 6,655 | |
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 | 2,021 | 1,328 | |
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 | 21 | 150 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 2 | 33 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased Credit Impaired Loans Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 354 | 549 | |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | 107,651 | 113,343 | |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | 485,637 | [1] | 459,481 |
Commercial Portfolio Segment | Commercial Credit Card Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | 1,489 | ||
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 5,263 | 10,176 | |
Loans current | 1,080,300 | 1,054,067 | |
Total Loans Receivable | 1,085,563 | 1,064,243 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | 135,729 | 126,685 | |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | 89,850 | 94,979 | |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | 137,506 | 136,003 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | 722,478 | 706,576 | |
Commercial Real Estate Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 1,595 | 2,241 | |
Commercial Real Estate Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 854 | 892 | |
Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 2,814 | 7,043 | |
Residential Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 4,757 | 6,060 | |
Loans current | 479,229 | 483,936 | |
Total Loans Receivable | 483,986 | 489,996 | |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | 370,329 | 372,233 | |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | 113,657 | 117,763 | |
Residential Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 2,134 | 3,288 | |
Residential Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 581 | 1,294 | |
Residential Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Loans past due | 2,042 | 1,478 | |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans Receivable | $ 34,666 | $ 36,591 | |
[1] | As of the first quarter of 2017, the Company no longer considered credit cards a separate class of loans, and these balances are now included in commercial and industrial loans. |
Loans Receivable and the Allo53
Loans Receivable and the Allowance for Loan Losses Nonaccrual and 90+ Days Past Due and Still Accruing Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due | ||
Document Period End Date | Jun. 30, 2017 | |
Loans in nonaccrual status | $ 17,740 | $ 20,668 |
Loans 90 days past due and still accruing | 938 | 485 |
Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 494 | 2,690 |
Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 2,161 | 8,358 |
Loans 90 days past due and still accruing | 147 | |
Commercial Real Estate Construction and Development Loan Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 1,110 | 780 |
Loans 90 days past due and still accruing | 95 | |
Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 364 | 227 |
Loans 90 days past due and still accruing | 89 | |
Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 12,095 | 7,360 |
Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 1,364 | 1,127 |
Loans 90 days past due and still accruing | 702 | 375 |
Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 115 | 116 |
Loans 90 days past due and still accruing | 15 | |
Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans, nonaccrual or 90 days past due and still accruing | 400 | 2,600 |
Loans, discount, nonaccrual or 90 days past due and still accruing | 100 | 500 |
Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 37 | 10 |
Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 13,569 | 8,367 |
Loans 90 days past due and still accruing | 89 | 95 |
Residential Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 1,479 | 1,243 |
Loans 90 days past due and still accruing | $ 702 | $ 390 |
Loans Receivable and the Allo54
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | ||||
Balance at beginning of period | $ 1,633 | $ 845 | $ 1,961 | $ 1,446 |
Accretion | (475) | (509) | (891) | (1,110) |
Reclassifications (to) from nonaccretable difference | 213 | 3,208 | 301 | 3,208 |
Balance at end of period | $ 1,371 | $ 3,544 | $ 1,371 | $ 3,544 |
Loans Receivable and the Allo55
Loans Receivable and the Allowance for Loan Losses Textual References (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($)quarters | Dec. 31, 2016USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Covered loans contractual balance | $ 27.6 | |
Covered loans, net of discounts | $ 27.2 | |
Covered loans, FDIC coverage end date | Oct. 7, 2021 | |
Loans pledged for Federal Home Loan Bank debt | $ 485 | $ 498.3 |
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 | $ 24.5 | |
Purchased credit-impaired loans, discount | $ 2.6 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets Changes in Carrying Amount of Non-Goodwill Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | |
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | $ 15,171 | ||||
Amortization expense | $ (804) | $ (1,015) | (1,653) | $ (2,076) | |
Balance at end of period | 13,518 | 13,518 | |||
Gross carrying amount | $ 28,276 | ||||
Accumulated amortizations | (14,758) | ||||
Net book value | 13,518 | 15,171 | 13,518 | ||
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 | 203 | ||||
Amortization expense | (27) | ||||
Balance at end of period | 176 | 176 | |||
Gross carrying amount | 1,320 | ||||
Accumulated amortizations | (1,144) | ||||
Net book value | 176 | 203 | 176 | ||
Core deposit intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 6,846 | ||||
Amortization expense | (1,506) | ||||
Balance at end of period | 5,340 | 5,340 | |||
Gross carrying amount | 18,206 | ||||
Accumulated amortizations | (12,866) | ||||
Net book value | 5,340 | 6,846 | 5,340 | ||
Trade names intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 960 | ||||
Amortization expense | (111) | ||||
Balance at end of period | 849 | 849 | |||
Gross carrying amount | 1,380 | ||||
Accumulated amortizations | (531) | ||||
Net book value | 849 | 960 | 849 | ||
Customer list intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 122 | ||||
Amortization expense | (9) | ||||
Balance at end of period | 113 | 113 | |||
Gross carrying amount | 330 | ||||
Accumulated amortizations | (217) | ||||
Net book value | $ 113 | $ 122 | $ 113 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets Textual References (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Intangible Assets [Line Items] | ||
Goodwill, impairment loss | $ 0 | |
Goodwill | 64,654 | $ 64,654 |
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, 2017 | Dec. 31, 2016 | |
Other Assets [Abstract] | ||
Federal Home Loan Bank stock | $ 12,181,000 | $ 12,800,000 |
FDIC indemnification asset, net | 0 | 479,000 |
Prepaid expense | 1,874,000 | 1,760,000 |
Mortgage Servicing Rights | 2,136,000 | 1,951,000 |
Accounts receivable & other miscellaneous assets | 3,057,000 | 1,323,000 |
Other assets | 19,248,000 | 18,313,000 |
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, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Weighted Average Cost | 0.69% | 0.40% |
Short-term debt | $ 105,501 | $ 117,871 |
Available-for-sale securities pledged as collateral | 172,000 | 212,100 |
Federal Reserve Bank advances | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | 0 |
Unsercured line of credit, maximum borrowing capacity | 11,700 | 11,513 |
Available-for-sale securities pledged as collateral | $ 13,000 | $ 12,792 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Weighted Average Cost | 1.31% | 0.83% |
Short-term debt | $ 45,319 | $ 35,684 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Weighted Average Cost | 0.23% | 0.22% |
Short-term debt | $ 60,182 | $ 82,187 |
Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | |
Unsercured line of credit, maximum borrowing capacity | $ 5,000 | |
Debt Instrument, Issuance Date | Apr. 30, 2015 | |
Debt instrument, maturity date | Apr. 28, 2018 | |
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, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Junior subordinated notes issued to capital trusts, book value | $ 23,743 | $ 23,692 | |
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 | 23,743 | 23,692 | |
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] | $ 6,644 | $ 6,614 |
Interest rate | [1],[2] | 4.75% | 4.46% |
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] | $ 1,635 | $ 1,614 |
Interest rate | [1],[2] | 3.44% | 3.15% |
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] | 2.84% | 2.55% |
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, 2017 | Dec. 31, 2016 | Jun. 30, 2015 | Apr. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Long-term debt, excluding subordinated debt, weighted average interest rate | 1.81% | 1.69% | ||
Long-term Debt, Gross | $ 105,000 | $ 132,500 | ||
Federal Home Loan Bank Borrowings | ||||
Debt Instrument [Line Items] | ||||
Weighted average cost | 1.61% | 1.56% | ||
Long-term Debt, Gross | $ 90,000 | $ 115,000 | ||
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 | 2.98% | 2.52% | ||
Long-term Debt, Gross | $ 15,000 | $ 17,500 | ||
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected provision, amount | $ 3,629 | $ 2,292 | $ 6,864 | $ 4,899 |
Tax-exempt interest, amount | (795) | (745) | (1,581) | (1,499) |
Bank-owned life insurance, amount | (110) | (115) | (225) | (249) |
State income taxes, net of federal income tax benefit, amount | 443 | 327 | 848 | 647 |
Non-deductible acquisition expenses, amount | 0 | 28 | 0 | 53 |
General business credits, amount | (19) | (14) | (40) | (153) |
Other, amount | (12) | 21 | (201) | 1 |
Total income tax provision, amount | $ 3,136 | $ 1,794 | $ 5,665 | $ 3,699 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Expected provision, percent | 35.00% | 35.00% | 35.00% | 35.00% |
Tax-exempt interest, percent | (7.70%) | (11.40%) | (8.10%) | (10.70%) |
Bank-owned life insurance, percent | (1.10%) | (1.80%) | (1.10%) | (1.80%) |
State income taxes, net of federal income tax benefit, percent | 4.30% | 5.00% | 4.30% | 4.60% |
Non-deductible acquisition expenses, percent | 0.00% | 0.40% | 0.00% | 0.40% |
General business credits, percent | (0.20%) | (0.20%) | (0.20%) | (1.10%) |
Other, percent | (0.10%) | 0.40% | (1.00%) | 0.00% |
Total income tax provision, percent | 30.20% | 27.40% | 28.90% | 26.40% |
Estimated Fair Value of Finan63
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, 2017USD ($)count | Dec. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 442,958 | $ 477,518 |
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 | $ 2,334 | 1,267 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 440,624 | 476,251 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 442,958 | 477,518 |
Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 2,334 | 1,267 |
Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 440,624 | 476,251 |
Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | |
U.S. Government agencies and corporations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 5,778 | 5,905 |
U.S. Government agencies and corporations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 5,778 | 5,905 |
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 | 5,778 | 5,905 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 151,839 | 165,272 |
State and political subdivisions | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 151,839 | 165,272 |
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 | 151,839 | 165,272 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 54,115 | 61,354 |
Mortgage-backed securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 54,115 | 61,354 |
Mortgage-backed securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 54,115 | 61,354 |
Collateralized mortgage obligations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 164,390 | 171,267 |
Collateralized mortgage obligations | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 164,390 | 171,267 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 64,502 | 72,453 |
Corporate debt securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 64,502 | 72,453 |
Corporate debt securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 64,502 | 72,453 |
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 | $ 440,624 | 476,251 |
Debt securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 440,624 | 476,251 |
Debt securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 440,624 | 476,251 |
Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 2,334 | 1,267 |
Other equity securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 2,334 | 1,267 |
Other equity securities | Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 2,334 | $ 1,267 |
Estimated Fair Value of Finan64
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, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | $ 1,486 | $ 2,097 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 1,073 | 8,774 |
Other real estate owned | 1,486 | 2,097 |
Nonrecurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 1,073 | 8,774 |
Other real estate owned | $ 1,486 | $ 2,097 |
Estimated Fair Value of Finan65
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value of Financial Instruments (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investment securities: | ||
Available for sale securities | $ 442,958 | $ 477,518 |
Held to maturity securities | 182,478 | 168,392 |
Held to maturity, estimated fair value | 183,296 | 164,792 |
Accrued interest receivable | 12,606 | 13,871 |
Federal Home Loan Bank stock | 12,181 | 12,800 |
Deposits: | ||
Non-interest-bearing demand | 476,031 | 494,586 |
Interest-bearing checking | 1,131,151 | 1,136,282 |
Savings | 203,967 | 197,698 |
Accrued interest payable | $ 1,551 | 1,472 |
Federal Home Loan Bank stock, redemption price, per share | $ 100 | |
Reported Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | $ 49,398 | 43,228 |
Investment securities: | ||
Available for sale securities | 442,958 | 477,518 |
Held to maturity securities | 182,478 | 168,392 |
Total investment securities | 625,436 | 645,910 |
Loans held for sale | 1,636 | 4,241 |
Loans, net | 2,174,993 | 2,143,293 |
Accrued interest receivable | 12,606 | 13,871 |
Deposits: | ||
Non-interest-bearing demand | 476,031 | 494,586 |
Interest-bearing checking | 1,131,151 | 1,136,282 |
Savings | 203,967 | 197,698 |
Certificates of deposit under $100,000 | 325,847 | 326,832 |
Certificates of deposit $100,000 and over | 356,713 | 325,050 |
Total deposits | 2,493,709 | 2,480,448 |
Federal funds purchased and securities sold under agreements to repurchase | 105,501 | 117,871 |
Federal Home Loan Bank borrowings | 90,000 | 115,000 |
Junior subordinated notes issued to capital trusts | 23,743 | 23,692 |
Long-term debt | 15,000 | 17,500 |
Accrued interest payable | 1,551 | 1,472 |
Estimate of Fair Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | 49,398 | 43,228 |
Investment securities: | ||
Available for sale securities | 442,958 | 477,518 |
Held to maturity, estimated fair value | 183,296 | 164,792 |
Total investment securities | 626,254 | 642,310 |
Loans held for sale | 1,667 | 4,286 |
Loans, net | 2,175,104 | 2,138,252 |
Accrued interest receivable | 12,606 | 13,871 |
Federal Home Loan Bank stock | 12,181 | 12,800 |
Deposits: | ||
Non-interest-bearing demand | 476,031 | 494,586 |
Interest-bearing checking | 1,131,151 | 1,136,282 |
Savings | 203,967 | 197,698 |
Certificates of deposit under $100,000 | 323,885 | 324,978 |
Certificates of deposit $100,000 and over | 355,582 | 324,060 |
Total deposits | 2,490,616 | 2,477,604 |
Federal funds purchased and securities sold under agreements to repurchase | 105,501 | 117,871 |
Federal Home Loan Bank borrowings | 89,791 | 114,590 |
Junior subordinated notes issued to capital trusts | 19,462 | 19,248 |
Long-term debt | 15,000 | 17,500 |
Accrued interest payable | 1,551 | 1,472 |
Fair Value, Inputs, Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 49,398 | 43,228 |
Investment securities: | ||
Available for sale securities | 2,334 | 1,267 |
Total investment securities | 2,334 | 1,267 |
Accrued interest receivable | 12,606 | 13,871 |
Deposits: | ||
Non-interest-bearing demand | 476,031 | 494,586 |
Interest-bearing checking | 1,131,151 | 1,136,282 |
Savings | 203,967 | 197,698 |
Total deposits | 1,811,149 | 1,828,566 |
Federal funds purchased and securities sold under agreements to repurchase | 105,501 | 117,871 |
Accrued interest payable | 1,551 | 1,472 |
Fair Value, Inputs, Level 2 | ||
Investment securities: | ||
Available for sale securities | 440,624 | 476,251 |
Held to maturity, estimated fair value | 183,296 | 164,792 |
Total investment securities | 623,920 | 641,043 |
Loans, net | 2,175,104 | 2,138,252 |
Federal Home Loan Bank stock | 12,181 | 12,800 |
Deposits: | ||
Certificates of deposit under $100,000 | 323,885 | 324,978 |
Certificates of deposit $100,000 and over | 355,582 | 324,060 |
Total deposits | 679,467 | 649,038 |
Federal Home Loan Bank borrowings | 89,791 | 114,590 |
Junior subordinated notes issued to capital trusts | 19,462 | 19,248 |
Long-term debt | 15,000 | 17,500 |
Fair Value, Inputs, Level 3 | ||
Investment securities: | ||
Loans held for sale | 1,667 | 4,286 |
Loans, net |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 14, 2017 | Jun. 30, 2017 |
Subsequent Event | ||
Covered loans contractual balance, loss share agreement termination | $ 27.6 | |
Subsequent Event | Contract Termination [Member] | ||
Subsequent Event | ||
Payment for early termination agreement with the FDIC | $ 0.3 | |
Covered loans contractual balance, loss share agreement termination | 27.2 | |
Gain on termination of FDIC loss share agreement | $ 0.2 | |
Subsequent Event | Common Stock | ||
Subsequent Event | ||
Dividends payable, amount per share | $ 0.17 | |
Dividends payable, date to be paid | Sep. 15, 2017 | |
Dividends payable, date of record | Sep. 1, 2017 |