Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | MIDWESTONE FINANCIAL GROUP, INC. | |
Entity Central Index Key | 1,412,665 | |
Trading Symbol | MOFG | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 12,221,547 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 49,229 | $ 44,818 |
Interest-earning deposits in banks | 4,150 | 5,474 |
Federal funds sold | 0 | 680 |
Cash and cash equivalents | 53,379 | 50,972 |
Investment securities: | ||
Equity securities, at fair value | 2,797 | 2,336 |
Debt securities available for sale, at fair value | 407,766 | 445,324 |
Held to maturity securities at amortized cost (fair value of $186,057 at September 30, 2018 and $194,343 at December 31, 2017) | 191,733 | 195,619 |
Loans held for sale | 1,124 | 856 |
Loans held for investment, net of unearned fees | 2,377,649 | 2,286,695 |
Less: Allowance for loan losses | (31,278) | (28,059) |
Loans held for investment, net | 2,346,371 | 2,258,636 |
Premises and equipment, net | 76,497 | 75,969 |
Interest receivable | 14,800 | 14,732 |
Goodwill | 64,654 | 64,654 |
Other intangible assets, net | 10,378 | 12,046 |
Bank-owned life insurance | 60,609 | 59,831 |
Other real estate owned | 549 | 2,010 |
Deferred income taxes | 9,993 | 6,525 |
Other assets | 27,315 | 22,761 |
Total assets | 3,267,965 | 3,212,271 |
Deposits: | ||
Non-interest-bearing demand | 458,576 | 461,969 |
Interest-bearing checking | 1,236,922 | 1,228,112 |
Savings | 211,591 | 213,430 |
Certificates of deposit under $100,000 | 348,099 | 324,681 |
Certificates of deposit $100,000 and over | 377,071 | 377,127 |
Total deposits | 2,632,259 | 2,605,319 |
Federal funds purchased | 19,056 | 1,000 |
Securities sold under agreements to repurchase | 68,922 | 96,229 |
Federal Home Loan Bank borrowings | 143,000 | 115,000 |
Junior subordinated notes issued to capital trusts | 23,865 | 23,793 |
Long-term debt | 8,750 | 12,500 |
Deferred compensation liability | 5,305 | 5,199 |
Interest payable | 2,054 | 1,428 |
Other liabilities | 15,565 | 11,499 |
Total liabilities | 2,918,776 | 2,871,967 |
Shareholders' equity: | ||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding at September 30, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $1.00 par value; authorized 30,000,000 shares at September 30, 2018 and December 31, 2017; issued 12,463,481 shares at September 30, 2018 and December 31, 2017; 12,221,107 outstanding shares at September 30, 2018 and 12,219,611 shares at December 31, 2017 | 12,463 | 12,463 |
Additional paid-in capital | 187,581 | 187,486 |
Treasury stock at cost, 242,374 shares as of September 30, 2018 and 243,870 shares as of December 31, 2017 | (5,474) | (5,121) |
Retained earnings | 163,709 | 148,078 |
Accumulated other comprehensive income | (9,090) | (2,602) |
Total shareholders' equity | 349,189 | 340,304 |
Total liabilities and shareholders' equity | $ 3,267,965 | $ 3,212,271 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt securities held to maturity, estimated fair value | $ 186,057 | $ 194,343 |
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 | 30,000,000 |
Common stock, shares issued | 12,463,481 | 12,463,481 |
Common stock, shares outstanding | 12,221,107 | 12,219,611 |
Shares of Treasury stock | 242,374 | 243,870 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income: | ||||
Loans | $ 28,088 | $ 26,206 | $ 82,141 | $ 76,135 |
Bank deposits | 12 | 19 | 38 | 50 |
Federal funds sold | 0 | 0 | 1 | 1 |
Taxable securities | 2,965 | 2,589 | 8,793 | 7,897 |
Tax-exempt securities | 1,395 | 1,547 | 4,452 | 4,699 |
Total interest income | 32,460 | 30,361 | 95,425 | 88,782 |
Interest expense: | ||||
Interest-bearing checking | 1,622 | 913 | 3,998 | 2,623 |
Savings | 63 | 53 | 189 | 155 |
Certificates of deposit under $100,000 | 1,270 | 893 | 3,399 | 2,638 |
Certificates of deposit $100,000 and over | 1,670 | 1,041 | 4,584 | 2,953 |
Total interest expense on deposits | 4,625 | 2,900 | 12,170 | 8,369 |
Federal funds purchased | 144 | 81 | 480 | 152 |
Securities sold under agreements to repurchase | 173 | 53 | 451 | 125 |
Federal Home Loan Bank borrowings | 741 | 474 | 1,873 | 1,321 |
Other borrowings | 3 | 3 | 9 | 9 |
Junior subordinated notes issued to capital trusts | 313 | 243 | 878 | 704 |
Long-term debt | 100 | 115 | 309 | 338 |
Total interest expense | 6,099 | 3,869 | 16,170 | 11,018 |
Net interest income | 26,361 | 26,492 | 79,255 | 77,764 |
Provision for loan losses | 950 | 4,384 | 4,050 | 6,665 |
Net interest income after provision for loan losses | 25,411 | 22,108 | 75,205 | 71,099 |
Noninterest income: | ||||
Trust, investment and insurance fees | 1,526 | 1,454 | 4,703 | 4,594 |
Service charges and fees on deposit accounts | 1,148 | 1,295 | 3,474 | 3,835 |
Loan origination and servicing fees | 891 | 1,012 | 2,738 | 2,532 |
Other service charges and fees | 1,502 | 1,625 | 4,464 | 4,580 |
Bank-owned life insurance income | 399 | 344 | 1,229 | 990 |
Gain on sale or call of debt securities | 192 | 176 | 197 | 239 |
Other gain | 326 | 10 | 338 | 66 |
Total noninterest income | 5,984 | 5,916 | 17,143 | 16,836 |
Noninterest expense: | ||||
Salaries and employee benefits | 13,051 | 12,039 | 37,647 | 35,712 |
Occupancy and equipment, net | 3,951 | 2,986 | 10,440 | 9,323 |
Professional fees | 1,861 | 933 | 3,614 | 2,991 |
Data processing | 697 | 723 | 2,076 | 1,982 |
FDIC insurance | 393 | 238 | 1,104 | 957 |
Amortization of intangibles | 547 | 759 | 1,793 | 2,412 |
Other | 2,311 | 2,066 | 7,026 | 6,666 |
Total noninterest expense | 22,811 | 19,744 | 63,700 | 60,043 |
Income before income tax expense | 8,584 | 8,280 | 28,648 | 27,892 |
Income tax expense | 1,806 | 1,938 | 5,921 | 7,603 |
Net income | $ 6,778 | $ 6,342 | $ 22,727 | $ 20,289 |
Per share information: | ||||
Earnings per common share - basic | $ 0.55 | $ 0.52 | $ 1.86 | $ 1.69 |
Earnings per common share - diluted | 0.55 | 0.52 | 1.86 | 1.69 |
Dividends paid per common share | $ 0.195 | $ 0.170 | $ 0.585 | $ 0.500 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 6,778 | $ 6,342 | $ 22,727 | $ 20,289 |
Other comprehensive income, available for sale debt securities: | ||||
Unrealized holding gains (losses) arising during period | (2,085) | (1,158) | (8,501) | 3,154 |
Reclassification adjustment for gains included in net income | (192) | (176) | (201) | (196) |
Income tax (expense) benefit | 594 | 526 | 2,271 | (1,160) |
Other comprehensive income (loss) on available for sale debt securities | (1,683) | (808) | (6,431) | 1,798 |
Other comprehensive income (loss), net of tax | (1,683) | (808) | (6,431) | 1,798 |
Comprehensive income | $ 5,095 | $ 5,534 | 16,296 | 22,087 |
AOCI Attributable to Parent [Member] | ||||
Net income | 0 | 0 | ||
Other comprehensive income, available for sale debt securities: | ||||
Other comprehensive income (loss), net of tax | $ (6,431) | $ 1,798 |
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, 2016 | $ 305,456 | $ 0 | $ 11,713 | $ 163,667 | $ (5,766) | $ 136,975 | $ (1,133) | |
Net income | 20,289 | 0 | 0 | 0 | 0 | 20,289 | 0 | |
Issuance of common stock, net of expenses | 24,360 | 0 | 750 | 23,610 | 0 | 0 | 0 | |
Dividends paid on common stock | (5,984) | 0 | 0 | 0 | 0 | (5,984) | 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 | 660 | 0 | 0 | 660 | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 1,798 | 0 | 0 | 0 | 0 | 0 | 1,798 | |
Balance at Sep. 30, 2017 | 346,563 | 0 | 12,463 | 187,296 | (5,141) | 151,280 | 665 | |
Balance at Dec. 31, 2017 | 340,304 | 0 | 12,463 | 187,486 | (5,121) | 148,078 | (2,602) | |
Cumulative effect of changes in accounting principles | 0 | [1] | 0 | 0 | 0 | 0 | 57 | (57) |
Net income | 22,727 | 0 | 0 | 0 | 0 | 22,727 | 0 | |
Dividends paid on common stock | (7,153) | 0 | 0 | 0 | 0 | (7,153) | 0 | |
Stock options exercised | 136 | 0 | 0 | (68) | 204 | 0 | 0 | |
Release/lapse of restriction on RSUs | (85) | 0 | 0 | (609) | 524 | 0 | 0 | |
Repurchase of common stock | (1,081) | (1,081) | ||||||
Stock compensation | 772 | 0 | 0 | 772 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | (6,431) | 0 | 0 | 0 | 0 | 0 | (6,431) | |
Balance at Sep. 30, 2018 | $ 349,189 | $ 0 | $ 12,463 | $ 187,581 | $ (5,474) | $ 163,709 | $ (9,090) | |
[1] |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity Parenthetical (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Dividends paid on common stock (per share) | $ 0.585 | $ 0.500 |
Common Stock | ||
Repurchase of common stock (shares) | 33,998 | 0 |
Common Stock | ||
Issuance of common stock (shares) | 0 | 750,000 |
Stock options exercised (shares) | 9,700 | 8,250 |
Release/lapse of restriction on RSUs (shares) | 28,525 | 26,875 |
Additional Paid-in Capital | ||
Expenses incurred in issuance of common stock | $ 0 | $ 1,328 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 22,727 | $ 20,289 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 4,050 | 6,665 |
Depreciation, amortization and accretion | 3,217 | 3,088 |
Amortization of other intangibles | 1,793 | 2,412 |
Amortization of premiums and discounts on investment securities, net | (729) | (913) |
(Gain) loss on sale of premises and equipment | 616 | (2) |
Deferred income taxes | 1,184 | 554 |
Excess tax benefit from share-based award activity | (14) | (91) |
Stock-based compensation | 772 | 660 |
Net losses on equity securities | 34 | 0 |
Net gain on sale or call of debt securities available for sale | (201) | (196) |
Net (gain) loss on sale or call of debt securities held to maturity | 4 | (43) |
Net gain on sale of other real estate owned | (240) | (45) |
Net gain on sale of loans held for sale | (1,214) | (1,337) |
Writedown of other real estate owned | 5 | 23 |
Origination of loans held for sale | 49,091 | 65,078 |
Proceeds from sales of loans held for sale | 50,037 | 70,044 |
Increase in interest receivable | (68) | 0 |
Increase in cash surrender value of bank-owned life insurance | (1,229) | (990) |
Increase in other assets | (4,554) | (2,224) |
Increase (decrease) in deferred compensation liability | 106 | (22) |
Increase in interest payable, accounts payable, accrued expenses, and other liabilities | 4,692 | 445 |
Net cash provided by operating activities | 30,987 | 33,957 |
Cash flows from investing activities: | ||
Purchases of equity securities | (508) | (7) |
Proceeds from sales of debt securities available for sale | 16,494 | 22,546 |
Proceeds from maturities and calls of debt securities available for sale | 51,338 | 53,171 |
Purchases of debt securities available for sale | (39,289) | (23,038) |
Proceeds from sales of debt securities held to maturity | 0 | 1,153 |
Proceeds from maturities and calls of debt securities held to maturity | 4,220 | 12,370 |
Purchases of debt securities held to maturity | (553) | (28,546) |
Net increase in loans | (92,320) | (100,880) |
Purchases of premises and equipment | (5,196) | (3,035) |
Proceeds from sale of other real estate owned | 2,231 | 983 |
Proceeds from sale of premises and equipment | 906 | 32 |
Proceeds of principal and earnings from bank-owned life insurance | 452 | 0 |
Purchases of bank owned life insurance | 0 | 11,211 |
Payments to acquire intangible assets | 125 | 0 |
Net cash used in investing activities | (62,350) | (76,462) |
Cash flows from financing activities: | ||
Net increase in deposits | 26,940 | 9,967 |
Increase (decrease) in federal funds purchased | 18,056 | (18,976) |
Increase (decrease) in securities sold under agreements to repurchase | (27,307) | 5,777 |
Proceeds from Federal Home Loan Bank borrowings | 110,000 | 145,000 |
Repayment of Federal Home Loan Bank borrowings | (82,000) | (115,000) |
Proceeds from stock options exercised | 136 | 1 |
Excess tax benefit from share-based award activity | 14 | 91 |
Taxes paid relating to net share settlement of equity awards | (85) | (108) |
Payments on long-term debt | (3,750) | (3,750) |
Dividends paid | (7,153) | (5,984) |
Proceeds from issuance of common stock | 0 | 25,688 |
Payments of stock issuance costs | 0 | (1,328) |
Repurchase of common stock | (1,081) | 0 |
Net cash provided by financing activities | 33,770 | 41,378 |
Net increase (decrease) in cash and cash equivalents | 2,407 | (1,127) |
Cash and cash equivalents at beginning of period | 50,972 | 43,228 |
Cash and cash equivalents at end of period | 53,379 | 42,101 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 15,544 | 11,041 |
Cash paid during the period for income taxes | 4,420 | 8,460 |
Supplemental schedule of non-cash investing activities: | ||
Transfer of loans to other real estate owned | 535 | 207 |
Accounting Standards Update 2016-01 | ||
Supplemental schedule of non-cash investing activities: | ||
Transfer due to cumulative effective of change in accounting principles. See Note 2. “Effect of New Financial Accounting Standards” for additional information. | $ 57 | $ 0 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities Schedule of Other Derivatives Not Designated as Hedging Instruments - Other Gain (Loss) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other gain (loss), net | $ 147 | $ 0 | $ 127 | $ 0 |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other gain (loss), net | 0 | 0 | (20) | 0 |
Risk Participation Agreement | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other gain (loss), net | $ 147 | $ 0 | $ 147 | $ 0 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities Offsetting Derivative Assets and Liabilities - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Asset [Abstract] | ||
Gross amount of recognized assets | $ 205 | $ 0 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amount of assets presented in the balance sheet | 205 | 0 |
Financial instruments | 100 | 0 |
Cash collateral received | 0 | 0 |
Net assets | 105 | 0 |
Derivative Liability [Abstract] | ||
Gross amount of recognized liabilities | (178) | 0 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amount of liabilities presented in the balance sheet | 178 | 0 |
Financial instruments | 100 | 0 |
Cash collateral paid | 0 | 0 |
Net liabilities | $ 78 | $ 0 |
Principles of Consolidation and
Principles of Consolidation and Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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. On August 21, 2018, the Company entered into a merger agreement with ATBancorp, an Iowa corporation, pursuant to which ATBancorp will merge with and into the Company. In connection with the merger, American Trust & Savings Bank, an Iowa state chartered bank and wholly owned subsidiary of ATBancorp, and American Bank & Trust Wisconsin, a Wisconsin state chartered bank and wholly owned subsidiary of ATBancorp, will merge with and into MidWest One Bank, which will continue as the surviving bank. The merger agreement also provides that each of the outstanding shares of ATBancorp common stock will be converted into the right of ATBancorp shareholders to receive 117.5500 shares of Company common stock and $992.51 in cash. The corporate headquarters of the combined company will be in Iowa City, Iowa. The merger is anticipated to be completed in the first quarter of 2019. For further information, please refer to the Current Report on Form 8-K filed by the Company with the SEC on August 22, 2018. 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. 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, filed with the Securities and Exchange Commission (SEC) on March 1, 2018 , 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, 2017 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 September 30, 2018 and December 31, 2017 , and the results of operations and cash flows for the three and nine months ended September 30, 2018 and 2017 . 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 nine months ended September 30, 2018 may not be indicative of results for the year ending December 31, 2018 , or for any other period. All significant accounting policies followed in the preparation of the quarterly financial statements are disclosed in the Annual Report on Form 10-K for the year ended December 31, 2017 . 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. |
Effect of New Financial Account
Effect of New Financial Accounting Standards | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Effect of New Financial Accounting Standards Accounting Guidance Adopted in 2018 In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contract with Customers (Topic 606). Subsequent to the issuance of ASU 2014-09, the FASB issued targeted updates to clarify specific implementation issues including ASU No. 2016-08, “ Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ,” ASU No. 2016-10, “ Identifying Performance Obligations and Licensing, ” ASU No. 2016-12, “ Narrow-Scope Improvements and Practical Expedients, ” and ASU No. 2016-20 “ Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. ” For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other sections of GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including trust and asset management fees, service charges on deposit accounts, sales of other real estate, and debit card interchange fees. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. The Company also completed its evaluation of certain costs related to these revenue streams to determine whether such costs should be presented as expenses or contra-revenue (i.e., gross versus net). Based on its evaluation, the Company determined that ASU 2014-09 also did not materially change the method in which the Company currently recognizes costs for these revenue streams. The Company adopted this update on January 1, 2018, utilizing the modified retrospective transition method. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. See Note 14 “Revenue Recognition” for more information. 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) require changes to current methodologies of determining these values, 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. The Company adopted this update on January 1, 2018. With the elimination of the classification of available for sale equity securities, the net unrealized gain or loss on these securities that had been included in accumulated other comprehensive income at December 31, 2017, in the amount of $57,000 , has been transferred to retained earnings, as shown in the consolidated statements of shareholders’ equity. Changes in the fair value of equity securities with readily determinable fair values are now reflected in the noninterest income portion of the consolidated statements of income, in the other gains (losses) line item. In accordance with the ASU requirements, the Company measured the fair value of its loan portfolio as of September 30, 2018 using an exit price notion. See Note 13. “Estimated Fair Value of Financial Instruments and Fair Value Measurements” to our consolidated financial statements. Accounting Guidance Pending Adoption at September 30, 2018 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. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of income, along with the Company’s regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s consolidated financial statements, and does not expect to early adopt the standard. 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 other-than-temporary impairment (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, and has selected a software vendor to assist with implementation. The team meets periodically to discuss the latest developments, ensure progress is being made, and keep current on evolving interpretations and industry practices related to ASU 2016-13. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular the level of the reserve for credit losses. The Company is continuing to evaluate the extent of the potential impact. In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including the consideration of costs and benefits. Four disclosure requirements were removed, three were modified, and two were added. In addition, the amendments eliminate “ at a minimum” from the phrase “ an entity shall disclose at a minimum” |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
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 debt securities available for sale, with gross unrealized gains and losses, were as follows: As of September 30, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government agencies and corporations $ 5,561 $ — $ 42 $ 5,519 State and political subdivisions 115,251 716 831 115,136 Mortgage-backed securities 53,664 112 1,880 51,896 Collateralized mortgage obligations 179,748 3 8,874 170,877 Corporate debt securities 65,842 8 1,512 64,338 Total $ 420,066 $ 839 $ 13,139 $ 407,766 As of December 31, 2017 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government agencies and corporations $ 15,716 $ — $ 90 $ 15,626 State and political subdivisions 139,561 2,475 197 141,839 Mortgage-backed securities 48,744 181 428 48,497 Collateralized mortgage obligations 173,339 29 5,172 168,196 Corporate debt securities 71,562 31 427 71,166 Total $ 448,922 $ 2,716 $ 6,314 $ 445,324 The amortized cost and fair value of debt securities held to maturity, with gross unrealized gains and losses, were as follows: As of September 30, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value State and political subdivisions $ 125,783 $ 155 $ 3,743 $ 122,195 Mortgage-backed securities 11,467 1 564 10,904 Collateralized mortgage obligations 19,373 — 1,104 18,269 Corporate debt securities 35,110 98 519 34,689 Total $ 191,733 $ 254 $ 5,930 $ 186,057 As of December 31, 2017 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government agencies and corporations $ 10,049 $ — $ — $ 10,049 State and political subdivisions 126,413 804 1,631 125,586 Mortgage-backed securities 1,906 4 13 1,897 Collateralized mortgage obligations 22,115 — 707 21,408 Corporate debt securities 35,136 548 281 35,403 Total $ 195,619 $ 1,356 $ 2,632 $ 194,343 Investment securities with a carrying value of $217.8 million and $237.4 million at September 30, 2018 and December 31, 2017 , respectively, were pledged on public deposits, securities sold under agreements to repurchase and for other purposes, as required or permitted by law. As of September 30, 2018 , the Company owned $0.4 million of equity securities in banks and financial service-related companies, and $2.4 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. Prior to January 1, 2018, we accounted for our marketable equity securities at fair value with unrealized gains and losses recognized in accumulated other comprehensive income on the balance sheet. Realized gains and losses on marketable equity securities sold or impaired were recognized in noninterest income. Effective with the January 1, 2018 adoption of ASU 2016-01, both the realized and unrealized net gains and losses on equity securities are required to be recognized in the statement of income. A breakdown between net realized and unrealized gains and losses is provided later in this financial statement footnote. These net changes are included in the other gains line item in the noninterest income section of the Consolidated Statements of Income . 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 September 30, 2018 and December 31, 2017 . 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 September 30, 2018 and December 31, 2017 , aggregated by investment category and length of time that individual securities have been in a continuous loss position: As of September 30, 2018 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) U.S. Government agencies and corporations 2 $ 539 $ 14 $ 4,980 $ 28 $ 5,519 $ 42 State and political subdivisions 115 46,374 697 5,350 134 51,724 831 Mortgage-backed securities 26 40,039 1,613 7,591 267 47,630 1,880 Collateralized mortgage obligations 41 44,912 1,269 116,814 7,605 161,726 8,874 Corporate debt securities 12 50,439 1,149 12,230 363 62,669 1,512 Total 196 $ 182,303 $ 4,742 $ 146,965 $ 8,397 $ 329,268 $ 13,139 As of December 31, 2017 Number of Securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) U.S. Government agencies and corporations 3 $ 15,626 $ 90 $ — $ — $ 15,626 $ 90 State and political subdivisions 34 11,705 167 1,800 30 13,505 197 Mortgage-backed securities 20 37,964 359 3,961 69 41,925 428 Collateralized mortgage obligations 35 37,881 489 122,757 4,683 160,638 5,172 Corporate debt securities 12 55,340 298 8,778 129 64,118 427 Other equity securities 1 — — 1,944 56 1,944 56 Total 105 $ 158,516 $ 1,403 $ 139,240 $ 4,967 $ 297,756 $ 6,370 As of September 30, 2018 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 257 $ 54,969 $ 1,271 $ 33,512 $ 2,472 $ 88,481 $ 3,743 Mortgage-backed securities 6 10,016 524 820 40 10,836 564 Collateralized mortgage obligations 7 — — 18,259 1,104 18,259 1,104 Corporate debt securities 13 18,126 345 2,722 174 20,848 519 Total 283 $ 83,111 $ 2,140 $ 55,313 $ 3,790 $ 138,424 $ 5,930 As of December 31, 2017 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 167 $ 33,237 $ 393 $ 25,843 $ 1,238 $ 59,080 $ 1,631 Mortgage-backed securities 4 349 2 887 11 1,236 13 Collateralized mortgage obligations 7 5,221 90 16,168 617 21,389 707 Corporate debt securities 3 3,093 4 2,617 277 5,710 281 Total 181 $ 41,900 $ 489 $ 45,515 $ 2,143 $ 87,415 $ 2,632 The Company's assessment of OTTI is based on its reasonable judgment of the specific facts and circumstances impacting each individual debt security at the time such assessments are made. The Company reviews and considers factual information, including expected cash flows, the structure of the debt security, the creditworthiness of the issuer, the type of underlying assets and the current and anticipated market conditions. At September 30, 2018 and December 31, 2017 , 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 September 30, 2018 , approximately 53% of the municipal bonds held by the Company were Iowa-based, and approximately 24% 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 September 30, 2018 and December 31, 2017 . At September 30, 2018 and December 31, 2017 , 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 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. 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 income. Unless certain conditions are met, investment securities classified as held to maturity may not be sold without calling into question the Company’s intent to hold other debt securities so classified (“tainting”). One acceptable condition, outlined in Accounting Standards Codification 320-10-25-6(a), is the significant deterioration of an issuer’s creditworthiness. During the first quarter of 2017, $1.2 million of debt securities from a single issuer in the state and political subdivisions category were identified by the Company as having an elevated level of credit risk and were internally classified as “watch.” Given the significant deterioration of the issuer’s creditworthiness, the Company sold the debt securities in March 2017. The Company believes the sale was in accordance with applicable accounting guidance and did not taint the remainder of the held to maturity portfolio. The contractual maturity distribution of investment debt securities at September 30, 2018 , is summarized as follows: Available For Sale Held to Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 27,913 $ 27,866 $ 734 $ 736 Due after one year through five years 99,630 98,105 24,275 23,867 Due after five years through ten years 55,757 55,700 97,511 95,353 Due after ten years 3,354 3,322 38,373 36,928 Debt securities without a single maturity date 233,412 222,773 30,840 29,173 Total $ 420,066 $ 407,766 $ 191,733 $ 186,057 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. Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. Realized gains (losses) on investments due to sale or call, including impairment losses for the three and nine months ended September 30, 2018 and 2017 , were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Debt securities available for sale: Gross realized gains $ 194 $ 179 203 199 Gross realized losses (2 ) (3 ) (2 ) (3 ) Net realized gain $ 192 $ 176 $ 201 $ 196 Debt securities held to maturity: Gross realized gains $ — $ — $ — $ 43 Gross realized losses — — (4 ) — Net realized gain (loss) $ — $ — $ (4 ) $ 43 Total net realized gain on sale or call of debt securities $ 192 $ 176 $ 197 $ 239 The following tables present the net gains and losses on equity investments during the three and nine months ended September 30, 2018 , disaggregated into realized and unrealized gains and losses: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Net losses recognized $ (10 ) $ — $ (34 ) $ — Less: Net gains and losses recognized due to sales — — — — Unrealized losses on securities still held at the reporting date $ (10 ) $ — $ (34 ) $ — |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total September 30, 2018 Loans receivable Individually evaluated for impairment $ 6,711 $ 12,924 $ 17,375 $ 3,981 $ 8 $ 40,999 Collectively evaluated for impairment 96,496 510,357 1,223,311 450,246 38,788 2,319,198 Purchased credit impaired loans — 52 13,104 4,296 — 17,452 Total $ 103,207 $ 523,333 $ 1,253,790 $ 458,523 $ 38,796 $ 2,377,649 Allowance for loan losses: Individually evaluated for impairment $ 195 $ 3,059 $ 4,183 $ 143 $ — $ 7,580 Collectively evaluated for impairment 2,532 5,183 12,563 2,356 251 22,885 Purchased credit impaired loans — — 343 470 — 813 Total $ 2,727 $ 8,242 $ 17,089 $ 2,969 $ 251 $ 31,278 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total December 31, 2017 Loans receivable Individually evaluated for impairment $ 2,969 $ 9,734 $ 10,386 $ 3,722 $ — $ 26,811 Collectively evaluated for impairment 102,543 493,844 1,147,133 460,475 36,158 2,240,153 Purchased credit impaired loans — 46 14,452 5,233 — 19,731 Total $ 105,512 $ 503,624 $ 1,171,971 $ 469,430 $ 36,158 $ 2,286,695 Allowance for loan losses: Individually evaluated for impairment $ 140 $ 1,126 $ 2,157 $ 226 $ — $ 3,649 Collectively evaluated for impairment 2,650 7,392 11,144 2,182 244 23,612 Purchased credit impaired loans — — 336 462 — 798 Total $ 2,790 $ 8,518 $ 13,637 $ 2,870 $ 244 $ 28,059 As of September 30, 2018 , the gross purchased credit impaired loans included above were $18.3 million , with a discount of $0.9 million . Loans with unpaid principal in the amount of $459.1 million and $477.6 million at September 30, 2018 and December 31, 2017 , 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 September 30, 2018 and 2017 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total 2018 Beginning balance $ 2,656 $ 8,557 $ 16,341 $ 2,990 $ 256 $ 30,800 Charge-offs (365 ) (108 ) (17 ) — (327 ) (817 ) Recoveries 41 78 77 131 18 345 Provision 395 (285 ) 688 (152 ) 304 950 Ending balance $ 2,727 $ 8,242 $ 17,089 $ 2,969 $ 251 $ 31,278 2017 Beginning balance $ 2,666 $ 7,959 $ 9,013 $ 2,650 $ 222 $ 22,510 Charge-offs (318 ) (534 ) — (75 ) (51 ) (978 ) Recoveries 150 113 201 126 4 594 Provision 67 2,157 1,166 915 79 4,384 Ending balance $ 2,565 $ 9,695 $ 10,380 $ 3,616 $ 254 $ 26,510 Allowance for Loan Loss Activity For the Nine Months Ended September 30, 2018 and 2017 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total 2018 Beginning balance $ 2,790 $ 8,518 $ 13,637 $ 2,870 $ 244 $ 28,059 Charge-offs (633 ) (198 ) (281 ) (107 ) (365 ) (1,584 ) Recoveries 56 260 193 208 36 753 Provision 514 (338 ) 3,540 (2 ) 336 4,050 Ending balance $ 2,727 $ 8,242 $ 17,089 $ 2,969 $ 251 $ 31,278 2017 Beginning balance $ 2,003 $ 6,274 $ 9,860 $ 3,458 $ 255 $ 21,850 Charge-offs (1,202 ) (1,063 ) (106 ) (155 ) (211 ) (2,737 ) Recoveries 164 215 216 126 11 732 Provision 1,600 4,269 410 187 199 6,665 Ending balance $ 2,565 $ 9,695 $ 10,380 $ 3,616 $ 254 $ 26,510 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.” 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 September 30, 2018 2017 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) : Total — $ — $ — — $ — $ — Nine Months Ended September 30, 2018 2017 (dollars in thousands) 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 Troubled Debt Restructurings (1) : Commercial and industrial Extended maturity date — $ — $ — 6 $ 2,037 $ 2,083 Commercial real estate: Farmland Extended maturity date 1 86 86 2 176 176 Commercial real estate-other Extended maturity date — — — 1 968 968 Other — — — 1 10,546 10,923 Total 1 $ 86 $ 86 10 $ 13,727 $ 14,150 (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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (dollars in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Troubled Debt Restructurings (1) That Subsequently Defaulted: Commercial and industrial Extended maturity date — $ — — $ — — $ — 4 $ 1,504 Commercial real estate: Commercial real estate-other Extended maturity date — — — — — — 1 968 Total — $ — — $ — — $ — 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 or more 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 is 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 September 30, 2018 and December 31, 2017 : (in thousands) Pass Special Mention/ Watch Substandard Doubtful Loss Total September 30, 2018 Agricultural $ 78,007 $ 17,266 $ 7,934 $ — $ — $ 103,207 Commercial and industrial 482,136 21,166 20,027 4 — 523,333 Commercial real estate: Construction and development 221,114 1,078 1,132 — — 223,324 Farmland 69,824 6,970 8,941 — — 85,735 Multifamily 124,092 1,391 1,180 — — 126,663 Commercial real estate-other 748,837 44,603 24,628 — — 818,068 Total commercial real estate 1,163,867 54,042 35,881 — — 1,253,790 Residential real estate: One- to four- family first liens 333,974 2,289 6,492 — — 342,755 One- to four- family junior liens 113,526 687 1,555 — — 115,768 Total residential real estate 447,500 2,976 8,047 — — 458,523 Consumer 38,621 148 — 27 — 38,796 Total $ 2,210,131 $ 95,598 $ 71,889 $ 31 $ — $ 2,377,649 (in thousands) Pass Special Mention/ Watch Substandard Doubtful Loss Total December 31, 2017 Agricultural $ 80,377 $ 21,989 $ 3,146 $ — $ — $ 105,512 Commercial and industrial 453,363 23,153 27,102 6 — 503,624 Commercial real estate: Construction and development 162,968 1,061 1,247 — — 165,276 Farmland 76,740 10,357 771 — — 87,868 Multifamily 131,507 2,498 501 — — 134,506 Commercial real estate-other 731,231 34,056 19,034 — — 784,321 Total commercial real estate 1,102,446 47,972 21,553 — — 1,171,971 Residential real estate: One- to four- family first liens 340,446 2,776 9,004 — — 352,226 One- to four- family junior liens 114,763 952 1,489 — — 117,204 Total residential real estate 455,209 3,728 10,493 — — 469,430 Consumer 36,059 — 68 31 — 36,158 Total $ 2,127,454 $ 96,842 $ 62,362 $ 37 $ — $ 2,286,695 Included within the special mention/watch, substandard, and doubtful categories at September 30, 2018 and December 31, 2017 are purchased credit impaired loans totaling $11.1 million and $12.6 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 September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Agricultural $ 5,161 $ 5,661 $ — $ 1,523 $ 2,023 $ — Commercial and industrial 3,796 3,990 — 7,588 7,963 — Commercial real estate: Construction and development 84 84 — 84 84 — Farmland 3,539 3,539 — 287 287 — Multifamily 821 821 — — — — Commercial real estate-other 6,290 6,800 — 5,746 6,251 — Total commercial real estate 10,734 11,244 — 6,117 6,622 — Residential real estate: One- to four- family first liens 2,677 2,737 — 2,449 2,482 — One- to four- family junior liens 344 345 — 26 26 — Total residential real estate 3,021 3,082 — 2,475 2,508 — Consumer 8 8 — — — — Total $ 22,720 $ 23,985 $ — $ 17,703 $ 19,116 $ — With an allowance recorded: Agricultural $ 1,550 $ 1,920 $ 195 $ 1,446 $ 1,446 $ 140 Commercial and industrial 9,128 9,258 3,059 2,146 2,177 1,126 Commercial real estate: Construction and development — — — — — — Farmland 2,123 2,123 662 — — — Multifamily — — — — — — Commercial real estate-other 4,518 12,184 3,521 4,269 11,536 2,157 Total commercial real estate 6,641 14,307 4,183 4,269 11,536 2,157 Residential real estate: One- to four- family first liens 960 960 143 979 979 185 One- to four- family junior liens — — — 268 268 41 Total residential real estate 960 960 143 1,247 1,247 226 Consumer — — — — — — Total $ 18,279 $ 26,445 $ 7,580 $ 9,108 $ 16,406 $ 3,649 Total: Agricultural $ 6,711 $ 7,581 $ 195 $ 2,969 $ 3,469 $ 140 Commercial and industrial 12,924 13,248 3,059 9,734 10,140 1,126 Commercial real estate: Construction and development 84 84 — 84 84 — Farmland 5,662 5,662 662 287 287 — Multifamily 821 821 — — — — Commercial real estate-other 10,808 18,984 3,521 10,015 17,787 2,157 Total commercial real estate 17,375 25,551 4,183 10,386 18,158 2,157 Residential real estate: One- to four- family first liens 3,637 3,697 143 3,428 3,461 185 One- to four- family junior liens 344 345 — 294 294 41 Total residential real estate 3,981 4,042 143 3,722 3,755 226 Consumer 8 8 — — — — Total $ 40,999 $ 50,430 $ 7,580 $ 26,811 $ 35,522 $ 3,649 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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Agricultural $ 4,864 $ 71 $ 881 $ 17 $ 3,480 $ 180 $ 674 $ 50 Commercial and industrial 3,961 36 2,878 77 3,563 150 2,899 124 Commercial real estate: Construction and development 84 — 423 — 84 — 434 2 Farmland 3,274 44 212 — 1,745 86 1,193 58 Multifamily 822 10 — — 618 30 — — Commercial real estate-other 6,326 77 2,148 18 5,428 201 1,894 63 Total commercial real estate 10,506 131 2,783 18 7,875 317 3,521 123 Residential real estate: One- to four- family first liens 2,578 34 2,183 23 1,942 53 2,197 69 One- to four- family junior liens 323 1 13 — 301 1 13 — Total residential real estate 2,901 35 2,196 23 2,243 54 2,210 69 Consumer 4 — — — 2 — — — Total $ 22,236 $ 273 $ 8,738 $ 135 $ 17,163 $ 701 $ 9,304 $ 366 With an allowance recorded: Agricultural $ 1,974 $ — $ 1,446 $ 11 $ 2,108 $ — $ 1,460 $ 33 Commercial and industrial 8,905 43 8,458 85 7,778 89 8,423 163 Commercial real estate: Construction and development — — 311 — — — 232 — Farmland 2,123 — — — 1,584 — — — Multifamily — — — — — — — — Commercial real estate-other 4,536 16 12,863 — 4,443 — 12,881 44 Total commercial real estate 6,659 16 13,174 — 6,027 — 13,113 44 Residential real estate: One- to four- family first liens 963 9 1,361 9 969 27 1,392 26 One- to four- family junior liens — — — — — — — — Total residential real estate 963 9 1,361 9 969 27 1,392 26 Consumer — — — — — — — — Total $ 18,501 $ 68 $ 24,439 $ 105 $ 16,882 $ 116 $ 24,388 $ 266 Total: Agricultural $ 6,838 $ 71 $ 2,327 $ 28 $ 5,588 $ 180 $ 2,134 $ 83 Commercial and industrial 12,866 79 11,336 162 11,341 239 11,322 287 Commercial real estate: Construction and development 84 — 734 — 84 — 666 2 Farmland 5,397 44 212 — 3,329 86 1,193 58 Multifamily 822 10 — — 618 30 — — Commercial real estate-other 10,862 93 15,011 18 9,871 201 14,775 107 Total commercial real estate 17,165 147 15,957 18 13,902 317 16,634 167 Residential real estate: One- to four- family first liens 3,541 43 3,544 32 2,911 80 3,589 95 One- to four- family junior liens 323 1 13 — 301 1 13 — Total residential real estate 3,864 44 3,557 32 3,212 81 3,602 95 Consumer 4 — — — 2 — — — Total $ 40,737 $ 341 $ 33,177 $ 240 $ 34,045 $ 817 $ 33,692 $ 632 The following table presents the contractual aging of the recorded investment in past due loans by class of loans at September 30, 2018 and December 31, 2017 : (in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable September 30, 2018 Agricultural $ 72 $ 100 $ 230 $ 402 $ 102,805 $ 103,207 Commercial and industrial 1,206 315 6,701 8,222 515,111 523,333 Commercial real estate: Construction and development — 10 83 93 223,231 223,324 Farmland — — 141 141 85,594 85,735 Multifamily — — — — 126,663 126,663 Commercial real estate-other 4,198 101 3,814 8,113 809,955 818,068 Total commercial real estate 4,198 111 4,038 8,347 1,245,443 1,253,790 Residential real estate: One- to four- family first liens 3,381 313 965 4,659 338,096 342,755 One- to four- family junior liens 225 94 377 696 115,072 115,768 Total residential real estate 3,606 407 1,342 5,355 453,168 458,523 Consumer 138 3 31 172 38,624 38,796 Total $ 9,220 $ 936 $ 12,342 $ 22,498 $ 2,355,151 $ 2,377,649 Included in the totals above are the following purchased credit impaired loans $ — $ — $ — $ — $ 17,452 $ 17,452 December 31, 2017 Agricultural $ 95 $ 118 $ 168 $ 381 $ 105,131 $ 105,512 Commercial and industrial 1,434 1,336 1,576 4,346 499,278 503,624 Commercial real estate: Construction and development 57 97 82 236 165,040 165,276 Farmland 217 — 373 590 87,278 87,868 Multifamily — 25 — 25 134,481 134,506 Commercial real estate-other 74 — 1,852 1,926 782,395 784,321 Total commercial real estate 348 122 2,307 2,777 1,169,194 1,171,971 Residential real estate: One- to four- family first liens 3,854 756 1,019 5,629 346,597 352,226 One- to four- family junior liens 325 770 271 1,366 115,838 117,204 Total residential real estate 4,179 1,526 1,290 6,995 462,435 469,430 Consumer 79 15 29 123 36,035 36,158 Total $ 6,135 $ 3,117 $ 5,370 $ 14,622 $ 2,272,073 $ 2,286,695 Included in the totals above are the following purchased credit impaired loans $ 164 $ 756 $ 553 $ 1,473 $ 18,258 $ 19,731 Non-accrual and Delinquent Loans Loans are placed on non-accrual when (1) payment in full of principal and interest is no longer e |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives and Hedging Activities FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company does not use derivatives for trading or speculative purposes. In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loans and borrowings. The following table presents the total notional and gross fair value of the Company’s derivatives as of September 30, 2018 and December 31, 2017 . The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting agreements, as included in other assets and other liabilities, respectively, on the consolidated balance sheets. As of September 30, 2018 As of December 31, 2017 Fair Value Fair Value (in thousands) Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps $ 7,855 $ 100 $ — $ — $ — $ — Derivatives not designated as hedging instruments: Interest rate swaps $ 13,840 $ 105 $ 125 $ — $ — $ — Risk participation agreements (RPAs) 10,112 — 53 — — — Total derivatives not designated as hedging instruments $ 23,952 $ 105 $ 178 $ — $ — $ — Derivatives Designated as Hedging Instruments The Company is exposed to changes in the fair value of certain of its fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate, LIBOR. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. The table below presents the effect of the Company’s derivative financial instruments designated as hedging instruments on the consolidated statements of income for the three and nine months ended September 30, 2018 and September 30, 2017 : Location and Amount of Gain or Loss Recognized in Income on Fair Value Hedging Relationships For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Interest Income (Expense) Other Gain (Loss) Interest Income (Expense) Other Gain (Loss) Interest Income (Expense) Other Gain (Loss) Interest Income (Expense) Other Gain (Loss) Total amounts of income and expense line items presented in the Consolidated Statements of Income in which the effects of fair value hedges are recorded $ — $ — $ — $ — $ (1 ) $ — $ — $ — The effects of fair value hedging: Gain (Loss) on fair value hedging relationships in subtopic 815-20: Interest contracts: Hedged items (126 ) — — — (101 ) — — — Derivative designated as hedging instruments 126 — — — 100 — — — As of September 30, 2018 , the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges: Line Item in the Balance Sheet in Which the Hedged Item is Included Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset (in thousands) Loans $ 7,754 $ (101 ) Derivatives Not Designated as Hedging Instruments Interest Rate Swaps -The Company enters into interest rate derivatives, including interest rate swaps with its customers, to allow them to hedge against the risk of rising interest rates by providing fixed rate loans. To economically hedge against the interest rate risks in the products offered to its customers, the Company enters into mirrored interest rate contracts with institutional counterparties, with one designated as a central counterparty. The following table represents the notional amounts and the gross fair values of interest rate derivative contracts outstanding as of September 30, 2018 and December 31, 2017 respectively. September 30, 2018 Customer Counterparties Financial Counterparties Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Swaps $ 6,920 $ 105 $ — $ 6,920 $ — $ 125 December 31, 2017 Customer Counterparties Financial Counterparties Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Swaps $ — $ — $ — $ — $ — $ — Credit Risk Participation Agreements -The Company may periodically enter into RPAs to manage the credit exposure on interest rate contracts associated with a syndicated loan. The Company may enter into protection purchased RPAs with institutional counterparties to decrease or increase its exposure to a borrower. Under the RPA, the Company will receive or make payment if a borrower defaults on the related interest rate contract. The Company manages its credit risk on RPAs by monitoring the creditworthiness of the borrowers and institutional counterparties, which is based on the normal credit review process. The notional amount of the RPAs reflects the Company’s pro-rata share of the derivative instrument. The following table represents the notional amounts and the gross fair values of RPAs purchased and sold outstanding as of September 30, 2018 and December 31, 2017 respectively. September 30, 2018 December 31, 2017 Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities RPAs - protection purchased $ 10,112 $ — $ 53 $ — $ — $ — The following table presents the net gains (losses) recognized on the consolidated statements of income related to the derivatives not designated as hedging instruments for the three and nine months ended September 30, 2018 and September 30, 2017 : Location in the Consolidated Statements of Income For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Interest rate swaps Other gain (loss) $ — $ — $ (20 ) $ — RPAs Other gain (loss) 147 — 147 — Total $ 147 $ — $ 127 $ — Offsetting of Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2018 and December 31, 2017 . The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets. Gross Amounts Not Offset in the Balance Sheet (in thousands) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Balance Sheet Net Amounts of Assets (Liabilities) presented in the Balance Sheet Financial Instruments Cash Collateral Received (Paid) Net Assets (Liabilities) As of September 30, 2018 Asset Derivatives $ 205 $ — $ 205 $ 100 $ — $ 105 Liability Derivatives (178 ) — (178 ) 100 — (78 ) As of December 31, 2017 Derivatives $ — $ — $ — $ — $ — $ — Liability Derivatives — — — — — — Credit-risk-related Contingent Features The Company has an unsecured federal funds line with its derivative counterparty.The Company has an agreement with its derivative counterparty that contains a provision under which if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has an agreement with its derivative counterparty that contains a provision under which the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of September 30, 2018 , the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $179,000 . As of September 30, 2018 , the Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has not posted any collateral related to these agreements. If the Company had breached any of these provisions at September 30, 2018 , it could have been required to settle its obligations under the agreements at their termination value of $179,000 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
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 nine months ended September 30, 2018 . The carrying amount of goodwill was $64.7 million at September 30, 2018 , the same as at December 31, 2017 . During the second quarter of 2018, the Company recognized a $125,000 customer list intangible due to the purchase of a registered investment adviser in the Denver, Colorado area. 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 nine months ended September 30, 2018 : (in thousands) Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Finite-Lived Trade Name Intangible Customer List Intangible Total September 30, 2018 Balance, beginning of period $ 148 $ 4,011 $ 7,040 $ 744 $ 103 $ 12,046 Finite-lived intangible assets acquired — — — — 125 125 Amortization expense (28 ) (1,600 ) — (143 ) (22 ) (1,793 ) Balance at end of period $ 120 $ 2,411 $ 7,040 $ 601 $ 206 $ 10,378 Gross carrying amount $ 1,320 $ 18,206 $ 7,040 $ 1,380 $ 455 $ 28,401 Accumulated amortization (1,200 ) (15,795 ) — (779 ) (249 ) (18,023 ) Net book value $ 120 $ 2,411 $ 7,040 $ 601 $ 206 $ 10,378 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2018 | |
Other Assets [Abstract] | |
Other Assets Disclosure [Text Block] | Other Assets The components of the Company’s other assets were as follows: (in thousands) September 30, 2018 December 31, 2017 Federal Home Loan Bank Stock $ 13,260 $ 11,324 Prepaid expenses 2,286 2,992 Mortgage servicing rights 2,711 2,316 Assets held for sale 895 — Federal & state income taxes receivable, current 322 3,120 Accounts receivable & other miscellaneous assets 7,841 3,009 $ 27,315 $ 22,761 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. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Short-term Debt [Abstract] | |
Short-term Debt [Text Block] | Short-Term Borrowings Short-term borrowings were as follows as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance Federal funds purchased 2.39 % $ 19,056 1.77 % $ 1,000 Securities sold under agreements to repurchase 0.97 68,922 0.71 96,229 Total 1.28 % $ 87,978 0.73 % $ 97,229 At September 30, 2018 and December 31, 2017 , the Company had no borrowings through the Federal Reserve Discount Window, while the borrowing capacity was $11.4 million as of September 30, 2018 and December 31, 2017 . As of September 30, 2018 and December 31, 2017 , the Bank had municipal securities pledged with a market value of $12.6 million and $12.8 million , respectively, to the Federal Reserve to secure potential borrowings. The Company also has various other unsecured federal funds agreements with correspondent banks as well as the FHLB. As of September 30, 2018 and December 31, 2017 , there were $19.1 million and $1.0 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 2018, and matures on April 30, 2019 . The Company had no balance outstanding under this agreement as of September 30, 2018 |
Junior Subordinated Notes Issue
Junior Subordinated Notes Issued to Capital Trusts | 9 Months Ended |
Sep. 30, 2018 | |
Junior Subordinated Notes [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | 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 issued by the Company); 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 September 30, 2018 and December 31, 2017 : Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 9/30/2018 September 30, 2018 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,716 Three-month LIBOR + 3.50% 5.83 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,685 Three-month LIBOR + 2.15% 4.52 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 3.92 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,865 Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 12/31/2017 December 31, 2017 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,674 Three-month LIBOR + 3.50% 5.09 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,655 Three-month LIBOR + 2.15% 3.82 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 3.18 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,793 (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. |
Federal Home Loan Bank Borrowin
Federal Home Loan Bank Borrowings and Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Long-term Debt, by Type, Current and Noncurrent [Abstract] | |
Long-term Debt [Text Block] | Long-Term Debt Federal Home Loan Bank borrowings and long-term debt were as follows as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance FHLB Borrowings 2.20 % $ 143,000 1.72 % $ 115,000 Note payable to unaffiliated bank 3.85 8,750 3.32 12,500 Total 2.30 % $ 151,750 1.88 % $ 127,500 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 4 “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 September 30, 2018 , $8.8 million |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Income tax expense for the three and nine months ended September 30, 2018 and 2017 was equal to or less than the amount computed by applying the maximum effective federal income tax rate of 21% and 35% , respectively, to the income before income taxes, because of the following items: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Income tax based on statutory rate $ 1,803 21.0 % $ 2,898 35.0 % $ 6,016 21.0 % $ 9,762 35.0 % Tax-exempt interest (468 ) (5.4 ) (808 ) (9.7 ) (1,459 ) (5.0 ) (2,389 ) (8.6 ) Bank-owned life insurance (84 ) (1.0 ) (121 ) (1.5 ) (257 ) (0.9 ) (346 ) (1.2 ) State income taxes, net of federal income tax benefit 445 5.2 366 4.4 1,540 5.4 1,214 4.4 Non-deductible acquisition expenses 124 1.4 — — 124 0.4 — — General business credits (22 ) (0.2 ) (405 ) (4.9 ) (62 ) (0.2 ) (445 ) (1.6 ) Other 8 — 8 0.1 19 — (193 ) (0.7 ) Total income tax expense $ 1,806 21.0 % $ 1,938 23.4 % $ 5,921 20.7 % $ 7,603 27.3 % |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, Nine Months Ended September 30, (dollars in thousands, except per share amounts) 2018 2017 2018 2017 Basic earnings per common share computation Numerator: Net income $ 6,778 $ 6,342 $ 22,727 $ 20,289 Denominator: Weighted average shares outstanding 12,221,107 12,218,528 12,220,673 11,977,579 Basic earnings per common share $ 0.55 $ 0.52 $ 1.86 $ 1.69 Diluted earnings per common share computation Numerator: Net income $ 6,778 $ 6,342 $ 22,727 $ 20,289 Denominator: Weighted average shares outstanding, including all dilutive potential shares 12,239,864 12,238,991 12,237,462 11,999,608 Diluted earnings per common share $ 0.55 $ 0.52 $ 1.86 $ 1.69 |
Estimated Fair Value of Financi
Estimated Fair Value of Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: 1) an unrelated party; 2) knowledgeable (having a reasonable understanding about the asset or liability and the transaction based on all available information; including information that might be obtained through due diligence efforts that are usual or customary); 3) able to transact; and 4) willing to transact (motivated but not forced or otherwise compelled to do so). The FASB states “valuation techniques that are appropriate in the circumstances and for which sufficient data are available shall be used to measure fair value.” The valuation techniques for measuring fair value are consistent with the three traditional approaches to value: the market approach, the income approach, and the cost or asset approach. In applying valuation techniques, the use of relevant inputs (both observable and unobservable) based on the facts and circumstances must be used. The FASB has defined a fair value hierarchy for these inputs which prioritizes the inputs into three broad levels: • Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. • Level 2 Inputs – Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. • Level 3 Inputs – Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that require significant management judgment or estimation, some of which may be internally developed. Unobservable inputs should be used only to the extent that relevant observable inputs are not available; this allows for situations where there is little, if any, market activity for the asset or liability at the measurement date. Unobservable inputs should reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. 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. The Company used the following methods and significant assumptions to estimate fair value: Investment Securities - The fair value for investment securities are determined by quoted market prices, if available (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 (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 (Level 2). 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. Loans Held for Sale - Loans held for sale are carried at the lower of cost or fair value, with fair value being based on binding contracts from third party investors (Level 2). The portfolio has historically consisted primarily of residential real estate loans. Loans, Net - The estimated fair value of loans, net, was performed using the income approach, with the market approach used for certain nonperforming loans, resulting in a Level 3 fair value classification. The application of the income approach establishes value by methods that discount or capitalize earnings and/or cash flow, by a discount or capitalization rate that reflects market rate of return expectations, market conditions, and the relative risk of the investment. Generally, this can be accomplished by the discounted cash flow method. For loans that exhibited some characteristics of performance and where it appears that the borrower may have adequate cash flows to service the loan, a discounted cash flow analysis was used. The discounted cash flow analysis was based on the contractual maturity of the loan and market indications of rates, prepayment speeds, defaults and credit risk. For loans with balloon or interest only payment structures, the repayment was extended by assuming a renewal period beyond the current contractual maturity date. For loans analyzed using the asset approach, the fair value was determined based on the estimated values of the underlying collateral. For impaired loans, the estimated net sales proceeds was used to determine the fair value of the loans when deemed appropriate. The implied sales proceeds value provides a better indication of value than the income stream as these loans are not performing or exhibit strong signs indicative of nonperformance. 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, based on appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans, and resulted in a Level 3 classification for inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. 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. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than every 18 months. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and the collateral underlying such loans, resulting in a Level 3 classification for inputs for determining fair value. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral dependent impaired loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Special Assets Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Interest Rate Swaps - Interest rate swaps are valued by the Company's swap dealers using cash flow valuation techniques with observable market data inputs. The fair values estimated by the Company's swap dealers use interest rates that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. The Company has entered into collateral agreements with its swap dealers which entitle it to receive collateral to cover market values on derivatives which are in asset position, thus a credit risk adjustment on interest rate swaps is not warranted. Credit Risk Participation Agreements — The Company enters into credit risk participation agreements (“RPAs”) with institutional counterparties, under which the Company assumes its pro-rata share of the credit exposure associated with a borrower’s performance related to interest rate derivative contracts. The fair value of RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure. Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities. Accordingly, RPAs fall within Level 2. The following table summarizes assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 . The assets and liabilities are segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurement at September 30, 2018 Using (in thousands) Fair Value 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 $ 5,519 $ — $ 5,519 $ — State and political subdivisions 115,136 — 115,136 — Mortgage-backed securities 51,896 — 51,896 — Collateralized mortgage obligations 170,877 — 170,877 — Corporate debt securities 64,338 — 64,338 — Total available for sale debt securities $ 407,766 $ — $ 407,766 $ — Derivatives: Interest rate swaps $ 205 $ — $ 205 $ — RPAs — — — — Total derivative assets $ 205 $ — $ 205 $ — Liabilities: Derivatives: Interest rate swaps $ 125 $ — $ 125 $ — RPAs 53 — 53 — Total derivative liabilities $ 178 $ — $ 178 $ — Fair Value Measurement at December 31, 2017 Using (in thousands) Fair Value 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 $ 15,626 $ — $ 15,626 $ — State and political subdivisions 141,839 — 141,839 — Mortgage-backed securities 48,497 — 48,497 — Collateralized mortgage obligations 168,196 — 168,196 — Corporate debt securities 71,166 — 71,166 — Total available for sale debt securities $ 445,324 $ — $ 445,324 $ — There were no transfers of assets between Level 3 and other levels of the fair value hierarchy during the three and nine months ended September 30, 2018 or the year ended December 31, 2017 . Changes in the fair value of available for sale debt securities are included in other comprehensive income, and changes in the fair value of equity securities are included in noninterest income. 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 September 30, 2018 and December 31, 2017 , as more fully described above. Fair Value Measurement at September 30, 2018 Using (in thousands) Fair Value 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 $ 8,362 $ — $ — $ 8,362 Other real estate owned $ 549 $ — $ — $ 549 Fair Value Measurement at December 31, 2017 Using (in thousands) Fair Value 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 $ 3,927 $ — $ — $ 3,927 Other real estate owned $ 2,010 $ — $ — $ 2,010 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 September 30, 2018 , categorized within Level 3 of the fair value hierarchy: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at September 30, 2018 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans $ 8,362 Modified appraised value Third party appraisal NM * - NM * NM * Appraisal discount NM * - NM * NM * Other real estate owned $ 549 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. Due to the adoption of ASU 2016-01 as of January 1, 2018, the estimated fair value amounts shown for December 31, 2017 are not comparable to those for September 30, 2018 , due to a change in the required methodology (“exit price” only) for determining current estimated fair value. The carrying amount and estimated fair value of financial instruments not carried at fair value, at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 (in thousands) Carrying Amount Estimated Fair Value Quoted Significant Other Significant Financial assets: Cash and cash equivalents $ 53,379 $ 53,379 $ 53,379 $ — $ — Investment securities: Equity securities 2,797 2,797 2,797 — — Debt securities available for sale 407,766 407,766 — 407,766 — Debt securities held to maturity 191,733 186,057 — 186,057 — Total investment securities 602,296 596,620 2,797 593,823 — Loans held for sale 1,124 1,145 — 1,145 — Loans held for investment, net 2,346,371 2,283,363 — — 2,283,363 Interest receivable 14,800 14,800 14,800 — — Federal Home Loan Bank stock 13,260 13,260 — 13,260 — Derivative assets 205 205 — 205 — Financial liabilities: Deposits: Non-interest bearing demand 458,576 458,576 458,576 — — Interest-bearing checking 1,236,922 1,236,922 1,236,922 — — Savings 211,591 211,591 211,591 — — Certificates of deposit under $100,000 348,099 342,998 — 342,998 — Certificates of deposit $100,000 and over 377,071 373,313 — 373,313 — Total deposits 2,632,259 2,623,400 1,907,089 716,311 — Federal funds purchased and securities sold under agreements to repurchase 87,978 87,978 87,978 — — Federal Home Loan Bank borrowings 143,000 141,110 — 141,110 — Junior subordinated notes issued to capital trusts 23,865 21,058 — 21,058 — Long-term debt 8,750 8,750 — 8,750 — Derivative liabilities 178 178 — 178 — December 31, 2017 (in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Markets for Significant Other Significant Financial assets: Cash and cash equivalents $ 50,972 $ 50,972 $ 50,972 $ — $ — Investment securities: Equity securities 2,336 2,336 2,336 — — Debt securities available for sale 445,324 445,324 — 445,324 — Debt securities held to maturity 195,619 194,343 — 194,343 — Total investment securities 643,279 642,003 2,336 639,667 — Loans held for sale 856 871 — — 871 Loans held for investment, net 2,258,636 2,256,726 — 2,256,726 — Interest receivable 14,732 14,732 14,732 — — Federal Home Loan Bank stock 11,324 11,324 — 11,324 — Financial liabilities: Deposits: Non-interest bearing demand 461,969 461,969 461,969 — — Interest-bearing checking 1,228,112 1,228,112 1,228,112 — — Savings 213,430 213,430 213,430 — — Certificates of deposit under $100,000 324,681 321,197 — 321,197 — Certificates of deposit $100,000 and over 377,127 374,685 — 374,685 — Total deposits 2,605,319 2,599,393 1,903,511 695,882 — Federal funds purchased and securities sold under agreements to repurchase 97,229 97,229 97,229 — — Federal Home Loan Bank borrowings 115,000 114,945 — 114,945 — Junior subordinated notes issued to capital trusts 23,793 19,702 — 19,702 — Long-term debt 12,500 12,500 — 12,500 — |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 2. “Effect of New Financial Accounting Standards,” the implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust and asset management fees, service charges on deposit accounts, sales of other real estate, and debit card interchange fees. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Trust and Asset Management Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time, and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, Exchange, and Other Service Charges Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Gains/Losses on Sales of OREO Gain or loss from the sale of OREO occurs when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. OREO sales for the nine months ended September 30, 2018 and September 30, 2017 were not financed by the Bank. Other Other noninterest income consists of other recurring revenue streams such as safe deposit box rental fees, and other miscellaneous revenue streams. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2018 and December 31, 2017 , the Company did not have any significant contract balances. Contract Acquisition Costs |
Operating Segments
Operating Segments | 9 Months Ended |
Sep. 30, 2018 | |
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, |
Proposed Merger (Notes)
Proposed Merger (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Proposed Merger On August 21, 2018, the Company entered into a merger agreement with ATBancorp, an Iowa corporation, pursuant to which ATBancorp will merge with and into the Company. In connection with the merger, American Trust & Savings Bank, an Iowa state chartered bank and wholly owned subsidiary of ATBancorp, and American Bank & Trust Wisconsin, a Wisconsin state chartered bank and wholly owned subsidiary of ATBancorp, will merge with and into MidWest One Bank, which will continue as the surviving bank. The merger agreement also provides that each of the outstanding shares of ATBancorp common stock will be converted into the right of ATBancorp shareholders to receive 117.5500 shares of Company common stock and $992.51 in cash. The corporate headquarters of the combined company will be in Iowa City, Iowa. The merger is anticipated to be completed in the first quarter of 2019. For further information, please refer to the Current Report on Form 8-K |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 , but prior to the date the consolidated financial statements were issued, that provided additional evidence about conditions that existed at September 30, 2018 have been recognized in the consolidated financial statements for the three and nine months ended September 30, 2018 . Events or transactions that provided evidence about conditions that did not exist at September 30, 2018 , but arose before the consolidated financial statements were issued, have not been recognized in the consolidated financial statements for the three and nine months ended September 30, 2018 . On October 16, 2018 , the Board of Directors of the Company approved a new share repurchase program, allowing for the repurchase of up to $5.0 million of common stock through December 31, 2020 . The new repurchase program replaces the Company's prior repurchase program, pursuant to which the Company had repurchased 33,998 shares of common stock for approximately $1.1 million since the plan was announced in July 2016. The prior program had authorized the repurchase of $5.0 million of stock and was due to expire on December 31, 2018. On October 16, 2018 , the board of directors of the Company declared a cash dividend of $0.195 per share payable on December 15, 2018 to shareholders of record as of the close of business on December 1, 2018 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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. |
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.” |
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). • |
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. |
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company does not use derivatives for trading or speculative purposes. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: 1) an unrelated party; 2) knowledgeable (having a reasonable understanding about the asset or liability and the transaction based on all available information; including information that might be obtained through due diligence efforts that are usual or customary); 3) able to transact; and 4) willing to transact (motivated but not forced or otherwise compelled to do so). The FASB states “valuation techniques that are appropriate in the circumstances and for which sufficient data are available shall be used to measure fair value.” The valuation techniques for measuring fair value are consistent with the three traditional approaches to value: the market approach, the income approach, and the cost or asset approach. In applying valuation techniques, the use of relevant inputs (both observable and unobservable) based on the facts and circumstances must be used. The FASB has defined a fair value hierarchy for these inputs which prioritizes the inputs into three broad levels: • Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. • Level 2 Inputs – Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. • Level 3 Inputs – Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that require significant management judgment or estimation, some of which may be internally developed. Unobservable inputs should be used only to the extent that relevant observable inputs are not available; this allows for situations where there is little, if any, market activity for the asset or liability at the measurement date. Unobservable inputs should reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. |
Fair Value Measurement, Policy [Policy Text Block] | The Company used the following methods and significant assumptions to estimate fair value: Investment Securities - The fair value for investment securities are determined by quoted market prices, if available (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 (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 (Level 2). 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. Loans Held for Sale - Loans held for sale are carried at the lower of cost or fair value, with fair value being based on binding contracts from third party investors (Level 2). The portfolio has historically consisted primarily of residential real estate loans. Loans, Net - The estimated fair value of loans, net, was performed using the income approach, with the market approach used for certain nonperforming loans, resulting in a Level 3 fair value classification. The application of the income approach establishes value by methods that discount or capitalize earnings and/or cash flow, by a discount or capitalization rate that reflects market rate of return expectations, market conditions, and the relative risk of the investment. Generally, this can be accomplished by the discounted cash flow method. For loans that exhibited some characteristics of performance and where it appears that the borrower may have adequate cash flows to service the loan, a discounted cash flow analysis was used. The discounted cash flow analysis was based on the contractual maturity of the loan and market indications of rates, prepayment speeds, defaults and credit risk. For loans with balloon or interest only payment structures, the repayment was extended by assuming a renewal period beyond the current contractual maturity date. For loans analyzed using the asset approach, the fair value was determined based on the estimated values of the underlying collateral. For impaired loans, the estimated net sales proceeds was used to determine the fair value of the loans when deemed appropriate. The implied sales proceeds value provides a better indication of value than the income stream as these loans are not performing or exhibit strong signs indicative of nonperformance. 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, based on appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans, and resulted in a Level 3 classification for inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and management’s expertise and knowledge of the client and the client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. 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. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than every 18 months. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and the collateral underlying such loans, resulting in a Level 3 classification for inputs for determining fair value. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral dependent impaired loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Special Assets Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Interest Rate Swaps |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The amortized cost and fair value of debt securities available for sale, with gross unrealized gains and losses, were as follows: As of September 30, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government agencies and corporations $ 5,561 $ — $ 42 $ 5,519 State and political subdivisions 115,251 716 831 115,136 Mortgage-backed securities 53,664 112 1,880 51,896 Collateralized mortgage obligations 179,748 3 8,874 170,877 Corporate debt securities 65,842 8 1,512 64,338 Total $ 420,066 $ 839 $ 13,139 $ 407,766 As of December 31, 2017 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government agencies and corporations $ 15,716 $ — $ 90 $ 15,626 State and political subdivisions 139,561 2,475 197 141,839 Mortgage-backed securities 48,744 181 428 48,497 Collateralized mortgage obligations 173,339 29 5,172 168,196 Corporate debt securities 71,562 31 427 71,166 Total $ 448,922 $ 2,716 $ 6,314 $ 445,324 |
Debt Securities, Held-to-maturity [Table Text Block] | The amortized cost and fair value of debt securities held to maturity, with gross unrealized gains and losses, were as follows: As of September 30, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value State and political subdivisions $ 125,783 $ 155 $ 3,743 $ 122,195 Mortgage-backed securities 11,467 1 564 10,904 Collateralized mortgage obligations 19,373 — 1,104 18,269 Corporate debt securities 35,110 98 519 34,689 Total $ 191,733 $ 254 $ 5,930 $ 186,057 As of December 31, 2017 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government agencies and corporations $ 10,049 $ — $ — $ 10,049 State and political subdivisions 126,413 804 1,631 125,586 Mortgage-backed securities 1,906 4 13 1,897 Collateralized mortgage obligations 22,115 — 707 21,408 Corporate debt securities 35,136 548 281 35,403 Total $ 195,619 $ 1,356 $ 2,632 $ 194,343 |
Schedule of Temporary Impairment Losses, Investments [Table Text Block] | The following tables present information pertaining to securities with gross unrealized losses as of September 30, 2018 and December 31, 2017 , aggregated by investment category and length of time that individual securities have been in a continuous loss position: As of September 30, 2018 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) U.S. Government agencies and corporations 2 $ 539 $ 14 $ 4,980 $ 28 $ 5,519 $ 42 State and political subdivisions 115 46,374 697 5,350 134 51,724 831 Mortgage-backed securities 26 40,039 1,613 7,591 267 47,630 1,880 Collateralized mortgage obligations 41 44,912 1,269 116,814 7,605 161,726 8,874 Corporate debt securities 12 50,439 1,149 12,230 363 62,669 1,512 Total 196 $ 182,303 $ 4,742 $ 146,965 $ 8,397 $ 329,268 $ 13,139 As of December 31, 2017 Number of Securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) U.S. Government agencies and corporations 3 $ 15,626 $ 90 $ — $ — $ 15,626 $ 90 State and political subdivisions 34 11,705 167 1,800 30 13,505 197 Mortgage-backed securities 20 37,964 359 3,961 69 41,925 428 Collateralized mortgage obligations 35 37,881 489 122,757 4,683 160,638 5,172 Corporate debt securities 12 55,340 298 8,778 129 64,118 427 Other equity securities 1 — — 1,944 56 1,944 56 Total 105 $ 158,516 $ 1,403 $ 139,240 $ 4,967 $ 297,756 $ 6,370 As of September 30, 2018 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 257 $ 54,969 $ 1,271 $ 33,512 $ 2,472 $ 88,481 $ 3,743 Mortgage-backed securities 6 10,016 524 820 40 10,836 564 Collateralized mortgage obligations 7 — — 18,259 1,104 18,259 1,104 Corporate debt securities 13 18,126 345 2,722 174 20,848 519 Total 283 $ 83,111 $ 2,140 $ 55,313 $ 3,790 $ 138,424 $ 5,930 As of December 31, 2017 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 167 $ 33,237 $ 393 $ 25,843 $ 1,238 $ 59,080 $ 1,631 Mortgage-backed securities 4 349 2 887 11 1,236 13 Collateralized mortgage obligations 7 5,221 90 16,168 617 21,389 707 Corporate debt securities 3 3,093 4 2,617 277 5,710 281 Total 181 $ 41,900 $ 489 $ 45,515 $ 2,143 $ 87,415 $ 2,632 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The contractual maturity distribution of investment debt securities at September 30, 2018 , is summarized as follows: Available For Sale Held to Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 27,913 $ 27,866 $ 734 $ 736 Due after one year through five years 99,630 98,105 24,275 23,867 Due after five years through ten years 55,757 55,700 97,511 95,353 Due after ten years 3,354 3,322 38,373 36,928 Debt securities without a single maturity date 233,412 222,773 30,840 29,173 Total $ 420,066 $ 407,766 $ 191,733 $ 186,057 |
Realized Gain (Loss) on Investments [Table Text Block] | Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. Realized gains (losses) on investments due to sale or call, including impairment losses for the three and nine months ended September 30, 2018 and 2017 , were as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Debt securities available for sale: Gross realized gains $ 194 $ 179 203 199 Gross realized losses (2 ) (3 ) (2 ) (3 ) Net realized gain $ 192 $ 176 $ 201 $ 196 Debt securities held to maturity: Gross realized gains $ — $ — $ — $ 43 Gross realized losses — — (4 ) — Net realized gain (loss) $ — $ — $ (4 ) $ 43 Total net realized gain on sale or call of debt securities $ 192 $ 176 $ 197 $ 239 The following tables present the net gains and losses on equity investments during the three and nine months ended September 30, 2018 , disaggregated into realized and unrealized gains and losses: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Net losses recognized $ (10 ) $ — $ (34 ) $ — Less: Net gains and losses recognized due to sales — — — — Unrealized losses on securities still held at the reporting date $ (10 ) $ — $ (34 ) $ — |
Loans Receivable and the Allo_2
Loans Receivable and the Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total September 30, 2018 Loans receivable Individually evaluated for impairment $ 6,711 $ 12,924 $ 17,375 $ 3,981 $ 8 $ 40,999 Collectively evaluated for impairment 96,496 510,357 1,223,311 450,246 38,788 2,319,198 Purchased credit impaired loans — 52 13,104 4,296 — 17,452 Total $ 103,207 $ 523,333 $ 1,253,790 $ 458,523 $ 38,796 $ 2,377,649 Allowance for loan losses: Individually evaluated for impairment $ 195 $ 3,059 $ 4,183 $ 143 $ — $ 7,580 Collectively evaluated for impairment 2,532 5,183 12,563 2,356 251 22,885 Purchased credit impaired loans — — 343 470 — 813 Total $ 2,727 $ 8,242 $ 17,089 $ 2,969 $ 251 $ 31,278 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total December 31, 2017 Loans receivable Individually evaluated for impairment $ 2,969 $ 9,734 $ 10,386 $ 3,722 $ — $ 26,811 Collectively evaluated for impairment 102,543 493,844 1,147,133 460,475 36,158 2,240,153 Purchased credit impaired loans — 46 14,452 5,233 — 19,731 Total $ 105,512 $ 503,624 $ 1,171,971 $ 469,430 $ 36,158 $ 2,286,695 Allowance for loan losses: Individually evaluated for impairment $ 140 $ 1,126 $ 2,157 $ 226 $ — $ 3,649 Collectively evaluated for impairment 2,650 7,392 11,144 2,182 244 23,612 Purchased credit impaired loans — — 336 462 — 798 Total $ 2,790 $ 8,518 $ 13,637 $ 2,870 $ 244 $ 28,059 |
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 September 30, 2018 and 2017 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total 2018 Beginning balance $ 2,656 $ 8,557 $ 16,341 $ 2,990 $ 256 $ 30,800 Charge-offs (365 ) (108 ) (17 ) — (327 ) (817 ) Recoveries 41 78 77 131 18 345 Provision 395 (285 ) 688 (152 ) 304 950 Ending balance $ 2,727 $ 8,242 $ 17,089 $ 2,969 $ 251 $ 31,278 2017 Beginning balance $ 2,666 $ 7,959 $ 9,013 $ 2,650 $ 222 $ 22,510 Charge-offs (318 ) (534 ) — (75 ) (51 ) (978 ) Recoveries 150 113 201 126 4 594 Provision 67 2,157 1,166 915 79 4,384 Ending balance $ 2,565 $ 9,695 $ 10,380 $ 3,616 $ 254 $ 26,510 Allowance for Loan Loss Activity For the Nine Months Ended September 30, 2018 and 2017 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total 2018 Beginning balance $ 2,790 $ 8,518 $ 13,637 $ 2,870 $ 244 $ 28,059 Charge-offs (633 ) (198 ) (281 ) (107 ) (365 ) (1,584 ) Recoveries 56 260 193 208 36 753 Provision 514 (338 ) 3,540 (2 ) 336 4,050 Ending balance $ 2,727 $ 8,242 $ 17,089 $ 2,969 $ 251 $ 31,278 2017 Beginning balance $ 2,003 $ 6,274 $ 9,860 $ 3,458 $ 255 $ 21,850 Charge-offs (1,202 ) (1,063 ) (106 ) (155 ) (211 ) (2,737 ) Recoveries 164 215 216 126 11 732 Provision 1,600 4,269 410 187 199 6,665 Ending balance $ 2,565 $ 9,695 $ 10,380 $ 3,616 $ 254 $ 26,510 |
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 September 30, 2018 2017 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) : Total — $ — $ — — $ — $ — Nine Months Ended September 30, 2018 2017 (dollars in thousands) 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 Troubled Debt Restructurings (1) : Commercial and industrial Extended maturity date — $ — $ — 6 $ 2,037 $ 2,083 Commercial real estate: Farmland Extended maturity date 1 86 86 2 176 176 Commercial real estate-other Extended maturity date — — — 1 968 968 Other — — — 1 10,546 10,923 Total 1 $ 86 $ 86 10 $ 13,727 $ 14,150 (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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (dollars in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Troubled Debt Restructurings (1) That Subsequently Defaulted: Commercial and industrial Extended maturity date — $ — — $ — — $ — 4 $ 1,504 Commercial real estate: Commercial real estate-other Extended maturity date — — — — — — 1 968 Total — $ — — $ — — $ — 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 September 30, 2018 and December 31, 2017 : (in thousands) Pass Special Mention/ Watch Substandard Doubtful Loss Total September 30, 2018 Agricultural $ 78,007 $ 17,266 $ 7,934 $ — $ — $ 103,207 Commercial and industrial 482,136 21,166 20,027 4 — 523,333 Commercial real estate: Construction and development 221,114 1,078 1,132 — — 223,324 Farmland 69,824 6,970 8,941 — — 85,735 Multifamily 124,092 1,391 1,180 — — 126,663 Commercial real estate-other 748,837 44,603 24,628 — — 818,068 Total commercial real estate 1,163,867 54,042 35,881 — — 1,253,790 Residential real estate: One- to four- family first liens 333,974 2,289 6,492 — — 342,755 One- to four- family junior liens 113,526 687 1,555 — — 115,768 Total residential real estate 447,500 2,976 8,047 — — 458,523 Consumer 38,621 148 — 27 — 38,796 Total $ 2,210,131 $ 95,598 $ 71,889 $ 31 $ — $ 2,377,649 (in thousands) Pass Special Mention/ Watch Substandard Doubtful Loss Total December 31, 2017 Agricultural $ 80,377 $ 21,989 $ 3,146 $ — $ — $ 105,512 Commercial and industrial 453,363 23,153 27,102 6 — 503,624 Commercial real estate: Construction and development 162,968 1,061 1,247 — — 165,276 Farmland 76,740 10,357 771 — — 87,868 Multifamily 131,507 2,498 501 — — 134,506 Commercial real estate-other 731,231 34,056 19,034 — — 784,321 Total commercial real estate 1,102,446 47,972 21,553 — — 1,171,971 Residential real estate: One- to four- family first liens 340,446 2,776 9,004 — — 352,226 One- to four- family junior liens 114,763 952 1,489 — — 117,204 Total residential real estate 455,209 3,728 10,493 — — 469,430 Consumer 36,059 — 68 31 — 36,158 Total $ 2,127,454 $ 96,842 $ 62,362 $ 37 $ — $ 2,286,695 |
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 September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Agricultural $ 5,161 $ 5,661 $ — $ 1,523 $ 2,023 $ — Commercial and industrial 3,796 3,990 — 7,588 7,963 — Commercial real estate: Construction and development 84 84 — 84 84 — Farmland 3,539 3,539 — 287 287 — Multifamily 821 821 — — — — Commercial real estate-other 6,290 6,800 — 5,746 6,251 — Total commercial real estate 10,734 11,244 — 6,117 6,622 — Residential real estate: One- to four- family first liens 2,677 2,737 — 2,449 2,482 — One- to four- family junior liens 344 345 — 26 26 — Total residential real estate 3,021 3,082 — 2,475 2,508 — Consumer 8 8 — — — — Total $ 22,720 $ 23,985 $ — $ 17,703 $ 19,116 $ — With an allowance recorded: Agricultural $ 1,550 $ 1,920 $ 195 $ 1,446 $ 1,446 $ 140 Commercial and industrial 9,128 9,258 3,059 2,146 2,177 1,126 Commercial real estate: Construction and development — — — — — — Farmland 2,123 2,123 662 — — — Multifamily — — — — — — Commercial real estate-other 4,518 12,184 3,521 4,269 11,536 2,157 Total commercial real estate 6,641 14,307 4,183 4,269 11,536 2,157 Residential real estate: One- to four- family first liens 960 960 143 979 979 185 One- to four- family junior liens — — — 268 268 41 Total residential real estate 960 960 143 1,247 1,247 226 Consumer — — — — — — Total $ 18,279 $ 26,445 $ 7,580 $ 9,108 $ 16,406 $ 3,649 Total: Agricultural $ 6,711 $ 7,581 $ 195 $ 2,969 $ 3,469 $ 140 Commercial and industrial 12,924 13,248 3,059 9,734 10,140 1,126 Commercial real estate: Construction and development 84 84 — 84 84 — Farmland 5,662 5,662 662 287 287 — Multifamily 821 821 — — — — Commercial real estate-other 10,808 18,984 3,521 10,015 17,787 2,157 Total commercial real estate 17,375 25,551 4,183 10,386 18,158 2,157 Residential real estate: One- to four- family first liens 3,637 3,697 143 3,428 3,461 185 One- to four- family junior liens 344 345 — 294 294 41 Total residential real estate 3,981 4,042 143 3,722 3,755 226 Consumer 8 8 — — — — Total $ 40,999 $ 50,430 $ 7,580 $ 26,811 $ 35,522 $ 3,649 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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Agricultural $ 4,864 $ 71 $ 881 $ 17 $ 3,480 $ 180 $ 674 $ 50 Commercial and industrial 3,961 36 2,878 77 3,563 150 2,899 124 Commercial real estate: Construction and development 84 — 423 — 84 — 434 2 Farmland 3,274 44 212 — 1,745 86 1,193 58 Multifamily 822 10 — — 618 30 — — Commercial real estate-other 6,326 77 2,148 18 5,428 201 1,894 63 Total commercial real estate 10,506 131 2,783 18 7,875 317 3,521 123 Residential real estate: One- to four- family first liens 2,578 34 2,183 23 1,942 53 2,197 69 One- to four- family junior liens 323 1 13 — 301 1 13 — Total residential real estate 2,901 35 2,196 23 2,243 54 2,210 69 Consumer 4 — — — 2 — — — Total $ 22,236 $ 273 $ 8,738 $ 135 $ 17,163 $ 701 $ 9,304 $ 366 With an allowance recorded: Agricultural $ 1,974 $ — $ 1,446 $ 11 $ 2,108 $ — $ 1,460 $ 33 Commercial and industrial 8,905 43 8,458 85 7,778 89 8,423 163 Commercial real estate: Construction and development — — 311 — — — 232 — Farmland 2,123 — — — 1,584 — — — Multifamily — — — — — — — — Commercial real estate-other 4,536 16 12,863 — 4,443 — 12,881 44 Total commercial real estate 6,659 16 13,174 — 6,027 — 13,113 44 Residential real estate: One- to four- family first liens 963 9 1,361 9 969 27 1,392 26 One- to four- family junior liens — — — — — — — — Total residential real estate 963 9 1,361 9 969 27 1,392 26 Consumer — — — — — — — — Total $ 18,501 $ 68 $ 24,439 $ 105 $ 16,882 $ 116 $ 24,388 $ 266 Total: Agricultural $ 6,838 $ 71 $ 2,327 $ 28 $ 5,588 $ 180 $ 2,134 $ 83 Commercial and industrial 12,866 79 11,336 162 11,341 239 11,322 287 Commercial real estate: Construction and development 84 — 734 — 84 — 666 2 Farmland 5,397 44 212 — 3,329 86 1,193 58 Multifamily 822 10 — — 618 30 — — Commercial real estate-other 10,862 93 15,011 18 9,871 201 14,775 107 Total commercial real estate 17,165 147 15,957 18 13,902 317 16,634 167 Residential real estate: One- to four- family first liens 3,541 43 3,544 32 2,911 80 3,589 95 One- to four- family junior liens 323 1 13 — 301 1 13 — Total residential real estate 3,864 44 3,557 32 3,212 81 3,602 95 Consumer 4 — — — 2 — — — Total $ 40,737 $ 341 $ 33,177 $ 240 $ 34,045 $ 817 $ 33,692 $ 632 |
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 September 30, 2018 and December 31, 2017 : (in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable September 30, 2018 Agricultural $ 72 $ 100 $ 230 $ 402 $ 102,805 $ 103,207 Commercial and industrial 1,206 315 6,701 8,222 515,111 523,333 Commercial real estate: Construction and development — 10 83 93 223,231 223,324 Farmland — — 141 141 85,594 85,735 Multifamily — — — — 126,663 126,663 Commercial real estate-other 4,198 101 3,814 8,113 809,955 818,068 Total commercial real estate 4,198 111 4,038 8,347 1,245,443 1,253,790 Residential real estate: One- to four- family first liens 3,381 313 965 4,659 338,096 342,755 One- to four- family junior liens 225 94 377 696 115,072 115,768 Total residential real estate 3,606 407 1,342 5,355 453,168 458,523 Consumer 138 3 31 172 38,624 38,796 Total $ 9,220 $ 936 $ 12,342 $ 22,498 $ 2,355,151 $ 2,377,649 Included in the totals above are the following purchased credit impaired loans $ — $ — $ — $ — $ 17,452 $ 17,452 December 31, 2017 Agricultural $ 95 $ 118 $ 168 $ 381 $ 105,131 $ 105,512 Commercial and industrial 1,434 1,336 1,576 4,346 499,278 503,624 Commercial real estate: Construction and development 57 97 82 236 165,040 165,276 Farmland 217 — 373 590 87,278 87,868 Multifamily — 25 — 25 134,481 134,506 Commercial real estate-other 74 — 1,852 1,926 782,395 784,321 Total commercial real estate 348 122 2,307 2,777 1,169,194 1,171,971 Residential real estate: One- to four- family first liens 3,854 756 1,019 5,629 346,597 352,226 One- to four- family junior liens 325 770 271 1,366 115,838 117,204 Total residential real estate 4,179 1,526 1,290 6,995 462,435 469,430 Consumer 79 15 29 123 36,035 36,158 Total $ 6,135 $ 3,117 $ 5,370 $ 14,622 $ 2,272,073 $ 2,286,695 Included in the totals above are the following purchased credit impaired loans $ 164 $ 756 $ 553 $ 1,473 $ 18,258 $ 19,731 |
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 September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (in thousands) Non-Accrual Loans Past Due 90 Days or More and Still Accruing Non-Accrual Loans Past Due 90 Days or More and Still Accruing Agricultural $ 662 $ — $ 168 $ — Commercial and industrial 11,208 — 7,124 — Commercial real estate: Construction and development 100 — 188 — Farmland 2,367 — 386 — Multifamily — — — — Commercial real estate-other 4,816 — 5,279 — Total commercial real estate 7,283 — 5,853 — Residential real estate: One- to four- family first liens 1,277 171 1,228 205 One- to four- family junior liens 413 — 346 2 Total residential real estate 1,690 171 1,574 207 Consumer 86 — 65 — Total $ 20,929 $ 171 $ 14,784 $ 207 |
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 nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Balance at beginning of period $ 311 $ 1,371 $ 840 $ 1,961 Accretion (223 ) (350 ) (873 ) (1,241 ) Reclassification (to) from nonaccretable difference (7 ) 63 114 364 Balance at end of period $ 81 $ 1,084 $ 81 $ 1,084 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The following table presents the total notional and gross fair value of the Company’s derivatives as of September 30, 2018 and December 31, 2017 . The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting agreements, as included in other assets and other liabilities, respectively, on the consolidated balance sheets. As of September 30, 2018 As of December 31, 2017 Fair Value Fair Value (in thousands) Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps $ 7,855 $ 100 $ — $ — $ — $ — Derivatives not designated as hedging instruments: Interest rate swaps $ 13,840 $ 105 $ 125 $ — $ — $ — Risk participation agreements (RPAs) 10,112 — 53 — — — Total derivatives not designated as hedging instruments $ 23,952 $ 105 $ 178 $ — $ — $ — |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The table below presents the effect of the Company’s derivative financial instruments designated as hedging instruments on the consolidated statements of income for the three and nine months ended September 30, 2018 and September 30, 2017 : Location and Amount of Gain or Loss Recognized in Income on Fair Value Hedging Relationships For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Interest Income (Expense) Other Gain (Loss) Interest Income (Expense) Other Gain (Loss) Interest Income (Expense) Other Gain (Loss) Interest Income (Expense) Other Gain (Loss) Total amounts of income and expense line items presented in the Consolidated Statements of Income in which the effects of fair value hedges are recorded $ — $ — $ — $ — $ (1 ) $ — $ — $ — The effects of fair value hedging: Gain (Loss) on fair value hedging relationships in subtopic 815-20: Interest contracts: Hedged items (126 ) — — — (101 ) — — — Derivative designated as hedging instruments 126 — — — 100 — — — |
Hedged Items In Fair Value Hedging Relationship [Table Text Block] | As of September 30, 2018 , the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges: Line Item in the Balance Sheet in Which the Hedged Item is Included Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset (in thousands) Loans $ 7,754 $ (101 ) |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Derivatives Not Designated as Hedging Instruments Interest Rate Swaps -The Company enters into interest rate derivatives, including interest rate swaps with its customers, to allow them to hedge against the risk of rising interest rates by providing fixed rate loans. To economically hedge against the interest rate risks in the products offered to its customers, the Company enters into mirrored interest rate contracts with institutional counterparties, with one designated as a central counterparty. The following table represents the notional amounts and the gross fair values of interest rate derivative contracts outstanding as of September 30, 2018 and December 31, 2017 respectively. September 30, 2018 Customer Counterparties Financial Counterparties Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Swaps $ 6,920 $ 105 $ — $ 6,920 $ — $ 125 December 31, 2017 Customer Counterparties Financial Counterparties Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Swaps $ — $ — $ — $ — $ — $ — Credit Risk Participation Agreements -The Company may periodically enter into RPAs to manage the credit exposure on interest rate contracts associated with a syndicated loan. The Company may enter into protection purchased RPAs with institutional counterparties to decrease or increase its exposure to a borrower. Under the RPA, the Company will receive or make payment if a borrower defaults on the related interest rate contract. The Company manages its credit risk on RPAs by monitoring the creditworthiness of the borrowers and institutional counterparties, which is based on the normal credit review process. The notional amount of the RPAs reflects the Company’s pro-rata share of the derivative instrument. The following table represents the notional amounts and the gross fair values of RPAs purchased and sold outstanding as of September 30, 2018 and December 31, 2017 respectively. September 30, 2018 December 31, 2017 Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities RPAs - protection purchased $ 10,112 $ — $ 53 $ — $ — $ — The following table presents the net gains (losses) recognized on the consolidated statements of income related to the derivatives not designated as hedging instruments for the three and nine months ended September 30, 2018 and September 30, 2017 : Location in the Consolidated Statements of Income For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2018 2017 2018 2017 Interest rate swaps Other gain (loss) $ — $ — $ (20 ) $ — RPAs Other gain (loss) 147 — 147 — Total $ 147 $ — $ 127 $ — |
Offsetting Derivative Assets And Liabilities [Table Text Block] | The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2018 and December 31, 2017 . The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets. Gross Amounts Not Offset in the Balance Sheet (in thousands) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the Balance Sheet Net Amounts of Assets (Liabilities) presented in the Balance Sheet Financial Instruments Cash Collateral Received (Paid) Net Assets (Liabilities) As of September 30, 2018 Asset Derivatives $ 205 $ — $ 205 $ 100 $ — $ 105 Liability Derivatives (178 ) — (178 ) 100 — (78 ) As of December 31, 2017 Derivatives $ — $ — $ — $ — $ — $ — Liability Derivatives — — — — — — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 nine months ended September 30, 2018 : (in thousands) Insurance Agency Intangible Core Deposit Intangible Indefinite-Lived Trade Name Intangible Finite-Lived Trade Name Intangible Customer List Intangible Total September 30, 2018 Balance, beginning of period $ 148 $ 4,011 $ 7,040 $ 744 $ 103 $ 12,046 Finite-lived intangible assets acquired — — — — 125 125 Amortization expense (28 ) (1,600 ) — (143 ) (22 ) (1,793 ) Balance at end of period $ 120 $ 2,411 $ 7,040 $ 601 $ 206 $ 10,378 Gross carrying amount $ 1,320 $ 18,206 $ 7,040 $ 1,380 $ 455 $ 28,401 Accumulated amortization (1,200 ) (15,795 ) — (779 ) (249 ) (18,023 ) Net book value $ 120 $ 2,411 $ 7,040 $ 601 $ 206 $ 10,378 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | The components of the Company’s other assets were as follows: (in thousands) September 30, 2018 December 31, 2017 Federal Home Loan Bank Stock $ 13,260 $ 11,324 Prepaid expenses 2,286 2,992 Mortgage servicing rights 2,711 2,316 Assets held for sale 895 — Federal & state income taxes receivable, current 322 3,120 Accounts receivable & other miscellaneous assets 7,841 3,009 $ 27,315 $ 22,761 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Short-term Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings were as follows as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance Federal funds purchased 2.39 % $ 19,056 1.77 % $ 1,000 Securities sold under agreements to repurchase 0.97 68,922 0.71 96,229 Total 1.28 % $ 87,978 0.73 % $ 97,229 |
Junior Subordinated Notes Iss_2
Junior Subordinated Notes Issued to Capital Trusts (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 : Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 9/30/2018 September 30, 2018 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,716 Three-month LIBOR + 3.50% 5.83 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,685 Three-month LIBOR + 2.15% 4.52 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 3.92 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,865 Face Value Book Value Interest Rate Interest Rate at Maturity Date Callable Date (in thousands) 12/31/2017 December 31, 2017 Central Bancshares Capital Trust II (1) (2) $ 7,217 $ 6,674 Three-month LIBOR + 3.50% 5.09 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I (1) (2) 2,062 1,655 Three-month LIBOR + 2.15% 3.82 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II (1) 15,464 15,464 Three-month LIBOR + 1.59% 3.18 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,793 (1) All distributions are cumulative and paid in cash quarterly. |
Federal Home Loan Bank Borrow_2
Federal Home Loan Bank Borrowings and Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Long-term Debt, by Type, Current and Noncurrent [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | ong-term debt were as follows as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 (in thousands) Weighted Average Cost Balance Weighted Average Cost Balance FHLB Borrowings 2.20 % $ 143,000 1.72 % $ 115,000 Note payable to unaffiliated bank 3.85 8,750 3.32 12,500 Total 2.30 % $ 151,750 1.88 % $ 127,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ncome tax expense for the three and nine months ended September 30, 2018 and 2017 was equal to or less than the amount computed by applying the maximum effective federal income tax rate of 21% and 35% , respectively, to the income before income taxes, because of the following items: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income Income tax based on statutory rate $ 1,803 21.0 % $ 2,898 35.0 % $ 6,016 21.0 % $ 9,762 35.0 % Tax-exempt interest (468 ) (5.4 ) (808 ) (9.7 ) (1,459 ) (5.0 ) (2,389 ) (8.6 ) Bank-owned life insurance (84 ) (1.0 ) (121 ) (1.5 ) (257 ) (0.9 ) (346 ) (1.2 ) State income taxes, net of federal income tax benefit 445 5.2 366 4.4 1,540 5.4 1,214 4.4 Non-deductible acquisition expenses 124 1.4 — — 124 0.4 — — General business credits (22 ) (0.2 ) (405 ) (4.9 ) (62 ) (0.2 ) (445 ) (1.6 ) Other 8 — 8 0.1 19 — (193 ) (0.7 ) Total income tax expense $ 1,806 21.0 % $ 1,938 23.4 % $ 5,921 20.7 % $ 7,603 27.3 % |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, Nine Months Ended September 30, (dollars in thousands, except per share amounts) 2018 2017 2018 2017 Basic earnings per common share computation Numerator: Net income $ 6,778 $ 6,342 $ 22,727 $ 20,289 Denominator: Weighted average shares outstanding 12,221,107 12,218,528 12,220,673 11,977,579 Basic earnings per common share $ 0.55 $ 0.52 $ 1.86 $ 1.69 Diluted earnings per common share computation Numerator: Net income $ 6,778 $ 6,342 $ 22,727 $ 20,289 Denominator: Weighted average shares outstanding, including all dilutive potential shares 12,239,864 12,238,991 12,237,462 11,999,608 Diluted earnings per common share $ 0.55 $ 0.52 $ 1.86 $ 1.69 |
Estimated Fair Value of Finan_2
Estimated Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 . The assets and liabilities are segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurement at September 30, 2018 Using (in thousands) Fair Value 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 $ 5,519 $ — $ 5,519 $ — State and political subdivisions 115,136 — 115,136 — Mortgage-backed securities 51,896 — 51,896 — Collateralized mortgage obligations 170,877 — 170,877 — Corporate debt securities 64,338 — 64,338 — Total available for sale debt securities $ 407,766 $ — $ 407,766 $ — Derivatives: Interest rate swaps $ 205 $ — $ 205 $ — RPAs — — — — Total derivative assets $ 205 $ — $ 205 $ — Liabilities: Derivatives: Interest rate swaps $ 125 $ — $ 125 $ — RPAs 53 — 53 — Total derivative liabilities $ 178 $ — $ 178 $ — Fair Value Measurement at December 31, 2017 Using (in thousands) Fair Value 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 $ 15,626 $ — $ 15,626 $ — State and political subdivisions 141,839 — 141,839 — Mortgage-backed securities 48,497 — 48,497 — Collateralized mortgage obligations 168,196 — 168,196 — Corporate debt securities 71,166 — 71,166 — Total available for sale debt securities $ 445,324 $ — $ 445,324 $ — |
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 September 30, 2018 and December 31, 2017 , as more fully described above. Fair Value Measurement at September 30, 2018 Using (in thousands) Fair Value 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 $ 8,362 $ — $ — $ 8,362 Other real estate owned $ 549 $ — $ — $ 549 Fair Value Measurement at December 31, 2017 Using (in thousands) Fair Value 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 $ 3,927 $ — $ — $ 3,927 Other real estate owned $ 2,010 $ — $ — $ 2,010 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Due to the adoption of ASU 2016-01 as of January 1, 2018, the estimated fair value amounts shown for December 31, 2017 are not comparable to those for September 30, 2018 , due to a change in the required methodology (“exit price” only) for determining current estimated fair value. The carrying amount and estimated fair value of financial instruments not carried at fair value, at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 (in thousands) Carrying Amount Estimated Fair Value Quoted Significant Other Significant Financial assets: Cash and cash equivalents $ 53,379 $ 53,379 $ 53,379 $ — $ — Investment securities: Equity securities 2,797 2,797 2,797 — — Debt securities available for sale 407,766 407,766 — 407,766 — Debt securities held to maturity 191,733 186,057 — 186,057 — Total investment securities 602,296 596,620 2,797 593,823 — Loans held for sale 1,124 1,145 — 1,145 — Loans held for investment, net 2,346,371 2,283,363 — — 2,283,363 Interest receivable 14,800 14,800 14,800 — — Federal Home Loan Bank stock 13,260 13,260 — 13,260 — Derivative assets 205 205 — 205 — Financial liabilities: Deposits: Non-interest bearing demand 458,576 458,576 458,576 — — Interest-bearing checking 1,236,922 1,236,922 1,236,922 — — Savings 211,591 211,591 211,591 — — Certificates of deposit under $100,000 348,099 342,998 — 342,998 — Certificates of deposit $100,000 and over 377,071 373,313 — 373,313 — Total deposits 2,632,259 2,623,400 1,907,089 716,311 — Federal funds purchased and securities sold under agreements to repurchase 87,978 87,978 87,978 — — Federal Home Loan Bank borrowings 143,000 141,110 — 141,110 — Junior subordinated notes issued to capital trusts 23,865 21,058 — 21,058 — Long-term debt 8,750 8,750 — 8,750 — Derivative liabilities 178 178 — 178 — December 31, 2017 (in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Markets for Significant Other Significant Financial assets: Cash and cash equivalents $ 50,972 $ 50,972 $ 50,972 $ — $ — Investment securities: Equity securities 2,336 2,336 2,336 — — Debt securities available for sale 445,324 445,324 — 445,324 — Debt securities held to maturity 195,619 194,343 — 194,343 — Total investment securities 643,279 642,003 2,336 639,667 — Loans held for sale 856 871 — — 871 Loans held for investment, net 2,258,636 2,256,726 — 2,256,726 — Interest receivable 14,732 14,732 14,732 — — Federal Home Loan Bank stock 11,324 11,324 — 11,324 — Financial liabilities: Deposits: Non-interest bearing demand 461,969 461,969 461,969 — — Interest-bearing checking 1,228,112 1,228,112 1,228,112 — — Savings 213,430 213,430 213,430 — — Certificates of deposit under $100,000 324,681 321,197 — 321,197 — Certificates of deposit $100,000 and over 377,127 374,685 — 374,685 — Total deposits 2,605,319 2,599,393 1,903,511 695,882 — Federal funds purchased and securities sold under agreements to repurchase 97,229 97,229 97,229 — — Federal Home Loan Bank borrowings 115,000 114,945 — 114,945 — Junior subordinated notes issued to capital trusts 23,793 19,702 — 19,702 — Long-term debt 12,500 12,500 — 12,500 — |
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 September 30, 2018 , categorized within Level 3 of the fair value hierarchy: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at September 30, 2018 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans $ 8,362 Modified appraised value Third party appraisal NM * - NM * NM * Appraisal discount NM * - NM * NM * Other real estate owned $ 549 Modified appraised value Third party appraisal NM * - NM * NM * Appraisal discount NM * - NM * NM * |
Principles of Consolidation a_2
Principles of Consolidation and Presentation Textual References (Details) - ATBancorp [Member] | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Cash to be paid per share | $ | $ 992.51 |
Common Stock | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Stock to be issued, exchange ratio | shares | 117.5500 |
Investment Securities Schedule
Investment Securities Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities | ||
Amortized cost basis | $ 420,066 | $ 448,922 |
Gross unrealized gains | 839 | 2,716 |
Gross unrealized losses | 13,139 | 6,314 |
Estimated fair value | 407,766 | 445,324 |
U.S. Government agencies and corporations | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 5,561 | 15,716 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 42 | 90 |
Estimated fair value | 5,519 | 15,626 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 115,251 | 139,561 |
Gross unrealized gains | 716 | 2,475 |
Gross unrealized losses | 831 | 197 |
Estimated fair value | 115,136 | 141,839 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 53,664 | 48,744 |
Gross unrealized gains | 112 | 181 |
Gross unrealized losses | 1,880 | 428 |
Estimated fair value | 51,896 | 48,497 |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 179,748 | 173,339 |
Gross unrealized gains | 3 | 29 |
Gross unrealized losses | 8,874 | 5,172 |
Estimated fair value | 170,877 | 168,196 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost basis | 65,842 | 71,562 |
Gross unrealized gains | 8 | 31 |
Gross unrealized losses | 1,512 | 427 |
Estimated fair value | $ 64,338 | $ 71,166 |
Investment Securities Schedul_2
Investment Securities Schedule of Held to Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | $ 191,733 | $ 195,619 |
Gross unrealized gains | 254 | 1,356 |
Gross unrealized losses | 5,930 | 2,632 |
Estimated fair value | 186,057 | 194,343 |
U.S. Government agencies and corporations | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 10,049 | |
Estimated fair value | 10,049 | |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 125,783 | 126,413 |
Gross unrealized gains | 155 | 804 |
Gross unrealized losses | 3,743 | 1,631 |
Estimated fair value | 122,195 | 125,586 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 11,467 | 1,906 |
Gross unrealized gains | 1 | 4 |
Gross unrealized losses | 564 | 13 |
Estimated fair value | 10,904 | 1,897 |
Collateralized mortgage obligations | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 19,373 | 22,115 |
Gross unrealized losses | 1,104 | 707 |
Estimated fair value | 18,269 | 21,408 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities, amortized cost | 35,110 | 35,136 |
Gross unrealized gains | 98 | 548 |
Gross unrealized losses | 519 | 281 |
Estimated fair value | $ 34,689 | $ 35,403 |
Investment Securities Available
Investment Securities Available for Sale Securities in Continuous Loss Position (Details) $ in Thousands | Sep. 30, 2018USD ($)count | Dec. 31, 2017USD ($)count |
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 196 | 105 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 182,303 | $ 158,516 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 4,742 | 1,403 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 146,965 | 139,240 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 8,397 | 4,967 |
Available for sale securities, continuous unrealized loss position, fair value | 329,268 | 297,756 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 13,139 | $ 6,370 |
U.S. Government agencies and corporations | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 2 | 3 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 539 | $ 15,626 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 14 | 90 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 4,980 | |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 28 | |
Available for sale securities, continuous unrealized loss position, fair value | 5,519 | 15,626 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 42 | $ 90 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 115 | 34 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 46,374 | $ 11,705 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 697 | 167 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 5,350 | 1,800 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 134 | 30 |
Available for sale securities, continuous unrealized loss position, fair value | 51,724 | 13,505 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 831 | $ 197 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 26 | 20 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 40,039 | $ 37,964 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 1,613 | 359 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 7,591 | 3,961 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 267 | 69 |
Available for sale securities, continuous unrealized loss position, fair value | 47,630 | 41,925 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 1,880 | $ 428 |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 41 | 35 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 44,912 | $ 37,881 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 1,269 | 489 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 116,814 | 122,757 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 7,605 | 4,683 |
Available for sale securities, continuous unrealized loss position, fair value | 161,726 | 160,638 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 8,874 | $ 5,172 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 12 | 12 |
Available for sale securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 50,439 | $ 55,340 |
Available for sale securities, continuous unrealized loss position, less than 12 months, Accumulated Loss | 1,149 | 298 |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | 12,230 | 8,778 |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 363 | 129 |
Available for sale securities, continuous unrealized loss position, fair value | 62,669 | 64,118 |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 1,512 | $ 427 |
Equity securities | ||
Schedule of Available-for-sale Securities | ||
Available for sale securities in unrealized loss positions, number of positions | count | 1 | |
Available for sale securities, continuous unrealized loss position, twelve months or longer, estimated fair value | $ 1,944 | |
Available for sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 56 | |
Available for sale securities, continuous unrealized loss position, fair value | 1,944 | |
Available for sale securities, continuous unrealized loss position, accumulated loss | $ 56 |
Investment Securities Held to M
Investment Securities Held to Maturity Securities in Continuous Loss Position (Details) $ in Thousands | Sep. 30, 2018USD ($)count | Dec. 31, 2017USD ($)count |
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 283 | 181 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 83,111 | $ 41,900 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 2,140 | 489 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 55,313 | 45,515 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 3,790 | 2,143 |
Held to maturity securities, continuous urealized loss position, fair value | 138,424 | 87,415 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 5,930 | $ 2,632 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 257 | 167 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 54,969 | $ 33,237 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 1,271 | 393 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 33,512 | 25,843 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 2,472 | 1,238 |
Held to maturity securities, continuous urealized loss position, fair value | 88,481 | 59,080 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 3,743 | $ 1,631 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 6 | 4 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 10,016 | $ 349 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 524 | 2 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 820 | 887 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 40 | 11 |
Held to maturity securities, continuous urealized loss position, fair value | 10,836 | 1,236 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 564 | $ 13 |
Collateralized mortgage obligations | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 7 | 7 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 5,221 | |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 90 | |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | $ 18,259 | 16,168 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 1,104 | 617 |
Held to maturity securities, continuous urealized loss position, fair value | 18,259 | 21,389 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 1,104 | $ 707 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities | ||
Held to maturity securities in unrealized loss positions, number of positions | count | 13 | 3 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, estimated fair value | $ 18,126 | $ 3,093 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 345 | 4 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 2,722 | 2,617 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 174 | 277 |
Held to maturity securities, continuous urealized loss position, fair value | 20,848 | 5,710 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 519 | $ 281 |
Investment Securities Investmen
Investment Securities Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in one year or less, amortized cost | $ 27,913 | |
Due after one year through five years, amortized cost | 99,630 | |
Due after five years through ten years, amortized cost | 55,757 | |
Due after ten years, amortized cost | 3,354 | |
Debt securities without a single maturity date, amortized cost | 233,412 | |
Total available for sale securities, debt securities, amortized cost | 420,066 | |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in one year or less, estimated fair value | 27,866 | |
Due after one year through five years, estimated fair value | 98,105 | |
Due after five years through ten years, estimated fair value | 55,700 | |
Due after ten years, estimated fair value | 3,322 | |
Debt securities without a single maturity date, estimated fair value | 222,773 | |
Total debt securities available for sale, estimated fair value | 407,766 | $ 445,324 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in one year or less, amortized cost | 734 | |
Due after one year through five years, amortized cost | 24,275 | |
Due after five years through ten years, amortized cost | 97,511 | |
Due after ten years, amortized cost | 38,373 | |
Debt securities without a single maturity date, amortized cost | 30,840 | |
Held to maturity securities, amortized cost | 191,733 | 195,619 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in one year or less, estimated fair value | 736 | |
Due after one year through five years, estimated fair value | 23,867 | |
Due after five years through ten years, estimated fair value | 95,353 | |
Due after ten years, estimated fair value | 36,928 | |
Debt securities without a single maturity date, estimated fair value | 29,173 | |
Fair value of debt securities held to maturity | $ 186,057 | $ 194,343 |
Investment Securities Realized
Investment Securities Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||||
Debt Securities, Realized Gain (Loss) | $ 192 | $ 176 | $ 197 | $ 239 |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||||
Equity Securities, FV-NI, Realized Gain (Loss) | (10) | (34) | ||
Gain (Loss) on Sale of Equity Investments | 0 | 0 | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | (10) | (34) | ||
Debt securities | ||||
Debt Securities, Available-for-sale [Abstract] | ||||
Gross realized gains | 194 | 179 | 203 | 199 |
Gross realized losses | (2) | (3) | (2) | (3) |
Available for sale securities, gross realized gain (loss) | 192 | 176 | 201 | 196 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||||
Gross realized gains | 0 | 0 | 0 | 43 |
Gross realized losses | 0 | 0 | (4) | 0 |
Held to maturity securities, gross realized gain (loss) | $ 0 | $ 0 | $ (4) | $ 43 |
Investment Securities Textual R
Investment Securities Textual References (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities | ||||
Pledged securities | $ 217,800 | $ 237,400 | ||
Equity securities | 2,797 | $ 2,336 | ||
Proceeds from sales of debt securities held to maturity | $ 1,200 | 0 | $ 1,153 | |
Other equity securities | Banks and Financial Service-Related Companies | ||||
Schedule of Available-for-sale Securities | ||||
Equity securities | 400 | |||
Community Reinvestment Act qualified investment | ||||
Schedule of Available-for-sale Securities | ||||
Equity securities | $ 2,400 | |||
Geographic Concentration Risk | Total Obligations of State and Political Subdivisions | State and political subdivisions | IOWA | ||||
Schedule of Available-for-sale Securities | ||||
Concentration risk, percentage | 53.00% | |||
Geographic Concentration Risk | Total Obligations of State and Political Subdivisions | State and political subdivisions | MINNESOTA | ||||
Schedule of Available-for-sale Securities | ||||
Concentration risk, percentage | 24.00% |
Loans Receivable and the Allo_3
Loans Receivable and the Allowance for Loan Losses Allowance for Loan Losses and Recorded Investment in Loan Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | $ 7,580 | $ 3,649 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 22,885 | 23,612 | ||||
Allowance for loan losses | 31,278 | $ 30,800 | 28,059 | $ 26,510 | $ 22,510 | $ 21,850 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 40,999 | 26,811 | ||||
Loans receivable, collectively evaluated for impairment | 2,319,198 | 2,240,153 | ||||
Loans receivable,purchased credit impaired | 19,731 | |||||
Loans and leases receivable, gross | 2,377,649 | 2,286,695 | ||||
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 | 813 | 798 | ||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 17,452 | |||||
Agricultural Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 195 | 140 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 2,532 | 2,650 | ||||
Allowance for loan losses | 2,727 | 2,656 | 2,790 | 2,565 | 2,666 | 2,003 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 6,711 | 2,969 | ||||
Loans receivable, collectively evaluated for impairment | 96,496 | 102,543 | ||||
Loans and leases receivable, gross | 103,207 | 105,512 | ||||
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 3,059 | 1,126 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 5,183 | 7,392 | ||||
Allowance for loan losses | 8,242 | 8,557 | 8,518 | 9,695 | 7,959 | 6,274 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 12,924 | 9,734 | ||||
Loans receivable, collectively evaluated for impairment | 510,357 | 493,844 | ||||
Loans and leases receivable, gross | 523,333 | 503,624 | ||||
Commercial Portfolio Segment | Receivables Acquired with Deteriorated Credit Quality | ||||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 52 | 46 | ||||
Commercial Real Estate Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 4,183 | 2,157 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 12,563 | 11,144 | ||||
Allowance for loan losses | 17,089 | 16,341 | 13,637 | 10,380 | 9,013 | 9,860 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 17,375 | 10,386 | ||||
Loans receivable, collectively evaluated for impairment | 1,223,311 | 1,147,133 | ||||
Loans and leases receivable, gross | 1,253,790 | 1,171,971 | ||||
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 | 343 | 336 | ||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 13,104 | 14,452 | ||||
Residential Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, individually evaluated for impairment | 143 | 226 | ||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 2,356 | 2,182 | ||||
Allowance for loan losses | 2,969 | 2,990 | 2,870 | 3,616 | 2,650 | 3,458 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 3,981 | 3,722 | ||||
Loans receivable, collectively evaluated for impairment | 450,246 | 460,475 | ||||
Loans and leases receivable, gross | 458,523 | 469,430 | ||||
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 | 470 | 462 | ||||
Financing Receivable [Abstract] | ||||||
Loans receivable,purchased credit impaired | 4,296 | 5,233 | ||||
Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans receivable, allowance for credit losses, collectively evaluated for impairment | 251 | 244 | ||||
Allowance for loan losses | 251 | $ 256 | 244 | $ 254 | $ 222 | $ 255 |
Financing Receivable [Abstract] | ||||||
Loans receivable, individually evaluated for impairment | 8 | |||||
Loans receivable, collectively evaluated for impairment | 38,788 | 36,158 | ||||
Loans and leases receivable, gross | $ 38,796 | $ 36,158 |
Loans Receivable and the Allo_4
Loans Receivable and the Allowance for Loan Losses Allowance for Loan Loss Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 30,800 | $ 22,510 | $ 28,059 | $ 21,850 |
Charge-offs | (817) | (978) | (1,584) | (2,737) |
Recoveries | 345 | 594 | 753 | 732 |
Provision | 950 | 4,384 | 4,050 | 6,665 |
Ending balance | 31,278 | 26,510 | 31,278 | 26,510 |
Agricultural Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 2,656 | 2,666 | 2,790 | 2,003 |
Charge-offs | (365) | (318) | (633) | (1,202) |
Recoveries | 41 | 150 | 56 | 164 |
Provision | 395 | 67 | 514 | 1,600 |
Ending balance | 2,727 | 2,565 | 2,727 | 2,565 |
Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 8,557 | 7,959 | 8,518 | 6,274 |
Charge-offs | (108) | (534) | (198) | (1,063) |
Recoveries | 78 | 113 | 260 | 215 |
Provision | (285) | 2,157 | (338) | 4,269 |
Ending balance | 8,242 | 9,695 | 8,242 | 9,695 |
Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 16,341 | 9,013 | 13,637 | 9,860 |
Charge-offs | (17) | (281) | (106) | |
Recoveries | 77 | 201 | 193 | 216 |
Provision | 688 | 1,166 | 3,540 | 410 |
Ending balance | 17,089 | 10,380 | 17,089 | 10,380 |
Residential Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 2,990 | 2,650 | 2,870 | 3,458 |
Charge-offs | (75) | (107) | (155) | |
Recoveries | 131 | 126 | 208 | 126 |
Provision | (152) | 915 | (2) | 187 |
Ending balance | 2,969 | 3,616 | 2,969 | 3,616 |
Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 256 | 222 | 244 | 255 |
Charge-offs | (327) | (51) | (365) | (211) |
Recoveries | 18 | 4 | 36 | 11 |
Provision | 304 | 79 | 336 | 199 |
Ending balance | $ 251 | $ 254 | $ 251 | $ 254 |
Loans Receivable and the Allo_5
Loans Receivable and the Allowance for Loan Losses New Troubled Debt Restructurings During Period (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018USD ($)count | Sep. 30, 2017USD ($)count | ||
Financing Receivable, Modifications | |||
Financing Receivable, Modifications, Number of Contracts | count | 1 | 10 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 86 | $ 13,727 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 86 | $ 14,150 | |
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 Portfolio Segment | Farmland Loan Financing Receivable | Extended Maturity | |||
Financing Receivable, Modifications | |||
Financing Receivable, Modifications, Number of Contracts | count | [1] | 1 | 2 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | [1] | $ 86 | $ 176 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | [1] | $ 86 | $ 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 Allo_6
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 | 9 Months Ended | |||
Sep. 30, 2018USD ($)count | Sep. 30, 2017USD ($)count | Sep. 30, 2018USD ($)count | Sep. 30, 2017USD ($)count | ||
Financing Receivable, Modifications | |||||
Financing receivable, modifications, subsequent default, number of contracts | count | 0 | 0 | 0 | 5 | |
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 0 | $ 0 | $ 0 | $ 2,472 | |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | Extended Maturity | |||||
Financing Receivable, Modifications | |||||
Financing receivable, modifications, subsequent default, number of contracts | count | [1] | 4 | |||
Financing receivable, modifications, subsequent default, recorded investment | $ | [1] | $ 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 | |||
Financing receivable, modifications, subsequent default, recorded investment | $ | [1] | $ 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 Allo_7
Loans Receivable and the Allowance for Loan Losses Loans by Internally Assigned Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment | ||
Loans receivable, net | $ 2,377,649 | $ 2,286,695 |
Purchased credit-impaired loans, internally classified as other than pass | 11,100 | 12,600 |
Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,210,131 | 2,127,454 |
Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 95,598 | 96,842 |
Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 71,889 | 62,362 |
Internally Assigned Grade Doubtful | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 31 | 37 |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 103,207 | 105,512 |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 78,007 | 80,377 |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 17,266 | 21,989 |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 7,934 | 3,146 |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 523,333 | 503,624 |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 482,136 | 453,363 |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 21,166 | 23,153 |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 20,027 | 27,102 |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | Internally Assigned Grade Doubtful | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 4 | 6 |
Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,253,790 | 1,171,971 |
Commercial Real Estate Portfolio Segment | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,163,867 | 1,102,446 |
Commercial Real Estate Portfolio Segment | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 54,042 | 47,972 |
Commercial Real Estate Portfolio Segment | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 35,881 | 21,553 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 223,324 | 165,276 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 221,114 | 162,968 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,078 | 1,061 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,132 | 1,247 |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 85,735 | 87,868 |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 69,824 | 76,740 |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 6,970 | 10,357 |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 8,941 | 771 |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 126,663 | 134,506 |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 124,092 | 131,507 |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,391 | 2,498 |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,180 | 501 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 818,068 | 784,321 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 748,837 | 731,231 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 44,603 | 34,056 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 24,628 | 19,034 |
Residential Portfolio Segment | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 458,523 | 469,430 |
Residential Portfolio Segment | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 447,500 | 455,209 |
Residential Portfolio Segment | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,976 | 3,728 |
Residential Portfolio Segment | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 8,047 | 10,493 |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 342,755 | 352,226 |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 333,974 | 340,446 |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 2,289 | 2,776 |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 6,492 | 9,004 |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 115,768 | 117,204 |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 113,526 | 114,763 |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 687 | 952 |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 1,555 | 1,489 |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 38,796 | 36,158 |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | Internally Assigned Grade Pass | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 38,621 | 36,059 |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | Internally Assigned Grade Special Mention Watch | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 148 | |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | Internally Assigned Grade Substandard | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | 68 | |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | Internally Assigned Grade Doubtful | ||
Financing Receivable, Recorded Investment | ||
Loans receivable, net | $ 27 | $ 31 |
Loans Receivable and the Allo_8
Loans Receivable and the Allowance for Loan Losses Amounts and Categories of Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | $ 22,720 | $ 22,720 | $ 17,703 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 23,985 | 23,985 | 19,116 | ||
Impaired financing receivable, with related allowance, recorded investment | 18,279 | 18,279 | 9,108 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 26,445 | 26,445 | 16,406 | ||
Impaired financing receivable, related allowance | 7,580 | 7,580 | 3,649 | ||
Impaired financing receivable, recorded investment | 40,999 | 40,999 | 26,811 | ||
Impaired financing receivable, unpaid principal balance | 50,430 | 50,430 | 35,522 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 22,236 | $ 8,738 | 17,163 | $ 9,304 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 273 | 135 | 701 | 366 | |
Impaired financing receivable, with related allowance, average recorded investment | 18,501 | 24,439 | 16,882 | 24,388 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 68 | 105 | 116 | 266 | |
Impaired financing receivable, average recorded investment | 40,737 | 33,177 | 34,045 | 33,692 | |
Impaired financing receivable, interest income, accrual method | 341 | 240 | 817 | 632 | |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 5,161 | 5,161 | 1,523 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 5,661 | 5,661 | 2,023 | ||
Impaired financing receivable, with related allowance, recorded investment | 1,550 | 1,550 | 1,446 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 1,920 | 1,920 | 1,446 | ||
Impaired financing receivable, related allowance | 195 | 195 | 140 | ||
Impaired financing receivable, recorded investment | 6,711 | 6,711 | 2,969 | ||
Impaired financing receivable, unpaid principal balance | 7,581 | 7,581 | 3,469 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 4,864 | 881 | 3,480 | 674 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 71 | 17 | 180 | 50 | |
Impaired financing receivable, with related allowance, average recorded investment | 1,974 | 1,446 | 2,108 | 1,460 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 11 | 33 | |||
Impaired financing receivable, average recorded investment | 6,838 | 2,327 | 5,588 | 2,134 | |
Impaired financing receivable, interest income, accrual method | 71 | 28 | 180 | 83 | |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 3,796 | 3,796 | 7,588 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 3,990 | 3,990 | 7,963 | ||
Impaired financing receivable, with related allowance, recorded investment | 9,128 | 9,128 | 2,146 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 9,258 | 9,258 | 2,177 | ||
Impaired financing receivable, related allowance | 3,059 | 3,059 | 1,126 | ||
Impaired financing receivable, recorded investment | 12,924 | 12,924 | 9,734 | ||
Impaired financing receivable, unpaid principal balance | 13,248 | 13,248 | 10,140 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 3,961 | 2,878 | 3,563 | 2,899 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 36 | 77 | 150 | 124 | |
Impaired financing receivable, with related allowance, average recorded investment | 8,905 | 8,458 | 7,778 | 8,423 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 43 | 85 | 89 | 163 | |
Impaired financing receivable, average recorded investment | 12,866 | 11,336 | 11,341 | 11,322 | |
Impaired financing receivable, interest income, accrual method | 79 | 162 | 239 | 287 | |
Commercial Real Estate Portfolio Segment | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 10,734 | 10,734 | 6,117 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 11,244 | 11,244 | 6,622 | ||
Impaired financing receivable, with related allowance, recorded investment | 6,641 | 6,641 | 4,269 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 14,307 | 14,307 | 11,536 | ||
Impaired financing receivable, related allowance | 4,183 | 4,183 | 2,157 | ||
Impaired financing receivable, recorded investment | 17,375 | 17,375 | 10,386 | ||
Impaired financing receivable, unpaid principal balance | 25,551 | 25,551 | 18,158 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 10,506 | 2,783 | 7,875 | 3,521 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 131 | 18 | 317 | 123 | |
Impaired financing receivable, with related allowance, average recorded investment | 6,659 | 13,174 | 6,027 | 13,113 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 16 | 44 | |||
Impaired financing receivable, average recorded investment | 17,165 | 15,957 | 13,902 | 16,634 | |
Impaired financing receivable, interest income, accrual method | 147 | 18 | 317 | 167 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 84 | 84 | 84 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 84 | 84 | 84 | ||
Impaired financing receivable, recorded investment | 84 | 84 | 84 | ||
Impaired financing receivable, unpaid principal balance | 84 | 84 | 84 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 84 | 423 | 84 | 434 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 2 | ||||
Impaired financing receivable, with related allowance, average recorded investment | 311 | 232 | |||
Impaired financing receivable, average recorded investment | 84 | 734 | 84 | 666 | |
Impaired financing receivable, interest income, accrual method | 2 | ||||
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 3,539 | 3,539 | 287 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 3,539 | 3,539 | 287 | ||
Impaired financing receivable, with related allowance, recorded investment | 2,123 | 2,123 | |||
Impaired financing receivable, with related allowance, unpaid principal balance | 2,123 | 2,123 | |||
Impaired financing receivable, related allowance | 662 | 662 | |||
Impaired financing receivable, recorded investment | 5,662 | 5,662 | 287 | ||
Impaired financing receivable, unpaid principal balance | 5,662 | 5,662 | 287 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 3,274 | 212 | 1,745 | 1,193 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 44 | 86 | 58 | ||
Impaired financing receivable, with related allowance, average recorded investment | 2,123 | 1,584 | |||
Impaired financing receivable, average recorded investment | 5,397 | 212 | 3,329 | 1,193 | |
Impaired financing receivable, interest income, accrual method | 44 | 86 | 58 | ||
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 821 | 821 | |||
Impaired financing receivable, with no related allowance, unpaid principal balance | 821 | 821 | |||
Impaired financing receivable, recorded investment | 821 | 821 | |||
Impaired financing receivable, unpaid principal balance | 821 | 821 | |||
Impaired financing receivable, with no related allowance, average recorded investment | 822 | 618 | |||
Impaired financing receivable, with no related allowance, interest income, accrual method | 10 | 30 | |||
Impaired financing receivable, average recorded investment | 822 | 618 | |||
Impaired financing receivable, interest income, accrual method | 10 | 30 | |||
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 6,290 | 6,290 | 5,746 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 6,800 | 6,800 | 6,251 | ||
Impaired financing receivable, with related allowance, recorded investment | 4,518 | 4,518 | 4,269 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 12,184 | 12,184 | 11,536 | ||
Impaired financing receivable, related allowance | 3,521 | 3,521 | 2,157 | ||
Impaired financing receivable, recorded investment | 10,808 | 10,808 | 10,015 | ||
Impaired financing receivable, unpaid principal balance | 18,984 | 18,984 | 17,787 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 6,326 | 2,148 | 5,428 | 1,894 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 77 | 18 | 201 | 63 | |
Impaired financing receivable, with related allowance, average recorded investment | 4,536 | 12,863 | 4,443 | 12,881 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 16 | 44 | |||
Impaired financing receivable, average recorded investment | 10,862 | 15,011 | 9,871 | 14,775 | |
Impaired financing receivable, interest income, accrual method | 93 | 18 | 201 | 107 | |
Residential Portfolio Segment | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 3,021 | 3,021 | 2,475 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 3,082 | 3,082 | 2,508 | ||
Impaired financing receivable, with related allowance, recorded investment | 960 | 960 | 1,247 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 960 | 960 | 1,247 | ||
Impaired financing receivable, related allowance | 143 | 143 | 226 | ||
Impaired financing receivable, recorded investment | 3,981 | 3,981 | 3,722 | ||
Impaired financing receivable, unpaid principal balance | 4,042 | 4,042 | 3,755 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 2,901 | 2,196 | 2,243 | 2,210 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 35 | 23 | 54 | 69 | |
Impaired financing receivable, with related allowance, average recorded investment | 963 | 1,361 | 969 | 1,392 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 9 | 9 | 27 | 26 | |
Impaired financing receivable, average recorded investment | 3,864 | 3,557 | 3,212 | 3,602 | |
Impaired financing receivable, interest income, accrual method | 44 | 32 | 81 | 95 | |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 2,677 | 2,677 | 2,449 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,737 | 2,737 | 2,482 | ||
Impaired financing receivable, with related allowance, recorded investment | 960 | 960 | 979 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 960 | 960 | 979 | ||
Impaired financing receivable, related allowance | 143 | 143 | 185 | ||
Impaired financing receivable, recorded investment | 3,637 | 3,637 | 3,428 | ||
Impaired financing receivable, unpaid principal balance | 3,697 | 3,697 | 3,461 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 2,578 | 2,183 | 1,942 | 2,197 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 34 | 23 | 53 | 69 | |
Impaired financing receivable, with related allowance, average recorded investment | 963 | 1,361 | 969 | 1,392 | |
Impaired financing receivable, with related allowance, interest income, accrual method | 9 | 9 | 27 | 26 | |
Impaired financing receivable, average recorded investment | 3,541 | 3,544 | 2,911 | 3,589 | |
Impaired financing receivable, interest income, accrual method | 43 | 32 | 80 | 95 | |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 344 | 344 | 26 | ||
Impaired financing receivable, with no related allowance, unpaid principal balance | 345 | 345 | 26 | ||
Impaired financing receivable, with related allowance, recorded investment | 268 | ||||
Impaired financing receivable, with related allowance, unpaid principal balance | 268 | ||||
Impaired financing receivable, related allowance | 41 | ||||
Impaired financing receivable, recorded investment | 344 | 344 | 294 | ||
Impaired financing receivable, unpaid principal balance | 345 | 345 | $ 294 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 323 | 13 | 301 | 13 | |
Impaired financing receivable, with no related allowance, interest income, accrual method | 1 | 1 | |||
Impaired financing receivable, average recorded investment | 323 | $ 13 | 301 | $ 13 | |
Impaired financing receivable, interest income, accrual method | 1 | 1 | |||
Consumer Portfolio Segment | Consumer Loan Financing Receivable | |||||
Financing Receivable, Impaired | |||||
Impaired financing receivable, with no related allowance, recorded investment | 8 | 8 | |||
Impaired financing receivable, with no related allowance, unpaid principal balance | 8 | 8 | |||
Impaired financing receivable, recorded investment | 8 | 8 | |||
Impaired financing receivable, unpaid principal balance | 8 | 8 | |||
Impaired financing receivable, with no related allowance, average recorded investment | 4 | 2 | |||
Impaired financing receivable, average recorded investment | $ 4 | $ 2 |
Loans Receivable and the Allo_9
Loans Receivable and the Allowance for Loan Losses Past Due Loan Aging (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | $ 22,498 | $ 14,622 |
Loans current | 2,355,151 | 2,272,073 |
Total Loans Receivable | 2,377,649 | 2,286,695 |
Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,473 | |
Loans current | 17,452 | 18,258 |
Total Loans Receivable | 17,452 | 19,731 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 9,220 | 6,135 |
Financing Receivables, 30 to 59 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 164 | |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 936 | 3,117 |
Financing Receivables, 60 to 89 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 756 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 12,342 | 5,370 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 553 | |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 402 | 381 |
Loans current | 102,805 | 105,131 |
Total Loans Receivable | 103,207 | 105,512 |
Agricultural Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 72 | 95 |
Agricultural Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 100 | 118 |
Agricultural Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 230 | 168 |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 8,222 | 4,346 |
Loans current | 515,111 | 499,278 |
Total Loans Receivable | 523,333 | 503,624 |
Commercial Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,206 | 1,434 |
Commercial Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 315 | 1,336 |
Commercial Portfolio Segment | 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 | 6,701 | 1,576 |
Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 8,347 | 2,777 |
Loans current | 1,245,443 | 1,169,194 |
Total Loans Receivable | 1,253,790 | 1,171,971 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 93 | 236 |
Loans current | 223,231 | 165,040 |
Total Loans Receivable | 223,324 | 165,276 |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 141 | 590 |
Loans current | 85,594 | 87,278 |
Total Loans Receivable | 85,735 | 87,868 |
Commercial Real Estate Portfolio Segment | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 25 | |
Loans current | 126,663 | 134,481 |
Total Loans Receivable | 126,663 | 134,506 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 8,113 | 1,926 |
Loans current | 809,955 | 782,395 |
Total Loans Receivable | 818,068 | 784,321 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 4,198 | 348 |
Commercial Real Estate Portfolio Segment | 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 | 57 | |
Commercial Real Estate Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 217 | |
Commercial Real Estate Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 4,198 | 74 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 111 | 122 |
Commercial Real Estate Portfolio Segment | 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 | 10 | 97 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | Multifamily Real Estate Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 25 | |
Commercial Real Estate Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 101 | |
Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 4,038 | 2,307 |
Commercial Real Estate Portfolio Segment | 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 | 83 | 82 |
Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 141 | 373 |
Commercial Real Estate Portfolio Segment | 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 | 3,814 | 1,852 |
Residential Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 5,355 | 6,995 |
Loans current | 453,168 | 462,435 |
Total Loans Receivable | 458,523 | 469,430 |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 4,659 | 5,629 |
Loans current | 338,096 | 346,597 |
Total Loans Receivable | 342,755 | 352,226 |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 696 | 1,366 |
Loans current | 115,072 | 115,838 |
Total Loans Receivable | 115,768 | 117,204 |
Residential Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 3,606 | 4,179 |
Residential Portfolio Segment | 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 | 3,381 | 3,854 |
Residential Portfolio Segment | 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 | 225 | 325 |
Residential Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 407 | 1,526 |
Residential Portfolio Segment | 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 | 313 | 756 |
Residential Portfolio Segment | 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 | 94 | 770 |
Residential Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 1,342 | 1,290 |
Residential Portfolio Segment | 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 | 965 | 1,019 |
Residential Portfolio Segment | 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 | 377 | 271 |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 172 | 123 |
Loans current | 38,624 | 36,035 |
Total Loans Receivable | 38,796 | 36,158 |
Consumer Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 138 | 79 |
Consumer Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | 3 | 15 |
Consumer Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans past due | $ 31 | $ 29 |
Loans Receivable and the All_10
Loans Receivable and the Allowance for Loan Losses Nonaccrual and 90+ Days Past Due and Still Accruing Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | $ 20,929 | $ 14,784 |
Loans 90 days past due and still accruing | 171 | 207 |
Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans, nonaccrual or 90 days past due and still accruing | 300 | 700 |
Loans, discount, nonaccrual or 90 days past due and still accruing | 0 | 100 |
Agricultural Portfolio Segment | Agricultural Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 662 | 168 |
Commercial Portfolio Segment | Commercial and Industrial Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 11,208 | 7,124 |
Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 7,283 | 5,853 |
Loans 90 days past due and still accruing | 0 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Construction and Development Loan Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 100 | 188 |
Commercial Real Estate Portfolio Segment | Farmland Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 2,367 | 386 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate Loan Other Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 4,816 | 5,279 |
Residential Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 1,690 | 1,574 |
Loans 90 days past due and still accruing | 171 | 207 |
Residential Portfolio Segment | Residential Real Estate First Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 1,277 | 1,228 |
Loans 90 days past due and still accruing | 171 | 205 |
Residential Portfolio Segment | Residential Real Estate Junior Lien Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | 413 | 346 |
Loans 90 days past due and still accruing | 2 | |
Consumer Portfolio Segment | Consumer Loan Financing Receivable | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans in nonaccrual status | $ 86 | $ 65 |
Loans Receivable and the All_11
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | ||||
Balance at beginning of period | $ 311 | $ 1,371 | $ 840 | $ 1,961 |
Accretion | (223) | (350) | (873) | (1,241) |
Reclassifications from nonaccretable difference | (7) | 63 | 114 | 364 |
Balance at end of period | $ 81 | $ 1,084 | $ 81 | $ 1,084 |
Loans Receivable and the All_12
Loans Receivable and the Allowance for Loan Losses Textual References (Details) $ in Millions | Sep. 30, 2018USD ($)quarters | Dec. 31, 2017USD ($) |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans pledged for Federal Home Loan Bank debt | $ 459.1 | $ 477.6 |
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 | |
Loans and leases receivable, impaired, commitment to lend | $ 0.1 | |
Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Purchased credit-impaired loans, outstanding balance | 18.3 | |
Purchased credit-impaired loans, discount | $ 0.9 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 23,952 | $ 0 |
Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 105 | 0 |
Not Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 178 | 0 |
Interest Rate Swap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 7,855 | 0 |
Interest Rate Swap | Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 100 | 0 |
Interest Rate Swap | Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 0 | 0 |
Interest Rate Swap | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 13,840 | 0 |
Interest Rate Swap | Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 105 | 0 |
Interest Rate Swap | Not Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 125 | 0 |
Risk Participation Agreement | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 10,112 | 0 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 53 | 0 |
Risk Participation Agreement | Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 0 |
Risk Participation Agreement | Not Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 53 | $ 0 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location (Details) - Designated as Hedging Instrument - Interest Rate Swap - Fair Value Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on fair value hedge ineffectiveness, net | $ 0 | $ 0 | $ (1) | $ 0 |
Hedged items | (126) | 0 | (101) | 0 |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 126 | 100 | 0 | |
Other Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on fair value hedge ineffectiveness, net | 0 | 0 | 0 | 0 |
Hedged items | 0 | 0 | 0 | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities Hedged Items in Fair Value Hedging Relationship (Details) - Hedged Item, Loans - Interest Rate Swap - Designated as Hedging Instrument - Fair Value Hedging $ in Thousands | Sep. 30, 2018USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Carrying amount of hedged assets | $ 7,754 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged asset | $ (101) |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities Interest Rate Swaps (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Customer Counterparties | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $ 6,920 | $ 0 |
Derivative assets, fair value | 105 | 0 |
Derivative liabilities, fair value | 0 | 0 |
Financial Counterparties | ||
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | 6,920 | 0 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | $ 125 | $ 0 |
Derivatives and Hedging Activ_9
Derivatives and Hedging Activities Credit Risk Participation Agreements (Details) - Not Designated as Hedging Instrument - Risk Participation Agreement - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative Asset, Notional Amount | $ 10,112 | $ 0 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | $ 53 | $ 0 |
Derivatives and Hedging Acti_10
Derivatives and Hedging Activities Textual References (Details) | Sep. 30, 2018USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivatives in a net liability position, including accrued interest | $ 179,000 |
Assets needed for immediate settlement, aggregate fair value | $ 179,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Changes in Carrying Amount of Non-Goodwill Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | $ 12,046 | ||||
Finite-lived intangible assets acquired | 125 | ||||
Amortization expense | $ (547) | $ (759) | (1,793) | $ (2,412) | |
Balance at end of period | 10,378 | 10,378 | |||
Gross carrying amount | $ 28,401 | ||||
Accumulated amortizations | (18,023) | ||||
Net book value | 10,378 | 10,378 | 10,378 | ||
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 | 148 | ||||
Finite-lived intangible assets acquired | 0 | ||||
Amortization expense | (28) | ||||
Balance at end of period | 120 | 120 | |||
Gross carrying amount | 1,320 | ||||
Accumulated amortizations | (1,200) | ||||
Net book value | 120 | 148 | 120 | ||
Core deposit intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 4,011 | ||||
Finite-lived intangible assets acquired | 0 | ||||
Amortization expense | (1,600) | ||||
Balance at end of period | 2,411 | 2,411 | |||
Gross carrying amount | 18,206 | ||||
Accumulated amortizations | (15,795) | ||||
Net book value | 2,411 | 4,011 | 2,411 | ||
Trade names intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 744 | ||||
Finite-lived intangible assets acquired | 0 | ||||
Amortization expense | (143) | ||||
Balance at end of period | 601 | 601 | |||
Gross carrying amount | 1,380 | ||||
Accumulated amortizations | (779) | ||||
Net book value | 601 | 744 | 601 | ||
Customer list intangible | |||||
Schedule of Intangible Assets [Line Items] | |||||
Balance, beginning of period | 103 | ||||
Finite-lived intangible assets acquired | 125 | ||||
Amortization expense | (22) | ||||
Balance at end of period | 206 | 206 | |||
Gross carrying amount | 455 | ||||
Accumulated amortizations | (249) | ||||
Net book value | $ 206 | $ 103 | $ 206 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Textual References (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
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 ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Assets [Abstract] | ||
Federal Home Loan Bank stock | $ 13,260 | $ 11,324 |
Prepaid expense | 2,286 | 2,992 |
Mortgage servicing rights | 2,711 | 2,316 |
Assets held for sale | 895 | 0 |
Federal & state income taxes receivable, current | 322 | 3,120 |
Accounts receivable & other miscellaneous assets | 7,841 | 3,009 |
Other assets | $ 27,315 | $ 22,761 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||
Weighted Average Cost | 1.28% | 0.73% |
Short-term debt | $ 87,978 | $ 97,229 |
Pledged securities | 217,800 | 237,400 |
Federal Reserve Bank advances | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | 0 |
Unsercured line of credit, maximum borrowing capacity | 11,400 | 11,536 |
Pledged securities | $ 12,600 | $ 12,800 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Weighted Average Cost | 2.39% | 1.77% |
Short-term debt | $ 19,056 | $ 1,000 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Weighted Average Cost | 0.97% | 0.71% |
Short-term debt | $ 68,922 | $ 96,229 |
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. 30, 2019 | |
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% |
Junior Subordinated Notes Iss_3
Junior Subordinated Notes Issued to Capital Trusts (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Junior subordinated notes issued to capital trusts, book value | $ 23,865 | $ 23,793 | |
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 | 23,865 | 23,793 | |
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] | $ 6,716 | $ 6,674 |
Interest rate | [1],[2] | 5.83% | 5.09% |
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 | [1],[2] | 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] | $ 1,685 | $ 1,655 |
Interest rate | [1],[2] | 4.52% | 3.82% |
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 | [1],[2] | 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] | 3.92% | 3.18% |
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] | 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. |
Federal Home Loan Bank Borrow_3
Federal Home Loan Bank Borrowings and Long-Term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2015 | Apr. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Long-term debt, excluding subordinated debt, weighted average interest rate | 2.30% | 1.88% | ||
Long-term debt, gross | $ 151,750 | $ 127,500 | ||
Federal Home Loan Bank Borrowings | ||||
Debt Instrument [Line Items] | ||||
Weighted average cost | 2.20% | 1.72% | ||
Long-term debt, gross | $ 143,000 | $ 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 | 3.85% | 3.32% | ||
Long-term debt, gross | $ 8,750 | $ 12,500 | ||
Debt instrument, issuance date | Apr. 30, 2015 | |||
Original note face amount | $ 35,000 | |||
Debt instrument, maturity date | Jun. 30, 2020 | |||
Long-term debt, amount advanced | $ 25,000 | |||
Debt instrument, frequency of periodic payment | quarterly | |||
Debt Instrument, Date of First Required Payment | Sep. 30, 2015 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Income tax based on statutory rate, amount | $ 1,803 | $ 2,898 | $ 6,016 | $ 9,762 |
Tax-exempt interest, amount | (468) | (808) | (1,459) | (2,389) |
Bank-owned life insurance, amount | (84) | (121) | (257) | (346) |
State income taxes, net of federal income tax benefit, amount | 445 | 366 | 1,540 | 1,214 |
Non-deductible acquisition expenses | 124 | 0 | 124 | 0 |
General business credits, amount | (22) | (405) | (62) | (445) |
Other, amount | 8 | 8 | 19 | (193) |
Total income tax expense, amount | $ 1,806 | $ 1,938 | $ 5,921 | $ 7,603 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Income tax based on statutory amount, percent | 21.00% | 35.00% | 21.00% | 35.00% |
Tax-exempt interest, percent | (5.40%) | (9.70%) | (5.00%) | (8.60%) |
Bank-owned life insurance, percent | (1.00%) | (1.50%) | (0.90%) | (1.20%) |
State income taxes, net of federal income tax benefit, percent | 5.20% | 4.40% | 5.40% | 4.40% |
Non-deductible acquisition expenses, percent | 1.40% | 0.00% | 0.40% | 0.00% |
General business credits, percent | (0.20%) | (4.90%) | (0.20%) | (1.60%) |
Other, percent | 0.00% | 0.10% | 0.00% | (0.70%) |
Total income tax provision, percent | 21.00% | 23.40% | 20.70% | 27.30% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 6,778 | $ 6,342 | $ 22,727 | $ 20,289 |
Average number of shares outstanding | 12,221,107 | 12,218,528 | 12,220,673 | 11,977,579 |
Earnings per common share - basic | $ 0.55 | $ 0.52 | $ 1.86 | $ 1.69 |
Diluted average number of shares | 12,239,864 | 12,238,991 | 12,237,462 | 11,999,608 |
Earnings per common share - diluted | $ 0.55 | $ 0.52 | $ 1.86 | $ 1.69 |
Estimated Fair Value of Finan_3
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value Financial Assets and Liabilities Measured on a Recurring Basis (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)count | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 407,766 | $ 445,324 |
Transfer of assets, fair value, to (from) Level 3, amount | 0 | 0 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | 0 | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 205 | |
Derivative liabilities, fair value | 178 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | 0 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 205 | |
Derivative liabilities, fair value | 178 | |
Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | 0 | |
Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 205 | |
Derivative liabilities, fair value | 178 | |
Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | 0 | |
U.S. Government agencies and corporations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 5,519 | 15,626 |
U.S. Government agencies and corporations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 5,519 | 15,626 |
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 | 5,519 | 15,626 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 115,136 | 141,839 |
State and political subdivisions | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 115,136 | 141,839 |
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 | 115,136 | 141,839 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 51,896 | 48,497 |
Mortgage-backed securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 51,896 | 48,497 |
Mortgage-backed securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 51,896 | 48,497 |
Collateralized mortgage obligations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 170,877 | 168,196 |
Collateralized mortgage obligations | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 170,877 | 168,196 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 64,338 | 71,166 |
Corporate debt securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 64,338 | 71,166 |
Corporate debt securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 64,338 | 71,166 |
Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Sample size used to validate pricing service results | count | 30 | |
Debt securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 407,766 | 445,324 |
Debt securities | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 407,766 | $ 445,324 |
Interest Rate Swap | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 205 | |
Derivative liabilities, fair value | 125 | |
Interest Rate Swap | Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | 0 | |
Interest Rate Swap | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 205 | |
Derivative liabilities, fair value | 125 | |
Interest Rate Swap | Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | 0 | |
Risk Participation Agreement | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | 53 | |
Risk Participation Agreement | Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | 0 | |
Risk Participation Agreement | Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | 53 | |
Risk Participation Agreement | Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets, fair value | 0 | |
Derivative liabilities, fair value | $ 0 |
Estimated Fair Value of Finan_4
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value Assets and Liabilities Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | $ 549 | $ 2,010 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 8,362 | 3,927 |
Other real estate owned | 549 | 2,010 |
Nonrecurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent impaired loans | 8,362 | 3,927 |
Other real estate owned | $ 549 | $ 2,010 |
Estimated Fair Value of Finan_5
Estimated Fair Value of Financial Instruments and Fair Value Measurements Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment securities: | ||
Equity securities | $ 2,797 | $ 2,336 |
Debt securities available for sale | 407,766 | 445,324 |
Debt securities held to maturity securities | 191,733 | 195,619 |
Debt securities held to maturity, estimated fair value | 186,057 | 194,343 |
Interest receivable | 14,800 | 14,732 |
Federal Home Loan Bank stock | 13,260 | 11,324 |
Deposits: | ||
Non-interest-bearing demand | 458,576 | 461,969 |
Interest-bearing checking | 1,236,922 | 1,228,112 |
Savings | 211,591 | 213,430 |
Reported Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | 53,379 | 50,972 |
Investment securities: | ||
Equity securities | 2,797 | 2,336 |
Debt securities available for sale | 407,766 | 445,324 |
Debt securities held to maturity securities | 191,733 | 195,619 |
Total investment securities | 602,296 | 643,279 |
Loans held for sale | 1,124 | 856 |
Loans held for investment, net | 2,346,371 | 2,258,636 |
Interest receivable | 14,800 | 14,732 |
Derivative assets, fair value | 205 | |
Deposits: | ||
Non-interest-bearing demand | 458,576 | 461,969 |
Interest-bearing checking | 1,236,922 | 1,228,112 |
Savings | 211,591 | 213,430 |
Certificates of deposit under $100,000 | 348,099 | 324,681 |
Certificates of deposit $100,000 and over | 377,071 | 377,127 |
Total deposits | 2,632,259 | 2,605,319 |
Federal funds purchased and securities sold under agreements to repurchase | 87,978 | 97,229 |
Federal Home Loan Bank borrowings | 143,000 | 115,000 |
Junior subordinated notes issued to capital trusts | 23,865 | 23,793 |
Long-term debt | 8,750 | 12,500 |
Derivative liabilities, fair value | 178 | |
Estimate of Fair Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | 53,379 | 50,972 |
Investment securities: | ||
Equity securities | 2,797 | 2,336 |
Debt securities available for sale | 407,766 | 445,324 |
Debt securities held to maturity, estimated fair value | 186,057 | 194,343 |
Total investment securities | 596,620 | 642,003 |
Loans held for sale | 1,145 | 871 |
Loans held for investment, net | 2,283,363 | 2,256,726 |
Interest receivable | 14,800 | 14,732 |
Federal Home Loan Bank stock | 13,260 | 11,324 |
Derivative assets, fair value | 205 | |
Deposits: | ||
Non-interest-bearing demand | 458,576 | 461,969 |
Interest-bearing checking | 1,236,922 | 1,228,112 |
Savings | 211,591 | 213,430 |
Certificates of deposit under $100,000 | 342,998 | 321,197 |
Certificates of deposit $100,000 and over | 373,313 | 374,685 |
Total deposits | 2,623,400 | 2,599,393 |
Federal funds purchased and securities sold under agreements to repurchase | 87,978 | 97,229 |
Federal Home Loan Bank borrowings | 141,110 | 114,945 |
Junior subordinated notes issued to capital trusts | 21,058 | 19,702 |
Long-term debt | 8,750 | 12,500 |
Derivative liabilities, fair value | 178 | |
Fair Value, Inputs, Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 53,379 | 50,972 |
Investment securities: | ||
Equity securities | 2,797 | 2,336 |
Total investment securities | 2,797 | 2,336 |
Interest receivable | 14,800 | 14,732 |
Derivative assets, fair value | 0 | |
Deposits: | ||
Non-interest-bearing demand | 458,576 | 461,969 |
Interest-bearing checking | 1,236,922 | 1,228,112 |
Savings | 211,591 | 213,430 |
Total deposits | 1,907,089 | 1,903,511 |
Federal funds purchased and securities sold under agreements to repurchase | 87,978 | 97,229 |
Derivative liabilities, fair value | 0 | |
Fair Value, Inputs, Level 2 | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Debt securities available for sale | 407,766 | 445,324 |
Debt securities held to maturity, estimated fair value | 186,057 | 194,343 |
Total investment securities | 593,823 | 639,667 |
Loans held for sale | 1,145 | |
Loans held for investment, net | 2,256,726 | |
Federal Home Loan Bank stock | 13,260 | 11,324 |
Derivative assets, fair value | 205 | |
Deposits: | ||
Certificates of deposit under $100,000 | 342,998 | 321,197 |
Certificates of deposit $100,000 and over | 373,313 | 374,685 |
Total deposits | 716,311 | 695,882 |
Federal Home Loan Bank borrowings | 141,110 | 114,945 |
Junior subordinated notes issued to capital trusts | 21,058 | 19,702 |
Long-term debt | 8,750 | 12,500 |
Derivative liabilities, fair value | 178 | |
Fair Value, Inputs, Level 3 | ||
Investment securities: | ||
Equity securities | 0 | 0 |
Loans held for sale | $ 871 | |
Loans held for investment, net | 2,283,363 | |
Derivative assets, fair value | 0 | |
Deposits: | ||
Derivative liabilities, fair value | $ 0 |
Proposed Merger (Details)
Proposed Merger (Details) - ATBancorp [Member] | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Business Acquisition [Line Items] | |
Cash to be paid per share | $ | $ 992.51 |
Common Stock | |
Business Acquisition [Line Items] | |
Stock to be issued, exchange ratio | shares | 117.5500 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions | Oct. 16, 2018USD ($)$ / shares |
October 16, 2018 Share Repurchase Program [Member] | Common Stock | |
Subsequent Event | |
Stock Repurchase Program, Authorized Amount | $ | $ 5 |
Common Stock | |
Subsequent Event | |
Dividends payable, amount per share | $ / shares | $ 0.195 |
Dividends payable, date to be paid | Dec. 15, 2018 |
Dividends payable, date of record | Dec. 1, 2018 |