Cover Page Cover Page
Cover Page Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 04, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35968 | ||
Entity Registrant Name | MIDWESTONE FINANCIAL GROUP, INC. | ||
Entity Incorporation, State or Country Code | IA | ||
Entity Tax Identification Number | 42-1206172 | ||
Entity Address, Address Line One | 102 South Clinton Street | ||
Entity Address, City or Town | Iowa City | ||
Entity Address, State or Province | IA | ||
Entity Address, Postal Zip Code | 52240 | ||
City Area Code | 319 | ||
Local Phone Number | 356-5800 | ||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Trading Symbol | MOFG | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 453.5 | ||
Entity Common Stock, Shares Outstanding | 16,146,376 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2020 Annual Meeting of Shareholders of MidWest One Financial Group, Inc. to be held on April 16, 2020 , to be filed within 120 days after December 31, 2019, are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent indicated in such part. | ||
Entity Central Index Key | 0001412665 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 67,174 | $ 43,787 |
Interest earning deposits in banks | 6,112 | 1,693 |
Federal funds sold | 198 | 0 |
Total cash and cash equivalents | 73,484 | 45,480 |
Debt securities available for sale at fair value | 785,977 | 414,101 |
Held to maturity securities at amortized cost (fair value of $0 and $192,564) | 0 | 195,822 |
Total securities held for investment | 785,977 | 609,923 |
Loans held for sale | 5,400 | 666 |
Gross loans held for investment | 3,469,236 | 2,405,001 |
Unearned income, net | (17,970) | (6,222) |
Loans held for investment, net of unearned income | 3,451,266 | 2,398,779 |
Allowance for loan losses | (29,079) | (29,307) |
Total loans held for investment, net | 3,422,187 | 2,369,472 |
Premises and equipment, net | 90,723 | |
Premises and equipment, net | 75,773 | |
Goodwill | 91,918 | 64,654 |
Other intangible assets, net | 32,218 | 9,875 |
Foreclosed assets, net | 3,706 | 535 |
Other assets | 147,960 | 115,102 |
Total assets | 4,653,573 | 3,291,480 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Noninterest bearing deposits | 662,209 | 439,133 |
Interest bearing deposits | 3,066,446 | 2,173,796 |
Total deposits | 3,728,655 | 2,612,929 |
Short-term borrowings | 139,349 | 131,422 |
Long-term debt | 231,660 | 168,726 |
Other liabilities | 44,927 | 21,336 |
Total liabilities | 4,144,591 | 2,934,413 |
Commitments and contingencies (Note 18) | ||
Shareholders' equity | ||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding | 0 | 0 |
Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 12,463,481; outstanding shares of 16,162,176 and 12,180,015 | 16,581 | 12,463 |
Additional paid-in capital | 297,390 | 187,813 |
Retained earnings | (201,105) | (168,951) |
Treasury stock at cost, 418,841 and 283,466 | (10,466) | (6,499) |
Accumulated other comprehensive income (loss) | 4,372 | (5,661) |
Total shareholders' equity | 508,982 | 357,067 |
Total liabilities and shareholders' equity | $ 4,653,573 | $ 3,291,480 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Debt securities held to maturity | $ 0 | $ 192,564 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 16,581,017 | 12,463,481 |
Common stock, shares outstanding (in shares) | 16,162,176 | 12,180,015 |
Treasury stock (in shares) | 418,841 | 283,466 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income | |||
Loans, including fees | $ 163,163 | $ 111,193 | $ 102,366 |
Taxable investment securities | 13,132 | 11,027 | 10,179 |
Tax-exempt investment securities | 5,696 | 5,827 | 6,239 |
Other | 450 | 62 | 142 |
Total interest income | 182,441 | 128,109 | 118,926 |
Interest expense | |||
Deposits | 29,927 | 17,331 | 11,489 |
Short-term borrowings | 1,847 | 1,315 | 424 |
Long-term debt | 7,017 | 4,195 | 3,232 |
Total interest expense | 38,791 | 22,841 | 15,145 |
Net interest income | 143,650 | 105,268 | 103,781 |
Provision for loan losses | 7,158 | 7,300 | 17,334 |
Net interest income after provision for loan losses | 136,492 | 97,968 | 86,447 |
Noninterest income | |||
Investment services and trust activities | 8,040 | 4,953 | 4,919 |
Service charges and fees | 7,452 | 6,157 | 6,533 |
Card revenue | 5,594 | 4,223 | 3,906 |
Loan revenue | 3,789 | 3,622 | 3,421 |
Bank-owned life insurance | 1,877 | 1,610 | 1,388 |
Insurance commissions | 734 | 1,284 | 1,270 |
Investment securities gains, net | 90 | 193 | 241 |
Other | 3,670 | 1,173 | 1,073 |
Total noninterest income | 31,246 | 23,215 | 22,751 |
Noninterest expense | |||
Compensation and employee benefits | 65,660 | 49,758 | 47,864 |
Occupancy expense of premises, net | 8,647 | 7,597 | 7,382 |
Equipment | 7,717 | 5,565 | 5,060 |
Legal and professional | 8,049 | 4,641 | 3,962 |
Data processing | 4,579 | 2,951 | 2,674 |
Marketing | 3,789 | 2,660 | 2,449 |
Amortization of intangibles | 5,906 | 2,296 | 3,125 |
FDIC insurance | 690 | 1,533 | 1,265 |
Communications | 1,701 | 1,353 | 1,333 |
Foreclosed assets, net | 580 | 21 | 184 |
Other | 10,217 | 4,840 | 4,825 |
Total noninterest expense | 117,535 | 83,215 | 80,123 |
Income before income tax expense | 50,203 | 37,968 | 29,075 |
Income tax expense | 6,573 | 7,617 | 10,376 |
Net income | $ 43,630 | $ 30,351 | $ 18,699 |
Earnings per share: | |||
Basic (in dollars per share) | $ 2.93 | $ 2.48 | $ 1.55 |
Diluted (in dollars per share) | $ 2.93 | $ 2.48 | $ 1.55 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 43,630 | $ 30,351 | $ 18,699 |
Other comprehensive income (loss), net of tax: | |||
Unrealized net holding gains (losses) on debt securities available for sale arising during the period | 13,663 | (3,865) | (1,470) |
Reclassification adjustment for net gains included in net income | (87) | (197) | (188) |
Income tax (expense) benefit | (3,543) | 1,060 | 654 |
Unrealized net gains (losses) on debt securities available for sale, net of reclassification adjustment | 10,033 | (3,002) | (1,004) |
Other comprehensive income (loss), net of tax | 10,033 | (3,002) | (1,004) |
Comprehensive income | $ 53,663 | $ 27,349 | $ 17,695 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Par Value | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | |
Beginning balance at Dec. 31, 2016 | $ 305,456 | $ 11,713 | $ 163,667 | $ 136,975 | $ (5,766) | $ (1,133) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of changes in accounting principles | [1] | 465 | (465) | ||||
Net income | 18,699 | 18,699 | |||||
Other comprehensive income (loss) | (1,004) | (1,004) | |||||
Issuance of common stock (750,000 shares), net of expenses of $1,328 | 24,360 | 750 | 23,610 | ||||
Stock options exercised | 100 | (83) | 183 | ||||
Release/lapse of restriction on RSUs | (114) | (576) | 462 | ||||
Share-based compensation | 868 | 868 | |||||
Dividends paid on common stock | (8,061) | (8,061) | |||||
Ending balance at Dec. 31, 2017 | 340,304 | 12,463 | 187,486 | 148,078 | (5,121) | (2,602) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of changes in accounting principles | [2] | 57 | (57) | ||||
Net income | 30,351 | 30,351 | |||||
Other comprehensive income (loss) | (3,002) | (3,002) | |||||
Stock options exercised | 136 | (68) | 204 | ||||
Release/lapse of restriction on RSUs | (88) | (635) | 547 | ||||
Repurchase of common stock | (2,129) | (2,129) | |||||
Share-based compensation | 1,030 | 1,030 | |||||
Dividends paid on common stock | (9,535) | (9,535) | |||||
Ending balance at Dec. 31, 2018 | 357,067 | 12,463 | 187,813 | 168,951 | (6,499) | (5,661) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 43,630 | 43,630 | |||||
Other comprehensive income (loss) | 10,033 | 10,033 | |||||
Issuance of common stock for acquisition of ATBancorp (4,117,536 shares), net of offering expenses of $323 and liquidity discount of $2,355 | 113,354 | 4,118 | 109,236 | ||||
Release/lapse of restriction on RSUs | (103) | (815) | 712 | ||||
Repurchase of common stock | (4,679) | (4,679) | |||||
Share-based compensation | 1,156 | 1,156 | |||||
Dividends paid on common stock | (11,476) | (11,476) | |||||
Ending balance at Dec. 31, 2019 | $ 508,982 | $ 16,581 | $ 297,390 | $ 201,105 | $ (10,466) | $ 4,372 | |
[1] | Reclassification pursuant to adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . See Note 1. Nature of Business and Significant Accounting Policies - Effect of New Financial Accounting Standards and Note 13. Income Taxes for additional information | ||||||
[2] | Reclassification due to adoption of ASU 2016-01, Financial Instruments-Overall, Recognition and Measurement of Financial Assets and Financial Liabilities . See Note 1. Nature of Business and Significant Accounting Policies - Effect of New Financial Accounting Standards for additional information |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parentheticals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends paid on common stock (in dollars per share) | $ 0.81 | $ 0.78 | $ 0.67 |
Par Value | |||
Issuance of common stock due to business combination (shares) | 4,117,536 | ||
Issuance of common stock (shares) | 750,000 | ||
Stock options exercised (shares) | 9,700 | 8,750 | |
Release/lapse of restriction on RSUs (shares) | 31,354 | 29,715 | 27,625 |
Repurchase of common stock (shares) | 166,729 | 76,128 | |
Additional Paid-in Capital | |||
Expenses incurred in stock issuance | $ 323,000 | $ 1,328,000 | |
Stock issued liquidity discount | $ 2,355 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||
Net income | $ 13,371 | $ 7,624 | $ 43,630 | $ 30,351 | $ 18,699 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for loan losses | 604 | 3,250 | 7,158 | 7,300 | 17,334 |
Depreciation, amortization, and accretion | 2,751 | 9,045 | 8,434 | ||
Net loss (gain) on sale of premises and equipment | 119 | (20) | (2) | ||
Stock-based compensation | 1,156 | 1,030 | 868 | ||
Net (gain) on sale or call of debt securities available for sale | (87) | (197) | (188) | ||
Net (gain) loss on call of debt securities held to maturity | (3) | 4 | (53) | ||
Net loss (gain) on sale of foreclosed assets, net | 87 | (241) | (28) | ||
Writedown of foreclosed assets | 170 | 22 | 58 | ||
Net gain on sale of loans held for sale | (2,297) | (1,725) | (1,794) | ||
Origination of loans held for sale | (115,694) | (66,180) | (87,579) | ||
Proceeds from sales of loans held for sale | (114,605) | (68,108) | (92,758) | ||
Gain on sale of assets of MidWestOne Insurance Services, Inc. | (1,076) | 0 | 0 | ||
Increase in cash surrender value of bank-owned life insurance | 1,877 | 1,610 | 1,388 | ||
Increase (decrease) in deferred income taxes, net | 2,708 | (676) | 744 | ||
Change in: | |||||
Other assets | 1,917 | (6,996) | (5,309) | ||
Other liabilities | (5,953) | 4,548 | (1,482) | ||
Net cash provided by operating activities | 47,314 | 42,763 | 41,072 | ||
Cash flows from investing activities: | |||||
Purchases of equity securities | (10) | (509) | 0 | ||
Proceeds from sales of debt securities available for sale | 125,452 | 14,490 | 22,538 | ||
Proceeds from maturities and calls of debt securities available for sale | 91,256 | 73,719 | 67,743 | ||
Purchases of debt securities available for sale | (289,733) | (61,512) | (62,849) | ||
Proceeds from sales of debt securities held to maturity | 1,381 | 0 | 1,153 | ||
Proceeds from maturities and calls of debt securities held to maturity | 7,008 | 5,509 | 15,477 | ||
Purchase of debt securities held to maturity | 0 | (6,008) | (44,024) | ||
Net decrease (increase) in loans, net of unearned income | 88,960 | ||||
Net decrease (increase) in loans, net of unearned income | (118,710) | (133,836) | |||
Purchases of premises and equipment | (2,186) | (5,568) | (4,988) | ||
Proceeds from sale of foreclosed assets | 2,071 | 2,268 | 1,216 | ||
Proceeds from sale of premises and equipment | 56 | 657 | 32 | ||
Proceeds from sale of assets held for sale | 0 | 895 | 0 | ||
Proceeds of principal and earnings from bank-owned life insurance | 0 | 452 | 0 | ||
Purchases of bank owned life insurance | 0 | 0 | (11,212) | ||
Proceeds from sale of assets of MidWestOne Insurance Services, Inc. | 1,175 | 0 | 0 | ||
Payments to acquire intangible assets | 0 | (125) | 0 | ||
Net cash acquired in business acquisition | 47,315 | 0 | 0 | ||
Net cash provided by (used in) investing activities | 72,745 | (94,442) | (148,750) | ||
Cash flows from financing activities: | |||||
Deposits | 25,723 | 7,610 | 124,871 | ||
Short-term borrowings | (92,834) | (20,642) | |||
Short-term borrowings | 34,193 | ||||
Long-term debt | (8,363) | 16,000 | (5,000) | ||
Proceeds from share-based award activity | 0 | 137 | 8 | ||
Taxes paid relating to net share settlement of equity awards | (103) | (89) | (114) | ||
Dividends paid | (11,476) | (9,535) | (8,061) | ||
Issuance of common stock | 0 | 0 | 25,688 | ||
Payment of stock issuance costs | (323) | 0 | (1,328) | ||
Repurchase of common stock | (4,679) | (2,129) | 0 | ||
Net cash provided by (used in) financing activities | (92,055) | 46,187 | 115,422 | ||
Net increase (decrease) in cash and cash equivalents | 28,004 | (5,492) | 7,744 | ||
Cash and cash equivalents: | |||||
Beginning of period | 45,480 | 50,972 | 43,228 | ||
Ending balance | 73,484 | 45,480 | 73,484 | 45,480 | 50,972 |
Supplemental disclosures of cash flow information: | |||||
Cash paid during the period for interest | 34,089 | 22,441 | 15,189 | ||
Cash paid during the period for income taxes | 7,269 | 6,245 | 13,199 | ||
Supplemental schedule of non-cash investing and financing activities: | |||||
Transfer of loans to foreclosed assets | 2,408 | 574 | 1,159 | ||
Transfer of premises and equipment to assets held for sale | 580 | 895 | 0 | ||
Transfer from debt securities held to maturity to available for sale | 186,447 | 0 | 0 | ||
Initial recognition of operating lease right of use assets | 4,499 | 0 | 4,499 | 0 | |
Initial recognition of operation lease liabilities | 5,430 | 5,430 | |||
Noncash assets acquired: | |||||
Goodwill | 91,918 | 64,654 | 91,918 | 64,654 | 64,654 |
Accounting Standards Update 2016-02 | |||||
Supplemental schedule of non-cash investing and financing activities: | |||||
Initial recognition of operating lease right of use assets | 2,892 | 2,892 | |||
Initial recognition of operation lease liabilities | 2,892 | 2,892 | |||
Accounting Standards Update 2018-02 | |||||
Supplemental schedule of non-cash investing and financing activities: | |||||
Transfer due to Tax Cuts and Jobs Act of 2017, reclassified from AOCI to Retained Earnings, tax effect | 0 | 0 | 465 | ||
Accounting Standards Update 2016-01 | |||||
Supplemental schedule of non-cash investing and financing activities: | |||||
Transfer due to adoption of ASU 2016-01, reclassified from AOCI to Retained Earnings. | 0 | 57 | 0 | ||
ATBancorp | |||||
Noncash assets acquired: | |||||
Debt securities available for sale | 99,056 | 0 | 99,056 | 0 | 0 |
Loans | 1,138,928 | 0 | 1,138,928 | 0 | 0 |
Premises and equipment | 18,327 | 0 | 18,327 | 0 | 0 |
Goodwill | 27,264 | 0 | 27,264 | 0 | 0 |
Bank-owned life insurance | 18,759 | 0 | 18,759 | 0 | 0 |
Foreclosed assets | 3,091 | 0 | 3,091 | 0 | 0 |
Other assets | 23,889 | 0 | 23,889 | 0 | 0 |
Total noncash assets acquired | 1,357,663 | ||||
Liabilities assumed: | |||||
Deposits | 1,089,355 | 0 | 1,089,355 | 0 | 0 |
Short-term borrowings | 100,761 | 0 | 100,761 | 0 | 0 |
FHLB borrowings | 42,770 | 0 | 42,770 | 0 | 0 |
Junior subordinated notes issued to capital trusts | 17,555 | 17,555 | |||
Subordinated debentures | 10,909 | 0 | 10,909 | 0 | 0 |
Other liabilities | 29,951 | 0 | 29,951 | 0 | 0 |
Total liabilities assumed | 1,291,301 | ||||
Core deposit intangible | ATBancorp | |||||
Noncash assets acquired: | |||||
Core deposit intangible | 23,539 | 0 | 23,539 | 0 | 0 |
Trust customer intangible | ATBancorp | |||||
Noncash assets acquired: | |||||
Core deposit intangible | $ 4,810 | $ 0 | $ 4,810 | $ 0 | $ 0 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies Nature of business : MidWest One Financial Group, Inc. (the “Company”), is a bank holding company registered under the Bank Holding Company Act of 1956, as amended, that has elected to be a financial holding company. It is headquartered in Iowa City, Iowa and owns all of the outstanding common stock of MidWest One Bank (the “Bank”), Iowa City, Iowa, and, until its dissolution in December 2019, all of the common stock of MidWest One Insurance Services, Inc., Oskaloosa, Iowa. The Bank is also headquartered in Iowa City, Iowa, and provides services to individuals, businesses, governmental units and institutional customers through a total of 57 banking offices in central and east-central Iowa, the Minneapolis/St. Paul metropolitan area in Minnesota, western Wisconsin, Naples and Fort Myers, Florida, and Denver, Colorado. Prior to the sale of its assets in June 2019, MidWest One Insurance Services, Inc. provided personal and business insurance services in Cedar Falls, Conrad, Melbourne, Oskaloosa, Parkersburg, and Pella, Iowa. The Bank is actively engaged in many areas of commercial banking, including: acceptance of demand, savings and time deposits; making commercial, real estate, agricultural and consumer loans, and other banking services tailored for its individual customers. The wealth management area of the Bank administers estates, personal trusts, and conservatorship accounts along with providing other management services to customers. On May 1, 2019, the Company acquired ATBancorp, a bank holding company whose wholly-owned banking subsidiaries were ATSB and ABTW. The primary reasons for the acquisition were to expand the Company’s business into new markets and grow the size of the Company’s business. As consideration for the merger, we issued 4,117,536 shares of our common stock with a value of $113.7 million and paid cash in the amount of $34.8 million . On June 30, 2019, the Company sold substantially all of the assets used by its wholly owned insurance subsidiary, MidWest One Insurance Services, Inc., to sell insurance products. The Company recognized a pre-tax gain of $1.1 million from the sale, which was reported in “Other” noninterest income on the Company’s consolidated statements of income. Effective December 31, 2019, MidWest One Insurance Services, Inc. was legally dissolved. Accounting estimates : The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates : The allowance for loan losses, fair value of assets acquired and liabilities assumed in a business combination, and the annual impairment testing of goodwill involve certain significant estimates made by management. These estimates are reviewed by management routinely, and it is reasonably possible that circumstances that exist may change in the near-term future and that the effect could be material to the consolidated financial statements. Principles of consolidation : The consolidated financial statements include the accounts of MidWest One Financial Group, Inc., a bank holding company, and its wholly-owned subsidiary MidWest One Bank, which is a state chartered bank whose primary federal regulator is the FDIC, and MidWest One Insurance Services, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. 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. Trust assets, other than cash deposits held by the Bank in a fiduciary or agency capacity for its customers, are not included in the accompanying consolidated financial statements because such accounts are not assets of the Bank. Presentation of cash flows : For purposes of reporting cash flows, cash and due from banks includes cash on hand, amounts due from banks, and federal funds sold. Cash flows from loans, deposits, short-term borrowings, and long-term debt are reported net. Cash receipts and cash payments resulting from originations and sales of loans held for sale are classified as operating cash flows on a gross basis in the consolidated statements of cash flows. The nature of the Company’s business requires that it maintain amounts due from banks that, at times, may exceed federally insured limits. In the opinion of management, no material risk of loss exists due to the various correspondent banks’ financial condition and the fact that they are well capitalized. Investment securities : Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. As of December 31, 2019, the Company held no debt securities classified as held to maturity. Debt securities not classified as held to maturity are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. The Company employs valuation techniques which utilize observable inputs when those inputs are available. These observable inputs reflect assumptions market participants would use in pricing the security, developed based on market data obtained from sources independent of the Company. When such information is not available, the Company employs valuation techniques which utilize unobservable inputs, or those which reflect the Company’s own assumptions about assumptions that market participants would use, based on the best information available in the circumstances. These valuation methods typically involve cash flow and other financial modeling techniques. Changes in underlying factors, assumptions, estimates, or other inputs to the valuation techniques could have a material impact on the Company’s future financial condition and results of operations. Fair value measurements are required to be classified as Level 1 (quoted prices), Level 2 (based on observable inputs) or Level 3 (based on unobservable inputs) discussed in more detail in Note 20 to the consolidated financial statements. Available for sale debt securities are recorded at fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity until realized. Purchase premiums and discounts are recognized in interest income using the interest method between the date of purchase and the first call date, or the maturity date of the security when there is no call date. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other than temporary impairment exists, management considers whether: (1) we have the intent to sell the security; (2) it is more likely than not that we will be required to sell the security before recovery of the amortized cost basis; and (3) we do not expect to recover the entire amortized cost basis of the security. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. During the quarter ended December 31, 2019, the Company transferred all of its investment securities classified as held to maturity to available for sale. See Note 3. Debt Securities for additional information. Loans : Loans are stated at the principal amount outstanding, net of purchase premiums, purchase discounts and net deferred loan fees. Net deferred loan fees include nonrefundable loan origination fees less direct loan origination costs. Net deferred loan fees, purchase premiums and purchase discounts are amortized into interest income using either the interest method or straight-line method over the terms of the loans, adjusted for actual prepayments. The interest method is used for all loans except revolving loans, for which the straight-line method is used. Interest on loans is credited to income as earned based on the principal amount outstanding. The accrual of interest on agricultural, commercial, commercial real estate, and consumer loan segments is discontinued at the time the loan is 90 days past due, and residential real estate loan segments at 120 days past due, unless the credit is well secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date, if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. 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. The risk characteristics of each loan portfolio segment are as follows: 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 : Purchased loans acquired in a business combination are recorded and initially measured at their estimated fair value as of the acquisition date. Credit discounts are included in the determination of fair value. An ALLL is not carried over. These purchased loans are segregated into two types: PCI loans and purchased non-credit impaired loans. • Purchased non-credit impaired loans are accounted for in accordance with ASC 310-20 “ Nonrefundable Fees and Other Costs ” as these loans do not have evidence of significant credit deterioration since origination and it is probable all contractually required payments will be received from the borrower. • PCI loans are accounted for in accordance with ASC 310-30 “ Loans and Debt Securities Acquired with Deteriorated Credit Quality ” as they display significant credit deterioration since origination and it is probable, as of the acquisition date, that the Company will be unable to collect all contractually required payments from the borrower. For purchased non-credit impaired loans, the accretable discount is the discount applied to the expected cash flows of the portfolio to account for the differences between the interest rates at acquisition and rates currently expected on similar portfolios in the marketplace. As the accretable discount is accreted to interest income over the expected average life of the portfolio, the result will be interest income on loans at the estimated current market rate. We record a provision for the acquired portfolio as the loans acquired renew and the discount is accreted. For PCI loans the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the expected remaining life of the loan if the timing and amount of the future cash flows are reasonably estimable. TDR : TDRs exist when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession (either imposed by court order, law, or agreement between the borrower and the Company) to the borrower that it would not otherwise consider. The Company attempts to maximize its recovery of the balances of the loans through these various concessionary restructurings. All loans deemed TDR are considered impaired. The following factors are potential indicators that a concession has been granted (one or multiple items may be present): • The borrower receives a reduction of the stated interest rate for the remaining original life of the debt. • The borrower receives an extension of the maturity date or dates at a stated interest rate lower that the current market interest rate for new debt with similar risk characteristics. • The borrower receives a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. • The borrower receives a deferral of required payments (principal and/or interest). • The borrower receives a reduction of the accrued interest. Loans held for sale : Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price plus the value of servicing rights, less the carrying value of the related mortgage loans sold. Allowance for loan losses : The allowance for loan losses is established through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and consists of collective evaluation and specific evaluation components. Loans Reviewed Collectively for Impairment - All loans not evaluated individually for impairment will be separated into homogeneous pools to be collectively evaluated. Loans are segmented by loan types (i.e. commercial, agricultural, consumer, etc.). 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 loan type is calculated using the fiscal quarter-end data for the most recent 20 quarters. Management then considers the effects of qualitative factors to ensure our allowance reflects the inherent losses in the loan portfolio. Qualitative factors include, but are not limited to: • 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. • The effect of other external factors such as the legal and regulatory environment. The Company may also consider other qualitative factors for additional ALLL allocations, including changes in the Company’s loan review process. In addition to the qualitative factors identified above, the Bank applies a qualitative adjustment to each watch and substandard risk-rated portfolio segment. Loans Individually Evaluated for Impairment —This measure of estimated credit losses begins if, based upon current information and events, we believe it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement or when a loan has been modified in a troubled debt restructuring. When a loan has been identified as impaired, the amount of impairment will be measured using discounted cash flows, except when it is determined that the remaining source of repayment for the loan is the operation or liquidation of the underlying collateral. In these cases, the current fair value of the collateral, reduced by costs to sell, will be used in place of discounted cash flows. Predominantly, the Company uses the fair value of collateral approach based upon a reliable valuation. When the measurement of the impaired loan is less than the recorded amount of the loan, an impairment is recognized by recording a charge-off to the allowance or by designating a specific reserve. Large groups of smaller-balance loans (with individual balances less than $100,000) are not individually evaluated for impairment, but are collectively evaluated under ASC 450. Transfers of financial assets : Revenue from the origination and sale of loans in the secondary market is recognized upon the transfer of financial assets and accounted for as sales when control over the assets has been surrendered. The Company also sells participation interests in some large loans originated to non-affiliated entities. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company; (2) the transferee has the right to pledge or exchange the assets it received and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Credit-related financial instruments : In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commitments to sell loans, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. Derivatives and hedging instruments : As part of its asset and liability management strategy, the Company uses derivative financial instruments to mitigate exposure to interest rate risks. 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. 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. Premises and equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. The estimated useful lives and primary method of depreciation for the principal items are as follows: Years Type of Assets Minimum Maximum Depreciation Method Buildings and leasehold improvements 10 - 39 Straight-line Furniture and equipment 3 - 10 Straight-line Charges for maintenance and repairs are expensed as incurred. When assets are retired or disposed of, the related cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is recorded. Foreclosed assets, net : Real estate properties and other assets acquired through or in lieu of foreclosure are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Fair value is determined by management by obtaining appraisals or other market value information at least annually. Any write-downs in value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management by obtaining updated appraisals or other market value information. Any subsequent write-downs are recorded as a charge to operations, if necessary, to reduce the carrying value of a property to the updated fair value less estimated selling cost. Net costs related to the holding of properties are included in noninterest expense. Goodwill and other intangibles : Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for as acquisitions. Under ASC Topic 350, goodwill of a reporting unit is tested for impairment on an annual basis, or between annual tests if an event occurs or circumstances change that would reduce the fair value of a reporting unit below its carrying amount. The Company's annual assessment is done at the reporting unit level. The Company did not recognize impairment losses during the year ended December 31, 2019 . Any future impairment will be recorded as noninterest expense in the period of assessment. Certain other intangible assets that have finite lives are amortized on an accelerated basis over the estimated life of the assets. Such assets are evaluated for impairment if events and circumstances indicate a possible impairment. Federal Home Loan Bank Stock : The Bank is a member of the FHLB of Des Moines as well as the FHLB of Chicago, 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. 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 : Mortgage servicing rights are recorded at fair value based on assumptions through a third-party valuation service. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the servicing cost per loan, the discount rate, the escrow float rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Bank-owned life insurance : BOLI represents life insurance policies on the lives of certain Company officers and directors or former officers and directors for which the Company is the beneficiary. Bank-owned life insurance is carried at cash surrender value, net of surrender and other charges, with increases/decreases reflected as noninterest income/expense in the consolidated statements of income. Employee benefit plans: Deferred benefits under a salary continuation plan are charged to expense during the period in which the participating employees attain full eligibility. Stock-based compensation : Compensation expense for share based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. The Company assumes no projected forfeitures on its stock based compensation, since actual historical forfeiture rates on its stock-based incentive awards have been negligible. Income taxes : The Company and/or its subsidiaries file tax returns in all states and local taxing jurisdictions which impose corporate income, franchise or other taxes where it operates. The methods of filing and the methods for calculating taxable and apportionable income vary depending upon the laws of the taxing jurisdiction. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized as income or expense in the period that includes the enactment date of such change. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC 740, Income Taxes , the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act introduced tax reform that reduced the corporate federal income tax rate from 35% to 21% , among other changes. While the corporate tax rate reduction was effective January 1, 2018, GAAP required a revaluation of the Company’s net deferred tax asset. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted through |
Business Combinations Business
Business Combinations Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination | Business Combinations On May 1, 2019, the Company acquired 100% of the equity of ATBancorp through a merger and acquired its wholly-owned banking subsidiaries ATSB and ABTW. The primary reasons for the acquisition were to expand the Company’s operations into new markets and grow the size of the Company’s business. At the effective time of the merger, each share of common stock of ATBancorp converted into (1) 117.55 shares of common stock of the Company, and (2) $992.51 in cash. On April 30, 2019, the last trading date before the closing, the Company’s common stock closed at $28.18 , which resulted in stock consideration valued at $113.7 million net of a liquidity discount of $2.4 million , and total consideration paid by the Company of $148.4 million . The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of the May 1, 2019 acquisition date net of any applicable tax effects. The Company considers all purchase accounting estimates provisional and fair values are subject to refinement for up to one year after the close date. The excess of the consideration paid over the fair value of the net assets acquired is recorded as goodwill. This goodwill is not deductible for tax purposes. The table below summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed: May 1, 2019 Merger consideration (in thousands) Share consideration $ 113,677 Cash consideration 34,766 Total merger consideration $ 148,443 Identifiable net assets acquired, at fair value Assets acquired Cash and cash equivalents $ 82,081 Debt securities available for sale 99,056 Loans 1,138,928 Premises and equipment 18,327 Other intangible assets 28,349 Foreclosed assets 3,091 Other assets 42,648 Total assets acquired 1,412,480 Liabilities assumed Deposits $ 1,089,355 Short-term borrowings 100,761 Long-term debt 71,234 Other liabilities 29,951 Total liabilities assumed 1,291,301 Fair value of net assets acquired 121,179 Goodwill $ 27,264 Premises and equipment acquired with a fair value of $18.3 million included 17 branch locations. The fair value was determined with the assistance of a third party valuation consultant. The fair value write-ups will be recognized in depreciation expense over the estimated useful lives of the assets. The Company recorded a core deposit intangible totaling $23.5 million , which is the portion of the merger purchase price that represents the value assigned to the existing deposit base. The core deposit intangible has a finite life and is amortized using an accelerated method over the estimated useful life of the deposits (estimated to be 8 years ). In addition, the Company recorded a trust customer intangible totaling $4.8 million , which is the portion of the merger purchase price that represents the value assigned to the existing trust customer list. The trust customer intangible has a finite life and is amortized using an accelerated method over the estimated useful life of the intangible (estimated to be 6 years). See Note 7. Goodwill and Other Intangible Assets for further discussion of the accounting for goodwill and other intangible assets. Short-term borrowings assumed with a fair value of $100.8 million included federal funds purchased of $9.4 million , securities sold under agreement to repurchase of $51.4 million , and $40.0 million of FHLB overnight advances. Long-term debt assumed with a fair value of $71.2 million included $42.7 million of FHLB term advances, $17.6 million of junior subordinated notes issued to capital trusts, and $10.9 million of subordinated debentures. See Note 12. Long-Term Debt for further discussion. The operating results of the Company reported herein include the operating results produced by the acquired assets and assumed liabilities for the period May 1, 2019 to December 31, 2019 . Disclosure of the amount of ATBancorp’s revenue and net income (excluding integration costs) included in the Company’s consolidated statements of income is impracticable due to the integration of the operations and accounting for this acquisition. For illustrative purposes only, the following table presents certain unaudited pro forma financial information for the periods indicated. This unaudited estimated pro forma financial information was calculated as if ATBancorp had been acquired as of January 1, 2018. This unaudited pro forma information combines the historical results of ATBancorp with the Company’s consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the acquisition occurred as of the beginning of the year prior to the acquisition. The unaudited pro forma information does not consider any changes to the provision for loan losses resulting from recording loan assets at fair value. Additionally, the Company expects to achieve cost savings and other business synergies as a result of the acquisition, which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented. Years Ended December 31, 2019 2018 (in thousands, except per share) Total revenues (net interest income plus noninterest income) $ 185,102 $ 190,895 Net income $ 45,871 $ 42,751 Earnings per share - basic $ 2.84 $ 2.62 Earnings per share - diluted $ 2.84 $ 2.61 The following table summarizes ATBancorp acquisition-related expenses for the periods indicated: Years Ended December 31, 2019 2018 Noninterest Expense (in thousands) Compensation and employee benefits $ 5,435 $ — Occupancy expense of premises, net 483 2 Legal and professional 2,762 680 Data processing 90 100 Other 360 15 Total ATBancorp acquisition-related expenses $ 9,130 $ 797 Included in legal and professional above were transaction costs of $1.9 million and $0.6 million for the years ended December 31, 2019 and 2018 , respectively. |
Debt Securities Debt Securities
Debt Securities Debt Securities | 12 Months Ended |
Dec. 31, 2019 | |
Debt Securities [Abstract] | |
Debt Securities | Debt Securities The amortized cost and fair value of investment debt securities AFS, with gross unrealized gains and losses, were as follows: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) December 31, 2019 U.S. Government agencies and corporations $ 439 $ 2 $ — $ 441 State and political subdivisions 253,750 3,803 348 257,205 Mortgage-backed securities 43,009 536 15 43,530 Collateralized mortgage obligations 293,911 1,000 1,965 292,946 Corporate debt securities 188,952 3,018 115 191,855 Total debt securities $ 780,061 $ 8,359 $ 2,443 $ 785,977 December 31, 2018 U.S. Government agencies and corporations $ 5,522 $ — $ 27 $ 5,495 State and political subdivisions 121,403 877 379 121,901 Mortgage-backed securities 51,625 100 1,072 50,653 Collateralized mortgage obligations 176,134 220 6,426 169,928 Corporate debt securities 67,077 64 1,017 66,124 Total debt securities $ 421,761 $ 1,261 $ 8,921 $ 414,101 The amortized cost and fair value of investment debt securities HTM, with gross unrealized gains and losses, were as follows: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) December 31, 2018 State and political subdivisions $ 131,177 $ 314 $ 2,437 $ 129,054 Mortgage-backed securities 11,016 1 331 10,686 Collateralized mortgage obligations 18,527 — 669 17,858 Corporate debt securities 35,102 331 467 34,966 Total debt securities $ 195,822 $ 646 $ 3,904 $ 192,564 During the quarter ended December 31, 2019, the Company transferred all of its investment securities classified as held to maturity to available for sale. Based on the changes in the current rate environment, management made this change in an effort to manage more effectively the investment portfolio, including the potential sale in the future of securities that were formerly classified as held to maturity. The amortized cost of the securities that were transferred totaled $186.4 million , and the pre-tax net unrealized gain related to these securities totaled $2.8 million on the date of the transfer. As a result of the transfer, the Company believes its held to maturity classification process has been compromised, and careful evaluation and analysis will be required going forward in determining when circumstances are suitable for management to assert with a great degree of credibility that it has the intent and ability to hold investments to maturity. Investment securities with a carrying value of $264.8 million and $197.2 million at December 31, 2019 and 2018 , respectively, were pledged on public deposits, securities sold under agreements to repurchase and for other purposes, as required or permitted by law. Certain debt securities AFS and HTM were temporarily impaired as of December 31, 2019 and December 31, 2018 . 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 debt securities with gross unrealized losses as of December 31, 2019 and 2018 , aggregated by investment category and length of time that individual securities have been in a continuous loss position. There were no held to maturity securities as of December 31, 2019. As of December 31, 2019 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 — $ — $ — $ — $ — $ — $ — State and political subdivisions 47 27,161 322 2,112 26 29,273 348 Mortgage-backed securities 7 963 12 1,365 3 2,328 15 Collateralized mortgage obligations 33 103,395 719 65,604 1,246 168,999 1,965 Corporate debt securities 7 7,012 14 8,788 101 15,800 115 Total 94 $ 138,531 $ 1,067 $ 77,869 $ 1,376 $ 216,400 $ 2,443 As of December 31, 2018 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 2 $ — $ — $ 5,495 $ 27 $ 5,495 $ 27 State and political subdivisions 75 27,508 121 12,140 258 39,648 379 Mortgage-backed securities 24 1,893 15 44,882 1,057 46,775 1,072 Collateralized mortgage obligations 40 3,906 75 134,742 6,351 138,648 6,426 Corporate debt securities 11 — — 58,040 1,017 58,040 1,017 Total 152 $ 33,307 $ 211 $ 255,299 $ 8,710 $ 288,606 $ 8,921 As of December 31, 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 223 $ 20,905 $ 130 $ 56,154 $ 2,307 $ 77,059 $ 2,437 Mortgage-backed securities 6 9,486 298 1,138 33 10,624 331 Collateralized mortgage obligations 8 — — 17,849 669 17,849 669 Corporate debt securities 5 8,177 181 5,685 286 13,862 467 Total 242 $ 38,568 $ 609 $ 80,826 $ 3,295 $ 119,394 $ 3,904 The Company's assessment of OTTI is based on its reasonable judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers factual information, including expected cash flows, the structure of the security, the creditworthiness of the issuer, the type of underlying assets and the current and anticipated market conditions. At December 31, 2019 , the investment portfolio included 807 securities. Of this number, 94 securities were in an unrealized loss position. The aggregate unrealized losses of these securities totaled approximately 0.31% of the total aggregate amortized cost. Of these 94 securities, 31 securities had an unrealized loss for 12 months or more. All of the debt securities in unrealized loss positions are considered acceptable credit risks. Based upon an evaluation of the available evidence, including the recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary. In addition, the Company lacks the intent to sell these securities and it is more likely than not that the Company will not be required to sell these debt securities before their anticipated recovery. Proceeds and gross realized gains and losses on debt securities available for sale for the years ended December 31, 2019 , 2018 and 2017 , were as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Proceeds from sales of debt securities available for sale $ 125,452 $ 14,490 $ 22,538 Gross realized gains from sales of debt securities available for sale $ 143 $ 203 $ 199 Gross realized losses from sales of debt securities available for sale (56 ) (6 ) (11 ) Net realized gain from sales of debt securities available for sale $ 87 $ 197 $ 188 The contractual maturity distribution of investment debt securities at December 31, 2019 , is shown below. Expected maturities of MBS and CMO may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following summary. Available For Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 22,635 $ 22,644 Due after one year through five years 170,933 173,172 Due after five years through ten years 194,803 198,926 Due after ten years 54,770 54,759 $ 443,141 $ 449,501 Mortgage-backed securities 43,009 43,530 Collateralized mortgage obligations 293,911 292,946 Total $ 780,061 $ 785,977 |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Loan Losses Loans Receivable and the Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Receivable and the Allowance for Loan Losses | Loans Receivable and the Allowance for Loan Losses The composition of loans by lending classification was as follows: As of December 31, 2019 2018 (in thousands) Agricultural $ 140,446 $ 96,956 Commercial and industrial 835,236 533,188 Commercial real estate: Construction & development 298,077 217,617 Farmland 181,885 88,807 Multifamily 227,407 134,741 Commercial real estate-other 1,107,490 826,163 Total commercial real estate 1,814,859 1,267,328 Residential real estate: One- to four- family first liens 407,418 341,830 One- to four- family junior liens 170,381 120,049 Total residential real estate 577,799 461,879 Consumer 82,926 39,428 Loans held for investment, net of unearned income $ 3,451,266 $ 2,398,779 Allowance for loan losses $ (29,079 ) $ (29,307 ) Total loans held for investment, net $ 3,422,187 $ 2,369,472 Loans with unpaid principal in the amount of $945.9 million and $444.6 million at December 31, 2019 and December 31, 2018 , respectively, were pledged to the FHLB as collateral for borrowings. The composition of allowance for loan losses and loans by portfolio segment and based on impairment method were as follows: As of December 31, 2019 Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total (in thousands) Loans receivable Individually evaluated for impairment $ 4,312 $ 12,242 $ 16,082 $ 838 $ 21 $ 33,495 Collectively evaluated for impairment 135,246 822,939 1,781,306 572,865 82,864 3,395,220 Purchased credit impaired loans 888 55 17,471 4,096 41 22,551 Total $ 140,446 $ 835,236 $ 1,814,859 $ 577,799 $ 82,926 $ 3,451,266 Allowance for loan losses: Individually evaluated for impairment $ 212 $ 2,198 $ 1,180 $ 73 $ — $ 3,663 Collectively evaluated for impairment 3,536 6,194 11,836 2,152 448 24,166 Purchased credit impaired loans — 2 788 460 — 1,250 Total $ 3,748 $ 8,394 $ 13,804 $ 2,685 $ 448 $ 29,079 As of December 31, 2018 Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total (in thousands) Loans receivable Individually evaluated for impairment $ 4,090 $ 8,957 $ 7,957 $ 1,760 $ 24 $ 22,788 Collectively evaluated for impairment 92,866 524,182 1,246,589 455,941 39,404 2,358,982 Purchased credit impaired loans — 49 12,782 4,178 — 17,009 Total $ 96,956 $ 533,188 $ 1,267,328 $ 461,879 $ 39,428 $ 2,398,779 Allowance for loan losses: Individually evaluated for impairment $ 322 $ 2,159 $ 2,683 $ 120 $ — $ 5,284 Collectively evaluated for impairment 3,315 5,318 12,232 1,753 208 22,826 Purchased credit impaired loans — 1 720 476 — 1,197 Total $ 3,637 $ 7,478 $ 15,635 $ 2,349 $ 208 $ 29,307 The changes in the ALLL by portfolio segment were as follows: Allowance for Loan Loss Activity For the Years Ended December 31, 2019, 2018, and 2017 Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total (in thousands) 2019 Beginning balance $ 3,637 $ 7,478 $ 15,635 $ 2,349 $ 208 $ 29,307 Charge-offs (1,130 ) (4,774 ) (1,537 ) (229 ) (720 ) (8,390 ) Recoveries 32 195 311 105 361 1,004 Provision (negative provision) 1,209 5,495 (605 ) 460 599 7,158 Ending balance $ 3,748 $ 8,394 $ 13,804 $ 2,685 $ 448 $ 29,079 2018 Beginning balance $ 2,790 $ 8,518 $ 13,637 $ 2,870 $ 244 $ 28,059 Charge-offs (656 ) (2,752 ) (2,901 ) (113 ) (618 ) (7,040 ) Recoveries 67 291 290 288 52 988 Provision (negative provision) 1,436 1,421 4,609 (696 ) 530 7,300 Ending balance $ 3,637 $ 7,478 $ 15,635 $ 2,349 $ 208 $ 29,307 2017 Beginning balance $ 2,003 $ 6,274 $ 9,860 $ 3,458 $ 255 $ 21,850 Charge-offs (1,202 ) (2,338 ) (7,931 ) (305 ) (257 ) (12,033 ) Recoveries 187 232 291 180 18 908 Provision (negative provision) 1,802 4,350 11,417 (463 ) 228 17,334 Ending balance $ 2,790 $ 8,518 $ 13,637 $ 2,870 $ 244 $ 28,059 TDRs totaled $11.0 million and $5.3 million as of December 31, 2019 and 2018 , respectively. The following table sets forth information on the Company's TDRs by class of financing receivable occurring during the stated periods. TDRs may include multiple concessions, and the disclosure classifications in the table are based on the primary concession provided to the borrower. 2019 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 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) : Agricultural Extended maturity date 7 $ 341 $ 341 0 $ — $ — 0 $ — $ — Commercial and industrial Extended maturity date 3 6,309 6,309 0 — — 6 2,037 2,083 Commercial real estate: Farmland Extended maturity date 1 158 158 1 86 86 2 176 176 Commercial real estate-other Extended maturity date 0 — — 0 — — 2 4,276 4,276 Other 0 — — 0 — — 1 10,546 10,923 Residential real estate: One- to four- family first liens Extended maturity date 4 294 293 1 39 46 0 — — One- to four- family junior liens Extended maturity date 6 168 168 0 — — 0 — — Total 21 $ 7,270 $ 7,269 2 $ 125 $ 132 11 $ 17,035 $ 17,458 (1) TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. Loans by class of financing receivable modified as TDRs within the previous 12 months and for which there was a payment default during the stated periods were: 2019 2018 2017 Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (dollars in thousands) TDRs (1) That Subsequently Defaulted: Agricultural Extended maturity date 6 $ 315 0 $ — 0 $ — Commercial and industrial Extended maturity date 0 — 0 — 4 1,504 Commercial real estate: Farmland Extended maturity date 1 158 0 — 0 — Commercial real estate-other Extended maturity date 0 — 1 46 1 968 Residential real estate: One- to four- family first liens Extended maturity date 3 239 0 — 0 — One- to four- family junior liens Extended maturity date 2 30 0 — 0 — Total 12 $ 742 1 $ 46 5 $ 2,472 (1) TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. The following table sets forth the risk category of loans by class of loans and credit quality indicator based on the most recent analysis performed, as of December 31, 2019 and 2018 : Pass Special Mention/Watch Substandard Doubtful Loss Total (in thousands) 2019 Agricultural $ 117,374 $ 13,292 $ 9,780 $ — $ — $ 140,446 Commercial and industrial 794,526 19,038 21,635 1 36 835,236 Commercial real estate: Construction & development 283,921 11,423 2,733 — — 298,077 Farmland 141,107 21,307 19,471 — — 181,885 Multifamily 226,124 90 1,193 — — 227,407 Commercial real estate-other 1,036,418 50,691 20,381 — — 1,107,490 Total commercial real estate 1,687,570 83,511 43,778 — — 1,814,859 Residential real estate: One- to four- family first liens 396,175 4,547 6,532 164 — 407,418 One- to four- family junior liens 168,229 1,282 870 — — 170,381 Total residential real estate 564,404 5,829 7,402 164 — 577,799 Consumer 82,650 39 218 19 — 82,926 Total $ 3,246,524 $ 121,709 $ 82,813 $ 184 $ 36 $ 3,451,266 2018 Agricultural $ 74,126 $ 12,960 $ 9,870 $ — $ — $ 96,956 Commercial and industrial 499,042 13,583 20,559 4 — 533,188 Commercial real estate: Construction & development 215,625 1,069 923 — — 217,617 Farmland 72,924 4,818 11,065 — — 88,807 Multifamily 133,310 1,431 — — — 134,741 Commercial real estate-other 766,702 38,275 21,186 — — 826,163 Total commercial real estate 1,188,561 45,593 33,174 — — 1,267,328 Residential real estate: One- to four- family first liens 335,233 2,080 4,256 261 — 341,830 One- to four- family junior liens 118,146 426 1,477 — — 120,049 Total residential real estate 453,379 2,506 5,733 261 — 461,879 Consumer 39,357 22 24 25 — 39,428 Total $ 2,254,465 $ 74,664 $ 69,360 $ 290 $ — $ 2,398,779 Included within the special mention, substandard, and doubtful categories at December 31, 2019 and 2018 were purchased credit impaired loans totaling $12.1 million and $8.9 million , respectively. Special Mention/Watch - A special mention/watch asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention/watch assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard - Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. Loss - Loans classified 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 December 31, 2019 and 2018 : As of December 31, 2019 2018 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (in thousands) With no related allowance recorded: Agricultural $ 2,383 $ 2,913 $ — $ 1,999 $ 2,511 $ — Commercial and industrial 7,391 10,875 — 2,761 2,977 — Commercial real estate: Construction & development 1,181 1,218 — 84 84 — Farmland 4,306 4,331 — 110 110 — Multifamily — — — — — — Commercial real estate-other 5,709 5,854 — 1,533 2,046 — Total commercial real estate 11,196 11,403 — 1,727 2,240 — Residential real estate: One- to four- family first liens 577 578 — 617 644 — One- to four- family junior liens — — — 292 293 — Total residential real estate 577 578 — 909 937 — Consumer 21 21 — 24 24 — Total $ 21,568 $ 25,790 $ — $ 7,420 $ 8,689 $ — With an allowance recorded: Agricultural $ 1,929 $ 1,930 $ 212 $ 2,091 $ 2,097 $ 322 Commercial and industrial 4,851 5,417 2,198 6,196 8,550 2,159 Commercial real estate: Construction & development 135 135 135 — — — Farmland 1,109 1,148 347 2,123 2,123 662 Multifamily — — — — — — Commercial real estate-other 3,642 4,229 698 4,107 4,365 2,021 Total commercial real estate 4,886 5,512 1,180 6,230 6,488 2,683 Residential real estate: One- to four- family first liens 261 262 73 851 851 120 One- to four- family junior liens — — — — — — Total residential real estate 261 262 73 851 851 120 Consumer — — — — — — Total $ 11,927 $ 13,121 $ 3,663 $ 15,368 $ 17,986 $ 5,284 Total: Agricultural $ 4,312 $ 4,843 $ 212 $ 4,090 $ 4,608 $ 322 Commercial and industrial 12,242 16,292 2,198 8,957 11,527 2,159 Commercial real estate: Construction & development 1,316 1,353 135 84 84 — Farmland 5,415 5,479 347 2,233 2,233 662 Multifamily — — — — — — Commercial real estate-other 9,351 10,083 698 5,640 6,411 2,021 Total commercial real estate 16,082 16,915 1,180 7,957 8,728 2,683 Residential real estate: One- to four- family first liens 838 840 73 1,468 1,495 120 One- to four- family junior liens — — — 292 293 — Total residential real estate 838 840 73 1,760 1,788 120 Consumer 21 21 — 24 24 — Total $ 33,495 $ 38,911 $ 3,663 $ 22,788 $ 26,675 $ 5,284 The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, during the stated periods: For the Year Ended December 31, 2019 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) With no related allowance recorded: Agricultural $ 2,388 $ 43 $ 1,608 $ 53 $ 1,585 $ 66 Commercial and industrial 5,323 — 2,607 94 7,588 230 Commercial real estate: Construction & development 244 37 84 — 364 2 Farmland 2,243 — 66 — 1,012 58 Multifamily — — — — — — Commercial real estate-other 2,161 224 1,328 41 5,682 233 Total commercial real estate 4,648 261 1,478 41 7,058 293 Residential real estate: One- to four- family first liens 323 2 404 — 2,406 84 One- to four- family junior liens — — 287 — 27 2 Total residential real estate 323 2 691 — 2,433 86 Consumer 17 — 5 1 — — Total $ 12,699 $ 306 $ 6,389 $ 189 $ 18,664 $ 675 With an allowance recorded: Agricultural $ 1,500 $ 34 $ 1,876 $ 56 $ 1,457 $ 44 Commercial and industrial 2,186 136 4,991 59 2,189 103 Commercial real estate: Construction & development 26 7 — — — — Farmland 684 5 1,692 — — — Multifamily — — — — — — Commercial real estate-other 1,558 100 2,146 190 4,275 34 Total commercial real estate 2,268 112 3,838 190 4,275 34 Residential real estate: One- to four- family first liens 265 9 861 32 1,030 35 One- to four- family junior liens — — — — 267 5 Total residential real estate 265 9 861 32 1,297 40 Consumer — — — — — — Total $ 6,219 $ 291 $ 11,566 $ 337 $ 9,218 $ 221 Total: Agricultural $ 3,888 $ 77 $ 3,484 $ 109 $ 3,042 $ 110 Commercial and industrial 7,509 136 7,598 153 9,777 333 Commercial real estate: Construction & development 270 44 84 — 364 2 Farmland 2,927 5 1,758 — 1,012 58 Multifamily — — — — — — Commercial real estate-other 3,719 324 3,474 231 9,957 267 Total commercial real estate 6,916 373 5,316 231 11,333 327 Residential real estate: One- to four- family first liens 588 11 1,265 32 3,436 119 One- to four- family junior liens — — 287 — 294 7 Total residential real estate 588 11 1,552 32 3,730 126 Consumer 17 — 5 1 — — Total $ 18,918 $ 597 $ 17,955 $ 526 $ 27,882 $ 896 The following table presents the contractual aging of the loan portfolio: Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due & Accruing Non-Accrual Total Loans Receivable (in thousands) December 31, 2019 Agricultural $ 136,578 $ 975 $ — $ — $ 2,893 $ 140,446 Commercial and industrial 820,923 782 255 — 13,276 835,236 Commercial real estate: Construction & development 293,718 2,256 609 — 1,494 298,077 Farmland 171,121 362 — — 10,402 181,885 Multifamily 227,013 394 — — — 227,407 Commercial real estate-other 1,095,271 1,731 347 — 10,141 1,107,490 Total commercial real estate 1,787,123 4,743 956 — 22,037 1,814,859 Residential real estate: One- to four- family first liens 401,553 2,492 718 99 2,556 407,418 One- to four- family junior liens 169,344 419 80 25 513 170,381 Total residential real estate 570,897 2,911 798 124 3,069 577,799 Consumer 82,499 130 79 12 206 82,926 Total $ 3,398,020 $ 9,541 $ 2,088 $ 136 $ 41,481 $ 3,451,266 Included in the totals above are the following purchased credit impaired loans $ 15,304 $ — $ — $ — $ 7,247 $ 22,551 December 31, 2018 Agricultural $ 95,227 $ 57 $ 50 $ — $ 1,622 $ 96,956 Commercial and industrial 522,463 1,507 — — 9,218 533,188 Commercial real estate: Construction & development 217,476 42 — — 99 217,617 Farmland 86,056 — — — 2,751 88,807 Multifamily 134,741 — — — — 134,741 Commercial real estate-other 821,214 391 — — 4,558 826,163 Total commercial real estate 1,259,487 433 — — 7,408 1,267,328 Residential real estate: One- to four- family first liens 337,405 1,851 1,184 341 1,049 341,830 One- to four- family junior liens 119,040 406 114 24 465 120,049 Total residential real estate 456,445 2,257 1,298 365 1,514 461,879 Consumer 39,225 32 9 — 162 39,428 Total $ 2,372,847 $ 4,286 $ 1,357 $ 365 $ 19,924 $ 2,398,779 Included in the totals above are the following purchased credit impaired loans $ 16,714 $ 295 $ — $ — $ — $ 17,009 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 loan 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. As of December 31, 2019 , the Company had $0.3 million of commitments to lend additional funds to borrowers who have a nonperforming loan. At acquisition, purchased non-credit impaired loans acquired in the ATBancorp transaction had contractually required principal payments of $1.15 billion and an accretable discount of $25.5 million . The following table summarizes the outstanding balance and carrying amount of our PCI loans as of the dates indicated: December 31, 2019 December 31, 2018 (in thousands) Agricultural $ 904 $ — Commercial and industrial 147 165 Commercial real estate 17,803 13,600 Residential real estate 4,136 4,172 Consumer 57 — Outstanding balance 23,047 17,937 Carrying amount 22,551 17,009 Allowance for loan losses 1,250 1,197 Carrying amount, net of allowance for loan losses $ 21,301 $ 15,812 The following table summarizes PCI loans acquired by the Company during the current period as of the merger date and at the end of the period: For the Year Ended December 31, 2019 (in thousands) Contractually required principal payments $ 15,074 Nonaccretable discount (2,957 ) Fair value of acquired loans $ 12,116 Loans at end of period $ 7,666 Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the year ended December 31, 2019 and 2018 : For the Year Ended December 31, 2019 2018 (in thousands) Balance at beginning of period $ 3,840 $ 4,304 Purchases — — Accretion (626 ) (802 ) Reclassification from nonaccretable difference 68 338 Balance at end of period $ 3,282 $ 3,840 |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Balance Sheet Offsetting Derivatives, Hedging Activities and Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities and Balance Sheet Offsetting | The following table presents the total notional amounts and gross fair values of the Company’s derivatives. 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 December 31, 2019 As of December 31, 2018 Fair Value Fair Value Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities (in thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps $ 16,734 $ — $ 1,113 $ 8,927 $ — $ 223 Total derivatives designated as hedging instruments $ 16,734 $ — $ 1,113 $ 8,927 $ — $ 223 Derivatives not designated as hedging instruments: Interest rate swaps $ 113,632 $ 1,824 $ 1,999 $ 13,830 $ 321 $ 359 RPAs 14,711 24 130 10,112 — 85 Total derivatives not designated as hedging instruments $ 128,343 $ 1,848 $ 2,129 $ 23,942 $ 321 $ 444 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 years ended December 31, 2019 , 2018 , and 2017 : Location and Amount of Gain (Loss) Recognized in Income on Fair Value Hedging Relationships For the Years Ended December 31, 2019 2018 2017 Interest Income Other Income Interest Income Other Income Interest Income Other Income (in thousands) 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 $ — $ (2 ) $ — $ — $ — The effects of fair value hedging: Gain (Loss) on fair value hedging relationships in subtopic 815-20: Interest contracts: Hedged items 891 — 221 — — — Derivative designated as hedging instruments (890 ) — (223 ) — — — As of December 31, 2019 , 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 $ 17,849 $ 1,111 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. The following table represents the notional amounts and the gross fair values of interest rate derivative contracts outstanding as of December 31, 2019 and December 31, 2018 . December 31, 2019 Customer Counterparties Financial Counterparties Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Swaps $ 56,816 $ 1,824 $ — $ 56,816 $ — $ 1,999 December 31, 2018 Customer Counterparties Financial Counterparties Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Swaps $ 6,915 $ 321 $ — $ 6,915 $ — $ 359 Credit Risk Participation Agreements -The Company enters 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 December 31, 2019 and December 31, 2018 . December 31, 2019 December 31, 2018 Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities RPAs - protection sold $ 4,702 $ 24 $ — $ — $ — $ — RPAs - protection purchased 10,009 — 130 10,112 — 85 Total RPAs $ 14,711 $ 24 $ 130 $ 10,112 $ — $ 85 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 years ended December 31, 2019 , 2018 , and 2017 : Location in the Consolidated Statements of Income For the Years Ended December 31, (in thousands) 2019 2018 2017 Interest rate swaps Other income $ (138 ) $ (38 ) $ — RPAs Other income (117 ) 115 — Total $ (255 ) $ 77 $ — 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 December 31, 2019 and December 31, 2018 . 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 December 31, 2019 Asset Derivatives $ 1,848 $ — $ 1,848 $ — $ — $ 1,848 Liability Derivatives (3,242 ) — (3,242 ) — (3,280 ) 38 As of December 31, 2018 Asset Derivatives $ 321 $ — $ 321 $ — $ — $ 321 Liability Derivatives (667 ) — (667 ) — (530 ) (137 ) Credit-risk-related Contingent Features The Company has an unsecured federal funds line with its institutional derivative counterparty. The Company has an agreement with its institutional 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 December 31, 2019 , 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 $3,265,000 . As of December 31, 2019 , the Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted $3,280,000 of collateral related to these agreements. If the Company had breached any of these provisions at December 31, 2019 , it could have been required to settle its obligations under the agreements at their termination value of $3,265,000 . |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 2018 (in thousands) Land $ 14,530 $ 12,464 Buildings and leasehold improvements 89,605 75,775 Furniture and equipment 20,769 17,752 Construction in process 359 95 Premises and equipment 125,263 106,086 Accumulated depreciation and amortization 34,540 30,313 Premises and equipment, net $ 90,723 $ 75,773 Premises and equipment depreciation and amortization expense for the years ended December 31, 2019 , 2018 and 2017 was $4.8 million , $4.2 million and $4.0 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table presents the changes in the carrying amount of goodwill for the periods indicated: For the Years Ended December 31, 2019 2018 (in thousands) Goodwill, beginning of period $ 64,654 $ 64,654 Goodwill from acquisition of ATBancorp 27,264 — Total goodwill, end of period $ 91,918 $ 64,654 As part of the ATBancorp acquisition, the Company acquired a core deposit intangible with an assigned amount of $23.5 million and a trust customer relationship intangible with an assigned amount of $4.8 million . The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets for the periods indicated: As of December 31, 2019 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Core deposit intangible $ 41,745 $ (21,032 ) $ 20,713 $ 18,206 $ (16,233 ) $ 1,973 Customer relationship intangible 5,265 (1,195 ) 4,070 455 (259 ) 196 Other 2,700 (2,305 ) 395 2,700 (2,034 ) 666 $ 49,710 $ (24,532 ) $ 25,178 $ 21,361 $ (18,526 ) $ 2,835 Indefinite-lived trade name intangible $ 7,040 $ 7,040 The following table summarizes future amortization expense of intangible assets: Core Customer Deposit Relationship Intangible Intangible Other Totals Year ending December 31, (in thousands) 2020 $ 5,407 $ 1,435 $ 133 $ 6,975 2021 4,190 1,062 106 5,358 2022 3,487 797 79 4,363 2023 2,833 518 51 3,402 2024 2,180 239 24 2,443 Thereafter 2,616 19 2 2,637 Total $ 20,713 $ 4,070 $ 395 $ 25,178 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The components of the Company’s other assets as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 2018 (in thousands) Assets held for sale $ 580 $ — Bank-owned life insurance 81,625 60,989 Interest receivable 18,525 14,736 FHLB stock 15,381 14,678 Mortgage servicing rights 7,026 2,803 Operating leases right-of-use asset 4,499 — Federal & state taxes, current 2,318 2,361 Federal & state taxes, deferred 3,530 8,273 Other receivables/assets 14,476 11,262 $ 147,960 $ 115,102 The increase in mortgage servicing rights and the cash surrender value of BOLI in 2019 was due to the acquisition of ATBancorp by the Company. See Note 2. Business Combinations for further details. The increase in the operating lease ROU assets in 2019 was due to the adoption of ASU 2016-01 effective January 1, 2019. See Note 22. Leases for further details. |
Loans Serviced for Others
Loans Serviced for Others | 12 Months Ended |
Dec. 31, 2019 | |
Loans Serviced for Others [Abstract] | |
Loans Serviced for Others | Loans Serviced for Others Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were $1.1 billion and $447.8 million at December 31, 2019 and 2018 , respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and collection and foreclosure processing. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees, and is net of fair value adjustments to capitalized mortgage servicing rights. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of the Company’s deposits as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 2018 (in thousands) Non-interest-bearing demand $ 662,209 $ 439,133 Interest-bearing checking 962,830 683,894 Money market 763,028 555,839 Savings 387,142 210,416 Certificates of deposit under $250,000 682,232 532,395 Certificates of deposit of $250,000 or more 271,214 191,252 Total deposits $ 3,728,655 $ 2,612,929 At December 31, 2019 , the scheduled maturities of certificates of deposits were as follows: (in thousands) 2020 $ 678,107 2021 183,458 2022 59,374 2023 19,000 2024 12,670 Thereafter 837 Total $ 953,446 The Company had $6.6 million and $8.6 million in brokered time deposits through the CDARS program as of December 31, 2019 and December 31, 2018 , respectively. Included in interest-bearing checking and money market deposits at December 31, 2019 and December 31, 2018 were $10.1 million and $23.7 million , respectively, of brokered deposits in the Insured Cash Sweep (ICS) program. The CDARS and ICS programs coordinate, on a reciprocal basis, a network of banks to spread deposits exceeding the FDIC insurance coverage limits out to numerous institutions in order to provide insurance coverage for all participating deposits. As of December 31, 2019 and December 31, 2018 , the Company had public entity deposits that were collateralized by investment securities of $96.6 million and $90.4 million , respectively. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Debt [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Short-term borrowings were as follows as of December 31, 2019 and December 31, 2018 : December 31, 2019 December 31, 2018 Weighted Average Cost Balance Weighted Average Cost Balance (dollars in thousands) Securities sold under agreements to repurchase 1.06 % $ 117,249 1.00 % $ 74,522 Federal Home Loan Bank overnight advances 1.73 22,100 2.60 56,900 Total 1.17 % $ 139,349 1.69 % $ 131,422 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. The Bank has a secured line of credit with the FHLBDM. Advances from the FHLBDM 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. The Bank has unsecured federal funds lines totaling $170.0 million from multiple correspondent banking relationships. There were no borrowings from such lines at December 31, 2019 and December 31, 2018 . At December 31, 2019 and 2018 , the Company had no Federal Reserve Discount Window borrowings, while the borrowing capacity at December 31, 2019 and 2018 was $12.7 million , and $11.4 million , respectively. As of December 31, 2019 and 2018 , the Bank had municipal securities with a market value of $13.0 million and $12.7 million , respectively, pledged to the Federal Reserve Bank of Chicago to secure potential borrowings. On April 30, 2015 , the Company entered into a credit agreement with a correspondent bank under which the Company could borrow up to $5.0 million from an unsecured revolving loan. Interest was payable at a rate of one-month LIBOR plus 2.00% . The credit agreement was amended on April 29, 2019 such that, commencing April 30, 2019 , the revolving commitment amount was increased to $10.0 million with interest payable at a rate of one-month LIBOR plus 1.75% . The revolving loan matures on April 30, 2020 . The Company had no balance outstanding under this revolving loan as of December 31, 2019 and 2018 . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, by Type, Current and Noncurrent [Abstract] | |
Long-Term Debt | Long-Term Debt Junior Subordinated Notes Issued to Capital Trusts On May 1, 2019, through the acquisition of ATBancorp, the Company assumed the junior subordinated notes issued to ATBancorp Statutory Trust I and ATBancorp Statutory Trust II. The table below summarizes the terms of each issuance of junior subordinated notes outstanding as of December 31, 2019 and December 31, 2018 : Face Value Book Value Interest Rate Year-end Interest Rate Maturity Date Callable Date December 31, 2019 (in thousands) ATBancorp Statutory Trust I $ 7,732 $ 6,814 Three-month LIBOR + 1.68% 3.57 % 06/15/2036 06/15/2011 ATBancorp Statutory Trust II 12,372 10,794 Three-month LIBOR + 1.65% 3.54 % 09/15/2037 06/15/2012 Central Bancshares Capital Trust II 7,217 6,783 Three-month LIBOR + 3.50% 5.39 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I 2,062 1,732 Three-month LIBOR + 2.15% 4.08 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II 15,464 15,464 Three-month LIBOR + 1.59% 3.48 % 12/15/2037 12/15/2012 Total $ 44,847 $ 41,587 December 31, 2018 Central Bancshares Capital Trust II $ 7,217 $ 6,730 Three-month LIBOR + 3.50% 6.29 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I 2,062 1,694 Three-month LIBOR + 2.15% 4.97 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II 15,464 15,464 Three-month LIBOR + 1.59% 4.38 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,888 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. Subordinated Debentures On May 1, 2019, with the acquisition of ATBancorp, the Company assumed $10.9 million of subordinated debentures. These debentures have a stated maturity of May 31, 2023 , and bear interest at a fixed annual rate of 6.50% , with interest payable semi-annually on March 15th and September 15th. The Company has the option to redeem the debentures, in whole or part, at any time on or after May 31, 2021 . The debentures constitute Tier 2 capital under the rules and regulations of the Federal Reserve applicable to the capital status of the subordinated debt of bank holding companies. Beginning on the fifth anniversary preceding the maturity date of each debenture, we were required to begin amortizing the amount of the debentures that may be treated as Tier 2 capital. Specifically, we will lose Tier 2 treatment for 20% of the amount of the debentures in each of the final five years preceding maturity, such that during the final year, we will not be permitted to treat any portion of the debentures as Tier 2 capital. At December 31, 2019 , we were permitted to treat 60% of the debentures as Tier 2 capital. Other Long-Term Debt Long-term borrowings were as follows as of December 31, 2019 and December 31, 2018 : December 31, 2019 December 31, 2018 Weighted Average Cost Balance (in thousands) Weighted Average Cost Balance (in thousands) Finance lease payable 8.89 % $ 1,224 8.89 % $ 1,338 FHLB borrowings 2.25 145,700 2.45 136,000 Notes payable to unaffiliated bank 3.44 32,250 4.13 7,500 Total 2.51 % $ 179,174 2.60 % $ 144,838 The Company utilizes FHLB borrowings as a funding source to supplement customer deposits and to assist in managing interest rate risk. As a member of the FHLBDM, the Bank may borrow funds from the FHLB in amounts up to 45% 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. At December 31, 2019, FHLB long-term borrowings included $6.4 million in advances from the FHLBC assumed in the merger with ATBancorp. The advances from the FHLBC are collateralized by investment securities. See Note 3. Debt Securities of the notes to the consolidated financial statements. As of December 31, 2019 , FHLB borrowings were as follows: Weighted Average Rate Amount (in thousands) Due in 2020 1.93 % $ 54,400 Due in 2021 2.07 % 43,000 Due in 2022 2.68 % 31,000 Due in 2023 2.79 % 11,000 Due in 2024 3.15 % 6,000 Thereafter — % — Total 145,400 Valuation adjustment from acquisition accounting 300 Total $ 145,700 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 were payable quarterly beginning September 30, 2015 . As of December 31, 2019 , $2.5 million of that note was outstanding. The note contains certain requirements, covenants and restrictions that we view to be customary for such a transaction, including those that place restrictions on additional debt and stipulate minimum capital and various operating ratios. On April 30, 2019 , the Company entered into a $35.0 million unsecured note payable with a correspondent bank with a maturity date of April 30, 2024 . Quarterly principal and interest payments began June 30, 2019 and, as of December 31, 2019 , $29.8 million of that note was outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes for the years ended December 31, 2019 , 2018 and 2017 are summarized as follows: December 31, 2019 2018 2017 (in thousands) Current: Federal tax expense $ 1,217 $ 5,293 $ 7,289 State tax expense 2,353 3,004 2,435 Deferred: Deferred income tax expense 3,003 (680 ) 652 Total income tax provision $ 6,573 $ 7,617 $ 10,376 A reconciliation of the expected federal income tax expense to the income tax expense included in the consolidated statements of income was as follows: Year ended December 31, 2019 2018 2017 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income (dollars in thousands) Computed “expected” tax expense $ 10,543 21.0 % $ 7,973 21.0 % $ 10,176 35.0 % Tax-exempt interest (2,392 ) (4.8 ) (1,876 ) (4.9 ) (3,182 ) (10.9 ) Bank-owned life insurance (394 ) (0.8 ) (337 ) (0.9 ) (485 ) (1.7 ) State income taxes, net of federal income tax benefit 2,688 5.3 2,040 5.4 1,307 4.5 Non-deductible acquisition expenses 177 0.4 122 0.3 — — General business credits (4,090 ) (8.1 ) (343 ) (0.9 ) (466 ) (1.6 ) Federal income tax rate change — — — — 3,212 11.1 Other 41 0.1 38 0.1 (186 ) (0.7 ) Total income tax provision $ 6,573 13.1 % $ 7,617 20.1 % $ 10,376 35.7 % Net deferred tax assets as of December 31, 2019 and 2018 consisted of the following components: December 31, 2019 2018 (in thousands) Deferred income tax assets: Allowance for loan losses $ 7,577 $ 7,636 Deferred compensation 4,100 1,361 Net operating losses (state net operating loss carryforwards) 4,477 4,283 Unrealized losses on investment securities — 1,999 Accrued compensation 1,496 816 ROU liabilities 1,388 — Tax credit carryforward 611 — Other 1,541 1,415 Gross deferred tax assets 21,190 17,510 Deferred income tax liabilities: Premises and equipment depreciation and amortization 4,759 2,947 Purchase accounting adjustments 3,171 769 Mortgage servicing rights 1,831 730 Unrealized gains on investment securities 1,544 — ROU assets 1,388 — Other 490 508 Gross deferred tax liabilities 13,183 4,954 Net deferred income tax asset 8,007 12,556 Valuation allowance 4,477 4,283 Net deferred tax asset $ 3,530 $ 8,273 The Company has recorded a deferred tax asset for the future tax benefits of Iowa net operating loss carryforwards. The Iowa net operating loss carryforwards amounting to approximately $58.0 million will expire in various amounts from 2020 to 2040 . As of December 31, 2019 and 2018 , the Company believed it was more likely than not that all temporary differences associated with the Iowa corporate tax return would not be fully realized. Accordingly, the Company has recorded a valuation allowance to reduce the net operating loss carryforward. A valuation allowance related to the remaining deferred tax assets has not been provided because management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. The Company had no material unrecognized tax benefits as of December 31, 2019 and 2018 . |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a salary reduction profit-sharing 401(k) plan covering all employees fulfilling minimum age and service requirements. Employee contributions to the plan are optional. Employer contributions are discretionary and may be made to the plan in an amount equal to a percentage of each participating employee’s salary. The Company matches 100% of the first 3% of employee contributions, and 50% of the next 2% of employee contributions, up to a maximum amount of 4% of an employee’s compensation. Company matching contributions for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Company contributions $ 1,617 $ 1,361 $ 1,306 The Company has an ESOP covering all employees fulfilling minimum age and service requirements. Employer contributions are discretionary and may be made to the plan in an amount equal to a percentage of each participating employee’s salary. The ESOP contribution expense for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Company contributions $ 1,514 $ 690 $ 1,081 The Company provides Health Savings Account contributions to its employees enrolled in high deductible plans. Company contributions for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Company contributions $ 315 $ 215 $ 195 The Company has several nonqualified plans for which liabilities are recorded on its books under a broad label of deferred compensation liabilities. These plans include supplemental executive retirement plans, salary continuation plans, deferred compensation plans, and an insurance plan that provides one times final salary as a post-retirement death benefit. These plans are outlined in the paragraphs and tables that follow. The Company has entered into nonqualified supplemental executive retirement plans (SERPs) with certain executive officers. The SERPs allow certain executives to accumulate retirement benefits beyond those provided by the qualified plans. Changes in the liability related to the SERPs, included in other liabilities, were as follows for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Balance, beginning $ 1,867 $ 2,061 $ 2,278 Company contributions and interest 117 156 146 Cash payments made (352 ) (350 ) (363 ) Balance, ending $ 1,632 $ 1,867 $ 2,061 The Company has salary continuation plans for several officers and directors. These plans provide payments of various amounts upon retirement or death. There are no employee compensation deferrals to these plans. The Company accrues the expense for these benefits by charges to operating expense during the period the respective officer or director attains full eligibility. Changes in the salary continuation agreements, included in other liabilities, were as follows for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Balance, beginning $ 1,104 $ 1,251 $ 1,389 Plans acquired in ATBancorp merger 11,058 — — Company paid interest 145 75 84 Cash payments made (6,855 ) (222 ) (222 ) Balance, ending $ 5,452 $ 1,104 $ 1,251 The Company has entered into deferred compensation agreements with certain executive officers. Under the provisions of the agreements, the officers may defer compensation. Interest on the deferred amounts is earned at The Wall Street Journal ’s prime rate plus one percent. The Company also maintains deferred compensation agreements with certain other officers and directors under whose terms deferrals are no longer permitted, and the interest rate is fixed at 4% . In 2019 the Company also acquired deferred compensations plans as a result of the merger with ATBancorp. Under the provisions of the agreements, interest on the deferred amounts is earned at an annual interest rate equal to the Bank’s return on equity and deferrals are no longer permitted. Upon retirement, the officers and directors will generally receive the deferral balance in equal monthly installments over periods no longer that 180 months . Changes in the deferred compensation agreements, included in other liabilities, were as follows for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Balance, beginning $ 855 $ 715 $ 529 Plans acquired in ATBancorp merger 5,958 — — Employee deferrals 157 179 193 Company paid interest 395 35 24 Cash payments made (344 ) (74 ) (31 ) Balance, ending $ 7,021 $ 855 $ 715 The Company has an insurance benefit plan for several officers for which it is required under accounting standards to maintain an accrued liability balance for the commitment to provide an insurance benefit of one times last annual salary after retirement. Changes in the accrued balance, included in other liabilities, were as follows for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Balance, beginning $ 1,442 $ 1,172 $ 983 Company deferral expense 228 270 189 Balance, ending $ 1,670 $ 1,442 $ 1,172 To provide the retirement benefits for the aforementioned various deferred compensation plans, the Company carries life insurance policies which had cash values totaling $74.9 million , $55.1 million and $54.1 million at December 31, 2019 , 2018 and 2017 , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans On April 20, 2017, the Company’s shareholders approved the MidWest One Financial Group, Inc. 2017 Equity Incentive Plan (the “2017 Plan”). The 2017 Plan is the successor to the 2008 Equity Incentive Plan, which expired on November 20, 2017. Under the terms of the 2017 Plan, the Company may grant a total of 500,000 total shares of the Company’s common stock as stock options, stock appreciation rights or stock awards (including restricted stock and restricted stock units) and may also grant cash incentive awards to eligible individuals. As of December 31, 2019 , 402,310 shares of the Company’s common stock remained available for future awards under the 2017 Plan. During 2019 , the Company recognized $1.2 million of stock based compensation expense related to restricted stock unit grants. In comparison, during 2018 and 2017, the Company recognized $1.0 million and $0.9 million , respectively, related to restricted stock unit grants. Incentive Stock Options: The Company is required to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as compensation expense in the Company’s consolidated statements of operations over the requisite service periods using a straight-line method. The Company assumes no projected forfeitures on its stock-based compensation, since actual historical forfeiture rates on its stock-based incentive awards have been negligible. The stock options were granted with a maximum term of ten years , an exercise price equal to the fair market value of a share of stock on the date of grant and vesting at a rate of 25% per year over four years , with the first vesting date being the one-year anniversary of the grant date. There were no stock options outstanding as of December 31, 2019 and 2018. Plan participants realized an intrinsic value of $179,000 and $219,000 from the exercise of stock options during 2018 and 2017 , respectively. As of December 31, 2019 , there were no remaining compensation costs related to nonvested stock options that have not yet been recognized. There were no stock option awards granted in 2019 , 2018 , or 2017 . Restricted Stock Units: Under the 2017 Plan, the Company may grant restricted stock unit awards that vest upon the completion of future service requirements or specified performance criteria. The fair value of these awards is equal to the market price of the common stock at the date of grant. The Company recognizes stock-based compensation expense for these awards over the vesting period, using the straight-line method, based upon the number of awards ultimately expected to vest. Each restricted stock unit entitles the recipient to receive one share of stock on the vesting date. Generally, for employee awards, the restricted stock units vest 25% per year over four years , with the first vesting date being the one -year anniversary of the grant date, or 100% upon the death or disability of the recipient, or, in certain circumstances, in connection with a change of control (as defined in the 2017 Plan) of the Company. The Compensation Committee retains discretion to fully vest an unvested award where a participant retires before the end of the vesting period. Awards granted to directors vest 100% one year from the grant date. Except as otherwise provided in the 2017 Plan, if a participant terminates employment or service prior to the end of the vesting period, the unearned portion of the stock unit award will be forfeited. The Company may also issue awards that vest upon satisfaction of specified performance criteria. For these types of awards, the final measure of compensation cost is based upon the number of shares that ultimately vest considering the performance criteria. The following is a summary of nonvested restricted stock unit activity for the year ended December 31, 2019 : Weighted-Average Shares Grant-Date Fair Value Nonvested at December 31, 2018 83,750 $ 31.63 Granted 49,040 29.53 Vested (34,810 ) 31.21 Forfeited (8,190 ) 31.83 Nonvested at December 31, 2019 89,790 $ 30.63 The fair value of restricted stock unit awards that vested during 2019 was $1.0 million , compared to $0.9 million and $0.9 million during the years ended December 31, 2018 and 2017 , respectively. As of December 31, 2019 , the total compensation costs related to nonvested restricted stock units that have not yet been recognized totaled $1.8 million , and the weighted average period over which these costs are expected to be recognized is approximately 2.4 years . |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic per-share amounts are computed by dividing net income by the weighted average number of common shares outstanding. Diluted per-share amounts assume issuance of all common stock issuable upon conversion or exercise of other securities, unless the effect is to reduce the loss or increase the income per common share from continuing operations. Following are the calculations for basic and diluted earnings per common share: Year Ended December 31, 2019 2018 2017 (dollars in thousands, except per share amounts) Basic Earnings Per Share: Net income $ 43,630 $ 30,351 $ 18,699 Weighted average shares outstanding 14,869,952 12,219,725 12,038,499 Basic earnings per common share $ 2.93 $ 2.48 $ 1.55 Diluted Earnings Per Share: Net income $ 43,630 $ 30,351 $ 18,699 Weighted average shares outstanding, included all dilutive potential shares 14,884,933 12,237,153 12,062,577 Diluted earnings per common share $ 2.93 $ 2.48 $ 1.55 |
Regulatory Capital Requirements
Regulatory Capital Requirements and Restrictions on Subsidiary Cash | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Requirements and Restrictions on Subsidiary Cash | Regulatory Capital Requirements and Restrictions on Subsidiary Cash The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and Bank financial statements. As of December 31, 2019 , the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action then in effect. There are no conditions or events since this date that management believes have changed the Bank’s category. In order to be a “well-capitalized” depository institution, a bank must maintain a Common Equity Tier 1 capital ratio of 6.5% or more; a Tier 1 capital ratio of 8% or more; a total capital ratio of 10% or more; and a leverage ratio of 5% or more. A capital conservation buffer, comprised of Common Equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer was fully phased in at 2.5% on January 1, 2019. A comparison of the Company’s and the Bank’s capital with the corresponding minimum regulatory requirements in effect as of December 31, 2019 and December 31, 2018 , is presented below: Actual For Capital Adequacy Purposes With Capital Conservation Buffer(1) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio (1) Amount Ratio (dollars in thousands) At December 31, 2019: Consolidated: Total capital/risk weighted assets $ 463,601 11.34 % $ 429,077 10.50 % N/A N/A Tier 1 capital/risk weighted assets 428,021 10.47 347,348 8.50 N/A N/A Common equity tier 1 capital/risk weighted assets 386,434 9.46 286,051 7.00 N/A N/A Tier 1 leverage capital/average assets 428,021 9.48 180,529 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $ 482,106 11.83 % $ 427,877 10.50 % $ 407,502 10.00 % Tier 1 capital/risk weighted assets 453,027 11.12 346,377 8.50 326,002 8.00 Common equity tier 1 capital/risk weighted assets 453,027 11.12 285,251 7.00 264,876 6.50 Tier 1 leverage capital/average assets 453,027 10.06 180,209 4.00 231,166 5.00 At December 31, 2018: Consolidated: Total capital/risk weighted assets $ 342,054 12.23 % $ 276,283 9.875 % N/A N/A Tier 1 capital/risk weighted assets 312,747 11.18 220,327 7.875 N/A N/A Common equity tier 1 capital/risk weighted assets 288,859 10.32 178,360 6.375 N/A N/A Tier 1 leverage capital/average assets 312,747 9.73 128,531 4.000 N/A N/A MidWest One Bank: Total capital/risk weighted assets $ 333,074 11.94 % $ 275,468 9.875 % $ 278,955 10.00 % Tier 1 capital/risk weighted assets 303,767 10.89 219,677 7.875 223,164 8.00 Common equity tier 1 capital/risk weighted assets 303,767 10.89 177,833 6.375 181,320 6.50 Tier 1 leverage capital/average assets 303,767 9.47 128,259 4.000 160,324 5.00 (1) Includes the capital conservation buffer of 1.875% at December 31, 2018 and 2.50% at December 31, 2019 . The ability of the Company to pay dividends to its shareholders is dependent upon dividends paid by the Bank to the Company. The Bank is subject to certain statutory and regulatory restrictions on the amount of dividends it may pay. In addition, as previously disclosed, subsequent to December 31, 2008 , the Bank’s board of directors adopted a capital policy requiring it to maintain a ratio of Tier 1 capital to total assets of at least 8% and a ratio of total capital to risk-based capital of at least 10% . Failure to maintain these ratios also could limit the ability of the Bank to pay dividends to the Company. The Bank is required to maintain reserve balances in cash on hand or on deposit with Federal Reserve Banks. Reserve balances totaled $24.1 million and $14.9 million as of December 31, 2019 and 2018 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Credit-related financial instruments : In the normal course of business, the Bank makes various commitments and incurs certain contingent liabilities that are not presented in the accompanying consolidated financial statements. The commitments and contingent liabilities include commitments to extend credit, commitments to sell loans, and standby letters of credit. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. A summary of the Bank’s commitments at December 31, 2019 and 2018 , is as follows: December 31, 2019 2018 (in thousands) Commitments to extend credit $ 859,212 $ 521,270 Commitments to sell loans 5,400 666 Standby letters of credit 36,192 16,709 Total $ 900,804 $ 538,645 The Bank’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, crops, livestock, inventory, property and equipment, residential real estate and income-producing commercial properties. Commitments to sell loans are agreements to sell loans held for sale to third parties at an agreed upon price. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral, which may include accounts receivable, inventory, property, equipment and income-producing properties, that support those commitments, if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Bank would be required to fund the commitment. The maximum potential amount of future payments the Bank could be required to make is represented by the contractual amount shown in the summary above. If the commitment is funded, the Bank would be entitled to seek recovery from the customer. Litigation : In the normal course of business, the Company and its subsidiaries have been named, from time to time, as defendants in various legal actions. Certain of the actual or threatened legal actions may include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Management, after consulting with legal counsel, is of the opinion that the ultimate liability, if any, resulting from these pending or threatened actions and proceedings will not have a material effect on the financial statements of the Company. Concentrations of credit risk : Substantially all of the Bank’s loans, commitments to extend credit and standby letters of credit have been granted to customers in the Bank’s market areas. Although the loan portfolio of the Bank is diversified, approximately 69% of the loans are real estate loans and approximately 9% are agriculturally related. The concentrations of credit by type of loan are set forth in Note 4. Loans Receivable and the Allowance for Loan Losses . Commitments to extend credit are primarily related to commercial loans and home equity loans. Standby letters of credit were granted primarily to commercial borrowers. Investments in securities issued by state and political subdivisions involve certain governmental entities within Iowa and Minnesota. The carrying value of investment securities of Iowa and Minnesota political subdivisions totaled 49% and 20% , respectively, as of December 31, 2019 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Certain directors of the Company and certain principal officers are customers of, and have banking transactions with, the Bank in the ordinary course of business. Such indebtedness has been incurred on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons. The following is an analysis of the changes in the loans to related parties during the years ended December 31, 2019 and 2018 : Year Ended December 31, 2019 2018 (in thousands) Balance, beginning $ 12,655 $ 14,131 Net increase (decrease) due to change in related parties 12,163 (2,518 ) Advances 4,057 2,059 Collections (1,240 ) (1,017 ) Balance, ending $ 27,635 $ 12,655 None of these loans are past due, nonaccrual or restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. Deposits from these related parties totaled $7.1 million and $4.4 million as of December 31, 2019 and 2018 , respectively. Deposits from related parties are accepted subject to the same interest rates and terms as those from nonrelated parties. In December 2018, Kevin W. Monson, Chairman of the Board of the Company and of the Bank, as manager and member of a limited liability company, purchased from the Company a former office building in Iowa City, Iowa, which had been used for overflow office space by the Company, for the amount of $1.4 million . In accordance with Company policy requirements, the transaction and supporting valuation documentation was reviewed and received pre-approval from the Audit Committee at its meeting on November 13, 2018. |
Estimated Fair Value of Financi
Estimated Fair Value of Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Financial Instruments and Fair Value Measurements | 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. There are three levels of inputs that may be used to measure fair values: • Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2 – Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Recurring Basis The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: 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. 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). Derivatives - Interest rate swaps are valued by using cash flow valuation techniques with observable market data inputs (Level 2). 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 (RPAs) are entered into by the Company 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 using observable inputs, such as yield curves and volatilities, of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure (Level 2). The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2019 and 2018 by level within the fair value hierarchy: Fair Value Measurement at December 31, 2019 Using Total Level 1 Level 2 Level 3 (in thousands) Assets: Available for sale debt securities: U.S. Government agencies and corporations $ 441 $ — $ 441 $ — State and political subdivisions 257,205 — 257,205 — Mortgage-backed securities 43,530 — 43,530 — Collateralized mortgage obligations 292,946 — 292,946 — Corporate debt securities 191,855 — 191,855 — Derivative assets 1,848 — 1,848 — Liabilities: Derivative liabilities $ 3,242 $ — $ 3,242 $ — Fair Value Measurement at December 31, 2018 Using Total Level 1 Level 2 Level 3 (in thousands) Assets: Available for sale debt securities: U.S. Government agencies and corporations $ 5,495 $ — $ 5,495 $ — State and political subdivisions 121,901 — 121,901 — Mortgage-backed securities 50,653 — 50,653 — Collateralized mortgage obligations 169,928 — 169,928 — Corporate debt securities 66,124 — 66,124 — Derivative assets 321 — 321 — Liabilities: Derivative liabilities $ 667 $ — $ 667 $ — There were no transfers of assets between Level 3 and other levels of the fair value hierarchy during the years ended December 31, 2019 or December 31, 2018 . Changes in the fair value of available for sale debt securities are included in other comprehensive income. Nonrecurring Basis The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Collateral Dependent Impaired Loans - Impaired loans that are deemed collateral dependent are valued based on the fair value of the collateral less estimated costs to sell. These estimates are based on the most recently available appraisals by qualified licensed appraisers with certain adjustment made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral (Level 3). Foreclosed Assets, Net - Foreclosed assets are measured at fair value less costs to sell. These estimates are based on the most recently available appraisals by qualified licensed appraisers with certain adjustment made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral (Level 3). The following table discloses the Company’s estimated fair value amounts of its assets recorded at fair value on a nonrecurring basis: Fair Value Measurement at December 31, 2019 Using (in thousands) Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 6,749 $ — $ — $ 6,749 Foreclosed assets, net 3,706 — — 3,706 Fair Value Measurement at December 31, 2018 Using (in thousands) Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 8,328 $ — $ — $ 8,328 Foreclosed assets, net 535 — — 535 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 December 31, 2019 , categorized within Level 3 of the fair value hierarchy: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at December 31, 2019 Fair Value at December 31, 2018 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans $ 6,749 8,328 Fair value of collateral Valuation adjustments — % 75 % 18 % Foreclosed assets, net $ 3,706 535 Fair value of collateral Valuation adjustments 5 % 46 % 10 % Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. Other Fair Value Methods Cash and Cash Equivalents - The carrying amounts of these financial instruments approximate their fair values. 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 Held for Investment, 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. FHLB stock - Investments in FHLB stock are recorded at cost and measured for impairment quarterly. Ownership of FHLB stock is restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB stock is equal to the carrying amount. The carrying amount and estimated fair value of financial instruments not carried at fair value, at December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 73,484 $ 73,484 $ 73,484 $ — $ — Debt securities available for sale 785,977 785,977 — 785,977 — Loans held for sale 5,400 5,476 — 5,476 — Loans held for investment, net 3,422,187 3,427,952 — — 3,427,952 Interest receivable 18,525 18,525 — 18,525 — Federal Home Loan Bank stock 15,381 15,381 — 15,381 — Derivative assets 1,848 1,848 — 1,848 — Financial liabilities: Non-interest bearing 662,209 662,209 662,209 — — Interest-bearing 3,066,446 3,066,427 2,113,000 953,427 — Short-term borrowings 139,349 139,349 139,349 — — Finance leases payable 1,224 1,224 — 1,224 — Federal Home Loan Bank borrowings 145,700 146,913 — 146,913 — Junior subordinated notes issued to capital trusts 41,587 39,391 — 39,391 — Subordinated debentures 10,899 11,083 — 11,083 — Other long-term debt 32,250 32,250 — 32,250 — Derivative liabilities 3,242 3,242 — 3,242 — December 31, 2018 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 45,480 $ 45,480 $ 45,480 $ — $ — Debt securities available for sale 414,101 414,101 — 414,101 — Debt securities held to maturity 195,822 192,564 — 192,564 — Loans held for sale 666 678 — 678 — Loans held for investment, net 2,369,472 2,343,654 — — 2,343,654 Interest receivable 14,736 14,736 — 14,736 — Federal Home Loan Bank stock 14,678 14,678 — 14,678 — Derivative assets 321 321 — 321 — Financial liabilities: Non-interest bearing 439,133 439,133 439,133 — — Interest-bearing 2,173,796 2,166,518 1,450,149 716,369 — Short-term borrowings 131,422 131,422 131,422 — — Finance leases payable 1,338 1,338 — 1,338 — Federal Home Loan Bank borrowings 136,000 134,995 — 134,995 — Junior subordinated notes issued to capital trusts 23,888 21,215 — 21,215 — Subordinated debentures — — — — — Other long-term debt 7,500 7,500 — 7,500 — Derivative liabilities 667 667 — 667 — |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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 Foreclosed Assets Gain or loss from the sale of foreclosed assets 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 foreclosed assets 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 foreclosed assets are 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. Foreclosed asset sales for the years ended December 31, 2019 and December 31, 2018 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 December 31, 2019 and December 31, 2018 , the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted FASB Topic 842. See Note 1 to the consolidated financial statements regarding transition guidance related to the new standard. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches and office space with terms extending through 2025. We do not have any subleased properties. Substantially all of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets. Upon adoption of FASB Topic 842, the Company recognized a ROU asset on its balance sheet in the amount of $2.9 million , and a corresponding operating lease liability of $2.9 million . The Company has one existing finance lease (previously referred to as a capital lease) for a branch location with a lease term through 2025. As this lease was previously required to be recorded on the Company’s consolidated balance sheet, Topic 842 did not materially impact the accounting for this lease. The Company made a policy election to exclude the recognition requirements of Topic 842 to all classes of leases with original terms of 12 months or less. Instead, the short-term lease payments are recognized in income or expense on a straight-line basis over the lease term. On May 1, 2019 the Company completed its merger with ATBancorp. In connection with the transaction, the Company obtained lease right-of-use assets totaling $1.3 million , and assumed lease liabilities totaling $2.2 million which are included in the following disclosures. Supplemental balance sheet information related to leases was as follows: December 31, 2019 (dollars in thousands) Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 4,499 Finance lease right-of-use asset Premises and equipment, net 637 Lease Liabilities Operating lease liability Other liabilities $ 5,430 Finance lease liability Long-term debt 1,225 Weighted-average remaining lease term Operating leases 8.90 years Finance lease 6.67 years Weighted-average discount rate Operating leases 3.78 % Finance lease 8.89 % The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. For the Company’s only finance lease, the Company utilized the rate implicit in the lease. The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Amounts for the years ended December 31, 2017 and 2018 are not included in the table below because the accounting standard was adopted as of January 1, 2019. Years Ended December 31, 2019 2018 2017 Lease Costs (in thousands) Operating lease cost $ 1,068 $ — $ — Variable lease cost 148 — — Short-term lease cost — — — Interest on lease liabilities (1) 113 — — Amortization of right-of-use assets 96 — — Net lease cost $ 1,425 $ — $ — Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 989 $ — $ — Operating cash flows from finance lease 113 — — Finance cash flows from finance lease 113 — — Right-of-use assets obtained in exchange for new operating lease liabilities 6,250 — — Right-of-use assets obtained in exchange for new finance lease liabilities — — — (1) Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net. Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows: Finance Leases Operating Leases (in thousands) Twelve Months Ended: December 31, 2020 $ 231 $ 1,114 December 31, 2021 235 1,074 December 31, 2022 240 973 December 31, 2023 245 912 December 31, 2024 250 682 Thereafter 426 2,132 Total undiscounted lease payments $ 1,627 $ 6,887 Amounts representing interest (402 ) (1,457 ) Lease liability $ 1,225 $ 5,430 |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted FASB Topic 842. See Note 1 to the consolidated financial statements regarding transition guidance related to the new standard. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches and office space with terms extending through 2025. We do not have any subleased properties. Substantially all of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets. Upon adoption of FASB Topic 842, the Company recognized a ROU asset on its balance sheet in the amount of $2.9 million , and a corresponding operating lease liability of $2.9 million . The Company has one existing finance lease (previously referred to as a capital lease) for a branch location with a lease term through 2025. As this lease was previously required to be recorded on the Company’s consolidated balance sheet, Topic 842 did not materially impact the accounting for this lease. The Company made a policy election to exclude the recognition requirements of Topic 842 to all classes of leases with original terms of 12 months or less. Instead, the short-term lease payments are recognized in income or expense on a straight-line basis over the lease term. On May 1, 2019 the Company completed its merger with ATBancorp. In connection with the transaction, the Company obtained lease right-of-use assets totaling $1.3 million , and assumed lease liabilities totaling $2.2 million which are included in the following disclosures. Supplemental balance sheet information related to leases was as follows: December 31, 2019 (dollars in thousands) Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 4,499 Finance lease right-of-use asset Premises and equipment, net 637 Lease Liabilities Operating lease liability Other liabilities $ 5,430 Finance lease liability Long-term debt 1,225 Weighted-average remaining lease term Operating leases 8.90 years Finance lease 6.67 years Weighted-average discount rate Operating leases 3.78 % Finance lease 8.89 % The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. For the Company’s only finance lease, the Company utilized the rate implicit in the lease. The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Amounts for the years ended December 31, 2017 and 2018 are not included in the table below because the accounting standard was adopted as of January 1, 2019. Years Ended December 31, 2019 2018 2017 Lease Costs (in thousands) Operating lease cost $ 1,068 $ — $ — Variable lease cost 148 — — Short-term lease cost — — — Interest on lease liabilities (1) 113 — — Amortization of right-of-use assets 96 — — Net lease cost $ 1,425 $ — $ — Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 989 $ — $ — Operating cash flows from finance lease 113 — — Finance cash flows from finance lease 113 — — Right-of-use assets obtained in exchange for new operating lease liabilities 6,250 — — Right-of-use assets obtained in exchange for new finance lease liabilities — — — (1) Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net. Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows: Finance Leases Operating Leases (in thousands) Twelve Months Ended: December 31, 2020 $ 231 $ 1,114 December 31, 2021 235 1,074 December 31, 2022 240 973 December 31, 2023 245 912 December 31, 2024 250 682 Thereafter 426 2,132 Total undiscounted lease payments $ 1,627 $ 6,887 Amounts representing interest (402 ) (1,457 ) Lease liability $ 1,225 $ 5,430 |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating Segments | 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 and investment management services with operations throughout central and eastern Iowa, the Minneapolis/St. Paul metropolitan area of Minnesota, Wisconsin, Florida, and Colorado. Substantially all income is derived from a diverse base of commercial, mortgage, and retail lending activities, and investments. |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Information | Parent Company Only Financial Information The following are condensed balance sheets of MidWest One Financial Group, Inc. as of December 31, 2019 and 2018 (parent company only): As of December 31, 2019 2018 Balance Sheets (in thousands) Assets Cash $ 10,661 $ 9,611 Investment in subsidiaries 575,508 372,595 Income tax receivable 1,182 117 Deferred income taxes — 44 Bank-owned life insurance 5,127 4,999 Other assets 2,256 1,482 Total assets $ 594,734 $ 388,848 Liabilities and Shareholders’ Equity Liabilities: Long-term debt $ 84,736 $ 31,388 Deferred income taxes 433 — Other liabilities 583 393 Total liabilities 85,752 31,781 Shareholders’ equity: Capital stock, preferred — — Capital stock, common 16,581 12,463 Additional paid-in capital 297,390 187,813 Retained earnings 201,105 168,951 Treasury stock (10,466 ) (6,499 ) Accumulated other comprehensive loss 4,372 (5,661 ) Total shareholders’ equity 508,982 357,067 Total liabilities and shareholders’ equity $ 594,734 $ 388,848 The following are condensed statements of income of MidWest One Financial Group, Inc. for the years ended December 31, 2019 , 2018 , and 2017 (parent company only): Year Ended December 31, 2019 2018 2017 Statements of Income (in thousands) Dividends received from subsidiaries $ 15,000 $ 25,017 $ 6,500 Interest income and dividends on investment securities 84 43 47 Investment securities gains 47 (48 ) — Interest on debt (3,439 ) (1,596 ) (1,406 ) Bank-owned life insurance income 130 127 126 Income from MidWest One Insurance Services, Inc. 943 — — Operating expenses (4,130 ) (2,940 ) (2,281 ) Income before income taxes and equity in subsidiaries’ undistributed income 8,635 20,603 2,986 Income tax benefit (1,394 ) (823 ) (1,137 ) Income before equity in subsidiaries’ undistributed income 10,029 21,426 4,123 Equity in subsidiaries’ undistributed income 33,601 8,925 14,576 Net income $ 43,630 $ 30,351 $ 18,699 The following are condensed statements of cash flows of MidWest One Financial Group, Inc. for the years ended December 31, 2019 , 2018 , and 2017 (parent company only): Year Ended December 31, 2019 2018 2017 Statements of Cash Flows (in thousands) Cash flows from operating activities: Net income $ 43,630 $ 30,351 $ 18,699 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed income of subsidiaries, net of dividends and distributions (33,601 ) (8,925 ) (14,576 ) Amortization 134 95 101 Increase (decrease) in deferred income taxes, net (43 ) (42 ) (93 ) Stock-based compensation 1,156 1,030 868 Gain on sale of assets of MidWest One Insurance Services, Inc. (1,076 ) — — Increase in cash surrender value of bank-owned life insurance (128 ) (127 ) (126 ) Change in: Other assets (403 ) (405 ) 1,617 Other liabilities (4 ) 59 13 Net cash provided by operating activities 9,665 22,036 6,503 Cash flows from investing activities Proceeds from sales of available for sale securities 43 1 1 Purchase of available for sale securities (9 ) (10 ) (10 ) Proceeds from sale of assets of MidWest One Insurance Services, Inc. 1,175 — — Cash and earnings transferred in dissolution of MidWest One Insurance Services, Inc. 631 — — Net cash paid in business acquisition (18,624 ) — — Investment in subsidiary — — (16,200 ) Net cash used in investing activities (16,784 ) (9 ) (16,209 ) Cash flows from financing activities: Net increase (decrease) in: Long-term debt 24,750 (5,000 ) (5,000 ) Proceeds from share-based award activity — 137 100 Taxes paid relating to net share settlement of equity awards (103 ) (89 ) (114 ) Dividends paid (11,476 ) (9,535 ) (8,061 ) Issuance of common stock — — 25,688 Expenses incurred in stock issuance (323 ) — (1,328 ) Repurchase of common stock (4,679 ) (2,129 ) — Net cash provided by (used in) financing activities 8,169 (16,616 ) 11,285 Net increase in cash 1,050 5,411 1,579 Cash Balance: Beginning 9,611 4,200 2,621 Ending $ 10,661 $ 9,611 $ 4,200 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Management evaluated subsequent events through the date the consolidated financial statements were issued. Events or transactions occurring after December 31, 2019 , but prior to the date the consolidated financial statements were issued, that provided additional evidence about conditions that existed at December 31, 2019 have been recognized in the consolidated financial statements for the period ended December 31, 2019 . Events or transactions that provided evidence about conditions that did not exist at December 31, 2019 , but arose before the consolidated financial statements were issued, have not been recognized in the consolidated financial statements for the period ended December 31, 2019 . On January 22, 2020 , the board of directors of the Company declared a cash dividend of $0.22 per share payable on March 16, 2020 to shareholders of record as of the close of business on March 2, 2020 . Pursuant to the Company’s share repurchase program approved on August 20, 2019 , the Company has purchased 38,746 shares of common stock subsequent to December 31, 2019 and through March 4, 2020 for a total cost of $1.2 million inclusive of transaction costs, leaving $7.8 million remaining available under the program. |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) Three Months Ended December 31 September 30 June 30 March 31 (in thousands, except per share amounts) 2019 Interest income $ 50,026 $ 54,076 $ 44,951 $ 33,388 Interest expense 10,442 10,818 10,119 7,412 Net interest income 39,584 43,258 34,832 25,976 Provision for loan losses 604 4,264 696 1,594 Noninterest income 9,036 8,004 8,796 5,410 Noninterest expense 36,436 31,442 29,040 20,617 Income before income taxes 11,580 15,556 13,892 9,175 Income tax expense (1,791 ) 3,256 3,218 1,890 Net income $ 13,371 $ 12,300 $ 10,674 $ 7,285 Net income per common share - basic $ 0.83 $ 0.76 $ 0.72 $ 0.60 Net income per common share - diluted $ 0.83 $ 0.76 $ 0.72 $ 0.60 2018 Interest income $ 33,224 $ 32,210 $ 31,822 $ 30,853 Interest expense 6,671 6,099 5,392 4,679 Net interest income 26,553 26,111 26,430 26,174 Provision for loan losses 3,250 950 1,250 1,850 Noninterest income 5,796 6,045 5,693 5,681 Noninterest expense 19,779 22,622 20,586 20,228 Income before income taxes 9,320 8,584 10,287 9,777 Income tax expense 1,696 1,806 2,131 1,984 Net income $ 7,624 $ 6,778 $ 8,156 $ 7,793 Net income per common share - basic $ 0.62 $ 0.55 $ 0.67 $ 0.64 Net income per common share - diluted $ 0.62 $ 0.55 $ 0.67 $ 0.64 |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates : The allowance for loan losses, fair value of assets acquired and liabilities assumed in a business combination, and the annual impairment testing of goodwill involve certain significant estimates made by management. These estimates are reviewed by management routinely, and it is reasonably possible that circumstances that exist may change in the near-term future and that the effect could be material to the consolidated financial statements. |
Principles Of Consolidation | The consolidated financial statements include the accounts of MidWest One Financial Group, Inc., a bank holding company, and its wholly-owned subsidiary MidWest One Bank, which is a state chartered bank whose primary federal regulator is the FDIC, and MidWest One Insurance Services, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. 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. Trust assets, other than cash deposits held by the Bank in a fiduciary or agency capacity for its customers, are not included in the accompanying consolidated financial statements because such accounts are not assets of the Bank. |
Presentation Of Cash Flows | For purposes of reporting cash flows, cash and due from banks includes cash on hand, amounts due from banks, and federal funds sold. Cash flows from loans, deposits, short-term borrowings, and long-term debt are reported net. Cash receipts and cash payments resulting from originations and sales of loans held for sale are classified as operating cash flows on a gross basis in the consolidated statements of cash flows. The nature of the Company’s business requires that it maintain amounts due from banks that, at times, may exceed federally insured limits. In the opinion of management, no material risk of loss exists due to the various correspondent banks’ financial condition and the fact that they are well capitalized. |
Investment Securities | Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. As of December 31, 2019, the Company held no debt securities classified as held to maturity. Debt securities not classified as held to maturity are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. The Company employs valuation techniques which utilize observable inputs when those inputs are available. These observable inputs reflect assumptions market participants would use in pricing the security, developed based on market data obtained from sources independent of the Company. When such information is not available, the Company employs valuation techniques which utilize unobservable inputs, or those which reflect the Company’s own assumptions about assumptions that market participants would use, based on the best information available in the circumstances. These valuation methods typically involve cash flow and other financial modeling techniques. Changes in underlying factors, assumptions, estimates, or other inputs to the valuation techniques could have a material impact on the Company’s future financial condition and results of operations. Fair value measurements are required to be classified as Level 1 (quoted prices), Level 2 (based on observable inputs) or Level 3 (based on unobservable inputs) discussed in more detail in Note 20 to the consolidated financial statements. Available for sale debt securities are recorded at fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity until realized. Purchase premiums and discounts are recognized in interest income using the interest method between the date of purchase and the first call date, or the maturity date of the security when there is no call date. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other than temporary impairment exists, management considers whether: (1) we have the intent to sell the security; (2) it is more likely than not that we will be required to sell the security before recovery of the amortized cost basis; and (3) we do not expect to recover the entire amortized cost basis of the security. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
Loans | Loans are stated at the principal amount outstanding, net of purchase premiums, purchase discounts and net deferred loan fees. Net deferred loan fees include nonrefundable loan origination fees less direct loan origination costs. Net deferred loan fees, purchase premiums and purchase discounts are amortized into interest income using either the interest method or straight-line method over the terms of the loans, adjusted for actual prepayments. The interest method is used for all loans except revolving loans, for which the straight-line method is used. Interest on loans is credited to income as earned based on the principal amount outstanding. The accrual of interest on agricultural, commercial, commercial real estate, and consumer loan segments is discontinued at the time the loan is 90 days past due, and residential real estate loan segments at 120 days past due, unless the credit is well secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date, if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. 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. The risk characteristics of each loan portfolio segment are as follows: 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 : Purchased loans acquired in a business combination are recorded and initially measured at their estimated fair value as of the acquisition date. Credit discounts are included in the determination of fair value. An ALLL is not carried over. These purchased loans are segregated into two types: PCI loans and purchased non-credit impaired loans. • Purchased non-credit impaired loans are accounted for in accordance with ASC 310-20 “ Nonrefundable Fees and Other Costs ” as these loans do not have evidence of significant credit deterioration since origination and it is probable all contractually required payments will be received from the borrower. • PCI loans are accounted for in accordance with ASC 310-30 “ Loans and Debt Securities Acquired with Deteriorated Credit Quality ” as they display significant credit deterioration since origination and it is probable, as of the acquisition date, that the Company will be unable to collect all contractually required payments from the borrower. For purchased non-credit impaired loans, the accretable discount is the discount applied to the expected cash flows of the portfolio to account for the differences between the interest rates at acquisition and rates currently expected on similar portfolios in the marketplace. As the accretable discount is accreted to interest income over the expected average life of the portfolio, the result will be interest income on loans at the estimated current market rate. We record a provision for the acquired portfolio as the loans acquired renew and the discount is accreted. For PCI loans the difference between contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable difference. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the expected remaining life of the loan if the timing and amount of the future cash flows are reasonably estimable. TDR : TDRs exist when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession (either imposed by court order, law, or agreement between the borrower and the Company) to the borrower that it would not otherwise consider. The Company attempts to maximize its recovery of the balances of the loans through these various concessionary restructurings. All loans deemed TDR are considered impaired. The following factors are potential indicators that a concession has been granted (one or multiple items may be present): • The borrower receives a reduction of the stated interest rate for the remaining original life of the debt. • The borrower receives an extension of the maturity date or dates at a stated interest rate lower that the current market interest rate for new debt with similar risk characteristics. • The borrower receives a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. • The borrower receives a deferral of required payments (principal and/or interest). • The borrower receives a reduction of the accrued interest. |
Loans held-for-sale | Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price plus the value of servicing rights, less the carrying value of the related mortgage loans sold. |
Allowance for Loan Losses | The allowance for loan losses is established through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and consists of collective evaluation and specific evaluation components. Loans Reviewed Collectively for Impairment - All loans not evaluated individually for impairment will be separated into homogeneous pools to be collectively evaluated. Loans are segmented by loan types (i.e. commercial, agricultural, consumer, etc.). 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 loan type is calculated using the fiscal quarter-end data for the most recent 20 quarters. Management then considers the effects of qualitative factors to ensure our allowance reflects the inherent losses in the loan portfolio. Qualitative factors include, but are not limited to: • 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. • The effect of other external factors such as the legal and regulatory environment. The Company may also consider other qualitative factors for additional ALLL allocations, including changes in the Company’s loan review process. In addition to the qualitative factors identified above, the Bank applies a qualitative adjustment to each watch and substandard risk-rated portfolio segment. Loans Individually Evaluated for Impairment —This measure of estimated credit losses begins if, based upon current information and events, we believe it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement or when a loan has been modified in a troubled debt restructuring. When a loan has been identified as impaired, the amount of impairment will be measured using discounted cash flows, except when it is determined that the remaining source of repayment for the loan is the operation or liquidation of the underlying collateral. In these cases, the current fair value of the collateral, reduced by costs to sell, will be used in place of discounted cash flows. Predominantly, the Company uses the fair value of collateral approach based upon a reliable valuation. When the measurement of the impaired loan is less than the recorded amount of the loan, an impairment is recognized by recording a charge-off to the allowance or by designating a specific reserve. Large groups of smaller-balance loans (with individual balances less than $100,000) are not individually evaluated for impairment, but are collectively evaluated under ASC 450. |
Transfers of Financial Assets | Revenue from the origination and sale of loans in the secondary market is recognized upon the transfer of financial assets and accounted for as sales when control over the assets has been surrendered. The Company also sells participation interests in some large loans originated to non-affiliated entities. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company; (2) the transferee has the right to pledge or exchange the assets it received and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Credit Related Financial Instruments | In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commitments to sell loans, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. |
Derivatives and Hedging Instruments | As part of its asset and liability management strategy, the Company uses derivative financial instruments to mitigate exposure to interest rate risks. 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. 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. |
Premises and Equipment | Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. The estimated useful lives and primary method of depreciation for the principal items are as follows: Years Type of Assets Minimum Maximum Depreciation Method Buildings and leasehold improvements 10 - 39 Straight-line Furniture and equipment 3 - 10 Straight-line Charges for maintenance and repairs are expensed as incurred. When assets are retired or disposed of, the related cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is recorded. |
Foreclosed Assets Net | Real estate properties and other assets acquired through or in lieu of foreclosure are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Fair value is determined by management by obtaining appraisals or other market value information at least annually. Any write-downs in value at the date of acquisition are charged to the allowance for loan losses. After foreclosure, valuations are periodically performed by management by obtaining updated appraisals or other market value information. Any subsequent write-downs are recorded as a charge to operations, if necessary, to reduce the carrying value of a property to the updated fair value less estimated selling cost. Net costs related to the holding of properties are included in noninterest expense. |
Goodwill and Other Intangibles | Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for as acquisitions. Under ASC Topic 350, goodwill of a reporting unit is tested for impairment on an annual basis, or between annual tests if an event occurs or circumstances change that would reduce the fair value of a reporting unit below its carrying amount. The Company's annual assessment is done at the reporting unit level. The Company did not recognize impairment losses during the year ended December 31, 2019 . Any future impairment will be recorded as noninterest expense in the period of assessment. Certain other intangible assets that have finite lives are amortized on an accelerated basis over the estimated life of the assets. Such assets are evaluated for impairment if events and circumstances indicate a possible impairment. |
Federal Home Loan Bank Stock | The |
Mortgage Servicing Rights | Mortgage servicing rights are recorded at fair value based on assumptions through a third-party valuation service. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the servicing cost per loan, the discount rate, the escrow float rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. |
Bank Owned Life Insurance | BOLI represents life insurance policies on the lives of certain Company officers and directors or former officers and directors for which the Company is the beneficiary. Bank-owned life insurance is carried at cash surrender value, net of surrender and other charges, with increases/decreases reflected as noninterest income/expense in the consolidated statements of income. |
Employee Benefit Plans | Deferred benefits under a salary continuation plan are charged to expense during the period in which the participating employees attain full eligibility. |
Stock Based Compensation | Compensation expense for share based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. The Company assumes no projected forfeitures on its stock based compensation, since actual historical forfeiture rates on its stock-based incentive awards have been negligible. |
Income Taxes | The Company and/or its subsidiaries file tax returns in all states and local taxing jurisdictions which impose corporate income, franchise or other taxes where it operates. The methods of filing and the methods for calculating taxable and apportionable income vary depending upon the laws of the taxing jurisdiction. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized as income or expense in the period that includes the enactment date of such change. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC 740, Income Taxes , the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act introduced tax reform that reduced the corporate federal income tax rate from 35% to 21% , among other changes. While the corporate tax rate reduction was effective January 1, 2018, GAAP required a revaluation of the Company’s net deferred tax asset. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted through income tax expense as changes in tax laws are enacted. On February 14, 2018, the FASB issued Accounting Standards Update No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendments of this ASU allowed a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. See Note 13. Income Taxes for more information. There were no material unrecognized tax benefits or any interest or penalties on any unrecognized tax benefits as of December 31, 2019 and 2018 . |
Common Stock | On July 21, 2016, the board of directors of the Company approved a share repurchase program, which allowed for the repurchase of up to $5.0 million of stock through December 31, 2018. Pursuant to the program, the Company could continue to repurchase shares from time to time in the open market, and the method, timing and amounts of repurchase were solely in the discretion of the Company's management. The repurchase program did not require the Company to acquire a specific number of shares. Therefore, the amount of shares repurchased pursuant to the program depended on several factors, including market conditions, capital and liquidity requirements, and alternative uses for cash available. The Company repurchased no common stock under this plan in 2017. In 2018, 33,998 shares of common stock for approximately $1.1 million were purchased under this plan. On March 17, 2017, the Company entered into an underwriting agreement to offer and sell, through an underwriter, up to 750,000 newly issued shares of the Company’s common stock at a public purchase price of $34.25 per share. This included 250,000 shares of the Company’s common stock granted as a 30-day option to purchase to cover over-allotments, if any. On April 6, 2017, the underwriter purchased the full amount of its over-allotment option of 250,000 shares. On 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 replaced the Company's prior repurchase program. The Company repurchased 42,130 shares of common stock under this plan in 2018, at a cost of $1.0 million . During 2019 , the Company repurchased 166,729 shares of common stock under this plan at a cost of $4.7 million . On August 20, 2019 , the Board of Directors of the Company approved a new share repurchase program, allowing for the repurchase of up to $10.0 million of common stock through December 31, 2021 . The new repurchase program replaced the Company’s prior repurchase program. During 2019 , the Company repurchased 34,157 shares of common stock under this plan at a cost of $1.0 million , leaving $9.0 million of common stock available for possible future repurchases as of December 31, 2019 |
Comprehensive Income | Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of shareholders’ equity on the consolidated balance sheets, and are disclosed in the consolidated statements of comprehensive income. |
Effect Of New Financial Accounting Standards | Accounting Guidance Adopted in 2019 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The guidance in this update is meant to increase transparency and comparability among organizations by recognizing ROU 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 Company adopted this update on January 1, 2019, utilizing the cumulative effect approach, and also elected certain relief options offered in ASU 2016-02 including the package of practical expedients, the option not to separate lease and non-lease components and instead to account for them as a single lease component, and the option not to recognize ROU assets and lease liabilities that arise from short-term leases (i.e., leases with terms of twelve months or less). The Company elected the hindsight practical expedient, which allows entities to use hindsight when determining lease term and impairment of ROU assets. The Company has several lease agreements, such as branch locations, which are considered operating leases, and are now recognized on the Company’s consolidated balance sheets. The new guidance requires these lease agreements to be recognized on the consolidated balance sheets as a ROU asset and a corresponding lease liability. See Note 22. Leases for more information. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. Accounting Guidance Pending Adoption at December 31, 2019 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The main objective of this amendment is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendment requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to enhance their credit loss estimates. The amendment requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The current expected credit loss measurement will be used to estimate the allowance for credit losses (“ACL”) over the life of the financial assets. The amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2019. The Company formed a cross functional committee to oversee the adoption of the ASU. The committee identified eleven distinct loan segments for which models have been developed. Management monitors and assesses credit risk based on these loan segments. The CECL modeling measurements for estimating the current expected lifetime credit losses for loans includes the following major items: • Initial forecast - using a period of one year using forward-looking economic scenarios of expected losses. • Historical loss forecast - for a period incorporating the remaining contractual life, adjusted for prepayments, and the changes in various economic variables during representative historical and recessionary periods. • Reversion period - using one and a half years, which links the initial loss forecast to the historical loss forecast based on economic conditions at the measurement date. • Discounted cash flows (DCF) calculation - using the items above to estimate the lifetime credit losses for each portfolio and losses for loans modified as a TDR. The Company will adopt CECL effective January 1, 2020. During the first quarter of 2020, the Company will finalize all internal processes related to the adoption of CECL. At that time, the cross functional committee will be disbanded, along with the current Allowance for Loan Losses Committee, and will be replaced with an Allowance for Credit Losses Committee that will provide oversight for the entire CECL model and allowance process. Upon finalization of internal processes, the Company will recognize a one-time cumulative effect adjustment increasing the allowance for credit losses. We expect an initial increase to the allowance for credit losses, including the allowance for unfunded commitments, in the range of 20-30% above existing levels. The initial increase to the allowance for credit losses is expected to be substantially attributable to the acquired loan portfolio and the allowance for unfunded commitments. The ultimate impact to the Company’s financial condition and results of operations of the ASU, at both adoption and each subsequent reporting period, is highly dependent on credit quality, macroeconomic forecasts and conditions, the composition of our loans and available-for-sale securities portfolio, along with other management judgments. The Company does not expect a material allowance for credit losses to be recorded on its available-for-sale debt securities under the newly codified available-for-sale debt security impairment model, as a large portion of these securities are government agency-backed securities for which the risk of loss is minimal. Utilizing a risk-based approach that incorporates credit ratings, observed credit spreads and in certain cases issuer-specific financial analysis, the Bank performs a quarterly assessment of non-agency backed securities. Our assessment based on this analysis is that the risk of loss on non-agency backed securities is also minimal. In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. The Company is planning on adopting the capital transition relief over the permissible three-year period. In August 2018, the FASB issued ASU 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” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. The adoption of this standard is not expected to have a material effect on the Company’s consolidated financial statements. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326); Targeted Transition Relief. This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held to maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019-05 has the same effective date as ASU 2016-13 (i.e., the first quarter of 2020 for the Company). The Company does not expect to elect the fair value option, and therefore, ASU 2019-05 is not expected to impact the Company’s consolidated financial statements. |
Non Accrual and Delinquent Loans | 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 loan 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. |
Revenue Recognition | 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 Foreclosed Assets Gain or loss from the sale of foreclosed assets 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 foreclosed assets 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 foreclosed assets are 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. Foreclosed asset sales for the years ended December 31, 2019 and December 31, 2018 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 December 31, 2019 and December 31, 2018 , the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Subsequent Events | Management evaluated subsequent events through the date the consolidated financial statements were issued. Events or transactions occurring after December 31, 2019 , but prior to the date the consolidated financial statements were issued, that provided additional evidence about conditions that existed at December 31, 2019 have been recognized in the consolidated financial statements for the period ended December 31, 2019 . Events or transactions that provided evidence about conditions that did not exist at December 31, 2019 , but arose before the consolidated financial statements were issued, have not been recognized in the consolidated financial statements for the period ended December 31, 2019 . |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. The estimated useful lives and primary method of depreciation for the principal items are as follows: Years Type of Assets Minimum Maximum Depreciation Method Buildings and leasehold improvements 10 - 39 Straight-line Furniture and equipment 3 - 10 Straight-line |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss included in shareholders’ equity were as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Unrealized gains (losses) on securities available for sale $ 5,916 $ (7,660 ) $ (3,530 ) Less: Tax effect 1,544 (1,999 ) (928 ) Accumulated other comprehensive gain (loss), net of tax $ 4,372 $ (5,661 ) $ (2,602 ) |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The table below summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed: May 1, 2019 Merger consideration (in thousands) Share consideration $ 113,677 Cash consideration 34,766 Total merger consideration $ 148,443 Identifiable net assets acquired, at fair value Assets acquired Cash and cash equivalents $ 82,081 Debt securities available for sale 99,056 Loans 1,138,928 Premises and equipment 18,327 Other intangible assets 28,349 Foreclosed assets 3,091 Other assets 42,648 Total assets acquired 1,412,480 Liabilities assumed Deposits $ 1,089,355 Short-term borrowings 100,761 Long-term debt 71,234 Other liabilities 29,951 Total liabilities assumed 1,291,301 Fair value of net assets acquired 121,179 Goodwill $ 27,264 |
Business Acquisition, Pro Forma Information | For illustrative purposes only, the following table presents certain unaudited pro forma financial information for the periods indicated. This unaudited estimated pro forma financial information was calculated as if ATBancorp had been acquired as of January 1, 2018. This unaudited pro forma information combines the historical results of ATBancorp with the Company’s consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the acquisition occurred as of the beginning of the year prior to the acquisition. The unaudited pro forma information does not consider any changes to the provision for loan losses resulting from recording loan assets at fair value. Additionally, the Company expects to achieve cost savings and other business synergies as a result of the acquisition, which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented. Years Ended December 31, 2019 2018 (in thousands, except per share) Total revenues (net interest income plus noninterest income) $ 185,102 $ 190,895 Net income $ 45,871 $ 42,751 Earnings per share - basic $ 2.84 $ 2.62 Earnings per share - diluted $ 2.84 $ 2.61 |
Business Acquisition, Integration, Restructuring and Other Related Costs | The following table summarizes ATBancorp acquisition-related expenses for the periods indicated: Years Ended December 31, 2019 2018 Noninterest Expense (in thousands) Compensation and employee benefits $ 5,435 $ — Occupancy expense of premises, net 483 2 Legal and professional 2,762 680 Data processing 90 100 Other 360 15 Total ATBancorp acquisition-related expenses $ 9,130 $ 797 Included in legal and professional above were transaction costs of $1.9 million and $0.6 million for the years ended December 31, 2019 and 2018 , respectively. |
Debt Securities - (Tables)
Debt Securities - (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and fair value of investment debt securities AFS, with gross unrealized gains and losses, were as follows: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) December 31, 2019 U.S. Government agencies and corporations $ 439 $ 2 $ — $ 441 State and political subdivisions 253,750 3,803 348 257,205 Mortgage-backed securities 43,009 536 15 43,530 Collateralized mortgage obligations 293,911 1,000 1,965 292,946 Corporate debt securities 188,952 3,018 115 191,855 Total debt securities $ 780,061 $ 8,359 $ 2,443 $ 785,977 December 31, 2018 U.S. Government agencies and corporations $ 5,522 $ — $ 27 $ 5,495 State and political subdivisions 121,403 877 379 121,901 Mortgage-backed securities 51,625 100 1,072 50,653 Collateralized mortgage obligations 176,134 220 6,426 169,928 Corporate debt securities 67,077 64 1,017 66,124 Total debt securities $ 421,761 $ 1,261 $ 8,921 $ 414,101 |
Debt Securities, Held-to-maturity | As of December 31, 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 223 $ 20,905 $ 130 $ 56,154 $ 2,307 $ 77,059 $ 2,437 Mortgage-backed securities 6 9,486 298 1,138 33 10,624 331 Collateralized mortgage obligations 8 — — 17,849 669 17,849 669 Corporate debt securities 5 8,177 181 5,685 286 13,862 467 Total 242 $ 38,568 $ 609 $ 80,826 $ 3,295 $ 119,394 $ 3,904 The amortized cost and fair value of investment debt securities HTM, with gross unrealized gains and losses, were as follows: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) December 31, 2018 State and political subdivisions $ 131,177 $ 314 $ 2,437 $ 129,054 Mortgage-backed securities 11,016 1 331 10,686 Collateralized mortgage obligations 18,527 — 669 17,858 Corporate debt securities 35,102 331 467 34,966 Total debt securities $ 195,822 $ 646 $ 3,904 $ 192,564 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following tables present information pertaining to debt securities with gross unrealized losses as of December 31, 2019 and 2018 , aggregated by investment category and length of time that individual securities have been in a continuous loss position. There were no held to maturity securities as of December 31, 2019. As of December 31, 2019 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 — $ — $ — $ — $ — $ — $ — State and political subdivisions 47 27,161 322 2,112 26 29,273 348 Mortgage-backed securities 7 963 12 1,365 3 2,328 15 Collateralized mortgage obligations 33 103,395 719 65,604 1,246 168,999 1,965 Corporate debt securities 7 7,012 14 8,788 101 15,800 115 Total 94 $ 138,531 $ 1,067 $ 77,869 $ 1,376 $ 216,400 $ 2,443 As of December 31, 2018 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 2 $ — $ — $ 5,495 $ 27 $ 5,495 $ 27 State and political subdivisions 75 27,508 121 12,140 258 39,648 379 Mortgage-backed securities 24 1,893 15 44,882 1,057 46,775 1,072 Collateralized mortgage obligations 40 3,906 75 134,742 6,351 138,648 6,426 Corporate debt securities 11 — — 58,040 1,017 58,040 1,017 Total 152 $ 33,307 $ 211 $ 255,299 $ 8,710 $ 288,606 $ 8,921 |
Realized Gain (Loss) on Investments | Proceeds and gross realized gains and losses on debt securities available for sale for the years ended December 31, 2019 , 2018 and 2017 , were as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Proceeds from sales of debt securities available for sale $ 125,452 $ 14,490 $ 22,538 Gross realized gains from sales of debt securities available for sale $ 143 $ 203 $ 199 Gross realized losses from sales of debt securities available for sale (56 ) (6 ) (11 ) Net realized gain from sales of debt securities available for sale $ 87 $ 197 $ 188 |
Investments Classified by Contractual Maturity Date | The contractual maturity distribution of investment debt securities at December 31, 2019 , is shown below. Expected maturities of MBS and CMO may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following summary. Available For Sale Amortized Cost Fair Value (in thousands) Due in one year or less $ 22,635 $ 22,644 Due after one year through five years 170,933 173,172 Due after five years through ten years 194,803 198,926 Due after ten years 54,770 54,759 $ 443,141 $ 449,501 Mortgage-backed securities 43,009 43,530 Collateralized mortgage obligations 293,911 292,946 Total $ 780,061 $ 785,977 |
Loans Receivable and the Allo_2
Loans Receivable and the Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of allowance for loan losses and loans by portfolio segment and based on impairment method were as follows: As of December 31, 2019 Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total (in thousands) Loans receivable Individually evaluated for impairment $ 4,312 $ 12,242 $ 16,082 $ 838 $ 21 $ 33,495 Collectively evaluated for impairment 135,246 822,939 1,781,306 572,865 82,864 3,395,220 Purchased credit impaired loans 888 55 17,471 4,096 41 22,551 Total $ 140,446 $ 835,236 $ 1,814,859 $ 577,799 $ 82,926 $ 3,451,266 Allowance for loan losses: Individually evaluated for impairment $ 212 $ 2,198 $ 1,180 $ 73 $ — $ 3,663 Collectively evaluated for impairment 3,536 6,194 11,836 2,152 448 24,166 Purchased credit impaired loans — 2 788 460 — 1,250 Total $ 3,748 $ 8,394 $ 13,804 $ 2,685 $ 448 $ 29,079 As of December 31, 2018 Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total (in thousands) Loans receivable Individually evaluated for impairment $ 4,090 $ 8,957 $ 7,957 $ 1,760 $ 24 $ 22,788 Collectively evaluated for impairment 92,866 524,182 1,246,589 455,941 39,404 2,358,982 Purchased credit impaired loans — 49 12,782 4,178 — 17,009 Total $ 96,956 $ 533,188 $ 1,267,328 $ 461,879 $ 39,428 $ 2,398,779 Allowance for loan losses: Individually evaluated for impairment $ 322 $ 2,159 $ 2,683 $ 120 $ — $ 5,284 Collectively evaluated for impairment 3,315 5,318 12,232 1,753 208 22,826 Purchased credit impaired loans — 1 720 476 — 1,197 Total $ 3,637 $ 7,478 $ 15,635 $ 2,349 $ 208 $ 29,307 The composition of loans by lending classification was as follows: As of December 31, 2019 2018 (in thousands) Agricultural $ 140,446 $ 96,956 Commercial and industrial 835,236 533,188 Commercial real estate: Construction & development 298,077 217,617 Farmland 181,885 88,807 Multifamily 227,407 134,741 Commercial real estate-other 1,107,490 826,163 Total commercial real estate 1,814,859 1,267,328 Residential real estate: One- to four- family first liens 407,418 341,830 One- to four- family junior liens 170,381 120,049 Total residential real estate 577,799 461,879 Consumer 82,926 39,428 Loans held for investment, net of unearned income $ 3,451,266 $ 2,398,779 Allowance for loan losses $ (29,079 ) $ (29,307 ) Total loans held for investment, net $ 3,422,187 $ 2,369,472 |
Financing Receivable, Allowance for Credit Loss | The changes in the ALLL by portfolio segment were as follows: Allowance for Loan Loss Activity For the Years Ended December 31, 2019, 2018, and 2017 Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total (in thousands) 2019 Beginning balance $ 3,637 $ 7,478 $ 15,635 $ 2,349 $ 208 $ 29,307 Charge-offs (1,130 ) (4,774 ) (1,537 ) (229 ) (720 ) (8,390 ) Recoveries 32 195 311 105 361 1,004 Provision (negative provision) 1,209 5,495 (605 ) 460 599 7,158 Ending balance $ 3,748 $ 8,394 $ 13,804 $ 2,685 $ 448 $ 29,079 2018 Beginning balance $ 2,790 $ 8,518 $ 13,637 $ 2,870 $ 244 $ 28,059 Charge-offs (656 ) (2,752 ) (2,901 ) (113 ) (618 ) (7,040 ) Recoveries 67 291 290 288 52 988 Provision (negative provision) 1,436 1,421 4,609 (696 ) 530 7,300 Ending balance $ 3,637 $ 7,478 $ 15,635 $ 2,349 $ 208 $ 29,307 2017 Beginning balance $ 2,003 $ 6,274 $ 9,860 $ 3,458 $ 255 $ 21,850 Charge-offs (1,202 ) (2,338 ) (7,931 ) (305 ) (257 ) (12,033 ) Recoveries 187 232 291 180 18 908 Provision (negative provision) 1,802 4,350 11,417 (463 ) 228 17,334 Ending balance $ 2,790 $ 8,518 $ 13,637 $ 2,870 $ 244 $ 28,059 |
Financing Receivable, Troubled Debt Restructuring | The following table sets forth information on the Company's TDRs by class of financing receivable occurring during the stated periods. TDRs may include multiple concessions, and the disclosure classifications in the table are based on the primary concession provided to the borrower. 2019 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 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (dollars in thousands) Troubled Debt Restructurings (1) : Agricultural Extended maturity date 7 $ 341 $ 341 0 $ — $ — 0 $ — $ — Commercial and industrial Extended maturity date 3 6,309 6,309 0 — — 6 2,037 2,083 Commercial real estate: Farmland Extended maturity date 1 158 158 1 86 86 2 176 176 Commercial real estate-other Extended maturity date 0 — — 0 — — 2 4,276 4,276 Other 0 — — 0 — — 1 10,546 10,923 Residential real estate: One- to four- family first liens Extended maturity date 4 294 293 1 39 46 0 — — One- to four- family junior liens Extended maturity date 6 168 168 0 — — 0 — — Total 21 $ 7,270 $ 7,269 2 $ 125 $ 132 11 $ 17,035 $ 17,458 (1) TDRs may include multiple concessions, and the disclosure classifications are based on the primary concession provided to the borrower. Loans by class of financing receivable modified as TDRs within the previous 12 months and for which there was a payment default during the stated periods were: 2019 2018 2017 Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (dollars in thousands) TDRs (1) That Subsequently Defaulted: Agricultural Extended maturity date 6 $ 315 0 $ — 0 $ — Commercial and industrial Extended maturity date 0 — 0 — 4 1,504 Commercial real estate: Farmland Extended maturity date 1 158 0 — 0 — Commercial real estate-other Extended maturity date 0 — 1 46 1 968 Residential real estate: One- to four- family first liens Extended maturity date 3 239 0 — 0 — One- to four- family junior liens Extended maturity date 2 30 0 — 0 — Total 12 $ 742 1 $ 46 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 | The following table sets forth the risk category of loans by class of loans and credit quality indicator based on the most recent analysis performed, as of December 31, 2019 and 2018 : Pass Special Mention/Watch Substandard Doubtful Loss Total (in thousands) 2019 Agricultural $ 117,374 $ 13,292 $ 9,780 $ — $ — $ 140,446 Commercial and industrial 794,526 19,038 21,635 1 36 835,236 Commercial real estate: Construction & development 283,921 11,423 2,733 — — 298,077 Farmland 141,107 21,307 19,471 — — 181,885 Multifamily 226,124 90 1,193 — — 227,407 Commercial real estate-other 1,036,418 50,691 20,381 — — 1,107,490 Total commercial real estate 1,687,570 83,511 43,778 — — 1,814,859 Residential real estate: One- to four- family first liens 396,175 4,547 6,532 164 — 407,418 One- to four- family junior liens 168,229 1,282 870 — — 170,381 Total residential real estate 564,404 5,829 7,402 164 — 577,799 Consumer 82,650 39 218 19 — 82,926 Total $ 3,246,524 $ 121,709 $ 82,813 $ 184 $ 36 $ 3,451,266 2018 Agricultural $ 74,126 $ 12,960 $ 9,870 $ — $ — $ 96,956 Commercial and industrial 499,042 13,583 20,559 4 — 533,188 Commercial real estate: Construction & development 215,625 1,069 923 — — 217,617 Farmland 72,924 4,818 11,065 — — 88,807 Multifamily 133,310 1,431 — — — 134,741 Commercial real estate-other 766,702 38,275 21,186 — — 826,163 Total commercial real estate 1,188,561 45,593 33,174 — — 1,267,328 Residential real estate: One- to four- family first liens 335,233 2,080 4,256 261 — 341,830 One- to four- family junior liens 118,146 426 1,477 — — 120,049 Total residential real estate 453,379 2,506 5,733 261 — 461,879 Consumer 39,357 22 24 25 — 39,428 Total $ 2,254,465 $ 74,664 $ 69,360 $ 290 $ — $ 2,398,779 |
Impaired Financing Receivables | The following table presents loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, as of December 31, 2019 and 2018 : As of December 31, 2019 2018 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (in thousands) With no related allowance recorded: Agricultural $ 2,383 $ 2,913 $ — $ 1,999 $ 2,511 $ — Commercial and industrial 7,391 10,875 — 2,761 2,977 — Commercial real estate: Construction & development 1,181 1,218 — 84 84 — Farmland 4,306 4,331 — 110 110 — Multifamily — — — — — — Commercial real estate-other 5,709 5,854 — 1,533 2,046 — Total commercial real estate 11,196 11,403 — 1,727 2,240 — Residential real estate: One- to four- family first liens 577 578 — 617 644 — One- to four- family junior liens — — — 292 293 — Total residential real estate 577 578 — 909 937 — Consumer 21 21 — 24 24 — Total $ 21,568 $ 25,790 $ — $ 7,420 $ 8,689 $ — With an allowance recorded: Agricultural $ 1,929 $ 1,930 $ 212 $ 2,091 $ 2,097 $ 322 Commercial and industrial 4,851 5,417 2,198 6,196 8,550 2,159 Commercial real estate: Construction & development 135 135 135 — — — Farmland 1,109 1,148 347 2,123 2,123 662 Multifamily — — — — — — Commercial real estate-other 3,642 4,229 698 4,107 4,365 2,021 Total commercial real estate 4,886 5,512 1,180 6,230 6,488 2,683 Residential real estate: One- to four- family first liens 261 262 73 851 851 120 One- to four- family junior liens — — — — — — Total residential real estate 261 262 73 851 851 120 Consumer — — — — — — Total $ 11,927 $ 13,121 $ 3,663 $ 15,368 $ 17,986 $ 5,284 Total: Agricultural $ 4,312 $ 4,843 $ 212 $ 4,090 $ 4,608 $ 322 Commercial and industrial 12,242 16,292 2,198 8,957 11,527 2,159 Commercial real estate: Construction & development 1,316 1,353 135 84 84 — Farmland 5,415 5,479 347 2,233 2,233 662 Multifamily — — — — — — Commercial real estate-other 9,351 10,083 698 5,640 6,411 2,021 Total commercial real estate 16,082 16,915 1,180 7,957 8,728 2,683 Residential real estate: One- to four- family first liens 838 840 73 1,468 1,495 120 One- to four- family junior liens — — — 292 293 — Total residential real estate 838 840 73 1,760 1,788 120 Consumer 21 21 — 24 24 — Total $ 33,495 $ 38,911 $ 3,663 $ 22,788 $ 26,675 $ 5,284 The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment, excluding purchased credit impaired loans, by class of loan, during the stated periods: For the Year Ended December 31, 2019 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) With no related allowance recorded: Agricultural $ 2,388 $ 43 $ 1,608 $ 53 $ 1,585 $ 66 Commercial and industrial 5,323 — 2,607 94 7,588 230 Commercial real estate: Construction & development 244 37 84 — 364 2 Farmland 2,243 — 66 — 1,012 58 Multifamily — — — — — — Commercial real estate-other 2,161 224 1,328 41 5,682 233 Total commercial real estate 4,648 261 1,478 41 7,058 293 Residential real estate: One- to four- family first liens 323 2 404 — 2,406 84 One- to four- family junior liens — — 287 — 27 2 Total residential real estate 323 2 691 — 2,433 86 Consumer 17 — 5 1 — — Total $ 12,699 $ 306 $ 6,389 $ 189 $ 18,664 $ 675 With an allowance recorded: Agricultural $ 1,500 $ 34 $ 1,876 $ 56 $ 1,457 $ 44 Commercial and industrial 2,186 136 4,991 59 2,189 103 Commercial real estate: Construction & development 26 7 — — — — Farmland 684 5 1,692 — — — Multifamily — — — — — — Commercial real estate-other 1,558 100 2,146 190 4,275 34 Total commercial real estate 2,268 112 3,838 190 4,275 34 Residential real estate: One- to four- family first liens 265 9 861 32 1,030 35 One- to four- family junior liens — — — — 267 5 Total residential real estate 265 9 861 32 1,297 40 Consumer — — — — — — Total $ 6,219 $ 291 $ 11,566 $ 337 $ 9,218 $ 221 Total: Agricultural $ 3,888 $ 77 $ 3,484 $ 109 $ 3,042 $ 110 Commercial and industrial 7,509 136 7,598 153 9,777 333 Commercial real estate: Construction & development 270 44 84 — 364 2 Farmland 2,927 5 1,758 — 1,012 58 Multifamily — — — — — — Commercial real estate-other 3,719 324 3,474 231 9,957 267 Total commercial real estate 6,916 373 5,316 231 11,333 327 Residential real estate: One- to four- family first liens 588 11 1,265 32 3,436 119 One- to four- family junior liens — — 287 — 294 7 Total residential real estate 588 11 1,552 32 3,730 126 Consumer 17 — 5 1 — — Total $ 18,918 $ 597 $ 17,955 $ 526 $ 27,882 $ 896 |
Past Due Loan Receivables | The following table presents the contractual aging of the loan portfolio: Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due & Accruing Non-Accrual Total Loans Receivable (in thousands) December 31, 2019 Agricultural $ 136,578 $ 975 $ — $ — $ 2,893 $ 140,446 Commercial and industrial 820,923 782 255 — 13,276 835,236 Commercial real estate: Construction & development 293,718 2,256 609 — 1,494 298,077 Farmland 171,121 362 — — 10,402 181,885 Multifamily 227,013 394 — — — 227,407 Commercial real estate-other 1,095,271 1,731 347 — 10,141 1,107,490 Total commercial real estate 1,787,123 4,743 956 — 22,037 1,814,859 Residential real estate: One- to four- family first liens 401,553 2,492 718 99 2,556 407,418 One- to four- family junior liens 169,344 419 80 25 513 170,381 Total residential real estate 570,897 2,911 798 124 3,069 577,799 Consumer 82,499 130 79 12 206 82,926 Total $ 3,398,020 $ 9,541 $ 2,088 $ 136 $ 41,481 $ 3,451,266 Included in the totals above are the following purchased credit impaired loans $ 15,304 $ — $ — $ — $ 7,247 $ 22,551 December 31, 2018 Agricultural $ 95,227 $ 57 $ 50 $ — $ 1,622 $ 96,956 Commercial and industrial 522,463 1,507 — — 9,218 533,188 Commercial real estate: Construction & development 217,476 42 — — 99 217,617 Farmland 86,056 — — — 2,751 88,807 Multifamily 134,741 — — — — 134,741 Commercial real estate-other 821,214 391 — — 4,558 826,163 Total commercial real estate 1,259,487 433 — — 7,408 1,267,328 Residential real estate: One- to four- family first liens 337,405 1,851 1,184 341 1,049 341,830 One- to four- family junior liens 119,040 406 114 24 465 120,049 Total residential real estate 456,445 2,257 1,298 365 1,514 461,879 Consumer 39,225 32 9 — 162 39,428 Total $ 2,372,847 $ 4,286 $ 1,357 $ 365 $ 19,924 $ 2,398,779 Included in the totals above are the following purchased credit impaired loans $ 16,714 $ 295 $ — $ — $ — $ 17,009 |
Schedule of Carrying Amount of PCI Loans | The following table summarizes the outstanding balance and carrying amount of our PCI loans as of the dates indicated: December 31, 2019 December 31, 2018 (in thousands) Agricultural $ 904 $ — Commercial and industrial 147 165 Commercial real estate 17,803 13,600 Residential real estate 4,136 4,172 Consumer 57 — Outstanding balance 23,047 17,937 Carrying amount 22,551 17,009 Allowance for loan losses 1,250 1,197 Carrying amount, net of allowance for loan losses $ 21,301 $ 15,812 The following table summarizes PCI loans acquired by the Company during the current period as of the merger date and at the end of the period: For the Year Ended December 31, 2019 (in thousands) Contractually required principal payments $ 15,074 Nonaccretable discount (2,957 ) Fair value of acquired loans $ 12,116 Loans at end of period $ 7,666 |
Schedule of Changes in Accretable Yield for Purchased Credit Impaired Loans | Changes in the accretable yield for loans acquired and accounted for under ASC 310-30 were as follows for the year ended December 31, 2019 and 2018 : For the Year Ended December 31, 2019 2018 (in thousands) Balance at beginning of period $ 3,840 $ 4,304 Purchases — — Accretion (626 ) (802 ) Reclassification from nonaccretable difference 68 338 Balance at end of period $ 3,282 $ 3,840 |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the total notional amounts and gross fair values of the Company’s derivatives. 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 December 31, 2019 As of December 31, 2018 Fair Value Fair Value Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities (in thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps $ 16,734 $ — $ 1,113 $ 8,927 $ — $ 223 Total derivatives designated as hedging instruments $ 16,734 $ — $ 1,113 $ 8,927 $ — $ 223 Derivatives not designated as hedging instruments: Interest rate swaps $ 113,632 $ 1,824 $ 1,999 $ 13,830 $ 321 $ 359 RPAs 14,711 24 130 10,112 — 85 Total derivatives not designated as hedging instruments $ 128,343 $ 1,848 $ 2,129 $ 23,942 $ 321 $ 444 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | 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 years ended December 31, 2019 , 2018 , and 2017 : Location and Amount of Gain (Loss) Recognized in Income on Fair Value Hedging Relationships For the Years Ended December 31, 2019 2018 2017 Interest Income Other Income Interest Income Other Income Interest Income Other Income (in thousands) 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 $ — $ (2 ) $ — $ — $ — The effects of fair value hedging: Gain (Loss) on fair value hedging relationships in subtopic 815-20: Interest contracts: Hedged items 891 — 221 — — — Derivative designated as hedging instruments (890 ) — (223 ) — — — |
Hedged Items In Fair Value Hedging Relationship | As of December 31, 2019 , 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 $ 17,849 $ 1,111 |
Derivatives Not Designated as Hedging Instruments | The following table represents the notional amounts and the gross fair values of RPAs purchased and sold outstanding as of December 31, 2019 and December 31, 2018 . December 31, 2019 December 31, 2018 Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities RPAs - protection sold $ 4,702 $ 24 $ — $ — $ — $ — RPAs - protection purchased 10,009 — 130 10,112 — 85 Total RPAs $ 14,711 $ 24 $ 130 $ 10,112 $ — $ 85 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 years ended December 31, 2019 , 2018 , and 2017 : Location in the Consolidated Statements of Income For the Years Ended December 31, (in thousands) 2019 2018 2017 Interest rate swaps Other income $ (138 ) $ (38 ) $ — RPAs Other income (117 ) 115 — Total $ (255 ) $ 77 $ — December 31, 2019 and December 31, 2018 . December 31, 2019 Customer Counterparties Financial Counterparties Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Swaps $ 56,816 $ 1,824 $ — $ 56,816 $ — $ 1,999 December 31, 2018 Customer Counterparties Financial Counterparties Fair Value Fair Value (in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Swaps $ 6,915 $ 321 $ — $ 6,915 $ — $ 359 |
Offsetting Derivative Assets | The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of December 31, 2019 and December 31, 2018 . 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 December 31, 2019 Asset Derivatives $ 1,848 $ — $ 1,848 $ — $ — $ 1,848 Liability Derivatives (3,242 ) — (3,242 ) — (3,280 ) 38 As of December 31, 2018 Asset Derivatives $ 321 $ — $ 321 $ — $ — $ 321 Liability Derivatives (667 ) — (667 ) — (530 ) (137 ) |
Offsetting Derivative Liabilities | The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of December 31, 2019 and December 31, 2018 . 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 December 31, 2019 Asset Derivatives $ 1,848 $ — $ 1,848 $ — $ — $ 1,848 Liability Derivatives (3,242 ) — (3,242 ) — (3,280 ) 38 As of December 31, 2018 Asset Derivatives $ 321 $ — $ 321 $ — $ — $ 321 Liability Derivatives (667 ) — (667 ) — (530 ) (137 ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 2018 (in thousands) Land $ 14,530 $ 12,464 Buildings and leasehold improvements 89,605 75,775 Furniture and equipment 20,769 17,752 Construction in process 359 95 Premises and equipment 125,263 106,086 Accumulated depreciation and amortization 34,540 30,313 Premises and equipment, net $ 90,723 $ 75,773 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the changes in the carrying amount of goodwill for the periods indicated: For the Years Ended December 31, 2019 2018 (in thousands) Goodwill, beginning of period $ 64,654 $ 64,654 Goodwill from acquisition of ATBancorp 27,264 — Total goodwill, end of period $ 91,918 $ 64,654 |
Schedule of Indefinite-Lived Intangible Assets | The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets for the periods indicated: As of December 31, 2019 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Core deposit intangible $ 41,745 $ (21,032 ) $ 20,713 $ 18,206 $ (16,233 ) $ 1,973 Customer relationship intangible 5,265 (1,195 ) 4,070 455 (259 ) 196 Other 2,700 (2,305 ) 395 2,700 (2,034 ) 666 $ 49,710 $ (24,532 ) $ 25,178 $ 21,361 $ (18,526 ) $ 2,835 Indefinite-lived trade name intangible $ 7,040 $ 7,040 |
Schedule of Finite-Lived Intangible Assets | The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets for the periods indicated: As of December 31, 2019 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Core deposit intangible $ 41,745 $ (21,032 ) $ 20,713 $ 18,206 $ (16,233 ) $ 1,973 Customer relationship intangible 5,265 (1,195 ) 4,070 455 (259 ) 196 Other 2,700 (2,305 ) 395 2,700 (2,034 ) 666 $ 49,710 $ (24,532 ) $ 25,178 $ 21,361 $ (18,526 ) $ 2,835 Indefinite-lived trade name intangible $ 7,040 $ 7,040 |
Schedule of Future Amortization Expense | The following table summarizes future amortization expense of intangible assets: Core Customer Deposit Relationship Intangible Intangible Other Totals Year ending December 31, (in thousands) 2020 $ 5,407 $ 1,435 $ 133 $ 6,975 2021 4,190 1,062 106 5,358 2022 3,487 797 79 4,363 2023 2,833 518 51 3,402 2024 2,180 239 24 2,443 Thereafter 2,616 19 2 2,637 Total $ 20,713 $ 4,070 $ 395 $ 25,178 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Schedule of Other Assets | The components of the Company’s other assets as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 2018 (in thousands) Assets held for sale $ 580 $ — Bank-owned life insurance 81,625 60,989 Interest receivable 18,525 14,736 FHLB stock 15,381 14,678 Mortgage servicing rights 7,026 2,803 Operating leases right-of-use asset 4,499 — Federal & state taxes, current 2,318 2,361 Federal & state taxes, deferred 3,530 8,273 Other receivables/assets 14,476 11,262 $ 147,960 $ 115,102 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposit Liabilities | The composition of the Company’s deposits as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 2018 (in thousands) Non-interest-bearing demand $ 662,209 $ 439,133 Interest-bearing checking 962,830 683,894 Money market 763,028 555,839 Savings 387,142 210,416 Certificates of deposit under $250,000 682,232 532,395 Certificates of deposit of $250,000 or more 271,214 191,252 Total deposits $ 3,728,655 $ 2,612,929 |
Time Deposit Maturities | At December 31, 2019 , the scheduled maturities of certificates of deposits were as follows: (in thousands) 2020 $ 678,107 2021 183,458 2022 59,374 2023 19,000 2024 12,670 Thereafter 837 Total $ 953,446 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Debt [Abstract] | |
Schedule of Short-term Debt | Short-term borrowings were as follows as of December 31, 2019 and December 31, 2018 : December 31, 2019 December 31, 2018 Weighted Average Cost Balance Weighted Average Cost Balance (dollars in thousands) Securities sold under agreements to repurchase 1.06 % $ 117,249 1.00 % $ 74,522 Federal Home Loan Bank overnight advances 1.73 22,100 2.60 56,900 Total 1.17 % $ 139,349 1.69 % $ 131,422 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, by Type, Current and Noncurrent [Abstract] | |
Schedule of Subordinated Borrowing | On May 1, 2019, through the acquisition of ATBancorp, the Company assumed the junior subordinated notes issued to ATBancorp Statutory Trust I and ATBancorp Statutory Trust II. The table below summarizes the terms of each issuance of junior subordinated notes outstanding as of December 31, 2019 and December 31, 2018 : Face Value Book Value Interest Rate Year-end Interest Rate Maturity Date Callable Date December 31, 2019 (in thousands) ATBancorp Statutory Trust I $ 7,732 $ 6,814 Three-month LIBOR + 1.68% 3.57 % 06/15/2036 06/15/2011 ATBancorp Statutory Trust II 12,372 10,794 Three-month LIBOR + 1.65% 3.54 % 09/15/2037 06/15/2012 Central Bancshares Capital Trust II 7,217 6,783 Three-month LIBOR + 3.50% 5.39 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I 2,062 1,732 Three-month LIBOR + 2.15% 4.08 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II 15,464 15,464 Three-month LIBOR + 1.59% 3.48 % 12/15/2037 12/15/2012 Total $ 44,847 $ 41,587 December 31, 2018 Central Bancshares Capital Trust II $ 7,217 $ 6,730 Three-month LIBOR + 3.50% 6.29 % 03/15/2038 03/15/2013 Barron Investment Capital Trust I 2,062 1,694 Three-month LIBOR + 2.15% 4.97 % 09/23/2036 09/23/2011 MidWestOne Statutory Trust II 15,464 15,464 Three-month LIBOR + 1.59% 4.38 % 12/15/2037 12/15/2012 Total $ 24,743 $ 23,888 |
Schedule of Long-term Debt Instruments | Long-term borrowings were as follows as of December 31, 2019 and December 31, 2018 : December 31, 2019 December 31, 2018 Weighted Average Cost Balance (in thousands) Weighted Average Cost Balance (in thousands) Finance lease payable 8.89 % $ 1,224 8.89 % $ 1,338 FHLB borrowings 2.25 145,700 2.45 136,000 Notes payable to unaffiliated bank 3.44 32,250 4.13 7,500 Total 2.51 % $ 179,174 2.60 % $ 144,838 |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | As of December 31, 2019 , FHLB borrowings were as follows: Weighted Average Rate Amount (in thousands) Due in 2020 1.93 % $ 54,400 Due in 2021 2.07 % 43,000 Due in 2022 2.68 % 31,000 Due in 2023 2.79 % 11,000 Due in 2024 3.15 % 6,000 Thereafter — % — Total 145,400 Valuation adjustment from acquisition accounting 300 Total $ 145,700 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income taxes for the years ended December 31, 2019 , 2018 and 2017 are summarized as follows: December 31, 2019 2018 2017 (in thousands) Current: Federal tax expense $ 1,217 $ 5,293 $ 7,289 State tax expense 2,353 3,004 2,435 Deferred: Deferred income tax expense 3,003 (680 ) 652 Total income tax provision $ 6,573 $ 7,617 $ 10,376 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the expected federal income tax expense to the income tax expense included in the consolidated statements of income was as follows: Year ended December 31, 2019 2018 2017 Amount % of Pretax Income Amount % of Pretax Income Amount % of Pretax Income (dollars in thousands) Computed “expected” tax expense $ 10,543 21.0 % $ 7,973 21.0 % $ 10,176 35.0 % Tax-exempt interest (2,392 ) (4.8 ) (1,876 ) (4.9 ) (3,182 ) (10.9 ) Bank-owned life insurance (394 ) (0.8 ) (337 ) (0.9 ) (485 ) (1.7 ) State income taxes, net of federal income tax benefit 2,688 5.3 2,040 5.4 1,307 4.5 Non-deductible acquisition expenses 177 0.4 122 0.3 — — General business credits (4,090 ) (8.1 ) (343 ) (0.9 ) (466 ) (1.6 ) Federal income tax rate change — — — — 3,212 11.1 Other 41 0.1 38 0.1 (186 ) (0.7 ) Total income tax provision $ 6,573 13.1 % $ 7,617 20.1 % $ 10,376 35.7 % |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets as of December 31, 2019 and 2018 consisted of the following components: December 31, 2019 2018 (in thousands) Deferred income tax assets: Allowance for loan losses $ 7,577 $ 7,636 Deferred compensation 4,100 1,361 Net operating losses (state net operating loss carryforwards) 4,477 4,283 Unrealized losses on investment securities — 1,999 Accrued compensation 1,496 816 ROU liabilities 1,388 — Tax credit carryforward 611 — Other 1,541 1,415 Gross deferred tax assets 21,190 17,510 Deferred income tax liabilities: Premises and equipment depreciation and amortization 4,759 2,947 Purchase accounting adjustments 3,171 769 Mortgage servicing rights 1,831 730 Unrealized gains on investment securities 1,544 — ROU assets 1,388 — Other 490 508 Gross deferred tax liabilities 13,183 4,954 Net deferred income tax asset 8,007 12,556 Valuation allowance 4,477 4,283 Net deferred tax asset $ 3,530 $ 8,273 |
Employee Benefit Plan Employee
Employee Benefit Plan Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans [Abstract] | |
Company Contribution Plan | Company matching contributions for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Company contributions $ 1,617 $ 1,361 $ 1,306 The Company has an ESOP covering all employees fulfilling minimum age and service requirements. Employer contributions are discretionary and may be made to the plan in an amount equal to a percentage of each participating employee’s salary. The ESOP contribution expense for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Company contributions $ 1,514 $ 690 $ 1,081 The Company provides Health Savings Account contributions to its employees enrolled in high deductible plans. Company contributions for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Company contributions $ 315 $ 215 $ 195 |
Schedule of Changes in Projected Benefit Obligations | Changes in the liability related to the SERPs, included in other liabilities, were as follows for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Balance, beginning $ 1,867 $ 2,061 $ 2,278 Company contributions and interest 117 156 146 Cash payments made (352 ) (350 ) (363 ) Balance, ending $ 1,632 $ 1,867 $ 2,061 Changes in the salary continuation agreements, included in other liabilities, were as follows for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Balance, beginning $ 1,104 $ 1,251 $ 1,389 Plans acquired in ATBancorp merger 11,058 — — Company paid interest 145 75 84 Cash payments made (6,855 ) (222 ) (222 ) Balance, ending $ 5,452 $ 1,104 $ 1,251 |
Deferred Compensation Plans | Changes in the deferred compensation agreements, included in other liabilities, were as follows for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Balance, beginning $ 855 $ 715 $ 529 Plans acquired in ATBancorp merger 5,958 — — Employee deferrals 157 179 193 Company paid interest 395 35 24 Cash payments made (344 ) (74 ) (31 ) Balance, ending $ 7,021 $ 855 $ 715 December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Balance, beginning $ 1,442 $ 1,172 $ 983 Company deferral expense 228 270 189 Balance, ending $ 1,670 $ 1,442 $ 1,172 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Unit Activity | The following is a summary of nonvested restricted stock unit activity for the year ended December 31, 2019 : Weighted-Average Shares Grant-Date Fair Value Nonvested at December 31, 2018 83,750 $ 31.63 Granted 49,040 29.53 Vested (34,810 ) 31.21 Forfeited (8,190 ) 31.83 Nonvested at December 31, 2019 89,790 $ 30.63 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Following are the calculations for basic and diluted earnings per common share: Year Ended December 31, 2019 2018 2017 (dollars in thousands, except per share amounts) Basic Earnings Per Share: Net income $ 43,630 $ 30,351 $ 18,699 Weighted average shares outstanding 14,869,952 12,219,725 12,038,499 Basic earnings per common share $ 2.93 $ 2.48 $ 1.55 Diluted Earnings Per Share: Net income $ 43,630 $ 30,351 $ 18,699 Weighted average shares outstanding, included all dilutive potential shares 14,884,933 12,237,153 12,062,577 Diluted earnings per common share $ 2.93 $ 2.48 $ 1.55 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | A comparison of the Company’s and the Bank’s capital with the corresponding minimum regulatory requirements in effect as of December 31, 2019 and December 31, 2018 , is presented below: Actual For Capital Adequacy Purposes With Capital Conservation Buffer(1) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio (1) Amount Ratio (dollars in thousands) At December 31, 2019: Consolidated: Total capital/risk weighted assets $ 463,601 11.34 % $ 429,077 10.50 % N/A N/A Tier 1 capital/risk weighted assets 428,021 10.47 347,348 8.50 N/A N/A Common equity tier 1 capital/risk weighted assets 386,434 9.46 286,051 7.00 N/A N/A Tier 1 leverage capital/average assets 428,021 9.48 180,529 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $ 482,106 11.83 % $ 427,877 10.50 % $ 407,502 10.00 % Tier 1 capital/risk weighted assets 453,027 11.12 346,377 8.50 326,002 8.00 Common equity tier 1 capital/risk weighted assets 453,027 11.12 285,251 7.00 264,876 6.50 Tier 1 leverage capital/average assets 453,027 10.06 180,209 4.00 231,166 5.00 At December 31, 2018: Consolidated: Total capital/risk weighted assets $ 342,054 12.23 % $ 276,283 9.875 % N/A N/A Tier 1 capital/risk weighted assets 312,747 11.18 220,327 7.875 N/A N/A Common equity tier 1 capital/risk weighted assets 288,859 10.32 178,360 6.375 N/A N/A Tier 1 leverage capital/average assets 312,747 9.73 128,531 4.000 N/A N/A MidWest One Bank: Total capital/risk weighted assets $ 333,074 11.94 % $ 275,468 9.875 % $ 278,955 10.00 % Tier 1 capital/risk weighted assets 303,767 10.89 219,677 7.875 223,164 8.00 Common equity tier 1 capital/risk weighted assets 303,767 10.89 177,833 6.375 181,320 6.50 Tier 1 leverage capital/average assets 303,767 9.47 128,259 4.000 160,324 5.00 (1) Includes the capital conservation buffer of 1.875% at December 31, 2018 and 2.50% at December 31, 2019 . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Credit Commitments | A summary of the Bank’s commitments at December 31, 2019 and 2018 , is as follows: December 31, 2019 2018 (in thousands) Commitments to extend credit $ 859,212 $ 521,270 Commitments to sell loans 5,400 666 Standby letters of credit 36,192 16,709 Total $ 900,804 $ 538,645 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following is an analysis of the changes in the loans to related parties during the years ended December 31, 2019 and 2018 : Year Ended December 31, 2019 2018 (in thousands) Balance, beginning $ 12,655 $ 14,131 Net increase (decrease) due to change in related parties 12,163 (2,518 ) Advances 4,057 2,059 Collections (1,240 ) (1,017 ) Balance, ending $ 27,635 $ 12,655 |
Estimated Fair Value of Finan_2
Estimated Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured on Recurring Basis | The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2019 and 2018 by level within the fair value hierarchy: Fair Value Measurement at December 31, 2019 Using Total Level 1 Level 2 Level 3 (in thousands) Assets: Available for sale debt securities: U.S. Government agencies and corporations $ 441 $ — $ 441 $ — State and political subdivisions 257,205 — 257,205 — Mortgage-backed securities 43,530 — 43,530 — Collateralized mortgage obligations 292,946 — 292,946 — Corporate debt securities 191,855 — 191,855 — Derivative assets 1,848 — 1,848 — Liabilities: Derivative liabilities $ 3,242 $ — $ 3,242 $ — Fair Value Measurement at December 31, 2018 Using Total Level 1 Level 2 Level 3 (in thousands) Assets: Available for sale debt securities: U.S. Government agencies and corporations $ 5,495 $ — $ 5,495 $ — State and political subdivisions 121,901 — 121,901 — Mortgage-backed securities 50,653 — 50,653 — Collateralized mortgage obligations 169,928 — 169,928 — Corporate debt securities 66,124 — 66,124 — Derivative assets 321 — 321 — Liabilities: Derivative liabilities $ 667 $ — $ 667 $ — |
Schedule of Nonrecurring | The following table discloses the Company’s estimated fair value amounts of its assets recorded at fair value on a nonrecurring basis: Fair Value Measurement at December 31, 2019 Using (in thousands) Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 6,749 $ — $ — $ 6,749 Foreclosed assets, net 3,706 — — 3,706 Fair Value Measurement at December 31, 2018 Using (in thousands) Total Level 1 Level 2 Level 3 Collateral dependent impaired loans $ 8,328 $ — $ — $ 8,328 Foreclosed assets, net 535 — — 535 |
Fair Value Measurement Inputs and Valuation Techniques | 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 December 31, 2019 , categorized within Level 3 of the fair value hierarchy: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at December 31, 2019 Fair Value at December 31, 2018 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent impaired loans $ 6,749 8,328 Fair value of collateral Valuation adjustments — % 75 % 18 % Foreclosed assets, net $ 3,706 535 Fair value of collateral Valuation adjustments 5 % 46 % 10 % |
Fair Value, by Balance Sheet Grouping | The carrying amount and estimated fair value of financial instruments not carried at fair value, at December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 73,484 $ 73,484 $ 73,484 $ — $ — Debt securities available for sale 785,977 785,977 — 785,977 — Loans held for sale 5,400 5,476 — 5,476 — Loans held for investment, net 3,422,187 3,427,952 — — 3,427,952 Interest receivable 18,525 18,525 — 18,525 — Federal Home Loan Bank stock 15,381 15,381 — 15,381 — Derivative assets 1,848 1,848 — 1,848 — Financial liabilities: Non-interest bearing 662,209 662,209 662,209 — — Interest-bearing 3,066,446 3,066,427 2,113,000 953,427 — Short-term borrowings 139,349 139,349 139,349 — — Finance leases payable 1,224 1,224 — 1,224 — Federal Home Loan Bank borrowings 145,700 146,913 — 146,913 — Junior subordinated notes issued to capital trusts 41,587 39,391 — 39,391 — Subordinated debentures 10,899 11,083 — 11,083 — Other long-term debt 32,250 32,250 — 32,250 — Derivative liabilities 3,242 3,242 — 3,242 — December 31, 2018 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and cash equivalents $ 45,480 $ 45,480 $ 45,480 $ — $ — Debt securities available for sale 414,101 414,101 — 414,101 — Debt securities held to maturity 195,822 192,564 — 192,564 — Loans held for sale 666 678 — 678 — Loans held for investment, net 2,369,472 2,343,654 — — 2,343,654 Interest receivable 14,736 14,736 — 14,736 — Federal Home Loan Bank stock 14,678 14,678 — 14,678 — Derivative assets 321 321 — 321 — Financial liabilities: Non-interest bearing 439,133 439,133 439,133 — — Interest-bearing 2,173,796 2,166,518 1,450,149 716,369 — Short-term borrowings 131,422 131,422 131,422 — — Finance leases payable 1,338 1,338 — 1,338 — Federal Home Loan Bank borrowings 136,000 134,995 — 134,995 — Junior subordinated notes issued to capital trusts 23,888 21,215 — 21,215 — Subordinated debentures — — — — — Other long-term debt 7,500 7,500 — 7,500 — Derivative liabilities 667 667 — 667 — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Balance sheet information | Supplemental balance sheet information related to leases was as follows: December 31, 2019 (dollars in thousands) Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 4,499 Finance lease right-of-use asset Premises and equipment, net 637 Lease Liabilities Operating lease liability Other liabilities $ 5,430 Finance lease liability Long-term debt 1,225 Weighted-average remaining lease term Operating leases 8.90 years Finance lease 6.67 years Weighted-average discount rate Operating leases 3.78 % Finance lease 8.89 % |
Lease costs | The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Amounts for the years ended December 31, 2017 and 2018 are not included in the table below because the accounting standard was adopted as of January 1, 2019. Years Ended December 31, 2019 2018 2017 Lease Costs (in thousands) Operating lease cost $ 1,068 $ — $ — Variable lease cost 148 — — Short-term lease cost — — — Interest on lease liabilities (1) 113 — — Amortization of right-of-use assets 96 — — Net lease cost $ 1,425 $ — $ — Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 989 $ — $ — Operating cash flows from finance lease 113 — — Finance cash flows from finance lease 113 — — Right-of-use assets obtained in exchange for new operating lease liabilities 6,250 — — Right-of-use assets obtained in exchange for new finance lease liabilities — — — (1) Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net. |
Future minimum payments for operating leases | Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows: Finance Leases Operating Leases (in thousands) Twelve Months Ended: December 31, 2020 $ 231 $ 1,114 December 31, 2021 235 1,074 December 31, 2022 240 973 December 31, 2023 245 912 December 31, 2024 250 682 Thereafter 426 2,132 Total undiscounted lease payments $ 1,627 $ 6,887 Amounts representing interest (402 ) (1,457 ) Lease liability $ 1,225 $ 5,430 |
Future minimum payments for finance leases | Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows: Finance Leases Operating Leases (in thousands) Twelve Months Ended: December 31, 2020 $ 231 $ 1,114 December 31, 2021 235 1,074 December 31, 2022 240 973 December 31, 2023 245 912 December 31, 2024 250 682 Thereafter 426 2,132 Total undiscounted lease payments $ 1,627 $ 6,887 Amounts representing interest (402 ) (1,457 ) Lease liability $ 1,225 $ 5,430 |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | The following are condensed balance sheets of MidWest One Financial Group, Inc. as of December 31, 2019 and 2018 (parent company only): As of December 31, 2019 2018 Balance Sheets (in thousands) Assets Cash $ 10,661 $ 9,611 Investment in subsidiaries 575,508 372,595 Income tax receivable 1,182 117 Deferred income taxes — 44 Bank-owned life insurance 5,127 4,999 Other assets 2,256 1,482 Total assets $ 594,734 $ 388,848 Liabilities and Shareholders’ Equity Liabilities: Long-term debt $ 84,736 $ 31,388 Deferred income taxes 433 — Other liabilities 583 393 Total liabilities 85,752 31,781 Shareholders’ equity: Capital stock, preferred — — Capital stock, common 16,581 12,463 Additional paid-in capital 297,390 187,813 Retained earnings 201,105 168,951 Treasury stock (10,466 ) (6,499 ) Accumulated other comprehensive loss 4,372 (5,661 ) Total shareholders’ equity 508,982 357,067 Total liabilities and shareholders’ equity $ 594,734 $ 388,848 |
Schedule of Condensed Income Statement | The following are condensed statements of income of MidWest One Financial Group, Inc. for the years ended December 31, 2019 , 2018 , and 2017 (parent company only): Year Ended December 31, 2019 2018 2017 Statements of Income (in thousands) Dividends received from subsidiaries $ 15,000 $ 25,017 $ 6,500 Interest income and dividends on investment securities 84 43 47 Investment securities gains 47 (48 ) — Interest on debt (3,439 ) (1,596 ) (1,406 ) Bank-owned life insurance income 130 127 126 Income from MidWest One Insurance Services, Inc. 943 — — Operating expenses (4,130 ) (2,940 ) (2,281 ) Income before income taxes and equity in subsidiaries’ undistributed income 8,635 20,603 2,986 Income tax benefit (1,394 ) (823 ) (1,137 ) Income before equity in subsidiaries’ undistributed income 10,029 21,426 4,123 Equity in subsidiaries’ undistributed income 33,601 8,925 14,576 Net income $ 43,630 $ 30,351 $ 18,699 |
Schedule of Condensed Cash Flow Statement | The following are condensed statements of cash flows of MidWest One Financial Group, Inc. for the years ended December 31, 2019 , 2018 , and 2017 (parent company only): Year Ended December 31, 2019 2018 2017 Statements of Cash Flows (in thousands) Cash flows from operating activities: Net income $ 43,630 $ 30,351 $ 18,699 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed income of subsidiaries, net of dividends and distributions (33,601 ) (8,925 ) (14,576 ) Amortization 134 95 101 Increase (decrease) in deferred income taxes, net (43 ) (42 ) (93 ) Stock-based compensation 1,156 1,030 868 Gain on sale of assets of MidWest One Insurance Services, Inc. (1,076 ) — — Increase in cash surrender value of bank-owned life insurance (128 ) (127 ) (126 ) Change in: Other assets (403 ) (405 ) 1,617 Other liabilities (4 ) 59 13 Net cash provided by operating activities 9,665 22,036 6,503 Cash flows from investing activities Proceeds from sales of available for sale securities 43 1 1 Purchase of available for sale securities (9 ) (10 ) (10 ) Proceeds from sale of assets of MidWest One Insurance Services, Inc. 1,175 — — Cash and earnings transferred in dissolution of MidWest One Insurance Services, Inc. 631 — — Net cash paid in business acquisition (18,624 ) — — Investment in subsidiary — — (16,200 ) Net cash used in investing activities (16,784 ) (9 ) (16,209 ) Cash flows from financing activities: Net increase (decrease) in: Long-term debt 24,750 (5,000 ) (5,000 ) Proceeds from share-based award activity — 137 100 Taxes paid relating to net share settlement of equity awards (103 ) (89 ) (114 ) Dividends paid (11,476 ) (9,535 ) (8,061 ) Issuance of common stock — — 25,688 Expenses incurred in stock issuance (323 ) — (1,328 ) Repurchase of common stock (4,679 ) (2,129 ) — Net cash provided by (used in) financing activities 8,169 (16,616 ) 11,285 Net increase in cash 1,050 5,411 1,579 Cash Balance: Beginning 9,611 4,200 2,621 Ending $ 10,661 $ 9,611 $ 4,200 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Three Months Ended December 31 September 30 June 30 March 31 (in thousands, except per share amounts) 2019 Interest income $ 50,026 $ 54,076 $ 44,951 $ 33,388 Interest expense 10,442 10,818 10,119 7,412 Net interest income 39,584 43,258 34,832 25,976 Provision for loan losses 604 4,264 696 1,594 Noninterest income 9,036 8,004 8,796 5,410 Noninterest expense 36,436 31,442 29,040 20,617 Income before income taxes 11,580 15,556 13,892 9,175 Income tax expense (1,791 ) 3,256 3,218 1,890 Net income $ 13,371 $ 12,300 $ 10,674 $ 7,285 Net income per common share - basic $ 0.83 $ 0.76 $ 0.72 $ 0.60 Net income per common share - diluted $ 0.83 $ 0.76 $ 0.72 $ 0.60 2018 Interest income $ 33,224 $ 32,210 $ 31,822 $ 30,853 Interest expense 6,671 6,099 5,392 4,679 Net interest income 26,553 26,111 26,430 26,174 Provision for loan losses 3,250 950 1,250 1,850 Noninterest income 5,796 6,045 5,693 5,681 Noninterest expense 19,779 22,622 20,586 20,228 Income before income taxes 9,320 8,584 10,287 9,777 Income tax expense 1,696 1,806 2,131 1,984 Net income $ 7,624 $ 6,778 $ 8,156 $ 7,793 Net income per common share - basic $ 0.62 $ 0.55 $ 0.67 $ 0.64 Net income per common share - diluted $ 0.62 $ 0.55 $ 0.67 $ 0.64 |
Nature of Business and Signif_4
Nature of Business and Significant Accounting Policies - Nature of Business (Details) $ in Thousands | Jun. 30, 2019USD ($) | May 01, 2019USD ($)shares | Dec. 31, 2019USD ($)count | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Entity Information [Line Items] | |||||
Gain on sale of MidWestOne Insurance Services, Inc. | $ 1,076 | $ 0 | $ 0 | ||
ATBancorp | |||||
Entity Information [Line Items] | |||||
Number of shares issued in merger (in shares) | shares | 4,117,536 | ||||
Share consideration | $ 113,677 | ||||
Cash consideration | $ 34,766 | ||||
MidWestOne Bank | |||||
Entity Information [Line Items] | |||||
Number of branches | count | 57 | ||||
MidWestOne Insurance Services, Inc | |||||
Entity Information [Line Items] | |||||
Gain on sale of MidWestOne Insurance Services, Inc. | $ 1,100 |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies - Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings and leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 39 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Nature of Business and Signif_6
Nature of Business and Significant Accounting Policies - Common Stock (Details) - Par Value - USD ($) | Aug. 20, 2019 | Mar. 17, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 16, 2016 | Jul. 21, 2016 |
Entity Information [Line Items] | |||||||
Stock repurchase (in shares) | 38,746 | ||||||
Issuance of common stock (shares) | 750,000 | 750,000 | |||||
Sale of Stock (in USD per share) | $ 34.25 | ||||||
July 21 2016 Share Repurchase Program | |||||||
Entity Information [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 5,000,000 | ||||||
Stock repurchase (in shares) | 33,998 | ||||||
Stock repurchased | $ 1,100,000 | ||||||
October 16, 2018 Share Repurchase Program | |||||||
Entity Information [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 5,000,000 | ||||||
Stock repurchase (in shares) | 166,729 | 42,130 | |||||
Stock repurchased | $ 4,700,000 | $ 1,000,000 | |||||
August 20, 2019 Share Repurchase Program | |||||||
Entity Information [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 10,000,000 | ||||||
Stock repurchase (in shares) | 34,157 | ||||||
Stock repurchased | $ 1,000,000 | ||||||
Shares available for repurchase | $ 9,000,000 | ||||||
Over-Allotment Option | |||||||
Entity Information [Line Items] | |||||||
Issuance of common stock (shares) | 250,000 |
- Schedule of Cumulative Other
- Schedule of Cumulative Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Cumulative Other Comprehensive Income [Line Items] | ||||
Accumulated other comprehensive gain (loss), net of tax | $ 508,982 | $ 357,067 | $ 340,304 | $ 305,456 |
Accumulated Other Comprehensive Income (Loss) | ||||
Schedule of Cumulative Other Comprehensive Income [Line Items] | ||||
Unrealized gains (losses) on securities available for sale | 5,916 | (7,660) | (3,530) | |
Less: Tax effect | 1,544 | (1,999) | (928) | |
Accumulated other comprehensive gain (loss), net of tax | $ 4,372 | $ (5,661) | $ (2,602) | $ (1,133) |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - ATBancorp | May 01, 2019USD ($)branch$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Percentage acquired | 100.00% | |||
Cash to be paid per share | $ 992.51 | |||
Sale of Stock (in USD per share) | $ / shares | $ 28.18 | |||
Share consideration | $ 113,677,000 | |||
Business combination net liquidity discount value | 2,400,000 | |||
Total merger consideration | 148,443,000 | |||
Premises and equipment | $ 18,327,000 | $ 18,327,000 | $ 0 | $ 0 |
Number of branch locations | branch | 17 | |||
Other intangible assets | $ 28,349,000 | |||
Short-term borrowings | 100,761,000 | 100,761,000 | 0 | 0 |
Long-term debt | $ 71,234,000 | |||
Par Value | ||||
Business Acquisition [Line Items] | ||||
Stock to be issued, exchange ratio | shares | 117.55 | |||
Core deposit intangible | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets | 23,539,000 | 0 | 0 | |
Estimated useful life of asset | 8 years | |||
Trust customer intangible | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets | $ 4,810,000 | $ 0 | $ 0 | |
Federal funds purchased | ||||
Business Acquisition [Line Items] | ||||
Short-term borrowings | $ 9,400,000 | |||
Securities sold under agreements to repurchase | ||||
Business Acquisition [Line Items] | ||||
Short-term borrowings | 51,400,000 | |||
Federal Home Loan Bank overnight advances | ||||
Business Acquisition [Line Items] | ||||
Short-term borrowings | 40,000,000 | |||
Federal Home Loan Bank overnight advances | ||||
Business Acquisition [Line Items] | ||||
Long-term debt | 42,700,000 | |||
Junior Subordinated Debt | ||||
Business Acquisition [Line Items] | ||||
Long-term debt | 17,600,000 | |||
Subordinated Debt | ||||
Business Acquisition [Line Items] | ||||
Long-term debt | $ 10,900,000 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | May 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities assumed | ||||
Goodwill | $ 91,918 | $ 64,654 | $ 64,654 | |
ATBancorp | ||||
Merger consideration | ||||
Share consideration | $ 113,677 | |||
Cash consideration | 34,766 | |||
Total merger consideration | 148,443 | |||
Assets acquired | ||||
Cash and cash equivalents | 82,081 | |||
Debt securities available for sale | 99,056 | 99,056 | 0 | 0 |
Loans | 1,138,928 | 1,138,928 | 0 | 0 |
Premises and equipment | 18,327 | 18,327 | 0 | 0 |
Other intangible assets | 28,349 | |||
Foreclosed assets | 3,091 | 3,091 | 0 | 0 |
Other assets | 42,648 | 23,889 | 0 | 0 |
Total assets acquired | 1,412,480 | |||
Liabilities assumed | ||||
Deposits | 1,089,355 | 1,089,355 | 0 | 0 |
Short-term borrowings | 100,761 | 100,761 | 0 | 0 |
Long-term debt | 71,234 | |||
Other liabilities | 29,951 | 29,951 | 0 | 0 |
Total liabilities assumed | 1,291,301 | |||
Fair value of net assets acquired | 121,179 | |||
Goodwill | $ 27,264 | $ 27,264 | $ 0 | $ 0 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - ATBancorp - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total revenues (net interest income plus noninterest income) | $ 185,102 | $ 190,895 |
Net income | $ 45,871 | $ 42,751 |
Earnings per share - basic (in USD per share) | $ 2.84 | $ 2.62 |
Earnings per share - diluted (in USD per share) | $ 2.84 | $ 2.61 |
Business Combinations - Acquisi
Business Combinations - Acquisition-Related Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Compensation and employee benefits | $ 65,660 | $ 49,758 | $ 47,864 |
Occupancy expense of premises, net | 8,647 | 7,597 | 7,382 |
Legal and professional | 8,049 | 4,641 | 3,962 |
Data processing | 4,579 | 2,951 | 2,674 |
Other | 10,217 | 4,840 | $ 4,825 |
Transaction costs | 1,900 | 600 | |
ATBancorp | |||
Business Acquisition [Line Items] | |||
Compensation and employee benefits | 5,435 | 0 | |
Occupancy expense of premises, net | 483 | 2 | |
Legal and professional | 2,762 | 680 | |
Data processing | 90 | 100 | |
Other | 360 | 15 | |
Total ATBancorp acquisition-related expenses | $ 9,130 | $ 797 |
Debt Securities - Schedule of A
Debt Securities - Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 780,061 | |
Fair Value | 785,977 | $ 414,101 |
Debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 780,061 | 421,761 |
Gross unrealized gains | 8,359 | 1,261 |
Gross unrealized losses | 2,443 | 8,921 |
Fair Value | 785,977 | 414,101 |
U.S. Government agencies and corporations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 439 | 5,522 |
Gross unrealized gains | 2 | 0 |
Gross unrealized losses | 0 | 27 |
Fair Value | 441 | 5,495 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 253,750 | 121,403 |
Gross unrealized gains | 3,803 | 877 |
Gross unrealized losses | 348 | 379 |
Fair Value | 257,205 | 121,901 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 43,009 | 51,625 |
Gross unrealized gains | 536 | 100 |
Gross unrealized losses | 15 | 1,072 |
Fair Value | 43,530 | 50,653 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 293,911 | 176,134 |
Gross unrealized gains | 1,000 | 220 |
Gross unrealized losses | 1,965 | 6,426 |
Fair Value | 292,946 | 169,928 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 188,952 | 67,077 |
Gross unrealized gains | 3,018 | 64 |
Gross unrealized losses | 115 | 1,017 |
Fair Value | $ 191,855 | $ 66,124 |
Debt Securities - Schedule of H
Debt Securities - Schedule of Held to Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | $ 0 | $ 195,822 |
Gross unrealized gains | 646 | |
Gross unrealized losses | 3,904 | |
Fair Value | $ 0 | 192,564 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | 131,177 | |
Gross unrealized gains | 314 | |
Gross unrealized losses | 2,437 | |
Fair Value | 129,054 | |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | 11,016 | |
Gross unrealized gains | 1 | |
Gross unrealized losses | 331 | |
Fair Value | 10,686 | |
Collateralized mortgage obligations | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | 18,527 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 669 | |
Fair Value | 17,858 | |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity | 35,102 | |
Gross unrealized gains | 331 | |
Gross unrealized losses | 467 | |
Fair Value | $ 34,966 |
Debt Securities - Narrative (De
Debt Securities - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)countsecurity | Dec. 31, 2018USD ($)count | Dec. 31, 2017USD ($) | |
Debt Disclosure [Abstract] | |||
Transfer from debt securities held to maturity to available for sale | $ 186,447 | $ 0 | $ 0 |
Amortized cost | 780,061 | ||
Debt securities, unrealized gain (loss) | 2,800 | ||
Pledged securities | $ 264,800 | $ 197,200 | |
Available for sale securities in unrealized loss cost of percentage | 0.31% | ||
Number of securities | security | 807 | ||
Number of securities in unrealized loss position | count | 94 | 152 | |
Number of securities in unrealized loss position 12 months or more | count | 31 |
Debt Securities - Available for
Debt Securities - Available for Sale Securities in Continuous Loss Position (Details) $ in Thousands | Dec. 31, 2019USD ($)count | Dec. 31, 2018USD ($)count |
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | count | 94 | 152 |
Less than 12 Months, Fair Value | $ 138,531 | $ 33,307 |
Less than 12 Months, Unrealized Losses | 1,067 | 211 |
12 Months or More, Fair Value | 77,869 | 255,299 |
12 Months or More, Unrealized Losses | 1,376 | 8,710 |
Fair Value | 216,400 | 288,606 |
Unrealized Losses | $ 2,443 | $ 8,921 |
U.S. Government agencies and corporations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | count | 0 | 2 |
Less than 12 Months, Fair Value | $ 0 | $ 0 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 0 | 5,495 |
12 Months or More, Unrealized Losses | 0 | 27 |
Fair Value | 0 | 5,495 |
Unrealized Losses | $ 0 | $ 27 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | count | 47 | 75 |
Less than 12 Months, Fair Value | $ 27,161 | $ 27,508 |
Less than 12 Months, Unrealized Losses | 322 | 121 |
12 Months or More, Fair Value | 2,112 | 12,140 |
12 Months or More, Unrealized Losses | 26 | 258 |
Fair Value | 29,273 | 39,648 |
Unrealized Losses | $ 348 | $ 379 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | count | 7 | 24 |
Less than 12 Months, Fair Value | $ 963 | $ 1,893 |
Less than 12 Months, Unrealized Losses | 12 | 15 |
12 Months or More, Fair Value | 1,365 | 44,882 |
12 Months or More, Unrealized Losses | 3 | 1,057 |
Fair Value | 2,328 | 46,775 |
Unrealized Losses | $ 15 | $ 1,072 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | count | 33 | 40 |
Less than 12 Months, Fair Value | $ 103,395 | $ 3,906 |
Less than 12 Months, Unrealized Losses | 719 | 75 |
12 Months or More, Fair Value | 65,604 | 134,742 |
12 Months or More, Unrealized Losses | 1,246 | 6,351 |
Fair Value | 168,999 | 138,648 |
Unrealized Losses | $ 1,965 | $ 6,426 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Securities | count | 7 | 11 |
Less than 12 Months, Fair Value | $ 7,012 | $ 0 |
Less than 12 Months, Unrealized Losses | 14 | 0 |
12 Months or More, Fair Value | 8,788 | 58,040 |
12 Months or More, Unrealized Losses | 101 | 1,017 |
Fair Value | 15,800 | 58,040 |
Unrealized Losses | $ 115 | $ 1,017 |
Debt Securities - Held to Matur
Debt Securities - Held to Maturity Securities in Continuous Loss Position (Details) $ in Thousands | Dec. 31, 2018USD ($)count |
Schedule of Held-to-maturity Securities [Line Items] | |
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 242 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 38,568 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 609 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 80,826 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 3,295 |
Held to maturity securities, continuous unrealized loss position, fair value | 119,394 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 3,904 |
State and political subdivisions | |
Schedule of Held-to-maturity Securities [Line Items] | |
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 223 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 20,905 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 130 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 56,154 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 2,307 |
Held to maturity securities, continuous unrealized loss position, fair value | 77,059 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 2,437 |
Mortgage-backed securities | |
Schedule of Held-to-maturity Securities [Line Items] | |
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 6 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 9,486 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 298 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 1,138 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 33 |
Held to maturity securities, continuous unrealized loss position, fair value | 10,624 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 331 |
Collateralized mortgage obligations | |
Schedule of Held-to-maturity Securities [Line Items] | |
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 8 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 0 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 0 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 17,849 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 669 |
Held to maturity securities, continuous unrealized loss position, fair value | 17,849 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 669 |
Corporate debt securities | |
Schedule of Held-to-maturity Securities [Line Items] | |
Held to maturity, securities in unrealized loss positions, qualitative disclosure, number of positions | count | 5 |
Held to maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 8,177 |
Held to maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss | 181 |
Held to maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 5,685 |
Held to maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 286 |
Held to maturity securities, continuous unrealized loss position, fair value | 13,862 |
Held to maturity securities, continuous unrealized loss position, accumulated loss | $ 467 |
Debt Securities - Realized Gain
Debt Securities - Realized Gains and Losses On Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Proceeds from sales of debt securities available for sale | $ 125,452 | $ 14,490 | $ 22,538 |
Gross realized gains from sales of debt securities available for sale | 143 | 203 | 199 |
Gross realized losses from sales of debt securities available for sale | (56) | (6) | (11) |
Net realized gain from sales of debt securities available for sale | $ 87 | $ 197 | $ 188 |
Debt Securities - Investments C
Debt Securities - Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale Amortized Cost | ||
Due in one year or less, amortized cost | $ 22,635 | |
Due after one year through five years, amortized cost | 170,933 | |
Due after five years through ten years, amortized cost | 194,803 | |
Due after ten years, amortized cost | 54,770 | |
Total | 443,141 | |
Amortized cost | 780,061 | |
Debt Securities, Available For Sale Fair Value | ||
Due in one year or less, estimated fair value | 22,644 | |
Due after one year through five years, estimated fair value | 173,172 | |
Due after five years through ten years, estimated fair value | 198,926 | |
Due after ten years, estimated fair value | 54,759 | |
Total | 449,501 | |
Fair Value | 785,977 | $ 414,101 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale Amortized Cost | ||
Amortized cost | 43,009 | 51,625 |
Debt Securities, Available For Sale Fair Value | ||
Fair Value | 43,530 | 50,653 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale Amortized Cost | ||
Amortized cost | 293,911 | 176,134 |
Debt Securities, Available For Sale Fair Value | ||
Fair Value | $ 292,946 | $ 169,928 |
Loans Receivable and the Allo_3
Loans Receivable and the Allowance for Loan Losses - Composition Of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | $ 3,451,266 | $ 2,398,779 | ||
Allowance for loan losses | (29,079) | (29,307) | $ (28,059) | $ (21,850) |
Total loans held for investment, net | 3,422,187 | 2,369,472 | ||
Agricultural | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 140,446 | 96,956 | ||
Allowance for loan losses | (3,748) | (3,637) | (2,790) | (2,003) |
Commercial and Industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 835,236 | 533,188 | ||
Allowance for loan losses | (8,394) | (7,478) | (8,518) | (6,274) |
Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 1,814,859 | 1,267,328 | ||
Allowance for loan losses | (13,804) | (15,635) | (13,637) | (9,860) |
Residential Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 577,799 | 461,879 | ||
Allowance for loan losses | (2,685) | (2,349) | (2,870) | (3,458) |
Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 82,926 | 39,428 | ||
Allowance for loan losses | (448) | (208) | $ (244) | $ (255) |
Construction & development | Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 298,077 | 217,617 | ||
Farmland | Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 181,885 | 88,807 | ||
Multifamily | Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 227,407 | 134,741 | ||
Commercial real estate-other | Commercial Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 1,107,490 | 826,163 | ||
One- to four- family first liens | Residential Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | 407,418 | 341,830 | ||
One- to four- family junior liens | Residential Real Estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Proceeds from sale of loans | $ 170,381 | $ 120,049 |
Loans Receivable and the Allo_4
Loans Receivable and the Allowance for Loan Losses - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||||
Accretable discount | $ 3,282 | $ 3,840 | $ 4,304 | |
Unpaid principal balance, loans pledged to the FHLB | 945,900 | 444,600 | ||
Purchased credit-impaired loans, outstanding balance | 12,100 | $ 8,900 | ||
Financing receivable commitment to lend additional funds | 300 | |||
Contractually required principal payments | $ 15,074 | |||
ATBancorp | ||||
Financing Receivable, Impaired [Line Items] | ||||
Accretable discount | $ 25,500 | |||
Contractually required principal payments | $ 1,150,000 |
Loans Receivable and the Allo_5
Loans Receivable and the Allowance for Loan Losses - Loan Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans receivable | ||||
Individually evaluated for impairment | $ 33,495 | $ 22,788 | ||
Collectively evaluated for impairment | 3,395,220 | 2,358,982 | ||
Total | 3,451,266 | 2,398,779 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 3,663 | 5,284 | ||
Collectively evaluated for impairment | 24,166 | 22,826 | ||
Total | 29,079 | 29,307 | $ 28,059 | $ 21,850 |
Agricultural | ||||
Loans receivable | ||||
Individually evaluated for impairment | 4,312 | 4,090 | ||
Collectively evaluated for impairment | 135,246 | 92,866 | ||
Total | 140,446 | 96,956 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 212 | 322 | ||
Collectively evaluated for impairment | 3,536 | 3,315 | ||
Total | 3,748 | 3,637 | 2,790 | 2,003 |
Commercial and Industrial | ||||
Loans receivable | ||||
Individually evaluated for impairment | 12,242 | 8,957 | ||
Collectively evaluated for impairment | 822,939 | 524,182 | ||
Total | 835,236 | 533,188 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 2,198 | 2,159 | ||
Collectively evaluated for impairment | 6,194 | 5,318 | ||
Total | 8,394 | 7,478 | 8,518 | 6,274 |
Commercial Real Estate | ||||
Loans receivable | ||||
Individually evaluated for impairment | 16,082 | 7,957 | ||
Collectively evaluated for impairment | 1,781,306 | 1,246,589 | ||
Total | 1,814,859 | 1,267,328 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 1,180 | 2,683 | ||
Collectively evaluated for impairment | 11,836 | 12,232 | ||
Total | 13,804 | 15,635 | 13,637 | 9,860 |
Residential Real Estate | ||||
Loans receivable | ||||
Individually evaluated for impairment | 838 | 1,760 | ||
Collectively evaluated for impairment | 572,865 | 455,941 | ||
Total | 577,799 | 461,879 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 73 | 120 | ||
Collectively evaluated for impairment | 2,152 | 1,753 | ||
Total | 2,685 | 2,349 | 2,870 | 3,458 |
Consumer | ||||
Loans receivable | ||||
Individually evaluated for impairment | 21 | 24 | ||
Collectively evaluated for impairment | 82,864 | 39,404 | ||
Total | 82,926 | 39,428 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 448 | 208 | ||
Total | 448 | 208 | $ 244 | $ 255 |
Financial Asset Acquired with Credit Deterioration | ||||
Loans receivable | ||||
Purchased credit impaired loans | 22,551 | 17,009 | ||
Allowance for loan losses: | ||||
Purchased credit impaired loans | 1,250 | 1,197 | ||
Financial Asset Acquired with Credit Deterioration | Agricultural | ||||
Loans receivable | ||||
Purchased credit impaired loans | 888 | 0 | ||
Allowance for loan losses: | ||||
Purchased credit impaired loans | 0 | 0 | ||
Financial Asset Acquired with Credit Deterioration | Commercial and Industrial | ||||
Loans receivable | ||||
Purchased credit impaired loans | 55 | 49 | ||
Allowance for loan losses: | ||||
Purchased credit impaired loans | 2 | 1 | ||
Financial Asset Acquired with Credit Deterioration | Commercial Real Estate | ||||
Loans receivable | ||||
Purchased credit impaired loans | 17,471 | 12,782 | ||
Allowance for loan losses: | ||||
Purchased credit impaired loans | 788 | 720 | ||
Financial Asset Acquired with Credit Deterioration | Residential Real Estate | ||||
Loans receivable | ||||
Purchased credit impaired loans | 4,096 | 4,178 | ||
Allowance for loan losses: | ||||
Purchased credit impaired loans | 460 | 476 | ||
Financial Asset Acquired with Credit Deterioration | Consumer | ||||
Loans receivable | ||||
Purchased credit impaired loans | 41 | 0 | ||
Allowance for loan losses: | ||||
Purchased credit impaired loans | $ 0 | $ 0 |
Loans Receivable and the Allo_6
Loans Receivable and the Allowance for Loan Losses - Allowance for Loan Loss Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 29,307 | $ 28,059 | $ 21,850 |
Charge-offs | (8,390) | (7,040) | (12,033) |
Recoveries | 1,004 | 988 | 908 |
Provision (negative provision) | 7,158 | 7,300 | 17,334 |
Ending balance | 29,079 | 29,307 | 28,059 |
Agricultural | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 3,637 | 2,790 | 2,003 |
Charge-offs | (1,130) | (656) | (1,202) |
Recoveries | 32 | 67 | 187 |
Provision (negative provision) | 1,209 | 1,436 | 1,802 |
Ending balance | 3,748 | 3,637 | 2,790 |
Commercial and Industrial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 7,478 | 8,518 | 6,274 |
Charge-offs | (4,774) | (2,752) | (2,338) |
Recoveries | 195 | 291 | 232 |
Provision (negative provision) | 5,495 | 1,421 | 4,350 |
Ending balance | 8,394 | 7,478 | 8,518 |
Commercial Real Estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 15,635 | 13,637 | 9,860 |
Charge-offs | (1,537) | (2,901) | (7,931) |
Recoveries | 311 | 290 | 291 |
Provision (negative provision) | (605) | 4,609 | 11,417 |
Ending balance | 13,804 | 15,635 | 13,637 |
Residential Real Estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 2,349 | 2,870 | 3,458 |
Charge-offs | (229) | (113) | (305) |
Recoveries | 105 | 288 | 180 |
Provision (negative provision) | 460 | (696) | (463) |
Ending balance | 2,685 | 2,349 | 2,870 |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 208 | 244 | 255 |
Charge-offs | (720) | (618) | (257) |
Recoveries | 361 | 52 | 18 |
Provision (negative provision) | 599 | 530 | 228 |
Ending balance | $ 448 | $ 208 | $ 244 |
Loans Receivable and the Allo_7
Loans Receivable and the Allowance for Loan Losses - New Troubled Debt Restructurings During Period (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)count | Dec. 31, 2018USD ($)count | Dec. 31, 2017USD ($)count | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
TDRs | $ 11,000 | $ 5,300 | |
Financing receivable, modifications, number of contracts | count | 21 | 2 | 11 |
Financing receivable, modifications, pre-modification recorded investment | $ 7,270 | $ 125 | $ 17,035 |
Financing receivable, modifications, post-modification recorded investment | $ 7,269 | 132 | 17,458 |
Agricultural | Agricultural | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, number of contracts | count | 7 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 341 | 0 | 0 |
Financing receivable, modifications, post-modification recorded investment | $ 341 | 0 | $ 0 |
Commercial and Industrial | Commercial and industrial | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, number of contracts | count | 3 | 6 | |
Financing receivable, modifications, pre-modification recorded investment | $ 6,309 | 0 | $ 2,037 |
Financing receivable, modifications, post-modification recorded investment | $ 6,309 | $ 0 | $ 2,083 |
Commercial Real Estate | Farmland | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, number of contracts | count | 1 | 1 | 2 |
Financing receivable, modifications, pre-modification recorded investment | $ 158 | $ 86 | $ 176 |
Financing receivable, modifications, post-modification recorded investment | 158 | 86 | $ 176 |
Commercial Real Estate | Commercial real estate-other | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, number of contracts | count | 2 | ||
Financing receivable, modifications, pre-modification recorded investment | 0 | 0 | $ 4,276 |
Financing receivable, modifications, post-modification recorded investment | 0 | 0 | $ 4,276 |
Commercial Real Estate | Commercial real estate-other | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, number of contracts | count | 1 | ||
Financing receivable, modifications, pre-modification recorded investment | 0 | 0 | $ 10,546 |
Financing receivable, modifications, post-modification recorded investment | $ 0 | $ 0 | 10,923 |
Residential Real Estate | One- to four- family first liens | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, number of contracts | count | 4 | 1 | |
Financing receivable, modifications, pre-modification recorded investment | $ 294 | $ 39 | 0 |
Financing receivable, modifications, post-modification recorded investment | $ 293 | 46 | 0 |
Residential Real Estate | One- to four- family junior liens | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, number of contracts | count | 6 | ||
Financing receivable, modifications, pre-modification recorded investment | $ 168 | 0 | 0 |
Financing receivable, modifications, post-modification recorded investment | $ 168 | $ 0 | $ 0 |
Loans Receivable and the Allo_8
Loans Receivable and the Allowance for Loan Losses - New Troubled Debt Restructurings During Past Twelve Months That Defaulted During the Period (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)count | Dec. 31, 2018USD ($)count | Dec. 31, 2017USD ($)count | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, subsequent default, number of contracts | count | 12 | 1 | 5 |
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 742 | $ 46 | $ 2,472 |
Agricultural | Agricultural | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, subsequent default, number of contracts | count | 6 | ||
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 315 | 0 | $ 0 |
Commercial and Industrial | Commercial and industrial | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, subsequent default, number of contracts | count | 4 | ||
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 0 | 0 | $ 1,504 |
Commercial Real Estate | Farmland | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, subsequent default, number of contracts | count | 1 | ||
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 158 | $ 0 | $ 0 |
Commercial Real Estate | Commercial real estate-other | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, subsequent default, number of contracts | count | 1 | 1 | |
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 0 | $ 46 | $ 968 |
Residential Real Estate | One- to four- family first liens | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, subsequent default, number of contracts | count | 3 | ||
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 239 | 0 | 0 |
Residential Real Estate | One- to four- family junior liens | Extended maturity date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing receivable, modifications, subsequent default, number of contracts | count | 2 | ||
Financing receivable, modifications, subsequent default, recorded investment | $ | $ 30 | $ 0 | $ 0 |
Loans Receivable and the Allo_9
Loans Receivable and the Allowance for Loan Losses - Loans by Internally Assigned Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | $ 3,451,266 | $ 2,398,779 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 3,246,524 | 2,254,465 |
Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 121,709 | 74,664 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 82,813 | 69,360 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 184 | 290 |
Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 36 | |
Total commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,814,859 | 1,267,328 |
Total commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,687,570 | 1,188,561 |
Total commercial real estate | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 83,511 | 45,593 |
Total commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 43,778 | 33,174 |
Total residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 577,799 | 461,879 |
Total residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 564,404 | 453,379 |
Total residential real estate | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 5,829 | 2,506 |
Total residential real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 7,402 | 5,733 |
Total residential real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 164 | 261 |
Agricultural | Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 140,446 | 96,956 |
Agricultural | Agricultural | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 117,374 | 74,126 |
Agricultural | Agricultural | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 13,292 | 12,960 |
Agricultural | Agricultural | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 9,780 | 9,870 |
Agricultural | Agricultural | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Agricultural | Agricultural | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Commercial and Industrial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 835,236 | 533,188 |
Commercial and Industrial | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 794,526 | 499,042 |
Commercial and Industrial | Commercial and industrial | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 19,038 | 13,583 |
Commercial and Industrial | Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 21,635 | 20,559 |
Commercial and Industrial | Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1 | 4 |
Commercial and Industrial | Commercial and industrial | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 36 | 0 |
Commercial Real Estate | Construction & development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 298,077 | 217,617 |
Commercial Real Estate | Construction & development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 283,921 | 215,625 |
Commercial Real Estate | Construction & development | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 11,423 | 1,069 |
Commercial Real Estate | Construction & development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 2,733 | 923 |
Commercial Real Estate | Construction & development | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Commercial Real Estate | Construction & development | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Commercial Real Estate | Farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 181,885 | 88,807 |
Commercial Real Estate | Farmland | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 141,107 | 72,924 |
Commercial Real Estate | Farmland | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 21,307 | 4,818 |
Commercial Real Estate | Farmland | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 19,471 | 11,065 |
Commercial Real Estate | Farmland | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Commercial Real Estate | Farmland | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Commercial Real Estate | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 227,407 | 134,741 |
Commercial Real Estate | Multifamily | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 226,124 | 133,310 |
Commercial Real Estate | Multifamily | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 90 | 1,431 |
Commercial Real Estate | Multifamily | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,193 | 0 |
Commercial Real Estate | Multifamily | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Commercial Real Estate | Multifamily | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Commercial Real Estate | Commercial real estate-other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,107,490 | 826,163 |
Commercial Real Estate | Commercial real estate-other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,036,418 | 766,702 |
Commercial Real Estate | Commercial real estate-other | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 50,691 | 38,275 |
Commercial Real Estate | Commercial real estate-other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 20,381 | 21,186 |
Commercial Real Estate | Commercial real estate-other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Commercial Real Estate | Commercial real estate-other | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Residential Real Estate | One- to four- family first liens | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 407,418 | 341,830 |
Residential Real Estate | One- to four- family first liens | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 396,175 | 335,233 |
Residential Real Estate | One- to four- family first liens | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 4,547 | 2,080 |
Residential Real Estate | One- to four- family first liens | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 6,532 | 4,256 |
Residential Real Estate | One- to four- family first liens | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 164 | 261 |
Residential Real Estate | One- to four- family first liens | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Residential Real Estate | One- to four- family junior liens | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 170,381 | 120,049 |
Residential Real Estate | One- to four- family junior liens | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 168,229 | 118,146 |
Residential Real Estate | One- to four- family junior liens | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 1,282 | 426 |
Residential Real Estate | One- to four- family junior liens | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 870 | 1,477 |
Residential Real Estate | One- to four- family junior liens | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Residential Real Estate | One- to four- family junior liens | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 0 | 0 |
Consumer | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 82,926 | 39,428 |
Consumer | Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 82,650 | 39,357 |
Consumer | Consumer | Special Mention/Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 39 | 22 |
Consumer | Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 218 | 24 |
Consumer | Consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 19 | 25 |
Consumer | Consumer | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | $ 0 | $ 0 |
Loans Receivable and the All_10
Loans Receivable and the Allowance for Loan Losses - Amounts and Categories of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | $ 21,568 | $ 7,420 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 25,790 | 8,689 | |
Impaired financing receivable, with related allowance, recorded investment | 11,927 | 15,368 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 13,121 | 17,986 | |
Impaired financing receivable, related allowance | 3,663 | 5,284 | |
Impaired financing receivable, recorded investment | 33,495 | 22,788 | |
Impaired financing receivable, unpaid principal balance | 38,911 | 26,675 | |
Impaired financing receivable, with no related allowance, average recorded investment | 12,699 | 6,389 | $ 18,664 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 306 | 189 | 675 |
Impaired financing receivable, with related allowance, average recorded investment | 6,219 | 11,566 | 9,218 |
Impaired financing receivable, with related allowance, interest income, accrual method | 291 | 337 | 221 |
Impaired financing receivable, average recorded investment | 18,918 | 17,955 | 27,882 |
Impaired financing receivable, interest income, accrual method | 597 | 526 | 896 |
Total commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 11,196 | 1,727 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 11,403 | 2,240 | |
Impaired financing receivable, with related allowance, recorded investment | 4,886 | 6,230 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 5,512 | 6,488 | |
Impaired financing receivable, related allowance | 1,180 | 2,683 | |
Impaired financing receivable, recorded investment | 16,082 | 7,957 | |
Impaired financing receivable, unpaid principal balance | 16,915 | 8,728 | |
Impaired financing receivable, with no related allowance, average recorded investment | 4,648 | 1,478 | 7,058 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 261 | 41 | 293 |
Impaired financing receivable, with related allowance, average recorded investment | 2,268 | 3,838 | 4,275 |
Impaired financing receivable, with related allowance, interest income, accrual method | 112 | 190 | 34 |
Impaired financing receivable, average recorded investment | 6,916 | 5,316 | 11,333 |
Impaired financing receivable, interest income, accrual method | 373 | 231 | 327 |
Residential Real Estate Total | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 577 | 909 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 578 | 937 | |
Impaired financing receivable, with related allowance, recorded investment | 261 | 851 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 262 | 851 | |
Impaired financing receivable, related allowance | 73 | 120 | |
Impaired financing receivable, recorded investment | 838 | 1,760 | |
Impaired financing receivable, unpaid principal balance | 840 | 1,788 | |
Impaired financing receivable, with no related allowance, average recorded investment | 323 | 691 | 2,433 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 2 | 86 | |
Impaired financing receivable, with related allowance, average recorded investment | 265 | 861 | 1,297 |
Impaired financing receivable, with related allowance, interest income, accrual method | 9 | 32 | 40 |
Impaired financing receivable, average recorded investment | 588 | 1,552 | 3,730 |
Impaired financing receivable, interest income, accrual method | 11 | 32 | 126 |
Agricultural | Agricultural | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 2,383 | 1,999 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,913 | 2,511 | |
Impaired financing receivable, with related allowance, recorded investment | 1,929 | 2,091 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 1,930 | 2,097 | |
Impaired financing receivable, related allowance | 212 | 322 | |
Impaired financing receivable, recorded investment | 4,312 | 4,090 | |
Impaired financing receivable, unpaid principal balance | 4,843 | 4,608 | |
Impaired financing receivable, with no related allowance, average recorded investment | 2,388 | 1,608 | 1,585 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 43 | 53 | 66 |
Impaired financing receivable, with related allowance, average recorded investment | 1,500 | 1,876 | 1,457 |
Impaired financing receivable, with related allowance, interest income, accrual method | 34 | 56 | 44 |
Impaired financing receivable, average recorded investment | 3,888 | 3,484 | 3,042 |
Impaired financing receivable, interest income, accrual method | 77 | 109 | 110 |
Commercial and Industrial | Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 7,391 | 2,761 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 10,875 | 2,977 | |
Impaired financing receivable, with related allowance, recorded investment | 4,851 | 6,196 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 5,417 | 8,550 | |
Impaired financing receivable, related allowance | 2,198 | 2,159 | |
Impaired financing receivable, recorded investment | 12,242 | 8,957 | |
Impaired financing receivable, unpaid principal balance | 16,292 | 11,527 | |
Impaired financing receivable, with no related allowance, average recorded investment | 5,323 | 2,607 | 7,588 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 0 | 94 | 230 |
Impaired financing receivable, with related allowance, average recorded investment | 2,186 | 4,991 | 2,189 |
Impaired financing receivable, with related allowance, interest income, accrual method | 136 | 59 | 103 |
Impaired financing receivable, average recorded investment | 7,509 | 7,598 | 9,777 |
Impaired financing receivable, interest income, accrual method | 136 | 153 | 333 |
Real estate loans | Construction & development | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 1,181 | 84 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 1,218 | 84 | |
Impaired financing receivable, with related allowance, recorded investment | 135 | 0 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 135 | 0 | |
Impaired financing receivable, related allowance | 135 | 0 | |
Impaired financing receivable, recorded investment | 1,316 | 84 | |
Impaired financing receivable, unpaid principal balance | 1,353 | 84 | |
Impaired financing receivable, with no related allowance, average recorded investment | 244 | 84 | 364 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 37 | 0 | 2 |
Impaired financing receivable, with related allowance, average recorded investment | 26 | 0 | 0 |
Impaired financing receivable, with related allowance, interest income, accrual method | 7 | 0 | 0 |
Impaired financing receivable, average recorded investment | 270 | 84 | 364 |
Impaired financing receivable, interest income, accrual method | 44 | 2 | |
Real estate loans | Farmland | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 4,306 | 110 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 4,331 | 110 | |
Impaired financing receivable, with related allowance, recorded investment | 1,109 | 2,123 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 1,148 | 2,123 | |
Impaired financing receivable, related allowance | 347 | 662 | |
Impaired financing receivable, recorded investment | 5,415 | 2,233 | |
Impaired financing receivable, unpaid principal balance | 5,479 | 2,233 | |
Impaired financing receivable, with no related allowance, average recorded investment | 2,243 | 66 | 1,012 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 0 | 0 | 58 |
Impaired financing receivable, with related allowance, average recorded investment | 684 | 1,692 | 0 |
Impaired financing receivable, with related allowance, interest income, accrual method | 5 | 0 | 0 |
Impaired financing receivable, average recorded investment | 2,927 | 1,758 | 1,012 |
Impaired financing receivable, interest income, accrual method | 5 | 58 | |
Real estate loans | Multifamily | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 0 | 0 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 0 | 0 | |
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired financing receivable, related allowance | 0 | 0 | |
Impaired financing receivable, with no related allowance, average recorded investment | 0 | 0 | 0 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired financing receivable, with related allowance, average recorded investment | 0 | 0 | 0 |
Impaired financing receivable, with related allowance, interest income, accrual method | 0 | 0 | 0 |
Real estate loans | Commercial real estate-other | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 5,709 | 1,533 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 5,854 | 2,046 | |
Impaired financing receivable, with related allowance, recorded investment | 3,642 | 4,107 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 4,229 | 4,365 | |
Impaired financing receivable, related allowance | 698 | 2,021 | |
Impaired financing receivable, recorded investment | 9,351 | 5,640 | |
Impaired financing receivable, unpaid principal balance | 10,083 | 6,411 | |
Impaired financing receivable, with no related allowance, average recorded investment | 2,161 | 1,328 | 5,682 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 224 | 41 | 233 |
Impaired financing receivable, with related allowance, average recorded investment | 1,558 | 2,146 | 4,275 |
Impaired financing receivable, with related allowance, interest income, accrual method | 100 | 190 | 34 |
Impaired financing receivable, average recorded investment | 3,719 | 3,474 | 9,957 |
Impaired financing receivable, interest income, accrual method | 324 | 231 | 267 |
Residential Real Estate | One- to four- family first liens | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 577 | 617 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 578 | 644 | |
Impaired financing receivable, with related allowance, recorded investment | 261 | 851 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 262 | 851 | |
Impaired financing receivable, related allowance | 73 | 120 | |
Impaired financing receivable, recorded investment | 838 | 1,468 | |
Impaired financing receivable, unpaid principal balance | 840 | 1,495 | |
Impaired financing receivable, with no related allowance, average recorded investment | 323 | 404 | 2,406 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 2 | 0 | 84 |
Impaired financing receivable, with related allowance, average recorded investment | 265 | 861 | 1,030 |
Impaired financing receivable, with related allowance, interest income, accrual method | 9 | 32 | 35 |
Impaired financing receivable, average recorded investment | 588 | 1,265 | 3,436 |
Impaired financing receivable, interest income, accrual method | 11 | 32 | 119 |
Residential Real Estate | One- to four- family junior liens | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 0 | 292 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 0 | 293 | |
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired financing receivable, related allowance | 0 | 0 | |
Impaired financing receivable, recorded investment | 292 | ||
Impaired financing receivable, unpaid principal balance | 293 | ||
Impaired financing receivable, with no related allowance, average recorded investment | 0 | 287 | 27 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 0 | 0 | 2 |
Impaired financing receivable, with related allowance, average recorded investment | 0 | 0 | 267 |
Impaired financing receivable, with related allowance, interest income, accrual method | 0 | 0 | 5 |
Impaired financing receivable, average recorded investment | 287 | 294 | |
Impaired financing receivable, interest income, accrual method | 7 | ||
Consumer | Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 21 | 24 | |
Impaired financing receivable, with no related allowance, unpaid principal balance | 21 | 24 | |
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 | |
Impaired financing receivable, related allowance | 0 | 0 | |
Impaired financing receivable, recorded investment | 21 | 24 | |
Impaired financing receivable, unpaid principal balance | 21 | 24 | |
Impaired financing receivable, with no related allowance, average recorded investment | 17 | 5 | 0 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 0 | 1 | 0 |
Impaired financing receivable, with related allowance, average recorded investment | 0 | 0 | 0 |
Impaired financing receivable, with related allowance, interest income, accrual method | 0 | 0 | $ 0 |
Impaired financing receivable, average recorded investment | $ 17 | 5 | |
Impaired financing receivable, interest income, accrual method | $ 1 |
Loans Receivable and the All_11
Loans Receivable and the Allowance for Loan Losses - Past Due Loan Aging (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 3,451,266 | $ 2,398,779 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 3,398,020 | 2,372,847 |
30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 9,541 | 4,286 |
60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 2,088 | 1,357 |
90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 136 | 365 |
Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 41,481 | 19,924 |
Total commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,814,859 | 1,267,328 |
Total commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 1,787,123 | 1,259,487 |
Total commercial real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 4,743 | 433 |
Total commercial real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 956 | |
Total commercial real estate | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 22,037 | 7,408 |
Residential Real Estate Total | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 577,799 | 461,879 |
Residential Real Estate Total | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 570,897 | 456,445 |
Residential Real Estate Total | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 2,911 | 2,257 |
Residential Real Estate Total | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 798 | 1,298 |
Residential Real Estate Total | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 124 | 365 |
Residential Real Estate Total | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 3,069 | 1,514 |
Purchased Credit Impaired Loans Receivable | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 22,551 | 17,009 |
Purchased Credit Impaired Loans Receivable | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 15,304 | 16,714 |
Purchased Credit Impaired Loans Receivable | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 295 |
Purchased Credit Impaired Loans Receivable | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Purchased Credit Impaired Loans Receivable | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Purchased Credit Impaired Loans Receivable | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 7,247 | 0 |
Agricultural | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 140,446 | 96,956 |
Agricultural | Agricultural | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 136,578 | 95,227 |
Agricultural | Agricultural | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 975 | 57 |
Agricultural | Agricultural | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 50 |
Agricultural | Agricultural | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Agricultural | Agricultural | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 2,893 | 1,622 |
Commercial and Industrial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 835,236 | 533,188 |
Commercial and Industrial | Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 820,923 | 522,463 |
Commercial and Industrial | Commercial and industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 782 | 1,507 |
Commercial and Industrial | Commercial and industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 255 | 0 |
Commercial and Industrial | Commercial and industrial | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Commercial and Industrial | Commercial and industrial | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 13,276 | 9,218 |
Real estate loans | Construction & development | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 298,077 | 217,617 |
Real estate loans | Construction & development | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 293,718 | 217,476 |
Real estate loans | Construction & development | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 2,256 | 42 |
Real estate loans | Construction & development | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 609 | 0 |
Real estate loans | Construction & development | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Real estate loans | Construction & development | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 1,494 | 99 |
Real estate loans | Farmland | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 181,885 | 88,807 |
Real estate loans | Farmland | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 171,121 | 86,056 |
Real estate loans | Farmland | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 362 | 0 |
Real estate loans | Farmland | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Real estate loans | Farmland | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Real estate loans | Farmland | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 10,402 | 2,751 |
Real estate loans | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 227,407 | 134,741 |
Real estate loans | Multifamily | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 227,013 | 134,741 |
Real estate loans | Multifamily | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 394 | 0 |
Real estate loans | Multifamily | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Real estate loans | Multifamily | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Real estate loans | Multifamily | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Real estate loans | Commercial real estate-other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,107,490 | 826,163 |
Real estate loans | Commercial real estate-other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 1,095,271 | 821,214 |
Real estate loans | Commercial real estate-other | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 1,731 | 391 |
Real estate loans | Commercial real estate-other | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 347 | 0 |
Real estate loans | Commercial real estate-other | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Real estate loans | Commercial real estate-other | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 10,141 | 4,558 |
Residential Real Estate | One- to four- family first liens | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 407,418 | 341,830 |
Residential Real Estate | One- to four- family first liens | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 401,553 | 337,405 |
Residential Real Estate | One- to four- family first liens | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 2,492 | 1,851 |
Residential Real Estate | One- to four- family first liens | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 718 | 1,184 |
Residential Real Estate | One- to four- family first liens | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 99 | 341 |
Residential Real Estate | One- to four- family first liens | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 2,556 | 1,049 |
Residential Real Estate | One- to four- family junior liens | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 170,381 | 120,049 |
Residential Real Estate | One- to four- family junior liens | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 169,344 | 119,040 |
Residential Real Estate | One- to four- family junior liens | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 419 | 406 |
Residential Real Estate | One- to four- family junior liens | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 80 | 114 |
Residential Real Estate | One- to four- family junior liens | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 25 | 24 |
Residential Real Estate | One- to four- family junior liens | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 513 | 465 |
Consumer | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 82,926 | 39,428 |
Consumer | Consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans current | 82,499 | 39,225 |
Consumer | Consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 130 | 32 |
Consumer | Consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 79 | 9 |
Consumer | Consumer | 90 Days or More Past Due & Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 12 | 0 |
Consumer | Consumer | Non-Accrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | $ 206 | $ 162 |
Loans Receivable and the All_12
Loans Receivable and the Allowance for Loan Losses - Summarizes Outstanding Balance and Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 7,666 | |
ATBancorp | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 23,047 | $ 17,937 |
Carrying amount | 22,551 | 17,009 |
Allowance for loan losses | 1,250 | 1,197 |
Carrying amount, net of allowance for loan losses | 21,301 | 15,812 |
ATBancorp | Agricultural | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 904 | 0 |
ATBancorp | Commercial and Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 147 | 165 |
ATBancorp | Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 17,803 | 13,600 |
ATBancorp | Residential Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 4,136 | 4,172 |
ATBancorp | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 57 | $ 0 |
Loans Receivable and the All_13
Loans Receivable and the Allowance for Loan Losses - Summarizes of Carrying Amount (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Receivables [Abstract] | |
Contractually required principal payments | $ 15,074 |
Nonaccretable discount | (2,957) |
Fair value of acquired loans | 12,116 |
Loans at end of period | $ 7,666 |
Loans Receivable and the All_14
Loans Receivable and the Allowance for Loan Losses - Accretable Yield for Loans Acquired and Accounted for Under ASC 310-30 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | ||
Balance at beginning of period | $ 3,840 | $ 4,304 |
Purchases | 0 | 0 |
Accretion | (626) | (802) |
Reclassification from nonaccretable difference | 68 | 338 |
Balance at end of period | $ 3,282 | $ 3,840 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Balance Sheet Offsetting - Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 16,734 | $ 8,927 |
Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1,113 | 223 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 128,343 | 23,942 |
Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,848 | 321 |
Not Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 2,129 | 444 |
Interest rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 16,734 | 8,927 |
Interest rate swaps | Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Interest rate swaps | Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1,113 | 223 |
Interest rate swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 113,632 | 13,830 |
Interest rate swaps | Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,824 | 321 |
Interest rate swaps | Not Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1,999 | 359 |
RPAs | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 14,711 | 10,112 |
Derivative Assets | 24 | 0 |
Derivative Liabilities | 130 | 85 |
RPAs | Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 24 | 0 |
RPAs | Not Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 130 | $ 85 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Balance Sheet Offsetting - Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location (Details) - Interest rate swaps - Designated as Hedging Instrument - Fair Value Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on fair value hedge ineffectiveness, net | $ 1 | $ (2) | $ 0 |
Change in fair value of hedged items | 891 | 221 | 0 |
Change in fair value of derivative instruments | (890) | (223) | 0 |
Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on fair value hedge ineffectiveness, net | 0 | 0 | 0 |
Change in fair value of hedged items | 0 | 0 | 0 |
Change in fair value of derivative instruments | $ 0 | $ 0 | $ 0 |
Derivatives, Hedging Activiti_5
Derivatives, Hedging Activities and Balance Sheet Offsetting - Hedged Items in Fair Value Hedging Relationship (Details) - Interest rate swaps - Hedged Item, Loans - Designated as Hedging Instrument - Fair Value Hedging $ in Thousands | Dec. 31, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Carrying Amount of the Hedged Assets | $ 17,849 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | $ 1,111 |
Derivatives, Hedging Activiti_6
Derivatives, Hedging Activities and Balance Sheet Offsetting - Interest Rate Swaps (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 128,343 | $ 23,942 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 113,632 | 13,830 |
Customer Counterparties | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 56,816 | 6,915 |
Derivative Assets | 1,824 | 321 |
Derivative Liabilities | 0 | 0 |
Financial Counterparties | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 56,816 | 6,915 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 1,999 | $ 359 |
Derivatives, Hedging Activiti_7
Derivatives, Hedging Activities and Balance Sheet Offsetting - Credit Risk Participation Agreements (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 128,343 | $ 23,942 |
RPAs - protection sold | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 4,702 | 0 |
Derivative Assets | 24 | 0 |
Derivative Liabilities | 0 | 0 |
RPAs - protection purchased | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 10,009 | 10,112 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 130 | 85 |
RPAs | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 14,711 | 10,112 |
Derivative Assets | 24 | 0 |
Derivative Liabilities | $ 130 | $ 85 |
Derivatives, Hedging Activiti_8
Derivatives, Hedging Activities and Balance Sheet Offsetting - Schedule of Other Derivatives Not Designated as Hedging Instruments (Details) - Other Income - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other gain (loss), net | $ (255) | $ 77 | $ 0 |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other gain (loss), net | (138) | (38) | 0 |
RPAs | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other gain (loss), net | $ (117) | $ 115 | $ 0 |
Derivatives, Hedging Activiti_9
Derivatives, Hedging Activities and Balance Sheet Offsetting - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Asset [Abstract] | ||
Gross amount of recognized assets | $ 1,848 | $ 321 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amount of assets presented in the balance sheet | 1,848 | 321 |
Financial instruments | 0 | 0 |
Cash collateral received | 0 | 0 |
Net assets | 1,848 | 321 |
Derivative Liability [Abstract] | ||
Gross amount of recognized liabilities | (3,242) | (667) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amount of liabilities presented in the balance sheet | (3,242) | (667) |
Financial instruments | 0 | 0 |
Cash collateral paid | (3,280) | (530) |
Net liabilities | $ (38) | $ (137) |
Derivatives, Hedging Activit_10
Derivatives, Hedging Activities and Balance Sheet Offsetting - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of derivatives in a net liability position, including accrued interest | $ 3,265 | |
Cash collateral paid | 3,280 | $ 530 |
Assets needed for immediate settlement, aggregate fair value | $ 3,265 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | $ 125,263 | ||
Accumulated depreciation and amortization | 34,540 | ||
Premises and equipment, net | 90,723 | ||
Premises and equipment | $ 106,086 | ||
Accumulated depreciation and amortization | 30,313 | ||
Premises and equipment, net | 75,773 | ||
Depreciation expense | 4,800 | 4,200 | $ 4,000 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | 14,530 | ||
Premises and equipment | 12,464 | ||
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | 89,605 | ||
Premises and equipment | 75,775 | ||
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | 20,769 | ||
Premises and equipment | 17,752 | ||
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment | $ 359 | ||
Premises and equipment | $ 95 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 64,654 | $ 64,654 |
Total goodwill, end of period | 91,918 | 64,654 |
ATBancorp | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 0 | 0 |
Goodwill from acquisition of ATBancorp | 27,264 | 0 |
Total goodwill, end of period | $ 27,264 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - ATBancorp $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Core Deposits | |
Goodwill [Line Items] | |
Intangible assets acquired | $ 23.5 |
Customer Relationships | |
Goodwill [Line Items] | |
Intangible assets acquired | $ 4.8 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | ||
Gross Carrying Amount | $ 49,710 | $ 21,361 |
Accumulated Amortization | (24,532) | (18,526) |
Total | 25,178 | 2,835 |
Indefinite-lived trade name intangible | 7,040 | 7,040 |
Core deposit intangible | ||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | ||
Gross Carrying Amount | 41,745 | 18,206 |
Accumulated Amortization | (21,032) | (16,233) |
Total | 20,713 | 1,973 |
Customer relationship intangible | ||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | ||
Gross Carrying Amount | 5,265 | 455 |
Accumulated Amortization | (1,195) | (259) |
Total | 4,070 | 196 |
Other | ||
Schedule of Intangible Assets (Excluding Goodwill) [Line Items] | ||
Gross Carrying Amount | 2,700 | 2,700 |
Accumulated Amortization | (2,305) | (2,034) |
Total | $ 395 | $ 666 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
2020 | $ 6,975 | |
2021 | 5,358 | |
2022 | 4,363 | |
2023 | 3,402 | |
2024 | 2,443 | |
Thereafter | 2,637 | |
Total | 25,178 | $ 2,835 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 | 5,407 | |
2021 | 4,190 | |
2022 | 3,487 | |
2023 | 2,833 | |
2024 | 2,180 | |
Thereafter | 2,616 | |
Total | 20,713 | 1,973 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 | 1,435 | |
2021 | 1,062 | |
2022 | 797 | |
2023 | 518 | |
2024 | 239 | |
Thereafter | 19 | |
Total | 4,070 | 196 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 | 133 | |
2021 | 106 | |
2022 | 79 | |
2023 | 51 | |
2024 | 24 | |
Thereafter | 2 | |
Total | $ 395 | $ 666 |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Assets held for sale | $ 580 | $ 0 |
Bank-owned life insurance | 81,625 | 60,989 |
Interest receivable | 18,525 | 14,736 |
FHLB stock | 15,381 | 14,678 |
Mortgage servicing rights | 7,026 | 2,803 |
Operating leases right-of-use asset | 4,499 | 0 |
Federal & state taxes, current | 2,318 | 2,361 |
Federal & state taxes, deferred | 3,530 | 8,273 |
Other receivables/assets | 14,476 | 11,262 |
Total other assets | $ 147,960 | $ 115,102 |
Loans Serviced for Others (Deta
Loans Serviced for Others (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Loans Serviced for Others [Abstract] | ||
Loans serviced for others | $ 1,100 | $ 447.8 |
Deposits - Deposit Types (Detai
Deposits - Deposit Types (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits, by Type [Abstract] | ||
Noninterest bearing deposits | $ 662,209 | $ 439,133 |
Interest-bearing checking | 962,830 | 683,894 |
Money market | 763,028 | 555,839 |
Savings | 387,142 | 210,416 |
Certificates of deposit under $250,000 | 682,232 | 532,395 |
Certificates of deposit of $250,000 or more | 271,214 | 191,252 |
Total deposits | $ 3,728,655 | $ 2,612,929 |
- Time Deposits, Fiscal Year Ma
- Time Deposits, Fiscal Year Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2020 | $ 678,107 |
2021 | 183,458 |
2022 | 59,374 |
2023 | 19,000 |
2024 | 12,670 |
Thereafter | 837 |
Total | $ 953,446 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Domestic time deposit, brokered | $ 6.6 | $ 8.6 |
Domestic non-time deposit, brokered | 10.1 | 23.7 |
Deposits of government entities | $ 96.6 | $ 90.4 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | Apr. 30, 2019 | Apr. 30, 2015 | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||||
Weighted average cost | 1.17% | 1.69% | ||
Short-term borrowings | $ 139,349,000 | $ 131,422,000 | ||
Pledged securities | $ 264,800,000 | $ 197,200,000 | ||
Securities sold under agreements to repurchase | ||||
Short-term Debt [Line Items] | ||||
Weighted average cost | 1.06% | 1.00% | ||
Short-term borrowings | $ 117,249,000 | $ 74,522,000 | ||
Federal Home Loan Bank overnight advances | ||||
Short-term Debt [Line Items] | ||||
Weighted average cost | 1.73% | 2.60% | ||
Short-term borrowings | $ 22,100,000 | $ 56,900,000 | ||
Federal funds purchased | ||||
Short-term Debt [Line Items] | ||||
Short-term borrowings | 0 | 0 | ||
Line of credit facility, maximum borrowing capacity | 170,000,000 | |||
Federal Reserve Bank borrowings | ||||
Short-term Debt [Line Items] | ||||
Short-term borrowings | 0 | 0 | ||
Line of credit facility, maximum borrowing capacity | 12,700,000 | 11,400,000 | ||
Pledged securities | 13,000,000 | 12,700,000 | ||
Line of credit | ||||
Short-term Debt [Line Items] | ||||
Short-term borrowings | $ 0 | $ 0 | ||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | $ 5,000,000 | ||
LIBOR | Line of credit | ||||
Short-term Debt [Line Items] | ||||
Interest rate | 1.75% | 2.00% |
Long-Term Debt - Subordinated D
Long-Term Debt - Subordinated Debt (Details) - Junior Subordinated Debt - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Face Value | $ 44,847 | $ 24,743 |
Book Value | 41,587 | 23,888 |
ATBancorp Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Face Value | 7,732 | |
Book Value | $ 6,814 | |
Year-end Interest Rate | 3.57% | |
ATBancorp Statutory Trust I | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.68% | |
ATBancorp Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Face Value | $ 12,372 | |
Book Value | $ 10,794 | |
Year-end Interest Rate | 3.54% | |
ATBancorp Statutory Trust II | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.65% | |
Central Bancshares Capital Trust II | ||
Debt Instrument [Line Items] | ||
Face Value | $ 7,217 | 7,217 |
Book Value | $ 6,783 | $ 6,730 |
Year-end Interest Rate | 5.39% | 6.29% |
Central Bancshares Capital Trust II | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.50% | 3.50% |
Barron Investment Capital Trust I | ||
Debt Instrument [Line Items] | ||
Face Value | $ 2,062 | $ 2,062 |
Book Value | $ 1,732 | $ 1,694 |
Year-end Interest Rate | 4.08% | 4.97% |
Barron Investment Capital Trust I | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.15% | 2.15% |
MidWestOne Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Face Value | $ 15,464 | $ 15,464 |
Book Value | $ 15,464 | $ 15,464 |
Year-end Interest Rate | 3.48% | 4.38% |
MidWestOne Statutory Trust II | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.59% | 1.59% |
Long-Term Debt - Additional Deb
Long-Term Debt - Additional Debt (Details) - USD ($) | 2 Months Ended | |||||
Jun. 29, 2015 | Dec. 31, 2019 | May 01, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | Apr. 30, 2015 | |
Debt Instrument [Line Items] | ||||||
Outstanding debt | $ 179,174,000 | $ 144,838,000 | ||||
Subordinated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 10,900,000 | |||||
Interest rate | 6.50% | |||||
Notes payable to unaffiliated bank | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt | 32,250,000 | 7,500,000 | ||||
Notes payable to unaffiliated bank | April 30, 2015 Note | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 35,000,000 | |||||
Draw on notes payable | $ 25,000,000 | |||||
Outstanding debt | 2,500,000 | |||||
Notes payable to unaffiliated bank | April 30, 2019 Note | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 35,000,000 | |||||
Outstanding debt | 29,800,000 | |||||
FHLB borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Long term borrowings | 6,400,000 | |||||
Outstanding debt | $ 145,700,000 | $ 136,000,000 |
Long-Term Debt - Long-Term Borr
Long-Term Debt - Long-Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Weighted Average Cost | 2.51% | 2.60% |
Balance (in thousands) | $ 179,174 | $ 144,838 |
Finance lease payable | ||
Debt Instrument [Line Items] | ||
Weighted Average Cost | 8.89% | 8.89% |
Balance (in thousands) | $ 1,224 | $ 1,338 |
FHLB borrowings | ||
Debt Instrument [Line Items] | ||
Weighted Average Cost | 2.25% | 2.45% |
Balance (in thousands) | $ 145,700 | $ 136,000 |
Federal Home Loan, Bank advances general debt obligations, disclosures maximum borrowing capacity as percentage of total assets | 45.00% | |
Notes payable to unaffiliated bank | ||
Debt Instrument [Line Items] | ||
Weighted Average Cost | 3.44% | 4.13% |
Balance (in thousands) | $ 32,250 | $ 7,500 |
Long-Term Debt - Federal Home L
Long-Term Debt - Federal Home Loan Bank Advances (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Weighted Average Rate | |
Due in 2020 | 1.93% |
Due in 2021 | 2.07% |
Due in 2022 | 2.68% |
Due in 2023 | 2.79% |
Due in 2024 | 3.15% |
Thereafter | 0.00% |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | |
Due in 2020 | $ 54,400 |
Due in 2021 | 43,000 |
Due in 2022 | 31,000 |
Due in 2023 | 11,000 |
Due in 2024 | 6,000 |
Thereafter | 0 |
Total | 145,400 |
Valuation adjustment from acquisition accounting | 300 |
Total | $ 145,700 |
Income Taxes - Income Tax Compo
Income Taxes - Income Tax Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal tax expense | $ 1,217 | $ 5,293 | $ 7,289 | ||||||||
State tax expense | 2,353 | 3,004 | 2,435 | ||||||||
Deferred: | |||||||||||
Deferred income tax expense | 3,003 | (680) | 652 | ||||||||
Total income tax provision | $ (1,791) | $ 3,256 | $ 3,218 | $ 1,890 | $ 1,696 | $ 1,806 | $ 2,131 | $ 1,984 | $ 6,573 | $ 7,617 | $ 10,376 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||||||||||
Computed “expected” tax expense | $ 10,543 | $ 7,973 | $ 10,176 | ||||||||
Tax-exempt interest | (2,392) | (1,876) | (3,182) | ||||||||
Bank-owned life insurance | (394) | (337) | (485) | ||||||||
State income taxes, net of federal income tax benefit | 2,688 | 2,040 | 1,307 | ||||||||
Non-deductible acquisition expenses | 177 | 122 | 0 | ||||||||
General business credits | (4,090) | (343) | (466) | ||||||||
Federal income tax rate change | 0 | 0 | 3,212 | ||||||||
Other | 41 | 38 | (186) | ||||||||
Total income tax provision | $ (1,791) | $ 3,256 | $ 3,218 | $ 1,890 | $ 1,696 | $ 1,806 | $ 2,131 | $ 1,984 | $ 6,573 | $ 7,617 | $ 10,376 |
% of Pretax Income | |||||||||||
Computed “expected” tax expense | 21.00% | 21.00% | 35.00% | ||||||||
Tax-exempt interest | (4.80%) | (4.90%) | (10.90%) | ||||||||
Bank-owned life insurance | (0.80%) | (0.90%) | (1.70%) | ||||||||
State income taxes, net of federal income tax benefit | 5.30% | 5.40% | 4.50% | ||||||||
Non-deductible acquisition expenses | 0.40% | 0.30% | 0.00% | ||||||||
General business credits | (8.10%) | (0.90%) | (1.60%) | ||||||||
Federal income tax rate change | 0.00% | 0.00% | 11.10% | ||||||||
Other | 0.10% | 0.10% | (0.70%) | ||||||||
Total income tax provision | 13.10% | 20.10% | 35.70% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Allowance for loan losses | $ 7,577 | $ 7,636 |
Deferred compensation | 4,100 | 1,361 |
Net operating losses (state net operating loss carryforwards) | 4,477 | 4,283 |
Unrealized losses on investment securities | 0 | 1,999 |
Accrued compensation | 1,496 | 816 |
ROU liabilities | 1,388 | |
Tax credit carryforward | 611 | 0 |
Other | 1,541 | 1,415 |
Gross deferred tax assets | 21,190 | 17,510 |
Deferred income tax liabilities: | ||
Premises and equipment depreciation and amortization | 4,759 | 2,947 |
Purchase accounting adjustments | 3,171 | 769 |
Mortgage servicing rights | 1,831 | 730 |
Unrealized gains on investment securities | 1,544 | 0 |
ROU assets | 1,388 | |
Other | 490 | 508 |
Gross deferred tax liabilities | 13,183 | 4,954 |
Net deferred income tax asset | 8,007 | 12,556 |
Valuation allowance | 4,477 | 4,283 |
Net deferred tax asset | $ 3,530 | $ 8,273 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Iowa | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 58,000,000 |
Employee Benefit Plan - Company
Employee Benefit Plan - Company Contribution (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum annual percentage of employee pay | 4.00% | ||
Defined contribution plan, cost recognized | $ 1,617 | $ 1,361 | $ 1,306 |
Employee stock ownership plan (ESOP), compensation expense | 1,514 | 690 | 1,081 |
Health savings account | 315 | 215 | 195 |
Cash surrender value of life insurance, salary continuation plans | $ 74,900 | $ 55,100 | $ 54,100 |
Tranche One | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer percent match | 100.00% | ||
Percent of employee pay | 3.00% | ||
Tranche Two | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer percent match | 50.00% | ||
Percent of employee pay | 2.00% |
Employee Benefit Plan - Rollfor
Employee Benefit Plan - Rollforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SERP | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance, beginning | $ 1,867 | $ 2,061 | $ 2,278 |
Company contributions and interest | 117 | 156 | 146 |
Cash payments made | (352) | (350) | (363) |
Balance, ending | 1,632 | 1,867 | 2,061 |
Salary Continuation Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance, beginning | 1,104 | 1,251 | 1,389 |
Plans acquired in ATBancorp merger | 11,058 | 0 | 0 |
Company contributions and interest | 145 | 75 | 84 |
Cash payments made | (6,855) | (222) | (222) |
Balance, ending | $ 5,452 | $ 1,104 | $ 1,251 |
Employee Benefit Plan - Deferre
Employee Benefit Plan - Deferred Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred compensation plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits Rollforward [Roll Forward] | |||
Balance, beginning | $ 855 | $ 715 | $ 529 |
Plans acquired in ATBancorp merger | 5,958 | 0 | 0 |
Employee deferrals | 157 | 179 | 193 |
Company paid interest | 395 | 35 | 24 |
Cash payments made | (344) | (74) | (31) |
Balance, ending | 7,021 | 855 | 715 |
Insurance benefit plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits Rollforward [Roll Forward] | |||
Balance, beginning | 1,442 | 1,172 | 983 |
Company deferral expense | 228 | 270 | 189 |
Balance, ending | $ 1,670 | $ 1,442 | $ 1,172 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1,200,000 | $ 1,000,000 | $ 900,000 |
Share-based compensation, award vesting period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 83,750 | ||
Granted (in shares) | 49,040 | ||
Vested (in shares) | (34,810) | ||
Forfeited (in shares) | (8,190) | ||
Ending balance (in shares) | 89,790 | 83,750 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Beginning balance (in dollars per share) | $ 31.63 | ||
Granted (in dollars per share) | 29.53 | ||
Vested (in dollars per share) | 31.21 | ||
Forfeited (in dollars per share) | 31.83 | ||
Ending balance (in dollars per share) | $ 30.63 | $ 31.63 | |
Share-based compensation, other than options, fair value of equity instruments vested in period | $ 1,000,000 | $ 900,000 | 900,000 |
Share-based compensation, nonvested awards other than options, compensation cost not yet recognized | $ 1,800,000 | ||
Share-based compensation, nonvested awards, period for recognition of unrecognized compensation cost | 2 years 4 months 24 days | ||
2017 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares authorized (in shares) | 500,000 | ||
Share-based compensation, number of shares available for grant (in shares) | 402,310 | ||
2008 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, options exercises in period, total intrinsic value | $ 179,000 | $ 219,000 | |
Stock options granted (in shares) | 0 | 0 | 0 |
2008 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 | ||
Share-based compensation, award vesting period | 4 years | ||
Director | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting period | 1 year | ||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 100.00% | ||
Tranche One | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage upon disability or death | 100.00% | ||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||
Tranche One | 2008 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||
Tranche Two | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||
Tranche Two | 2008 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||
Tranche Three | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||
Tranche Three | 2008 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||
Tranche Four | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||
Tranche Four | 2008 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||
Maximum | 2008 Equity Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, award vesting period | 10 years |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic Earnings Per Share: | |||||||||||
Net income | $ 13,371 | $ 12,300 | $ 10,674 | $ 7,285 | $ 7,624 | $ 6,778 | $ 8,156 | $ 7,793 | $ 43,630 | $ 30,351 | $ 18,699 |
Weighted average shares outstanding (in shares) | 14,869,952 | 12,219,725 | 12,038,499 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.83 | $ 0.76 | $ 0.72 | $ 0.60 | $ 0.62 | $ 0.55 | $ 0.67 | $ 0.64 | $ 2.93 | $ 2.48 | $ 1.55 |
Diluted Earnings Per Share: | |||||||||||
Net income | $ 13,371 | $ 12,300 | $ 10,674 | $ 7,285 | $ 7,624 | $ 6,778 | $ 8,156 | $ 7,793 | $ 43,630 | $ 30,351 | $ 18,699 |
Weighted average shares outstanding, included all dilutive potential shares (in shares) | 14,884,933 | 12,237,153 | 12,062,577 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 0.83 | $ 0.76 | $ 0.72 | $ 0.60 | $ 0.62 | $ 0.55 | $ 0.67 | $ 0.64 | $ 2.93 | $ 2.48 | $ 1.55 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital Conservation Buffer | 2.50% | 1.875% |
Total capital/risk weighted assets | ||
Capital | $ 463,601 | $ 342,054 |
Total capital to risk weighted assets | 11.34% | 12.23% |
Capital required for capital adequacy purposes | $ 429,077 | $ 276,283 |
Capital required for capital adequacy purposes to risk weighted assets | 10.50% | 9.875% |
Tier 1 capital/risk weighted assets | ||
Tier one risk based capital | $ 428,021 | $ 312,747 |
Tier one risk based capital to risk weighted assets | 10.47% | 11.18% |
Tier one risk based capital required for capital adequacy purposes | $ 347,348 | $ 220,327 |
Tier one risk based capital required for capital adequacy purposes to risk weighted assets | 8.50% | 7.875% |
Common equity tier 1 capital/risk weighted assets | ||
Common equity tier one capital | $ 386,434 | $ 288,859 |
Common equity tier one capital to risk weighted assets | 9.46% | 10.32% |
Common equity tier one capital required for capital adequacy purposes | $ 286,051 | $ 178,360 |
Common equity tier one capital required for capital adequacy purposes to risk weighted assets | 7.00% | 6.375% |
Tier 1 leverage capital/average assets | ||
Tier one leverage capital | $ 428,021 | $ 312,747 |
Tier one leverage capital to average assets | 9.48% | 9.73% |
Tier one capital required for capital adequacy purposes | $ 180,529 | $ 128,531 |
Tier one leverage capital required for capital adequacy purposes to average assets | 4.00% | 4.00% |
Policy guideline, minimum tier one capital to total assets | 8.00% | |
Policy guideline, minimum capital to risk weighted assets | 10.00% | |
Required cash reserve | $ 24,100 | $ 14,900 |
MidWestOne Bank | ||
Total capital/risk weighted assets | ||
Capital | $ 482,106 | $ 333,074 |
Total capital to risk weighted assets | 11.83% | 11.94% |
Capital required for capital adequacy purposes | $ 427,877 | $ 275,468 |
Capital required for capital adequacy purposes to risk weighted assets | 10.50% | 9.875% |
Capital required to be well capitalized | $ 407,502 | $ 278,955 |
Capital required to be well capitalized to risk weighted assets | 10.00% | 10.00% |
Tier 1 capital/risk weighted assets | ||
Tier one risk based capital | $ 453,027 | $ 303,767 |
Tier one risk based capital to risk weighted assets | 11.12% | 10.89% |
Tier one risk based capital required for capital adequacy purposes | $ 346,377 | $ 219,677 |
Tier one risk based capital required for capital adequacy purposes to risk weighted assets | 8.50% | 7.875% |
Tier one risk based capital required to be well capitalized | $ 326,002 | $ 223,164 |
Tier one risk based capital required to be well capitalized to risk weighted assets | 8.00% | 8.00% |
Common equity tier 1 capital/risk weighted assets | ||
Common equity tier one capital | $ 453,027 | $ 303,767 |
Common equity tier one capital to risk weighted assets | 11.12% | 10.89% |
Common equity tier one capital required for capital adequacy purposes | $ 285,251 | $ 177,833 |
Common equity tier one capital required for capital adequacy purposes to risk weighted assets | 7.00% | 6.375% |
Common equity tier one risk based capital required to be well capitalized | $ 264,876 | $ 181,320 |
Common equity tier one risk based capital required to be well capitalized to Rrsk weighted assets | 6.50% | 6.50% |
Tier 1 leverage capital/average assets | ||
Tier one leverage capital | $ 453,027 | $ 303,767 |
Tier one leverage capital to average assets | 10.06% | 9.47% |
Tier one capital required for capital adequacy purposes | $ 180,209 | $ 128,259 |
Tier one leverage capital required for capital adequacy purposes to average assets | 4.00% | 4.00% |
Tier one leverage capital required to be well capitalized | $ 231,166 | $ 160,324 |
Tier one leverage capital required to be well capitalized to average assets | 5.00% | 5.00% |
Commitments and Contingencies -
Commitments and Contingencies - Credit Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
Other commitment | $ 900,804 | $ 538,645 |
Commitments to sell loans | ||
Other Commitments [Line Items] | ||
Other commitment | 5,400 | 666 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Other commitment | 859,212 | 521,270 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Other commitment | $ 36,192 | $ 16,709 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - Credit Concentration Risk | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Loans Concentration | Real estate loans | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 69.00% |
Loans Concentration | Agriculturally related loans | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 9.00% |
Investment Securities | Minnesota | State and political subdivisions | |
Concentration Risk [Line Items] | |
Concentration risk, credit risk, financial instrument, maximum exposure | $ 0.20 |
Investment Securities | Iowa | State and political subdivisions | |
Concentration Risk [Line Items] | |
Concentration risk, credit risk, financial instrument, maximum exposure | $ 0.49 |
Related Party Transactions - Ch
Related Party Transactions - Change in Loans to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning | $ 12,655 | $ 14,131 |
Net increase (decrease) due to change in related parties | 12,163 | (2,518) |
Advances | 4,057 | 2,059 |
Collections | (1,240) | (1,017) |
Balance, ending | $ 27,635 | $ 12,655 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Related party deposit liabilities | $ 4.4 | $ 7.1 |
Director | ||
Related Party Transaction [Line Items] | ||
Amount of related party transaction | $ 1.4 |
Estimated Fair Value of Finan_3
Estimated Fair Value of Financial Instruments and Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | $ 785,977 | $ 414,101 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 785,977 | 414,101 |
Derivative Assets | 1,848 | 321 |
Derivative Liabilities | 3,242 | 667 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 1,848 | 321 |
Derivative Liabilities | 3,242 | 667 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 1,848 | 321 |
Derivative Liabilities | 3,242 | 667 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
U.S. Government agencies and corporations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 441 | 5,495 |
U.S. Government agencies and corporations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 441 | 5,495 |
U.S. Government agencies and corporations | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
U.S. Government agencies and corporations | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 441 | 5,495 |
U.S. Government agencies and corporations | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 257,205 | 121,901 |
State and political subdivisions | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 257,205 | 121,901 |
State and political subdivisions | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
State and political subdivisions | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 257,205 | 121,901 |
State and political subdivisions | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 43,530 | 50,653 |
Mortgage-backed securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 43,530 | 50,653 |
Mortgage-backed securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Mortgage-backed securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 43,530 | 50,653 |
Mortgage-backed securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Collateralized mortgage obligations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 292,946 | 169,928 |
Collateralized mortgage obligations | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Collateralized mortgage obligations | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 292,946 | 169,928 |
Collateralized mortgage obligations | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 191,855 | 66,124 |
Corporate debt securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 191,855 | 66,124 |
Corporate debt securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Corporate debt securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | 191,855 | 66,124 |
Corporate debt securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available for sale | $ 0 | $ 0 |
Estimated Fair Value of Finan_4
Estimated Fair Value of Financial Instruments and Fair Value Measurements - Assets and Liabilities Measured on a Nonrecurring Basis (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets, net | $ 3,706 | $ 535 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 6,749 | 8,328 |
Foreclosed assets, net | 3,706 | 535 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Foreclosed assets, net | 0 | 0 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Foreclosed assets, net | 0 | 0 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 6,749 | 8,328 |
Foreclosed assets, net | $ 3,706 | $ 535 |
Collateral dependent impaired loans | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0 | |
Collateral dependent impaired loans | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.75 | |
Collateral dependent impaired loans | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.18 | |
Foreclosed assets, net | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.05 | |
Foreclosed assets, net | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.46 | |
Foreclosed assets, net | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.10 |
Estimated Fair Value of Finan_5
Estimated Fair Value of Financial Instruments and Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Debt securities available for sale | $ 785,977 | $ 414,101 |
Debt securities held to maturity | 0 | 192,564 |
Federal Home Loan Bank stock | 15,381 | 14,678 |
Financial liabilities: | ||
Interest-bearing | 962,830 | 683,894 |
Finance leases payable | 1,225 | |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 73,484 | 45,480 |
Debt securities available for sale | 785,977 | 414,101 |
Debt securities held to maturity | 195,822 | |
Loans held for sale | 5,400 | 666 |
Loans held for investment, net | 3,422,187 | 2,369,472 |
Interest receivable | 18,525 | 14,736 |
Federal Home Loan Bank stock | 15,381 | 14,678 |
Derivative Assets | 1,848 | 321 |
Financial liabilities: | ||
Non-interest bearing | 662,209 | 439,133 |
Interest-bearing | 3,066,446 | 2,173,796 |
Short-term borrowings | 139,349 | 131,422 |
Finance leases payable | 1,224 | 1,338 |
Federal Home Loan Bank borrowings | 145,700 | 136,000 |
Junior subordinated notes issued to capital trusts | 41,587 | 23,888 |
Subordinated debentures | 10,899 | 0 |
Other long-term debt | 32,250 | 7,500 |
Derivative Liabilities | 3,242 | 667 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 73,484 | 45,480 |
Debt securities available for sale | 785,977 | 414,101 |
Debt securities held to maturity | 192,564 | |
Loans held for sale | 5,476 | 678 |
Loans held for investment, net | 3,427,952 | 2,343,654 |
Interest receivable | 18,525 | 14,736 |
Federal Home Loan Bank stock | 15,381 | 14,678 |
Derivative Assets | 1,848 | 321 |
Financial liabilities: | ||
Non-interest bearing | 662,209 | 439,133 |
Interest-bearing | 3,066,427 | 2,166,518 |
Short-term borrowings | 139,349 | 131,422 |
Finance leases payable | 1,224 | 1,338 |
Federal Home Loan Bank borrowings | 146,913 | 134,995 |
Junior subordinated notes issued to capital trusts | 39,391 | 21,215 |
Subordinated debentures | 11,083 | 0 |
Other long-term debt | 32,250 | 7,500 |
Derivative Liabilities | 3,242 | 667 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 73,484 | 45,480 |
Debt securities available for sale | 0 | 0 |
Debt securities held to maturity | 0 | |
Loans held for sale | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Interest receivable | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Derivative Assets | 0 | 0 |
Financial liabilities: | ||
Non-interest bearing | 662,209 | 439,133 |
Interest-bearing | 2,113,000 | 1,450,149 |
Short-term borrowings | 139,349 | 131,422 |
Finance leases payable | 0 | 0 |
Federal Home Loan Bank borrowings | 0 | 0 |
Junior subordinated notes issued to capital trusts | 0 | 0 |
Subordinated debentures | 0 | 0 |
Other long-term debt | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Debt securities available for sale | 785,977 | 414,101 |
Debt securities held to maturity | 192,564 | |
Loans held for sale | 5,476 | 678 |
Loans held for investment, net | 0 | 0 |
Interest receivable | 18,525 | 14,736 |
Federal Home Loan Bank stock | 15,381 | 14,678 |
Derivative Assets | 1,848 | 321 |
Financial liabilities: | ||
Non-interest bearing | 0 | 0 |
Interest-bearing | 953,427 | 716,369 |
Short-term borrowings | 0 | 0 |
Finance leases payable | 1,224 | 1,338 |
Federal Home Loan Bank borrowings | 146,913 | 134,995 |
Junior subordinated notes issued to capital trusts | 39,391 | 21,215 |
Subordinated debentures | 11,083 | 0 |
Other long-term debt | 32,250 | 7,500 |
Derivative Liabilities | 3,242 | 667 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Debt securities available for sale | 0 | 0 |
Debt securities held to maturity | 0 | |
Loans held for sale | 0 | 0 |
Loans held for investment, net | 3,427,952 | 2,343,654 |
Interest receivable | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Derivative Assets | 0 | 0 |
Financial liabilities: | ||
Non-interest bearing | 0 | 0 |
Interest-bearing | 0 | 0 |
Short-term borrowings | 0 | 0 |
Finance leases payable | 0 | 0 |
Federal Home Loan Bank borrowings | 0 | 0 |
Junior subordinated notes issued to capital trusts | 0 | 0 |
Subordinated debentures | 0 | 0 |
Other long-term debt | 0 | 0 |
Derivative Liabilities | $ 0 | $ 0 |
Leases - Leases Acquired in Bus
Leases - Leases Acquired in Business Combination (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 01, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 4,499 | $ 0 | ||
Operating lease liability | 5,430 | |||
ATBancorp | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 1,300 | |||
Operating lease liability | $ 2,200 | |||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | 2,892 | $ 2,900 | ||
Operating lease liability | $ 2,892 | $ 2,900 |
Leases - Assets and Lease Liabi
Leases - Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lease Right-of-Use Assets | ||
Operating lease right-of-use assets | $ 4,499 | $ 0 |
Finance lease right-of-use asset | 637 | |
Lease Liabilities | ||
Operating lease liability | 5,430 | |
Finance lease liability | $ 1,225 | |
Weighted-average remaining lease term | ||
Operating leases | 8 years 10 months 24 days | |
Finance lease | 6 years 8 months 1 day | |
Weighted-average discount rate | ||
Operating leases | 3.78% | |
Finance lease | 8.89% |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lease Costs | |||
Operating lease cost | $ 1,068 | $ 0 | $ 0 |
Variable lease cost | 148 | 0 | 0 |
Short-term lease cost | 0 | 0 | 0 |
Interest on lease liabilities | 113 | 0 | 0 |
Amortization of right-of-use assets | 96 | 0 | 0 |
Net lease cost | 1,425 | 0 | 0 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 989 | 0 | 0 |
Operating cash flows from finance lease | 113 | 0 | 0 |
Finance cash flows from finance lease | 113 | 0 | 0 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 6,250 | 0 | 0 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 0 | $ 0 | $ 0 |
Leases - Future Lease Payments
Leases - Future Lease Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finance Leases | |
December 31, 2020 | $ 231 |
December 31, 2021 | 235 |
December 31, 2022 | 240 |
December 31, 2023 | 245 |
December 31, 2024 | 250 |
Thereafter | 426 |
Total undiscounted lease payments | 1,627 |
Amounts representing interest | (402) |
Lease liability | 1,225 |
Operating Leases | |
December 31, 2020 | 1,114 |
December 31, 2021 | 1,074 |
December 31, 2022 | 973 |
December 31, 2023 | 912 |
December 31, 2024 | 682 |
Thereafter | 2,132 |
Total undiscounted lease payments | 6,887 |
Amounts representing interest | (1,457) |
Lease liability | $ 5,430 |
Parent Company Only Financial_3
Parent Company Only Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||||
Income tax receivable | $ 2,318 | $ 2,361 | ||
Deferred income taxes | 3,530 | 8,273 | ||
Bank-owned life insurance | 81,625 | 60,989 | ||
Other assets | 147,960 | 115,102 | ||
Total assets | 4,653,573 | 3,291,480 | ||
Liabilities: | ||||
Other liabilities | 44,927 | 21,336 | ||
Total liabilities | 4,144,591 | 2,934,413 | ||
Shareholders’ equity: | ||||
Capital stock, preferred | 0 | 0 | ||
Capital stock, common | 16,581 | 12,463 | ||
Additional paid-in capital | 297,390 | 187,813 | ||
Retained earnings | 201,105 | 168,951 | ||
Treasury stock | (10,466) | (6,499) | ||
Accumulated other comprehensive loss | 4,372 | (5,661) | ||
Total shareholders' equity | 508,982 | 357,067 | $ 340,304 | $ 305,456 |
Total liabilities and shareholders' equity | 4,653,573 | 3,291,480 | ||
Parent Company | ||||
Assets: | ||||
Cash | 10,661 | 9,611 | ||
Investment in subsidiaries | 575,508 | 372,595 | ||
Income tax receivable | 1,182 | 117 | ||
Deferred income taxes | 0 | 44 | ||
Bank-owned life insurance | 5,127 | 4,999 | ||
Other assets | 2,256 | 1,482 | ||
Total assets | 594,734 | 388,848 | ||
Liabilities: | ||||
Long-term debt | 84,736 | 31,388 | ||
Deferred income taxes | 433 | 0 | ||
Other liabilities | 583 | 393 | ||
Total liabilities | 85,752 | 31,781 | ||
Shareholders’ equity: | ||||
Capital stock, preferred | 0 | 0 | ||
Capital stock, common | 16,581 | 12,463 | ||
Additional paid-in capital | 297,390 | 187,813 | ||
Retained earnings | 201,105 | 168,951 | ||
Treasury stock | (10,466) | (6,499) | ||
Accumulated other comprehensive loss | 4,372 | (5,661) | ||
Total shareholders' equity | 508,982 | 357,067 | ||
Total liabilities and shareholders' equity | $ 594,734 | $ 388,848 |
Parent Company Only Financial_4
Parent Company Only Financial Information - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Bank-owned life insurance | $ 1,877 | $ 1,610 | $ 1,388 | ||||||||
Operating expenses | $ (36,436) | $ (31,442) | $ (29,040) | $ (20,617) | $ (19,779) | $ (22,622) | $ (20,586) | $ (20,228) | (117,535) | (83,215) | (80,123) |
Income tax benefit | (1,791) | 3,256 | 3,218 | 1,890 | 1,696 | 1,806 | 2,131 | 1,984 | 6,573 | 7,617 | 10,376 |
Net income | $ 13,371 | $ 12,300 | $ 10,674 | $ 7,285 | $ 7,624 | $ 6,778 | $ 8,156 | $ 7,793 | 43,630 | 30,351 | 18,699 |
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividends received from subsidiaries | 15,000 | 25,017 | 6,500 | ||||||||
Interest income and dividends on investment securities | 84 | 43 | 47 | ||||||||
Investment securities gains | 47 | (48) | 0 | ||||||||
Interest on debt | (3,439) | (1,596) | (1,406) | ||||||||
Bank-owned life insurance | 130 | 127 | 126 | ||||||||
Income from MidWestOne Insurance Services, Inc. | 943 | 0 | |||||||||
Operating expenses | (4,130) | (2,940) | (2,281) | ||||||||
Income before income taxes and equity in subsidiaries’ undistributed income | 8,635 | 20,603 | 2,986 | ||||||||
Income tax benefit | (1,394) | (823) | (1,137) | ||||||||
Income before equity in subsidiaries’ undistributed income | 10,029 | 21,426 | 4,123 | ||||||||
Equity in subsidiaries’ undistributed income | 33,601 | 8,925 | 14,576 | ||||||||
Net income | $ 43,630 | $ 30,351 | $ 18,699 |
Parent Company Only Financial_5
Parent Company Only Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 13,371 | $ 12,300 | $ 10,674 | $ 7,285 | $ 7,624 | $ 6,778 | $ 8,156 | $ 7,793 | $ 43,630 | $ 30,351 | $ 18,699 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Increase (decrease) in deferred income taxes, net | 2,708 | (676) | 744 | ||||||||
Stock-based compensation | 1,156 | 1,030 | 868 | ||||||||
Gain on sale of assets of MidWestOne Insurance Services, Inc. | (1,076) | 0 | 0 | ||||||||
Increase in cash surrender value of bank-owned life insurance | (1,877) | (1,610) | (1,388) | ||||||||
Other assets | 1,917 | (6,996) | (5,309) | ||||||||
Other liabilities | (5,953) | 4,548 | (1,482) | ||||||||
Net cash provided by operating activities | 47,314 | 42,763 | 41,072 | ||||||||
Cash flows from investing activities | |||||||||||
Proceeds from sales of debt securities available for sale | 125,452 | 14,490 | 22,538 | ||||||||
Purchases of debt securities available for sale | (289,733) | (61,512) | (62,849) | ||||||||
Proceeds from sale of assets of MidWestOne Insurance Services, Inc. | 1,175 | 0 | 0 | ||||||||
Net cash provided by (used in) investing activities | 72,745 | (94,442) | (148,750) | ||||||||
Cash flows from financing activities: | |||||||||||
Long-term debt | (8,363) | 16,000 | (5,000) | ||||||||
Proceeds from share-based award activity | 0 | 137 | 8 | ||||||||
Taxes paid relating to net share settlement of equity awards | (103) | (89) | (114) | ||||||||
Dividends paid | (11,476) | (9,535) | (8,061) | ||||||||
Issuance of common stock | 0 | 0 | 25,688 | ||||||||
Payment of stock issuance costs | (323) | 0 | (1,328) | ||||||||
Repurchase of common stock | (4,679) | (2,129) | 0 | ||||||||
Net cash provided by (used in) financing activities | (92,055) | 46,187 | 115,422 | ||||||||
Net increase (decrease) in cash and cash equivalents | 28,004 | (5,492) | 7,744 | ||||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 43,630 | 30,351 | 18,699 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Undistributed income of subsidiaries, net of dividends and distributions | (33,601) | (8,925) | (14,576) | ||||||||
Amortization | 134 | 95 | 101 | ||||||||
Increase (decrease) in deferred income taxes, net | (43) | (42) | (93) | ||||||||
Stock-based compensation | 1,156 | 1,030 | 868 | ||||||||
Gain on sale of assets of MidWestOne Insurance Services, Inc. | (1,076) | 0 | 0 | ||||||||
Increase in cash surrender value of bank-owned life insurance | (128) | (127) | (126) | ||||||||
Other assets | (403) | (405) | 1,617 | ||||||||
Other liabilities | (4) | 59 | 13 | ||||||||
Net cash provided by operating activities | 9,665 | 22,036 | 6,503 | ||||||||
Cash flows from investing activities | |||||||||||
Proceeds from sales of debt securities available for sale | 43 | 1 | 1 | ||||||||
Purchases of debt securities available for sale | (9) | (10) | (10) | ||||||||
Proceeds from sale of assets of MidWestOne Insurance Services, Inc. | 1,175 | 0 | 0 | ||||||||
Cash and earnings transferred in dissolution of MidWestOne Insurance Services, Inc. | 631 | 0 | 0 | ||||||||
Net cash paid in business acquisition | (18,624) | 0 | 0 | ||||||||
Investment in subsidiary | 0 | 0 | (16,200) | ||||||||
Net cash provided by (used in) investing activities | (16,784) | (9) | (16,209) | ||||||||
Cash flows from financing activities: | |||||||||||
Long-term debt | 24,750 | (5,000) | (5,000) | ||||||||
Proceeds from share-based award activity | 0 | 137 | 100 | ||||||||
Taxes paid relating to net share settlement of equity awards | (103) | (89) | (114) | ||||||||
Dividends paid | (11,476) | (9,535) | (8,061) | ||||||||
Issuance of common stock | 0 | 0 | 25,688 | ||||||||
Payment of stock issuance costs | (323) | 0 | (1,328) | ||||||||
Repurchase of common stock | (4,679) | (2,129) | 0 | ||||||||
Net cash provided by (used in) financing activities | 8,169 | (16,616) | 11,285 | ||||||||
Net increase (decrease) in cash and cash equivalents | 1,050 | 5,411 | 1,579 | ||||||||
Cash Balance: | |||||||||||
Beginning | $ 9,611 | $ 4,200 | 9,611 | 4,200 | 2,621 | ||||||
Ending | $ 10,661 | $ 9,611 | $ 10,661 | $ 9,611 | $ 4,200 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 20, 2019 | Mar. 04, 2020 | Jan. 22, 2020 |
Par Value | |||
Subsequent Event [Line Items] | |||
Stock repurchase (in shares) | 38,746 | ||
Subsequent event | Par Value | |||
Subsequent Event [Line Items] | |||
Stock repurchased | $ 1.2 | ||
Shares available for repurchase | $ 7.8 | ||
Subsequent event | Par Value | |||
Subsequent Event [Line Items] | |||
Dividend payable (in dollars per share) | $ 0.22 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 50,026 | $ 54,076 | $ 44,951 | $ 33,388 | $ 33,224 | $ 32,210 | $ 31,822 | $ 30,853 | $ 182,441 | $ 128,109 | $ 118,926 |
Interest expense | 10,442 | 10,818 | 10,119 | 7,412 | 6,671 | 6,099 | 5,392 | 4,679 | 38,791 | 22,841 | 15,145 |
Net interest income | 39,584 | 43,258 | 34,832 | 25,976 | 26,553 | 26,111 | 26,430 | 26,174 | 143,650 | 105,268 | 103,781 |
Provision for loan losses | 604 | 4,264 | 696 | 1,594 | 3,250 | 950 | 1,250 | 1,850 | 7,158 | 7,300 | 17,334 |
Noninterest income | 9,036 | 8,004 | 8,796 | 5,410 | 5,796 | 6,045 | 5,693 | 5,681 | 31,246 | 23,215 | 22,751 |
Noninterest expense | 36,436 | 31,442 | 29,040 | 20,617 | 19,779 | 22,622 | 20,586 | 20,228 | 117,535 | 83,215 | 80,123 |
Income before income tax expense | 11,580 | 15,556 | 13,892 | 9,175 | 9,320 | 8,584 | 10,287 | 9,777 | 50,203 | 37,968 | 29,075 |
Income tax expense | (1,791) | 3,256 | 3,218 | 1,890 | 1,696 | 1,806 | 2,131 | 1,984 | 6,573 | 7,617 | 10,376 |
Net income | $ 13,371 | $ 12,300 | $ 10,674 | $ 7,285 | $ 7,624 | $ 6,778 | $ 8,156 | $ 7,793 | $ 43,630 | $ 30,351 | $ 18,699 |
Basic earnings per common share (in dollars per share) | $ 0.83 | $ 0.76 | $ 0.72 | $ 0.60 | $ 0.62 | $ 0.55 | $ 0.67 | $ 0.64 | $ 2.93 | $ 2.48 | $ 1.55 |
Diluted earnings per common share (in dollars per share) | $ 0.83 | $ 0.76 | $ 0.72 | $ 0.60 | $ 0.62 | $ 0.55 | $ 0.67 | $ 0.64 | $ 2.93 | $ 2.48 | $ 1.55 |