Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 06, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | COUNTY BANCORP, INC. | |
Entity Central Index Key | 0001470205 | |
Trading Symbol | ICBK | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-36808 | |
Entity Tax Identification Number | 39-1850431 | |
Entity Address, Address Line One | 2400 South 44th Street | |
Entity Address, City or Town | Manitowoc | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 54221 | |
City Area Code | 920 | |
Local Phone Number | 686-9998 | |
Entity Incorporation, State or Country Code | WI | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 6,026,748 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 72,329 | $ 19,084 |
Interest earning cash at other financial institutions | 416 | 416 |
Securities available-for-sale, at fair value | 349,334 | 352,854 |
FHLB Stock | 5,485 | 5,758 |
Loans held for sale | 15,805 | 35,976 |
Loans, net of allowance for loan losses of $11,466 as of June 30, 2021; $14,808 as of December 31, 2020 | 990,424 | 981,477 |
Premises and equipment, net | 18,923 | 14,898 |
Loan servicing rights | 19,478 | 18,396 |
Other real estate owned, net | 914 | 1,077 |
Cash surrender value of bank owned life insurance | 31,678 | 31,275 |
Accrued interest receivable and other assets | 12,274 | 11,093 |
Total assets | 1,517,072 | 1,472,358 |
Deposits: | ||
Noninterest-bearing | 158,880 | 163,202 |
Interest-bearing | 976,846 | 877,624 |
Total deposits | 1,135,726 | 1,040,826 |
Other borrowings | 35,557 | 49,006 |
Advances from FHLB | 88,000 | 129,000 |
Subordinated debentures | 67,519 | 67,111 |
Deferred tax liability, net | 2,951 | 2,302 |
Accrued interest payable and other liabilities | 12,507 | 12,337 |
Total liabilities | 1,342,260 | 1,300,582 |
SHAREHOLDERS' EQUITY | ||
Preferred stock- $1,000 stated value; 15,000 shares authorized; 8,000 shares issued | 8,000 | 8,000 |
Common stock - $0.01 par value; 50,000,000 authorized; 7,250,476 shares issued and 6,026,748 shares outstanding as of June 30, 2021; 7,212,727 shares issued and 6,197,965 shares outstanding as of December 31, 2020 | 29 | 29 |
Surplus | 56,272 | 55,346 |
Retained earnings | 127,992 | 118,712 |
Treasury stock, at cost; 1,223,728 shares at June 30, 2021; 1,014,762 shares at December 31, 2020 | (22,346) | (17,606) |
Accumulated other comprehensive income | 4,865 | 7,295 |
Total shareholders' equity | 174,812 | 171,776 |
Total liabilities and shareholders' equity | 1,517,072 | 1,472,358 |
Core Deposit | ||
ASSETS | ||
Core deposit intangible, net of accumulated amortization of $1,789 as of June 30, 2021; $1,747 as of December 31, 2020 | $ 12 | $ 54 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Allowance for loan losses | $ 11,466 | $ 14,808 |
Preferred Stock, stated value | $ 1,000 | $ 1,000 |
Preferred Stock, shares authorized | 15,000 | 15,000 |
Preferred Stock, shares issued | 8,000 | 8,000 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 7,250,476 | 7,212,727 |
Common Stock, shares outstanding | 6,026,748 | 6,197,965 |
Treasury Stock, shares | 1,223,728 | 1,014,762 |
Core Deposit | ||
Accumulated amortization | $ 1,789 | $ 1,747 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | [1] | Jun. 30, 2021 | Jun. 30, 2020 | |
INTEREST AND DIVIDEND INCOME | |||||
Loans, including fees | $ 12,000 | $ 12,009 | $ 23,523 | $ 24,574 | |
Taxable securities | 2,205 | 1,283 | 4,092 | 2,565 | |
Tax-exempt securities | 261 | 162 | 508 | 168 | |
Federal funds sold and other | 71 | 111 | 129 | 336 | |
Total interest and dividend income | 14,537 | 13,565 | 28,252 | 27,643 | |
INTEREST EXPENSE | |||||
Deposits | 1,716 | 3,721 | 3,786 | 8,068 | |
FHLB advances and other borrowed funds | 277 | 343 | 598 | 587 | |
Subordinated debentures | 1,106 | 736 | 2,212 | 1,442 | |
Total interest expense | 3,099 | 4,800 | 6,596 | 10,097 | |
Net interest income | 11,438 | 8,765 | 21,656 | 17,546 | |
Provision for (recovery of) loan losses | (4,278) | 1,142 | (4,036) | 3,360 | |
Net interest income after provision for loan losses | 15,716 | 7,623 | 25,692 | 14,186 | |
NON-INTEREST INCOME | |||||
Crop insurance commission | 291 | 229 | 593 | 458 | |
Gain on sale of loans | 1,873 | 1,045 | 3,552 | 1,588 | |
Gain (loss) on sale of securities | (1,453) | 570 | (1,453) | 570 | |
Other | 259 | 362 | 832 | 582 | |
Total non-interest income | 2,251 | 3,501 | 5,964 | 6,221 | |
NON-INTEREST EXPENSE | |||||
Employee compensation and benefits | 6,426 | 4,594 | 12,008 | 9,854 | |
Occupancy | 293 | 305 | 572 | 659 | |
Information processing | 664 | 663 | 1,325 | 1,333 | |
Professional fees | 450 | 480 | 1,252 | 881 | |
Writedown of other real estate owned | 1,360 | ||||
Goodwill impairment | 5,038 | ||||
Loss (gain) on sale of fixed assets | (1,075) | (1) | (1,081) | 349 | |
Merger-related professional fees | 385 | 385 | |||
Other | 1,622 | 1,424 | 3,069 | 3,008 | |
Total non-interest expense | 8,765 | 7,465 | 17,530 | 22,482 | |
Income (loss) before income taxes | 9,202 | 3,659 | 14,126 | (2,075) | |
Income tax expense | 2,459 | 926 | 3,455 | 379 | |
NET INCOME (LOSS) | 6,743 | 2,733 | 10,671 | (2,454) | |
Less: Cash dividends declared on preferred stock | (79) | (99) | (160) | (207) | |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 6,664 | $ 2,634 | $ 10,511 | $ (2,661) | |
NET INCOME (LOSS) PER SHARE: | |||||
Basic | $ 1.08 | $ 0.40 | $ 1.70 | $ (0.40) | |
Diluted | 1.07 | 0.40 | 1.69 | (0.40) | |
Dividends paid per share | $ 0.10 | $ 0.07 | $ 0.20 | $ 0.14 | |
Services Charges | |||||
NON-INTEREST INCOME | |||||
Non-interest income | $ 165 | $ 139 | $ 284 | $ 252 | |
Loan Servicing Fees, Net | |||||
NON-INTEREST INCOME | |||||
Non-interest income | $ 1,116 | $ 1,156 | $ 2,156 | $ 2,771 | |
[1] | Amounts reclassed to current classifications from original presentation |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 6,743 | $ 2,733 | [1] | $ 10,671 | $ (2,454) |
Other comprehensive income: | |||||
Unrealized gain (loss) on securities available-for-sale | 4,322 | 5,685 | (5,346) | 9,132 | |
Income tax benefit (expense) | (1,176) | (1,548) | 1,457 | (2,487) | |
Reclassification for realized losses (gains) on securities | 1,453 | (570) | 1,453 | (570) | |
Income tax expense (benefit) | (396) | 154 | (396) | 154 | |
Total other comprehensive income (loss) on securities available-for-sale | 4,203 | 3,721 | (2,832) | 6,229 | |
Unrealized gain (loss) on derivatives arising during the period | (186) | (60) | 553 | (1,254) | |
Income tax benefit (expense) | 51 | 17 | (151) | 342 | |
Total other comprehensive income (loss) on derivatives | (135) | (43) | 402 | (912) | |
Total other comprehensive income (loss) | 4,068 | 3,678 | (2,430) | 5,317 | |
Comprehensive income | $ 10,811 | $ 6,411 | $ 8,241 | $ 2,863 | |
[1] | Amounts reclassed to current classifications from original presentation |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | |
Balance at Dec. 31, 2019 | $ 174,513 | $ 8,000 | $ 28 | $ 54,122 | $ 115,595 | $ (5,030) | $ 1,798 | |
Net income (loss) | (5,188) | (5,188) | ||||||
Other comprehensive income (loss) | 1,639 | 1,639 | ||||||
Stock compensation expense | 314 | 314 | ||||||
Cash dividends declared on common stock | (466) | (466) | ||||||
Cash dividends declared on preferred stock | (108) | (108) | ||||||
Treasury stock purchases | (5,853) | (5,853) | ||||||
Proceeds from exercise of common stock options | 195 | 195 | ||||||
Balance at Mar. 31, 2020 | 165,046 | 8,000 | 28 | 54,631 | 109,833 | (10,883) | 3,437 | |
Balance at Dec. 31, 2019 | 174,513 | 8,000 | 28 | 54,122 | 115,595 | (5,030) | 1,798 | |
Net income (loss) | (2,454) | |||||||
Other comprehensive income (loss) | 5,317 | |||||||
Balance at Jun. 30, 2020 | 168,525 | 8,000 | 28 | 54,813 | 112,012 | (13,443) | 7,115 | |
Balance at Mar. 31, 2020 | 165,046 | 8,000 | 28 | 54,631 | 109,833 | (10,883) | 3,437 | |
Net income (loss) | 2,733 | [1] | 2,733 | |||||
Other comprehensive income (loss) | 3,678 | 3,678 | ||||||
Stock compensation expense | 182 | 182 | ||||||
Cash dividends declared on common stock | (455) | (455) | ||||||
Cash dividends declared on preferred stock | (99) | (99) | ||||||
Treasury stock purchases | (2,560) | (2,560) | ||||||
Balance at Jun. 30, 2020 | 168,525 | 8,000 | 28 | 54,813 | 112,012 | (13,443) | 7,115 | |
Balance at Dec. 31, 2020 | 171,776 | 8,000 | 29 | 55,346 | 118,712 | (17,606) | 7,295 | |
Net income (loss) | 3,928 | 3,928 | ||||||
Other comprehensive income (loss) | (6,498) | (6,498) | ||||||
Stock compensation expense | 273 | 273 | ||||||
Cash dividends declared on common stock | (620) | (620) | ||||||
Cash dividends declared on preferred stock | (81) | (81) | ||||||
Treasury stock purchases | (2,513) | (2,513) | ||||||
Proceeds from exercise of common stock options | 72 | 72 | ||||||
Balance at Mar. 31, 2021 | 166,337 | 8,000 | 29 | 55,691 | 121,939 | (20,119) | 797 | |
Balance at Dec. 31, 2020 | 171,776 | 8,000 | 29 | 55,346 | 118,712 | (17,606) | 7,295 | |
Net income (loss) | 10,671 | |||||||
Other comprehensive income (loss) | (2,430) | |||||||
Balance at Jun. 30, 2021 | 174,812 | 8,000 | 29 | 56,272 | 127,992 | (22,346) | 4,865 | |
Balance at Mar. 31, 2021 | 166,337 | 8,000 | 29 | 55,691 | 121,939 | (20,119) | 797 | |
Net income (loss) | 6,743 | 6,743 | ||||||
Other comprehensive income (loss) | 4,068 | 4,068 | ||||||
Stock compensation expense | 224 | 224 | ||||||
Cash dividends declared on common stock | (611) | (611) | ||||||
Cash dividends declared on preferred stock | (79) | (79) | ||||||
Treasury stock purchases | (2,227) | (2,227) | ||||||
Proceeds from exercise of common stock options | 357 | 357 | ||||||
Balance at Jun. 30, 2021 | $ 174,812 | $ 8,000 | $ 29 | $ 56,272 | $ 127,992 | $ (22,346) | $ 4,865 | |
[1] | Amounts reclassed to current classifications from original presentation |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Treasury stock purchase, shares | 91,946 | 117,020 | 127,280 | 255,650 |
Options, exercised | 18,274 | 6,206 | 14,590 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 10,671 | $ (2,454) |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 598 | 676 |
Amortization of core deposit intangible | 42 | 100 |
Amortization of subordinated debentures discount | 408 | 76 |
Impairment of goodwill | 5,038 | |
Provision for (recovery of) loan losses | (4,036) | 3,360 |
Realized loss (gain) on sales of securities available-for-sale | 1,453 | (570) |
Realized loss (gain) on sales of premises and equipment | (1,082) | 236 |
Realized loss on sales of other real estate owned | 17 | 4 |
Writedown of other real estate owned | 1,360 | |
Increase in cash surrender value of bank owned life insurance | (403) | (344) |
Deferred income tax expense (benefit) | 1,710 | (240) |
Stock compensation expense | 497 | 496 |
Net amortization of securities | 1,074 | 443 |
Net change in: | ||
Accrued interest receivable and other assets | (1,181) | (655) |
Loans held for sale | 20,171 | (9,696) |
Loan servicing rights | (1,082) | (1,493) |
Accrued interest payable and other liabilities | 573 | (1,628) |
Net cash provided by (used in) operating activities | 29,430 | (5,291) |
Cash flows from investing activities | ||
Proceeds from maturities, principal repayments, and call of securities available-for-sale | 17,001 | 13,000 |
Purchases of securities available-for-sale | (53,754) | (100,339) |
Proceeds from sales of securities available-for-sale | 33,852 | 27,790 |
Purchase (redemption) of FHLB stock | 273 | (4,130) |
Purchase of bank owned life insurance | (10,000) | |
Loan originations and principal collections, net | (5,271) | (51,809) |
Proceeds from sales of premises and equipment | 1,750 | 2,199 |
Purchases of premises and equipment | (5,291) | (3,822) |
Proceeds from sales of other real estate owned | 506 | 1,528 |
Net cash used in investing activities | (10,934) | (125,583) |
Cash flows from financing activities | ||
Net increase in demand and savings deposits | 140,095 | 86,554 |
Net decrease in certificates of deposits | (45,195) | (114,943) |
Net change in other borrowings | (13,449) | 101,054 |
Proceeds from FHLB advances | 376,000 | 516,000 |
Repayment of FHLB advances | (417,000) | (467,000) |
Payments to acquire treasury stock | (4,740) | (8,413) |
Proceeds from issuance of subordinated debt | 16,976 | |
Proceeds from issuance of common stock | 429 | 195 |
Dividends paid on common stock | (1,231) | (921) |
Dividends paid on preferred stock | (160) | (207) |
Net cash provided by financing activities | 34,749 | 129,295 |
Net change in cash and cash equivalents | 53,245 | (1,579) |
Cash and cash equivalents, beginning of period | 19,500 | 129,011 |
Cash and cash equivalents, end of period | 72,745 | 127,432 |
Cash paid during the period for: | ||
Interest | 7,685 | 12,729 |
Income taxes | 490 | 350 |
Noncash operating activities: | ||
Change in accounting principle | 2,484 | |
Noncash investing activities: | ||
Transfer from loans to other real estate owned | $ 360 | |
Loans charged off | $ 144 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION The unaudited consolidated financial statements of County Bancorp, Inc. (“we,” “us,” ”our,” or the “Company”) and its subsidiaries, including Investors Community Bank (the “Bank”), have been prepared, in the opinion of management, to reflect all adjustments necessary for a fair presentation of the financial position and results of operations as of and for the three and six months ended June 30, 2021. The results of operations for the three and six months ended June 30, 2021 may not necessarily be indicative of the results to be expected for the year ending December 31, 2021, or for any other period. Management of the Company is required to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Actual results could differ significantly from those estimates. These unaudited interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Certain information in footnote disclosure normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 12, 2021. Merger Transaction On June 22, 2021, we entered into an agreement and plan of merger (the “Merger Agreement”) with Nicolet Bankshares, Inc. (“Nicolet”), a Wisconsin corporation, pursuant to which the Company will merge with and into Nicolet (the “Merger”). Following the Merger, the Bank will merge with and into Nicolet National Bank, Nicolet’s wholly-owned bank subsidiary, with Nicolet National Bank continuing as the surviving bank, with all Bank branches operating under the Nicolet National Bank brand. T New Accounting Pronouncements On December 27, 2020, the Consolidated Appropriations Act (“CAA”), 2021, was signed into law which extended the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which expired on December 31, 2020. The CAA included a $900.0 billion COVID-19 relief package that included an additional $284.5 billion in PPP funding. In March 2021, President Biden signed the American Rescue Plan Act of 2021, a $1.9 trillion economic stimulus package that included cash payments to individuals, supplemental unemployment insurance, and modifications and expansion of the PPP. In March 2021, President Biden also signed the PPP Extension Act of 2021, which extended the PPP application deadline to May 31, 2021. Section 4013 of the CARES Act was extended in the CAA and allows financial institutions to elect to suspend troubled debt restructuring accounting under certain circumstances when the temporary restructuring is related to the Coronavirus Disease 2019 (COVID-19) pandemic. The Company has elected to implement Section 4013, and at June 30, 2021, loan balances totaling $2.9 million were still participating in the payment deferral program and were not classified as troubled debt restructurings. In March 2020, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses current loss model calculations. At this time, the effect this ASU will have on its consolidated financial statements is still being quantified as the Company ensures data, assumptions, and methods all comply with the requirements of ASU 2016-13. In October 2019, the FASB voted to delay the effective date for the credit losses standard to January 2023 for certain entities, including SEC filers that qualify as smaller reporting companies and private companies. As a smaller reporting company, the Company is eligible for the delay and will be deferring adoption . Management will continue to progress on its implementation project plan and improve the Company’s approach throughout the deferral period. |
ACQUISITION
ACQUISITION | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
ACQUISITION | NOTE 2 – ACQUISITION On June 22, 2021, the Company entered into the Merger Agreement with Nicolet Bankshares, Inc. Inc. Following the Merger, the Bank will merge with and into Nicolet National Bank, Nicolet’s wholly-owned bank subsidiary, with Nicolet National Bank continuing as the surviving bank, with all Bank branches operating under the Nicolet National Bank brand. Under the terms of the Merger Agreement, at the effective time of the Merger, the Company’s shareholders will have the right to receive for each share of the Company’s common stock, at the election of each holder and subject to proration, either $37.18 in cash or 0.48 shares of Nicolet common stock. County shareholder elections will be prorated to ensure the total consideration will consist of approximately 20% cash and approximately 80% common stock. T |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 3 – EARNINGS PER SHARE Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share plus the dilutive effect of share-based compensation using the treasury stock method. For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 (dollars in thousands) Net income (loss) from continuing operations $ 6,743 $ 2,733 $ 10,671 $ (2,454 ) Less: preferred stock dividends 79 99 160 207 Income (loss) available to common shareholders for basic earnings per common share $ 6,664 $ 2,634 $ 10,511 $ (2,661 ) Weighted average number of common shares issued 7,242,997 7,198,901 7,230,746 7,190,923 Less: weighted average treasury shares 1,179,271 759,294 1,129,954 639,017 Plus: weighted average of participating restricted stock units 97,915 65,291 81,047 52,281 Weighted average number of common shares and participating securities outstanding 6,161,641 6,504,898 6,181,839 6,604,187 Effect of dilutive options 46,438 28,511 41,952 39,548 Weighted average number of common shares outstanding used to calculate diluted earnings per common share 6,208,079 6,533,409 6,223,791 6,643,735 Weighted average of anti-dilutive options 39,495 62,313 47,163 55,764 |
SECURITIES AVAILABLE-FOR-SALE
SECURITIES AVAILABLE-FOR-SALE | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
SECURITIES AVAILABLE-FOR-SALE | NOTE 4 – SECURITIES AVAILABLE-FOR-SALE The amortized cost and fair value of securities available-for-sale as of June 30, 2021 and December 31, 2020 were as follows: Amortized Unrealized Unrealized Fair Cost Gains Losses Value (dollars in thousands) June 30, 2021 U.S. government and agency securities $ 12,948 $ — $ (107 ) $ 12,841 Municipal securities 127,089 3,741 (826 ) 130,004 Mortgage-backed securities 140,037 5,822 (805 ) 145,054 Corporate bonds 45,000 242 (193 ) 45,049 Asset-backed securities 16,215 172 (1 ) 16,386 $ 341,289 $ 9,977 $ (1,932 ) $ 349,334 December 31, 2020 U.S. government and agency securities $ 14,745 $ — $ (152 ) $ 14,593 Municipal securities 149,203 4,736 (285 ) 153,654 Mortgage-backed securities 127,804 7,872 (298 ) 135,378 Corporate bonds 32,500 21 (10 ) 32,511 Asset-backed securities 16,664 55 (1 ) 16,718 $ 340,916 $ 12,684 $ (746 ) $ 352,854 The amortized cost and fair value of securities at June 30, 2021 and December 31, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (dollars in thousands) June 30, 2021 Due in one year or less $ — $ — Due from one to five years — — Due from five to ten years 67,685 67,716 Due after ten years 117,352 120,178 Asset-backed securities 16,215 16,386 Mortgage-backed securities 140,037 145,054 $ 341,289 $ 349,334 December 31, 2020 Due in one year or less $ — $ — Due from one to five years — — Due from five to ten years 55,024 55,120 Due after ten years 141,424 145,638 Asset-backed securities 16,664 16,718 Mortgage-backed securities 127,804 135,378 $ 340,916 $ 352,854 Proceeds from the sale of available-for-sale securities were $33.9 million for the three and six months ended June 30, 2021, which resulted in a loss of $1.5 million. For the three and six months ended June 30, 2020, proceeds from the sale of available-for-sale securities were $27.8 million which resulted in a gain of $0.6 million. At June 30, 2021 and December 31, 2020, there were $32.5 million and $23.0 million, respectively, of securities pledged at the Federal Reserve Bank to secure municipal customer deposits. Federal Home Loan Bank (FHLB) advances were secured by $5.5 million and $5.8 million FHLB stock at June 30, 2021 and December 31, 2020, respectively. The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temorarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2021 and December 31, 2020: Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) June 30, 2021 U.S. government and agency securities $ — $ — $ 12,841 $ (107 ) $ 12,841 $ (107 ) Municipal securities 58,747 (826 ) — — 58,747 (826 ) Mortgage-backed securities 34,778 (805 ) — — 34,778 (805 ) Corporate bonds 15,307 (193 ) — — 15,307 (193 ) Asset-backed securities 1,496 (1 ) — — 1,496 (1 ) $ 110,328 $ (1,825 ) $ 12,841 $ (107 ) $ 123,169 $ (1,932 ) December 31, 2020 U.S. government and agency securities $ 12,217 $ (134 ) $ 2,376 $ (18 ) $ 14,593 $ (152 ) Municipal securities 30,849 (285 ) — — 30,849 (285 ) Mortgage-backed securities 7,781 (298 ) — — 7,781 (298 ) Corporate bonds 7,990 (10 ) — — 7,990 (10 ) Asset-backed securities 3,817 (1 ) — — 3,817 (1 ) $ 62,654 $ (728 ) $ 2,376 $ (18 ) $ 65,030 $ (746 ) The unrealized losses on the investments at June 30, 2021 and December 31, 2020 were due to market conditions as well as normal fluctuations and pricing inefficiencies. The contractual terms of the investments do not permit the issuers to settle the securities at a price less than the amortized cost basis of the investment. Because the Company does not intend to sell the investments and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of the amortized cost basis, which may be maturity, the Company did not consider these investments to be other-than-temporarily impaired at June 30, 2021 and December 31, 2020. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
LOANS | NOTE 5 – LOANS The components of loans were as follows: June 30, December 31, 2021 2020 (dollars in thousands) Agricultural loans $ 613,513 $ 606,881 Commercial real estate loans 245,810 235,969 Commercial loans 107,469 115,087 Residential real estate loans 34,873 38,084 Installment and consumer other 225 264 Total gross loans 1,001,890 996,285 Allowance for loan losses (11,466 ) (14,808 ) Net loans $ 990,424 $ 981,477 Net unamortized deferred fees totalling $0.3 million and deferred costs of $0.3 million as of June 30, 2021 and December 31, 2020, respectivley, are included in the total gross loans above. Changes in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2021 and 2020 were as follows: For the Three Months Ended June 30, 2021 Beginning Balance Provision for Loan Losses Loans Charged Off Loan Recoveries Ending Balance (dollars in thousands) Agricultural loans $ 11,527 $ (2,653 ) $ — $ — $ 8,874 Commercial real estate loans 2,858 (1,651 ) — 612 1,819 Commercial loans 691 (176 ) — 50 565 Residential real estate loans 5 203 — — 208 Installment and consumer other 1 (1 ) — — — Total $ 15,082 $ (4,278 ) $ — $ 662 $ 11,466 For the Six Months Ended June 30, 2021 Beginning Balance Provision for Loan Losses Loans Charged Off Loan Recoveries Ending Balance (dollars in thousands) Agricultural loans $ 10,859 $ (1,985 ) $ — $ — $ 8,874 Commercial real estate loans 3,139 (1,933 ) — 613 1,819 Commercial loans 805 (321 ) — 81 565 Residential real estate loans 5 203 — — 208 Installment and consumer other — — — — — Total $ 14,808 $ (4,036 ) $ — $ 694 $ 11,466 For the Three Months Ended June 30, 2020 Beginning Balance Provision for Loan Losses Loans Charged Off Loan Recoveries Ending Balance (dollars in thousands) Agricultural loans $ 12,685 $ (38 ) $ — $ 23.00 $ 12,670 Commercial real estate loans 2,577 1,281 — 1 3,859 Commercial loans 2,173 (75 ) (144 ) — 1,954 Residential real estate loans 112 (27 ) — — 85 Installment and consumer other — 1 — — 1 Total $ 17,547 $ 1,142 $ (144 ) $ 24 $ 18,569 For the Six Months Ended June 30, 2020 Beginning Balance Provision for Loan Losses Loans Charged Off Loan Recoveries Ending Balance (dollars in thousands) Agricultural loans $ 11,737 $ 910 $ — $ 23.00 $ 12,670 Commercial real estate loans 1,913 1,884 — 62 3,859 Commercial loans 1,599 498 (144 ) 1 1,954 Residential real estate loans 15 70 — — 85 Installment and consumer other 3 (2 ) — — 1 Total $ 15,267 $ 3,360 $ (144 ) $ 86 $ 18,569 The following tables present the balances in the allowance for loan losses and the recorded balance in loans by portfolio segment and based on impairment method as of June 30, 2021 and December 31, 2020: June 30, 2021 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total (dollars in thousands) Allowance for loan losses: Agricultural loans $ 1,892 $ 6,982 $ 8,874 Commercial real estate loans 217 1,602 1,819 Commercial loans 74 491 565 Residential real estate loans — 208 208 Installment and consumer other — — — Total ending allowance for loan losses 2,183 9,283 11,466 Loans: Agricultural loans 37,377 576,136 613,513 Commercial real estate loans 2,722 243,088 245,810 Commercial loans 2,503 104,966 107,469 Residential real estate loans — 34,873 34,873 Installment and consumer other — 225 225 Total loans 42,602 959,288 1,001,890 Net loans $ 40,419 $ 950,005 $ 990,424 December 31, 2020 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total (dollars in thousands) Allowance for loan losses: Agricultural loans $ 3,504 $ 7,355 $ 10,859 Commercial real estate loans 672 2,467 3,139 Commercial loans 86 719 805 Residential real estate loans — 5 5 Installment and consumer other — — — Total ending allowance for loan losses 4,262 10,546 14,808 Loans: Agricultural loans 63,777 543,104 606,881 Commercial real estate loans 7,077 228,892 235,969 Commercial loans 2,818 112,269 115,087 Residential real estate loans 59 38,025 38,084 Installment and consumer other — 264 264 Total loans 73,731 922,554 996,285 Net loans $ 69,469 $ 912,008 $ 981,477 The following tables present loans individually evaluated for impairment by class of loans at June 30, 2021 and December 31, 2020: June 30, 2021 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated (dollars in thousands) With no related allowance: Agricultural loans $ 7,300 $ 6,904 $ — Commercial real estate loans — — — Commercial loans 2,035 2,029 — Residential real estate loans — — — $ 9,335 $ 8,933 $ — With an allowance recorded: Agricultural loans $ 32,305 $ 30,473 $ 1,892 Commercial real estate loans 2,958 2,722 217 Commercial loans 503 474 74 Residential real estate loans — — — $ 35,766 $ 33,669 $ 2,183 Total $ 45,101 $ 42,602 $ 2,183 December 31, 2020 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated (dollars in thousands) With no related allowance: Agricultural loans $ 20,245 $ 20,120 $ — Commercial real estate loans 288 288 — Commercial loans 2,504 2,481 — Residential real estate loans 61 59 — $ 23,098 $ 22,948 $ — With an allowance recorded: Agricultural loans $ 47,971 $ 43,657 $ 3,504 Commercial real estate loans 8,245 6,790 672 Commercial loans 357 336 86 Residential real estate loans — — — $ 56,573 $ 50,783 $ 4,262 Total $ 79,671 $ 73,731 $ 4,262 The following table presents the aging of the recorded investment in past due loans at June 30, 2021 and December 31, 2020: 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Loans Not Past Due Total Loans (dollars in thousands) June 30, 2021 Agricultural loans $ 384 $ 348 $ 4,840 $ 5,572 $ 607,941 $ 613,513 Commercial real estate loans — — — — 245,810 245,810 Commercial loans — — 27 27 107,442 107,469 Residential real estate loans — — — — 34,873 34,873 Installment and consumer other — — — — 225 225 Total $ 384 $ 348 $ 4,867 $ 5,599 $ 996,291 $ 1,001,890 December 31, 2020 Agricultural loans $ 47 $ — $ 5,041 $ 5,088 $ 601,793 $ 606,881 Commercial real estate loans 82 — 4,283 4,365 231,604 235,969 Commercial loans — — 96 96 114,991 115,087 Residential real estate loans 4 — — 4 38,080 38,084 Installment and consumer other — — — — 264 264 Total $ 133 $ — $ 9,420 $ 9,553 $ 986,732 $ 996,285 The following table presents the recorded investment in nonaccrual loans by class of loan: June 30, December 31, 2021 2020 (dollars in thousands) Agricultural loans $ 27,986 $ 35,067 Commercial real estate loans 1,756 6,093 Commercial loans 329 405 Residential real estate loans — 59 Total $ 30,071 $ 41,624 The following tables present the average recorded investment and interest income recognized on impaired loans by portfolio segment for the three and six months ended June 30, 2021 and 2020: As of and for the Three Months Ended June 30, 2021 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized (dollars in thousands) Agricultural loans $ 39,605 $ 37,377 $ 1,892 $ 45,936 $ 103 Commercial real estate loans 2,958 2,722 217 4,898 36 Commercial loans 2,538 2,503 74 2,645 13 Residential real estate loans — — — 29 — Total $ 45,101 $ 42,602 $ 2,183 $ 53,508 $ 152 As of and for the Six Months Ended June 30, 2021 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized (dollars in thousands) Agricultural loans $ 39,605 $ 37,377 $ 1,892 $ 50,577 $ 1,029 Commercial real estate loans 2,958 2,722 217 4,900 73 Commercial loans 2,538 2,503 74 2,661 53 Residential real estate loans — — — 30 — Total $ 45,101 $ 42,602 $ 2,183 $ 58,168 $ 1,155 As of and for the Three Months Ended June 30, 2020 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized (dollars in thousands) Agricultural loans $ 62,268 $ 58,895 $ 3,826 $ 59,565 $ 1,060 Commercial real estate loans 9,420 9,351 2,471 6,496 115 Commercial loans 2,962 2,882 1,226 2,360 21 Residential real estate loans — 60 — 60 — Total $ 74,650 $ 71,188 $ 7,523 $ 68,480 $ 1,196 As of and for the Six Months Ended June 30, 2020 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized (dollars in thousands) Agricultural loans $ 62,268 $ 58,895 $ 3,826 $ 58,864 $ 2,320 Commercial real estate loans 9,420 9,351 2,471 6,517 140 Commercial loans 2,962 2,882 1,226 2,372 69 Residential real estate loans — 60 — 61 1 Total $ 74,650 $ 71,188 $ 7,523 $ 67,814 $ 2,530 Impaired loans include nonaccrual loans, troubled debt restructured loans, and loans that are 90 days or more past due and still accruing. For nonaccrual loans included in impaired loans, the interest income that would have been recognized had those loans been performing in accordance with their original terms would have been approximately $0.2 million and $2.1 million for the three months ended June 30, 2021 and 2020, respectively, and $0.2 million and $2.8 million for the six months ended June 30, 2021 and 2020, respectively. Troubled Debt Restructurings The Company allocated approximately $1.8 million and $3.8 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDR”) at June 30, 2021 and December 31, 2020, respectively. The Company had no additional lending commitments at June 30, 2021 or December 31, 2020 to customers with outstanding loans that were classified as TDRs. A TDR on nonaccrual status is classified as a nonaccrual loan until evaluation supports reasonable assurance of repayment and there has been a satisfactory period of performance according to the modified terms of the loan. Once this assurance is reached, the TDR is returned to accrual status. The following table presents the TDRs and related allowance for loan losses by loan class at June 30, 2021 and December 31, 2020: Non-Accrual Restructured and Accruing Total Allowance for Loan Losses Allocated (dollars in thousands) June 30, 2021 Agricultural loans $ 21,379 $ 4,784 $ 26,163 $ 1,595 Commercial real estate loans 1,756 966 2,722 217 Commercial loans 27 1,891 1,918 4 Total $ 23,162 $ 7,641 $ 30,803 $ 1,816 December 31, 2020 Agricultural loans $ 27,223 $ 15,690 $ 42,913 $ 3,494 Commercial real estate loans 1,810 984 2,794 315 Commercial loans 68 1,918 1,986 4 Total $ 29,101 $ 18,592 $ 47,693 $ 3,813 The following table provides the number of loans modified in a troubled debt restructuring investment by class for the three and six months ended June 30, 2021 and 2020: For the Three Months Ended June 30, 2021 June 30, 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Troubled debt restructurings: Agricultural loans — $ — 6 $ 2,640 Total — $ — 6 $ 2,640 For the Six Months Ended June 30, 2021 June 30, 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Troubled debt restructurings: Agricultural loans 5 $ 1,586 8 $ 2,872 Total 5 $ 1,586 8 $ 2,872 The following table provides the troubled debt restructurings for the three and six months ended June 30, 2021 and 2020 grouped by type of concession: For the Three Months Ended June 30, 2021 June 30, 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Agricultural loans Payment concessions — $ — 1 $ 231 Term concessions — — — 435 Extension of interest-only payments — — 2 75 Capitalized interest — — 1 153 Combination of payment concessions and interest rate concessions — — 2 1,746 Total — $ — 6 $ 2,640 For the Six Months Ended June 30, 2021 June 30, 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Agricultural loans Payment concessions — $ — 1 $ 231 Term concessions — — 1 484 Extension of interest-only payments 5 1,586 2 75 Capitalized interest — — 1 153 Combination of extension of term and interest rate concessions — — 3 1,929 Total 5 $ 1,586 8 $ 2,872 No troubled debt restructurings defaulted within twelve months of the restructure date during the three and six months ended June 30, 2021 and June 30, 2020. The CAA extended Section 4013 of the CARES Act which allows financial institutions to elect to suspend troubled debt restructuring accounting under certain circumstances when the temporary restructuring is related to the COVID-19 pandemic. The Company has elected to implement Section 4013, and the balance of those loans modified under Section 4103 was $2.9 million and $16.8 million at June 30, 2021 and December 31, 2020, respectively. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes agricultural, commercial, and commercial real estate loans individually by classifying the credits as to credit risk. The process of analyzing loans for changes in risk rating is ongoing through routine monitoring of the portfolio and annual internal credit reviews for credits with total exposure in excess of $300,000. The Company uses the following definitions for credit risk ratings: Sound. Credits classified as sound show very good probability of ongoing ability to meet and/or exceed obligations. Acceptable. Credits classified as acceptable show a good probability of ongoing ability to meet and/or exceed obligations. Satisfactory. Credits classified as satisfactory show fair probability of ongoing ability to meet and/or exceed obligations. Low Satisfactory . Credits classified as low satisfactory show fair probability of ongoing ability to meet and/or exceed obligations. Low satisfactory credits may be newer or have a less established track record of financial performance, inconsistent earnings, or may be going through an expansion. Watch. Credits classified as watch show some questionable probability of ongoing ability to meet and/or exceed obligations. Special Mention. Credits classified as special mention show potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or of the institution’s credit position at some future date. Substandard – Performing. Credits classified as substandard – performing generally have well-defined weaknesses. Collateral coverage is adequate, and the loans are not considered impaired. Payments are being made and the loans are on accrual status. Substandard - Impaired . Credits classified as substandard-impaired generally have well-defined weaknesses that jeopardize the repayment of the debt. They have a distinct possibility that a loss will be sustained if the deficiencies are not corrected. Loans are considered impaired. Loans are either exhibiting signs of delinquency, are on non-accrual or are identified as a TDR. Doubtful. Credits 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 existing facts, conditions, and values, highly questionable. The Company categorizes residential real estate, installment and consumer other loans as satisfactory at the time of origination based on information obtained as to the ability of the borrower(s) to service their debt, such as current financial information, employment status and history, historical payment experience, credit scores and type and amount of collateral among other factors. The Company updates relevant information on these types of loans at the time of refinance, troubled debt restructuring or other indications of financial difficulty, downgrading as needed using the same category descriptions as for agricultural, commercial, and commercial real estate loans. In addition, the Company further considers current payment status as an indicator of which risk category to assign the borrower. The greater the level of deteriorated risk as indicated by a loan’s assigned risk category, the greater the likelihood a loss will occur in the future. If the loan is substandard - impaired, then the loan loss reserves for the loan are recorded at the loss level of impairment. If the loan is not impaired, then its loan loss reserves are determined by the application of a loss rate that increases with risk in accordance with the allowance for loan loss analysis. The Bank will not accrue interest on any loan past due 90-days or more. Furthermore, the Bank will place any loan on non-accrual status for which payment in full of principal and interest is not expected. A loan shall be placed on non-accrual as soon as it is determined that payment in full of interest and/or principal is unlikely. The Bank’s chief credit officer may approve the placement of a loan on non-accrual prior to 90-days past due. Based on the most recent analysis performed by management, the risk category of loans by class of loans was as follows as of June 30, 2021 and December 31, 2020: As of June 30, 2021 Sound/ Acceptable/ Satisfactory/ Low Satisfactory Watch Special Mention Substandard Performing Substandard Impaired Total Loans (dollars in thousands) Agricultural loans $ 467,743 $ 94,254 $ — $ 23,232 $ 28,284 $ 613,513 Commercial real estate loans 220,925 20,864 — 2,265 1,756 245,810 Commercial loans 98,408 5,920 566 2,246 329 107,469 Residential real estate loans 34,669 204 — — — 34,873 Installment and consumer other 225 — — — — 225 Total $ 821,970 $ 121,242 $ 566 $ 27,743 $ 30,369 $ 1,001,890 As of December 31, 2020 Sound/ Acceptable/ Satisfactory/ Low Satisfactory Watch Special Mention Substandard Performing Substandard Impaired Total Loans (dollars in thousands) Agricultural loans $ 374,595 $ 155,546 $ 1,854 $ 34,452 $ 40,434 $ 606,881 Commercial real estate loans 200,208 26,266 — 3,402 6,093 235,969 Commercial loans 103,488 8,022 647 2,566 364 115,087 Residential real estate loans 37,758 267 — — 59 38,084 Installment and consumer other 264 — — — — 264 Total $ 716,313 $ 190,101 $ 2,501 $ 40,420 $ 46,950 $ 996,285 |
LOAN SERVICING RIGHTS
LOAN SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2021 | |
Transfers And Servicing [Abstract] | |
LOAN SERVICING RIGHTS | NOTE 6 – LOAN SERVICING RIGHTS Loans serviced for others are not included in the accompanying consolidated balance sheets. The risks inherent in servicing assets relate primarily to changes in prepayments that result from shifts in interest rates. The unpaid principal balances of loans serviced for others were approximately $853.2 million and $812.6 million at June 30, 2021 and December 31, 2020, respectively. The fair value of these rights were approximately $19.5 million and $18.4 million at June 30, 2021 and December 31, 2020 The fair value of servicing rights is highly sensitive to changes in underlying assumptions. The Company’s portfolio of loans serviced for others is mostly comprised of fixed rate loans. Generally, as market interest rates rise, prepayments on fixed rate loans decrease due to a decline in refinancing activity, which results in an increase in the fair value of servicing rights. However, due to the cross-collateralization of loans in the portfolio and the government guarantee programs under which many of the loans were originated, prepayments on the portfolio tend to be muted in comparison to other types of loans, such as mortgage loans. Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time, and those assumptions may not be appropriate if they were applied at a different time. The fair value of servicing rights at June 30, 2021 was determined using an assumed discount rate of 15.0% percent and a weighted average run-off rate of 16.78%, ranging from 16.25% to 24.32%, depending upon loan type, the stratification of the specific right, and nominal credit losses. The fair value of servicing rights at December 31, 2020 was determined using an assumed discount rate of 14.3% and weighted average run-off rate of 16.59%, ranging from 16.02% to 24.72%, depending upon the stratification of the specific right, and nominal credit losses. Changes to the fair value are reported in loan servicing fees within the consolidated statements of operations. The following tables summarize servicing rights capitalized, along with the aggregate activity in related valuation allowances for periods indicated. For the Three Months Ended June 30, 2021 2020 (dollars in thousands) Balance, beginning of period $ 18,864 $ 16,211 Additions, net 1,775 1,041 Fair value changes: Decay due to increases in principal paydowns or runoff (859 ) (727 ) Due to changes in valuation inputs or assumptions (302 ) (39 ) Balance, end of period $ 19,478 $ 16,486 For the Six Months Ended June 30, 2021 2020 (dollars in thousands) Balance, beginning of period $ 18,396 $ 15,921 Additions, net 3,362 1,546 Fair value changes: Decay due to increases in principal paydowns or runoff (1,130 ) (992 ) Due to changes in valuation inputs or assumptions (1,150 ) 11 Balance, end of period $ 19,478 $ 16,486 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 7 – DEPOSITS Deposits are summarized as follows at June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 (dollars in thousands) Demand deposits $ 158,880 $ 163,202 NOW and interest checking 136,180 96,624 Savings 9,059 7,367 Money market accounts 394,486 344,250 Certificates of deposit 259,386 304,580 National time deposits 18,648 44,347 Brokered deposits 159,087 80,456 Total deposits $ 1,135,726 $ 1,040,826 |
ADVANCES FROM FHLB AND OTHER BO
ADVANCES FROM FHLB AND OTHER BORROWINGS | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
ADVANCES FROM FHLB AND OTHER BORROWINGS | NOTE 8—ADVANCES FROM FHLB AND OTHER BORROWINGS The Bank had advances outstanding from the FHLB in the amount of $88.0 million and $129.0 million on June 30, 2021 and December 31, 2020, respectively. These advances, rates, and maturities were as follows: June 30, December 31, Maturity Rate 2021 2020 (dollars in thousands) Fixed rate, fixed term 01/04/2021 0.23 % $ — $ 29,000 Fixed rate, fixed term 04/12/2021 1.92 % — 8,000 Fixed rate, fixed term 05/03/2021 0.00 % — 4,000 Fixed rate, fixed term 06/15/2021 1.39 % — 5,000 Fixed rate, fixed term 08/16/2021 2.29 % 3,000 3,000 Fixed rate, fixed term 12/30/2021 2.29 % 2,000 2,000 Fixed rate, fixed term 03/18/2022 1.03 % 15,000 15,000 Fixed rate, fixed term 03/25/2022 0.75 % 10,000 10,000 Fixed rate, fixed term 05/16/2022 0.00 % 5,000 — Fixed rate, fixed term 11/16/2022 0.38 % 20,000 20,000 Fixed rate, putable, 2 years no call 01/12/2023 2.03 % 8,000 8,000 Fixed rate, fixed term 03/23/2023 1.26 % 10,000 10,000 Fixed rate, fixed term 03/27/2023 0.82 % 15,000 15,000 $ 88,000 $ 129,000 The terms of security agreements with the FHLB require the Bank to pledge collateral for its borrowings. The collateral consists of qualifying first mortgage loans and stock of the FHLB. At June 30, 2021 and December 31, 2020, the Bank had pledged qualifying mortgage loans of $453.8 million and $367.6 million, respectively. As of June 30, 2021 and December 31, 2020, the Bank also had a line-of-credit available with the Federal Reserve Bank of Chicago. Borrowings under this line of credit are limited by the amount of collateral pledged by the Bank, which totaled $53.6 million and $111.5 million in loans at June 30, 2021 and December 31, 2020, respectively. The borrowings available to the Company were $46.2 million and $83.3 million, as of June 30, 2021 and December 31, 2020, respectively. There were no outstanding advances included in other borrowings at June 30, 2021 and December 31, 2020. Other borrowings are borrowings as a result of sold loans that do not qualify for sale accounting. These agreements are recorded as financing transactions as the Bank maintains effective control over the transferred loans. The dollar amount of the loans underlying the sale agreements continues to be carried in the Bank’s loan portfolio, and the transfer is reported as a secured borrowing with pledge of collateral. At June 30, 2021 and December 31, 2020, the amounts of these borrowings were $0.1 million and $0.2 million, respectively. Also included in other borrowings is the financing lease for our full-service banking location in Manitowoc, Wisconsin. This branch location was owned by the Bank and was sold to a third party in March 2020. The Bank is leasing back a portion of the building for its full-service branch. Under the terms of the current lease which began on March 2, 2020, the Company is obligated to pay monthly rent of $16 thousand with an initial lease term of ten years with two renewal options of five years each. As of June 30, 2021 and December 31, 2020, the liability remaining under the financing lease was $1.2 million and $1.3 million, respectively. The Company largely funded the Small Business Administration’s Paycheck Protection Program (“PPP”) loans through the Federal Reserve’s PPP Liquidity Facility, which allowed for 12-month advances collateralized by PPP loans at an interest rate of 0.35%. The balance of these advances was $34.2 million and $47.5 million at June 30, 2021 and December 31, 2020, respectively, and were secured by PPP loans of the same amount. The following table sets forth information concerning balances and interest rates on other borrowings as of and for the periods indicated: June 30, December 31, 2021 2020 (dollars in thousands) Balance outstanding at end of period $ 35,557 $ 49,006 Average amount outstanding during the period 43,803 61,483 Maximum amount outstanding at any month-end 49,917 93,709 Weighted average interest rate during the period 0.39 % 0.42 % Weighted average interest rate at end of period 0.41 % 0.39 % |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
SUBORDINATED DEBENTURES | NOTE 9 — SUBORDINATED DEBENTURES The following is a summary of the carrying values, including unamortized issuance costs, of the Company’s subordinated debt as of the dates indicated: As of June 30, 2021 As of December 31, 2020 Balance Outstanding Interest Rate Interest Reset Date Call Date Maturity Date Balance Outstanding (dollars in thousands) Junior subordinated notes issued to County Bancorp Statutory Trust II (1)(2) $ 6,186 1.65 % 09/15/2021 N/A 09/15/2035 $ 6,186 Junior subordinated notes issued to County Bancorp Statutory Trust III (1)(3) 6,186 1.81 % 09/15/2021 N/A 06/15/2036 6,186 Junior subordinated notes issued to Fox River Valley Capital Trust I (4) 3,610 6.40 % 11/30/2023 N/A 05/30/2033 3,336 5.875% Fixed-to-Floating rate subordinated notes (5) 29,639 5.875 % 06/01/2023 06/01/2023 06/01/2028 29,545 7.00% Fixed-to-Floating rate subordinated notes (6) 21,898 7.00 % 06/30/2025 06/30/2025 06/30/2030 21,858 Total subordinated debentures $ 67,519 $ 67,111 (1) The company formed wholly owned subsidiary business trusts County Bancorp Statutory Trust II (“Trust II”) and County Bancorp Statutory Trust III (“Trust III”) (together, the “Trusts”), which are both Delaware statutory trusts. The Company owns all of the outstanding common securities of Trust II and Trust III, which qualify as Tier 1 capital for regulatory purposes. The Trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“debentures”) issued by the Company. These debentures are the Trusts’ only assets, and interest payments from these debentures finance the distributions paid on the capital securities. These debentures are unsecured, rank junior, and are subordinate in the right of payment to all senior debt of the Company. (2) The debentures issued to Trust II bear an interest rate of three-month LIBOR plus 1.53% through maturity. (3) The debentures issued to Trust III bear an interest rate of three-month LIBOR plus 1.69% through maturity. (4) In connection with the merger with Fox River Valley, the Company acquired all of the common securities of Fox River Valley’s wholly-owned subsidiary, Fox River Valley Capital Trust I, a Delaware statutory trust (the “FRV Trust I”), which qualify as Tier 1 capital for regulatory purposes. The debentures of the Company owned by FRV Trust I carry an interest rate equal to 5-year LIBOR plus 3.40%, which resets every five years. (5) The notes bear interest at a fixed rate of 5.875% per year, from and including May 30, 2018 to, but excluding, June 1, 2023. From and including June 1, 2023 to, but excluding, the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current 3-month LIBOR plus 2.88%. The notes qualify as Tier 2 capital of the Company. Debt issuance costs of $0.9 million are being amortized over the life of the notes. (6) The notes bear interest at a fixed rate of 7.00% per year, from and including June 30, 2020 to, but excluding, June 30, 2025. From and including June 30, 2025 to, but excluding, the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current three-month term secured overnight financing rate (SOFR) plus 687.5 basis points. The notes qualify as Tier 2 capital of the Company. The Company incurred $0.6 million of costs related to the issuance of the notes. These costs have been capitalized and are being amortized over the life of the notes. |
EQUITY INCENTIVE PLAN
EQUITY INCENTIVE PLAN | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
EQUITY INCENTIVE PLAN | NOTE 10 – EQUITY INCENTIVE PLAN Under the Company’s 2021 Long Term Incentive Plan (the “Plan”), the Company may grant options to purchase shares of common stock and issue restricted stock to its directors, officers, and employees. Both qualified and non-qualified stock options and restricted stock may be granted and issued, respectively, under the Plan. As of June 30, 2021, 270,455 options or shares of restricted stock remained available under the Plan. The exercise price of each option equals the market price of the Company’s stock on the date of grant and an option’s maximum term is ten years. Vesting periods range from one to five years from the date of grant. The restricted stock vesting periods range from one to five years from the date of issuance Activity in outstanding stock options for the six months ended June 30, 2021 were as follows: June 30, 2021 Number of Options Weighted-Average Exercise Price Aggregate Intrinsic Value (1) (dollars in thousands except option and per share data) Outstanding, beginning of year 249,667 $ 19.75 Granted 6,070 24.73 Exercised (24,480 ) 17.91 Forfeited/expired (9,177 ) 20.38 Outstanding, end of period 222,080 $ 20.06 $ 3,087 Options exercisable at period-end 156,703 $ 2,198 Weighted-average fair value of options granted during the period (2) $ 8.03 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2021. This amount changes based on changes in the market value of the Company’s stock. (2) The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. Activity in restricted stock awards and restricted stock units for the six months ended June 30, 2021 was as follows: June 30, 2021 Restricted Stock Awards Weighted Average Grant Price Outstanding, beginning of year 6,299 $ 24.80 Granted — — Vested (3,500 ) 22.90 Forfeited/expired (493 ) 27.15 Outstanding, end of period 2,306 $ 27.19 June 30, 2021 Restricted Stock Units Weighted Average Grant Price Outstanding, beginning of year 66,856 $ 19.38 Granted 42,437 22.87 Vested (17,849 ) 20.27 Forfeited/expired (3,332 ) 18.25 Outstanding, end of period 88,112 $ 20.92 Restricted shares vested not yet issued, end of period 9,779 For the three months ended June 30, 2021 and 2020, share-based compensation expenses, including options and restricted stock awards and units, applicable to the plan was $0.2 million and $0.3 million, respectively. For the six months ended June 30, 2021 and 2020, share-based compensation expense, including options and restricted stock awards and units, applicable to the Plan was $0.5 million. As of June 30, 2021, unrecognized share-based compensation expense related to nonvested share-based compensation instruments amounted to $1.3 million and is expected to be recognized over a weighted average period of 2.09 years. |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2021 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY MATTERS | NOTE 11 – REGULATORY MATTERS The Company (on a consolidated basis) and Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. The Basel III rules, a comprehensive capital framework for U.S. banking organizations, includes quantitative measures designed to ensure capital adequacy. The Basel III rules designed the capital conservation buffer to absorb losses during periods of economic stress and effectively increase the minimum required risk-weighted capital ratios. The Basel III rules require the Company and the Bank to maintain: (i) Tier 1 Common Equity ratio to risk weighted assets minimum of 4.50% plus a 2.50% “capital conservation buffer” (effectively resulting in minimum Tier 1 Common Equity ratio of 7.00%); (ii) Tier 1 Capital ratio to risk weighted assets minimum of 6.00% plus the capital conservation buffer (effectively resulting in a minimum Tier 1 Capital to risk-based capital ratio of 8.50%); (iii) Total Capital ratio to risk weighted assets minimum of 8.00% plus the capital conservation buffer (effectively resulting in a minimum Total Capital to risk weighted assets ratio of 10.50%); (iv) Tier 1 Leverage Capital ratio minimum of 4.00%. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action (applicable only to the Bank), the Company and Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Management believed, as of June 30, 2021 and December 31, 2020, that the Company and Bank met all capital adequacy requirements to which they were subject. As of June 30, 2021, the most recent notification from the banking regulators categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There were no conditions or events since the notification that management believes have changed the Bank’s category The Company and Bank’s actual capital amounts and ratios are presented in the following table: Actual Minimum For Capital Adequacy Purposes (including the capital conservation buffer): Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions: Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) June 30, 2021 Total Capital (to risk weighted assets): Consolidated $ 248,921 19.14 % $ 136,589 10.50 % Not applicable Bank 215,028 16.58 % 136,182 10.50 % $ 129,697 10.00 % Tier 1 Capital (to risk weighted assets): Consolidated 185,917 14.29 % $ 110,572 8.50 % Not applicable Bank 203,562 15.70 % 110,243 8.50 % 103,758 8.00 % Tier 1 Capital (to average assets): Consolidated 185,917 12.78 % 58,177 4.00 % Not applicable Bank 203,562 13.94 % 58,399 4.00 % 72,998 5.00 % Tier 1 Common Equity Ratio (to risk weighted assets): Consolidated 161,935 12.45 % $ 91,060 7.00 % Not applicable Bank 203,562 15.70 % 90,788 7.00 % 84,303 6.50 % December 31, 2020 Total Capital (to risk weighted assets): Consolidated $ 246,275 19.50 % $ 132,603 10.50 % Not applicable Bank 211,864 16.83 % 132,174 10.50 % $ 125,880 10.00 % Tier 1 Capital (to risk weighted assets): Consolidated 180,135 14.26 % 107,345 8.50 % Not applicable Bank 197,056 15.65 % 106,998 8.50 % 100,704 8.00 % Tier 1 Capital (to average assets): Consolidated 180,135 13.01 % 55,403 4.00 % Not applicable Bank 197,056 14.06 % 56,047 4.00 % 70,059 5.00 % Tier 1 Common Equity Ratio (to risk weighted assets): Consolidated 156,427 12.39 % 88,402 7.00 % Not applicable Bank 197,056 15.65 % 88,116 7.00 % 81,822 6.50 % |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 12 – FAIR VALUE MEASUREMENTS ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, and both able and willing to transact. ASC 820-10 requires the use of valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC 820-10 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1—Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2—Valuation is based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3—Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments recorded at fair value on a recurring basis: Securities Available-for-Sale Where quoted prices are available in an active market, the Company classifies the securities within Level 1 of the valuation hierarchy. Securities are defined as both long and short positions. Level 1 securities include highly liquid government bonds and exchange-traded equities. If quoted market prices are not available, the Company estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes and credit spreads. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include U.S. government and agency securities, corporate bonds and other securities. Mortgage-backed securities are included in Level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, the Company classifies those securities in Level 3. Loan Servicing Rights The Company’s loan servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed, and default rate. Due to the nature of the valuation inputs, loan servicing rights are classified in Level 3 of the valuation hierarchy. Derivative Instruments The Company's derivative instruments consist of interest rate swaps, which are accounted for as cash flow hedges. The Company's derivative positions are classified within Level 2 of the fair value hierarchy and are valued using models generally accepted in the financial services industry and that use actively quoted or observable market input values from external market data providers and/or non-binding broker-dealer quotations. The fair value of the derivatives is determined using discounted cash flow models. These models’ key assumptions include the contractual terms of the respective contract along with significant observable inputs, including interest rates, yield curves, nonperformance risk and volatility. Assets and liabilities measured at fair value on a recurring basis are summarized below: Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) June 30, 2021 Securities available for sale: U.S. government and agency securities $ — $ 12,841 $ — $ 12,841 Municipal securities — 130,004 — 130,004 Mortgage-backed securities — 145,054 — 145,054 Corporate bonds — 45,049 — 45,049 Asset-backed securities — 16,386 — 16,386 Loan servicing rights (1) — — 19,478 19,478 Total assets at fair value $ — $ 349,334 $ 19,478 $ 368,812 Derivative instruments, interest rate swaps — 1,360 — 1,360 Total liabilities at fair value $ — $ 1,360 $ — $ 1,360 December 31, 2020 Securities available for sale: U.S. government and agency securities $ — $ 14,593 $ — $ 14,593 Municipal securities — 153,654 — 153,654 Mortgage-backed securities — 135,378 — 135,378 Corporate bonds — 32,511 — 32,511 Asset-backed securities — 16,718 — 16,718 Loan servicing rights (1) — — 18,396 18,396 Total assets at fair value $ — $ 352,854 $ 18,396 $ 371,250 Derivative instruments, interest rate swaps — 1,914 — 1,914 Total liabilities at fair value $ — $ 1,914 $ — $ 1,914 (1) See Note 6 for quantitative information on the significant inputs and a rollforward of activity related to the loan servicing rights. Certain assets are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy for which a nonrecurring change in fair value has been recorded: Level 1 Inputs Level 2 Inputs Level 3 Inputs (dollars in thousands) June 30, 2021 Impaired loans $ — $ — $ 31,486 Other real estate owned — — 914 Total assets at fair value $ — $ — $ 32,400 December 31, 2020 Impaired loans $ — $ — $ 46,521 Other real estate owned — — 1,077 Total assets at fair value $ — $ — $ 47,598 The significant inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis were as follows: June 30, 2021 Valuation Techniques Unobservable Inputs Range (Average) Impaired loans Evaluation of collateral Estimation of value NM* Other real estate owned Appraisal Appraisal adjustment 6%-7% (7%) December 31, 2020 Valuation Techniques Unobservable Inputs Range (Average) Impaired loans Evaluation of collateral Estimation of value NM* Other real estate owned Appraisal Appraisal adjustment 6%-9% (7%) * Not Meaningful. The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments were as follows: June 30, December 31, 2021 2020 Carrying Amount Fair Value Carrying Amount Fair Value Input Level (dollars in thousands) Financial assets: Cash and cash equivalents $ 72,329 $ 72,329 $ 19,084 $ 19,084 1 Interest earning cash at other financial institutions 416 416 416 416 1 FHLB Stock 5,485 5,485 5,758 5,758 2 Securities available for sale 349,334 349,334 352,854 352,854 2 Loans, net of allowance for loan losses 990,424 1,002,823 981,477 991,342 3 Loans held for sale 15,805 15,805 35,976 35,976 3 Accrued interest receivable 4,511 4,511 3,240 3,240 2 Loan servicing rights 19,478 19,478 18,396 18,396 3 Financial liabilities: Deposits: Time 437,121 429,991 419,542 426,092 2 Other deposits 698,605 698,605 621,284 621,284 1 Other borrowings 35,557 35,557 49,006 49,006 3 Advances from FHLB 88,000 88,907 129,000 130,361 2 Subordinated debentures 67,519 66,435 67,111 67,111 3 Accrued interest payable 1,408 1,408 2,496 2,496 2 Derivative instruments, interest rate swaps 1,360 1,360 1,914 1,914 2 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
OTHER REAL ESTATE OWNED | NOTE 13 – OTHER REAL ESTATE OWNED Changes in other real estate owned were as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 (dollars in thousands) Balance, beginning of period $ 739 $ 3,247 $ 1,077 $ 5,521 Assets foreclosed 360 — 360 — Write-down of other real estate owned — — - (1,360 ) Net loss on sales of other real estate owned — — (17 ) (4 ) Proceeds from sale of other real estate owned (185 ) (618 ) (506 ) (1,528 ) Balance, end of period $ 914 $ 2,629 $ 914 $ 2,629 Expenses applicable to other real estate owned included in non-interest expense included the following: For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 (dollars in thousands) Net loss on sales of other real estate owned $ — $ — $ (17 ) $ (4 ) Write-down of other real estate owned — — — (1,360 ) Operating expenses, net of rental income (52 ) (50 ) (71 ) (166 ) $ (52 ) $ (50 ) $ (88 ) $ (1,530 ) |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 14 – DERIVATIVE FINANCIAL INSTRUMENTS On June 15, 2018, the Company executed an interest rate swap to manage interest rate risk on two sets of its trust preferred securities. This derivative contract involves the receipt of floating rate interest from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. This instrument is designated as a cash flow hedge as the receipt of floating rate interest from the counterparty is used to manage interest rate risk associated with three-month LIBOR advances. The change in the fair value of this hedging instrument is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The Company had two outstanding interest rate swaps designated as a cash flow hedge each with an aggregate notional value of $6.0 million at June 30, 2021 and December 31, 2020. Both interest rate swaps mature on June 15, 2028. A pre-tax unrealized gain of $0.6 million was recognized in accumulated other comprehensive income for the six months ended June 30, 2021, and a pre-tax loss of $1.3 million was recognized in accumulated other comprehensive income for the six months ended June 30, 2020. There was no ineffective portion of this hedge. The Company is exposed to credit risk in the event of nonperformance by the interest rate swaps counterparty. The Company minimizes this risk by entering into derivative contracts with only large, stable financial institutions, and the Company has not experienced, and does not expect, any losses from counterparty nonperformance on the interest rate swaps. The Company monitors counterparty risk in accordance with the provisions of FASB ASC 815. In addition, the interest rate swap agreements contain language outlining collateral-pledging requirements for each counterparty. Collateral must be posted when the market value exceeds certain threshold limits. Derivative contracts are executed with a Credit Support Annex, which is a bilateral ratings-sensitive agreement that requires collateral postings at established credit threshold levels. These agreements protect the interests of the Company and its counterparties should either party suffer a credit rating deterioration. The Company was required to pledge $2.4 million of cash as collateral to the counterparty as of June 30, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15 – SUBSEQUENT EVENTS Management evaluated subsequent events through the date the financial statements were issued. There were no other significant events or transactions occurring after June 30, 2021, but prior to August 6, 2021, that provided additional evidence about conditions that existed at June 30, 2021. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Merger Transaction | Merger Transaction On June 22, 2021, we entered into an agreement and plan of merger (the “Merger Agreement”) with Nicolet Bankshares, Inc. (“Nicolet”), a Wisconsin corporation, pursuant to which the Company will merge with and into Nicolet (the “Merger”). Following the Merger, the Bank will merge with and into Nicolet National Bank, Nicolet’s wholly-owned bank subsidiary, with Nicolet National Bank continuing as the surviving bank, with all Bank branches operating under the Nicolet National Bank brand. T |
New Accounting Pronouncements | New Accounting Pronouncements On December 27, 2020, the Consolidated Appropriations Act (“CAA”), 2021, was signed into law which extended the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which expired on December 31, 2020. The CAA included a $900.0 billion COVID-19 relief package that included an additional $284.5 billion in PPP funding. In March 2021, President Biden signed the American Rescue Plan Act of 2021, a $1.9 trillion economic stimulus package that included cash payments to individuals, supplemental unemployment insurance, and modifications and expansion of the PPP. In March 2021, President Biden also signed the PPP Extension Act of 2021, which extended the PPP application deadline to May 31, 2021. Section 4013 of the CARES Act was extended in the CAA and allows financial institutions to elect to suspend troubled debt restructuring accounting under certain circumstances when the temporary restructuring is related to the Coronavirus Disease 2019 (COVID-19) pandemic. The Company has elected to implement Section 4013, and at June 30, 2021, loan balances totaling $2.9 million were still participating in the payment deferral program and were not classified as troubled debt restructurings. In March 2020, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses current loss model calculations. At this time, the effect this ASU will have on its consolidated financial statements is still being quantified as the Company ensures data, assumptions, and methods all comply with the requirements of ASU 2016-13. In October 2019, the FASB voted to delay the effective date for the credit losses standard to January 2023 for certain entities, including SEC filers that qualify as smaller reporting companies and private companies. As a smaller reporting company, the Company is eligible for the delay and will be deferring adoption . Management will continue to progress on its implementation project plan and improve the Company’s approach throughout the deferral period. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share plus the dilutive effect of share-based compensation using the treasury stock method. For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 (dollars in thousands) Net income (loss) from continuing operations $ 6,743 $ 2,733 $ 10,671 $ (2,454 ) Less: preferred stock dividends 79 99 160 207 Income (loss) available to common shareholders for basic earnings per common share $ 6,664 $ 2,634 $ 10,511 $ (2,661 ) Weighted average number of common shares issued 7,242,997 7,198,901 7,230,746 7,190,923 Less: weighted average treasury shares 1,179,271 759,294 1,129,954 639,017 Plus: weighted average of participating restricted stock units 97,915 65,291 81,047 52,281 Weighted average number of common shares and participating securities outstanding 6,161,641 6,504,898 6,181,839 6,604,187 Effect of dilutive options 46,438 28,511 41,952 39,548 Weighted average number of common shares outstanding used to calculate diluted earnings per common share 6,208,079 6,533,409 6,223,791 6,643,735 Weighted average of anti-dilutive options 39,495 62,313 47,163 55,764 |
SECURITIES AVAILABLE-FOR-SALE (
SECURITIES AVAILABLE-FOR-SALE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Available-for-Sale of Securities | The amortized cost and fair value of securities available-for-sale as of June 30, 2021 and December 31, 2020 were as follows: Amortized Unrealized Unrealized Fair Cost Gains Losses Value (dollars in thousands) June 30, 2021 U.S. government and agency securities $ 12,948 $ — $ (107 ) $ 12,841 Municipal securities 127,089 3,741 (826 ) 130,004 Mortgage-backed securities 140,037 5,822 (805 ) 145,054 Corporate bonds 45,000 242 (193 ) 45,049 Asset-backed securities 16,215 172 (1 ) 16,386 $ 341,289 $ 9,977 $ (1,932 ) $ 349,334 December 31, 2020 U.S. government and agency securities $ 14,745 $ — $ (152 ) $ 14,593 Municipal securities 149,203 4,736 (285 ) 153,654 Mortgage-backed securities 127,804 7,872 (298 ) 135,378 Corporate bonds 32,500 21 (10 ) 32,511 Asset-backed securities 16,664 55 (1 ) 16,718 $ 340,916 $ 12,684 $ (746 ) $ 352,854 |
Schedule of Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity | The amortized cost and fair value of securities at June 30, 2021 and December 31, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (dollars in thousands) June 30, 2021 Due in one year or less $ — $ — Due from one to five years — — Due from five to ten years 67,685 67,716 Due after ten years 117,352 120,178 Asset-backed securities 16,215 16,386 Mortgage-backed securities 140,037 145,054 $ 341,289 $ 349,334 December 31, 2020 Due in one year or less $ — $ — Due from one to five years — — Due from five to ten years 55,024 55,120 Due after ten years 141,424 145,638 Asset-backed securities 16,664 16,718 Mortgage-backed securities 127,804 135,378 $ 340,916 $ 352,854 |
Schedule of Fair Value and Gross Unrealized Losses of Entity's Investment | The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temorarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2021 and December 31, 2020: Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) June 30, 2021 U.S. government and agency securities $ — $ — $ 12,841 $ (107 ) $ 12,841 $ (107 ) Municipal securities 58,747 (826 ) — — 58,747 (826 ) Mortgage-backed securities 34,778 (805 ) — — 34,778 (805 ) Corporate bonds 15,307 (193 ) — — 15,307 (193 ) Asset-backed securities 1,496 (1 ) — — 1,496 (1 ) $ 110,328 $ (1,825 ) $ 12,841 $ (107 ) $ 123,169 $ (1,932 ) December 31, 2020 U.S. government and agency securities $ 12,217 $ (134 ) $ 2,376 $ (18 ) $ 14,593 $ (152 ) Municipal securities 30,849 (285 ) — — 30,849 (285 ) Mortgage-backed securities 7,781 (298 ) — — 7,781 (298 ) Corporate bonds 7,990 (10 ) — — 7,990 (10 ) Asset-backed securities 3,817 (1 ) — — 3,817 (1 ) $ 62,654 $ (728 ) $ 2,376 $ (18 ) $ 65,030 $ (746 ) |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Components of Loans | The components of loans were as follows: June 30, December 31, 2021 2020 (dollars in thousands) Agricultural loans $ 613,513 $ 606,881 Commercial real estate loans 245,810 235,969 Commercial loans 107,469 115,087 Residential real estate loans 34,873 38,084 Installment and consumer other 225 264 Total gross loans 1,001,890 996,285 Allowance for loan losses (11,466 ) (14,808 ) Net loans $ 990,424 $ 981,477 |
Changes in Allowance for Loan Losses by Portfolio Segment | Changes in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2021 and 2020 were as follows: For the Three Months Ended June 30, 2021 Beginning Balance Provision for Loan Losses Loans Charged Off Loan Recoveries Ending Balance (dollars in thousands) Agricultural loans $ 11,527 $ (2,653 ) $ — $ — $ 8,874 Commercial real estate loans 2,858 (1,651 ) — 612 1,819 Commercial loans 691 (176 ) — 50 565 Residential real estate loans 5 203 — — 208 Installment and consumer other 1 (1 ) — — — Total $ 15,082 $ (4,278 ) $ — $ 662 $ 11,466 For the Six Months Ended June 30, 2021 Beginning Balance Provision for Loan Losses Loans Charged Off Loan Recoveries Ending Balance (dollars in thousands) Agricultural loans $ 10,859 $ (1,985 ) $ — $ — $ 8,874 Commercial real estate loans 3,139 (1,933 ) — 613 1,819 Commercial loans 805 (321 ) — 81 565 Residential real estate loans 5 203 — — 208 Installment and consumer other — — — — — Total $ 14,808 $ (4,036 ) $ — $ 694 $ 11,466 For the Three Months Ended June 30, 2020 Beginning Balance Provision for Loan Losses Loans Charged Off Loan Recoveries Ending Balance (dollars in thousands) Agricultural loans $ 12,685 $ (38 ) $ — $ 23.00 $ 12,670 Commercial real estate loans 2,577 1,281 — 1 3,859 Commercial loans 2,173 (75 ) (144 ) — 1,954 Residential real estate loans 112 (27 ) — — 85 Installment and consumer other — 1 — — 1 Total $ 17,547 $ 1,142 $ (144 ) $ 24 $ 18,569 For the Six Months Ended June 30, 2020 Beginning Balance Provision for Loan Losses Loans Charged Off Loan Recoveries Ending Balance (dollars in thousands) Agricultural loans $ 11,737 $ 910 $ — $ 23.00 $ 12,670 Commercial real estate loans 1,913 1,884 — 62 3,859 Commercial loans 1,599 498 (144 ) 1 1,954 Residential real estate loans 15 70 — — 85 Installment and consumer other 3 (2 ) — — 1 Total $ 15,267 $ 3,360 $ (144 ) $ 86 $ 18,569 |
Balances in Allowance for Loan Losses and Recorded Balance in Loans by Portfolio Segment and Based on Impairment Method | The following tables present the balances in the allowance for loan losses and the recorded balance in loans by portfolio segment and based on impairment method as of June 30, 2021 and December 31, 2020: June 30, 2021 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total (dollars in thousands) Allowance for loan losses: Agricultural loans $ 1,892 $ 6,982 $ 8,874 Commercial real estate loans 217 1,602 1,819 Commercial loans 74 491 565 Residential real estate loans — 208 208 Installment and consumer other — — — Total ending allowance for loan losses 2,183 9,283 11,466 Loans: Agricultural loans 37,377 576,136 613,513 Commercial real estate loans 2,722 243,088 245,810 Commercial loans 2,503 104,966 107,469 Residential real estate loans — 34,873 34,873 Installment and consumer other — 225 225 Total loans 42,602 959,288 1,001,890 Net loans $ 40,419 $ 950,005 $ 990,424 December 31, 2020 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total (dollars in thousands) Allowance for loan losses: Agricultural loans $ 3,504 $ 7,355 $ 10,859 Commercial real estate loans 672 2,467 3,139 Commercial loans 86 719 805 Residential real estate loans — 5 5 Installment and consumer other — — — Total ending allowance for loan losses 4,262 10,546 14,808 Loans: Agricultural loans 63,777 543,104 606,881 Commercial real estate loans 7,077 228,892 235,969 Commercial loans 2,818 112,269 115,087 Residential real estate loans 59 38,025 38,084 Installment and consumer other — 264 264 Total loans 73,731 922,554 996,285 Net loans $ 69,469 $ 912,008 $ 981,477 |
Schedule of Loans Individually Evaluated for Impairment | The following tables present loans individually evaluated for impairment by class of loans at June 30, 2021 and December 31, 2020: June 30, 2021 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated (dollars in thousands) With no related allowance: Agricultural loans $ 7,300 $ 6,904 $ — Commercial real estate loans — — — Commercial loans 2,035 2,029 — Residential real estate loans — — — $ 9,335 $ 8,933 $ — With an allowance recorded: Agricultural loans $ 32,305 $ 30,473 $ 1,892 Commercial real estate loans 2,958 2,722 217 Commercial loans 503 474 74 Residential real estate loans — — — $ 35,766 $ 33,669 $ 2,183 Total $ 45,101 $ 42,602 $ 2,183 December 31, 2020 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated (dollars in thousands) With no related allowance: Agricultural loans $ 20,245 $ 20,120 $ — Commercial real estate loans 288 288 — Commercial loans 2,504 2,481 — Residential real estate loans 61 59 — $ 23,098 $ 22,948 $ — With an allowance recorded: Agricultural loans $ 47,971 $ 43,657 $ 3,504 Commercial real estate loans 8,245 6,790 672 Commercial loans 357 336 86 Residential real estate loans — — — $ 56,573 $ 50,783 $ 4,262 Total $ 79,671 $ 73,731 $ 4,262 |
Schedule of Aging of Recorded Investment in Past Due Loans | The following table presents the aging of the recorded investment in past due loans at June 30, 2021 and December 31, 2020: 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Loans Not Past Due Total Loans (dollars in thousands) June 30, 2021 Agricultural loans $ 384 $ 348 $ 4,840 $ 5,572 $ 607,941 $ 613,513 Commercial real estate loans — — — — 245,810 245,810 Commercial loans — — 27 27 107,442 107,469 Residential real estate loans — — — — 34,873 34,873 Installment and consumer other — — — — 225 225 Total $ 384 $ 348 $ 4,867 $ 5,599 $ 996,291 $ 1,001,890 December 31, 2020 Agricultural loans $ 47 $ — $ 5,041 $ 5,088 $ 601,793 $ 606,881 Commercial real estate loans 82 — 4,283 4,365 231,604 235,969 Commercial loans — — 96 96 114,991 115,087 Residential real estate loans 4 — — 4 38,080 38,084 Installment and consumer other — — — — 264 264 Total $ 133 $ — $ 9,420 $ 9,553 $ 986,732 $ 996,285 |
Recorded Investment in Nonaccrual Loans | The following table presents the recorded investment in nonaccrual loans by class of loan: June 30, December 31, 2021 2020 (dollars in thousands) Agricultural loans $ 27,986 $ 35,067 Commercial real estate loans 1,756 6,093 Commercial loans 329 405 Residential real estate loans — 59 Total $ 30,071 $ 41,624 |
Average Recorded Investment and Interest Income Recognized on Impaired Loans by Portfolio Segment | The following tables present the average recorded investment and interest income recognized on impaired loans by portfolio segment for the three and six months ended June 30, 2021 and 2020: As of and for the Three Months Ended June 30, 2021 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized (dollars in thousands) Agricultural loans $ 39,605 $ 37,377 $ 1,892 $ 45,936 $ 103 Commercial real estate loans 2,958 2,722 217 4,898 36 Commercial loans 2,538 2,503 74 2,645 13 Residential real estate loans — — — 29 — Total $ 45,101 $ 42,602 $ 2,183 $ 53,508 $ 152 As of and for the Six Months Ended June 30, 2021 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized (dollars in thousands) Agricultural loans $ 39,605 $ 37,377 $ 1,892 $ 50,577 $ 1,029 Commercial real estate loans 2,958 2,722 217 4,900 73 Commercial loans 2,538 2,503 74 2,661 53 Residential real estate loans — — — 30 — Total $ 45,101 $ 42,602 $ 2,183 $ 58,168 $ 1,155 As of and for the Three Months Ended June 30, 2020 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized (dollars in thousands) Agricultural loans $ 62,268 $ 58,895 $ 3,826 $ 59,565 $ 1,060 Commercial real estate loans 9,420 9,351 2,471 6,496 115 Commercial loans 2,962 2,882 1,226 2,360 21 Residential real estate loans — 60 — 60 — Total $ 74,650 $ 71,188 $ 7,523 $ 68,480 $ 1,196 As of and for the Six Months Ended June 30, 2020 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized (dollars in thousands) Agricultural loans $ 62,268 $ 58,895 $ 3,826 $ 58,864 $ 2,320 Commercial real estate loans 9,420 9,351 2,471 6,517 140 Commercial loans 2,962 2,882 1,226 2,372 69 Residential real estate loans — 60 — 61 1 Total $ 74,650 $ 71,188 $ 7,523 $ 67,814 $ 2,530 |
TDRs and Related Allowance for Loan Losses by Loan Class | The following table presents the TDRs and related allowance for loan losses by loan class at June 30, 2021 and December 31, 2020: Non-Accrual Restructured and Accruing Total Allowance for Loan Losses Allocated (dollars in thousands) June 30, 2021 Agricultural loans $ 21,379 $ 4,784 $ 26,163 $ 1,595 Commercial real estate loans 1,756 966 2,722 217 Commercial loans 27 1,891 1,918 4 Total $ 23,162 $ 7,641 $ 30,803 $ 1,816 December 31, 2020 Agricultural loans $ 27,223 $ 15,690 $ 42,913 $ 3,494 Commercial real estate loans 1,810 984 2,794 315 Commercial loans 68 1,918 1,986 4 Total $ 29,101 $ 18,592 $ 47,693 $ 3,813 For the Three Months Ended June 30, 2021 June 30, 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Troubled debt restructurings: Agricultural loans — $ — 6 $ 2,640 Total — $ — 6 $ 2,640 For the Six Months Ended June 30, 2021 June 30, 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Troubled debt restructurings: Agricultural loans 5 $ 1,586 8 $ 2,872 Total 5 $ 1,586 8 $ 2,872 |
Summary of Troubled Debt Restructurings Grouped by Type of Concession | The following table provides the troubled debt restructurings for the three and six months ended June 30, 2021 and 2020 grouped by type of concession: For the Three Months Ended June 30, 2021 June 30, 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Agricultural loans Payment concessions — $ — 1 $ 231 Term concessions — — — 435 Extension of interest-only payments — — 2 75 Capitalized interest — — 1 153 Combination of payment concessions and interest rate concessions — — 2 1,746 Total — $ — 6 $ 2,640 For the Six Months Ended June 30, 2021 June 30, 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Agricultural loans Payment concessions — $ — 1 $ 231 Term concessions — — 1 484 Extension of interest-only payments 5 1,586 2 75 Capitalized interest — — 1 153 Combination of extension of term and interest rate concessions — — 3 1,929 Total 5 $ 1,586 8 $ 2,872 |
Risk Category of Loans by Class of Loans | Based on the most recent analysis performed by management, the risk category of loans by class of loans was as follows as of June 30, 2021 and December 31, 2020: As of June 30, 2021 Sound/ Acceptable/ Satisfactory/ Low Satisfactory Watch Special Mention Substandard Performing Substandard Impaired Total Loans (dollars in thousands) Agricultural loans $ 467,743 $ 94,254 $ — $ 23,232 $ 28,284 $ 613,513 Commercial real estate loans 220,925 20,864 — 2,265 1,756 245,810 Commercial loans 98,408 5,920 566 2,246 329 107,469 Residential real estate loans 34,669 204 — — — 34,873 Installment and consumer other 225 — — — — 225 Total $ 821,970 $ 121,242 $ 566 $ 27,743 $ 30,369 $ 1,001,890 As of December 31, 2020 Sound/ Acceptable/ Satisfactory/ Low Satisfactory Watch Special Mention Substandard Performing Substandard Impaired Total Loans (dollars in thousands) Agricultural loans $ 374,595 $ 155,546 $ 1,854 $ 34,452 $ 40,434 $ 606,881 Commercial real estate loans 200,208 26,266 — 3,402 6,093 235,969 Commercial loans 103,488 8,022 647 2,566 364 115,087 Residential real estate loans 37,758 267 — — 59 38,084 Installment and consumer other 264 — — — — 264 Total $ 716,313 $ 190,101 $ 2,501 $ 40,420 $ 46,950 $ 996,285 |
LOAN SERVICING RIGHTS (Tables)
LOAN SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Transfers And Servicing [Abstract] | |
Summary of Servicing Rights Capitalized along with the Aggregate Activity in Related Valuation Allowances | The following tables summarize servicing rights capitalized, along with the aggregate activity in related valuation allowances for periods indicated. For the Three Months Ended June 30, 2021 2020 (dollars in thousands) Balance, beginning of period $ 18,864 $ 16,211 Additions, net 1,775 1,041 Fair value changes: Decay due to increases in principal paydowns or runoff (859 ) (727 ) Due to changes in valuation inputs or assumptions (302 ) (39 ) Balance, end of period $ 19,478 $ 16,486 For the Six Months Ended June 30, 2021 2020 (dollars in thousands) Balance, beginning of period $ 18,396 $ 15,921 Additions, net 3,362 1,546 Fair value changes: Decay due to increases in principal paydowns or runoff (1,130 ) (992 ) Due to changes in valuation inputs or assumptions (1,150 ) 11 Balance, end of period $ 19,478 $ 16,486 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
Summary of Deposits | Deposits are summarized as follows at June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 (dollars in thousands) Demand deposits $ 158,880 $ 163,202 NOW and interest checking 136,180 96,624 Savings 9,059 7,367 Money market accounts 394,486 344,250 Certificates of deposit 259,386 304,580 National time deposits 18,648 44,347 Brokered deposits 159,087 80,456 Total deposits $ 1,135,726 $ 1,040,826 |
ADVANCES FROM FHLB AND OTHER _2
ADVANCES FROM FHLB AND OTHER BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Advances Outstanding from FHLB | The Bank had advances outstanding from the FHLB in the amount of $88.0 million and $129.0 million on June 30, 2021 and December 31, 2020, respectively. These advances, rates, and maturities were as follows: June 30, December 31, Maturity Rate 2021 2020 (dollars in thousands) Fixed rate, fixed term 01/04/2021 0.23 % $ — $ 29,000 Fixed rate, fixed term 04/12/2021 1.92 % — 8,000 Fixed rate, fixed term 05/03/2021 0.00 % — 4,000 Fixed rate, fixed term 06/15/2021 1.39 % — 5,000 Fixed rate, fixed term 08/16/2021 2.29 % 3,000 3,000 Fixed rate, fixed term 12/30/2021 2.29 % 2,000 2,000 Fixed rate, fixed term 03/18/2022 1.03 % 15,000 15,000 Fixed rate, fixed term 03/25/2022 0.75 % 10,000 10,000 Fixed rate, fixed term 05/16/2022 0.00 % 5,000 — Fixed rate, fixed term 11/16/2022 0.38 % 20,000 20,000 Fixed rate, putable, 2 years no call 01/12/2023 2.03 % 8,000 8,000 Fixed rate, fixed term 03/23/2023 1.26 % 10,000 10,000 Fixed rate, fixed term 03/27/2023 0.82 % 15,000 15,000 $ 88,000 $ 129,000 |
Balances and Interest Rates on Other Borrowings | The following table sets forth information concerning balances and interest rates on other borrowings as of and for the periods indicated: June 30, December 31, 2021 2020 (dollars in thousands) Balance outstanding at end of period $ 35,557 $ 49,006 Average amount outstanding during the period 43,803 61,483 Maximum amount outstanding at any month-end 49,917 93,709 Weighted average interest rate during the period 0.39 % 0.42 % Weighted average interest rate at end of period 0.41 % 0.39 % |
SUBORDINATED DEBENTURES (Tables
SUBORDINATED DEBENTURES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Carrying Values, Including Unamortized Issuance Costs of Subordinated Debt | The following is a summary of the carrying values, including unamortized issuance costs, of the Company’s subordinated debt as of the dates indicated: As of June 30, 2021 As of December 31, 2020 Balance Outstanding Interest Rate Interest Reset Date Call Date Maturity Date Balance Outstanding (dollars in thousands) Junior subordinated notes issued to County Bancorp Statutory Trust II (1)(2) $ 6,186 1.65 % 09/15/2021 N/A 09/15/2035 $ 6,186 Junior subordinated notes issued to County Bancorp Statutory Trust III (1)(3) 6,186 1.81 % 09/15/2021 N/A 06/15/2036 6,186 Junior subordinated notes issued to Fox River Valley Capital Trust I (4) 3,610 6.40 % 11/30/2023 N/A 05/30/2033 3,336 5.875% Fixed-to-Floating rate subordinated notes (5) 29,639 5.875 % 06/01/2023 06/01/2023 06/01/2028 29,545 7.00% Fixed-to-Floating rate subordinated notes (6) 21,898 7.00 % 06/30/2025 06/30/2025 06/30/2030 21,858 Total subordinated debentures $ 67,519 $ 67,111 (1) The company formed wholly owned subsidiary business trusts County Bancorp Statutory Trust II (“Trust II”) and County Bancorp Statutory Trust III (“Trust III”) (together, the “Trusts”), which are both Delaware statutory trusts. The Company owns all of the outstanding common securities of Trust II and Trust III, which qualify as Tier 1 capital for regulatory purposes. The Trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“debentures”) issued by the Company. These debentures are the Trusts’ only assets, and interest payments from these debentures finance the distributions paid on the capital securities. These debentures are unsecured, rank junior, and are subordinate in the right of payment to all senior debt of the Company. (2) The debentures issued to Trust II bear an interest rate of three-month LIBOR plus 1.53% through maturity. (3) The debentures issued to Trust III bear an interest rate of three-month LIBOR plus 1.69% through maturity. (4) In connection with the merger with Fox River Valley, the Company acquired all of the common securities of Fox River Valley’s wholly-owned subsidiary, Fox River Valley Capital Trust I, a Delaware statutory trust (the “FRV Trust I”), which qualify as Tier 1 capital for regulatory purposes. The debentures of the Company owned by FRV Trust I carry an interest rate equal to 5-year LIBOR plus 3.40%, which resets every five years. (5) The notes bear interest at a fixed rate of 5.875% per year, from and including May 30, 2018 to, but excluding, June 1, 2023. From and including June 1, 2023 to, but excluding, the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current 3-month LIBOR plus 2.88%. The notes qualify as Tier 2 capital of the Company. Debt issuance costs of $0.9 million are being amortized over the life of the notes. (6) The notes bear interest at a fixed rate of 7.00% per year, from and including June 30, 2020 to, but excluding, June 30, 2025. From and including June 30, 2025 to, but excluding, the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current three-month term secured overnight financing rate (SOFR) plus 687.5 basis points. The notes qualify as Tier 2 capital of the Company. The Company incurred $0.6 million of costs related to the issuance of the notes. These costs have been capitalized and are being amortized over the life of the notes. |
EQUITY INCENTIVE PLAN (Tables)
EQUITY INCENTIVE PLAN (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Activity in Outstanding Stock Options | Activity in outstanding stock options for the six months ended June 30, 2021 were as follows: June 30, 2021 Number of Options Weighted-Average Exercise Price Aggregate Intrinsic Value (1) (dollars in thousands except option and per share data) Outstanding, beginning of year 249,667 $ 19.75 Granted 6,070 24.73 Exercised (24,480 ) 17.91 Forfeited/expired (9,177 ) 20.38 Outstanding, end of period 222,080 $ 20.06 $ 3,087 Options exercisable at period-end 156,703 $ 2,198 Weighted-average fair value of options granted during the period (2) $ 8.03 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2021. This amount changes based on changes in the market value of the Company’s stock. (2) The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. |
Activity in Restricted Stock Awards and Restricted Stock Units | Activity in restricted stock awards and restricted stock units for the six months ended June 30, 2021 was as follows: June 30, 2021 Restricted Stock Awards Weighted Average Grant Price Outstanding, beginning of year 6,299 $ 24.80 Granted — — Vested (3,500 ) 22.90 Forfeited/expired (493 ) 27.15 Outstanding, end of period 2,306 $ 27.19 June 30, 2021 Restricted Stock Units Weighted Average Grant Price Outstanding, beginning of year 66,856 $ 19.38 Granted 42,437 22.87 Vested (17,849 ) 20.27 Forfeited/expired (3,332 ) 18.25 Outstanding, end of period 88,112 $ 20.92 Restricted shares vested not yet issued, end of period 9,779 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Regulatory Capital Requirements [Abstract] | |
Summary of Actual Capital Amounts and Ratios of Company and Bank's | The Company and Bank’s actual capital amounts and ratios are presented in the following table: Actual Minimum For Capital Adequacy Purposes (including the capital conservation buffer): Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions: Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) June 30, 2021 Total Capital (to risk weighted assets): Consolidated $ 248,921 19.14 % $ 136,589 10.50 % Not applicable Bank 215,028 16.58 % 136,182 10.50 % $ 129,697 10.00 % Tier 1 Capital (to risk weighted assets): Consolidated 185,917 14.29 % $ 110,572 8.50 % Not applicable Bank 203,562 15.70 % 110,243 8.50 % 103,758 8.00 % Tier 1 Capital (to average assets): Consolidated 185,917 12.78 % 58,177 4.00 % Not applicable Bank 203,562 13.94 % 58,399 4.00 % 72,998 5.00 % Tier 1 Common Equity Ratio (to risk weighted assets): Consolidated 161,935 12.45 % $ 91,060 7.00 % Not applicable Bank 203,562 15.70 % 90,788 7.00 % 84,303 6.50 % December 31, 2020 Total Capital (to risk weighted assets): Consolidated $ 246,275 19.50 % $ 132,603 10.50 % Not applicable Bank 211,864 16.83 % 132,174 10.50 % $ 125,880 10.00 % Tier 1 Capital (to risk weighted assets): Consolidated 180,135 14.26 % 107,345 8.50 % Not applicable Bank 197,056 15.65 % 106,998 8.50 % 100,704 8.00 % Tier 1 Capital (to average assets): Consolidated 180,135 13.01 % 55,403 4.00 % Not applicable Bank 197,056 14.06 % 56,047 4.00 % 70,059 5.00 % Tier 1 Common Equity Ratio (to risk weighted assets): Consolidated 156,427 12.39 % 88,402 7.00 % Not applicable Bank 197,056 15.65 % 88,116 7.00 % 81,822 6.50 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) June 30, 2021 Securities available for sale: U.S. government and agency securities $ — $ 12,841 $ — $ 12,841 Municipal securities — 130,004 — 130,004 Mortgage-backed securities — 145,054 — 145,054 Corporate bonds — 45,049 — 45,049 Asset-backed securities — 16,386 — 16,386 Loan servicing rights (1) — — 19,478 19,478 Total assets at fair value $ — $ 349,334 $ 19,478 $ 368,812 Derivative instruments, interest rate swaps — 1,360 — 1,360 Total liabilities at fair value $ — $ 1,360 $ — $ 1,360 December 31, 2020 Securities available for sale: U.S. government and agency securities $ — $ 14,593 $ — $ 14,593 Municipal securities — 153,654 — 153,654 Mortgage-backed securities — 135,378 — 135,378 Corporate bonds — 32,511 — 32,511 Asset-backed securities — 16,718 — 16,718 Loan servicing rights (1) — — 18,396 18,396 Total assets at fair value $ — $ 352,854 $ 18,396 $ 371,250 Derivative instruments, interest rate swaps — 1,914 — 1,914 Total liabilities at fair value $ — $ 1,914 $ — $ 1,914 (1) See Note 6 for quantitative information on the significant inputs and a rollforward of activity related to the loan servicing rights. |
Financial Instruments Carried on Consolidated Balance Sheet for Which Nonrecurring Change in Fair Value Has Been Recorded | The following table presents the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy for which a nonrecurring change in fair value has been recorded: Level 1 Inputs Level 2 Inputs Level 3 Inputs (dollars in thousands) June 30, 2021 Impaired loans $ — $ — $ 31,486 Other real estate owned — — 914 Total assets at fair value $ — $ — $ 32,400 December 31, 2020 Impaired loans $ — $ — $ 46,521 Other real estate owned — — 1,077 Total assets at fair value $ — $ — $ 47,598 |
Significant Inputs Used in Fair Value Measurements for Level 3 Assets Measured on Nonrecurring Basis | The significant inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis were as follows: June 30, 2021 Valuation Techniques Unobservable Inputs Range (Average) Impaired loans Evaluation of collateral Estimation of value NM* Other real estate owned Appraisal Appraisal adjustment 6%-7% (7%) December 31, 2020 Valuation Techniques Unobservable Inputs Range (Average) Impaired loans Evaluation of collateral Estimation of value NM* Other real estate owned Appraisal Appraisal adjustment 6%-9% (7%) Not Meaningful. |
Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments were as follows: June 30, December 31, 2021 2020 Carrying Amount Fair Value Carrying Amount Fair Value Input Level (dollars in thousands) Financial assets: Cash and cash equivalents $ 72,329 $ 72,329 $ 19,084 $ 19,084 1 Interest earning cash at other financial institutions 416 416 416 416 1 FHLB Stock 5,485 5,485 5,758 5,758 2 Securities available for sale 349,334 349,334 352,854 352,854 2 Loans, net of allowance for loan losses 990,424 1,002,823 981,477 991,342 3 Loans held for sale 15,805 15,805 35,976 35,976 3 Accrued interest receivable 4,511 4,511 3,240 3,240 2 Loan servicing rights 19,478 19,478 18,396 18,396 3 Financial liabilities: Deposits: Time 437,121 429,991 419,542 426,092 2 Other deposits 698,605 698,605 621,284 621,284 1 Other borrowings 35,557 35,557 49,006 49,006 3 Advances from FHLB 88,000 88,907 129,000 130,361 2 Subordinated debentures 67,519 66,435 67,111 67,111 3 Accrued interest payable 1,408 1,408 2,496 2,496 2 Derivative instruments, interest rate swaps 1,360 1,360 1,914 1,914 2 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
Schedule of Other Real Estate Owned | Changes in other real estate owned were as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 (dollars in thousands) Balance, beginning of period $ 739 $ 3,247 $ 1,077 $ 5,521 Assets foreclosed 360 — 360 — Write-down of other real estate owned — — - (1,360 ) Net loss on sales of other real estate owned — — (17 ) (4 ) Proceeds from sale of other real estate owned (185 ) (618 ) (506 ) (1,528 ) Balance, end of period $ 914 $ 2,629 $ 914 $ 2,629 |
Expenses Applicable to Other Real Estate Owned Included in Non-Interest Expense | Expenses applicable to other real estate owned included in non-interest expense included the following: For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 (dollars in thousands) Net loss on sales of other real estate owned $ — $ — $ (17 ) $ (4 ) Write-down of other real estate owned — — — (1,360 ) Operating expenses, net of rental income (52 ) (50 ) (71 ) (166 ) $ (52 ) $ (50 ) $ (88 ) $ (1,530 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions | Jun. 22, 2021 | Dec. 27, 2020 | Mar. 31, 2021 |
CARES Act | |||
Basis Of Presentation [Line Items] | |||
Consolidated appropriations act COVID relief package amount | $ 900 | ||
Additional paycheck protection program funding amount | $ 284.5 | ||
CARES Act | Payment Deferral Program | |||
Basis Of Presentation [Line Items] | |||
Recorded Investment | $ 2.9 | ||
Nicolet Bankshares, Inc. | |||
Basis Of Presentation [Line Items] | |||
Merger agreement date | Jun. 22, 2021 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - Nicolet Bankshares, Inc. | Jun. 22, 2021$ / sharesshares |
Business Acquisition [Line Items] | |
Merger agreement date | Jun. 22, 2021 |
Cash | |
Business Acquisition [Line Items] | |
Share price for each share holder | $ / shares | $ 37.18 |
Percentage of total consideration | 20.00% |
Common Stock | |
Business Acquisition [Line Items] | |
Shares issued for each share holder | shares | 0.48 |
Percentage of total consideration | 80.00% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Earnings Per Share [Abstract] | |||||||
Net income (loss) from continuing operations | $ 6,743 | $ 3,928 | $ 2,733 | [1] | $ (5,188) | $ 10,671 | $ (2,454) |
Less: preferred stock dividends | 79 | 99 | [1] | 160 | 207 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 6,664 | $ 2,634 | [1] | $ 10,511 | $ (2,661) | ||
Weighted average number of common shares issued | 7,242,997 | 7,198,901 | 7,230,746 | 7,190,923 | |||
Less: weighted average treasury shares | 1,179,271 | 759,294 | 1,129,954 | 639,017 | |||
Plus: weighted average of participating restricted stock units | 97,915 | 65,291 | 81,047 | 52,281 | |||
Weighted average number of common shares and participating securities outstanding | 6,161,641 | 6,504,898 | 6,181,839 | 6,604,187 | |||
Effect of dilutive options | 46,438 | 28,511 | 41,952 | 39,548 | |||
Weighted average number of common shares outstanding used to calculate diluted earnings per common share | 6,208,079 | 6,533,409 | 6,223,791 | 6,643,735 | |||
Weighted average of anti-dilutive options | 39,495 | 62,313 | 47,163 | 55,764 | |||
[1] | Amounts reclassed to current classifications from original presentation |
Securities Available-for-Sale -
Securities Available-for-Sale - Schedule of Amortized Cost and Fair Value of Available-for-Sale of Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 341,289 | $ 340,916 |
Unrealized Gains | 9,977 | 12,684 |
Unrealized Losses | (1,932) | (746) |
Fair Value | 349,334 | 352,854 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 45,000 | 32,500 |
Unrealized Gains | 242 | 21 |
Unrealized Losses | (193) | (10) |
Fair Value | 45,049 | 32,511 |
U.S. Government and Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 12,948 | 14,745 |
Unrealized Losses | (107) | (152) |
Fair Value | 12,841 | 14,593 |
Municipal Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 127,089 | 149,203 |
Unrealized Gains | 3,741 | 4,736 |
Unrealized Losses | (826) | (285) |
Fair Value | 130,004 | 153,654 |
Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 140,037 | 127,804 |
Unrealized Gains | 5,822 | 7,872 |
Unrealized Losses | (805) | (298) |
Fair Value | 145,054 | 135,378 |
Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 16,215 | 16,664 |
Unrealized Gains | 172 | 55 |
Unrealized Losses | (1) | (1) |
Fair Value | $ 16,386 | $ 16,718 |
Securities Available-for-Sale_2
Securities Available-for-Sale - Schedule of Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available For Sale Securities [Line Items] | ||
Due from five to ten years, Amortized Cost | $ 67,685 | $ 55,024 |
Due after ten years, Amortized Cost | 117,352 | 141,424 |
Amortized Cost | 341,289 | 340,916 |
Due from five to ten years, Fair Value | 67,716 | 55,120 |
Due after ten years, Fair Value | 120,178 | 145,638 |
Fair Value | 349,334 | 352,854 |
Asset-backed Securities | ||
Available For Sale Securities [Line Items] | ||
Due after ten years, Amortized Cost | 16,664 | |
Debt securities, Amortized Cost | 16,215 | |
Amortized Cost | 16,215 | 16,664 |
Debt securities, Fair Value | 16,386 | 16,718 |
Fair Value | 16,386 | 16,718 |
Mortgage-backed Securities | ||
Available For Sale Securities [Line Items] | ||
Debt securities, Amortized Cost | 140,037 | 127,804 |
Amortized Cost | 140,037 | 127,804 |
Debt securities, Fair Value | 145,054 | 135,378 |
Fair Value | $ 145,054 | $ 135,378 |
Securities Available-for-Sale_3
Securities Available-for-Sale - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | |||||
Proceeds from sales of securities available for sale | $ 33,900 | $ 27,800 | $ 33,852 | $ 27,790 | |
Gross realized loss on available for sale securities | 1,500 | 1,500 | |||
Gross realized gain on available for sale securities | $ 600 | $ 600 | |||
FHLB Stock, at cost | 5,485 | 5,485 | $ 5,758 | ||
Reported Value Measurement | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
FHLB Stock, at cost | 5,500 | 5,500 | 5,800 | ||
Reported Value Measurement | Municipal Customer Deposits | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Available-for-sale Securities Pledged as Collateral | $ 32,500 | $ 32,500 | $ 23,000 |
Securities Available-for-Sale_4
Securities Available-for-Sale - Schedule of Fair Value and Gross Unrealized Losses of Entity's Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | $ 110,328 | $ 62,654 |
Investments with unrealized losses less than 12 months, unrealized losses | (1,825) | (728) |
Investments with unrealized losses 12 months or greater, fair value | 12,841 | 2,376 |
Investments with unrealized losses 12 months or greater, unrealized losses | (107) | (18) |
Investments with unrealized losses, fair value | 123,169 | 65,030 |
Investments with unrealized losses, unrealized losses | (1,932) | (746) |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | 15,307 | 7,990 |
Investments with unrealized losses less than 12 months, unrealized losses | (193) | (10) |
Investments with unrealized losses, fair value | 15,307 | 7,990 |
Investments with unrealized losses, unrealized losses | (193) | (10) |
U.S. Government and Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | 12,217 | |
Investments with unrealized losses less than 12 months, unrealized losses | (134) | |
Investments with unrealized losses 12 months or greater, fair value | 12,841 | 2,376 |
Investments with unrealized losses 12 months or greater, unrealized losses | (107) | (18) |
Investments with unrealized losses, fair value | 12,841 | 14,593 |
Investments with unrealized losses, unrealized losses | (107) | (152) |
Municipal Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | 58,747 | 30,849 |
Investments with unrealized losses less than 12 months, unrealized losses | (826) | (285) |
Investments with unrealized losses, fair value | 58,747 | 30,849 |
Investments with unrealized losses, unrealized losses | (826) | (285) |
Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | 34,778 | 7,781 |
Investments with unrealized losses less than 12 months, unrealized losses | (805) | (298) |
Investments with unrealized losses, fair value | 34,778 | 7,781 |
Investments with unrealized losses, unrealized losses | (805) | (298) |
Asset-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | 1,496 | 3,817 |
Investments with unrealized losses less than 12 months, unrealized losses | (1) | (1) |
Investments with unrealized losses, fair value | 1,496 | 3,817 |
Investments with unrealized losses, unrealized losses | $ (1) | $ (1) |
Loans - Components of Loans (De
Loans - Components of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total gross loans | $ 1,001,890 | $ 996,285 |
Allowance for loan losses | (11,466) | (14,808) |
Net loans | 990,424 | 981,477 |
Agricultural Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total gross loans | 613,513 | 606,881 |
Commercial Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total gross loans | 245,810 | 235,969 |
Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total gross loans | 107,469 | 115,087 |
Residential Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total gross loans | 34,873 | 38,084 |
Installment and Consumer Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total gross loans | $ 225 | $ 264 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Net unamortized deferred fees and costs | $ 300,000 | $ 300,000 | $ 300,000 | ||
Impaired loans on nonaccrual and restructured loans that are past due and still accruing | 90 days | ||||
Interest income recognized for nonaccrual loans | 200,000 | $ 2,100,000 | $ 200,000 | $ 2,800,000 | |
Specific reserve to customers whose loan terms have been modified in TDR | 1,800,000 | 1,800,000 | 3,800,000 | ||
Additional lending commitments to customers with outstanding loans that are classified as TDRs | 0 | 0 | 0 | ||
Minimum exposure for annual internal credit review | $ 300,000 | $ 300,000 | |||
Financing receivable on nonaccrual loans past due period description | prior to 90-days past due | ||||
CARES Act | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance of loans modified | $ 2,900,000 | $ 16,800,000 |
Loans - Changes in Allowance fo
Loans - Changes in Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning Balance | $ 15,082,000 | $ 17,547,000 | $ 14,808,000 | $ 15,267,000 | |
Provision for (recovery of) loan losses | (4,278,000) | 1,142,000 | [1] | (4,036,000) | 3,360,000 |
Loans Charged Off | (144,000) | (144,000) | |||
Loan Recoveries | 662,000 | 24,000 | 694,000 | 86,000 | |
Ending Balance | 11,466,000 | 18,569,000 | 11,466,000 | 18,569,000 | |
Agricultural Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning Balance | 11,527,000 | 12,685,000 | 10,859,000 | 11,737,000 | |
Provision for (recovery of) loan losses | (2,653,000) | (38,000) | (1,985,000) | 910,000 | |
Loan Recoveries | 23,000 | 23,000 | |||
Ending Balance | 8,874,000 | 12,670,000 | 8,874,000 | 12,670,000 | |
Commercial Real Estate Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning Balance | 2,858,000 | 2,577,000 | 3,139,000 | 1,913,000 | |
Provision for (recovery of) loan losses | (1,651,000) | 1,281,000 | (1,933,000) | 1,884,000 | |
Loan Recoveries | 612,000 | 1,000 | 613,000 | 62,000 | |
Ending Balance | 1,819,000 | 3,859,000 | 1,819,000 | 3,859,000 | |
Commercial Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning Balance | 691,000 | 2,173,000 | 805,000 | 1,599,000 | |
Provision for (recovery of) loan losses | (176,000) | (75,000) | (321,000) | 498,000 | |
Loans Charged Off | (144,000) | (144,000) | |||
Loan Recoveries | 50,000 | 81,000 | 1,000 | ||
Ending Balance | 565,000 | 1,954,000 | 565,000 | 1,954,000 | |
Residential Real Estate Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning Balance | 5,000 | 112,000 | 5,000 | 15,000 | |
Provision for (recovery of) loan losses | 203,000 | (27,000) | 203,000 | 70,000 | |
Ending Balance | 208,000 | 85,000 | $ 208,000 | 85,000 | |
Installment and Consumer Other | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Beginning Balance | 1,000 | 3,000 | |||
Provision for (recovery of) loan losses | $ (1,000) | 1,000 | (2,000) | ||
Ending Balance | $ 1,000 | $ 1,000 | |||
[1] | Amounts reclassed to current classifications from original presentation |
Loans - Balances in Allowance f
Loans - Balances in Allowance for Loan Losses and Recorded Balance in Loans by Portfolio Segment and Based on Impairment Method (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 40,419 | $ 69,469 |
Loans collectively evaluated for impairment | 950,005 | 912,008 |
Loans, net | 990,424 | 981,477 |
Allowance for loan losses: | ||
Allowance for loan losses individually evaluated for impairment | 2,183 | 4,262 |
Allowance for loan losses collectively evaluated for impairment | 9,283 | 10,546 |
Total | 11,466 | 14,808 |
Loans individually evaluated for impairment | 42,602 | 73,731 |
Loans collectively evaluated for impairment | 959,288 | 922,554 |
Total Loans | 1,001,890 | 996,285 |
Agricultural Loans | ||
Allowance for loan losses: | ||
Allowance for loan losses individually evaluated for impairment | 1,892 | 3,504 |
Allowance for loan losses collectively evaluated for impairment | 6,982 | 7,355 |
Total | 8,874 | 10,859 |
Loans individually evaluated for impairment | 37,377 | 63,777 |
Loans collectively evaluated for impairment | 576,136 | 543,104 |
Total Loans | 613,513 | 606,881 |
Commercial Real Estate Loans | ||
Allowance for loan losses: | ||
Allowance for loan losses individually evaluated for impairment | 217 | 672 |
Allowance for loan losses collectively evaluated for impairment | 1,602 | 2,467 |
Total | 1,819 | 3,139 |
Loans individually evaluated for impairment | 2,722 | 7,077 |
Loans collectively evaluated for impairment | 243,088 | 228,892 |
Total Loans | 245,810 | 235,969 |
Commercial Loans | ||
Allowance for loan losses: | ||
Allowance for loan losses individually evaluated for impairment | 74 | 86 |
Allowance for loan losses collectively evaluated for impairment | 491 | 719 |
Total | 565 | 805 |
Loans individually evaluated for impairment | 2,503 | 2,818 |
Loans collectively evaluated for impairment | 104,966 | 112,269 |
Total Loans | 107,469 | 115,087 |
Residential Real Estate Loans | ||
Allowance for loan losses: | ||
Allowance for loan losses collectively evaluated for impairment | 208 | 5 |
Total | 208 | 5 |
Loans individually evaluated for impairment | 59 | |
Loans collectively evaluated for impairment | 34,873 | 38,025 |
Total Loans | 34,873 | 38,084 |
Installment and Consumer Other | ||
Allowance for loan losses: | ||
Loans collectively evaluated for impairment | 225 | 264 |
Total Loans | $ 225 | $ 264 |
Loans - Impairment by Class of
Loans - Impairment by Class of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Loans Receivable Evaluated For Impairment [Line Items] | |||
Impaired Loans with No Related Allowance Recorded, unpaid principal balance | $ 9,335 | $ 23,098 | |
Impaired Loans with No Related Allowance Recorded, recorded investment | 8,933 | 22,948 | |
Impaired Loans with No Related Allowance Recorded, allowance for loan losses allocated | 0 | 0 | |
Impaired Loans with an Allowance Recorded, unpaid principal balance | 35,766 | 56,573 | |
Impaired Loans with an Allowance Recorded, recorded investment | 33,669 | 50,783 | |
Impaired Loans with an Allowance Recorded, allowance for loan losses allocated | 2,183 | 4,262 | |
Unpaid principal balance | 45,101 | 79,671 | $ 74,650 |
Recorded investment | 42,602 | 73,731 | 71,188 |
Allowance for loan losses allocated | 2,183 | 4,262 | $ 7,523 |
Agricultural Loans | |||
Loans Receivable Evaluated For Impairment [Line Items] | |||
Impaired Loans with No Related Allowance Recorded, unpaid principal balance | 7,300 | 20,245 | |
Impaired Loans with No Related Allowance Recorded, recorded investment | 6,904 | 20,120 | |
Impaired Loans with No Related Allowance Recorded, allowance for loan losses allocated | 0 | 0 | |
Impaired Loans with an Allowance Recorded, unpaid principal balance | 32,305 | 47,971 | |
Impaired Loans with an Allowance Recorded, recorded investment | 30,473 | 43,657 | |
Impaired Loans with an Allowance Recorded, allowance for loan losses allocated | 1,892 | 3,504 | |
Commercial Real Estate Loans | |||
Loans Receivable Evaluated For Impairment [Line Items] | |||
Impaired Loans with No Related Allowance Recorded, unpaid principal balance | 0 | 288 | |
Impaired Loans with No Related Allowance Recorded, recorded investment | 0 | 288 | |
Impaired Loans with No Related Allowance Recorded, allowance for loan losses allocated | 0 | 0 | |
Impaired Loans with an Allowance Recorded, unpaid principal balance | 2,958 | 8,245 | |
Impaired Loans with an Allowance Recorded, recorded investment | 2,722 | 6,790 | |
Impaired Loans with an Allowance Recorded, allowance for loan losses allocated | 217 | 672 | |
Commercial Loans | |||
Loans Receivable Evaluated For Impairment [Line Items] | |||
Impaired Loans with No Related Allowance Recorded, unpaid principal balance | 2,035 | 2,504 | |
Impaired Loans with No Related Allowance Recorded, recorded investment | 2,029 | 2,481 | |
Impaired Loans with No Related Allowance Recorded, allowance for loan losses allocated | 0 | 0 | |
Impaired Loans with an Allowance Recorded, unpaid principal balance | 503 | 357 | |
Impaired Loans with an Allowance Recorded, recorded investment | 474 | 336 | |
Impaired Loans with an Allowance Recorded, allowance for loan losses allocated | 74 | 86 | |
Residential Real Estate Loans | |||
Loans Receivable Evaluated For Impairment [Line Items] | |||
Impaired Loans with No Related Allowance Recorded, unpaid principal balance | 0 | 61 | |
Impaired Loans with No Related Allowance Recorded, recorded investment | 0 | 59 | |
Impaired Loans with No Related Allowance Recorded, allowance for loan losses allocated | 0 | 0 | |
Impaired Loans with an Allowance Recorded, unpaid principal balance | 0 | 0 | |
Impaired Loans with an Allowance Recorded, recorded investment | 0 | 0 | |
Impaired Loans with an Allowance Recorded, allowance for loan losses allocated | $ 0 | $ 0 |
Loans - Schedule of Aging of Re
Loans - Schedule of Aging of Recorded Investment in Past Due Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | $ 5,599 | $ 9,553 |
Loans Not Past Due | 996,291 | 986,732 |
Total Loans | 1,001,890 | 996,285 |
Financing Receivables 30 To 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 384 | 133 |
Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 348 | |
Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 4,867 | 9,420 |
Agricultural Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 5,572 | 5,088 |
Loans Not Past Due | 607,941 | 601,793 |
Total Loans | 613,513 | 606,881 |
Agricultural Loans | Financing Receivables 30 To 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 384 | 47 |
Agricultural Loans | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 348 | |
Agricultural Loans | Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 4,840 | 5,041 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 4,365 | |
Loans Not Past Due | 245,810 | 231,604 |
Total Loans | 245,810 | 235,969 |
Commercial Real Estate Loans | Financing Receivables 30 To 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 82 | |
Commercial Real Estate Loans | Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 4,283 | |
Commercial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 27 | 96 |
Loans Not Past Due | 107,442 | 114,991 |
Total Loans | 107,469 | 115,087 |
Commercial Loans | Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 27 | 96 |
Residential Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 4 | |
Loans Not Past Due | 34,873 | 38,080 |
Total Loans | 34,873 | 38,084 |
Residential Real Estate Loans | Financing Receivables 30 To 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 4 | |
Installment and Consumer Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 225 | 264 |
Total Loans | $ 225 | $ 264 |
Loans - Recorded Investment in
Loans - Recorded Investment in Nonaccrual Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | $ 30,071 | $ 41,624 |
Agricultural Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | 27,986 | 35,067 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | 1,756 | 6,093 |
Commercial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | $ 329 | 405 |
Residential Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | $ 59 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment and Interest Income Recognized on Impaired Loans by Portfolio Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable Impaired [Line Items] | |||||
Unpaid Principal Balance | $ 45,101 | $ 74,650 | $ 45,101 | $ 74,650 | $ 79,671 |
Recorded Investment | 42,602 | 71,188 | 42,602 | 71,188 | 73,731 |
Allowance for Loan Losses Allocated | 2,183 | 7,523 | 2,183 | 7,523 | $ 4,262 |
Average Recorded Investment | 53,508 | 68,480 | 58,168 | 67,814 | |
Interest Income Recognized | 152 | 1,196 | 1,155 | 2,530 | |
Agricultural Loans | |||||
Financing Receivable Impaired [Line Items] | |||||
Unpaid Principal Balance | 39,605 | 62,268 | 39,605 | 62,268 | |
Recorded Investment | 37,377 | 58,895 | 37,377 | 58,895 | |
Allowance for Loan Losses Allocated | 1,892 | 3,826 | 1,892 | 3,826 | |
Average Recorded Investment | 45,936 | 59,565 | 50,577 | 58,864 | |
Interest Income Recognized | 103 | 1,060 | 1,029 | 2,320 | |
Commercial Real Estate Loans | |||||
Financing Receivable Impaired [Line Items] | |||||
Unpaid Principal Balance | 2,958 | 9,420 | 2,958 | 9,420 | |
Recorded Investment | 2,722 | 9,351 | 2,722 | 9,351 | |
Allowance for Loan Losses Allocated | 217 | 2,471 | 217 | 2,471 | |
Average Recorded Investment | 4,898 | 6,496 | 4,900 | 6,517 | |
Interest Income Recognized | 36 | 115 | 73 | 140 | |
Commercial Loans | |||||
Financing Receivable Impaired [Line Items] | |||||
Unpaid Principal Balance | 2,538 | 2,962 | 2,538 | 2,962 | |
Recorded Investment | 2,503 | 2,882 | 2,503 | 2,882 | |
Allowance for Loan Losses Allocated | 74 | 1,226 | 74 | 1,226 | |
Average Recorded Investment | 2,645 | 2,360 | 2,661 | 2,372 | |
Interest Income Recognized | 13 | 21 | 53 | 69 | |
Residential Real Estate Loans | |||||
Financing Receivable Impaired [Line Items] | |||||
Recorded Investment | 60 | 60 | |||
Average Recorded Investment | $ 29 | $ 60 | $ 30 | 61 | |
Interest Income Recognized | $ 1 |
Loans - TDRs and Related Allowa
Loans - TDRs and Related Allowance for Loan Losses by Loan Class (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | $ 30,071 | $ 41,624 |
TDR Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 23,162 | 29,101 |
Restructured and Accruing | 7,641 | 18,592 |
Total | 30,803 | 47,693 |
Allowance for Loan Losses Allocated | 1,816 | 3,813 |
Agricultural Loans | TDR Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 21,379 | 27,223 |
Restructured and Accruing | 4,784 | 15,690 |
Total | 26,163 | 42,913 |
Allowance for Loan Losses Allocated | 1,595 | 3,494 |
Commercial Real Estate Loans | TDR Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 1,756 | 1,810 |
Restructured and Accruing | 966 | 984 |
Total | 2,722 | 2,794 |
Allowance for Loan Losses Allocated | 217 | 315 |
Commercial Loans | TDR Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 27 | 68 |
Restructured and Accruing | 1,891 | 1,918 |
Total | 1,918 | 1,986 |
Allowance for Loan Losses Allocated | $ 4 | $ 4 |
Loans - Number of Loans Modifie
Loans - Number of Loans Modified in Troubled Debt Restructuring Investment by Class (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($)Loan | Jun. 30, 2021USD ($)Loan | Jun. 30, 2020USD ($)Loan | |
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans | Loan | 6 | 5 | 8 |
Recorded Investment | $ | $ 2,640 | $ 1,586 | $ 2,872 |
Agricultural Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans | Loan | 6 | 5 | 8 |
Recorded Investment | $ | $ 2,640 | $ 1,586 | $ 2,872 |
Loans - Summary of Troubled Deb
Loans - Summary of Troubled Debt Restructurings Grouped by Type of Concession (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($)Loan | Jun. 30, 2021USD ($)Loan | Jun. 30, 2020USD ($)Loan | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Number of Loans | Loan | 6 | 5 | 8 |
Recorded Investment | $ | $ 2,640 | $ 1,586 | $ 2,872 |
Agricultural Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Number of Loans | Loan | 6 | 5 | 8 |
Recorded Investment | $ | $ 2,640 | $ 1,586 | $ 2,872 |
Agricultural Loans | Payment Concessions | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Number of Loans | Loan | 1 | 1 | |
Recorded Investment | $ | $ 231 | $ 231 | |
Agricultural Loans | Term concessions | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Number of Loans | Loan | 1 | ||
Recorded Investment | $ | $ 435 | $ 484 | |
Agricultural Loans | Extension of Interest-Only Payments | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Number of Loans | Loan | 2 | 5 | 2 |
Recorded Investment | $ | $ 75 | $ 1,586 | $ 75 |
Agricultural Loans | Combination of Extension of Term and Interest Rate Concessions | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Number of Loans | Loan | 2 | 3 | |
Recorded Investment | $ | $ 1,746 | $ 1,929 | |
Agricultural Loans | Capitalized Interest | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Number of Loans | Loan | 1 | 1 | |
Recorded Investment | $ | $ 153 | $ 153 |
Loans - Risk Category of Loans
Loans - Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Long Term Debt [Line Items] | ||
Total gross loans | $ 1,001,890 | $ 996,285 |
Agricultural Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 613,513 | 606,881 |
Commercial Real Estate Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 245,810 | 235,969 |
Commercial Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 107,469 | 115,087 |
Residential Real Estate Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 34,873 | 38,084 |
Installment and Consumer Other | ||
Long Term Debt [Line Items] | ||
Total gross loans | 225 | 264 |
Sound/ Acceptable/ Satisfactory/ Low Satisfactory | ||
Long Term Debt [Line Items] | ||
Total gross loans | 821,970 | 716,313 |
Sound/ Acceptable/ Satisfactory/ Low Satisfactory | Agricultural Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 467,743 | 374,595 |
Sound/ Acceptable/ Satisfactory/ Low Satisfactory | Commercial Real Estate Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 220,925 | 200,208 |
Sound/ Acceptable/ Satisfactory/ Low Satisfactory | Commercial Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 98,408 | 103,488 |
Sound/ Acceptable/ Satisfactory/ Low Satisfactory | Residential Real Estate Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 34,669 | 37,758 |
Sound/ Acceptable/ Satisfactory/ Low Satisfactory | Installment and Consumer Other | ||
Long Term Debt [Line Items] | ||
Total gross loans | 225 | 264 |
Watch | ||
Long Term Debt [Line Items] | ||
Total gross loans | 121,242 | 190,101 |
Watch | Agricultural Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 94,254 | 155,546 |
Watch | Commercial Real Estate Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 20,864 | 26,266 |
Watch | Commercial Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 5,920 | 8,022 |
Watch | Residential Real Estate Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 204 | 267 |
Special Mention | ||
Long Term Debt [Line Items] | ||
Total gross loans | 566 | 2,501 |
Special Mention | Agricultural Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 1,854 | |
Special Mention | Commercial Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 566 | 647 |
Substandard Performing | ||
Long Term Debt [Line Items] | ||
Total gross loans | 27,743 | 40,420 |
Substandard Performing | Agricultural Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 23,232 | 34,452 |
Substandard Performing | Commercial Real Estate Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 2,265 | 3,402 |
Substandard Performing | Commercial Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 2,246 | 2,566 |
Substandard Impaired | ||
Long Term Debt [Line Items] | ||
Total gross loans | 30,369 | 46,950 |
Substandard Impaired | Agricultural Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 28,284 | 40,434 |
Substandard Impaired | Commercial Real Estate Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | 1,756 | 6,093 |
Substandard Impaired | Commercial Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | $ 329 | 364 |
Substandard Impaired | Residential Real Estate Loans | ||
Long Term Debt [Line Items] | ||
Total gross loans | $ 59 |
Loan Servicing Rights - Additio
Loan Servicing Rights - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Servicing Assets at Fair Value [Line Items] | ||||||
Unpaid principal balance of loan | $ 853,200 | $ 812,600 | ||||
Loan servicing rights, fair value | $ 19,478 | $ 18,396 | $ 18,864 | $ 16,486 | $ 16,211 | $ 15,921 |
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, discount rate | 15.00% | 14.30% | ||||
Weighted Average | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, Prepayment speed | 16.78% | 16.59% | ||||
Minimum | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, Prepayment speed | 16.25% | 16.02% | ||||
Maximum | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, Prepayment speed | 24.32% | 24.72% | ||||
Level 3 Inputs | ||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Loan servicing rights, fair value | $ 19,500 | $ 18,400 |
Loan Servicing Rights - Summary
Loan Servicing Rights - Summary of Servicing Rights Capitalized along with the Aggregate Activity in Related Valuation Allowances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Transfers And Servicing [Abstract] | ||||
Balance, beginning of period | $ 18,864 | $ 16,211 | $ 18,396 | $ 15,921 |
Additions, net | 1,775 | 1,041 | 3,362 | 1,546 |
Fair value changes: | ||||
Decay due to increases in principal paydowns or runoff | (859) | (727) | (1,130) | (992) |
Due to changes in valuation inputs or assumptions | (302) | (39) | (1,150) | 11 |
Balance, end of period | $ 19,478 | $ 16,486 | $ 19,478 | $ 16,486 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Demand deposits | $ 158,880 | $ 163,202 |
NOW and interest checking | 136,180 | 96,624 |
Savings | 9,059 | 7,367 |
Money market accounts | 394,486 | 344,250 |
Certificates of deposit | 259,386 | 304,580 |
National time deposits | 18,648 | 44,347 |
Brokered deposits | 159,087 | 80,456 |
Total deposits | $ 1,135,726 | $ 1,040,826 |
Advances From FHLB and Other _3
Advances From FHLB and Other Borrowings - Additional Information (Detail) | Mar. 02, 2020USD ($)Option | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||
Advances from FHLB | $ 88,000,000 | $ 129,000,000 | |
Other borrowings | 35,557,000 | 49,006,000 | |
Federal Reserve’s PPP Liquidity Facility | |||
Debt Instrument [Line Items] | |||
Available borrowings | $ 34,200,000 | 47,500,000 | |
Interest rate | 0.35% | ||
Collateralized Loan Obligations | |||
Debt Instrument [Line Items] | |||
Other borrowings | $ 100,000 | 200,000 | |
Federal Reserve Bank Of Chicago | |||
Debt Instrument [Line Items] | |||
Line of credit amount outstanding | 53,600,000 | 111,500,000 | |
Available borrowings | 46,200,000 | 83,300,000 | |
Other borrowings | 0 | 0 | |
Mortgage Loans | |||
Debt Instrument [Line Items] | |||
Pledged qualifying mortgage loans | $ 453,800,000 | 367,600,000 | |
Manitowoc, Wisconsin | |||
Debt Instrument [Line Items] | |||
Lease monthly rental payments | $ 16,000 | ||
Lease term | 10 years | ||
Number of lease renewal options | Option | 2 | ||
Lease renewal term | 5 years | ||
Lease option to extend | true | ||
Finance lease liability | $ 1,200,000 | $ 1,300,000 |
Advances from FHLB and Other _4
Advances from FHLB and Other Borrowings - Advances Outstanding from FHLB (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Advances from FHLB | $ 88,000 | $ 129,000 |
Fixed rate, short term, Advance for FHLB, 1 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Jan. 4, 2021 | |
Advances from FHLB, Rate | 0.23% | |
Advances from FHLB | 29,000 | |
Fixed rate, fixed term, Advance for FHLB, 2 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Apr. 12, 2021 | |
Advances from FHLB, Rate | 1.92% | |
Advances from FHLB | 8,000 | |
Fixed rate, fixed term, Advance for FHLB, 3 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | May 3, 2021 | |
Advances from FHLB, Rate | 0.00% | |
Advances from FHLB | 4,000 | |
Fixed rate, fixed term, Advance for FHLB, 4 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Jun. 15, 2021 | |
Advances from FHLB, Rate | 1.39% | |
Advances from FHLB | 5,000 | |
Fixed rate, fixed term, Advance for FHLB, 5 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Aug. 16, 2021 | |
Advances from FHLB, Rate | 2.29% | |
Advances from FHLB | $ 3,000 | 3,000 |
Fixed rate, fixed term, Advance for FHLB, 6 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Dec. 30, 2021 | |
Advances from FHLB, Rate | 2.29% | |
Advances from FHLB | $ 2,000 | 2,000 |
Fixed rate, fixed term, Advance for FHLB, 7 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Mar. 18, 2022 | |
Advances from FHLB, Rate | 1.03% | |
Advances from FHLB | $ 15,000 | 15,000 |
Fixed rate, fixed term, Advance for FHLB, 8 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Mar. 25, 2022 | |
Advances from FHLB, Rate | 0.75% | |
Advances from FHLB | $ 10,000 | 10,000 |
Fixed rate, fixed term, Advance for FHLB, 9 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | May 16, 2022 | |
Advances from FHLB, Rate | 0.00% | |
Advances from FHLB | $ 5,000 | |
Fixed rate, fixed term, Advance for FHLB, 10 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Nov. 16, 2022 | |
Advances from FHLB, Rate | 0.38% | |
Advances from FHLB | $ 20,000 | 20,000 |
Fixed rate, putable, 2 years no call | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Jan. 12, 2023 | |
Advances from FHLB, Rate | 2.03% | |
Advances from FHLB | $ 8,000 | 8,000 |
Fixed rate, fixed term, Advance for FHLB, 11 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Mar. 23, 2023 | |
Advances from FHLB, Rate | 1.26% | |
Advances from FHLB | $ 10,000 | 10,000 |
Fixed rate, fixed term, Advance for FHLB, 12 | ||
Debt Instrument [Line Items] | ||
Advances from FHLB, Maturity | Mar. 27, 2023 | |
Advances from FHLB, Rate | 0.82% | |
Advances from FHLB | $ 15,000 | $ 15,000 |
Advances from FHLB and Other _5
Advances from FHLB and Other Borrowings - Balances and Interest Rates on Other Borrowings (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Other Borrowings: | ||
Balance outstanding at end of period | $ 35,557 | $ 49,006 |
Average amount outstanding during the period | 43,803 | 61,483 |
Maximum amount outstanding at any month-end | $ 49,917 | $ 93,709 |
Weighted average interest rate during the period | 0.39% | 0.42% |
Weighted average interest rate at end of period | 0.41% | 0.39% |
Subordinated Debentures - Summa
Subordinated Debentures - Summary of Carrying Values, Including Unamortized Issuance Costs of Subordinated Debt (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | |||
Total subordinated debentures | $ 67,519 | $ 67,111 | |
Junior Subordinated Notes | County Bancorp Statutory Trust II | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures | [1],[2] | $ 6,186 | 6,186 |
Interest Rate | [1],[2] | 1.65% | |
Interest Reset Date | [1],[2] | Sep. 15, 2021 | |
Advances from FHLB, Maturity | [1],[2] | Sep. 15, 2035 | |
Junior Subordinated Notes | County Bancorp Statutory Trust III | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures | [2],[3] | $ 6,186 | 6,186 |
Interest Rate | [2],[3] | 1.81% | |
Interest Reset Date | [2],[3] | Sep. 15, 2021 | |
Advances from FHLB, Maturity | [2],[3] | Jun. 15, 2036 | |
Junior Subordinated Notes | Fox River Valley Capital Trust I | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures | [4] | $ 3,610 | 3,336 |
Interest Rate | [4] | 6.40% | |
Interest Reset Date | [4] | Nov. 30, 2023 | |
Advances from FHLB, Maturity | [4] | May 30, 2033 | |
Subordinated Notes | 5.875% Fixed-to-Floating Rate | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures | [5] | $ 29,639 | 29,545 |
Interest Rate | [5] | 5.875% | |
Interest Reset Date | [5] | Jun. 1, 2023 | |
Call Date | [5] | Jun. 1, 2023 | |
Advances from FHLB, Maturity | [5] | Jun. 1, 2028 | |
Subordinated Notes | 7.00% Fixed-to-Floating Rate | |||
Debt Instrument [Line Items] | |||
Total subordinated debentures | [6] | $ 21,898 | $ 21,858 |
Interest Rate | [6] | 7.00% | |
Interest Reset Date | [6] | Jun. 30, 2025 | |
Call Date | [6] | Jun. 30, 2025 | |
Advances from FHLB, Maturity | [6] | Jun. 30, 2030 | |
[1] | The debentures issued to Trust II bear an interest rate of three-month LIBOR plus 1.53% through maturity. | ||
[2] | The company formed wholly owned subsidiary business trusts County Bancorp Statutory Trust II (“Trust II”) and County Bancorp Statutory Trust III (“Trust III”) (together, the “Trusts”), which are both Delaware statutory trusts. The Company owns all of the outstanding common securities of Trust II and Trust III, which qualify as Tier 1 capital for regulatory purposes. The Trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“debentures”) issued by the Company. These debentures are the Trusts’ only assets, and interest payments from these debentures finance the distributions paid on the capital securities. These debentures are unsecured, rank junior, and are subordinate in the right of payment to all senior debt of the Company. | ||
[3] | The debentures issued to Trust III bear an interest rate of three-month LIBOR plus 1.69% through maturity. | ||
[4] | In connection with the merger with Fox River Valley, the Company acquired all of the common securities of Fox River Valley’s wholly-owned subsidiary, Fox River Valley Capital Trust I, a Delaware statutory trust (the “FRV Trust I”), which qualify as Tier 1 capital for regulatory purposes. The debentures of the Company owned by FRV Trust I carry an interest rate equal to 5-year LIBOR plus 3.40%, which resets every five years. | ||
[5] | The notes bear interest at a fixed rate of 5.875% per year, from and including May 30, 2018 to, but excluding, June 1, 2023. From and including June 1, 2023 to, but excluding, the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current 3-month LIBOR plus 2.88%. The notes qualify as Tier 2 capital of the Company. Debt issuance costs of $0.9 million are being amortized over the life of the notes. | ||
[6] | The notes bear interest at a fixed rate of 7.00% per year, from and including June 30, 2020 to, but excluding, June 30, 2025. From and including June 30, 2025 to, but excluding, the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current three-month term secured overnight financing rate (SOFR) plus 687.5 basis points. The notes qualify as Tier 2 capital of the Company. The Company incurred $0.6 million of costs related to the issuance of the notes. These costs have been capitalized and are being amortized over the life of the notes. |
Subordinated Debentures - Sum_2
Subordinated Debentures - Summary of Carrying Values, Including Unamortized Issuance Costs of Subordinated Debt (Parenthetical) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
5-year LIBOR | Fox River Valley Capital Trust I | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.40% |
Subordinated Notes | 5.875% Fixed-to-Floating Rate | |
Debt Instrument [Line Items] | |
Fixed interest rate | 5.875% |
Debt issuance costs | $ 0.9 |
Subordinated Notes | 7.00% Fixed-to-Floating Rate | |
Debt Instrument [Line Items] | |
Fixed interest rate | 7.00% |
Debt issuance costs | $ 0.6 |
Frequency of interest payment | quarterly |
Subordinated Notes | Interest Reset Date_June 01, 2023 | |
Debt Instrument [Line Items] | |
Fixed-to-floating rate | 5.875% |
Subordinated Notes | Interest Reset Date_June 30, 2025 | |
Debt Instrument [Line Items] | |
Fixed-to-floating rate | 7.00% |
Subordinated Notes | Three month LIBOR | 5.875% Fixed-to-Floating Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.88% |
Description of variable rate basis | 3-month LIBOR |
Subordinated Notes | SOFR | 7.00% Fixed-to-Floating Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 6.875% |
Description of variable rate basis | three-month term secured overnight financing rate (SOFR) |
Trust II | Three month LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.53% |
Trust III | Three month LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.69% |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options granted under plan | 6,070 | |||
Share-based compensation expense | $ 497 | $ 496 | ||
Unrecognized share-based compensation expense related to nonvested share-based compensation instruments amounted | $ 1,300 | $ 1,300 | ||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Option term | 10 years | |||
Maximum | Equity Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Minimum | Equity Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Restricted Stock Awards | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Restricted Stock Awards | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Stock Options, Restricted Stock Awards and Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 200 | $ 300 | $ 500 | $ 500 |
Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense related to nonvested share-based compensation instruments amounted, weighted average period of recognition | 2 years 1 month 2 days | |||
2021 Long Term Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options granted under plan | 270,455 | |||
2021 Long Term Incentive Plan | Restricted Stock Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of restricted stock granted under plan | 270,455 |
Equity Incentive Plan - Activit
Equity Incentive Plan - Activity in Outstanding Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2021 | ||
Number of Options | |||||
Options, Outstanding beginning of year | 249,667 | 249,667 | |||
Options, Granted | 6,070 | ||||
Options, Exercised | (18,274) | (6,206) | (14,590) | (24,480) | |
Options, Forfeited/expired | (9,177) | ||||
Options, Outstanding end of period | 222,080 | 222,080 | |||
Options exercisable at period-end | 156,703 | 156,703 | |||
Weighted-Average Exercise Price | |||||
Weighted Average Exercise price, Outstanding, beginning of year | $ 19.75 | $ 19.75 | |||
Weighted Average Exercise Price, Granted | 24.73 | ||||
Weighted Average Exercise Price, Exercised | 17.91 | ||||
Weighted Average Exercise Price, Forfeited/expired | 20.38 | ||||
Weighted Average Exercise Price, Outstanding, end of period | $ 20.06 | $ 20.06 | |||
Aggregate Intrinsic Value | |||||
Aggregate Intrinsic Value, Outstanding, end of period | [1] | $ 3,087 | $ 3,087 | ||
Aggregate Intrinsic Value, Options exercisable at period-end | [1] | $ 2,198 | $ 2,198 | ||
Black-Scholes Option Pricing Model | |||||
Weighted-Average Exercise Price | |||||
Weighted-average fair value of options granted during the period | [2] | $ 8.03 | |||
[1] | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2021. This amount changes based on changes in the market value of the Company’s stock. | ||||
[2] | The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. |
Equity Incentive Plan - Activ_2
Equity Incentive Plan - Activity in Restricted Stock Awards and Restricted Stock Units (Detail) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Restricted Stock Awards | |
Number of Non-Vested Shares | |
Outstanding, beginning of year | 6,299 |
Vested | (3,500) |
Forfeited/expired | (493) |
Outstanding, end of period | 2,306 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Price Outstanding, Beginning of year | $ / shares | $ 24.80 |
Weighted Average Grant Price, Vested | $ / shares | 22.90 |
Weighted Average Grant Price, Forfeited or expired | $ / shares | 27.15 |
Weighted Average Grant Price Outstanding, End of year | $ / shares | $ 27.19 |
Restricted Stock Units | |
Number of Non-Vested Shares | |
Outstanding, beginning of year | 66,856 |
Granted | 42,437 |
Vested | (17,849) |
Forfeited/expired | (3,332) |
Outstanding, end of period | 88,112 |
Restricted shares vested not yet issued, end of period | 9,779 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Price Outstanding, Beginning of year | $ / shares | $ 19.38 |
Weighted Average Grant Price Outstanding, Granted | $ / shares | 22.87 |
Weighted Average Grant Price, Vested | $ / shares | 20.27 |
Weighted Average Grant Price, Forfeited or expired | $ / shares | 18.25 |
Weighted Average Grant Price Outstanding, End of year | $ / shares | $ 20.92 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Regulatory Capital Requirements [Abstract] | ||
Tier 1 Common Equity ratio to risk weighted assets minimum for capital adequacy purposes excluding capital conservative buffer percentage | 4.50% | |
Capital conservative buffer percentage | 2.50% | |
Tier 1 Common Equity ratio to risk weighted assets minimum for capital adequacy purposes | 7.00% | 7.00% |
Tier 1 Capital ratio to risk weighted assets minimum for capital adequacy purposes excluding capital conservative buffer percentage | 0.0600 | |
Tier 1 Capital ratio to risk weighted assets minimum for capital adequacy purposes | 0.0850 | 0.0850 |
Total Capital ratio to risk weighted assets minimum for capital adequacy purpose excluding capital conservative buffer percentage | 0.0800 | |
Total Capital ratio to risk weighted assets minimum for capital adequacy purpose | 0.1050 | 0.1050 |
Tier 1 minimum Leverage Capital ratio | 0.0400 | 0.0400 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Actual Capital Amounts and Ratios of Company and Bank's (Detail) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to risk weighted assets), Actual Amount | $ 248,921 | $ 246,275 |
Total Capital (to risk weighted assets), Actual Ratio | 0.1914 | 0.1950 |
Total Capital (to risk weighted assets), Minimum For Capital Adequacy Purpose (including the capital conservation buffer), Amount | $ 136,589 | $ 132,603 |
Total Capital (to risk weighted assets), Minimum For Capital Adequacy Purpose (including the capital conservation buffer), Ratio | 0.1050 | 0.1050 |
Total Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 0 | $ 0 |
Tier 1 Capital (to risk weighted assets), Actual Amount | $ 185,917 | $ 180,135 |
Tier 1 Capital (to risk weighted assets), Actual Ratio | 0.1429 | 0.1426 |
Tier 1 Capital (to risk weighted assets), Minimum For Capital Adequacy Purposes (including the capital conservation buffer), Amount | $ 110,572 | $ 107,345 |
Tier 1 Capital (to risk weighted assets), Minimum For Capital Adequacy Purposes (including the capital conservation buffer), Ratio | 0.0850 | 0.0850 |
Tier 1 Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 0 | $ 0 |
Tier 1 Capital (to average assets), Actual Amount | $ 185,917 | $ 180,135 |
Tier 1 Capital (to average assets), Actual Ratio | 0.1278 | 0.1301 |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions (including the capital conservation buffer), Amount | $ 58,177 | $ 55,403 |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions (including the capital conservation buffer), Ratio | 0.0400 | 0.0400 |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions, Amount | $ 0 | $ 0 |
Tier 1 Common Equity (to risk weighted assets), Actual Amount | $ 161,935 | $ 156,427 |
Tier 1 Common Equity (to risk weighted assets), Actual Ratio | 12.45% | 12.39% |
Tier 1 Common Equity (to risk weighted assets), Minimum For Capital Adequacy Purposes (including the capital conservation buffer), Amount | $ 91,060 | $ 88,402 |
Tier 1 Common Equity (to risk weighted assets), Minimum For Capital Adequacy Purposes (including the capital conservation buffer), Ratio | 7.00% | 7.00% |
Tier 1 Common Equity (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 0 | $ 0 |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to risk weighted assets), Actual Amount | $ 215,028 | $ 211,864 |
Total Capital (to risk weighted assets), Actual Ratio | 0.1658 | 0.1683 |
Total Capital (to risk weighted assets), Minimum For Capital Adequacy Purpose (including the capital conservation buffer), Amount | $ 136,182 | $ 132,174 |
Total Capital (to risk weighted assets), Minimum For Capital Adequacy Purpose (including the capital conservation buffer), Ratio | 0.1050 | 0.1050 |
Total Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 129,697 | $ 125,880 |
Total Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.1000 |
Tier 1 Capital (to risk weighted assets), Actual Amount | $ 203,562 | $ 197,056 |
Tier 1 Capital (to risk weighted assets), Actual Ratio | 0.1570 | 0.1565 |
Tier 1 Capital (to risk weighted assets), Minimum For Capital Adequacy Purposes (including the capital conservation buffer), Amount | $ 110,243 | $ 106,998 |
Tier 1 Capital (to risk weighted assets), Minimum For Capital Adequacy Purposes (including the capital conservation buffer), Ratio | 0.0850 | 0.0850 |
Tier 1 Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 103,758 | $ 100,704 |
Tier 1 Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.0800 |
Tier 1 Capital (to average assets), Actual Amount | $ 203,562 | $ 197,056 |
Tier 1 Capital (to average assets), Actual Ratio | 0.1394 | 0.1406 |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions (including the capital conservation buffer), Amount | $ 58,399 | $ 56,047 |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions (including the capital conservation buffer), Ratio | 0.0400 | 0.0400 |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions, Amount | $ 72,998 | $ 70,059 |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0500 |
Tier 1 Common Equity (to risk weighted assets), Actual Amount | $ 203,562 | $ 197,056 |
Tier 1 Common Equity (to risk weighted assets), Actual Ratio | 15.70% | 15.65% |
Tier 1 Common Equity (to risk weighted assets), Minimum For Capital Adequacy Purposes (including the capital conservation buffer), Amount | $ 90,788 | $ 88,116 |
Tier 1 Common Equity (to risk weighted assets), Minimum For Capital Adequacy Purposes (including the capital conservation buffer), Ratio | 7.00% | 7.00% |
Tier 1 Common Equity (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 84,303 | $ 81,822 |
Tier 1 Common Equity (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 349,334 | $ 352,854 |
Loan servicing rights | 19,478 | 18,396 |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 45,049 | 32,511 |
Fair Value on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 368,812 | 371,250 |
Loan servicing rights | 19,478 | 18,396 |
Total liabilities at fair value | 1,360 | 1,914 |
Fair Value on a Recurring Basis | Derivative Instruments, Interest Rate Swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 1,360 | 1,914 |
Fair Value on a Recurring Basis | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 45,049 | 32,511 |
Fair Value on a Recurring Basis | U.S. Government and Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 12,841 | 14,593 |
Fair Value on a Recurring Basis | Mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 145,054 | 135,378 |
Fair Value on a Recurring Basis | Asset-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 16,386 | 16,718 |
Fair Value on a Recurring Basis | Municipal Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 130,004 | 153,654 |
Fair Value on a Recurring Basis | Level 2 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 349,334 | 352,854 |
Total liabilities at fair value | 1,360 | 1,914 |
Fair Value on a Recurring Basis | Level 2 Inputs | Derivative Instruments, Interest Rate Swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 1,360 | 1,914 |
Fair Value on a Recurring Basis | Level 2 Inputs | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 45,049 | 32,511 |
Fair Value on a Recurring Basis | Level 2 Inputs | U.S. Government and Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 12,841 | 14,593 |
Fair Value on a Recurring Basis | Level 2 Inputs | Mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 145,054 | 135,378 |
Fair Value on a Recurring Basis | Level 2 Inputs | Asset-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 16,386 | 16,718 |
Fair Value on a Recurring Basis | Level 2 Inputs | Municipal Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 130,004 | 153,654 |
Fair Value on a Recurring Basis | Level 3 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 19,478 | 18,396 |
Loan servicing rights | $ 19,478 | $ 18,396 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Carried on Consolidated Balance Sheet for Which Nonrecurring Change in Fair Value Has Been Recorded (Detail) - Fair Value on a Nonrecurring Basis - Level 3 Inputs - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 32,400 | $ 47,598 |
Impaired Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 31,486 | 46,521 |
Other Real Estate Owned | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 914 | $ 1,077 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Inputs Used in Fair Value Measurements for Level 3 Assets Measured on Nonrecurring Basis (Detail) - Level 3 Inputs | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Impaired Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Valuation Techniques | icbk:EvaluationOfCollateralMember | icbk:EvaluationOfCollateralMember |
Unobservable Inputs | Estimation of value | Estimation of value |
Other Real Estate Owned | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Valuation Techniques | icbk:AppraisalMember | icbk:AppraisalMember |
Unobservable Inputs | Appraisal adjustment | Appraisal adjustment |
Other Real Estate Owned | Minimum | Measurement Input, Comparability Adjustment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Range (Average) | 0.06 | 0.06 |
Other Real Estate Owned | Maximum | Measurement Input, Comparability Adjustment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Range (Average) | 0.07 | 0.09 |
Other Real Estate Owned | Weighted Average | Measurement Input, Comparability Adjustment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Range (Average) | 0.07 | 0.07 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||||||
Interest earning cash at other financial institutions | $ 416 | $ 416 | ||||
Securities available for sale | 349,334 | 352,854 | ||||
Loan servicing rights | 19,478 | $ 18,864 | 18,396 | $ 16,486 | $ 16,211 | $ 15,921 |
Level 3 Inputs | ||||||
Financial assets: | ||||||
Loan servicing rights | 19,500 | 18,400 | ||||
Carrying Amount | Level 1 Inputs | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 72,329 | 19,084 | ||||
Interest earning cash at other financial institutions | 416 | 416 | ||||
Carrying Amount | Level 2 Inputs | ||||||
Financial assets: | ||||||
FHLB Stock | 5,485 | 5,758 | ||||
Securities available for sale | 349,334 | 352,854 | ||||
Accrued interest receivable | 4,511 | 3,240 | ||||
Financial liabilities: | ||||||
Advances from FHLB | 88,000 | 129,000 | ||||
Accrued interest payable | 1,408 | 2,496 | ||||
Derivative instruments, interest rate swaps | 1,360 | 1,914 | ||||
Carrying Amount | Level 3 Inputs | ||||||
Financial assets: | ||||||
Loans, net of allowance for loan losses | 990,424 | 981,477 | ||||
Loans held for sale | 15,805 | 35,976 | ||||
Loan servicing rights | 19,478 | 18,396 | ||||
Financial liabilities: | ||||||
Other borrowings | 35,557 | 49,006 | ||||
Subordinated debentures | 67,519 | 67,111 | ||||
Fair Value | Level 1 Inputs | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 72,329 | 19,084 | ||||
Interest earning cash at other financial institutions | 416 | 416 | ||||
Fair Value | Level 2 Inputs | ||||||
Financial assets: | ||||||
FHLB Stock | 5,485 | 5,758 | ||||
Securities available for sale | 349,334 | 352,854 | ||||
Accrued interest receivable | 4,511 | 3,240 | ||||
Financial liabilities: | ||||||
Advances from FHLB | 88,907 | 130,361 | ||||
Accrued interest payable | 1,408 | 2,496 | ||||
Derivative instruments, interest rate swaps | 1,360 | 1,914 | ||||
Fair Value | Level 3 Inputs | ||||||
Financial assets: | ||||||
Loans, net of allowance for loan losses | 1,002,823 | 991,342 | ||||
Loans held for sale | 15,805 | 35,976 | ||||
Loan servicing rights | 19,478 | 18,396 | ||||
Financial liabilities: | ||||||
Other borrowings | 35,557 | 49,006 | ||||
Subordinated debentures | 66,435 | 67,111 | ||||
Bank Time Deposits | Carrying Amount | Level 2 Inputs | ||||||
Financial liabilities: | ||||||
Deposits | 437,121 | 419,542 | ||||
Bank Time Deposits | Fair Value | Level 2 Inputs | ||||||
Financial liabilities: | ||||||
Deposits | 429,991 | 426,092 | ||||
Other Deposits | Carrying Amount | Level 1 Inputs | ||||||
Financial liabilities: | ||||||
Deposits | 698,605 | 621,284 | ||||
Other Deposits | Fair Value | Level 1 Inputs | ||||||
Financial liabilities: | ||||||
Deposits | $ 698,605 | $ 621,284 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Changes in Other Real Estate Owned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | ||||
Balance, beginning of period | $ 739 | $ 3,247 | $ 1,077 | $ 5,521 |
Assets foreclosed | 360 | 360 | ||
Write-down of other real estate owned | (1,360) | |||
Net loss on sales of other real estate owned | (17) | (4) | ||
Proceeds from sale of other real estate owned | (185) | (618) | (506) | (1,528) |
Balance, end of period | $ 914 | $ 2,629 | $ 914 | $ 2,629 |
Other Real Estate Owned - Expen
Other Real Estate Owned - Expenses Applicable to Other Real Estate Owned Included in Non-Interest Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | ||||
Net loss on sales of other real estate owned | $ (17) | $ (4) | ||
Write-down of other real estate owned | (1,360) | |||
Operating expenses, net of rental income | $ (52) | $ (50) | (71) | (166) |
Total Expenses | $ (52) | $ (50) | $ (88) | $ (1,530) |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Detail) | Jun. 15, 2018Security | Jun. 30, 2021USD ($)Swap | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Number of trust preferred securities | Security | 2 | |||
Number of outstanding interest rate swap | Swap | 2 | |||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Pre-tax unrealized gain (loss) recognized in accumulated other comprehensive income | $ 600,000 | $ (1,300,000) | ||
Ineffective portion of cash flow hedge | 0 | $ 0 | ||
Cash collateral for derivative instrument | 2,400,000 | |||
Interest Rate Swap One | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Aggregate notional value | $ 6,000,000 | |||
Maturity date | Jun. 15, 2028 | |||
Interest Rate Swap Two | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Aggregate notional value | $ 6,000,000 | |||
Maturity date | Jun. 15, 2028 |