Document and Entity Information
Document and Entity Information - USD ($) | Dec. 31, 2020 | Dec. 31, 2020 | Mar. 04, 2021 | Jun. 30, 2020 |
Cover [Abstract] | ||||
Entity Registrant Name | INDEPENDENT BANK CORPORATION | |||
Entity Central Index Key | 0000039311 | 0000039311 | ||
Current Fiscal Year End Date | --12-31 | --12-31 | ||
Document Type | 10-K | |||
Amendment Flag | false | false | ||
Document Annual Report | true | |||
Document Period End Date | Dec. 31, 2020 | |||
Document Fiscal Year Focus | 2020 | 2020 | ||
Document Fiscal Period Focus | FY | FY | ||
Document Transition Report | false | |||
Entity File Number | 0-7818 | |||
Entity Incorporation, State or Country Code | MI | |||
Entity Tax Identification Number | 38-2032782 | |||
Entity Address, Address Line One | 4200 East Beltline | |||
Entity Address, City or Town | Grand Rapids | |||
Entity Address, State or Province | MI | |||
Entity Address, Postal Zip Code | 49525 | |||
City Area Code | 616 | |||
Local Phone Number | 527-5820 | |||
Title of 12(b) Security | Common Stock, No Par Value | |||
Trading Symbol | IBCP | |||
Security Exchange Name | NASDAQ | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Accelerated Filer | |||
Entity Small Business | false | |||
Entity Emerging Growth Company | false | |||
Entity Shell Company | false | |||
Entity Public Float | $ 318,683,270 | |||
Entity Common Stock, Shares Outstanding | 21,772,847 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 56,006 | $ 53,295 |
Interest bearing deposits | 62,699 | 12,009 |
Cash and Cash Equivalents | 118,705 | 65,304 |
Interest bearing deposits - time | 0 | 350 |
Securities available for sale | 1,072,159 | 518,400 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 18,427 | 18,359 |
Loans held for sale, carried at fair value | 92,434 | 69,800 |
Loans | ||
Loans | 2,733,678 | 2,725,023 |
Allowance for loan losses | (35,429) | (26,148) |
Net Loans | 2,698,249 | 2,698,875 |
Other real estate and repossessed assets, net | 766 | 1,865 |
Property and equipment, net | 36,127 | 38,411 |
Bank-owned life insurance | 55,180 | 55,710 |
Capitalized mortgage loan servicing rights, carried at fair value | 16,904 | 19,171 |
Other intangibles | 4,306 | 5,326 |
Goodwill | 28,300 | 28,300 |
Accrued income and other assets | 62,456 | 44,823 |
Total Assets | 4,204,013 | 3,564,694 |
Deposits | ||
Non-interest bearing | 1,153,473 | 852,076 |
Savings and interest-bearing checking | 1,526,465 | 1,186,745 |
Reciprocal | 556,185 | 431,027 |
Time | 287,402 | 376,877 |
Brokered time | 113,830 | 190,002 |
Total Deposits | 3,637,355 | 3,036,727 |
Other borrowings | 30,012 | 88,646 |
Subordinated debt | 39,281 | 0 |
Subordinated debentures | 39,524 | 39,456 |
Accrued expenses and other liabilities | 68,319 | 49,696 |
Total Liabilities | 3,814,491 | 3,214,525 |
Commitments and contingent liabilities | ||
Shareholders' Equity | ||
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 21,853,800 shares at December 31, 2020 and 22,481,643 shares at December 31, 2019 | 339,353 | 352,344 |
Retained earnings | 40,145 | 1,611 |
Accumulated other comprehensive income (loss) | 10,024 | (3,786) |
Total Shareholders' Equity | 389,522 | 350,169 |
Total Liabilities and Shareholders' Equity | 4,204,013 | 3,564,694 |
Commercial [Member] | ||
Loans | ||
Loans | 1,242,415 | 1,166,695 |
Allowance for loan losses | (7,401) | (7,922) |
Mortgage [Member] | ||
Loans | ||
Loans | 1,015,926 | 1,098,911 |
Allowance for loan losses | (6,998) | (8,216) |
Installment [Member] | ||
Loans | ||
Loans | 475,337 | 459,417 |
Allowance for loan losses | $ (1,112) | $ (1,283) |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Shareholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 21,853,800 | 22,481,643 |
Common stock, shares outstanding (in shares) | 21,853,800 | 22,481,643 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
INTEREST INCOME | ||||
Interest and fees on loans | $ 123,159 | $ 133,883 | $ 116,865 | |
Interest on securities available for sale | ||||
Taxable | 12,655 | 11,842 | 10,874 | |
Tax-exempt | 2,926 | 1,342 | 1,743 | |
Other investments | 1,089 | 1,861 | 1,291 | |
Total Interest Income | 139,829 | 148,928 | 130,773 | |
INTEREST EXPENSE | ||||
Deposits | 12,666 | 23,425 | 14,478 | |
Other borrowings and subordinated debt and debentures | 3,551 | 2,922 | 3,013 | |
Total Interest Expense | 16,217 | 26,347 | 17,491 | |
Net Interest Income | 123,612 | 122,581 | 113,282 | |
Provision for loan losses | 12,463 | 824 | 1,503 | |
Net Interest Income After Provision for Loan Losses | 111,149 | 121,757 | 111,779 | |
NON-INTEREST INCOME | ||||
Interchange income | 11,230 | 10,297 | 9,905 | |
Service charges on deposit accounts | 8,517 | 11,208 | 12,258 | |
Net gains on assets | ||||
Mortgage loans | 62,560 | 19,978 | 10,597 | |
Securities available for sale | 267 | 307 | 138 | |
Mortgage loan servicing, net | (9,350) | (3,336) | 3,157 | |
Other | 7,521 | 9,282 | 8,760 | |
Total Non-Interest Income | 80,745 | 47,736 | 44,815 | |
NON-INTEREST EXPENSE | ||||
Compensation and employee benefits | 74,781 | 67,501 | 62,078 | |
Occupancy, net | 8,938 | 9,013 | 8,912 | |
Data processing | 8,534 | 8,905 | 8,262 | |
Furniture, fixtures and equipment | 4,089 | 4,113 | 4,080 | |
Interchange expense | 3,342 | 3,215 | 2,702 | |
Communications | 3,194 | 2,947 | 2,848 | |
Loan and collection | 3,037 | 2,685 | 2,682 | |
Conversion related expense | 2,586 | 0 | 0 | |
Advertising | 2,230 | 2,450 | 2,155 | |
Legal and professional | 2,027 | 1,814 | 1,839 | |
FDIC deposit insurance | 1,596 | 685 | 1,081 | |
Net (gains) losses on other real estate and repossessed assets | 64 | (90) | (672) | |
Merger related expenses | 0 | 0 | 3,465 | |
Other | 7,995 | 8,495 | 8,029 | |
Total Non-interest Expense | 122,413 | 111,733 | 107,461 | |
Income Before Income Tax | 69,481 | 57,760 | 49,133 | |
Income tax expense | 13,329 | 11,325 | 9,294 | |
Net Income | $ 56,152 | $ 46,435 | $ 39,839 | |
Net income per common share | ||||
Basic (in dollars per share) | [1] | $ 2.56 | $ 2.03 | $ 1.70 |
Diluted (in dollars per share) | $ 2.53 | $ 2 | $ 1.68 | |
[1] | Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income | $ 56,152 | $ 46,435 | $ 39,839 |
Securities available for sale | |||
Unrealized gain (loss) arising during period | 15,611 | 10,235 | (4,594) |
Change in unrealized gains and losses for which a portion of other than temporary impairment has been recognized in earnings | (49) | (65) | (53) |
Reclassification adjustments for gains included in earnings | (267) | (140) | (56) |
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale | 15,295 | 10,030 | (4,703) |
Income tax expense (benefit) | 3,212 | 2,106 | (988) |
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale, net of tax | 12,083 | 7,924 | (3,715) |
Derivative instruments | |||
Unrealized losses arising during period | (354) | (1,603) | (262) |
Reclassification adjustment for (income) expense recognized in earnings | 2,539 | (425) | (237) |
Unrealized gains (losses) recognized in other comprehensive income (loss) on derivative instruments | 2,185 | (2,028) | (499) |
Income tax expense (benefit) | 458 | (426) | (105) |
Unrealized gains (losses) recognized in other comprehensive income (loss) on derivative instruments, net of tax | 1,727 | (1,602) | (394) |
Other comprehensive income (loss) | 13,810 | 6,322 | (4,109) |
Comprehensive income | $ 69,962 | $ 52,757 | $ 35,730 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at beginning of period at Dec. 31, 2017 | $ 324,986 | $ (54,054) | $ (5,999) | $ 264,933 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 0 | 39,839 | 0 | 39,839 |
Cash dividends declared | 0 | (14,055) | 0 | (14,055) |
Repurchase of common stock | (12,681) | 0 | 0 | (12,681) |
Acquisition of TCSB Bancorp, Inc. | 64,536 | 0 | 0 | 64,536 |
Issuance of common stock | 267 | 0 | 0 | 267 |
Share based compensation | 1,731 | 0 | 0 | 1,731 |
Share based compensation withholding obligation | (1,467) | 0 | 0 | (1,467) |
Other comprehensive income (loss) | 0 | 0 | (4,109) | (4,109) |
Balances at end of period at Dec. 31, 2018 | 377,372 | (28,270) | (10,108) | 338,994 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 0 | 46,435 | 0 | 46,435 |
Cash dividends declared | 0 | (16,554) | 0 | (16,554) |
Repurchase of common stock | (26,284) | 0 | 0 | (26,284) |
Issuance of common stock | 284 | 0 | 0 | 284 |
Share based compensation | 1,854 | 0 | 0 | 1,854 |
Share based compensation withholding obligation | (882) | 0 | 0 | (882) |
Other comprehensive income (loss) | 0 | 0 | 6,322 | 6,322 |
Balances at end of period at Dec. 31, 2019 | 352,344 | 1,611 | (3,786) | 350,169 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 0 | 56,152 | 0 | 56,152 |
Cash dividends declared | 0 | (17,618) | 0 | (17,618) |
Repurchase of common stock | (14,231) | 0 | 0 | (14,231) |
Issuance of common stock | 15 | 0 | 0 | 15 |
Share based compensation | 1,980 | 0 | 0 | 1,980 |
Share based compensation withholding obligation | (755) | 0 | 0 | (755) |
Other comprehensive income (loss) | 0 | 0 | 13,810 | 13,810 |
Balances at end of period at Dec. 31, 2020 | $ 339,353 | $ 40,145 | $ 10,024 | $ 389,522 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 0.80 | $ 0.72 | $ 0.60 |
Repurchase of shares of common stock (in shares) | 708,956 | 1,204,688 | 587,969 |
Issuance of shares of common stock (in shares) | 17,317 | 71,799 | 152,549 |
Share based compensation, common stock (in shares) | 103,429 | 92,275 | 80,028 |
Share based compensation withholding obligation, common stock (in shares) | 39,633 | 57,468 | 108,185 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | |||
Net Income | $ 56,152 | $ 46,435 | $ 39,839 |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES | |||
Proceeds from the sale of equity securities at fair value | 0 | 560 | 0 |
Proceeds from sales of loans held for sale | 1,478,908 | 642,537 | 463,699 |
Disbursements for loans held for sale | (1,438,982) | (647,606) | (457,077) |
Provision for loan losses | 12,463 | 824 | 1,503 |
Deferred income tax (benefit) expense | (2,130) | 1,088 | 9,294 |
Net deferred loan fees (costs) | 1,686 | (2,936) | (4,044) |
Net depreciation, amortization of intangible assets and premiums and accretion of discounts on securities, loans and interest bearing deposits - time | 9,161 | 6,059 | 6,033 |
Net gains on mortgage loans | (62,560) | (19,978) | (10,597) |
Net gains on securities available for sale | (267) | (307) | (138) |
Net (gains) losses on other real estate and repossessed assets | 64 | (90) | (672) |
Share based compensation | 1,980 | 1,854 | 1,731 |
Increase in accrued income and other assets | (8,477) | (6,573) | (4,890) |
Increase in accrued expenses and other liabilities | 10,175 | 12,113 | 240 |
Total Adjustments | 2,021 | (12,455) | 5,082 |
Net Cash From Operating Activities | 58,173 | 33,980 | 44,921 |
CASH FLOW USED IN INVESTING ACTIVITIES | |||
Proceeds from the sale of securities available for sale | 38,095 | 68,716 | 48,736 |
Proceeds from maturities, prepayments and calls of securities available for sale | 306,691 | 153,938 | 160,627 |
Purchases of securities available for sale | (859,068) | (237,672) | (103,493) |
Proceeds from the sale of interest bearing deposits - time | 0 | 0 | 2,474 |
Proceeds from the maturity of interest bearing deposits - time | 350 | 250 | 3,728 |
Purchase of Federal Home Loan Bank stock | (68) | 0 | 0 |
Purchase of Federal Reserve Bank stock | 0 | 0 | (2,038) |
Net increase in portfolio loans (loans originated, net of principal payments) | (41,861) | (215,276) | (344,330) |
Proceeds from the sale of portfolio loans | 2,395 | 50,516 | 27,658 |
Cash received in the acquisition of TCSB Bancorp Inc. | 0 | 0 | 23,516 |
Proceeds from the collection of vehicle service contract counterparty receivables | 511 | 512 | 511 |
Proceeds from the sale of other real estate and repossessed assets | 1,367 | 1,766 | 2,526 |
Proceeds from bank-owned life insurance | 1,441 | 470 | 474 |
Proceeds from the sale of property and equipment | 1,133 | 74 | 106 |
Capital expenditures | (4,383) | (4,936) | (3,862) |
Net Cash Used in Investing Activities | (553,397) | (181,642) | (183,367) |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Net increase in total deposits | 600,628 | 123,299 | 225,185 |
Net increase (decrease) in other borrowings | (24,994) | 25,002 | (6,600) |
Proceeds from Federal Home Loan Bank advances | 239,254 | 111,000 | 1,272,000 |
Payments of Federal Home Loan Bank advances | (272,910) | (73,143) | (1,308,697) |
Proceeds from issuance of subordinated debt, net of issuance costs | 39,236 | 0 | 0 |
Dividends paid | (17,618) | (16,554) | (14,055) |
Proceeds from issuance of common stock | 15 | 284 | 267 |
Repurchase of common stock | (14,231) | (26,284) | (12,681) |
Share based compensation withholding obligation | (755) | (882) | (1,467) |
Net Cash From Financing Activities | 548,625 | 142,722 | 153,952 |
Net Increase (Decrease) in Cash and Cash Equivalents | 53,401 | (4,940) | 15,506 |
Cash and Cash Equivalents at Beginning of Year | 65,304 | 70,244 | 54,738 |
Cash and Cash Equivalents at End of Year | 118,705 | 65,304 | 70,244 |
Cash paid during the year for | |||
Interest | 16,912 | 26,697 | 16,737 |
Income taxes | 15,500 | 9,534 | 120 |
Operating leases | 1,785 | 2,201 | 0 |
Transfers to other real estate and repossessed assets | 332 | 2,242 | 1,510 |
Transfer of mortgage loans to held for sale | 0 | 36,622 | 41,471 |
Securitization of portfolio loans | 26,324 | 65,070 | 10,869 |
Right of use assets obtained in exchange for lease obligations | 1,587 | 9,906 | 0 |
Purchase of securities available for sale not yet settled | 1,000 | 0 | 0 |
Common stock and stock options issued in TCSB Bancorp, Inc. acquisition | $ 0 | $ 0 | $ 64,536 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTING POLICIES [Abstract] | |
ACCOUNTING POLICIES | NOTE 1 – ACCOUNTING POLICIES The accounting and reporting policies and practices of Independent Bank Corporation and subsidiaries (‘‘IBCP’’) conform to accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Our critical accounting policies include the determination of the allowance for loan losses (‘‘AFLL’’) and the valuation of capitalized mortgage loan servicing rights. We are required to make material estimates and assumptions that are particularly susceptible to changes in the near term as we prepare the consolidated financial statements and report amounts for each of these items. Actual results may vary from these estimates. Our subsidiary, Independent Bank (‘‘Bank’’), transacts business in the single industry of commercial banking. Our Bank’s activities cover traditional phases of commercial banking, including checking and savings accounts, commercial lending, direct and indirect consumer financing and mortgage lending. Our principal markets are the rural and suburban communities across Lower Michigan that are served by our Bank’s branches and loan production offices as well as two loan productions offices we have in Ohio. At December 31, 2020, 67.0% of our Bank’s loan portfolio was secured by real estate. PRINCIPLES OF CONSOLIDATION STATEMENTS OF CASH FLOWS INTEREST BEARING DEPOSITS INTEREST BEARING DEPOSITS - TIME LOANS HELD FOR SALE OPERATING SEGMENTS CAPITALIZED MORTGAGE LOAN SERVICING RIGHTS Mortgage loan servicing income is recorded for fees earned for servicing loans previously sold. The fees are generally based on a contractual percentage of the outstanding principal and are recorded as income when earned. Mortgage loan servicing fees, excluding fair value changes of capitalized mortgage loan servicing rights, totaled $6.9 million, $6.2 million and $5.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Late fees and ancillary fees related to loan servicing are not material. TRANSFERS OF FINANCIAL ASSETS have been isolated from us, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. SECURITIES We evaluate securities for other than temporary impairment (‘‘OTTI’’) at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In performing this evaluation, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis. FEDERAL HOME LOAN BANK (‘‘FHLB’’) STOCK FEDERAL RESERVE BANK (‘‘FRB’’) STOCK LOAN REVENUE RECOGNITION Certain loan fees and direct loan origination costs are deferred and recognized as an adjustment of yield generally over the contractual life of the related loan. Fees received in connection with loan commitments are deferred until the loan is advanced and are then recognized generally over the contractual life of the loan as an adjustment of yield. Fees on commitments that expire unused are recognized at expiration. Fees received for letters of credit are recognized as revenue over the life of the commitment. ALLOWANCE FOR LOAN LOSSES — Portfolios are disaggregated into segments for purposes of determining the allowance for loan losses (‘‘AFLL’’) which include commercial, mortgage and installment loans. These segments are further disaggregated into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial loan segment include (i) commercial and industrial and (ii) commercial real estate. Classes within the mortgage loan segment include (i) 1-4 family owner occupied - jumbo, (ii) 1-4 family owner occupied - non-jumbo, (iii) 1-4 family non-owner occupied (iv) 1-4 family - 2nd lien and (v) resort lending. Classes within the installment loan segment include (i) boat lending, (ii) recreational vehicle lending, and (iii) other. Commercial loans are subject to adverse market conditions which may impact the borrower’s ability to make repayment on the loan or could cause a decline in the value of the collateral that secures the loan. Mortgage and installment loans are subject to adverse employment conditions in the local economy which could increase default rates. In addition, mortgage loans and real estate based installment loans are subject to adverse market conditions which could cause a decline in the value of collateral that secures the loan. For an analysis of the AFLL by portfolio segment and credit quality information by class, see note #4. Some loans will not be repaid in full. Therefore, an AFLL is maintained at a level which represents our best estimate of losses incurred. In determining the AFLL and the related provision for loan losses, we consider four principal elements: (i) specific allocations based upon probable losses identified during the review of the loan portfolio, (ii) allocations established for other adversely rated commercial loans, (iii) allocations based principally on historical loan loss experience, and (iv) additional allocations based on subjective factors, including local and general economic business factors and trends, portfolio concentrations and changes in the size and/or the general terms of the loan portfolios. The first AFLL element (specific allocations) reflects our estimate of probable incurred losses based upon our systematic review of specific loans. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower, discounted collateral exposure and discounted cash flow analysis. Impaired commercial, mortgage and installment loans are allocated AFLL amounts using this first element. The second AFLL element (other adversely rated commercial loans) reflects the application of our loan rating system. This rating system is similar to those employed by state and federal banking regulators. Commercial loans that are rated below a certain predetermined classification are assigned a loss allocation factor for each loan classification category that is based upon a historical analysis of both the probability of default and the expected loss rate (‘‘loss given default’’). The lower the rating assigned to a loan or category, the greater the allocation percentage that is applied. The third AFLL element (historical loss allocations) is determined by assigning allocations to higher rated (‘‘non-watch credit’’) commercial loans using a probability of default and loss given default similar to the second AFLL element and to homogenous mortgage and installment loan groups based upon borrower credit score and portfolio segment. For homogenous mortgage and installment loans a probability of default for each homogenous pool is calculated by way of credit score migration. Historical loss data for each homogenous pool coupled with the associated probability of default is utilized to calculate an expected loss allocation rate. The fourth AFLL element (additional allocations based on subjective factors) is based on factors that cannot be associated with a specific credit or loan category and reflects our attempt to reasonably ensure that the overall AFLL appropriately reflects a margin for the imprecision necessarily inherent in the estimates of expected credit losses. We consider a number of subjective factors when determining this fourth element, including local and general economic business factors and trends, portfolio concentrations and changes in the size, mix and the general terms of the overall loan portfolio. During the first quarter of 2019, we deployed a third-party software solution (we previously used spreadsheet software) to assist in the determination of our AFLL. This new third-party software also has assisted us in moving to the expected loss framework that we plan to adopt on January 1, 2021. Although the use of this new third-party software did not have any material impact on our overall AFLL, it did result in some classification shifts from the AFLL related to subjective factors into the AFLL related to historical losses as the new software model allowed us to capture longer historical look-back periods (previously this was being captured in the subjective portion of the AFLL). Increases in the AFLL are recorded by a provision for loan losses charged to expense. Although we periodically allocate portions of the AFLL to specific loans and loan portfolios, the entire AFLL is available for incurred losses. We generally charge-off commercial, homogenous residential mortgage and installment loans when they are deemed uncollectible or reach a predetermined number of days past due based on loan product, industry practice and other factors. Collection efforts may continue and recoveries may occur after a loan is charged against the AFLL. While we use relevant information to recognize losses on loans, additional provisions for related losses may be necessary based on changes in economic conditions, customer circumstances and other credit risk factors. A loan is impaired when full payment under the loan terms is not expected. Generally, those loans included in each commercial loan class that are rated substandard, classified as non-performing or were classified as non-performing in the preceding quarter, are evaluated for impairment. Those loans included in each mortgage loan or installment loan class whose terms have been modified and considered a troubled debt restructuring are also impaired. Loans which have been modified resulting in a concession, and which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (‘‘TDR’’) and classified as impaired. We measure our investment in an impaired loan based on one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Large groups of smaller balance homogeneous loans, such as those loans included in each installment and mortgage loan class, are collectively evaluated for impairment and accordingly, they are not separately identified for impairment disclosures. TDR loans are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception of the loan. If a TDR is considered to be a collateral dependent loan, the loan is reported net, at the fair value of collateral. A loan can be removed from TDR status if it is subsequently restructured and the borrower is no longer experiencing financial difficulties and the newly restructured agreement does not contain any concessions to the borrower. The new agreement must specify market terms, including a contractual interest rate not less than a market interest rate for a new loan with similar credit risk characteristics, and other terms no less favorable to us than those we would offer for a similar new loan. PROPERTY AND EQUIPMENT BANK OWNED LIFE INSURANCE OTHER REAL ESTATE AND REPOSSESSED ASSETS OTHER INTANGIBLES GOODWILL INCOME TAXES A tax position is recognized as a benefit only if it is ‘‘more likely than not’’ that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. We recognize interest and/or penalties related to income tax matters in income tax expense in the Consolidated Statements of Operations. We file a consolidated federal income tax return. Intercompany tax liabilities are settled as if each subsidiary filed a separate return. COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS At the inception of the derivative we designate the derivative as one of three types based on our intention and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (‘‘Fair Value Hedge’’), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (‘‘Cash Flow Hedge’’), or (3) an instrument with no hedging designation. For a Fair Value Hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in interest income in our Consolidated Statements of Operations . For a Cash Flow Hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For instruments with no hedging designation, the gain or loss on the derivative is reported in earnings. These free standing instruments currently consist of (i) mortgage banking related derivatives and include rate-lock loan commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and mandatory forward commitments for the future delivery of these mortgage loans, (ii) certain pay-fixed and pay-variable interest rate swap agreements related to commercial loan customers and (iii) certain purchased and written options related to a time deposit product. The fair value of rate-lock mortgage loan commitments is based on agency cash window loan pricing for comparable assets and the fair value of mandatory commitments to sell mortgage loans is based on mortgage backed security pricing for comparable assets. We enter into mandatory forward commitments for the future delivery of mortgage loans generally when interest rate locks are entered into in order to hedge the change in interest rates resulting from our commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on mortgage loans in the Consolidated Statements of Operations. Fair values of the pay-fixed and pay-variable interest rate swap agreements are derived from proprietary models which utilize current market data and are included in net interest income in the Consolidated Statements of Operations. Fair values of the purchased and written options are based on prices of financial instruments with similar characteristics and are included in net interest income in the Consolidated Statements of Operations. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest expense in the Consolidated Statements of Operations. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income (mortgage banking related derivatives) or net interest income (interest rate swap agreements and options) in the Consolidated Statements of Operations. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. We formally document the relationship between derivatives and hedged items, as well as the risk- management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking Fair Value or Cash Flow Hedges to specific assets and liabilities on the Consolidated Statements of Financial Condition or to specific firm commitments or forecasted transactions. We discontinue hedge accounting when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded in earnings. When a Fair Value Hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a Cash Flow Hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income (loss) are amortized into earnings over the same periods which the hedged transactions will affect earnings. COMPREHENSIVE INCOME NET INCOME PER COMMON SHARE SHARE BASED COMPENSATION COMMON STOCK RECLASSIFICATION ADOPTION OF NEW ACCOUNTING STANDARDS — Financial Accounting Standards Board (‘‘FASB’’) issued Accounting Standards Update (‘‘ASU’’) measurements, the range and weighted average used to develop significant unobservable inputs and how the weighted average was calculated, with certain exceptions. This amended guidance was effective for us on January 1, 2020, and did not have a material impact on our consolidated operating results or financial condition. In June 2016, the FASB issued ASU 2016-13, Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial . This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU: • Replaces the existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost, which will reflect our estimate of credit losses over the full remaining expected life of the financial assets and will consider expected future changes in macroeconomic conditions. • Eliminates existing guidance for purchase credit impaired loans, and requires recognition of the nonaccretable difference as an increase to the allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination, which will be offset by an increase in the recorded investment of the related loans. • Requires inclusion of expected recoveries, limited to the cumulative amount of prior write-offs, when estimating the allowance for credit losses for in scope financial assets (including collateral dependent assets). • Amends existing impairment guidance for securities available for sale to incorporate an allowance, which will allow for reversals of credit impairments in the event that the credit of an issuer improves. Credit losses on securities available for sale are limited to the amount of the decline in fair value regardless of what the credit loss model would show for impairment. • Generally requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. We began evaluating this ASU in 2016 and established a company-wide, cross-discipline governance structure, which provides implementation oversight. We continued to test and refine our current expected credit loss models that satisfied the requirements of this ASU. Oversight and testing, as well as efforts to meet expanded disclosure requirements, extended through the end of 2020. We currently expect to estimate losses over approximately a forecast period using external economic forecast sources, including the Federal Open Market Committee median economic projections, and then revert to longer term historical loss experience to estimate losses over more extended periods. We expect to recognize a one-time cumulative effect adjustment increasing the allowance for loan losses. We are estimating an increase to the allowance for loan losses to be in the range of $ million to $ million primarily driven by the longer contractual maturities of our mortgage and consumer installment loan portfolio segments. In addition, we currently expect this ASU to increase the allowance for losses related to unfunded loan commitments between $ million and $ million. The ultimate impact of adopting this ASU, and at each subsequent reporting period, is highly dependent on credit quality, economic forecasts and conditions, composition of our loan portfolios and securities available for sale, along with other management judgments. The transition adjustment to record the allowance for credit losses may fall outside of our estimated increase based on the finalization of assumptions including qualitative adjustments and the economic forecast used in calculating the allowance for credit losses upon the adoption of CECL. We do not expect a material allowance for credit losses to be recorded on securities available for sale upon adoption of this ASU. In March 2020, the FASB issued ASU 2020-04, ‘‘Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting’’. This new ASU provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. Entities that make such elections would not have to remeasure contracts at the modification date or reassess a previous accounting determination. Entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. This amended guidance and our ability to elect its temporary optional expedients and exceptions are effective for us as of March 12, 2020 through December 31, 2022. |
RESTRICTIONS ON CASH AND DUE FR
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2020 | |
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract] | |
RESTRICTIONS ON CASH AND DUE FROM BANKS | NOTE 2 – RESTRICTIONS ON CASH AND DUE FROM BANKS During March 2020 the FRB, in response to the COVID-19 pandemic, reduced our Bank’s reserve balance requirements to zero. Prior to that time our Bank was required to maintain reserve balances in the form of vault cash and balances with the FRB. The average reserve balances to be maintained during 2020 and 2019 were $9.2 million and $26.6 million, respectively. We do not maintain compensating balances with correspondent banks. We are also required to maintain reserve balances related to certain mortgage banking related derivatives not classified as hedges and to our merchant payment processing operations and for certain investment security transactions. These balances are held at unrelated financial institutions and totaled $0.74 million and $0.01 million at December 31, 2020 and 2019, respectively. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES [Abstract] | |
SECURITIES | NOTE 3 – SECURITIES Securities available for sale consist of the following at December 31: Amortized Unrealized Cost Gains Losses Fair Value (In thousands) 2020 U.S. agency $ 10,456 $ 305 $ 13 $ 10,748 U.S. agency residential mortgage-backed 340,224 4,951 593 344,582 U.S. agency commercial mortgage-backed 6,869 326 - 7,195 Private label mortgage-backed 41,429 1,539 139 42,829 Other asset backed 252,596 1,796 211 254,181 Obligations of states and political subdivisions 315,795 8,676 178 324,293 Corporate 82,307 3,807 97 86,017 Trust preferred 1,971 - 173 1,798 Foreign government 500 16 - 516 Total $ 1,052,147 $ 21,416 $ 1,404 $ 1,072,159 2019 U.S. agency $ 14,591 $ 89 $ 19 $ 14,661 U.S. agency residential mortgage-backed 226,130 1,910 278 227,762 U.S. agency commercial mortgage-backed 10,671 113 28 10,756 Private label mortgage-backed 39,248 544 99 39,693 Other asset backed 94,158 103 375 93,886 Obligations of states and political subdivisions 94,499 1,724 121 96,102 Corporate 31,904 1,296 5 33,195 Trust preferred 1,968 - 125 1,843 Foreign government 499 3 - 502 Total $ 513,668 $ 5,782 $ 1,050 $ 518,400 At December 31, 2020 we have entered into a pay-fixed interest rate swap to protect a portion of the fair value of certain securities available for sale. The fair value adjustment to securities available for sale was an unrealized loss of $0.015 million at December 31, 2020. See note 16 - Derivative Financial Instruments. Total OTTI recognized in accumulated other comprehensive income (loss) for securities available for sale was zero at both December 31, 2020 and 2019, respectively. Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position, at December 31 follows: Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) 2020 U.S. agency $ 1,469 $ 3 $ 2,329 $ 10 $ 3,798 $ 13 U.S. agency residential mortgage-backed 96,839 592 83 1 96,922 593 Private label mortgage-backed 11,838 95 2,050 44 13,888 139 Other asset backed 7,142 25 21,197 186 28,339 211 Obligations of states and political subdivisions 28,957 177 800 1 29,757 178 Corporate 1,924 97 - - 1,924 97 Trust preferred - - 1,798 173 1,798 173 Total $ 148,169 $ 989 $ 28,257 $ 415 $ 176,426 $ 1,404 2019 U.S. agency $ 2,782 $ 8 $ 2,712 $ 11 $ 5,494 $ 19 U.S. agency residential mortgage-backed 56,377 126 13,551 152 69,928 278 U.S. agency commercial mortgage-backed 3,284 24 659 4 3,943 28 Private label mortgage-backed 16,387 55 343 44 16,730 99 Other asset backed 34,027 233 13,839 142 47,866 375 Obligations of states and political subdivisions 15,666 84 5,396 37 21,062 121 Corporate 2,125 5 - - 2,125 5 Trust preferred - - 1,843 125 1,843 125 Total $ 130,648 $ 535 $ 38,343 $ 515 $ 168,991 $ 1,050 Our portfolio of securities available for sale is reviewed quarterly for impairment in value. In performing this review, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). U.S. agency, U.S. agency residential mortgage-backed securities and U.S. agency commercial mortgage backed securities — at December 31, 2020, we had 25 U.S. agency, and 37 U.S. agency residential mortgage-backed securities whose fair value is less than amortized cost. The unrealized losses are largely attributed to widening spreads to Treasury bond since acquisition. Private label mortgage backed, other asset backed and corporate securities — at December 31, 2020, we had 20 private label mortgage backed, 33 other asset backed and four corporate securities whose fair value is less than amortized cost. Unrealized losses are primarily due to credit spread since their acquisition. Two private label mortgage-backed securities (discussed further below) were reviewed for other than temporary impairment (‘‘OTTI’’) utilizing a cash flow projection. The cash flow analysis forecasts cash flow from the underlying loans in each transaction and then applies these cash flows to the bonds in the securitization. Obligations of states and political subdivisions — at December 31, 2020, we had municipal securities whose fair value is less than amortized cost. The unrealized losses are primarily due to wider benchmark pricing spreads since acquisition. Trust preferred securities — at December 31, 2020, we had trust preferred securities whose fair value is less than amortized cost. Both of our trust preferred securities are single issue securities issued by a trust subsidiary of a bank holding company. The pricing of trust preferred securities has suffered from credit spread widening. of the securities is rated by a major rating agency as investment grade while the other is non-rated. The non-rated issue is a relatively small bank and was never rated. The issuer of this non-rated trust preferred security, which had a total amortized cost of $ million and total fair value of $ million as of December 31, 2020, continues to have satisfactory credit metrics and make interest payments. As management does not intend to liquidate any of the securities discussed above and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines discussed above (other than certain declines related to the two private label mortgage-backed securities currently being reviewed for OTTI) are deemed to be other than temporary. We recorded zero credit related OTTI charges in the Consolidated Statements of Operations on securities available for sale during 2020, 2019, and 2018. At December 31, 2020, two private label mortgage-backed securities had credit related OTTI and are summarized as follows: Senior Security Super Senior Security Total (In thousands) As of December 31, 2020 Fair value $ 373 $ 505 $ 878 Amortized cost 350 326 676 Non-credit unrealized loss - - - Unrealized gain 23 179 202 Cumulative credit related OTTI 757 457 1,214 Both of these securities are receiving principal and interest payments similar to principal reductions in the underlying collateral and have unrealized gains at December 31, 2020. The original amortized cost (current amortized cost excluding cumulative credit related OTTI) for each of these securities has been permanently adjusted downward for previously recorded credit related OTTI. The unrealized loss (based on original amortized cost) for these securities is now less than previously recorded credit related OTTI amounts. A roll forward of credit losses recognized in earnings on securities available for sale for the years ending December 31 follow: 2020 2019 2018 (In thousands) $ 1,214 $ 1,594 $ 1,594 Additions to credit losses on securities for which no previous OTTI was recognized - - - Increases to credit losses on securities for which OTTI was previously recognized - - - Reduction(1) - (380 ) - Total $ 1,214 $ 1,214 $ 1,594 (1) During 2019 one security with previously recorded OTTI was settled and balance is now zero. The amortized cost and fair value of securities available for sale at December 31, 2020, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 21,244 $ 21,412 Maturing after one year but within five years 79,837 82,725 Maturing after five years but within ten years 76,454 80,060 Maturing after ten years 233,494 239,175 411,029 423,372 U.S. agency residential mortgage-backed 340,224 344,582 U.S. agency commercial mortgage-backed 6,869 7,195 Private label mortgage-backed 41,429 42,829 Other asset backed 252,596 254,181 Total $ 1,052,147 $ 1,072,159 The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. A summary of proceeds from the sale of securities available for sale and gains and losses for the years ended December 31 follow: Realized Proceeds Gains (1) Losses (In thousands) 2020 $ 38,095 $ 271 $ 4 2019 68,716 248 108 2018 48,736 192 136 (1) 2018 excludes a $ million gain on the sale of VISA Class B shares. Certain preferred stocks which were all sold during 2019 had been classified as equity securities at fair value in our Consolidated Statement of Financial Condition. During 2019 and 2018, we recognized gains (losses) on these preferred stocks of $0.17 million and $(0.06) million, respectively, that are included in net gains on securities in the Consolidated Statements of Operations. Zero and $(0.06) million of these amounts relate to gains (losses) recognized on preferred stock still held at each respective year end. Securities available for sale with a book value of $14.0 million and $8.7 million at December 31, 2020 and 2019, respectively, were pledged to secure borrowings, derivatives, public deposits and for other purposes as required by law. There were no investment obligations of state and political subdivisions that were payable from or secured by the same source of revenue or taxing authority that exceeded 10% of consolidated total shareholders’ equity at December 31, 2020 or 2019. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2020 | |
LOANS [Abstract] | |
LOANS | NOTE 4 – LOANS Our loan portfolios at December 31 follow: 2020 2019 (In thousands) Real estate (1) Residential first mortgages $ 792,762 $ 843,746 Residential home equity and other junior mortgages 138,128 166,735 Construction and land development 232,693 249,747 Other (2) 669,150 693,580 Consumer 468,090 448,297 Commercial 429,011 318,504 Agricultural 3,844 4,414 Total loans $ 2,733,678 $ 2,725,023 (1) Includes both residential and non-residential commercial loans secured by real estate. (2) Includes loans secured by multi-family residential and non-farm, non-residential property. Loans include net deferred loan costs of $14.6 million and $16.3 million at December 31, 2020 and 2019, respectively. During 2020, we securitized $26.3 million of portfolio residential fixed rate mortgage loans servicing retained with Freddie Mac and recognized a gain on sale of $0.72 million. We also sold $2.4 million of portfolio residential fixed rate mortgage loans servicing retained into the secondary market and recognized a gain on sale of $0.07 million. These transactions were done primarily for asset/liability management purposes. During 2019, we sold $40.6 million of residential adjustable rate mortgage loans servicing released (classified on the Consolidated Statements of Financial Condition as held for sale, carried at the lower of cost or fair value at December 31, 2018) to another financial institution and recognized a gain on sale of $0.01 million. We also securitized $65.1 million of portfolio residential fixed rate mortgage loans servicing retained with Freddie Mac and recognized a gain on sale of $1.7 million. In addition, we sold $9.9 million of residential fixed and adjustable rate portfolio mortgage loans servicing retained to another financial institution and recognized a gain on sale of $0.07 million. These transactions were done primarily for asset/liability management purposes. During 2018, we sold $27.6 million of residential fixed and adjustable rate portfolio mortgage loans servicing retained to another financial institution and recognized a gain on sale of $0.04 million. We also securitized $10.9 million of portfolio residential fixed rate mortgage loans servicing retained with Freddie Mac recognizing a loss on sale of approximately $0.1 million. These transactions were done primarily for asset/liability management purposes. An analysis of the allowance for loan losses by portfolio segment for the years ended December 31 follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) 2020 Balance at beginning of period $ 7,922 $ 8,216 $ 1,283 $ 8,727 $ 26,148 Additions (deductions) Provision for loan losses 1,751 (915 ) 436 11,191 12,463 Recoveries credited to allowance 1,804 513 752 - 3,069 Loans charged against the allowance (4,076 ) (816 ) (1,359 ) - (6,251 ) Balance at end of period $ 7,401 $ 6,998 $ 1,112 $ 19,918 $ 35,429 2019 Balance at beginning of period $7,090 $7,978 $895 $8,925 $24,888 Additions (deductions) Provision for loan losses (651) 526 1,147 (198) 824 Recoveries credited to allowance 2,165 933 863 - 3,961 Loans charged against the allowance (682) (1,221) (1,622) - (3,525) Balance at end of period $7,922 $8,216 $1,283 $8,727 $26,148 2018 Balance at beginning of period $5,595 $8,733 $864 $7,395 $22,587 Additions (deductions) Provision for loan losses (946) 457 462 1,530 1,503 Recoveries credited to allowance 2,889 734 999 - 4,622 Loans charged against the allowance (448) (1,946) (1,430) - (3,824) Balance at end of period $7,090 $7,978 $895 $8,925 $24,888 Allowance for loan losses and recorded investment in loans by portfolio segment at December 31 follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) 2020 Allowance for loan losses: Individually evaluated for impairment $ 1,266 $ 4,124 $ 191 $ - $ 5,581 Collectively evaluated for impairment 6,135 2,874 921 19,918 29,848 Loans acquired with deteriorated credit quality - - - - - Total ending allowance for loan losses balance $ 7,401 $ 6,998 $ 1,112 $ 19,918 $ 35,429 Loans Individually evaluated for impairment $ 9,431 $ 39,245 $ 1,996 $ 50,672 Collectively evaluated for impairment 1,236,052 980,449 474,379 2,690,880 Loans acquired with deteriorated credit quality 468 410 147 1,025 Total loans recorded investment 1,245,951 1,020,104 476,522 2,742,577 Accrued interest included in recorded investment 3,536 4,178 1,185 8,899 Total loans $ 1,242,415 $ 1,015,926 $ 475,337 $ 2,733,678 2019 Allowance for loan losses: Individually evaluated for impairment $1,031 $4,863 $261 $- $6,155 Collectively evaluated for impairment 6,891 3,353 1,022 8,727 19,993 Loans acquired with deteriorated credit quality - - - - - Total ending allowance for loan losses balance $7,922 $8,216 $1,283 $8,727 $26,148 Loans Individually evaluated for impairment $9,393 $43,574 $2,925 $55,892 Collectively evaluated for impairment 1,158,906 1,058,917 457,370 2,675,193 Loans acquired with deteriorated credit quality 1,394 575 316 2,285 Total loans recorded investment 1,169,693 1,103,066 460,611 2,733,370 Accrued interest included in recorded investment 2,998 4,155 1,194 8,347 Total loans $1,166,695 $1,098,911 $459,417 $2,725,023 Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. If these loans had continued to accrue interest in accordance with their original terms, approximately $0.5 million, $0.4 million and $0.4 million of interest income would have been recognized in each of the years ended 2020, 2019 and 2018, respectively. Interest income recorded on these loans was approximately zero during each of the years ended 2020, 2019 and 2018. Loans on non-accrual status and past due more than 90 days (‘‘Non-performing Loans’’) at December 31 follow (1) 90+ and Still Accruing Non- Accrual Total Non- Performing Loans (In thousands) 2020 Commercial Commercial and industrial (2) $ - $ 1,387 $ 1,387 Commercial real estate - - - Mortgage 1-4 family owner occupied - jumbo - 623 623 1-4 family owner occupied - non-jumbo (3) - 2,281 2,281 1-4 family non-owner occupied - 1,112 1,112 1-4 family - 2nd lien - 1,344 1,344 Resort lending - 607 607 Installment Boat lending - 52 52 Recreational vehicle lending - 74 74 Other - 393 393 Total recorded investment $ - $ 7,873 $ 7,873 Accrued interest included in recorded investment $ - $ - $ - 2019 Commercial Commercial and industrial (2) $ - $ 565 $ 565 Commercial real estate - 735 735 Mortgage 1-4 family owner occupied - jumbo - 1,179 1,179 1-4 family owner occupied - non-jumbo (3) - 3,540 3,540 1-4 family non-owner occupied - 1,039 1,039 1-4 family - 2nd lien - 979 979 Resort lending - 690 690 Installment Boat lending - 332 332 Recreational vehicle lending - 3 3 Other - 470 470 Total recorded investment $ - $ 9,532 $ 9,532 Accrued interest included in recorded investment $ - $ - $ - (1) Non-performing loans exclude purchase credit impaired loans. (2) Non-performing commercial and industrial loans exclude $0.053 million and $0.077 million of government guaranteed loans at December 31, 2020 and 2019, respectively. (3) Non-performing 1-4 family owner occupied – non jumbo loans exclude $0.386 million and $0.569 million of government guaranteed loans at December 31, 2020 and 2019, respectively. An aging analysis of loans by class at December 31 follows: Loans Past Due Loans not Total 30-59 days 60-89 days 90+ days Total Past Due Loans (In thousands) 2020 Commercial Commercial and industrial $ 5,003 $ 131 $ 70 $ 5,204 $ 671,115 $ 676,319 Commercial real estate 2,600 - - 2,600 567,032 569,632 Mortgage 1-4 family owner occupied - jumbo 761 - 623 1,384 438,794 440,178 1-4 family owner occupied - non-jumbo 1,888 453 502 2,843 264,730 267,573 1-4 family non-owner occupied 1,184 139 476 1,799 157,977 159,776 1-4 family - 2nd lien 710 228 732 1,670 92,860 94,530 Resort lending 32 195 358 585 57,462 58,047 Installment Boat lending 95 101 - 196 207,317 207,513 Recreational vehicle lending 207 37 48 292 169,282 169,574 Other 337 162 199 698 98,737 99,435 Total recorded investment $ 12,817 $ 1,446 $ 3,008 $ 17,271 $ 2,725,306 $ 2,742,577 Accrued interest included in recorded investment $ 147 $ 22 $ - $ 169 $ 8,730 $ 8,899 2019 Commercial Commercial and industrial $ - $ 289 $ 102 $ 391 $ 564,480 $ 564,871 Commercial real estate 177 - 735 912 603,910 604,822 Mortgage 1-4 family owner occupied - jumbo 1,757 1,037 - 2,794 398,759 401,553 1-4 family owner occupied - non-jumbo 2,672 852 1,387 4,911 342,349 347,260 1-4 family non-owner occupied 695 136 623 1,454 168,083 169,537 1-4 family - 2nd lien 909 90 386 1,385 115,157 116,542 Resort lending 364 53 565 982 67,192 68,174 Installment Boat lending 337 107 88 532 202,750 203,282 Recreational vehicle lending 161 97 3 261 153,184 153,445 Other 377 275 202 854 103,030 103,884 Total recorded investment $ 7,449 $ 2,936 $ 4,091 $ 14,476 $ 2,718,894 $ 2,733,370 Accrued interest included in recorded investment $ 74 $ 34 $ - $ 108 $ 8,239 $ 8,347 Impaired loans are as follows: December 31, 2020 2019 (In thousands) Impaired loans with no allocated allowance for loan losses TDR $ 93 $ 337 Non - TDR 1,367 1,550 Impaired loans with an allocated allowance for loan losses TDR - allowance based on collateral 9,027 1,587 TDR - allowance based on present value cash flow 37,953 48,798 Non - TDR - allowance based on collateral 1,873 3,365 Total impaired loans $ 50,313 $ 55,637 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 1,058 $ 542 TDR - allowance based on present value cash flow 3,755 4,641 Non - TDR - allowance based on collateral 768 972 Total amount of allowance for loan losses allocated $ 5,581 $ 6,155 Impaired loans by class as of December 31 are as follows: 2020 2019 Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses (In thousands) With no related allowance for loan losses recorded: Commercial Commercial and industrial $ 77 $ 80 $ - $ 257 $ 257 $ - Commercial real estate - - - 796 796 - Mortgage 1-4 family owner occupied - jumbo 623 629 - - - - 1-4 family owner occupied - non-jumbo - - - 212 217 - 1-4 family non-owner occupied 305 473 - 214 366 - 1-4 family - 2nd lien 301 304 - 407 438 - Resort lending 154 379 - - - - Installment Boat lending - - - - - - Recreational vehicle lending - - - - - - Other - - - 1 41 - 1,460 1,865 - 1,887 2,115 - 2020 2019 Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses (In thousands) With an allowance for loan losses recorded: Commercial Commercial and industrial 2,227 2,370 756 1,655 1,706 453 Commercial real estate 7,127 7,096 510 6,685 6,661 578 Mortgage 1-4 family owner occupied - jumbo 506 880 50 1,447 1,445 91 1-4 family owner occupied - non-jumbo 21,655 22,311 2,300 10,163 10,695 1,031 1-4 family non-owner occupied 4,335 4,704 495 4,962 5,542 572 1-4 family - 2nd lien 811 829 200 14,059 15,243 1,695 Resort lending 10,555 10,764 1,079 12,110 12,263 1,474 Installment Boat lending 7 11 2 - - - Recreational vehicle lending 87 100 19 - - - Other 1,902 2,040 170 2,924 3,153 261 49,212 51,105 5,581 54,005 56,708 6,155 Total Commercial Commercial and industrial 2,304 2,450 756 1,912 1,963 453 Commercial real estate 7,127 7,096 510 7,481 7,457 578 Mortgage 1-4 family owner occupied - jumbo 1,129 1,509 50 1,447 1,445 91 1-4 family owner occupied - non-jumbo 21,655 22,311 2,300 10,375 10,912 1,031 1-4 family non-owner occupied 4,640 5,177 495 5,176 5,908 572 1-4 family - 2nd lien 1,112 1,133 200 14,466 15,681 1,695 Resort lending 10,709 11,143 1,079 12,110 12,263 1,474 Installment Boat lending 7 11 2 - - - Recreational vehicle lending 87 100 19 - - - Other 1,902 2,040 170 2,925 3,194 261 Total $50,672 $52,970 $5,581 $55,892 $58,823 $6,155 Accrued interest included in recorded investment $359 $255 Average recorded investment in and interest income earned (of which the majority of these amounts were received in cash and related primarily to performing TDR’s) on impaired loans by class for the years ended December 31 follows: 2020 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance for loan losses recorded: Commercial Commercial and industrial $ 125 $ 9 $ 51 $ - $ 378 $ 20 Commercial real estate 159 - 278 5 961 - Mortgage 1-4 family owner occupied - jumbo 408 - - - 41 - 1-4 family owner occupied - non-jumbo 252 4 201 - 15 27 1-4 family non-owner occupied 308 10 123 - - - 1-4 family - 2nd lien 380 - 136 7 - - Resort lending 92 - - - - - Installment Boat lending - - - - - - Recreational vehicle lending - - - - - - Other - - - 1 1 11 1,724 23 789 13 1,396 58 With an allowance for loan losses recorded: Commercial Commercial and industrial 2,230 242 2,256 72 2,641 127 Commercial real estate 10,751 1,043 5,778 315 5,199 288 Mortgage 1-4 family owner occupied - jumbo 1,083 84 995 39 1,335 69 1-4 family owner occupied - non-jumbo 19,624 2,033 15,183 594 28,183 1,408 1-4 family non-owner occupied 4,664 375 2,874 291 5,475 314 1-4 family - 2nd lien 3,376 22 13,383 809 284 12 Resort lending 11,316 799 11,697 669 14,687 606 Installment Boat lending 59 1 54 - 1 - Recreational vehicle lending 81 4 22 - 84 4 Other 2,416 225 3,186 189 3,640 224 55,600 4,828 55,428 2,978 61,529 3,052 Total Commercial Commercial and industrial 2,355 251 2,307 72 3,019 147 Commercial real estate 10,910 1,043 6,056 320 6,160 288 Mortgage 1-4 family owner occupied - jumbo 1,491 84 995 39 1,376 69 1-4 family owner occupied - non-jumbo 19,876 2,037 15,384 594 28,198 1,435 1-4 family non-owner occupied 4,972 385 2,997 291 5,475 314 1-4 family - 2nd lien 3,756 22 13,519 816 284 12 Resort lending 11,408 799 11,697 669 14,687 606 Installment Boat lending 59 1 54 - 1 - Recreational vehicle lending 81 4 22 - 84 4 Other 2,416 225 3,186 190 3,641 235 Total $ 57,324 $ 4,851 $ 56,217 $ 2,991 $ 62,925 $ 3,110 Troubled debt restructurings at December 31 follow: 2020 Commercial Retail (1) Total (In thousands) Performing TDR’s $ 7,956 $ 36,385 $ 44,341 Non-performing TDR’s (2) 1,148 1,584 (3) 2,732 Total $ 9,104 $ 37,969 $ 47,073 2019 Commercial Retail (1) Total (In thousands) Performing TDR’s $ 7,974 $ 39,601 $ 47,575 Non-performing TDR’s (2) 540 2,607 (3) 3,147 Total $ 8,514 $ 42,208 $ 50,722 (1) Retail loans include mortgage and installment loan portfolio segments. (2) Included in non-performing loans table above. (3) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. We have allocated $4.8 million and $5.2 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2020 and 2019, respectively. We have committed to lend additional amounts totaling up to $0.07 million and $0.05 million at December 31, 2020 and 2019, respectively, to customers with outstanding loans that are classified as troubled debt restructurings. The terms of certain loans were modified as troubled debt restructurings and generally included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for a new loan with similar risk; or a permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan have generally been for periods ranging from 9 months to 36 months but have extended to as much as 480 months in certain circumstances. Modifications involving an extension of the maturity date have generally been for periods ranging from 1 month to 60 months but have extended to as much as 230 months in certain circumstances. Loans that have been classified as troubled debt restructurings during the years ended December 31 follow: Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2020 Commercial Commercial and industrial 7 $ 1,207 $ 1,207 Commercial real estate 4 7,012 7,012 Mortgage 1-4 family owner occupied - jumbo - - - 1-4 family owner occupied - non-jumbo 5 357 374 1-4 family non-owner occupied 2 111 116 1-4 family - 2nd lien 2 44 46 Resort lending - - - Installment Boat lending - - - Recreational vehicle lending - - - Other 4 91 93 Total 24 $ 8,822 $ 8,848 Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2019 Commercial Commercial and industrial 8 $1,609 $1,609 Commercial real estate 3 1,479 1,479 Mortgage 1-4 family owner occupied - jumbo - - - 1-4 family owner occupied - non-jumbo 2 478 483 1-4 family non-owner occupied 1 507 505 1-4 family - 2nd lien 3 75 75 Resort lending - - - Installment Boat lending - - - Recreational vehicle lending - - - Other 7 188 191 Total 24 $4,336 $4,342 2018 Commercial Commercial and industrial 7 $652 $652 Commercial real estate 2 204 204 Mortgage 1-4 family owner occupied - jumbo 1 419 419 1-4 family owner occupied - non-jumbo 9 991 994 1-4 family non-owner occupied - - - 1-4 family - 2nd lien - - - Resort lending 1 115 114 Installment Boat lending - - - Recreational vehicle lending - - - Other 14 708 709 Total 34 $3,089 $3,092 The troubled debt restructurings described above increased (decreased) the AFLL by $0.04 million, $0.50 million and $(0.19) million during the years ended December 31, 2020, 2019 and 2018, respectively and resulted in charge offs of zero during each of the years ended December 31, 2020, 2019 and 2018, respectively. Loans that have been classified as troubled debt restructured during the past twelve months and that have subsequently defaulted during the years ended December 31 follows: Number of Contracts Recorded Balance 2020 (Dollars in thousands) Commercial Commercial and industrial - $ - Commercial real estate - - Mortgage 1-4 family owner occupied - jumbo - - 1-4 family owner occupied - non-jumbo - - 1-4 family non-owner occupied - - 1-4 family - 2nd lien - - Resort lending - - Installment Boat lending - - Recreational vehicle lending - - Other - - Total - $ - 2019 Commercial Commercial and industrial 1 $ 19 Commercial real estate - - Mortgage 1-4 family owner occupied - jumbo - - 1-4 family owner occupied - non-jumbo 1 12 1-4 family non-owner occupied - - 1-4 family - 2nd lien - - Resort lending - - Installment Boat lending - - Recreational vehicle lending - - Other - - Total 2 $ 31 2018 Commercial Commercial and industrial - $ - Commercial real estate - - Mortgage 1-4 family owner occupied - jumbo - - 1-4 family owner occupied - non-jumbo - - 1-4 family non-owner occupied - - 1-4 family - 2nd lien - - Resort lending - - Installment Boat lending - - Recreational vehicle lending - - Other 1 13 Total 1 $ 13 A loan is generally considered to be in payment default once it is 90 days contractually past due under the modified terms for commercial loans and installment loans and when four consecutive payments are missed for mortgage loans. The troubled debt restructurings that subsequently defaulted described above increased (decreased) the AFLL by zero during each of the years ended December 31, 2020, 2019 and 2018 and resulted in charge offs of zero during each of the years ended December 31, 2020, 2019 and 2018. The terms of certain other loans were modified during the years ending December 31, 2020, 2019 and 2018 that did not meet the definition of a troubled debt restructuring. The modification of these loans could have included modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. In order to determine whether a borrower is experiencing financial difficulty, we perform an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy. Non-TDR Loan Modifications and Paycheck Protection Program (“PPP”) due to COVID-19 - On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that in consultation with the Financial Accounting Standards Board staff that the federal banking agencies conclude that short-term modifications (e.g. six months or less) made on a good faith basis to borrowers who were current (less than 30 days past due) as of the implementation date of a relief program are not TDRs. In addition, on March 27, 2020, the CARES Act was signed into law . Section 4013 of the CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current (less than 30 days past due) as of December 31, 2019 are not TDRs. We are assisting both commercial and retail (mortgage and installment) borrowers with reduced or suspended payments. Commercial loan accommodations are typically a interest-only period while retail loan (mortgage and installment) forbearances have primarily been payment suspensions for . For loans subject to these forbearance agreements each borrower is required to resume making regularly scheduled loan payments at the end of the forbearance period. The deferred principal and interest will be repaid based upon individualized agreements. Options for repayment include separate repayment plans, extending the term of the loan or re-amortizing the loan based upon the affordability of the payment in relationship to a reduced income. While some borrowers may elect to make a lump sum payment, we anticipate the majority will require some type of repayment plan. During the forbearance period, the loan will not be reported as past due in keeping with the guidance discussed previously. A summary of remaining accommodations that had been entered into under this guidance as of December 31, 2020 follows: Commercial and Retail Loan COVID-19 Accomodations Covid-19 Accomodations Total % of Total Loan Category Loans (#) Loans ($) Loans Loans (Dollars in thousands) Commercial 2 $ 163 $ 1,242,415 0.0 % Mortgage 134 19,830 1,015,926 2.0 % Installment 48 1,412 475,337 0.3 % Total 184 $ 21,405 $ 2,733,678 0.8 % Mortgage loans serviced for others(1) 288 $ 42,897 $ 2,984,088 1.4 % 1) We have delegated authority from all investors to grant these deferrals on their behalf. Information on subsequent accommodation extensions for portfolio loans follows: Commercial and Retail Loan COVID-19 Subsequent Accomodations (1) Loan Category Loans (#) Loans ($) (Dollars in thousands) Commercial 2 $ 163 Mortgage 100 15,004 Installment 35 1,045 Total 137 $ 16,212 (1) Subsequent accommodations are extensions of the original accommodations that were given as summarized in the paragraph above. The CARES Act also included an initial $349 billion loan program administered through the U.S. Small Business Administration (“SBA”) referred to as the PPP. Under the PPP, small businesses and other entities and individuals can apply for loans from existing SBA lenders and other approved regulated lenders that enroll in the program, subject to numerous limitations and eligibility criteria. We are participating as a lender in the PPP. The PPP opened on April 3, 2020 intending to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans through the SBA. In late April 2020 the Paycheck Protection Program and Health Care Enhancement Act, added another $310 billion in funding while the Paycheck Protection Program Flexibility Act made certain changes to the program, by allowing for more time to spend the funds, and making it easier to get a loan fully forgiven. The PPP initially closed on August 8, 2020. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (“Economic Aid Act”) was signed into law which allocates an additional $284 billion in funding for the PPP. The Economic Aid Act reopens the PPP through March 31, 2021 with generally the same terms and conditions as originally enacted under the CARES Act while clarifying eligibility and ineligibility for certain entities and expanding the permitted uses of PPP funds. In addition, the Economic Aid Act simplifies the loan forgiveness process for PPP loans of $150,000 or less. The Economic Aid Act also establishes second draw loans for entities that have already used the initial PPP funds, subject to numerous limitations and eligibility criteria. PPP second draw loans are eligible for forgiveness similar to initial PPP loans, subject to limitations set forth in the Economic Aid Act. As of December 31, 2020, we had initial PPP loans outstanding with a total balance of $ million. PPP loans are included in the commercial and industrial class of the commercial loan portfolio segment. As these loans are 100% guaranteed through the SBA the allowance for loan losses recorded on these loans is . As of December 31, 2020, forgiveness applications had been processed and approved for initial PPP loans totaling $ million (we expect to receive these forgiveness proceeds during the first quarter of 2021). Interest and fees on loans in our consolidated statement of operations includes $ million for the twelve month period of 2020, related to the accretion of net loan fees on initial PPP loans. No such accretion is included in the comparable prior year periods. At December 31, 2020 we had $ million of remaining unaccreted net fees related to initial PPP loans. We had PPP second draw loans outstanding as of December 31, 2020. Credit Quality Indicators For commercial loans, we use a loan rating system that is similar to those employed by state and federal banking regulators. Loans are graded on a scale of 1 to 12. A description of the general characteristics of the ratings follows: Rating 1 through 6 Rating 7 and 8 Rating 9 Rating 10 and 11 Rating 12 The following table summarizes loan ratings by loan class for our commercial loan portfolio segment at December 31: Commercial Non-watch 1-6 Watch 7-8 Substandard Accrual 9 Non- Accrual 10-11 Total (In thousands) 2020 Commercial and industrial $ 637,826 $ 32,765 $ 4,341 $ 1,387 $ 676,319 Commercial real estate 561,382 5,978 2,272 - 569,632 Total $ 1,199,208 $ 38,743 $ 6,613 $ 1,387 $ 1,245,951 Accrued interest included in total $ 3,408 $ 105 $ 23 $ - $ 3,536 2019 Commercial and industrial $ 515,955 $ 44,384 $ 3,967 $ 565 $ 564,871 Commercial real estate 580,516 23,036 535 735 604,822 Total $ 1,096,471 $ 67,420 $ 4,502 $ 1,300 $ 1,169,693 Accrued interest included in total $ 2,763 $ 205 $ 30 $ - $ 2,998 For each of our mortgage and installment portfolio segment classes we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated semi-annually. The following tables summarize credit scores by loan class for our mortgage and installment loan portfolio segments at December 31: Mortgage (1) 1-4 Family Owner Occupied - Jumbo 1-4 Family Owner Occupied - Non-jumbo 1-4 Family Non-owner Occupied 1-4 Family 2nd Lien Resort Lending Total (In thousands) 2020 800 and above $ 61,077 $ 40,187 $ 25,468 $ 12,490 $ 9,546 $ 148,768 _ 223,177 70,642 82,124 42,138 27,530 445,611 _ 101,086 75,489 30,326 22,962 11,726 241,589 _ 40,296 44,344 13,182 11,269 6,393 115,484 _ 11,146 18,519 4,303 2,703 1,670 38,341 _ - 11,021 2,388 1,608 917 15,934 _ 3,396 5,129 1,580 1,012 192 11,309 Under 500 - 2,242 405 348 73 3,068 Unknown - - - - - - Total $ 440,178 $ 267,573 $ 159,776 $ 94,530 $ 58,047 $ 1,020,104 Accrued interest included in total $ 1,301 $ 1,641 $ 587 $ 373 $ 276 $ 4,178 Mortgage (1) 1-4 Family Owner Occupied - Jumbo 1-4 Family Owner Occupied - Non-jumbo 1-4 Family Non-owner Occupied 1-4 Family 2nd Lien Resort Lending Total (In thousands) 2019 800 and above $48,486 $43,848 $24,315 $13,905 $11,076 $141,630 _ 198,491 111,521 84,656 50,012 29,364 474,044 _ 106,609 95,064 34,839 30,697 14,626 281,835 _ 31,553 51,174 13,995 14,267 8,063 119,052 _ 13,230 21,938 5,897 4,097 2,074 47,236 _ 514 12,308 1,863 1,703 673 17,061 _ 1,519 7,940 1,870 1,281 889 13,499 Under 500 641 2,208 533 511 79 3,972 Unknown 510 1,259 1,569 69 1,330 4,737 Total $401,553 $347,260 $169,537 $116,542 $68,174 $1,103,066 Accrued interest included in total $1,139 $1,662 $586 $502 $266 $4,155 (1) Credit scores have been updated within the last twelve months. Installment (1) Boat Lending Recreational Vehicle Lending Other Total (In thousands) 2020 800 and above $ 32,231 $ 29,223 $ 9,154 $ 70,608 _ 123,689 95,890 37,512 257,091 _ 38,223 33,476 25,262 96,961 _ 10,189 8,794 21,138 40,121 _ 2,083 1,305 3,730 7,118 _ 661 551 1,299 2,511 _ 342 283 767 1,392 Under 500 95 52 63 210 Unknown - - 510 510 Total $ 207,513 $ 169,574 $ 99,435 $ 476,522 Accrued interest included in total $ 572 $ 457 $ 156 $ 1,185 2019 800 and above $ 28,041 $ 24,470 $ 7,611 $ 60,122 _ 118,380 88,164 37,583 244,127 _ 41,490 31,055 27,204 99,749 _ 11,485 7,267 22,517 41,269 _ 2,254 1,411 4,470 8,135 _ 946 592 1,884 3,422 _ 377 464 1,127 1,968 Under 500 309 22 284 615 Unknown - - 1,204 1,204 Total $ 203,282 $ 153,445 $ 103,884 $ 460,611 Accrued interest included in total $ 490 $ 378 $ 326 $ 1,194 (1) Credit scores have been updated within the last twelve months. Mortgage loans serviced for others are not reported as assets on the Consolidated Statements of Financial Condition. The principal balances of these loans at December 31 follow: 2020 2019 (In thousands) Mortgage loans serviced for : Fannie Mae $ 1,656,060 $ 1,449,935 Freddie Mac 1,095,877 852,123 Ginnie Mae 181,615 180,941 FHLB 39,294 69,149 Other 11,242 29,018 Total $ 2,984,088 $ 2,581,166 Custodial deposit accounts maintained in connection with mortgage loans serviced for others totaled $ million and $ million, at December 31, 2020 and 2019, respectively. If we do not remain well capitalized for regulatory purposes (see note #20), meet certain minimum capital levels or certain profitability requirements or if we incur a rapid decline in net worth, we could lose our ability to sell and/or service loans to these investors. This could impact our ability to generate net gains on mortgage loans and generate servicing income. A forced liquidation of our servicing portfolio could also impact the value that could be recovered on this asset. Fannie Mae has the most stringent eligibility requirements covering capital levels, profitability and decline in net worth. Fannie Mae requires seller/servicers to be well capitalized for regulatory purposes. For the profitability requirement, we cannot record four or more consecutive quarterly losses and experience a 30% decline in net worth over the same period. Our net worth cannot decline by more than 25% in one quarter or more than 40% over two consecutive quarters. The highest level of capital we are required to maintain is at least $2.5 million plus 0.25% of all loans serviced for others. An analysis of capitalized mortgage loan servicing rights for the years ended December 31 follows: 2020 2019 2018 (In thousands) Balance at beginning of period $ 19,171 $ 21,400 $ 15,699 Originated servicing rights capitalized 13,957 7,303 4,977 Servicing rights acquired - - 3,047 Change in fair value due to price (10,833 ) (6,408 ) 191 Change in fair value due to pay downs (5,391 ) (3,124 ) (2,514 ) Balance at end of year $ 16,904 $ 19,171 $ 21,400 Loans sold and serviced that have had servicing rights capitalized $ 2,982,833 $ 2,580,705 $ 2,333,081 Fair value of capitalized mortgage loan servicing rights was determined using an average coupon rate of 3.77%, average servicing fee of 0.257%, average discount rate of 10.09% and an average Public Securities Association (‘‘PSA’’) prepayment rate of 348 for December 31, 2020; and average coupon rate of 4.22%, average servicing fee of 0.258%, average discount rate of 10.14% and an average PSA prepayment rate of 250 for December 31, 2019. Purchase Credit Impaired (‘‘PCI’’) Loans Loans acquired in a business combination are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan losses. In determining the estimated f |
OTHER REAL ESTATE
OTHER REAL ESTATE | 12 Months Ended |
Dec. 31, 2020 | |
OTHER REAL ESTATE [Abstract] | |
OTHER REAL ESTATE | NOTE 5 – OTHER REAL ESTATE A summary of other real estate activity for the years ended December 31 follows (1) 2020 2019 2018 (In thousands) Balance at beginning of year, net of valuation allowance $ 1,715 $ 1,178 $ 1,628 Loans transferred to other real estate 332 2,242 1,510 Sales of other real estate (1,161 ) (1,438 ) (1,822 ) Additions to valuation allowance charged to expense (148 ) (267 ) (138 ) Balance at end of year, net of valuation allowance $ 738 $ 1,715 $ 1,178 (1) Table excludes other repossessed assets totaling $0.03 million and $0.15 million at December 31, 2020 and 2019, respectively. We periodically review our real estate properties and establish valuation allowances on these properties if values have declined since the date of acquisition. An analysis of our valuation allowance for other real estate follows: 2020 2019 2018 (In thousands) Balance at beginning of year $ 92 $ 144 $ 123 Additions charged to expense 148 267 138 Direct write-downs upon sale (150 ) (319 ) (117 ) Balance at end of year $ 90 $ 92 $ 144 At December 31, 2020 and 2019, the balance of other real estate includes $ million and $ million, respectively of foreclosed residential real estate properties. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $ million and $ million at December 31, 2020 and 2019, respectively. Other real estate and repossessed assets totaling $ million and $ million at December 31, 2020 and 2019, respectively, are presented net of the valuation allowance on the Consolidated Statements of Financial Condition. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 6 – PROPERTY AND EQUIPMENT A summary of property and equipment at December 31 follows: 2020 2019 (In thousands) Land and land improvements $ 17,083 $ 17,478 Buildings 57,208 57,363 Equipment 72,542 71,194 146,833 146,035 Accumulated depreciation and amortization (110,706 ) (107,624 ) Property and equipment, net $ 36,127 $ 38,411 Depreciation expense was $5.3 million, $5.2 million and $5.1 million in 2020, 2019 and 2018, respectively. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLES [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | NOTE 7 – GOODWILL AND OTHER INTANGIBLES Intangible assets, net of amortization, at December 31 follows: 2020 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 11,916 $ 7,610 $ 11,916 $ 6,590 Unamortized intangible assets - goodwill $ 28,300 $ 28,300 At December 31, 2020, the Bank (our reporting unit) had positive equity and we elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the Bank exceeds its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the Bank exceeded its carrying value, resulting in no impairment. Intangible amortization expense was $1.0 million, $1.1 million and $1.0 million during the years ended 2020, 2019 and 2018, respectively. A summary of estimated core deposit intangible amortization at December 31, 2020, follows: (In thousands) 2021 $ 970 2022 785 2023 547 2024 516 2025 487 2026 and thereafter 1,001 Total $ 4,306 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS [Abstract] | |
DEPOSITS | NOTE 8 – DEPOSITS A summary of interest expense on deposits for the years ended December 31 follows: 2020 2019 2018 (In thousands) Savings and interest-bearing checking $ 2,264 $ 5,371 $ 4,146 Reciprocal 2,158 6,024 1,292 Time 7,073 7,148 5,343 Brokered time 1,171 4,882 3,697 Total $ 12,666 $ 23,425 $ 14,478 Aggregate time deposits in denominations of $0.25 million or more amounted to $50.0 million and $71.5 million at December 31, 2020 and 2019, respectively. A summary of the maturity of time deposits at December 31, 2020, follows: (In thousands) 2021 $ 370,497 2022 40,671 2023 16,717 2024 5,072 2025 5,457 2026 and thereafter 603 Total $ 439,017 Reciprocal deposits represent demand, money market and time deposits from our customers that have been placed through IntraFi Network (formerly Promontory Interfinancial Network’s Insured Cash Sweep® service and Certificate of Deposit Account Registry Service®). This service allows our customers to access multi-million dollar FDIC deposit insurance on deposit balances greater than the standard FDIC insurance maximum. A summary of reciprocal deposits at December 31 follows: 2020 2019 (In thousands) Demand $ 515,092 $ 383,953 Money market 3,308 4,416 Time 37,785 42,658 Total $ 556,185 $ 431,027 |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
OTHER BORROWINGS [Abstract] | |
OTHER BORROWINGS | NOTE 9 – OTHER BORROWINGS A summary of other borrowings at December 31 follows: 2020 2019 (In thousands) Advances from the FHLB $ 30,000 $ 63,640 Federal funds purchased - 25,000 Other 12 6 Total $ 30,012 $ 88,646 Advances from the FHLB are secured by unencumbered qualifying mortgage and home equity loans with a market value equal to at least 132% to 165%, respectively, of outstanding advances. Advances are also secured by FHLB stock that we own, which totaled $8.6 million at December 31, 2020. Unused borrowing capacity with the FHLB (subject to the FHLB’s credit requirements and policies) was $772.8 million at December 31, 2020. Interest expense on advances amounted to $0.5 million, $0.7 million and $1.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. No FHLB advances were prepaid during 2020, 2019 or 2018. As a member of the FHLB, we must own FHLB stock equal to the greater of 0.75% of the unpaid principal balance of residential mortgage assets or 4.5% of our outstanding advances. At December 31, 2020, we were in compliance with the FHLB stock ownership requirements. The maturity dates, weighted average interest rates and contractually required repayments of FHLB advances at December 31 follow: 2020 2019 Amount Rate Amount Rate (Dollars in thousands) Fixed-rate advances 2020 $ 28,645 2.19 % 2022 $ - - % 4,995 1.69 2026 and thereafter 30,000 0.74 30,000 0.74 Total advances $ 30,000 0.74 % $ 63,640 1.47 % Borrowings with the FRB at December 31, 2020 and 2019 were zero. Average borrowings with the FRB during the years ended December 31, 2020, 2019 and 2018 totaled $1.546 million, $0.305 million and $0.003 million. We had unused borrowing capacity with the FRB (subject to the FRB’s credit requirements and policies) of $492.0 million at December 31, 2020. Collateral for FRB borrowings are certain commercial and installment loans. Interest expense on federal funds purchased totaled $0.01 million, $0.08 million and $0.10 million for the years ended December 31, 2020, 2019 and 2018, respectively. Assets, consisting of FHLB stock and loans, pledged to secure other borrowings and unused borrowing capacity totaled $1.9 billion at December 31, 2020. |
SUBORDINATED DEBT AND DEBENTURE
SUBORDINATED DEBT AND DEBENTURES | 12 Months Ended |
Dec. 31, 2020 | |
SUBORDINATED DEBT AND DEBENTURES [Abstract] | |
SUBORDINATED DEBT AND DEBENTURES | NOTE 10 – SUBORDINATED DEBT AND DEBENTURES Subordinated Debt In May we issued of fixed to floating subordinated notes with a maturity ( maturity date) and a call option. The initial coupon rate is fixed for and then floats at the Secured Overnight Financing Rate (“SOFR”) plus . These notes are presented in the Consolidated Statement of Financial Condition under the caption “Subordinated debt” and the December balance of is net of remaining unamortized deferred issuance costs of approximately that are being amortized through the maturity date into interest expense on other borrowings and subordinated debt and debentures in our Consolidated Statement of Operations. We may redeem the notes, in whole or in part, on or after May and redeem the notes at any time in whole upon certain other events. Any redemption of the notes will be subject to prior regulatory approval to the extent required. Subordinated Debentures We have formed various special purpose entities (the ‘‘trusts’’) for the purpose of issuing trust preferred securities in either public or pooled offerings or in private placements. Independent Bank Corporation owns all of the common stock of each trust and has issued subordinated debentures to each trust in exchange for all of the proceeds from the issuance of the common stock and the trust preferred securities. Trust preferred securities totaling $ million and $ million at December 31, 2020 and 2019, respectively qualified as Tier 1 regulatory capital. These trusts are not consolidated with Independent Bank Corporation and accordingly, we report the common securities of the trusts held by us in accrued income and other assets and the subordinated debentures that we have issued to the trusts in the liability section of our Consolidated Statements of Financial Condition. As a result of our acquisition of TCSB (see note #26) we acquired TCSB Statutory Trust I as summarized in the tables below at a discount. The discount at acquisition totaled $1.4 million and is being amortized through its maturity date and is included in interest expense – other borrowings and subordinated debt and debentures in the Consolidated Statements of Operations. Summary information regarding subordinated debentures as of December 31 follows: 2020 Entity Name Issue Date Subordinated Debentures Trust Preferred Securities Issued Common Stock Issued (In thousands) IBC Capital Finance III May 2007 $ 12,372 $ 12,000 $ 372 IBC Capital Finance IV September 2007 15,465 15,000 465 Midwest Guaranty Trust I November 2002 7,732 7,500 232 TCSB Statutory Trust I March 2005 5,155 5,000 155 Discount on TCSB Statutory Trust I (1,200 ) (1,200 ) - $ 39,524 $ 38,300 $ 1,224 2019 Entity Name Issue Date Subordinated Debentures Trust Preferred Securities Issued Common Stock Issued (In thousands) IBC Capital Finance III May 2007 $ 12,372 $ 12,000 $ 372 IBC Capital Finance IV September 2007 15,465 15,000 465 Midwest Guaranty Trust I November 2002 7,732 7,500 232 TCSB Statutory Trust I March 2005 5,155 5,000 155 Discount on TCSB Statutory Trust I (1,268 ) (1,268 ) - $ 39,456 $ 38,232 $ 1,224 Other key terms for the subordinated debentures and trust preferred securities that were outstanding at December 31, 2020 and 2019 follow: Entity Name Maturity Date Interest Rate First Permitted Redemption Date IBC Capital Finance III July 30, 2037 3 month LIBOR plus 1.60% July 30, 2012 IBC Capital Finance IV September 15, 2037 3 month LIBOR plus 2.85% September 15, 2012 Midwest Guaranty Trust I November 7, 2032 3 month LIBOR plus 3.45% November 7, 2007 TCSB Statutory Trust I March 17, 2035 3 month LIBOR plus 2.20% March 17, 2010 The subordinated debentures and trust preferred securities are cumulative and have a feature that permits us to defer distributions (payment of interest) from time to time for a period not to exceed 20 consecutive quarters. Interest is payable quarterly on each of the subordinated debentures and trust preferred securities and no distributions were deferred at December 31, 2020 and 2019. We have the right to redeem the subordinated debentures and trust preferred securities (at par) in whole or in part from time to time on or after the first permitted redemption date specified above or upon the occurrence of specific events defined within the trust indenture agreements. Distributions (payment of interest) on the trust preferred securities are included in interest expense – other borrowings and subordinated debt and debentures in the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 11 – COMMITMENTS AND CONTINGENT LIABILITIES In the normal course of business, we enter into financial instruments with off-balance sheet risk to meet the financing needs of customers or to reduce exposure to fluctuations in interest rates. These financial instruments may include commitments to extend credit and standby letters of credit. Financial instruments involve varying degrees of credit and interest-rate risk in excess of amounts reflected in the Consolidated Statements of Financial Condition. Exposure to credit risk in the event of non-performance by the counterparties to the financial instruments for loan commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. A summary of financial instruments with off-balance sheet risk at December 31 follows: 2020 2019 (In thousands) Financial instruments whose risk is represented by contract amounts Commitments to extend credit $ 644,815 $ 582,457 Standby letters of credit 9,361 7,207 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and generally require payment of a fee. Since commitments may expire without being drawn upon, the commitment amounts do not represent future cash requirements. Commitments are issued subject to similar underwriting standards, including collateral requirements, as are generally involved in the extension of credit facilities. Standby letters of credit are written conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in such transactions is essentially the same as that involved in extending loan facilities and, accordingly, standby letters of credit are issued subject to similar underwriting standards, including collateral requirements, as are generally involved in the extension of credit facilities. The majority of the standby letters of credit are on-demand with no stated maturity date and have variable rates that range from 2.50% to 12.00%. COVID- Pandemic On March the World Health Organization declared COVID- the disease caused by the novel coronavirus, a pandemic as a result of the global spread of the coronavirus illness. In response to the outbreak, federal and state authorities in the U.S. introduced various measures to try to limit or slow the spread of the virus, including travel restrictions, nonessential business closures, stay-at-home orders, and strict social distancing. The degree to which businesses may resume operations varies based on the type of business operations being conducted. It is currently expected that various forms of state and local government restrictions similar to those described above will continue for the foreseeable future. As a result of these events, Michigan has experienced a significant increase in unemployment. The COVID- pandemic, the related executive orders, and other government restrictions and guidance have had and continue to have a significant effect on us, our customers and the markets we serve. Our business, results of operations and financial condition may be adversely affected by a number of factors that could impact us and our customers, including but not limited to: • restrictions on activity and high levels of unemployment may cause increases in loan delinquencies, foreclosures and defaults; • increases in allowance for loan losses may be necessary; • declines in collateral values may occur; • third party disruptions, including outages at network providers, on-line banking vendors and other suppliers; • increased cyber and payment fraud risk, as cybercriminals attempt to profit from the disruption, given increased online and remote activity; • operational failures due to changes in our normal business practices necessitated by the pandemic and related governmental actions; and/or • key personnel or significant numbers of our employees being unable to work effectively, including because of illness or restrictions in connection with COVID- These factors may continue for a significant period of time. The spread of COVID- has caused us to modify many of our business practices. We have also expanded sick and vacation time for certain employees. We may take further actions as may be required or as we determine to be prudent. There is no certainty that such measures will be sufficient to mitigate the risks posed by COVID- The extent to which the COVID- pandemic will impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. Those developments and factors include the duration and spread of the pandemic, its severity, the actions to contain the pandemic or address its impact, and how quickly and to what extent normal economic and operating conditions can resume. We do not yet know the full extent of the impact. However, the effects could have a material adverse impact on our business, financial condition and results of operations. Material adverse impacts may include valuation impairments on our intangible assets, securities available for sale, loans, capitalized mortgage loan servicing rights and deferred tax assets. Litigation We are involved in various litigation matters in the ordinary course of business. At the present time, we do not believe any of these matters will have a significant impact on our consolidated financial position or results of operations. The aggregate amount we have accrued for losses we consider probable as a result of these litigation matters is immaterial. However, because of the inherent uncertainty of outcomes from any litigation matter, we believe it is reasonably possible we may incur losses in addition to the amounts we have accrued. At this time, we estimate the maximum amount of additional losses that are reasonably possible is insignificant. However, because of a number of factors, including the fact that certain of these litigation matters are still in their early stages, this maximum amount may change in the future. The litigation matters described in the preceding paragraph primarily include claims that have been brought against us for damages, but do not include litigation matters where we seek to collect amounts owed to us by third parties (such as litigation initiated to collect delinquent loans). These excluded, collection-related matters may involve claims or counterclaims by the opposing party or parties, but we have excluded such matters from the disclosure contained in the preceding paragraph in all cases where we believe the possibility of us paying damages to any opposing party is remote. Loss Reimbursement Obligations The provision for loss reimbursement on sold loans represents our estimate of incurred losses related to mortgage loans that we have sold to investors (primarily Fannie Mae, Freddie Mac, Ginnie Mae and the FHLB). Since we sell mortgage loans without recourse, loss reimbursements only occur in those instances where we have breached a representation or warranty or other contractual requirement related to the loan sale. The provision for loss reimbursement on sold loans was an expense of $ million, $ million and $ million for the years ended December 31, 2020, 2019 and 2018, respectively. The reserve for loss reimbursements on sold mortgage loans totaled $ million and $ million at December 31, 2020 and 2019, respectively. This reserve is included in accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. This reserve is based on an analysis of mortgage loans that we have sold which are further categorized by delinquency status, loan to value, and year of origination. The calculation includes factors such as probability of default, probability of loss reimbursement (breach of representation or warranty) and estimated loss severity. We believe that the amounts that we have accrued for incurred losses on sold mortgage loans are appropriate given our analyses. However, future losses could exceed our current estimate. Visa Stock We own 12,566 shares of VISA Class B common stock. At the present time, these shares can only be sold to other Class B shareholders. As a result, there has generally been limited transfer activity in private transactions between buyers and sellers. Given the limited activity that we have become aware of and the continuing uncertainty regarding the likelihood, ultimate timing and eventual exchange rate for Class B shares into Class A shares, we continue to carry these shares at zero, representing cost basis less impairment. However, given the current conversion ratio of 1.6228 Class A shares for every 1 Class B share and the closing price of VISA Class A shares on February 26, 2021 of $212.39 per share, our 12,566 Class B shares would have a current “value” of approximately $4.3 million. We continue to monitor Class B trading activity and the status of the resolution of certain litigation matters at VISA that would trigger the conversion of Class B common shares into Class A common shares, which would not have any trading restrictions. |
SHAREHOLDERS' EQUITY AND INCOME
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2020 | |
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE [Abstract] | |
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE | NOTE 12 – SHAREHOLDERS’ EQUITY AND INCOME PER COMMON SHARE Our Board of Directors authorized share repurchase plans to buy back up during 2020, 2019 and 2018 A reconciliation of basic and diluted net income per common share for the years ended December 31 follows: 2020 2019 2018 (In thousands, except per share amounts) Net income $ 56,152 $ 46,435 $ 39,839 Weighted average shares outstanding (1) 21,977 22,894 23,412 Stock units for deferred compensation plan for non-employee directors 121 132 128 Effect of stock options 90 115 176 Performance share units 33 42 53 Weighted average shares outstanding for calculation of diluted earnings per share 22,221 23,183 23,769 Net income per common share Basic (1) $ 2.56 $ 2.03 $ 1.70 Diluted $ 2.53 $ 2.00 $ 1.68 (1) Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. Weighted average stock options outstanding that were not considered in computing diluted net income per common share because they were anti-dilutive were zero for each year ended 2020, 2019 and 2018, respectively. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAX [Abstract] | |
INCOME TAX | NOTE 13 – INCOME TAX The composition of income tax expense for the years ended December 31 follows: 2020 2019 2018 (In thousands) Current expense $ 15,459 $ 10,237 $ - Deferred expense (benefit) (2,130 ) 1,088 9,294 Income tax expense $ 13,329 $ 11,325 $ 9,294 T he deferred income tax benefit of $ million in 2020 can be primarily attributed to the increase in our allowance for loan losses while the deferred income tax expense of $ million during 2019 can be primarily attributed to the utilization of our net operating loss (‘‘NOL’’) carryfoward and alternative minimum tax credit carryforward while the deferred income tax expense of $ million during 2018 can be primarily attributed to the utilization of our NOL carryfoward A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate of for o the income before income tax for the years ended December 31 follows: 2020 2019 2018 (In thousands) Statutory rate applied to income before income tax $ 14,591 $ 12,130 $ 10,318 Tax-exempt income (690 ) (375 ) (383 ) Unrecognized tax benefit (206 ) (134 ) (162 ) Share-based compensation (204 ) (204 ) (367 ) Bank owned life insurance (196 ) (233 ) (229 ) Non-deductible meals, entertainment and memberships 57 86 85 Other, net (23 ) 55 32 Income tax expense $ 13,329 $ 11,325 $ 9,294 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow: 2020 2019 (In thousands) Deferred tax assets Allowance for loan losses $ 7,363 $ 5,355 Lease liabilities 1,652 1,744 Property and equipment 1,047 1,528 Share-based compensation 742 808 Reserve for unfunded lending commitments 379 324 Deferred compensation 321 285 Loss reimbursement on sold loans reserve 214 185 Non accrual loan interest income 203 173 Other than temporary impairment charge on securities available for sale 144 147 Vehicle service contract counterparty contingency reserve 26 38 Unrealized loss on derivative financial instruments - 459 Gross deferred tax assets 12,091 11,046 Deferred tax liabilities Capitalized mortgage loan servicing rights 3,550 4,026 Deferred loan fees 1,901 1,852 Lease right of use asset 1,606 1,739 Unrealized gain on securities available for sale 4,206 994 Purchase premiums, net 509 293 Federal Home Loan Bank stock 27 27 Other 17 43 Gross deferred tax liabilities 11,816 8,974 Deferred tax assets, net $ 275 $ 2,072 We assess whether a valuation allowance should be established against our deferred tax assets based on the consideration of all available evidence using a ‘‘more likely than not’’ standard. The ultimate realization of this asset is primarily based on generating future income. We concluded at both December 31, 2020 and 2019, that the realization of substantially all of our deferred tax assets continues to be more likely than not. Changes in unrecognized tax benefits for the years ended December 31 follow: 2020 2019 2018 (In thousands) Balance at beginning of year $ 438 $ 588 $ 724 Additions based on tax positions related to the current year 15 20 26 Reductions due to the statute of limitations (273 ) (170 ) (162 ) Reductions due to settlements - - - Balance at end of year $ 180 $ 438 $ 588 If recognized, the entire amount of unrecognized tax benefits, net of $ million of federal tax on state benefits, would affect our effective tax rate. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. amounts were expensed for interest and penalties for the years ended December 31, , and . amounts were accrued for interest and penalties at December 31, , and . At December 31, , U.S. Federal tax years 2017 through the present remain open to examination. |
SHARE BASED COMPENSATION AND BE
SHARE BASED COMPENSATION AND BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
SHARE BASED COMPENSATION AND BENEFIT PLANS [Abstract] | |
SHARE BASED COMPENSATION AND BENEFIT PLANS | NOTE 14 – SHARE BASED COMPENSATION AND BENEFIT PLANS We maintain share based payment plans that include a non-employee director stock purchase plan and a long-term incentive plan that permits the issuance of share based compensation, including stock options and non-vested share awards. The long-term incentive plan, which is shareholder approved, permits the grant of additional share based awards for up to 0.4 million shares of common stock as of December 31, 2020. The non-employee director stock purchase plan permits the grant of additional share based payments for up to 0.1 million shares of common stock as of December 31, 2020. Share based awards and payments are measured at fair value at the date of grant and are expensed over the requisite service period. Common shares issued upon exercise of stock options come from currently authorized but unissued shares. During , and pursuant to our long-term incentive plan, we granted million, million and million shares, respectively of restricted stock and million during each year of performance stock units (‘‘PSUs’’), to certain officers. Except for million shares and million shares of restricted stock issued in 2019 and 2018, respectively that vest ratably over , all shares of restricted stock and PSUs cliff vest after a period of . The performance feature of the PSUs is based on a comparison of our total shareholder return over the vesting period starting on the grant date to the total shareholder return over that period for a banking index of our peers. We have not issued stock options since 2013, other than in connection with the Merger (see note #26). Our directors may elect to receive all or a portion of their cash retainer fees in the form of common stock (either on a current basis or on a deferred basis) pursuant to the non-employee director stock purchase plan referenced above. Shares equal in value to that portion of each director’s fees that he or she has elected to receive in stock on a current basis are issued each quarter and vest immediately. Shares issued on a deferred basis are credited at the rate of 90% of the current fair value of our common stock and vest immediately. We issued million, million and million shares to directors pursuant to this plan during the years ending respectively Total compensation expense recognized for grants pursuant to our long-term incentive plan was $1.6 million, $1.6 million and $1.5 million in 2020, 2019 and 2018, respectively. The corresponding tax benefit relating to this expense was $0.3 million during each year At December 31, 2020, the total expected compensation cost related to non-vested restricted stock and PSUs not yet recognized was $1.7 million. The weighted-average period over which this amount will be recognized is 1.7 years. A summary of outstanding stock option grants and related transactions follows: Number of Shares Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregated Intrinsic Value (In thousands) Outstanding at January 1,2020 138,506 $ 4.62 Granted - Exercised (17,317 ) 3.27 Forfeited - Expired - Outstanding at December 31, 2020 121,189 $ 4.81 2.1 $ 1,658 Vested and expected to vest at December 31, 2020 121,189 $ 4.81 2.1 $ 1,658 Exercisable at December 31, 2020 121,189 $ 4.81 2.1 $ 1,658 A summary of outstanding non-vested stock and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2020 245,726 $ 21.72 Granted 76,893 22.46 Vested (94,342 ) 19.96 Forfeited (21,160 ) 22.63 Outstanding at December 31, 2020 207,117 $ 22.70 Certain information regarding options exercised during the periods ending December 31 follows: 2020 2019 2018 (In thousands) Intrinsic value $ 293 $ 897 $ 2,333 Cash proceeds received $ 57 $ 706 $ 1,420 Tax benefit realized $ 61 $ 188 $ 490 We maintain 401(k) and employee stock ownership plans covering substantially all of our full-time employees. We matched 50% of employee contributions to the 401(k) plan up to a maximum of 8% of participating employees’ eligible wages for , and Our employees participate in various performance-based compensation plans. Amounts expensed for all incentive plans totaled $15.7 million, $9.5 million and $9.8 million in 2020, 2019 and 2018, respectively. We also provide certain health care and life insurance programs to substantially all full-time employees. Amounts expensed for these programs totaled $4.8 million, $5.7 million and $5.2 million in 2020, 2019 and 2018 respectively. These insurance programs are also available to retired employees at their own expense. |
OTHER NON-INTEREST INCOME
OTHER NON-INTEREST INCOME | 12 Months Ended |
Dec. 31, 2020 | |
OTHER NON-INTEREST INCOME [Abstract] | |
OTHER NON-INTEREST INCOME | NOTE 15 – OTHER NON-INTEREST INCOME Other non-interest income for the years ended December 31 follows: 2020 2019 2018 (In thousands) Investment and insurance commissions $ 1,971 $ 1,658 $ 1,971 ATM fees 1,197 1,403 1,457 Bank owned life insurance 910 1,111 970 Other 3,443 5,110 4,362 Total other non-interest income $ 7,521 $ 9,282 $ 8,760 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 16 – DERIVATIVE FINANCIAL INSTRUMENTS We are required to record derivatives on our Consolidated Statements of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting. Our derivative financial instruments according to the type of hedge in which they are designated at December 31 follow: 2020 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) Fair value hedge designation Pay-fixed interest rate swap agreements - commercial $ 7,088 8.4 $ (776 ) Pay-fixed interest rate swap agreements - securities available for sale 41,950 7.1 15 Total $ 49,038 7.3 $ (761 ) No hedge designation Rate-lock mortgage loan commitments $ 168,816 0.1 $ 7,020 Mandatory commitments to sell mortgage loans 186,092 0.1 (941 ) Pay-fixed interest rate swap agreements - commercial 147,456 4.5 (9,700 ) Pay-variable interest rate swap agreements - commercial 147,456 4.5 9,700 Pay-fixed interest rate swap agreements 25,000 0.6 (295 ) Interest rate cap agreements 135,000 1.8 5 Purchased options 2,908 0.5 42 Written options 2,848 0.5 (42 ) Total $ 815,576 2.0 $ 5,789 2019 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) Fair value hedge designation - Pay-fixed interest rate swap agreements $ 7,117 9.4 $ (242 ) Cash flow hedge designation Pay-fixed interest rate swap agreements $ 25,000 1.6 $ (174 ) Interest rate cap agreements 150,000 2.6 214 Total $ 175,000 2.5 $ 40 No hedge designation Rate-lock mortgage loan commitments $ 49,268 0.1 $ 1,412 Mandatory commitments to sell mortgage loans 95,363 0.1 (150 ) Pay-fixed interest rate swap agreements - commercial 153,946 5.5 (3,641 ) Pay-variable interest rate swap agreements - commercial 153,946 5.5 3,641 Purchased options 2,908 1.5 141 Written options 2,848 1.5 (139 ) Total $ 458,279 3.7 $ 1,264 We have established management objectives and strategies that include interest-rate risk parameters for maximum fluctuations in net interest income and market value of portfolio equity. We monitor our interest rate risk position via simulation modeling reports. The goal of our asset/liability management efforts is to maintain profitable financial leverage within established risk parameters. To meet our asset/liability management objectives, we may periodically enter into derivative financial instruments to mitigate exposure to fluctuations in cash flows resulting from changes in interest rates (‘‘Cash Flow Hedges’’). Cash Flow Hedges included certain pay-fixed interest rate swaps and interest rate cap agreements. Pay-fixed interest rate swaps convert the variable-rate cash flows on debt obligations to fixed-rates. Under interest-rate cap agreements, we will receive cash if interest rates rise above a predetermined level. As a result, we effectively have variable-rate debt with an established maximum rate. We paid an upfront premium on interest rate caps which was recognized in earnings in the same period in which the hedged item affected earnings. During the and quarters of we transferred all of our Cash Flow Hedge interest rate cap agreements and pay-fixed interest rate swaps, respectively to a no hedge designation. The and unrealized loss on our Cash Flow Hedge interest rate cap agreements and pay-fixed interest rate swaps, respectively which were included as a component of accumulated other comprehensive income (loss) at the time of the transfers were being reclassified into earnings over the remaining life of the interest rate cap agreements and pay-fixed interest rate swap agreements. In the quarter of it became probable that the forecasted transactions being hedged by these interest rate cap agreements and pay-fixed interest rate swap agreements would not occur by the end of the originally specified time period. As a result, all remaining unrealized losses included as a component of accumulated other comprehensive income (loss) were reclassified into earnings. The interest rate cap agreements and pay-fixed interest rate swaps are now classified as a no hedge designation at December and any changes in fair value since the transfers to the no hedge designation are recorded in earnings. We have entered into a pay-fixed interest rate swap to protect a portion of the fair value of a certain fixed rate commercial loan (‘‘Fair Value Hedge – Commercial Loan’’). As a result, changes in the fair value of the pay-fixed interest rate swap is expected to offset changes in the fair value of the fixed rate commercial loan due to fluctuations in interest rates. We record the fair value of Fair Value Hedge – Commercial Loan in accrued income and other assets and accrued expenses and other liabilities on our Consolidated Statements of Financial Condition. The hedged item (fixed rate commercial loan) is also recorded at fair value which offsets the adjustment to the Fair Value Hedge – Commercial Loan. On an ongoing basis, we adjust our Consolidated Statements of Financial Condition to reflect the then current fair value of both the Fair Value Hedge – Commercial Loan and the hedged item. The related gains or losses are reported in interest income – interest and fees on loans in our Consolidated Statements of Operations. During we entered into pay-fixed interest rate swaps to protect a portion of the fair value of certain securities available for sale (‘‘Fair Value Hedge – AFS Securities’’). As a result, the change in the fair value of the pay-fixed interest rate swaps is expected to offset a portion of the change in the fair value of the fixed rate securities available for sale due to fluctuations in interest rates. We record the fair value of Fair Value Hedge – AFS Securities in accrued income and other assets and accrued expenses and other liabilities on our Consolidated Statements of Financial Condition. The hedged item (fixed rate securities available for sale) is also recorded at fair value which offsets the adjustment to the Fair Value Hedge – AFS Securities. On an ongoing basis, we adjust our Consolidated Statements of Financial Condition to reflect the then current fair value of both the Fair Value Hedge – AFS Securities and the hedged item. The related gains or losses are reported in interest income – interest on securities available for sale – tax-exempt in our Consolidated Statements of Operations. Certain derivative financial instruments have not been designated as hedges. The fair value of these derivative financial instruments has been recorded on our Consolidated Statements of Financial Condition and is adjusted on an ongoing basis to reflect their then current fair value. The changes in fair value of derivative financial instruments not designated as hedges are recognized in earnings. In the ordinary course of business, we enter into rate-lock mortgage loan commitments with customers (‘‘Rate-Lock Commitments’’). These commitments expose us to interest rate risk. We also enter into mandatory commitments to sell mortgage loans (‘‘Mandatory Commitments’’) to reduce the impact of price fluctuations of mortgage loans held for sale and Rate-Lock Commitments. Mandatory Commitments help protect our loan sale profit margin from fluctuations in interest rates. The changes in the fair value of Rate Lock Commitments and Mandatory Commitments are recognized currently as part of net gains on mortgage loans in the Consolidated Statements of Operations. We obtain market prices on Mandatory Commitments and Rate-Lock Commitments. Net gains on mortgage loans, as well as net income, may be more volatile as a result of these derivative instruments, which are not designated as hedges. In prior periods we offered to our deposit customers an equity linked time deposit product (‘‘Altitude CD’’). The Altitude CD was a time deposit that provided the customer a guaranteed return of principal at maturity plus a potential equity return (a written option), while we receive a like stream of funds based on the equity return (a purchased option). The written and purchased options will generally move in opposite directions resulting in little or no net impact on our Consolidated Statements of Operations. All of the written and purchased options in the table above relate to this Altitude CD product. We have a program that allows commercial loan customers to lock in a fixed rate for a longer period of time than we would normally offer for interest rate risk reasons. We will enter into a variable rate commercial loan and an interest rate swap agreement with a customer and then enter into an offsetting interest rate swap agreement with an unrelated party. The interest rate swap agreement fair values will generally move in opposite directions resulting in little or no net impact on our Consolidated Statements of Operations. All of the interest rate swap agreements-commercial with no hedge designation in the table above relate to this program. The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Consolidated Statements of Financial Condition for the periods presented: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives December 31, December 31, 2020 2019 2020 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments - - - - Pay-fixed interest rate swap agreements Other assets $ 15 Other assets $ - Other liabilities $ 776 Other liabilities $ 416 Interest rate cap agreements Other assets - Other assets 214 Other liabilities - Other liabilities - 15 214 776 416 Derivatives not designated as hedging instruments Rate-lock mortgage loan commitments Other assets 7,020 Other assets 1,412 Other liabilities $ - Other liabilities - Mandatory commitments to sell mortgage loans Other assets - Other assets - Other liabilities 941 Other liabilities 150 Pay-fixed interest rate swap agreements - commercial Other assets - Other assets 28 Other liabilities 9,700 Other liabilities 3,669 Pay-variable interest rate swap agreements - commercial Other assets 9,700 Other assets 3,669 Other liabilities - Other liabilities 28 Pay-fixed interest rate swap agreements Other assets - Other assets - Other liabilities 295 Other liabilities - Interest rate cap agreements Other assets 5 Other assets - Other liabilities - Other liabilities - Purchased options Other assets 42 Other assets 141 Other liabilities - Other liabilities - Written options Other assets - Other assets - Other liabilities 42 Other liabilities 139 16,767 5,250 10,978 3,986 Total derivatives $ 16,782 $ 5,464 $ 11,754 $ 4,402 The effect of derivative financial instruments on the Consolidated Statements of Operations follows: Year Ended December 31, Gain (loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) Location Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) Location of Gain (Loss) Recognized in Income(1) Gain (Loss) Recognized in Income(1) 2020 2019 2018 2020 2019 2018 2020 2019 2018 (In thousands) Fair Value Hedges Pay-fixed interest rate swap ageement - Commercial loan Interest and fees on loans $ (534 ) $ (242 ) $ - Pay-fixed interest rate swap agreements - Securities available for sale Interest on securities available for sale - tax-exempt 15 - - Total $ (519 ) $ (242 ) $ - Cash Flow Hedges Interest rate cap agreements $ 125 $ (1,211 ) $ (340 ) Interest expense $ (1,885 ) $ 363 $ 206 Interest expense $ - $ - $ - Pay-fixed interest rate swap agreements (479 ) (392 ) 78 Interest expense (654 ) 62 31 Interest expense - - (12 ) Total $ (354 ) $ (1,603 ) $ (262 ) $ (2,539 ) $ 425 $ 237 $ - $ - $ (12 ) No hedge designation Rate-lock mortgage loan commitments Net gains on mortgage loans $ 5,608 $ 725 $ 157 Mandatory commitments to sell mortgage loans Net gains on mortgage loans (791 ) 233 (420 ) Pay-fixed interest rate swap agreements - commercial Interest income (6,059 ) (4,046 ) 113 Pay-variable interest rate swap agreements -commercial Interest income 6,059 4,046 (113 ) Pay-fixed interest rate swap agreements Interest expense 231 - - Interest rate cap agreements Interest expense (57 ) - - Purchased options Interest expense (99 ) 25 (206 ) Written options Interest expense 97 (23 ) 206 Total $ 4,989 $ 960 $ (263 ) (1) For cash flow hedges, this location and amount refers to the ineffective portion. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 17 – RELATED PARTY TRANSACTIONS Certain of our directors and executive officers, including companies in which they are officers or have significant ownership, were loan and deposit customers during 2020 and 2019. A summary of loans to our directors and executive officers (which includes loans to entities in which the individual owns a 10% or more voting interest) for the years ended December 31 follows: 2020 2019 (In thousands) Balance at beginning of year $ 13,077 $ 14,205 New loans and advances 417 713 Repayments (11,078 ) (1,841 ) Balance at end of year $ 2,416 $ 13,077 Deposits held by us for directors and executive officers totaled $ million at both December 31, and . |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
LEASES [Abstract] | |
LEASES | NOTE 18 – LEASES We have entered into leases in the normal course of business primarily for office facilities, some of which include renewal options and escalation clauses. Certain leases also include both lease components (fixed payments including rent, taxes and insurance costs) and non-lease components (common area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components together for all leases. We have also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on our Consolidated Statements of Financial Condition . Most of our leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion and are included in our right of use (“ROU”) assets and lease liabilities if they are reasonably certain of exercise. Leases are classified as operating or finance leases at the lease commencement date (we did not have any finance leases as of December 31, 2020). Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. The ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payment over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The cost components of our operating leases follows: 2020 2019 (In thousands) Operating lease cost $ 1,780 $ 2,217 Variable lease cost 69 142 Short-term lease cost 36 19 Total $ 1,885 $ 2,378 Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities. Supplemental balance sheet information related to our operating leases follows: 2020 2019 (In thousands) Lease right of use asset (1) $ 7,646 $ 8,282 Lease liabilities (2) $ 7,868 $ 8,304 Weighted average remaining lease term (years) 7.12 7.47 Weighted average discount rate 2.4 % 2.8 % (1) Included in Accrued income and other assets (2) Included in Accrued expenses and other liabilities Maturity analysis of our lease liabilities at December 31, 2020 based on required contractual payments follows: (In thousands) 2021 $ 1,669 2022 1,489 2023 1,222 2024 815 2025 809 2026 and thereafter 2,525 Total lease payments 8,529 Less imputed interest (661 ) Total $ 7,868 |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2020 | |
CONCENTRATIONS OF CREDIT RISK [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | NOTE 19 – CONCENTRATIONS OF CREDIT RISK Credit risk is the risk to earnings and capital arising from an obligor’s failure to meet the terms of any contract with our organization or otherwise failing to perform as agreed. Credit risk can occur outside of our traditional lending activities and can exist in any activity where success depends on counterparty, issuer or borrower performance. Concentrations of credit risk (whether on- or off-balance sheet) arising from financial instruments can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries or certain geographic regions. Credit risk associated with these concentrations could arise when a significant amount of loans or other financial instruments, related by similar characteristics, are simultaneously impacted by changes in economic or other conditions that cause their probability of repayment or other type of settlement to be adversely affected. Our major concentrations of credit risk arise by collateral type and by industry. The significant concentrations by collateral type at December 31, , include $ million of loans secured by residential real estate and $ million of construction and development loans. Additionally, within our commercial real estate and commercial loan portfolio, we had significant standard industry classification concentrations in the following categories as of December 31, 2020: Lessors of Nonresidential Real Estate ($301.8 million); Lessors of Residential Real Estate ($119.6 million); Construction ($130.4 million); Manufacturing ($99.4 million); Accommodation and Food Services ($99.1 million) and Health Care and Social Assistance ($87.2 million). A geographic concentration arises because we primarily conduct our lending activities in the State of Michigan. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
REGULATORY MATTERS [Abstract] | |
REGULATORY MATTERS | NOTE 20 – REGULATORY MATTERS Capital guidelines adopted by federal and state regulatory agencies and restrictions imposed by law limit the amount of cash dividends our Bank can pay to us. Under these guidelines, the amount of dividends that may be paid in any calendar year is limited to the Bank’s current year net profits, combined with the retained net profits of the preceding two years. Further, the Bank cannot pay a dividend at any time that it has negative undivided profits. As of December 31, 2020, the Bank had positive undivided profits of $77.8 million. It is not our intent to have dividends paid in amounts that would reduce the capital of our Bank to levels below those which we consider prudent or that would not be in accordance with guidelines of regulatory authorities. We are also subject to various regulatory capital requirements. The prompt corrective action regulations establish quantitative measures to ensure capital adequacy and require minimum amounts and ratios of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. Failure to meet minimum capital requirements can result in certain mandatory, and possibly discretionary, actions by regulators that could have a material effect on our consolidated financial statements. In addition, capital adequacy rules include a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets that applies to all supervised financial institutions. To avoid limits on capital distributions and certain discretionary bonus payments we must meet the minimum ratio for adequately capitalized institutions plus the buffer. Under capital adequacy guidelines, we must meet specific capital requirements that involve quantitative measures as well as qualitative judgments by the regulators. The most recent regulatory filings as of December 31, 2020 and 2019, categorized our Bank as well capitalized. Management is not aware of any conditions or events that would have changed the most recent Federal Deposit Insurance Corporation (‘‘FDIC’’) categorization. Our actual capital amounts and ratios at December 31 follow (1) Actual Minimum for Adequately Capitalized Institutions Minimum for Well-Capitalized Institutions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) 2020 Total capital to risk-weighted assets Consolidated $ 455,072 15.95 % $ 228,214 8.00 % NA NA Independent Bank 401,005 14.06 228,111 8.00 $ 285,139 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 379,395 13.30 % $ 171,161 6.00 % NA NA Independent Bank 365,343 12.81 171,083 6.00 $ 228,111 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 341,095 11.96 % $ 128,370 4.50 % NA NA Independent Bank 365,343 12.81 128,312 4.50 $ 185,340 6.50 % Tier 1 capital to average assets Consolidated $ 379,395 9.15 % $ 165,825 4.00 % NA NA Independent Bank 365,343 8.81 165,828 4.00 $ 207,285 5.00 % 2019 Total capital to risk-weighted assets Consolidated $ 380,454 13.74 % $ 221,562 8.00 % NA NA Independent Bank 358,914 12.96 221,482 8.00 $ 276,852 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 352,764 12.74 % $ 166,171 6.00 % NA NA Independent Bank 331,224 11.96 166,111 6.00 $ 221,482 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 314,532 11.36 % $ 124,628 4.50 % NA NA Independent Bank 331,224 11.96 124,583 4.50 $ 179,954 6.50 % Tier 1 capital to average assets Consolidated $ 352,764 10.11 % $ 139,632 4.00 % NA NA Independent Bank 331,224 9.49 139,615 4.00 $ 174,519 5.00 % (1) These ratios do not reflect a capital conservation buffer of 2.50% at December 31, 2020 and 2019. NA - Not applicable The components of our regulatory capital are as follows: Consolidated Independent Bank December 31, December 31, 2020 2019 2020 2019 (In thousands) Total shareholders’ equity $ 389,522 $ 350,169 $ 413,770 $ 366,861 Add (deduct) Accumulated other comprehensive loss for regulatory purposes (15,821 ) (2,011 ) (15,821 ) (2,011 ) Goodwill and other intangibles (32,606 ) (33,626 ) (32,606 ) (33,626 ) Common equity tier 1 capital 341,095 314,532 365,343 331,224 Qualifying trust preferred securities 38,300 38,232 - - Tier 1 capital 379,395 352,764 365,343 331,224 Subordinated debt 40,000 - - - Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 35,677 27,690 35,662 27,690 Total risk-based capital $ 455,072 $ 380,454 $ 401,005 $ 358,914 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE DISCLOSURES [Abstract] | |
FAIR VALUE DISCLOSURES | NOTE 21 – FAIR VALUE DISCLOSURES FASB ASC topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets. Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. We used the following methods and significant assumptions to estimate fair value: Securities : Where quoted market prices are available in an active market, securities available for sale are classified as Level 1 of the valuation hierarchy. We currently do not have any Level 1 securities. If quoted market prices are not available for the specific security, then fair values are estimated by (1) using quoted market prices of securities with similar characteristics, (2) matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices, or (3) a discounted cash flow analysis whose significant fair value inputs can generally be verified and do not typically involve judgment by management. These securities are classified as Level 2 of the valuation hierarchy and primarily include agency securities, private label mortgage-backed securities, other asset backed securities, obligations of states and political subdivisions , trust preferred securities, corporate securities and foreign government securities. Loans held for sale Impaired loans with specific loss allocations based on collateral value Other real estate Appraisals for both collateral-dependent impaired loans and other real estate are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by us. Once received, an independent third party, or a member of our Collateral Evaluation Department (for commercial properties), or a member of our Special Assets/ORE Group (for residential properties) reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. We compare the actual selling price of collateral that has been sold to the most recent appraised value of our properties to determine what additional adjustment, if any, should be made to the appraisal value to arrive at fair value. For commercial and residential properties we typically discount an appraisal to account for various factors that the appraisal excludes in its assumptions. These additional discounts generally do not result in material adjustments to the appraised value. Capitalized mortgage loan servicing rights Derivatives Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows: Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2020: Measured at Fair Value on a Recurring Basis Assets Securities available for sale U.S. agency $ 10,748 $ - $ 10,748 $ - U.S. agency residential mortgage-backed 344,582 - 344,582 - U.S. agency commercial mortgage-backed 7,195 - 7,195 - Private label mortgage-backed 42,829 - 42,829 - Other asset backed 254,181 - 254,181 - Obligations of states and political subdivisions 324,293 - 324,293 - Corporate 86,017 - 86,017 - Trust preferred 1,798 - 1,798 - Foreign government 516 - 516 - Loans held for sale, carried at fair value 92,434 - 92,434 - Capitalized mortgage loan servicing rights 16,904 - - 16,904 Derivatives (1) 16,782 - 16,782 - Liabilities Derivatives (2) 11,754 - 11,754 - Measured at Fair Value on a Non-recurring Basis: Assets Impaired loans (3) Commercial Commercial and industrial 1,468 - - 1,468 Commercial real estate 6,586 - - 6,586 Mortgage 1-4 family owner occupied - jumbo - - - - 1-4 family owner occupied - non-jumbo 321 - - 321 1-4 family non-owner occupied 155 - - 155 1-4 family - 2nd lien 324 - - 324 Resort lending 61 - - 61 Installment Boat lending 4 - - 4 Recreational vehicle lending 31 - - 31 Other 124 - - 124 Other real estate (4) 1-4 family owner occupied - non-jumbo 102 - - 102 (1) Included in accrued income and other assets in the Consolidated Statements of Financial Condition. (2) Included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2019: Measured at Fair Value on a Recurring Basis Assets Securities available for sale U.S. agency $ 14,661 $ - $ 14,661 $ - U.S. agency residential mortgage-backed 227,762 - 227,762 - U.S. agency commercial mortgage-backed 10,756 - 10,756 - Private label mortgage-backed 39,693 - 39,693 - Other asset backed 93,886 - 93,886 - Obligations of states and political subdivisions 96,102 - 96,102 - Corporate 33,195 - 33,195 - Trust preferred 1,843 - 1,843 - Foreign government 502 - 502 - Loans held for sale, carried at fair value 69,800 - 69,800 - Capitalized mortgage loan servicing rights 19,171 - - 19,171 Derivatives (1) 5,464 - 5,464 - Liabilities Derivatives (2) 4,402 - 4,402 - Measured at Fair Value on a Non-recurring Basis: Assets Impaired loans (3) Commercial Commercial and industrial 655 - - 655 Commercial real estate 316 - - 316 Mortgage 1-4 family owner occupied - jumbo 987 - - 987 1-4 family owner occupied - non-jumbo 470 - - 470 1-4 family non-owner occupied 281 - - 281 1-4 family - 2nd lien 294 - - 294 Resort lending 245 - - 245 Installment Boat lending 67 - - 67 Recreational vehicle lending 2 - - 2 Other 121 - - 121 Other real estate (4) Mortgage 1-4 family owner occupied - non-jumbo 31 - - 31 Installment - other 28 - - 28 (1) Included in accrued income and other assets in the Consolidated Statements of Financial Condition. (2) Included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. Changes in fair values of financial assets for which we have elected the fair value option for the years ended December 31 were as follows: Net Gains (Losses) on Assets Total Change in Fair Values Included Securities Available For Sale Mortgage Loans Mortgage Loan Servicing, net in Current Period Earnings (In thousands) 2020 Loans held for sale $ - $ 1,962 $ - $ 1,962 Capitalized mortgage loan servicing rights - - (16,224 ) (16,224 ) 2019 Equity securities at fair value $ 167 $ - $ - $ 167 Loans held for sale - 637 - 637 Capitalized mortgage loan servicing rights - - (9,532 ) (9,532 ) 2018 Trading securities $ (62 ) $ - $ - $ (62 ) Loans held for sale - 413 - 413 Capitalized mortgage loan servicing rights - - (2,323 ) (2,323 ) For those items measured at fair value pursuant to our election of the fair value option, interest income is recorded within the Consolidated Statements of Operations based on the contractual amount of interest income earned on these financial assets and dividend income is recorded based on cash dividends received. The following represent impairment charges recognized during the years ended December 31, 2020, 2019 and 2018 relating to assets measured at fair value on a non-recurring basis: • Loans which are measured for impairment using the fair value of collateral for collateral dependent loans had a carrying amount of $ million, which is net of a valuation allowance of $ million at December 31, , and had a carrying amount of $ million, which is net of a valuation allowance of $ million at December 31, . An additional provision for loan losses relating to these impaired loans of $ million, $ million and $ million was included in our results of operations for the years ending December 31, , and , respectively. • Other real estate, which is measured using the fair value of the property, had a carrying amount of $ million which is net of a valuation allowance of $ million at December 31, , and a carrying amount of $ million which is net of a valuation allowance of $ million, at December 31, . An additional charge relating to other real estate measured at fair value of $ million, $ million and $ million was included in our results of operations during the years ended December 31, , and , respectively. A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31 follows: Capitalized Mortgage Loan Servicing Rights 2020 2019 2018 (In thousands) Beginning balance $ 19,171 $ 21,400 $ 15,699 Total losses realized and unrealized: Included in results of operations (16,224 ) (9,532 ) (2,323 ) Included in other comprehensive income (loss) - - - Purchases, issuances, settlements, maturities and calls 13,957 7,303 8,024 Transfers in and/or out of Level 3 - - - Ending balance $ 16,904 $ 19,171 $ 21,400 Amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets and liabilities still held at December 31 $ (16,224 ) $ (9,532 ) $ (2,323 ) The fair value of our capitalized mortgage loan servicing rights has been determined based on a valuation model used by an independent third party as discussed above. The significant unobservable inputs used in the fair value measurement of the capitalized mortgage loan servicing rights are discount rate, cost to service, ancillary income, float rate and prepayment rate. Significant changes in all five of these assumptions in isolation would result in significant changes to the value of our capitalized mortgage loan servicing rights. Quantitative information about our Level 3 fair value measurements measured on a recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Range Weighted Average (In thousands) - - - - 2020 Capitalized mortgage loan servicing rights $ 16,904 Present value of net Discount rate 10.00% to 13.00% 10.09 % servicing revenue Cost to service $ 69 to $289 $ 79 Ancillary income 20 to 37 22 Float rate 0.43 % 0.43 % Prepayment rate 7.92% to 64.70% 20.85 2019 Capitalized mortgage loan servicing rights $ 19,171 Present value of net Discount rate 10.00% to 13.00% 10.14 % servicing revenue Cost to service $ 66 to $316 $ 81 Ancillary income 20 to 37 22 Float rate 1.73 % 1.73 % Prepayment rate 7.01% to 69.34% 14.96 Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Range Weighted Average (In thousands) - - - - 2020 Impaired loans Commercial $ 8,054 Sales comparison Adjustment for differences approach between comparable sales (40.0)% to 75.0% 3.8 % Mortgage and Installment (1) 1,020 Sales comparison Adjustment for differences approach between comparable sales (73.3) to 104.6 (1.5 ) Other real estate Mortgage 102 Sales comparison Adjustment for differences approach between comparable sales (13.1) to 2.4 (3.6 ) 2019 Impaired loans Commercial $ 971 Sales comparison Adjustment for differences approach between comparable sales (48.0)% to 19.2% (5.6 )% Mortgage and Installment (1) 2,467 Sales comparison Adjustment for differences approach between comparable sales (25.2) to 49.2 11.5 Other real estate Mortgage and Installment 59 Sales comparison Adjustment for differences approach between comparable sales (11.6) to 5.0 (5.1 ) (1) In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2020 and 2019 certain impaired collateral dependent installment loans totaling approximately $0.16 million and $0.14 million are secured by collateral other than real estate. For the majority of these loans, we apply internal discount rates to industry valuation guides. The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected at December 31: Aggregate Fair Value Difference Contractual Principal (In thousands) Loans held for sale 2020 $ 92,434 $ 3,856 $ 88,578 2019 69,800 1,894 67,906 2018 44,753 1,257 43,496 |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | NOTE 22 – FAIR VALUES OF FINANCIAL INSTRUMENTS Most of our assets and liabilities are considered financial instruments. Many of these financial instruments lack an available trading market and it is our general practice and intent to hold the majority of our financial instruments to maturity. Significant estimates and assumptions were used to determine the fair value of financial instruments. These estimates are subjective in nature, involving uncertainties and matters of judgment, and therefore, fair values may not be a precise estimate. Changes in assumptions could significantly affect the estimates. Estimated fair values have been determined using available data and methodologies that are considered suitable for each category of financial instrument. For instruments with adjustable interest rates which reprice frequently and without significant credit risk, it is presumed that estimated fair values approximate the recorded book balances. The estimated recorded book balances and fair values at December 31 follow: Fair Value Using Recorded Book Balance Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) 2020 Assets Cash and due from banks $ 56,006 $ 56,006 $ 56,006 $ - $ - Interest bearing deposits 62,699 62,699 62,699 - - Securities available for sale 1,072,159 1,072,159 - 1,072,159 - Federal Home Loan Bank and Federal Reserve Bank Stock 18,427 NA NA NA NA Net loans and loans held for sale 2,790,683 2,794,058 - 92,434 2,701,624 Accrued interest receivable 12,315 12,315 3 3,414 8,898 Derivative financial instruments 16,782 16,782 - 16,782 - Liabilities Deposits with no stated maturity (1) $ 3,198,338 $ 3,198,338 $ 3,198,338 $ - $ - Deposits with stated maturity (1) 439,017 441,457 - 441,457 - Other borrowings 30,012 30,844 - 30,844 - Subordinated debt 39,281 41,417 - 41,417 - Subordinated debentures 39,524 30,265 - 30,265 - Accrued interest payable 601 601 59 542 - Derivative financial instruments 11,754 11,754 - 11,754 - 2019 Assets Cash and due from banks $ 53,295 $ 53,295 $ 53,295 $ - $ - Interest bearing deposits 12,009 12,009 12,009 - - Interest bearing deposits - time 350 350 - 350 - Securities available for sale 518,400 518,400 - 518,400 - Federal Home Loan Bank and Federal Reserve Bank Stock 18,359 NA NA NA NA Net loans and loans held for sale 2,768,675 2,768,817 - 69,800 2,699,017 Accrued interest receivable 10,108 10,108 8 1,752 8,348 Derivative financial instruments 5,464 5,464 - 5,464 - Liabilities Deposits with no stated maturity (1) $ 2,427,190 $ 2,427,190 $ 2,427,190 $ - $ - Deposits with stated maturity (1) 609,537 610,235 - 610,235 - Other borrowings 88,646 88,680 - 88,680 - Subordinated debentures 39,456 33,149 - 33,149 - Accrued interest payable 1,296 1,296 97 1,199 - Derivative financial instruments 4,402 4,402 - 4,402 - NA – Not applicable (1) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $ million and $ million at December 31, 2020 and 2019, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $ million and $ million at December 31, 2020 and 2019, respectively. The fair values for commitments to extend credit and standby letters of credit are estimated to approximate their aggregate book balance, which is nominal, and therefore are not disclosed. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the entire holdings of a particular financial instrument. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, the value of future earnings attributable to off-balance sheet activities and the value of assets and liabilities that are not considered financial instruments. Fair value estimates for deposit accounts do not include the value of the core deposit intangible asset resulting from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 23 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) A summary of changes in accumulated other comprehensive income (loss) (‘‘AOCIL’’), net of tax during the years ended December 31 follows: Unrealized Gains (Losses) on Securities Available for Sale Dispropor- tionate Tax Effects from Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Total (In thousands) 2020 Balances at beginning of period $ 3,739 $ (5,798 ) $ (1,727 ) $ (3,786 ) Other comprehensive income (loss) before reclassifications 12,294 - (279 ) 12,015 Amounts reclassified from AOCIL (211 ) - 2,006 1,795 Net current period other comprehensive income 12,083 - 1,727 13,810 Balances at end of period $ 15,822 $ (5,798 ) $ - $ 10,024 2019 Balances at beginning of period $ (4,185 ) $ (5,798 ) $ (125 ) $ (10,108 ) Other comprehensive income (loss) before reclassifications 8,035 - (1,266 ) 6,769 Amounts reclassified from AOCIL (111 ) - (336 ) (447 ) Net current period other comprehensive income (loss) 7,924 - (1,602 ) 6,322 Balances at end of period $ 3,739 $ (5,798 ) $ (1,727 ) $ (3,786 ) 2018 Balances at beginning of period $ (470 ) $ (5,798 ) $ 269 $ (5,999 ) Other comprehensive loss before reclassifications (3,671 ) - (207 ) (3,878 ) Amounts reclassified from AOCIL (44 ) - (187 ) (231 ) Net current period other comprehensive loss (3,715 ) - (394 ) (4,109 ) Balances at end of period $ (4,185 ) $ (5,798 ) $ (125 ) $ (10,108 ) The disproportionate tax effects from securities available for sale arose primarily due to tax effects of other comprehensive income (‘‘OCI’’) in the presence of a valuation allowance against our deferred tax assets and a pretax loss from operations. Generally, the amount of income tax expense or benefit allocated to operations is determined without regard to the tax effects of other categories of income or loss, such as OCI. However, an exception to the general rule is provided when, in the presence of a valuation allowance against deferred tax assets, there is a pretax loss from operations and pretax income from other categories in the current period. In such instances, income from other categories must offset the current loss from operations, the tax benefit of such offset being reflected in operations. Release of material disproportionate tax effects from other comprehensive income to earnings is done by the portfolio method whereby the effects will remain in AOCIL as long as we carry a more than inconsequential portfolio of securities available for sale. A summary of reclassifications out of each component of AOCIL for the years ended December 31 follows: AOCIL Component Reclassified From AOCIL Affected Line Item in Consolidated Statements of Operations (In thousands) 2020 Unrealized gains (losses) on securities available for sale $ 267 Net gains on securities - Net impairment loss recognized in earnings 267 Total reclassifications before tax 56 Income tax expense $ 211 Reclassifications, net of tax Unrealized gains (losses) on cash flow hedges $ 2,539 Interest expense 533 Income tax expense $ 2,006 Reclassification, net of tax $ (1,795 ) Total reclassifications for the period, net of tax 2019 Unrealized gains (losses) on securities available for sale $ 140 Net gains on securities - Net impairment loss recognized in earnings 140 Total reclassifications before tax 29 Income tax expense $ 111 Reclassifications, net of tax Unrealized gains (losses) on cash flow hedges $ (425 ) Interest expense (89 ) Income tax expense $ (336 ) Reclassification, net of tax $ 447 Total reclassifications for the period, net of tax 2018 Unrealized gains (losses) on securities available for sale $ 56 Net gains on securities - Net impairment loss recognized in earnings 56 Total reclassifications before tax 12 Income tax expense $ 44 Reclassifications, net of tax Unrealized gains (losses) on cash flow hedges $ (237 ) Interest expense (50 ) Income tax expense $ (187 ) Reclassification, net of tax $ 231 Total reclassifications for the period, net of tax |
INDEPENDENT BANK CORPORATION (P
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION [Abstract] | |
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION | NOTE 24 – INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION Presented below are condensed financial statements for our parent company. CONDENSED STATEMENTS OF FINANCIAL CONDITION December 31, 2020 2019 (In thousands) ASSETS Cash and due from banks $ 10,466 $ 10,505 Interest bearing deposits - time 40,000 10,000 Investment in subsidiaries 418,465 369,861 Accrued income and other assets 805 463 Total Assets $ 469,736 $ 390,829 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debt $ 39,281 $ - Subordinated debentures 39,524 39,456 Accrued expenses and other liabilities 684 575 Shareholders’ equity 390,247 350,798 Total Liabilities and Shareholders’ Equity $ 469,736 $ 390,829 CONDENSED STATEMENTS OF OPERATIONS Year Ended December 31, 2020 2019 2018 (In thousands) OPERATING INCOME Dividends from subsidiary $ 24,000 $ 29,000 $ 33,500 Interest income 99 230 160 Other income 42 61 56 Total Operating Income 24,141 29,291 33,716 OPERATING EXPENSES Interest expense 2,893 2,104 1,924 Administrative and other expenses 733 655 748 Total Operating Expenses 3,626 2,759 2,672 Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries 20,515 26,532 31,044 Income tax benefit (937 ) (423 ) (515 ) Income Before Equity in Undistributed Net Income of Subsidiaries 21,452 26,955 31,559 Equity in undistributed net income of subsidiaries 34,700 19,480 8,280 Net Income $ 56,152 $ 46,435 $ 39,839 CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2020 2019 2018 (In thousands) Net Income $ 56,152 $ 46,435 $ 39,839 ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES Deferred income tax (benefit) expense (34 ) 1,503 6,620 Share based compensation 89 65 53 Accretion of discount on subordinated debt and debentures 113 68 51 (Increase) decrease in accrued income and other assets (307 ) 891 (1,307 ) Increase in accrued expenses and other liabilities 109 45 21 Equity in undistributed net income of subsidiaries (34,700 ) (19,480 ) (8,280 ) Total Adjustments (34,730 ) (16,908 ) (2,842 ) Net Cash From Operating Activities 21,422 29,527 36,997 CASH FLOW FROM (USED IN) INVESTING ACTIVITIES Purchases of interest bearing deposits - time (85,000 ) (20,000 ) (30,000 ) Maturity of interest bearing deposits - time 55,000 35,000 10,000 Acquisition of business, less cash received - - 431 Net Cash From (Used In) Investing Activities (30,000 ) 15,000 (19,569 ) CASH FLOW FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of subordinated debt, net of issuance costs 39,236 - - Dividends paid (17,618 ) (16,554 ) (14,055 ) Proceeds from issuance of common stock 1,907 2,074 1,945 Share based compensation withholding obligation (755 ) (882 ) (1,467 ) Repurchase of common stock (14,231 ) (26,284 ) (12,681 ) Net Cash From (Used In) Financing Activities 8,539 (41,646 ) (26,258 ) Net Increase (Decrease) in Cash and Cash Equivalents (39 ) 2,881 (8,830 ) Cash and Cash Equivalents at Beginning of Year 10,505 7,624 16,454 Cash and Cash Equivalents at End of Year $ 10,466 $ 10,505 $ 7,624 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 25 – REVENUE FROM CONTRACTS WITH CUSTOMERS We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. We derive the majority of our revenue from financial instruments and their related contractual rights and obligations which for the most part are excluded from the scope of this topic. These sources of revenue that are excluded from the scope of this topic include interest income, net gains on mortgage loans, net gains on securities, mortgage loan servicing, net and bank owned life insurance and were approximately and of total revenues at December 31, 2020 and 2019, respectively. Material sources of revenue that are included in the scope of ASC Topic 606 include service charges on deposits, other deposit related income, interchange income and investment and insurance commissions and are discussed in the following paragraphs. Generally these sources of revenue are earned at the time the service is delivered or over the course of a monthly period and do not result in any contract asset or liability balance at any given period end. As a result, there were no contract assets or liabilities recorded as of December 31, 2020. Service charges on deposit accounts and other deposit related income : Revenues are earned on depository accounts for commercial and retail customers and include fees for transaction-based, account maintenance and overdraft services. Transaction-based fees, which includes services such as ATM use fees, stop payment charges and ACH fees are recognized at the time the transaction is executed as that is the time we fulfill our customer’s request. Account maintenance fees, which includes monthly maintenance services are earned over the course of a month representing the period over which the performance obligation is satisfied. Our obligation for overdraft services is satisfied at the time of the overdraft. Interchange income: Investment and insurance commissions: Net gains on other real estate and repossessed assets Disaggregation of our revenue sources by attribute for the years ended December 31 follow: 2020 Service Charges on Deposit Accounts Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 5,627 $ - $ - $ - $ 5,627 Account service charges 2,017 - - - 2,017 ATM fees - 1,173 - - 1,173 Other - 769 - - 769 Business Overdraft fees 873 - - - 873 ATM fees - 24 - - 24 Other - 342 - - 342 Interchange income - - 11,230 - 11,230 Asset management revenue - - - 1,283 1,283 Transaction based revenue - - - 688 688 Total $ 8,517 $ 2,308 $ 11,230 $ 1,971 $ 24,026 Reconciliation to Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 2,308 Investment and insurance commissions 1,971 Bank owned life insurance 910 Other 2,332 Total $ 7,521 2019 Service Charges on Deposit Accounts Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 7,590 $ - $ - $ - $ 7,590 Account service charges 2,103 - - - 2,103 ATM fees - 1,368 - - 1,368 Other - 965 - - 965 Business Overdraft fees 1,515 - - - 1,515 ATM fees - 35 - - 35 Other - 422 - - 422 Interchange income - - 10,297 - 10,297 Asset management revenue - - - 1,123 1,123 Transaction based revenue - - - 535 535 Total $ 11,208 $ 2,790 $ 10,297 $ 1,658 $ 25,953 Reconciliation to Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 2,790 Investment and insurance commissions 1,658 Bank owned life insurance 1,111 Other 3,723 Total $ 9,282 2018 Service Charges on Deposit Accounts Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 8,285 $ - $ - $ - $ 8,285 Account service charges 2,406 - - - 2,406 ATM fees - 1,423 - - 1,423 Other - 941 - - 941 Business Overdraft fees 1,567 - - - 1,567 ATM fees - 34 - 34 Other - 594 - 594 Interchange income - - 9,905 - 9,905 Asset management revenue - - - 1,100 1,100 Transaction based revenue - - - 871 871 Total $ 12,258 $ 2,992 $ 9,905 $ 1,971 $ 27,126 Reconciliation to Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 2,992 Investment and insurance commissions 1,971 Bank owned life insurance 970 Other 2,827 Total $ 8,760 |
RECENT ACQUISITION
RECENT ACQUISITION | 12 Months Ended |
Dec. 31, 2020 | |
RECENT ACQUISITION [Abstract] | |
RECENT ACQUISITION | NOTE 26 – RECENT ACQUISITION Effective April 1, 2018, we completed the acquisition of all of the issued and outstanding shares of common stock of TCSB through a merger of TCSB into Independent Bank Corporation (‘‘IBCP’’), with IBCP as the surviving corporation (the ‘‘Merger’’). On that same date we also consolidated Traverse City State Bank, TCSB’s wholly-owned subsidiary bank, into Independent Bank (with Independent Bank as the surviving institution). Under the terms of the merger agreement each holder of TCSB common stock received 1.1166 shares of IBCP common stock plus cash in lieu of fractional shares totaling $0.005 million. TCSB option holders had their options converted into IBCP stock options. As a result we issued 2.71 million shares of common stock and 0.19 million stock options with a fair value of approximately $64.5 million to the shareholders and option holders of TCSB. The fair value of common stock and stock options issued as the consideration paid for TCSB was determined using the closing price of our common stock on the acquisition date. This acquisition was accounted for under the acquisition method of accounting. Accordingly, we recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values. TCSB results of operations are included in our results beginning April 1, 2018. Non-interest expense includes zero, zero and $3.5 million of costs incurred during the years ended December 31, 2020, 2019 and 2018, respectively related to the Merger. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTING POLICIES [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION |
STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS |
INTEREST BEARING DEPOSITS | INTEREST BEARING DEPOSITS INTEREST BEARING DEPOSITS - TIME |
LOANS HELD FOR SALE | LOANS HELD FOR SALE |
OPERATING SEGMENTS | OPERATING SEGMENTS |
CAPITALIZED MORTGAGE LOAN SERVICING RIGHTS | CAPITALIZED MORTGAGE LOAN SERVICING RIGHTS Mortgage loan servicing income is recorded for fees earned for servicing loans previously sold. The fees are generally based on a contractual percentage of the outstanding principal and are recorded as income when earned. Mortgage loan servicing fees, excluding fair value changes of capitalized mortgage loan servicing rights, totaled $6.9 million, $6.2 million and $5.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Late fees and ancillary fees related to loan servicing are not material. |
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS have been isolated from us, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
SECURITIES | SECURITIES We evaluate securities for other than temporary impairment (‘‘OTTI’’) at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In performing this evaluation, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis. |
FEDERAL HOME LOAN BANK ("FHLB") STOCK | FEDERAL HOME LOAN BANK (‘‘FHLB’’) STOCK |
FEDERAL RESERVE BANK ("FRB") STOCK | FEDERAL RESERVE BANK (‘‘FRB’’) STOCK |
LOAN REVENUE RECOGNITION | LOAN REVENUE RECOGNITION Certain loan fees and direct loan origination costs are deferred and recognized as an adjustment of yield generally over the contractual life of the related loan. Fees received in connection with loan commitments are deferred until the loan is advanced and are then recognized generally over the contractual life of the loan as an adjustment of yield. Fees on commitments that expire unused are recognized at expiration. Fees received for letters of credit are recognized as revenue over the life of the commitment. |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES — Portfolios are disaggregated into segments for purposes of determining the allowance for loan losses (‘‘AFLL’’) which include commercial, mortgage and installment loans. These segments are further disaggregated into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial loan segment include (i) commercial and industrial and (ii) commercial real estate. Classes within the mortgage loan segment include (i) 1-4 family owner occupied - jumbo, (ii) 1-4 family owner occupied - non-jumbo, (iii) 1-4 family non-owner occupied (iv) 1-4 family - 2nd lien and (v) resort lending. Classes within the installment loan segment include (i) boat lending, (ii) recreational vehicle lending, and (iii) other. Commercial loans are subject to adverse market conditions which may impact the borrower’s ability to make repayment on the loan or could cause a decline in the value of the collateral that secures the loan. Mortgage and installment loans are subject to adverse employment conditions in the local economy which could increase default rates. In addition, mortgage loans and real estate based installment loans are subject to adverse market conditions which could cause a decline in the value of collateral that secures the loan. For an analysis of the AFLL by portfolio segment and credit quality information by class, see note #4. Some loans will not be repaid in full. Therefore, an AFLL is maintained at a level which represents our best estimate of losses incurred. In determining the AFLL and the related provision for loan losses, we consider four principal elements: (i) specific allocations based upon probable losses identified during the review of the loan portfolio, (ii) allocations established for other adversely rated commercial loans, (iii) allocations based principally on historical loan loss experience, and (iv) additional allocations based on subjective factors, including local and general economic business factors and trends, portfolio concentrations and changes in the size and/or the general terms of the loan portfolios. The first AFLL element (specific allocations) reflects our estimate of probable incurred losses based upon our systematic review of specific loans. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower, discounted collateral exposure and discounted cash flow analysis. Impaired commercial, mortgage and installment loans are allocated AFLL amounts using this first element. The second AFLL element (other adversely rated commercial loans) reflects the application of our loan rating system. This rating system is similar to those employed by state and federal banking regulators. Commercial loans that are rated below a certain predetermined classification are assigned a loss allocation factor for each loan classification category that is based upon a historical analysis of both the probability of default and the expected loss rate (‘‘loss given default’’). The lower the rating assigned to a loan or category, the greater the allocation percentage that is applied. The third AFLL element (historical loss allocations) is determined by assigning allocations to higher rated (‘‘non-watch credit’’) commercial loans using a probability of default and loss given default similar to the second AFLL element and to homogenous mortgage and installment loan groups based upon borrower credit score and portfolio segment. For homogenous mortgage and installment loans a probability of default for each homogenous pool is calculated by way of credit score migration. Historical loss data for each homogenous pool coupled with the associated probability of default is utilized to calculate an expected loss allocation rate. The fourth AFLL element (additional allocations based on subjective factors) is based on factors that cannot be associated with a specific credit or loan category and reflects our attempt to reasonably ensure that the overall AFLL appropriately reflects a margin for the imprecision necessarily inherent in the estimates of expected credit losses. We consider a number of subjective factors when determining this fourth element, including local and general economic business factors and trends, portfolio concentrations and changes in the size, mix and the general terms of the overall loan portfolio. During the first quarter of 2019, we deployed a third-party software solution (we previously used spreadsheet software) to assist in the determination of our AFLL. This new third-party software also has assisted us in moving to the expected loss framework that we plan to adopt on January 1, 2021. Although the use of this new third-party software did not have any material impact on our overall AFLL, it did result in some classification shifts from the AFLL related to subjective factors into the AFLL related to historical losses as the new software model allowed us to capture longer historical look-back periods (previously this was being captured in the subjective portion of the AFLL). Increases in the AFLL are recorded by a provision for loan losses charged to expense. Although we periodically allocate portions of the AFLL to specific loans and loan portfolios, the entire AFLL is available for incurred losses. We generally charge-off commercial, homogenous residential mortgage and installment loans when they are deemed uncollectible or reach a predetermined number of days past due based on loan product, industry practice and other factors. Collection efforts may continue and recoveries may occur after a loan is charged against the AFLL. While we use relevant information to recognize losses on loans, additional provisions for related losses may be necessary based on changes in economic conditions, customer circumstances and other credit risk factors. A loan is impaired when full payment under the loan terms is not expected. Generally, those loans included in each commercial loan class that are rated substandard, classified as non-performing or were classified as non-performing in the preceding quarter, are evaluated for impairment. Those loans included in each mortgage loan or installment loan class whose terms have been modified and considered a troubled debt restructuring are also impaired. Loans which have been modified resulting in a concession, and which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (‘‘TDR’’) and classified as impaired. We measure our investment in an impaired loan based on one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Large groups of smaller balance homogeneous loans, such as those loans included in each installment and mortgage loan class, are collectively evaluated for impairment and accordingly, they are not separately identified for impairment disclosures. TDR loans are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception of the loan. If a TDR is considered to be a collateral dependent loan, the loan is reported net, at the fair value of collateral. A loan can be removed from TDR status if it is subsequently restructured and the borrower is no longer experiencing financial difficulties and the newly restructured agreement does not contain any concessions to the borrower. The new agreement must specify market terms, including a contractual interest rate not less than a market interest rate for a new loan with similar credit risk characteristics, and other terms no less favorable to us than those we would offer for a similar new loan. |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT |
BANK OWNED LIFE INSURANCE | BANK OWNED LIFE INSURANCE |
OTHER REAL ESTATE AND REPOSSESSED ASSETS | OTHER REAL ESTATE AND REPOSSESSED ASSETS |
OTHER INTANGIBLES | OTHER INTANGIBLES |
GOODWILL | GOODWILL |
INCOME TAXES | INCOME TAXES A tax position is recognized as a benefit only if it is ‘‘more likely than not’’ that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. We recognize interest and/or penalties related to income tax matters in income tax expense in the Consolidated Statements of Operations. We file a consolidated federal income tax return. Intercompany tax liabilities are settled as if each subsidiary filed a separate return. |
COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS | COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS At the inception of the derivative we designate the derivative as one of three types based on our intention and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (‘‘Fair Value Hedge’’), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (‘‘Cash Flow Hedge’’), or (3) an instrument with no hedging designation. For a Fair Value Hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in interest income in our Consolidated Statements of Operations . For a Cash Flow Hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For instruments with no hedging designation, the gain or loss on the derivative is reported in earnings. These free standing instruments currently consist of (i) mortgage banking related derivatives and include rate-lock loan commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and mandatory forward commitments for the future delivery of these mortgage loans, (ii) certain pay-fixed and pay-variable interest rate swap agreements related to commercial loan customers and (iii) certain purchased and written options related to a time deposit product. The fair value of rate-lock mortgage loan commitments is based on agency cash window loan pricing for comparable assets and the fair value of mandatory commitments to sell mortgage loans is based on mortgage backed security pricing for comparable assets. We enter into mandatory forward commitments for the future delivery of mortgage loans generally when interest rate locks are entered into in order to hedge the change in interest rates resulting from our commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on mortgage loans in the Consolidated Statements of Operations. Fair values of the pay-fixed and pay-variable interest rate swap agreements are derived from proprietary models which utilize current market data and are included in net interest income in the Consolidated Statements of Operations. Fair values of the purchased and written options are based on prices of financial instruments with similar characteristics and are included in net interest income in the Consolidated Statements of Operations. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest expense in the Consolidated Statements of Operations. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income (mortgage banking related derivatives) or net interest income (interest rate swap agreements and options) in the Consolidated Statements of Operations. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. We formally document the relationship between derivatives and hedged items, as well as the risk- management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking Fair Value or Cash Flow Hedges to specific assets and liabilities on the Consolidated Statements of Financial Condition or to specific firm commitments or forecasted transactions. We discontinue hedge accounting when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded in earnings. When a Fair Value Hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a Cash Flow Hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income (loss) are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME |
NET INCOME PER COMMON SHARE | NET INCOME PER COMMON SHARE |
SHARE BASED COMPENSATION | SHARE BASED COMPENSATION |
COMMON STOCK | COMMON STOCK |
RECLASSIFICATION | RECLASSIFICATION |
ADOPTION OF NEW ACCOUNTING STANDARDS | ADOPTION OF NEW ACCOUNTING STANDARDS — Financial Accounting Standards Board (‘‘FASB’’) issued Accounting Standards Update (‘‘ASU’’) measurements, the range and weighted average used to develop significant unobservable inputs and how the weighted average was calculated, with certain exceptions. This amended guidance was effective for us on January 1, 2020, and did not have a material impact on our consolidated operating results or financial condition. In June 2016, the FASB issued ASU 2016-13, Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial . This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU: • Replaces the existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost, which will reflect our estimate of credit losses over the full remaining expected life of the financial assets and will consider expected future changes in macroeconomic conditions. • Eliminates existing guidance for purchase credit impaired loans, and requires recognition of the nonaccretable difference as an increase to the allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination, which will be offset by an increase in the recorded investment of the related loans. • Requires inclusion of expected recoveries, limited to the cumulative amount of prior write-offs, when estimating the allowance for credit losses for in scope financial assets (including collateral dependent assets). • Amends existing impairment guidance for securities available for sale to incorporate an allowance, which will allow for reversals of credit impairments in the event that the credit of an issuer improves. Credit losses on securities available for sale are limited to the amount of the decline in fair value regardless of what the credit loss model would show for impairment. • Generally requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. We began evaluating this ASU in 2016 and established a company-wide, cross-discipline governance structure, which provides implementation oversight. We continued to test and refine our current expected credit loss models that satisfied the requirements of this ASU. Oversight and testing, as well as efforts to meet expanded disclosure requirements, extended through the end of 2020. We currently expect to estimate losses over approximately a forecast period using external economic forecast sources, including the Federal Open Market Committee median economic projections, and then revert to longer term historical loss experience to estimate losses over more extended periods. We expect to recognize a one-time cumulative effect adjustment increasing the allowance for loan losses. We are estimating an increase to the allowance for loan losses to be in the range of $ million to $ million primarily driven by the longer contractual maturities of our mortgage and consumer installment loan portfolio segments. In addition, we currently expect this ASU to increase the allowance for losses related to unfunded loan commitments between $ million and $ million. The ultimate impact of adopting this ASU, and at each subsequent reporting period, is highly dependent on credit quality, economic forecasts and conditions, composition of our loan portfolios and securities available for sale, along with other management judgments. The transition adjustment to record the allowance for credit losses may fall outside of our estimated increase based on the finalization of assumptions including qualitative adjustments and the economic forecast used in calculating the allowance for credit losses upon the adoption of CECL. We do not expect a material allowance for credit losses to be recorded on securities available for sale upon adoption of this ASU. In March 2020, the FASB issued ASU 2020-04, ‘‘Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting’’. This new ASU provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. Entities that make such elections would not have to remeasure contracts at the modification date or reassess a previous accounting determination. Entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. This amended guidance and our ability to elect its temporary optional expedients and exceptions are effective for us as of March 12, 2020 through December 31, 2022. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES [Abstract] | |
Securities Available for Sale | Securities available for sale consist of the following at December 31: Amortized Unrealized Cost Gains Losses Fair Value (In thousands) 2020 U.S. agency $ 10,456 $ 305 $ 13 $ 10,748 U.S. agency residential mortgage-backed 340,224 4,951 593 344,582 U.S. agency commercial mortgage-backed 6,869 326 - 7,195 Private label mortgage-backed 41,429 1,539 139 42,829 Other asset backed 252,596 1,796 211 254,181 Obligations of states and political subdivisions 315,795 8,676 178 324,293 Corporate 82,307 3,807 97 86,017 Trust preferred 1,971 - 173 1,798 Foreign government 500 16 - 516 Total $ 1,052,147 $ 21,416 $ 1,404 $ 1,072,159 2019 U.S. agency $ 14,591 $ 89 $ 19 $ 14,661 U.S. agency residential mortgage-backed 226,130 1,910 278 227,762 U.S. agency commercial mortgage-backed 10,671 113 28 10,756 Private label mortgage-backed 39,248 544 99 39,693 Other asset backed 94,158 103 375 93,886 Obligations of states and political subdivisions 94,499 1,724 121 96,102 Corporate 31,904 1,296 5 33,195 Trust preferred 1,968 - 125 1,843 Foreign government 499 3 - 502 Total $ 513,668 $ 5,782 $ 1,050 $ 518,400 |
Investments in a Continuous Unrealized Loss Position | Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position, at December 31 follows: Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) 2020 U.S. agency $ 1,469 $ 3 $ 2,329 $ 10 $ 3,798 $ 13 U.S. agency residential mortgage-backed 96,839 592 83 1 96,922 593 Private label mortgage-backed 11,838 95 2,050 44 13,888 139 Other asset backed 7,142 25 21,197 186 28,339 211 Obligations of states and political subdivisions 28,957 177 800 1 29,757 178 Corporate 1,924 97 - - 1,924 97 Trust preferred - - 1,798 173 1,798 173 Total $ 148,169 $ 989 $ 28,257 $ 415 $ 176,426 $ 1,404 2019 U.S. agency $ 2,782 $ 8 $ 2,712 $ 11 $ 5,494 $ 19 U.S. agency residential mortgage-backed 56,377 126 13,551 152 69,928 278 U.S. agency commercial mortgage-backed 3,284 24 659 4 3,943 28 Private label mortgage-backed 16,387 55 343 44 16,730 99 Other asset backed 34,027 233 13,839 142 47,866 375 Obligations of states and political subdivisions 15,666 84 5,396 37 21,062 121 Corporate 2,125 5 - - 2,125 5 Trust preferred - - 1,843 125 1,843 125 Total $ 130,648 $ 535 $ 38,343 $ 515 $ 168,991 $ 1,050 |
Private Label Mortgage Backed Securities Below Investment Grade | At December 31, 2020, two private label mortgage-backed securities had credit related OTTI and are summarized as follows: Senior Security Super Senior Security Total (In thousands) As of December 31, 2020 Fair value $ 373 $ 505 $ 878 Amortized cost 350 326 676 Non-credit unrealized loss - - - Unrealized gain 23 179 202 Cumulative credit related OTTI 757 457 1,214 |
Credit Losses Recognized in Earnings on Securities Available for Sale | A roll forward of credit losses recognized in earnings on securities available for sale for the years ending December 31 follow: 2020 2019 2018 (In thousands) $ 1,214 $ 1,594 $ 1,594 Additions to credit losses on securities for which no previous OTTI was recognized - - - Increases to credit losses on securities for which OTTI was previously recognized - - - Reduction(1) - (380 ) - Total $ 1,214 $ 1,214 $ 1,594 (1) During 2019 one security with previously recorded OTTI was settled and balance is now zero. |
Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity | The amortized cost and fair value of securities available for sale at December 31, 2020, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 21,244 $ 21,412 Maturing after one year but within five years 79,837 82,725 Maturing after five years but within ten years 76,454 80,060 Maturing after ten years 233,494 239,175 411,029 423,372 U.S. agency residential mortgage-backed 340,224 344,582 U.S. agency commercial mortgage-backed 6,869 7,195 Private label mortgage-backed 41,429 42,829 Other asset backed 252,596 254,181 Total $ 1,052,147 $ 1,072,159 |
Gains and Losses Realized on Sale of Securities Available for Sale | A summary of proceeds from the sale of securities available for sale and gains and losses for the years ended December 31 follow: Realized Proceeds Gains (1) Losses (In thousands) 2020 $ 38,095 $ 271 $ 4 2019 68,716 248 108 2018 48,736 192 136 (1) 2018 excludes a $ million gain on the sale of VISA Class B shares. |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LOANS [Abstract] | |
Loan Portfolios | Our loan portfolios at December 31 follow: 2020 2019 (In thousands) Real estate (1) Residential first mortgages $ 792,762 $ 843,746 Residential home equity and other junior mortgages 138,128 166,735 Construction and land development 232,693 249,747 Other (2) 669,150 693,580 Consumer 468,090 448,297 Commercial 429,011 318,504 Agricultural 3,844 4,414 Total loans $ 2,733,678 $ 2,725,023 (1) Includes both residential and non-residential commercial loans secured by real estate. (2) Includes loans secured by multi-family residential and non-farm, non-residential property. |
Analysis of Allowance for Loan Losses by Portfolio Segment | An analysis of the allowance for loan losses by portfolio segment for the years ended December 31 follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) 2020 Balance at beginning of period $ 7,922 $ 8,216 $ 1,283 $ 8,727 $ 26,148 Additions (deductions) Provision for loan losses 1,751 (915 ) 436 11,191 12,463 Recoveries credited to allowance 1,804 513 752 - 3,069 Loans charged against the allowance (4,076 ) (816 ) (1,359 ) - (6,251 ) Balance at end of period $ 7,401 $ 6,998 $ 1,112 $ 19,918 $ 35,429 2019 Balance at beginning of period $7,090 $7,978 $895 $8,925 $24,888 Additions (deductions) Provision for loan losses (651) 526 1,147 (198) 824 Recoveries credited to allowance 2,165 933 863 - 3,961 Loans charged against the allowance (682) (1,221) (1,622) - (3,525) Balance at end of period $7,922 $8,216 $1,283 $8,727 $26,148 2018 Balance at beginning of period $5,595 $8,733 $864 $7,395 $22,587 Additions (deductions) Provision for loan losses (946) 457 462 1,530 1,503 Recoveries credited to allowance 2,889 734 999 - 4,622 Loans charged against the allowance (448) (1,946) (1,430) - (3,824) Balance at end of period $7,090 $7,978 $895 $8,925 $24,888 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment | Allowance for loan losses and recorded investment in loans by portfolio segment at December 31 follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) 2020 Allowance for loan losses: Individually evaluated for impairment $ 1,266 $ 4,124 $ 191 $ - $ 5,581 Collectively evaluated for impairment 6,135 2,874 921 19,918 29,848 Loans acquired with deteriorated credit quality - - - - - Total ending allowance for loan losses balance $ 7,401 $ 6,998 $ 1,112 $ 19,918 $ 35,429 Loans Individually evaluated for impairment $ 9,431 $ 39,245 $ 1,996 $ 50,672 Collectively evaluated for impairment 1,236,052 980,449 474,379 2,690,880 Loans acquired with deteriorated credit quality 468 410 147 1,025 Total loans recorded investment 1,245,951 1,020,104 476,522 2,742,577 Accrued interest included in recorded investment 3,536 4,178 1,185 8,899 Total loans $ 1,242,415 $ 1,015,926 $ 475,337 $ 2,733,678 2019 Allowance for loan losses: Individually evaluated for impairment $1,031 $4,863 $261 $- $6,155 Collectively evaluated for impairment 6,891 3,353 1,022 8,727 19,993 Loans acquired with deteriorated credit quality - - - - - Total ending allowance for loan losses balance $7,922 $8,216 $1,283 $8,727 $26,148 Loans Individually evaluated for impairment $9,393 $43,574 $2,925 $55,892 Collectively evaluated for impairment 1,158,906 1,058,917 457,370 2,675,193 Loans acquired with deteriorated credit quality 1,394 575 316 2,285 Total loans recorded investment 1,169,693 1,103,066 460,611 2,733,370 Accrued interest included in recorded investment 2,998 4,155 1,194 8,347 Total loans $1,166,695 $1,098,911 $459,417 $2,725,023 |
Loans on Non-Accrual Status and Past Due More than 90 Days | Loans on non-accrual status and past due more than 90 days (‘‘Non-performing Loans’’) at December 31 follow (1) 90+ and Still Accruing Non- Accrual Total Non- Performing Loans (In thousands) 2020 Commercial Commercial and industrial (2) $ - $ 1,387 $ 1,387 Commercial real estate - - - Mortgage 1-4 family owner occupied - jumbo - 623 623 1-4 family owner occupied - non-jumbo (3) - 2,281 2,281 1-4 family non-owner occupied - 1,112 1,112 1-4 family - 2nd lien - 1,344 1,344 Resort lending - 607 607 Installment Boat lending - 52 52 Recreational vehicle lending - 74 74 Other - 393 393 Total recorded investment $ - $ 7,873 $ 7,873 Accrued interest included in recorded investment $ - $ - $ - 2019 Commercial Commercial and industrial (2) $ - $ 565 $ 565 Commercial real estate - 735 735 Mortgage 1-4 family owner occupied - jumbo - 1,179 1,179 1-4 family owner occupied - non-jumbo (3) - 3,540 3,540 1-4 family non-owner occupied - 1,039 1,039 1-4 family - 2nd lien - 979 979 Resort lending - 690 690 Installment Boat lending - 332 332 Recreational vehicle lending - 3 3 Other - 470 470 Total recorded investment $ - $ 9,532 $ 9,532 Accrued interest included in recorded investment $ - $ - $ - (1) Non-performing loans exclude purchase credit impaired loans. (2) Non-performing commercial and industrial loans exclude $0.053 million and $0.077 million of government guaranteed loans at December 31, 2020 and 2019, respectively. (3) Non-performing 1-4 family owner occupied – non jumbo loans exclude $0.386 million and $0.569 million of government guaranteed loans at December 31, 2020 and 2019, respectively. |
Aging Analysis of Loans by Class | An aging analysis of loans by class at December 31 follows: Loans Past Due Loans not Total 30-59 days 60-89 days 90+ days Total Past Due Loans (In thousands) 2020 Commercial Commercial and industrial $ 5,003 $ 131 $ 70 $ 5,204 $ 671,115 $ 676,319 Commercial real estate 2,600 - - 2,600 567,032 569,632 Mortgage 1-4 family owner occupied - jumbo 761 - 623 1,384 438,794 440,178 1-4 family owner occupied - non-jumbo 1,888 453 502 2,843 264,730 267,573 1-4 family non-owner occupied 1,184 139 476 1,799 157,977 159,776 1-4 family - 2nd lien 710 228 732 1,670 92,860 94,530 Resort lending 32 195 358 585 57,462 58,047 Installment Boat lending 95 101 - 196 207,317 207,513 Recreational vehicle lending 207 37 48 292 169,282 169,574 Other 337 162 199 698 98,737 99,435 Total recorded investment $ 12,817 $ 1,446 $ 3,008 $ 17,271 $ 2,725,306 $ 2,742,577 Accrued interest included in recorded investment $ 147 $ 22 $ - $ 169 $ 8,730 $ 8,899 2019 Commercial Commercial and industrial $ - $ 289 $ 102 $ 391 $ 564,480 $ 564,871 Commercial real estate 177 - 735 912 603,910 604,822 Mortgage 1-4 family owner occupied - jumbo 1,757 1,037 - 2,794 398,759 401,553 1-4 family owner occupied - non-jumbo 2,672 852 1,387 4,911 342,349 347,260 1-4 family non-owner occupied 695 136 623 1,454 168,083 169,537 1-4 family - 2nd lien 909 90 386 1,385 115,157 116,542 Resort lending 364 53 565 982 67,192 68,174 Installment Boat lending 337 107 88 532 202,750 203,282 Recreational vehicle lending 161 97 3 261 153,184 153,445 Other 377 275 202 854 103,030 103,884 Total recorded investment $ 7,449 $ 2,936 $ 4,091 $ 14,476 $ 2,718,894 $ 2,733,370 Accrued interest included in recorded investment $ 74 $ 34 $ - $ 108 $ 8,239 $ 8,347 |
Impaired Loans | Impaired loans are as follows: December 31, 2020 2019 (In thousands) Impaired loans with no allocated allowance for loan losses TDR $ 93 $ 337 Non - TDR 1,367 1,550 Impaired loans with an allocated allowance for loan losses TDR - allowance based on collateral 9,027 1,587 TDR - allowance based on present value cash flow 37,953 48,798 Non - TDR - allowance based on collateral 1,873 3,365 Total impaired loans $ 50,313 $ 55,637 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 1,058 $ 542 TDR - allowance based on present value cash flow 3,755 4,641 Non - TDR - allowance based on collateral 768 972 Total amount of allowance for loan losses allocated $ 5,581 $ 6,155 Impaired loans by class as of December 31 are as follows: 2020 2019 Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses (In thousands) With no related allowance for loan losses recorded: Commercial Commercial and industrial $ 77 $ 80 $ - $ 257 $ 257 $ - Commercial real estate - - - 796 796 - Mortgage 1-4 family owner occupied - jumbo 623 629 - - - - 1-4 family owner occupied - non-jumbo - - - 212 217 - 1-4 family non-owner occupied 305 473 - 214 366 - 1-4 family - 2nd lien 301 304 - 407 438 - Resort lending 154 379 - - - - Installment Boat lending - - - - - - Recreational vehicle lending - - - - - - Other - - - 1 41 - 1,460 1,865 - 1,887 2,115 - 2020 2019 Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses (In thousands) With an allowance for loan losses recorded: Commercial Commercial and industrial 2,227 2,370 756 1,655 1,706 453 Commercial real estate 7,127 7,096 510 6,685 6,661 578 Mortgage 1-4 family owner occupied - jumbo 506 880 50 1,447 1,445 91 1-4 family owner occupied - non-jumbo 21,655 22,311 2,300 10,163 10,695 1,031 1-4 family non-owner occupied 4,335 4,704 495 4,962 5,542 572 1-4 family - 2nd lien 811 829 200 14,059 15,243 1,695 Resort lending 10,555 10,764 1,079 12,110 12,263 1,474 Installment Boat lending 7 11 2 - - - Recreational vehicle lending 87 100 19 - - - Other 1,902 2,040 170 2,924 3,153 261 49,212 51,105 5,581 54,005 56,708 6,155 Total Commercial Commercial and industrial 2,304 2,450 756 1,912 1,963 453 Commercial real estate 7,127 7,096 510 7,481 7,457 578 Mortgage 1-4 family owner occupied - jumbo 1,129 1,509 50 1,447 1,445 91 1-4 family owner occupied - non-jumbo 21,655 22,311 2,300 10,375 10,912 1,031 1-4 family non-owner occupied 4,640 5,177 495 5,176 5,908 572 1-4 family - 2nd lien 1,112 1,133 200 14,466 15,681 1,695 Resort lending 10,709 11,143 1,079 12,110 12,263 1,474 Installment Boat lending 7 11 2 - - - Recreational vehicle lending 87 100 19 - - - Other 1,902 2,040 170 2,925 3,194 261 Total $50,672 $52,970 $5,581 $55,892 $58,823 $6,155 Accrued interest included in recorded investment $359 $255 |
Average Recorded Investment in and Interest Income Earned on Impaired Loans by Class | Average recorded investment in and interest income earned (of which the majority of these amounts were received in cash and related primarily to performing TDR’s) on impaired loans by class for the years ended December 31 follows: 2020 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance for loan losses recorded: Commercial Commercial and industrial $ 125 $ 9 $ 51 $ - $ 378 $ 20 Commercial real estate 159 - 278 5 961 - Mortgage 1-4 family owner occupied - jumbo 408 - - - 41 - 1-4 family owner occupied - non-jumbo 252 4 201 - 15 27 1-4 family non-owner occupied 308 10 123 - - - 1-4 family - 2nd lien 380 - 136 7 - - Resort lending 92 - - - - - Installment Boat lending - - - - - - Recreational vehicle lending - - - - - - Other - - - 1 1 11 1,724 23 789 13 1,396 58 With an allowance for loan losses recorded: Commercial Commercial and industrial 2,230 242 2,256 72 2,641 127 Commercial real estate 10,751 1,043 5,778 315 5,199 288 Mortgage 1-4 family owner occupied - jumbo 1,083 84 995 39 1,335 69 1-4 family owner occupied - non-jumbo 19,624 2,033 15,183 594 28,183 1,408 1-4 family non-owner occupied 4,664 375 2,874 291 5,475 314 1-4 family - 2nd lien 3,376 22 13,383 809 284 12 Resort lending 11,316 799 11,697 669 14,687 606 Installment Boat lending 59 1 54 - 1 - Recreational vehicle lending 81 4 22 - 84 4 Other 2,416 225 3,186 189 3,640 224 55,600 4,828 55,428 2,978 61,529 3,052 Total Commercial Commercial and industrial 2,355 251 2,307 72 3,019 147 Commercial real estate 10,910 1,043 6,056 320 6,160 288 Mortgage 1-4 family owner occupied - jumbo 1,491 84 995 39 1,376 69 1-4 family owner occupied - non-jumbo 19,876 2,037 15,384 594 28,198 1,435 1-4 family non-owner occupied 4,972 385 2,997 291 5,475 314 1-4 family - 2nd lien 3,756 22 13,519 816 284 12 Resort lending 11,408 799 11,697 669 14,687 606 Installment Boat lending 59 1 54 - 1 - Recreational vehicle lending 81 4 22 - 84 4 Other 2,416 225 3,186 190 3,641 235 Total $ 57,324 $ 4,851 $ 56,217 $ 2,991 $ 62,925 $ 3,110 |
Troubled Debt Restructurings | Troubled debt restructurings at December 31 follow: 2020 Commercial Retail (1) Total (In thousands) Performing TDR’s $ 7,956 $ 36,385 $ 44,341 Non-performing TDR’s (2) 1,148 1,584 (3) 2,732 Total $ 9,104 $ 37,969 $ 47,073 2019 Commercial Retail (1) Total (In thousands) Performing TDR’s $ 7,974 $ 39,601 $ 47,575 Non-performing TDR’s (2) 540 2,607 (3) 3,147 Total $ 8,514 $ 42,208 $ 50,722 (1) Retail loans include mortgage and installment loan portfolio segments. (2) Included in non-performing loans table above. (3) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. |
Troubled Debt Restructuring During the Period | Loans that have been classified as troubled debt restructurings during the years ended December 31 follow: Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2020 Commercial Commercial and industrial 7 $ 1,207 $ 1,207 Commercial real estate 4 7,012 7,012 Mortgage 1-4 family owner occupied - jumbo - - - 1-4 family owner occupied - non-jumbo 5 357 374 1-4 family non-owner occupied 2 111 116 1-4 family - 2nd lien 2 44 46 Resort lending - - - Installment Boat lending - - - Recreational vehicle lending - - - Other 4 91 93 Total 24 $ 8,822 $ 8,848 Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2019 Commercial Commercial and industrial 8 $1,609 $1,609 Commercial real estate 3 1,479 1,479 Mortgage 1-4 family owner occupied - jumbo - - - 1-4 family owner occupied - non-jumbo 2 478 483 1-4 family non-owner occupied 1 507 505 1-4 family - 2nd lien 3 75 75 Resort lending - - - Installment Boat lending - - - Recreational vehicle lending - - - Other 7 188 191 Total 24 $4,336 $4,342 2018 Commercial Commercial and industrial 7 $652 $652 Commercial real estate 2 204 204 Mortgage 1-4 family owner occupied - jumbo 1 419 419 1-4 family owner occupied - non-jumbo 9 991 994 1-4 family non-owner occupied - - - 1-4 family - 2nd lien - - - Resort lending 1 115 114 Installment Boat lending - - - Recreational vehicle lending - - - Other 14 708 709 Total 34 $3,089 $3,092 |
Troubled Debt Restructuring During the Past Twelve Months that Subsequently Defaulted | Loans that have been classified as troubled debt restructured during the past twelve months and that have subsequently defaulted during the years ended December 31 follows: Number of Contracts Recorded Balance 2020 (Dollars in thousands) Commercial Commercial and industrial - $ - Commercial real estate - - Mortgage 1-4 family owner occupied - jumbo - - 1-4 family owner occupied - non-jumbo - - 1-4 family non-owner occupied - - 1-4 family - 2nd lien - - Resort lending - - Installment Boat lending - - Recreational vehicle lending - - Other - - Total - $ - 2019 Commercial Commercial and industrial 1 $ 19 Commercial real estate - - Mortgage 1-4 family owner occupied - jumbo - - 1-4 family owner occupied - non-jumbo 1 12 1-4 family non-owner occupied - - 1-4 family - 2nd lien - - Resort lending - - Installment Boat lending - - Recreational vehicle lending - - Other - - Total 2 $ 31 2018 Commercial Commercial and industrial - $ - Commercial real estate - - Mortgage 1-4 family owner occupied - jumbo - - 1-4 family owner occupied - non-jumbo - - 1-4 family non-owner occupied - - 1-4 family - 2nd lien - - Resort lending - - Installment Boat lending - - Recreational vehicle lending - - Other 1 13 Total 1 $ 13 |
Commercial and Retail Loan COVID-19 Accomodations | A summary of remaining accommodations that had been entered into under this guidance as of December 31, 2020 follows: Commercial and Retail Loan COVID-19 Accomodations Covid-19 Accomodations Total % of Total Loan Category Loans (#) Loans ($) Loans Loans (Dollars in thousands) Commercial 2 $ 163 $ 1,242,415 0.0 % Mortgage 134 19,830 1,015,926 2.0 % Installment 48 1,412 475,337 0.3 % Total 184 $ 21,405 $ 2,733,678 0.8 % Mortgage loans serviced for others(1) 288 $ 42,897 $ 2,984,088 1.4 % 1) We have delegated authority from all investors to grant these deferrals on their behalf. Information on subsequent accommodation extensions for portfolio loans follows: Commercial and Retail Loan COVID-19 Subsequent Accomodations (1) Loan Category Loans (#) Loans ($) (Dollars in thousands) Commercial 2 $ 163 Mortgage 100 15,004 Installment 35 1,045 Total 137 $ 16,212 (1) Subsequent accommodations are extensions of the original accommodations that were given as summarized in the paragraph above. |
Loan Ratings by Loan Class | The following table summarizes loan ratings by loan class for our commercial loan portfolio segment at December 31: Commercial Non-watch 1-6 Watch 7-8 Substandard Accrual 9 Non- Accrual 10-11 Total (In thousands) 2020 Commercial and industrial $ 637,826 $ 32,765 $ 4,341 $ 1,387 $ 676,319 Commercial real estate 561,382 5,978 2,272 - 569,632 Total $ 1,199,208 $ 38,743 $ 6,613 $ 1,387 $ 1,245,951 Accrued interest included in total $ 3,408 $ 105 $ 23 $ - $ 3,536 2019 Commercial and industrial $ 515,955 $ 44,384 $ 3,967 $ 565 $ 564,871 Commercial real estate 580,516 23,036 535 735 604,822 Total $ 1,096,471 $ 67,420 $ 4,502 $ 1,300 $ 1,169,693 Accrued interest included in total $ 2,763 $ 205 $ 30 $ - $ 2,998 For each of our mortgage and installment portfolio segment classes we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated semi-annually. The following tables summarize credit scores by loan class for our mortgage and installment loan portfolio segments at December 31: Mortgage (1) 1-4 Family Owner Occupied - Jumbo 1-4 Family Owner Occupied - Non-jumbo 1-4 Family Non-owner Occupied 1-4 Family 2nd Lien Resort Lending Total (In thousands) 2020 800 and above $ 61,077 $ 40,187 $ 25,468 $ 12,490 $ 9,546 $ 148,768 _ 223,177 70,642 82,124 42,138 27,530 445,611 _ 101,086 75,489 30,326 22,962 11,726 241,589 _ 40,296 44,344 13,182 11,269 6,393 115,484 _ 11,146 18,519 4,303 2,703 1,670 38,341 _ - 11,021 2,388 1,608 917 15,934 _ 3,396 5,129 1,580 1,012 192 11,309 Under 500 - 2,242 405 348 73 3,068 Unknown - - - - - - Total $ 440,178 $ 267,573 $ 159,776 $ 94,530 $ 58,047 $ 1,020,104 Accrued interest included in total $ 1,301 $ 1,641 $ 587 $ 373 $ 276 $ 4,178 Mortgage (1) 1-4 Family Owner Occupied - Jumbo 1-4 Family Owner Occupied - Non-jumbo 1-4 Family Non-owner Occupied 1-4 Family 2nd Lien Resort Lending Total (In thousands) 2019 800 and above $48,486 $43,848 $24,315 $13,905 $11,076 $141,630 _ 198,491 111,521 84,656 50,012 29,364 474,044 _ 106,609 95,064 34,839 30,697 14,626 281,835 _ 31,553 51,174 13,995 14,267 8,063 119,052 _ 13,230 21,938 5,897 4,097 2,074 47,236 _ 514 12,308 1,863 1,703 673 17,061 _ 1,519 7,940 1,870 1,281 889 13,499 Under 500 641 2,208 533 511 79 3,972 Unknown 510 1,259 1,569 69 1,330 4,737 Total $401,553 $347,260 $169,537 $116,542 $68,174 $1,103,066 Accrued interest included in total $1,139 $1,662 $586 $502 $266 $4,155 (1) Credit scores have been updated within the last twelve months. Installment (1) Boat Lending Recreational Vehicle Lending Other Total (In thousands) 2020 800 and above $ 32,231 $ 29,223 $ 9,154 $ 70,608 _ 123,689 95,890 37,512 257,091 _ 38,223 33,476 25,262 96,961 _ 10,189 8,794 21,138 40,121 _ 2,083 1,305 3,730 7,118 _ 661 551 1,299 2,511 _ 342 283 767 1,392 Under 500 95 52 63 210 Unknown - - 510 510 Total $ 207,513 $ 169,574 $ 99,435 $ 476,522 Accrued interest included in total $ 572 $ 457 $ 156 $ 1,185 2019 800 and above $ 28,041 $ 24,470 $ 7,611 $ 60,122 _ 118,380 88,164 37,583 244,127 _ 41,490 31,055 27,204 99,749 _ 11,485 7,267 22,517 41,269 _ 2,254 1,411 4,470 8,135 _ 946 592 1,884 3,422 _ 377 464 1,127 1,968 Under 500 309 22 284 615 Unknown - - 1,204 1,204 Total $ 203,282 $ 153,445 $ 103,884 $ 460,611 Accrued interest included in total $ 490 $ 378 $ 326 $ 1,194 (1) Credit scores have been updated within the last twelve months. |
Other Mortgage Loans Service's Principal Balances | Mortgage loans serviced for others are not reported as assets on the Consolidated Statements of Financial Condition. The principal balances of these loans at December 31 follow: 2020 2019 (In thousands) Mortgage loans serviced for : Fannie Mae $ 1,656,060 $ 1,449,935 Freddie Mac 1,095,877 852,123 Ginnie Mae 181,615 180,941 FHLB 39,294 69,149 Other 11,242 29,018 Total $ 2,984,088 $ 2,581,166 |
Analysis of Capitalized Mortgage Loan Servicing Rights | An analysis of capitalized mortgage loan servicing rights for the years ended December 31 follows: 2020 2019 2018 (In thousands) Balance at beginning of period $ 19,171 $ 21,400 $ 15,699 Originated servicing rights capitalized 13,957 7,303 4,977 Servicing rights acquired - - 3,047 Change in fair value due to price (10,833 ) (6,408 ) 191 Change in fair value due to pay downs (5,391 ) (3,124 ) (2,514 ) Balance at end of year $ 16,904 $ 19,171 $ 21,400 Loans sold and serviced that have had servicing rights capitalized $ 2,982,833 $ 2,580,705 $ 2,333,081 |
Purchase Credit Impaired (PCI) Loans | As a result of our acquisition of TCSB Bancorp, Inc. (‘‘TCSB’’) (see note #26) we purchased loans for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. For these loans that meet the criteria of ASC 310-30 treatment, the carrying amount was as follows: December 31, 2020 2019 (In thousands) Commercial $ 468 $ 1,394 Mortgage 410 575 Installment 147 316 Total carrying amount 1,025 2,285 Allowance for loan losses - - Carrying amount, net of allowance for loan losses $ 1,025 $ 2,285 The accretable difference on PCI loans is the difference between the expected cash flows and the net present value of expected cash flows with such difference accreted into earnings using the effective yield method over the term of the loans. Accretion recorded as loan interest income is included in the table below. Accretable yield of PCI loans, or income expected to be collected follows: Year ended December 31, 2020 2019 (In thousands) Balance at beginning of period $ 640 $ 462 New loans purchased - - Accretion of income (280 ) (187 ) Reclassification from (to) nonaccretable difference - 365 Displosals/other adjustments - - Balance at end of period $ 360 $ 640 |
OTHER REAL ESTATE (Tables)
OTHER REAL ESTATE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER REAL ESTATE [Abstract] | |
Summary of Other Real Estate Activity | A summary of other real estate activity for the years ended December 31 follows (1) 2020 2019 2018 (In thousands) Balance at beginning of year, net of valuation allowance $ 1,715 $ 1,178 $ 1,628 Loans transferred to other real estate 332 2,242 1,510 Sales of other real estate (1,161 ) (1,438 ) (1,822 ) Additions to valuation allowance charged to expense (148 ) (267 ) (138 ) Balance at end of year, net of valuation allowance $ 738 $ 1,715 $ 1,178 (1) Table excludes other repossessed assets totaling $0.03 million and $0.15 million at December 31, 2020 and 2019, respectively. |
Valuation Allowance for Other Real Estate Owned | We periodically review our real estate properties and establish valuation allowances on these properties if values have declined since the date of acquisition. An analysis of our valuation allowance for other real estate follows: 2020 2019 2018 (In thousands) Balance at beginning of year $ 92 $ 144 $ 123 Additions charged to expense 148 267 138 Direct write-downs upon sale (150 ) (319 ) (117 ) Balance at end of year $ 90 $ 92 $ 144 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Summary of Property and Equipment | A summary of property and equipment at December 31 follows: 2020 2019 (In thousands) Land and land improvements $ 17,083 $ 17,478 Buildings 57,208 57,363 Equipment 72,542 71,194 146,833 146,035 Accumulated depreciation and amortization (110,706 ) (107,624 ) Property and equipment, net $ 36,127 $ 38,411 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLES [Abstract] | |
Other Intangible Assets, Net of Amortization | Intangible assets, net of amortization, at December 31 follows: 2020 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 11,916 $ 7,610 $ 11,916 $ 6,590 Unamortized intangible assets - goodwill $ 28,300 $ 28,300 |
Estimated Core Deposit Intangible Amortization | A summary of estimated core deposit intangible amortization at December 31, 2020, follows: (In thousands) 2021 $ 970 2022 785 2023 547 2024 516 2025 487 2026 and thereafter 1,001 Total $ 4,306 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS [Abstract] | |
Summary of Interest Expense on Deposits | A summary of interest expense on deposits for the years ended December 31 follows: 2020 2019 2018 (In thousands) Savings and interest-bearing checking $ 2,264 $ 5,371 $ 4,146 Reciprocal 2,158 6,024 1,292 Time 7,073 7,148 5,343 Brokered time 1,171 4,882 3,697 Total $ 12,666 $ 23,425 $ 14,478 |
Summary of Maturity of Time Deposits | A summary of the maturity of time deposits at December 31, 2020, follows: (In thousands) 2021 $ 370,497 2022 40,671 2023 16,717 2024 5,072 2025 5,457 2026 and thereafter 603 Total $ 439,017 |
Summary of Reciprocal Deposits | A summary of reciprocal deposits at December 31 follows: 2020 2019 (In thousands) Demand $ 515,092 $ 383,953 Money market 3,308 4,416 Time 37,785 42,658 Total $ 556,185 $ 431,027 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER BORROWINGS [Abstract] | |
Other Borrowings | A summary of other borrowings at December 31 follows: 2020 2019 (In thousands) Advances from the FHLB $ 30,000 $ 63,640 Federal funds purchased - 25,000 Other 12 6 Total $ 30,012 $ 88,646 |
FHLB Advances | The maturity dates, weighted average interest rates and contractually required repayments of FHLB advances at December 31 follow: 2020 2019 Amount Rate Amount Rate (Dollars in thousands) Fixed-rate advances 2020 $ 28,645 2.19 % 2022 $ - - % 4,995 1.69 2026 and thereafter 30,000 0.74 30,000 0.74 Total advances $ 30,000 0.74 % $ 63,640 1.47 % |
SUBORDINATED DEBT AND DEBENTU_2
SUBORDINATED DEBT AND DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUBORDINATED DEBT AND DEBENTURES [Abstract] | |
Information Regarding Subordinated Debentures | Summary information regarding subordinated debentures as of December 31 follows: 2020 Entity Name Issue Date Subordinated Debentures Trust Preferred Securities Issued Common Stock Issued (In thousands) IBC Capital Finance III May 2007 $ 12,372 $ 12,000 $ 372 IBC Capital Finance IV September 2007 15,465 15,000 465 Midwest Guaranty Trust I November 2002 7,732 7,500 232 TCSB Statutory Trust I March 2005 5,155 5,000 155 Discount on TCSB Statutory Trust I (1,200 ) (1,200 ) - $ 39,524 $ 38,300 $ 1,224 2019 Entity Name Issue Date Subordinated Debentures Trust Preferred Securities Issued Common Stock Issued (In thousands) IBC Capital Finance III May 2007 $ 12,372 $ 12,000 $ 372 IBC Capital Finance IV September 2007 15,465 15,000 465 Midwest Guaranty Trust I November 2002 7,732 7,500 232 TCSB Statutory Trust I March 2005 5,155 5,000 155 Discount on TCSB Statutory Trust I (1,268 ) (1,268 ) - $ 39,456 $ 38,232 $ 1,224 |
Subordinated Debentures and Trust Preferred Securities | Other key terms for the subordinated debentures and trust preferred securities that were outstanding at December 31, 2020 and 2019 follow: Entity Name Maturity Date Interest Rate First Permitted Redemption Date IBC Capital Finance III July 30, 2037 3 month LIBOR plus 1.60% July 30, 2012 IBC Capital Finance IV September 15, 2037 3 month LIBOR plus 2.85% September 15, 2012 Midwest Guaranty Trust I November 7, 2032 3 month LIBOR plus 3.45% November 7, 2007 TCSB Statutory Trust I March 17, 2035 3 month LIBOR plus 2.20% March 17, 2010 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |
Financial Instruments with Off-balance Sheet Risk | A summary of financial instruments with off-balance sheet risk at December 31 follows: 2020 2019 (In thousands) Financial instruments whose risk is represented by contract amounts Commitments to extend credit $ 644,815 $ 582,457 Standby letters of credit 9,361 7,207 |
SHAREHOLDERS' EQUITY AND INCO_2
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE [Abstract] | |
Reconciliation of Basic and Diluted Net Income Per Share | A reconciliation of basic and diluted net income per common share for the years ended December 31 follows: 2020 2019 2018 (In thousands, except per share amounts) Net income $ 56,152 $ 46,435 $ 39,839 Weighted average shares outstanding (1) 21,977 22,894 23,412 Stock units for deferred compensation plan for non-employee directors 121 132 128 Effect of stock options 90 115 176 Performance share units 33 42 53 Weighted average shares outstanding for calculation of diluted earnings per share 22,221 23,183 23,769 Net income per common share Basic (1) $ 2.56 $ 2.03 $ 1.70 Diluted $ 2.53 $ 2.00 $ 1.68 (1) Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAX [Abstract] | |
Composition of Income Tax Expense | The composition of income tax expense for the years ended December 31 follows: 2020 2019 2018 (In thousands) Current expense $ 15,459 $ 10,237 $ - Deferred expense (benefit) (2,130 ) 1,088 9,294 Income tax expense $ 13,329 $ 11,325 $ 9,294 |
Reconciliation of Income Tax Expense Computed by Applying the Statutory Federal Income Tax Rate | A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate of for o the income before income tax for the years ended December 31 follows: 2020 2019 2018 (In thousands) Statutory rate applied to income before income tax $ 14,591 $ 12,130 $ 10,318 Tax-exempt income (690 ) (375 ) (383 ) Unrecognized tax benefit (206 ) (134 ) (162 ) Share-based compensation (204 ) (204 ) (367 ) Bank owned life insurance (196 ) (233 ) (229 ) Non-deductible meals, entertainment and memberships 57 86 85 Other, net (23 ) 55 32 Income tax expense $ 13,329 $ 11,325 $ 9,294 |
Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow: 2020 2019 (In thousands) Deferred tax assets Allowance for loan losses $ 7,363 $ 5,355 Lease liabilities 1,652 1,744 Property and equipment 1,047 1,528 Share-based compensation 742 808 Reserve for unfunded lending commitments 379 324 Deferred compensation 321 285 Loss reimbursement on sold loans reserve 214 185 Non accrual loan interest income 203 173 Other than temporary impairment charge on securities available for sale 144 147 Vehicle service contract counterparty contingency reserve 26 38 Unrealized loss on derivative financial instruments - 459 Gross deferred tax assets 12,091 11,046 Deferred tax liabilities Capitalized mortgage loan servicing rights 3,550 4,026 Deferred loan fees 1,901 1,852 Lease right of use asset 1,606 1,739 Unrealized gain on securities available for sale 4,206 994 Purchase premiums, net 509 293 Federal Home Loan Bank stock 27 27 Other 17 43 Gross deferred tax liabilities 11,816 8,974 Deferred tax assets, net $ 275 $ 2,072 |
Changes in Unrecognized Tax Benefits | Changes in unrecognized tax benefits for the years ended December 31 follow: 2020 2019 2018 (In thousands) Balance at beginning of year $ 438 $ 588 $ 724 Additions based on tax positions related to the current year 15 20 26 Reductions due to the statute of limitations (273 ) (170 ) (162 ) Reductions due to settlements - - - Balance at end of year $ 180 $ 438 $ 588 |
SHARE BASED COMPENSATION AND _2
SHARE BASED COMPENSATION AND BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SHARE BASED COMPENSATION AND BENEFIT PLANS [Abstract] | |
Outstanding Stock Option Grants and Transactions | A summary of outstanding stock option grants and related transactions follows: Number of Shares Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregated Intrinsic Value (In thousands) Outstanding at January 1,2020 138,506 $ 4.62 Granted - Exercised (17,317 ) 3.27 Forfeited - Expired - Outstanding at December 31, 2020 121,189 $ 4.81 2.1 $ 1,658 Vested and expected to vest at December 31, 2020 121,189 $ 4.81 2.1 $ 1,658 Exercisable at December 31, 2020 121,189 $ 4.81 2.1 $ 1,658 |
Non-Vested Restricted Stock, Restricted Stock Units and PSU's | A summary of outstanding non-vested stock and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2020 245,726 $ 21.72 Granted 76,893 22.46 Vested (94,342 ) 19.96 Forfeited (21,160 ) 22.63 Outstanding at December 31, 2020 207,117 $ 22.70 |
Information Regarding Options Exercised | Certain information regarding options exercised during the periods ending December 31 follows: 2020 2019 2018 (In thousands) Intrinsic value $ 293 $ 897 $ 2,333 Cash proceeds received $ 57 $ 706 $ 1,420 Tax benefit realized $ 61 $ 188 $ 490 |
OTHER NON-INTEREST INCOME (Tabl
OTHER NON-INTEREST INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER NON-INTEREST INCOME [Abstract] | |
Other Non-interest Income | Other non-interest income for the years ended December 31 follows: 2020 2019 2018 (In thousands) Investment and insurance commissions $ 1,971 $ 1,658 $ 1,971 ATM fees 1,197 1,403 1,457 Bank owned life insurance 910 1,111 970 Other 3,443 5,110 4,362 Total other non-interest income $ 7,521 $ 9,282 $ 8,760 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | |
Derivative Financial Instruments According to Type of Hedge Designation | Our derivative financial instruments according to the type of hedge in which they are designated at December 31 follow: 2020 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) Fair value hedge designation Pay-fixed interest rate swap agreements - commercial $ 7,088 8.4 $ (776 ) Pay-fixed interest rate swap agreements - securities available for sale 41,950 7.1 15 Total $ 49,038 7.3 $ (761 ) No hedge designation Rate-lock mortgage loan commitments $ 168,816 0.1 $ 7,020 Mandatory commitments to sell mortgage loans 186,092 0.1 (941 ) Pay-fixed interest rate swap agreements - commercial 147,456 4.5 (9,700 ) Pay-variable interest rate swap agreements - commercial 147,456 4.5 9,700 Pay-fixed interest rate swap agreements 25,000 0.6 (295 ) Interest rate cap agreements 135,000 1.8 5 Purchased options 2,908 0.5 42 Written options 2,848 0.5 (42 ) Total $ 815,576 2.0 $ 5,789 2019 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) Fair value hedge designation - Pay-fixed interest rate swap agreements $ 7,117 9.4 $ (242 ) Cash flow hedge designation Pay-fixed interest rate swap agreements $ 25,000 1.6 $ (174 ) Interest rate cap agreements 150,000 2.6 214 Total $ 175,000 2.5 $ 40 No hedge designation Rate-lock mortgage loan commitments $ 49,268 0.1 $ 1,412 Mandatory commitments to sell mortgage loans 95,363 0.1 (150 ) Pay-fixed interest rate swap agreements - commercial 153,946 5.5 (3,641 ) Pay-variable interest rate swap agreements - commercial 153,946 5.5 3,641 Purchased options 2,908 1.5 141 Written options 2,848 1.5 (139 ) Total $ 458,279 3.7 $ 1,264 |
Fair Value of Derivative Instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives December 31, December 31, 2020 2019 2020 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments - - - - Pay-fixed interest rate swap agreements Other assets $ 15 Other assets $ - Other liabilities $ 776 Other liabilities $ 416 Interest rate cap agreements Other assets - Other assets 214 Other liabilities - Other liabilities - 15 214 776 416 Derivatives not designated as hedging instruments Rate-lock mortgage loan commitments Other assets 7,020 Other assets 1,412 Other liabilities $ - Other liabilities - Mandatory commitments to sell mortgage loans Other assets - Other assets - Other liabilities 941 Other liabilities 150 Pay-fixed interest rate swap agreements - commercial Other assets - Other assets 28 Other liabilities 9,700 Other liabilities 3,669 Pay-variable interest rate swap agreements - commercial Other assets 9,700 Other assets 3,669 Other liabilities - Other liabilities 28 Pay-fixed interest rate swap agreements Other assets - Other assets - Other liabilities 295 Other liabilities - Interest rate cap agreements Other assets 5 Other assets - Other liabilities - Other liabilities - Purchased options Other assets 42 Other assets 141 Other liabilities - Other liabilities - Written options Other assets - Other assets - Other liabilities 42 Other liabilities 139 16,767 5,250 10,978 3,986 Total derivatives $ 16,782 $ 5,464 $ 11,754 $ 4,402 |
Effect of Derivative Financial Instruments on Consolidated Statement of Operations | The effect of derivative financial instruments on the Consolidated Statements of Operations follows: Year Ended December 31, Gain (loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) Location Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) Location of Gain (Loss) Recognized in Income(1) Gain (Loss) Recognized in Income(1) 2020 2019 2018 2020 2019 2018 2020 2019 2018 (In thousands) Fair Value Hedges Pay-fixed interest rate swap ageement - Commercial loan Interest and fees on loans $ (534 ) $ (242 ) $ - Pay-fixed interest rate swap agreements - Securities available for sale Interest on securities available for sale - tax-exempt 15 - - Total $ (519 ) $ (242 ) $ - Cash Flow Hedges Interest rate cap agreements $ 125 $ (1,211 ) $ (340 ) Interest expense $ (1,885 ) $ 363 $ 206 Interest expense $ - $ - $ - Pay-fixed interest rate swap agreements (479 ) (392 ) 78 Interest expense (654 ) 62 31 Interest expense - - (12 ) Total $ (354 ) $ (1,603 ) $ (262 ) $ (2,539 ) $ 425 $ 237 $ - $ - $ (12 ) No hedge designation Rate-lock mortgage loan commitments Net gains on mortgage loans $ 5,608 $ 725 $ 157 Mandatory commitments to sell mortgage loans Net gains on mortgage loans (791 ) 233 (420 ) Pay-fixed interest rate swap agreements - commercial Interest income (6,059 ) (4,046 ) 113 Pay-variable interest rate swap agreements -commercial Interest income 6,059 4,046 (113 ) Pay-fixed interest rate swap agreements Interest expense 231 - - Interest rate cap agreements Interest expense (57 ) - - Purchased options Interest expense (99 ) 25 (206 ) Written options Interest expense 97 (23 ) 206 Total $ 4,989 $ 960 $ (263 ) (1) For cash flow hedges, this location and amount refers to the ineffective portion. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Summary of Loans to Directors and Executive Officers | A summary of loans to our directors and executive officers (which includes loans to entities in which the individual owns a 10% or more voting interest) for the years ended December 31 follows: 2020 2019 (In thousands) Balance at beginning of year $ 13,077 $ 14,205 New loans and advances 417 713 Repayments (11,078 ) (1,841 ) Balance at end of year $ 2,416 $ 13,077 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASES [Abstract] | |
Components of Operating Leases | The cost components of our operating leases follows: 2020 2019 (In thousands) Operating lease cost $ 1,780 $ 2,217 Variable lease cost 69 142 Short-term lease cost 36 19 Total $ 1,885 $ 2,378 |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to our operating leases follows: 2020 2019 (In thousands) Lease right of use asset (1) $ 7,646 $ 8,282 Lease liabilities (2) $ 7,868 $ 8,304 Weighted average remaining lease term (years) 7.12 7.47 Weighted average discount rate 2.4 % 2.8 % (1) Included in Accrued income and other assets (2) Included in Accrued expenses and other liabilities |
Maturity Analysis of Lease Liabilities | Maturity analysis of our lease liabilities at December 31, 2020 based on required contractual payments follows: (In thousands) 2021 $ 1,669 2022 1,489 2023 1,222 2024 815 2025 809 2026 and thereafter 2,525 Total lease payments 8,529 Less imputed interest (661 ) Total $ 7,868 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REGULATORY MATTERS [Abstract] | |
Actual Capital Amounts and Ratios and Components of Regulatory Capital | Our actual capital amounts and ratios at December 31 follow (1) Actual Minimum for Adequately Capitalized Institutions Minimum for Well-Capitalized Institutions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) 2020 Total capital to risk-weighted assets Consolidated $ 455,072 15.95 % $ 228,214 8.00 % NA NA Independent Bank 401,005 14.06 228,111 8.00 $ 285,139 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 379,395 13.30 % $ 171,161 6.00 % NA NA Independent Bank 365,343 12.81 171,083 6.00 $ 228,111 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 341,095 11.96 % $ 128,370 4.50 % NA NA Independent Bank 365,343 12.81 128,312 4.50 $ 185,340 6.50 % Tier 1 capital to average assets Consolidated $ 379,395 9.15 % $ 165,825 4.00 % NA NA Independent Bank 365,343 8.81 165,828 4.00 $ 207,285 5.00 % 2019 Total capital to risk-weighted assets Consolidated $ 380,454 13.74 % $ 221,562 8.00 % NA NA Independent Bank 358,914 12.96 221,482 8.00 $ 276,852 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 352,764 12.74 % $ 166,171 6.00 % NA NA Independent Bank 331,224 11.96 166,111 6.00 $ 221,482 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 314,532 11.36 % $ 124,628 4.50 % NA NA Independent Bank 331,224 11.96 124,583 4.50 $ 179,954 6.50 % Tier 1 capital to average assets Consolidated $ 352,764 10.11 % $ 139,632 4.00 % NA NA Independent Bank 331,224 9.49 139,615 4.00 $ 174,519 5.00 % (1) These ratios do not reflect a capital conservation buffer of 2.50% at December 31, 2020 and 2019. NA - Not applicable The components of our regulatory capital are as follows: Consolidated Independent Bank December 31, December 31, 2020 2019 2020 2019 (In thousands) Total shareholders’ equity $ 389,522 $ 350,169 $ 413,770 $ 366,861 Add (deduct) Accumulated other comprehensive loss for regulatory purposes (15,821 ) (2,011 ) (15,821 ) (2,011 ) Goodwill and other intangibles (32,606 ) (33,626 ) (32,606 ) (33,626 ) Common equity tier 1 capital 341,095 314,532 365,343 331,224 Qualifying trust preferred securities 38,300 38,232 - - Tier 1 capital 379,395 352,764 365,343 331,224 Subordinated debt 40,000 - - - Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 35,677 27,690 35,662 27,690 Total risk-based capital $ 455,072 $ 380,454 $ 401,005 $ 358,914 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE DISCLOSURES [Abstract] | |
Assets and Liabilities Measured at Fair Value | Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows: Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2020: Measured at Fair Value on a Recurring Basis Assets Securities available for sale U.S. agency $ 10,748 $ - $ 10,748 $ - U.S. agency residential mortgage-backed 344,582 - 344,582 - U.S. agency commercial mortgage-backed 7,195 - 7,195 - Private label mortgage-backed 42,829 - 42,829 - Other asset backed 254,181 - 254,181 - Obligations of states and political subdivisions 324,293 - 324,293 - Corporate 86,017 - 86,017 - Trust preferred 1,798 - 1,798 - Foreign government 516 - 516 - Loans held for sale, carried at fair value 92,434 - 92,434 - Capitalized mortgage loan servicing rights 16,904 - - 16,904 Derivatives (1) 16,782 - 16,782 - Liabilities Derivatives (2) 11,754 - 11,754 - Measured at Fair Value on a Non-recurring Basis: Assets Impaired loans (3) Commercial Commercial and industrial 1,468 - - 1,468 Commercial real estate 6,586 - - 6,586 Mortgage 1-4 family owner occupied - jumbo - - - - 1-4 family owner occupied - non-jumbo 321 - - 321 1-4 family non-owner occupied 155 - - 155 1-4 family - 2nd lien 324 - - 324 Resort lending 61 - - 61 Installment Boat lending 4 - - 4 Recreational vehicle lending 31 - - 31 Other 124 - - 124 Other real estate (4) 1-4 family owner occupied - non-jumbo 102 - - 102 (1) Included in accrued income and other assets in the Consolidated Statements of Financial Condition. (2) Included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2019: Measured at Fair Value on a Recurring Basis Assets Securities available for sale U.S. agency $ 14,661 $ - $ 14,661 $ - U.S. agency residential mortgage-backed 227,762 - 227,762 - U.S. agency commercial mortgage-backed 10,756 - 10,756 - Private label mortgage-backed 39,693 - 39,693 - Other asset backed 93,886 - 93,886 - Obligations of states and political subdivisions 96,102 - 96,102 - Corporate 33,195 - 33,195 - Trust preferred 1,843 - 1,843 - Foreign government 502 - 502 - Loans held for sale, carried at fair value 69,800 - 69,800 - Capitalized mortgage loan servicing rights 19,171 - - 19,171 Derivatives (1) 5,464 - 5,464 - Liabilities Derivatives (2) 4,402 - 4,402 - Measured at Fair Value on a Non-recurring Basis: Assets Impaired loans (3) Commercial Commercial and industrial 655 - - 655 Commercial real estate 316 - - 316 Mortgage 1-4 family owner occupied - jumbo 987 - - 987 1-4 family owner occupied - non-jumbo 470 - - 470 1-4 family non-owner occupied 281 - - 281 1-4 family - 2nd lien 294 - - 294 Resort lending 245 - - 245 Installment Boat lending 67 - - 67 Recreational vehicle lending 2 - - 2 Other 121 - - 121 Other real estate (4) Mortgage 1-4 family owner occupied - non-jumbo 31 - - 31 Installment - other 28 - - 28 (1) Included in accrued income and other assets in the Consolidated Statements of Financial Condition. (2) Included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. |
Changes in Fair Value for Financial Assets | Changes in fair values of financial assets for which we have elected the fair value option for the years ended December 31 were as follows: Net Gains (Losses) on Assets Total Change in Fair Values Included Securities Available For Sale Mortgage Loans Mortgage Loan Servicing, net in Current Period Earnings (In thousands) 2020 Loans held for sale $ - $ 1,962 $ - $ 1,962 Capitalized mortgage loan servicing rights - - (16,224 ) (16,224 ) 2019 Equity securities at fair value $ 167 $ - $ - $ 167 Loans held for sale - 637 - 637 Capitalized mortgage loan servicing rights - - (9,532 ) (9,532 ) 2018 Trading securities $ (62 ) $ - $ - $ (62 ) Loans held for sale - 413 - 413 Capitalized mortgage loan servicing rights - - (2,323 ) (2,323 ) |
Reconciliation for all Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31 follows: Capitalized Mortgage Loan Servicing Rights 2020 2019 2018 (In thousands) Beginning balance $ 19,171 $ 21,400 $ 15,699 Total losses realized and unrealized: Included in results of operations (16,224 ) (9,532 ) (2,323 ) Included in other comprehensive income (loss) - - - Purchases, issuances, settlements, maturities and calls 13,957 7,303 8,024 Transfers in and/or out of Level 3 - - - Ending balance $ 16,904 $ 19,171 $ 21,400 Amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets and liabilities still held at December 31 $ (16,224 ) $ (9,532 ) $ (2,323 ) |
Quantitative Information About Level 3 Fair Value Measurements Measured on a Recurring Basis and Non-recurring Basis | The fair value of our capitalized mortgage loan servicing rights has been determined based on a valuation model used by an independent third party as discussed above. The significant unobservable inputs used in the fair value measurement of the capitalized mortgage loan servicing rights are discount rate, cost to service, ancillary income, float rate and prepayment rate. Significant changes in all five of these assumptions in isolation would result in significant changes to the value of our capitalized mortgage loan servicing rights. Quantitative information about our Level 3 fair value measurements measured on a recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Range Weighted Average (In thousands) - - - - 2020 Capitalized mortgage loan servicing rights $ 16,904 Present value of net Discount rate 10.00% to 13.00% 10.09 % servicing revenue Cost to service $ 69 to $289 $ 79 Ancillary income 20 to 37 22 Float rate 0.43 % 0.43 % Prepayment rate 7.92% to 64.70% 20.85 2019 Capitalized mortgage loan servicing rights $ 19,171 Present value of net Discount rate 10.00% to 13.00% 10.14 % servicing revenue Cost to service $ 66 to $316 $ 81 Ancillary income 20 to 37 22 Float rate 1.73 % 1.73 % Prepayment rate 7.01% to 69.34% 14.96 Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Range Weighted Average (In thousands) - - - - 2020 Impaired loans Commercial $ 8,054 Sales comparison Adjustment for differences approach between comparable sales (40.0)% to 75.0% 3.8 % Mortgage and Installment (1) 1,020 Sales comparison Adjustment for differences approach between comparable sales (73.3) to 104.6 (1.5 ) Other real estate Mortgage 102 Sales comparison Adjustment for differences approach between comparable sales (13.1) to 2.4 (3.6 ) 2019 Impaired loans Commercial $ 971 Sales comparison Adjustment for differences approach between comparable sales (48.0)% to 19.2% (5.6 )% Mortgage and Installment (1) 2,467 Sales comparison Adjustment for differences approach between comparable sales (25.2) to 49.2 11.5 Other real estate Mortgage and Installment 59 Sales comparison Adjustment for differences approach between comparable sales (11.6) to 5.0 (5.1 ) (1) In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2020 and 2019 certain impaired collateral dependent installment loans totaling approximately $0.16 million and $0.14 million are secured by collateral other than real estate. For the majority of these loans, we apply internal discount rates to industry valuation guides. |
Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance for Loans Held for Sale | The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected at December 31: Aggregate Fair Value Difference Contractual Principal (In thousands) Loans held for sale 2020 $ 92,434 $ 3,856 $ 88,578 2019 69,800 1,894 67,906 2018 44,753 1,257 43,496 |
FAIR VALUES OF FINANCIAL INST_2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract] | |
Estimated Fair Values and Recorded Book Balances | The estimated recorded book balances and fair values at December 31 follow: Fair Value Using Recorded Book Balance Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) 2020 Assets Cash and due from banks $ 56,006 $ 56,006 $ 56,006 $ - $ - Interest bearing deposits 62,699 62,699 62,699 - - Securities available for sale 1,072,159 1,072,159 - 1,072,159 - Federal Home Loan Bank and Federal Reserve Bank Stock 18,427 NA NA NA NA Net loans and loans held for sale 2,790,683 2,794,058 - 92,434 2,701,624 Accrued interest receivable 12,315 12,315 3 3,414 8,898 Derivative financial instruments 16,782 16,782 - 16,782 - Liabilities Deposits with no stated maturity (1) $ 3,198,338 $ 3,198,338 $ 3,198,338 $ - $ - Deposits with stated maturity (1) 439,017 441,457 - 441,457 - Other borrowings 30,012 30,844 - 30,844 - Subordinated debt 39,281 41,417 - 41,417 - Subordinated debentures 39,524 30,265 - 30,265 - Accrued interest payable 601 601 59 542 - Derivative financial instruments 11,754 11,754 - 11,754 - 2019 Assets Cash and due from banks $ 53,295 $ 53,295 $ 53,295 $ - $ - Interest bearing deposits 12,009 12,009 12,009 - - Interest bearing deposits - time 350 350 - 350 - Securities available for sale 518,400 518,400 - 518,400 - Federal Home Loan Bank and Federal Reserve Bank Stock 18,359 NA NA NA NA Net loans and loans held for sale 2,768,675 2,768,817 - 69,800 2,699,017 Accrued interest receivable 10,108 10,108 8 1,752 8,348 Derivative financial instruments 5,464 5,464 - 5,464 - Liabilities Deposits with no stated maturity (1) $ 2,427,190 $ 2,427,190 $ 2,427,190 $ - $ - Deposits with stated maturity (1) 609,537 610,235 - 610,235 - Other borrowings 88,646 88,680 - 88,680 - Subordinated debentures 39,456 33,149 - 33,149 - Accrued interest payable 1,296 1,296 97 1,199 - Derivative financial instruments 4,402 4,402 - 4,402 - NA – Not applicable (1) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $ million and $ million at December 31, 2020 and 2019, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $ million and $ million at December 31, 2020 and 2019, respectively. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) (AOCIL), Net of Tax | A summary of changes in accumulated other comprehensive income (loss) (‘‘AOCIL’’), net of tax during the years ended December 31 follows: Unrealized Gains (Losses) on Securities Available for Sale Dispropor- tionate Tax Effects from Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Total (In thousands) 2020 Balances at beginning of period $ 3,739 $ (5,798 ) $ (1,727 ) $ (3,786 ) Other comprehensive income (loss) before reclassifications 12,294 - (279 ) 12,015 Amounts reclassified from AOCIL (211 ) - 2,006 1,795 Net current period other comprehensive income 12,083 - 1,727 13,810 Balances at end of period $ 15,822 $ (5,798 ) $ - $ 10,024 2019 Balances at beginning of period $ (4,185 ) $ (5,798 ) $ (125 ) $ (10,108 ) Other comprehensive income (loss) before reclassifications 8,035 - (1,266 ) 6,769 Amounts reclassified from AOCIL (111 ) - (336 ) (447 ) Net current period other comprehensive income (loss) 7,924 - (1,602 ) 6,322 Balances at end of period $ 3,739 $ (5,798 ) $ (1,727 ) $ (3,786 ) 2018 Balances at beginning of period $ (470 ) $ (5,798 ) $ 269 $ (5,999 ) Other comprehensive loss before reclassifications (3,671 ) - (207 ) (3,878 ) Amounts reclassified from AOCIL (44 ) - (187 ) (231 ) Net current period other comprehensive loss (3,715 ) - (394 ) (4,109 ) Balances at end of period $ (4,185 ) $ (5,798 ) $ (125 ) $ (10,108 ) |
Reclassifications Out of Each Component of AOCIL | A summary of reclassifications out of each component of AOCIL for the years ended December 31 follows: AOCIL Component Reclassified From AOCIL Affected Line Item in Consolidated Statements of Operations (In thousands) 2020 Unrealized gains (losses) on securities available for sale $ 267 Net gains on securities - Net impairment loss recognized in earnings 267 Total reclassifications before tax 56 Income tax expense $ 211 Reclassifications, net of tax Unrealized gains (losses) on cash flow hedges $ 2,539 Interest expense 533 Income tax expense $ 2,006 Reclassification, net of tax $ (1,795 ) Total reclassifications for the period, net of tax 2019 Unrealized gains (losses) on securities available for sale $ 140 Net gains on securities - Net impairment loss recognized in earnings 140 Total reclassifications before tax 29 Income tax expense $ 111 Reclassifications, net of tax Unrealized gains (losses) on cash flow hedges $ (425 ) Interest expense (89 ) Income tax expense $ (336 ) Reclassification, net of tax $ 447 Total reclassifications for the period, net of tax 2018 Unrealized gains (losses) on securities available for sale $ 56 Net gains on securities - Net impairment loss recognized in earnings 56 Total reclassifications before tax 12 Income tax expense $ 44 Reclassifications, net of tax Unrealized gains (losses) on cash flow hedges $ (237 ) Interest expense (50 ) Income tax expense $ (187 ) Reclassification, net of tax $ 231 Total reclassifications for the period, net of tax |
INDEPENDENT BANK CORPORATION _2
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION [Abstract] | |
Condensed Statements of Financial Condition | CONDENSED STATEMENTS OF FINANCIAL CONDITION December 31, 2020 2019 (In thousands) ASSETS Cash and due from banks $ 10,466 $ 10,505 Interest bearing deposits - time 40,000 10,000 Investment in subsidiaries 418,465 369,861 Accrued income and other assets 805 463 Total Assets $ 469,736 $ 390,829 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debt $ 39,281 $ - Subordinated debentures 39,524 39,456 Accrued expenses and other liabilities 684 575 Shareholders’ equity 390,247 350,798 Total Liabilities and Shareholders’ Equity $ 469,736 $ 390,829 |
Condensed Statements of Operations | CONDENSED STATEMENTS OF OPERATIONS Year Ended December 31, 2020 2019 2018 (In thousands) OPERATING INCOME Dividends from subsidiary $ 24,000 $ 29,000 $ 33,500 Interest income 99 230 160 Other income 42 61 56 Total Operating Income 24,141 29,291 33,716 OPERATING EXPENSES Interest expense 2,893 2,104 1,924 Administrative and other expenses 733 655 748 Total Operating Expenses 3,626 2,759 2,672 Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries 20,515 26,532 31,044 Income tax benefit (937 ) (423 ) (515 ) Income Before Equity in Undistributed Net Income of Subsidiaries 21,452 26,955 31,559 Equity in undistributed net income of subsidiaries 34,700 19,480 8,280 Net Income $ 56,152 $ 46,435 $ 39,839 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2020 2019 2018 (In thousands) Net Income $ 56,152 $ 46,435 $ 39,839 ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES Deferred income tax (benefit) expense (34 ) 1,503 6,620 Share based compensation 89 65 53 Accretion of discount on subordinated debt and debentures 113 68 51 (Increase) decrease in accrued income and other assets (307 ) 891 (1,307 ) Increase in accrued expenses and other liabilities 109 45 21 Equity in undistributed net income of subsidiaries (34,700 ) (19,480 ) (8,280 ) Total Adjustments (34,730 ) (16,908 ) (2,842 ) Net Cash From Operating Activities 21,422 29,527 36,997 CASH FLOW FROM (USED IN) INVESTING ACTIVITIES Purchases of interest bearing deposits - time (85,000 ) (20,000 ) (30,000 ) Maturity of interest bearing deposits - time 55,000 35,000 10,000 Acquisition of business, less cash received - - 431 Net Cash From (Used In) Investing Activities (30,000 ) 15,000 (19,569 ) CASH FLOW FROM (USED IN) FINANCING ACTIVITIES Proceeds from issuance of subordinated debt, net of issuance costs 39,236 - - Dividends paid (17,618 ) (16,554 ) (14,055 ) Proceeds from issuance of common stock 1,907 2,074 1,945 Share based compensation withholding obligation (755 ) (882 ) (1,467 ) Repurchase of common stock (14,231 ) (26,284 ) (12,681 ) Net Cash From (Used In) Financing Activities 8,539 (41,646 ) (26,258 ) Net Increase (Decrease) in Cash and Cash Equivalents (39 ) 2,881 (8,830 ) Cash and Cash Equivalents at Beginning of Year 10,505 7,624 16,454 Cash and Cash Equivalents at End of Year $ 10,466 $ 10,505 $ 7,624 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract] | |
Disaggregation of Revenue Sources by Attribute | Disaggregation of our revenue sources by attribute for the years ended December 31 follow: 2020 Service Charges on Deposit Accounts Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 5,627 $ - $ - $ - $ 5,627 Account service charges 2,017 - - - 2,017 ATM fees - 1,173 - - 1,173 Other - 769 - - 769 Business Overdraft fees 873 - - - 873 ATM fees - 24 - - 24 Other - 342 - - 342 Interchange income - - 11,230 - 11,230 Asset management revenue - - - 1,283 1,283 Transaction based revenue - - - 688 688 Total $ 8,517 $ 2,308 $ 11,230 $ 1,971 $ 24,026 Reconciliation to Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 2,308 Investment and insurance commissions 1,971 Bank owned life insurance 910 Other 2,332 Total $ 7,521 2019 Service Charges on Deposit Accounts Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 7,590 $ - $ - $ - $ 7,590 Account service charges 2,103 - - - 2,103 ATM fees - 1,368 - - 1,368 Other - 965 - - 965 Business Overdraft fees 1,515 - - - 1,515 ATM fees - 35 - - 35 Other - 422 - - 422 Interchange income - - 10,297 - 10,297 Asset management revenue - - - 1,123 1,123 Transaction based revenue - - - 535 535 Total $ 11,208 $ 2,790 $ 10,297 $ 1,658 $ 25,953 Reconciliation to Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 2,790 Investment and insurance commissions 1,658 Bank owned life insurance 1,111 Other 3,723 Total $ 9,282 2018 Service Charges on Deposit Accounts Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 8,285 $ - $ - $ - $ 8,285 Account service charges 2,406 - - - 2,406 ATM fees - 1,423 - - 1,423 Other - 941 - - 941 Business Overdraft fees 1,567 - - - 1,567 ATM fees - 34 - 34 Other - 594 - 594 Interchange income - - 9,905 - 9,905 Asset management revenue - - - 1,100 1,100 Transaction based revenue - - - 871 871 Total $ 12,258 $ 2,992 $ 9,905 $ 1,971 $ 27,126 Reconciliation to Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 2,992 Investment and insurance commissions 1,971 Bank owned life insurance 970 Other 2,827 Total $ 8,760 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)EmployeePaymentSegmentshares | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($)Segment | |
ACCOUNTING POLICIES [Abstract] | |||
Percentage of loan portfolio secured by real estate | 67.00% | ||
Operating Segments [Abstract] | |||
Number of reportable segments | Segment | 1 | 1 | 1 |
Mortgage Loan Servicing Rights [Abstract] | |||
Mortgage loan servicing fees | $ | $ 6.9 | $ 6.2 | $ 5.5 |
Loan Revenue Recognition [Abstract] | |||
Number of past due days for commercial loan, installment loans and payment plan receivables | 90 days | ||
Number of consecutive payments for mortgage loans missed | Payment | 4 | ||
Bank Owned Life Insurance [Abstract] | |||
Number of lives of group flexible premium non-participating variable life insurance contract | Employee | 265 | ||
Minimum [Member] | |||
Finite Lived Intangible Asset Useful Life [Abstract] | |||
Estimated useful lives | 10 years | ||
Maximum [Member] | |||
Finite Lived Intangible Asset Useful Life [Abstract] | |||
Estimated useful lives | 15 years | ||
Building [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life [Abstract] | |||
Estimated useful lives | 39 years | ||
Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life [Abstract] | |||
Estimated useful lives | 7 years | ||
Dividend Reinvestment Plan [Member] | |||
Reserved for Future Issuance [Abstract] | |||
Common stock reserved for issuance (in shares) | 0.1 | ||
Long-Term Incentive Plans [Member] | |||
Reserved for Future Issuance [Abstract] | |||
Common stock reserved for issuance (in shares) | 0.6 |
ACCOUNTING POLICIES, Adoption o
ACCOUNTING POLICIES, Adoption of New Accounting Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Standards [Abstract] | |||
Expected increase in the allowance for loan losses | $ 40 | $ 500 | $ (190) |
ASU 2016-13 [Member] | |||
New Accounting Standards [Abstract] | |||
Allowance for loan losses forecast period | 1 year | ||
ASU 2016-13 [Member] | Minimum [Member] | |||
New Accounting Standards [Abstract] | |||
Expected increase to the allowance for losses related to unfunded loan commitments | $ 500 | ||
ASU 2016-13 [Member] | Maximum [Member] | |||
New Accounting Standards [Abstract] | |||
Expected increase to the allowance for losses related to unfunded loan commitments | 1,500 | ||
ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Minimum [Member] | |||
New Accounting Standards [Abstract] | |||
Expected increase in the allowance for loan losses | 10,500 | ||
ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Maximum [Member] | |||
New Accounting Standards [Abstract] | |||
Expected increase in the allowance for loan losses | $ 12,500 |
RESTRICTIONS ON CASH AND DUE _2
RESTRICTIONS ON CASH AND DUE FROM BANKS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract] | |||
Average reserve balances maintained | $ 0 | $ 9,200 | $ 26,600 |
Reserve balances held at unrelated financial institutions | $ 740 | $ 10 |
SECURITIES (Details)
SECURITIES (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)SecurityGrade | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($) | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | $ 1,052,147 | $ 513,668 | ||
Unrealized Gains | 21,416 | 5,782 | ||
Unrealized Losses | 1,404 | 1,050 | ||
Fair Value | 1,072,159 | 518,400 | ||
OTTI recognized in accumulated other comprehensive income (loss) | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less Than Twelve Months, Fair Value | 148,169 | 130,648 | ||
Less Than Twelve Months, Unrealized Losses | 989 | 535 | ||
Twelve Months or More, Fair Value | 28,257 | 38,343 | ||
Twelve Months or More, Unrealized Losses | 415 | 515 | ||
Total, Fair value | 176,426 | 168,991 | ||
Total, Unrealized Losses | 1,404 | 1,050 | ||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | ||||
Fair value | 878 | |||
Amortized cost | 676 | |||
Non-credit unrealized loss | 0 | |||
Unrealized gain | 202 | |||
Cumulative credit related OTTI | 1,214 | |||
Credit related OTTI recognized in earnings | 0 | $ 0 | $ 0 | |
Number of securities settled which were recorded under OTTI | Security | 1 | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance at beginning of period | 1,214 | $ 1,594 | 1,594 | |
Additions to credit losses on securities for which no previous OTTI was recognized | 0 | 0 | 0 | |
Increases to credit losses on securities for which OTTI was previously recognized | 0 | 0 | 0 | |
Reduction | 0 | (380) | [1] | 0 |
Balance at end of period | 1,214 | 1,214 | $ 1,594 | |
Fair Value Hedge Designation [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Fair Value | (761) | |||
Fixed Income Interest Rate [Member] | Fair Value Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Fair Value | 15 | |||
U.S. Agency [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | 10,456 | 14,591 | ||
Unrealized Gains | 305 | 89 | ||
Unrealized Losses | 13 | 19 | ||
Fair Value | 10,748 | 14,661 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less Than Twelve Months, Fair Value | 1,469 | 2,782 | ||
Less Than Twelve Months, Unrealized Losses | 3 | 8 | ||
Twelve Months or More, Fair Value | 2,329 | 2,712 | ||
Twelve Months or More, Unrealized Losses | 10 | 11 | ||
Total, Fair value | 3,798 | 5,494 | ||
Total, Unrealized Losses | $ 13 | 19 | ||
Number of securities with market fair value less than amortized cost | Security | 25 | |||
U.S. Agency Residential Mortgage-Backed [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | $ 340,224 | 226,130 | ||
Unrealized Gains | 4,951 | 1,910 | ||
Unrealized Losses | 593 | 278 | ||
Fair Value | 344,582 | 227,762 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less Than Twelve Months, Fair Value | 96,839 | 56,377 | ||
Less Than Twelve Months, Unrealized Losses | 592 | 126 | ||
Twelve Months or More, Fair Value | 83 | 13,551 | ||
Twelve Months or More, Unrealized Losses | 1 | 152 | ||
Total, Fair value | 96,922 | 69,928 | ||
Total, Unrealized Losses | $ 593 | 278 | ||
Number of securities with market fair value less than amortized cost | Security | 37 | |||
U.S. Agency Commercial Mortgage-Backed [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | $ 6,869 | 10,671 | ||
Unrealized Gains | 326 | 113 | ||
Unrealized Losses | 0 | 28 | ||
Fair Value | 7,195 | 10,756 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less Than Twelve Months, Fair Value | 3,284 | |||
Less Than Twelve Months, Unrealized Losses | 24 | |||
Twelve Months or More, Fair Value | 659 | |||
Twelve Months or More, Unrealized Losses | 4 | |||
Total, Fair value | 3,943 | |||
Total, Unrealized Losses | 28 | |||
Private Label Mortgage-Backed [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | 41,429 | 39,248 | ||
Unrealized Gains | 1,539 | 544 | ||
Unrealized Losses | 139 | 99 | ||
Fair Value | 42,829 | 39,693 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less Than Twelve Months, Fair Value | 11,838 | 16,387 | ||
Less Than Twelve Months, Unrealized Losses | 95 | 55 | ||
Twelve Months or More, Fair Value | 2,050 | 343 | ||
Twelve Months or More, Unrealized Losses | 44 | 44 | ||
Total, Fair value | 13,888 | 16,730 | ||
Total, Unrealized Losses | $ 139 | 99 | ||
Number of securities with market fair value less than amortized cost | Security | 20 | |||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | ||||
Number of private label mortgage backed securities currently with OTTI unrealized gains | Security | 2 | |||
Senior Security [Member] | ||||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | ||||
Fair value | $ 373 | |||
Amortized cost | 350 | |||
Non-credit unrealized loss | 0 | |||
Unrealized gain | 23 | |||
Cumulative credit related OTTI | 757 | |||
Super Senior Security [Member] | ||||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | ||||
Fair value | 505 | |||
Amortized cost | 326 | |||
Non-credit unrealized loss | 0 | |||
Unrealized gain | 179 | |||
Cumulative credit related OTTI | 457 | |||
Other Asset Backed [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | 252,596 | 94,158 | ||
Unrealized Gains | 1,796 | 103 | ||
Unrealized Losses | 211 | 375 | ||
Fair Value | 254,181 | 93,886 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less Than Twelve Months, Fair Value | 7,142 | 34,027 | ||
Less Than Twelve Months, Unrealized Losses | 25 | 233 | ||
Twelve Months or More, Fair Value | 21,197 | 13,839 | ||
Twelve Months or More, Unrealized Losses | 186 | 142 | ||
Total, Fair value | 28,339 | 47,866 | ||
Total, Unrealized Losses | $ 211 | 375 | ||
Number of securities with market fair value less than amortized cost | Security | 33 | |||
Obligations of States and Political Subdivisions [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | $ 315,795 | 94,499 | ||
Unrealized Gains | 8,676 | 1,724 | ||
Unrealized Losses | 178 | 121 | ||
Fair Value | 324,293 | 96,102 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less Than Twelve Months, Fair Value | 28,957 | 15,666 | ||
Less Than Twelve Months, Unrealized Losses | 177 | 84 | ||
Twelve Months or More, Fair Value | 800 | 5,396 | ||
Twelve Months or More, Unrealized Losses | 1 | 37 | ||
Total, Fair value | 29,757 | 21,062 | ||
Total, Unrealized Losses | $ 178 | 121 | ||
Number of securities with market fair value less than amortized cost | Security | 27 | |||
Corporate [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | $ 82,307 | 31,904 | ||
Unrealized Gains | 3,807 | 1,296 | ||
Unrealized Losses | 97 | 5 | ||
Fair Value | 86,017 | 33,195 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less Than Twelve Months, Fair Value | 1,924 | 2,125 | ||
Less Than Twelve Months, Unrealized Losses | 97 | 5 | ||
Twelve Months or More, Fair Value | 0 | 0 | ||
Twelve Months or More, Unrealized Losses | 0 | 0 | ||
Total, Fair value | 1,924 | 2,125 | ||
Total, Unrealized Losses | $ 97 | 5 | ||
Number of securities with market fair value less than amortized cost | Security | 4 | |||
Trust Preferred [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | $ 1,971 | 1,968 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 173 | 125 | ||
Fair Value | 1,798 | 1,843 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less Than Twelve Months, Fair Value | 0 | 0 | ||
Less Than Twelve Months, Unrealized Losses | 0 | 0 | ||
Twelve Months or More, Fair Value | 1,798 | 1,843 | ||
Twelve Months or More, Unrealized Losses | 173 | 125 | ||
Total, Fair value | 1,798 | 1,843 | ||
Total, Unrealized Losses | $ 173 | 125 | ||
Number of securities with market fair value less than amortized cost | Security | 2 | |||
Number of issues rated as investment grade | Grade | 1 | |||
Number of securities not rated | Security | 1 | |||
Non-rated securities, amortized cost | $ 1,000 | |||
Fair value of non-rated trust preferred securities | 870 | |||
Foreign Government [Member] | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||||
Amortized cost | 500 | 499 | ||
Unrealized Gains | 16 | 3 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | $ 516 | $ 502 | ||
[1] | During 2019 one security with previously recorded OTTI was settled and balance is now zero. |
SECURITIES, Amortized Cost and
SECURITIES, Amortized Cost and Fair Value Securities Available for Sale Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Maturing within one year | $ 21,244 | |
Maturing after one year but within five years | 79,837 | |
Maturing after five years but within ten years | 76,454 | |
Maturing after ten years | 233,494 | |
Amortized cost | 411,029 | |
U.S. agency residential mortgage-backed | 340,224 | |
U.S. agency commercial mortgage-backed | 6,869 | |
Private label mortgage-backed | 41,429 | |
Other asset backed | 252,596 | |
Amortized cost | 1,052,147 | $ 513,668 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Maturing within one year | 21,412 | |
Maturing after one year but within five years | 82,725 | |
Maturing after five years but within ten years | 80,060 | |
Maturing after ten years | 239,175 | |
Total available-for-sale securities fair value | 423,372 | |
U.S. agency residential mortgage-backed | 344,582 | |
U.S. agency commercial mortgage-backed | 7,195 | |
Private label mortgage-backed | 42,829 | |
Other asset backed | 254,181 | |
Total | $ 1,072,159 | $ 518,400 |
SECURITIES, Gains and Losses Re
SECURITIES, Gains and Losses Realized on Sale of Securities Available for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Gain and losses realized on sale of securities available for sale [Abstract] | ||||
Proceeds | $ 38,095 | $ 68,716 | $ 48,736 | |
Realized gains | 271 | 248 | 192 | [1] |
Realized losses | 4 | 108 | 136 | |
Trading securities, realized gain (losses) | 170 | (60) | ||
Gains (losses) related to preferred stock held for sale | 0 | (60) | ||
Pledged securities with book value | $ 14,000 | $ 8,700 | ||
Shareholder equity threshold not exceeded by revenue or taxing authority amount | 10.00% | 10.00% | ||
VISA Class B Common Stock [Member] | ||||
Gain and losses realized on sale of securities available for sale [Abstract] | ||||
Realized gains | $ 144 | |||
Number securities sold (in shares) | 1,000 | |||
[1] | 2018 excludes a $0.144 million gain on the sale of 1,000 VISA Class B shares. |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Loans [Abstract] | ||||
Total Loans | $ 2,733,678 | $ 2,725,023 | ||
Net of deferred loan costs | 14,600 | 16,300 | ||
Proceeds from sale of loans | 2,395 | 50,516 | $ 27,658 | |
Gain (loss) on sale of loans | 62,560 | 19,978 | 10,597 | |
Residential Fixed Rate Mortgage [Member] | Freddie Mac [Member] | ||||
Loans [Abstract] | ||||
Proceeds from sale of loans | 26,300 | 10,900 | ||
Gain (loss) on sale of loans | 720 | (100) | ||
Residential Fixed and Adjustable Rate Mortgage [Member] | ||||
Loans [Abstract] | ||||
Proceeds from sale of loans | 9,900 | 27,600 | ||
Gain (loss) on sale of loans | 70 | $ 40 | ||
Real Estate [Member] | Residential First Mortgages [Member] | ||||
Loans [Abstract] | ||||
Total Loans | [1] | 792,762 | 843,746 | |
Real Estate [Member] | Residential Home Equity and Other Junior Mortgages [Member] | ||||
Loans [Abstract] | ||||
Total Loans | [1] | 138,128 | 166,735 | |
Real Estate [Member] | Construction and Land Development [Member] | ||||
Loans [Abstract] | ||||
Total Loans | [1] | 232,693 | 249,747 | |
Real Estate [Member] | Other [Member] | ||||
Loans [Abstract] | ||||
Total Loans | [1],[2] | 669,150 | 693,580 | |
Consumer [Member] | ||||
Loans [Abstract] | ||||
Total Loans | 468,090 | 448,297 | ||
Commercial [Member] | ||||
Loans [Abstract] | ||||
Total Loans | 429,011 | 318,504 | ||
Agricultural [Member] | ||||
Loans [Abstract] | ||||
Total Loans | 3,844 | 4,414 | ||
Mortgage [Member] | ||||
Loans [Abstract] | ||||
Total Loans | 1,015,926 | 1,098,911 | ||
Mortgage [Member] | Residential Adjustable Rate Mortgage [Member] | ||||
Loans [Abstract] | ||||
Proceeds from sale of loans | 40,600 | |||
Gain (loss) on sale of loans | 10 | |||
Mortgage [Member] | Residential Fixed Rate Mortgage [Member] | ||||
Loans [Abstract] | ||||
Proceeds from sale of loans | 2,400 | |||
Gain (loss) on sale of loans | $ 70 | |||
Mortgage [Member] | Residential Fixed Rate Mortgage [Member] | Freddie Mac [Member] | ||||
Loans [Abstract] | ||||
Proceeds from sale of loans | 65,100 | |||
Gain (loss) on sale of loans | $ 1,700 | |||
[1] | Includes both residential and non-residential commercial loans secured by real estate. | |||
[2] | Includes loans secured by multi-family residential and non-farm, non-residential property. |
LOANS, Allowance for Loan Losse
LOANS, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | $ 26,148 | $ 24,888 | $ 22,587 | |
Additions (deductions) [Abstract] | ||||
Provision for loan losses | 12,463 | 824 | 1,503 | |
Recoveries credited to allowance | 3,069 | 3,961 | 4,622 | |
Loans charged against the allowance | (6,251) | (3,525) | (3,824) | |
Balance at end of period | 35,429 | 26,148 | 24,888 | |
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 5,581 | 6,155 | ||
Collectively evaluated for impairment | 29,848 | 19,993 | ||
Total ending allowance for loan losses balance | 35,429 | 26,148 | ||
Loans [Abstract] | ||||
Individually evaluated for impairment | 50,672 | 55,892 | ||
Collectively evaluated for impairment | 2,690,880 | 2,675,193 | ||
Total loans recorded investment | 2,742,577 | 2,733,370 | ||
Accrued interest included in recorded investment | 8,899 | 8,347 | ||
Total Loans | 2,733,678 | 2,725,023 | ||
Loans Acquired with Deteriorated Credit Quality [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans [Abstract] | ||||
Loans acquired with deteriorated credit quality | 1,025 | 2,285 | ||
Commercial [Member] | ||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | 7,922 | 7,090 | 5,595 | |
Additions (deductions) [Abstract] | ||||
Provision for loan losses | 1,751 | (651) | (946) | |
Recoveries credited to allowance | 1,804 | 2,165 | 2,889 | |
Loans charged against the allowance | (4,076) | (682) | (448) | |
Balance at end of period | 7,401 | 7,922 | 7,090 | |
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 1,266 | 1,031 | ||
Collectively evaluated for impairment | 6,135 | 6,891 | ||
Total ending allowance for loan losses balance | 7,401 | 7,922 | ||
Loans [Abstract] | ||||
Individually evaluated for impairment | 9,431 | 9,393 | ||
Collectively evaluated for impairment | 1,236,052 | 1,158,906 | ||
Total loans recorded investment | 1,245,951 | 1,169,693 | ||
Accrued interest included in recorded investment | 3,536 | 2,998 | ||
Total Loans | 1,242,415 | 1,166,695 | ||
Commercial [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans [Abstract] | ||||
Loans acquired with deteriorated credit quality | 468 | 1,394 | ||
Mortgage [Member] | ||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | 8,216 | 7,978 | 8,733 | |
Additions (deductions) [Abstract] | ||||
Provision for loan losses | (915) | 526 | 457 | |
Recoveries credited to allowance | 513 | 933 | 734 | |
Loans charged against the allowance | (816) | (1,221) | (1,946) | |
Balance at end of period | 6,998 | 8,216 | 7,978 | |
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 4,124 | 4,863 | ||
Collectively evaluated for impairment | 2,874 | 3,353 | ||
Total ending allowance for loan losses balance | 6,998 | 8,216 | ||
Loans [Abstract] | ||||
Individually evaluated for impairment | 39,245 | 43,574 | ||
Collectively evaluated for impairment | 980,449 | 1,058,917 | ||
Total loans recorded investment | 1,020,104 | 1,103,066 | ||
Accrued interest included in recorded investment | [1] | 4,178 | 4,155 | |
Total Loans | 1,015,926 | 1,098,911 | ||
Mortgage [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans [Abstract] | ||||
Loans acquired with deteriorated credit quality | 410 | 575 | ||
Installment [Member] | ||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | 1,283 | 895 | 864 | |
Additions (deductions) [Abstract] | ||||
Provision for loan losses | 436 | 1,147 | 462 | |
Recoveries credited to allowance | 752 | 863 | 999 | |
Loans charged against the allowance | (1,359) | (1,622) | (1,430) | |
Balance at end of period | 1,112 | 1,283 | 895 | |
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 191 | 261 | ||
Collectively evaluated for impairment | 921 | 1,022 | ||
Total ending allowance for loan losses balance | 1,112 | 1,283 | ||
Loans [Abstract] | ||||
Individually evaluated for impairment | 1,996 | 2,925 | ||
Collectively evaluated for impairment | 474,379 | 457,370 | ||
Total loans recorded investment | 476,522 | 460,611 | ||
Accrued interest included in recorded investment | [1] | 1,185 | 1,194 | |
Total Loans | 475,337 | 459,417 | ||
Installment [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans [Abstract] | ||||
Loans acquired with deteriorated credit quality | 147 | 316 | ||
Subjective Allocation [Member] | ||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | 8,727 | 8,925 | 7,395 | |
Additions (deductions) [Abstract] | ||||
Provision for loan losses | 11,191 | (198) | 1,530 | |
Recoveries credited to allowance | 0 | 0 | 0 | |
Loans charged against the allowance | 0 | 0 | 0 | |
Balance at end of period | 19,918 | 8,727 | $ 8,925 | |
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 19,918 | 8,727 | ||
Total ending allowance for loan losses balance | 19,918 | 8,727 | ||
Subjective Allocation [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 | ||
[1] | Credit scores have been updated within the last twelve months. |
LOANS, Receivables Past Due (De
LOANS, Receivables Past Due (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Non performing loans [Abstract] | ||||
Accrued Interest | $ 500 | $ 400 | $ 400 | |
Interest Income | 0 | 0 | $ 0 | |
Accrued interest included in recorded investment | 8,899 | 8,347 | ||
Loans Past Due, 90+ days [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | 0 | 0 | ||
Commercial and Industrial [Member] | ||||
Non performing loans [Abstract] | ||||
Government guaranteed loans excluded from non-performing loans | 53 | 77 | ||
1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Non performing loans [Abstract] | ||||
Government guaranteed loans excluded from non-performing loans | 386 | 569 | ||
Commercial [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | 3,536 | 2,998 | ||
Mortgage [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 4,178 | 4,155 | |
Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 1,301 | 1,139 | |
Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 1,641 | 1,662 | |
Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 587 | 586 | |
Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 373 | 502 | |
Mortgage [Member] | Resort Lending [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 276 | 266 | |
Installment [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 1,185 | 1,194 | |
Installment [Member] | Boat Lending [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 572 | 490 | |
Installment [Member] | Recreational Vehicle Lending [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 457 | 378 | |
Installment [Member] | Other [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [1] | 156 | 326 | |
Non-Performing Loans [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2] | 0 | 0 | |
Non-Accrual | [2] | 7,873 | 9,532 | |
Total Non-performing Loans | [2] | 7,873 | 9,532 | |
Accrued interest included in recorded investment | [2] | 0 | 0 | |
Non-Performing Loans [Member] | Loans Past Due, 90+ days [Member] | ||||
Non performing loans [Abstract] | ||||
Accrued interest included in recorded investment | [2] | 0 | 0 | |
Non-Performing Loans [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2],[3] | 0 | 0 | |
Non-Accrual | [2],[3] | 1,387 | 565 | |
Total Non-performing Loans | [2],[3] | 1,387 | 565 | |
Non-Performing Loans [Member] | Commercial [Member] | Commercial Real Estate [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2] | 0 | 0 | |
Non-Accrual | [2] | 0 | 735 | |
Total Non-performing Loans | [2] | 0 | 735 | |
Non-Performing Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2] | 0 | 0 | |
Non-Accrual | [2] | 623 | 1,179 | |
Total Non-performing Loans | [2] | 623 | 1,179 | |
Non-Performing Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2],[4] | 0 | 0 | |
Non-Accrual | [2],[4] | 2,281 | 3,540 | |
Total Non-performing Loans | [2],[4] | 2,281 | 3,540 | |
Non-Performing Loans [Member] | Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2] | 0 | 0 | |
Non-Accrual | [2] | 1,112 | 1,039 | |
Total Non-performing Loans | [2] | 1,112 | 1,039 | |
Non-Performing Loans [Member] | Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2] | 0 | 0 | |
Non-Accrual | [2] | 1,344 | 979 | |
Total Non-performing Loans | [2] | 1,344 | 979 | |
Non-Performing Loans [Member] | Mortgage [Member] | Resort Lending [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2] | 0 | 0 | |
Non-Accrual | [2] | 607 | 690 | |
Total Non-performing Loans | [2] | 607 | 690 | |
Non-Performing Loans [Member] | Installment [Member] | Boat Lending [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2] | 0 | 0 | |
Non-Accrual | [2] | 52 | 332 | |
Total Non-performing Loans | [2] | 52 | 332 | |
Non-Performing Loans [Member] | Installment [Member] | Recreational Vehicle Lending [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2] | 0 | 0 | |
Non-Accrual | [2] | 74 | 3 | |
Total Non-performing Loans | [2] | 74 | 3 | |
Non-Performing Loans [Member] | Installment [Member] | Other [Member] | ||||
Non performing loans [Abstract] | ||||
90+ and Still Accruing | [2] | 0 | 0 | |
Non-Accrual | [2] | 393 | 470 | |
Total Non-performing Loans | [2] | $ 393 | $ 470 | |
[1] | Credit scores have been updated within the last twelve months. | |||
[2] | Non-performing loans exclude purchase credit impaired loans. | |||
[3] | Non-performing commercial and industrial loans exclude $0.053 million and $0.077 million of government guaranteed loans at December 31, 2020 and 2019, respectively. | |||
[4] | Non-performing 1-4 family owner occupied – non jumbo loans exclude $0.386 million and $0.569 million of government guaranteed loans at December 31, 2020 and 2019, respectively. |
LOANS, Aging Analysis of Loans
LOANS, Aging Analysis of Loans by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | $ 2,742,577 | $ 2,733,370 | |
Accrued interest included in recorded investment | 8,899 | 8,347 | |
Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 12,817 | 7,449 | |
Accrued interest included in recorded investment | 147 | 74 | |
Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 1,446 | 2,936 | |
Accrued interest included in recorded investment | 22 | 34 | |
Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 3,008 | 4,091 | |
Accrued interest included in recorded investment | 0 | 0 | |
Loans Past Due Total [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 17,271 | 14,476 | |
Accrued interest included in recorded investment | 169 | 108 | |
Loans Not Past Due [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Loans not Past Due | 2,725,306 | 2,718,894 | |
Accrued interest included in recorded investment | 8,730 | 8,239 | |
Commercial [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | 1,245,951 | 1,169,693 | |
Accrued interest included in recorded investment | 3,536 | 2,998 | |
Commercial [Member] | Commercial and Industrial [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 5,204 | 391 | |
Loans not Past Due | 671,115 | 564,480 | |
Total loans recorded investment | 676,319 | 564,871 | |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 5,003 | 0 | |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 131 | 289 | |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 70 | 102 | |
Commercial [Member] | Commercial Real Estate [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 2,600 | 912 | |
Loans not Past Due | 567,032 | 603,910 | |
Total loans recorded investment | 569,632 | 604,822 | |
Commercial [Member] | Commercial Real Estate [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 2,600 | 177 | |
Commercial [Member] | Commercial Real Estate [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 0 | 0 | |
Commercial [Member] | Commercial Real Estate [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 0 | 735 | |
Mortgage [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | 1,020,104 | 1,103,066 | |
Accrued interest included in recorded investment | [1] | 4,178 | 4,155 |
Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 1,384 | 2,794 | |
Loans not Past Due | 438,794 | 398,759 | |
Total loans recorded investment | 440,178 | 401,553 | |
Accrued interest included in recorded investment | [1] | 1,301 | 1,139 |
Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 761 | 1,757 | |
Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 0 | 1,037 | |
Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 623 | 0 | |
Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 2,843 | 4,911 | |
Loans not Past Due | 264,730 | 342,349 | |
Total loans recorded investment | 267,573 | 347,260 | |
Accrued interest included in recorded investment | [1] | 1,641 | 1,662 |
Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 1,888 | 2,672 | |
Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 453 | 852 | |
Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 502 | 1,387 | |
Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 1,799 | 1,454 | |
Loans not Past Due | 157,977 | 168,083 | |
Total loans recorded investment | 159,776 | 169,537 | |
Accrued interest included in recorded investment | [1] | 587 | 586 |
Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 1,184 | 695 | |
Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 139 | 136 | |
Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 476 | 623 | |
Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 1,670 | 1,385 | |
Loans not Past Due | 92,860 | 115,157 | |
Total loans recorded investment | 94,530 | 116,542 | |
Accrued interest included in recorded investment | [1] | 373 | 502 |
Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 710 | 909 | |
Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 228 | 90 | |
Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 732 | 386 | |
Mortgage [Member] | Resort Lending [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 585 | 982 | |
Loans not Past Due | 57,462 | 67,192 | |
Total loans recorded investment | 58,047 | 68,174 | |
Accrued interest included in recorded investment | [1] | 276 | 266 |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 32 | 364 | |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 195 | 53 | |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 358 | 565 | |
Installment [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | 476,522 | 460,611 | |
Accrued interest included in recorded investment | [1] | 1,185 | 1,194 |
Installment [Member] | Boat Lending [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 196 | 532 | |
Loans not Past Due | 207,317 | 202,750 | |
Total loans recorded investment | 207,513 | 203,282 | |
Accrued interest included in recorded investment | [1] | 572 | 490 |
Installment [Member] | Boat Lending [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 95 | 337 | |
Installment [Member] | Boat Lending [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 101 | 107 | |
Installment [Member] | Boat Lending [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 0 | 88 | |
Installment [Member] | Recreational Vehicle Lending [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 292 | 261 | |
Loans not Past Due | 169,282 | 153,184 | |
Total loans recorded investment | 169,574 | 153,445 | |
Accrued interest included in recorded investment | [1] | 457 | 378 |
Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 207 | 161 | |
Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 37 | 97 | |
Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 48 | 3 | |
Installment [Member] | Other [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 698 | 854 | |
Loans not Past Due | 98,737 | 103,030 | |
Total loans recorded investment | 99,435 | 103,884 | |
Accrued interest included in recorded investment | [1] | 156 | 326 |
Installment [Member] | Other [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 337 | 377 | |
Installment [Member] | Other [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | 162 | 275 | |
Installment [Member] | Other [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total recorded investment | $ 199 | $ 202 | |
[1] | Credit scores have been updated within the last twelve months. |
LOANS, Impaired Financing Recei
LOANS, Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired loan with no allocated allowance for loan losses [Abstract] | |||
TDR | $ 93 | $ 337 | |
Non - TDR | 1,367 | 1,550 | |
Impaired loans with an allocated allowance for loan losses [Abstract] | |||
TDR - allowance based on collateral | 9,027 | 1,587 | |
TDR - allowance based on present value cash flow | 37,953 | 48,798 | |
Non - TDR - allowance based on collateral | 1,873 | 3,365 | |
Total impaired loans | 50,313 | 55,637 | |
Amount of allowance for loan losses allocated [Abstract] | |||
TDR - allowance based on collateral | 1,058 | 542 | |
TDR - allowance based on present value cash flow | 3,755 | 4,641 | |
Non - TDR - allowance based on collateral | 768 | 972 | |
Total amount of allowance for loan losses allocated | 5,581 | 6,155 | |
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 1,460 | 1,887 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 1,865 | 2,115 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 49,212 | 54,005 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 51,105 | 56,708 | |
Recorded Investment | 50,672 | 55,892 | |
Unpaid Principal Balance | 52,970 | 58,823 | |
Related Allowance | 5,581 | 6,155 | |
Accrued interest included in recorded investment | 359 | 255 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 1,724 | 789 | $ 1,396 |
Interest Income Recognized, with no related allowance for loan losses recorded | 23 | 13 | 58 |
Average Recorded Investment, with an allowance for loan losses recorded | 55,600 | 55,428 | 61,529 |
Interest Income Recognized, with an allowance for loan losses recorded | 4,828 | 2,978 | 3,052 |
Average Recorded Investment | 57,324 | 56,217 | 62,925 |
Interest Income Recognized | 4,851 | 2,991 | 3,110 |
Commercial [Member] | Commercial and Industrial [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 77 | 257 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 80 | 257 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 2,227 | 1,655 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 2,370 | 1,706 | |
Recorded Investment | 2,304 | 1,912 | |
Unpaid Principal Balance | 2,450 | 1,963 | |
Related Allowance | 756 | 453 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 125 | 51 | 378 |
Interest Income Recognized, with no related allowance for loan losses recorded | 9 | 0 | 20 |
Average Recorded Investment, with an allowance for loan losses recorded | 2,230 | 2,256 | 2,641 |
Interest Income Recognized, with an allowance for loan losses recorded | 242 | 72 | 127 |
Average Recorded Investment | 2,355 | 2,307 | 3,019 |
Interest Income Recognized | 251 | 72 | 147 |
Commercial [Member] | Commercial Real Estate [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 796 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 796 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 7,127 | 6,685 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 7,096 | 6,661 | |
Recorded Investment | 7,127 | 7,481 | |
Unpaid Principal Balance | 7,096 | 7,457 | |
Related Allowance | 510 | 578 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 159 | 278 | 961 |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 5 | 0 |
Average Recorded Investment, with an allowance for loan losses recorded | 10,751 | 5,778 | 5,199 |
Interest Income Recognized, with an allowance for loan losses recorded | 1,043 | 315 | 288 |
Average Recorded Investment | 10,910 | 6,056 | 6,160 |
Interest Income Recognized | 1,043 | 320 | 288 |
Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 623 | 0 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 629 | 0 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 506 | 1,447 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 880 | 1,445 | |
Recorded Investment | 1,129 | 1,447 | |
Unpaid Principal Balance | 1,509 | 1,445 | |
Related Allowance | 50 | 91 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 408 | 0 | 41 |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 |
Average Recorded Investment, with an allowance for loan losses recorded | 1,083 | 995 | 1,335 |
Interest Income Recognized, with an allowance for loan losses recorded | 84 | 39 | 69 |
Average Recorded Investment | 1,491 | 995 | 1,376 |
Interest Income Recognized | 84 | 39 | 69 |
Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 212 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 217 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 21,655 | 10,163 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 22,311 | 10,695 | |
Recorded Investment | 21,655 | 10,375 | |
Unpaid Principal Balance | 22,311 | 10,912 | |
Related Allowance | 2,300 | 1,031 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 252 | 201 | 15 |
Interest Income Recognized, with no related allowance for loan losses recorded | 4 | 0 | 27 |
Average Recorded Investment, with an allowance for loan losses recorded | 19,624 | 15,183 | 28,183 |
Interest Income Recognized, with an allowance for loan losses recorded | 2,033 | 594 | 1,408 |
Average Recorded Investment | 19,876 | 15,384 | 28,198 |
Interest Income Recognized | 2,037 | 594 | 1,435 |
Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 305 | 214 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 473 | 366 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 4,335 | 4,962 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 4,704 | 5,542 | |
Recorded Investment | 4,640 | 5,176 | |
Unpaid Principal Balance | 5,177 | 5,908 | |
Related Allowance | 495 | 572 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 308 | 123 | 0 |
Interest Income Recognized, with no related allowance for loan losses recorded | 10 | 0 | 0 |
Average Recorded Investment, with an allowance for loan losses recorded | 4,664 | 2,874 | 5,475 |
Interest Income Recognized, with an allowance for loan losses recorded | 375 | 291 | 314 |
Average Recorded Investment | 4,972 | 2,997 | 5,475 |
Interest Income Recognized | 385 | 291 | 314 |
Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 301 | 407 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 304 | 438 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 811 | 14,059 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 829 | 15,243 | |
Recorded Investment | 1,112 | 14,466 | |
Unpaid Principal Balance | 1,133 | 15,681 | |
Related Allowance | 200 | 1,695 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 380 | 136 | 0 |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 7 | 0 |
Average Recorded Investment, with an allowance for loan losses recorded | 3,376 | 13,383 | 284 |
Interest Income Recognized, with an allowance for loan losses recorded | 22 | 809 | 12 |
Average Recorded Investment | 3,756 | 13,519 | 284 |
Interest Income Recognized | 22 | 816 | 12 |
Mortgage [Member] | Resort Lending [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 154 | 0 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 379 | 0 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 10,555 | 12,110 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 10,764 | 12,263 | |
Recorded Investment | 10,709 | 12,110 | |
Unpaid Principal Balance | 11,143 | 12,263 | |
Related Allowance | 1,079 | 1,474 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 92 | 0 | 0 |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 |
Average Recorded Investment, with an allowance for loan losses recorded | 11,316 | 11,697 | 14,687 |
Interest Income Recognized, with an allowance for loan losses recorded | 799 | 669 | 606 |
Average Recorded Investment | 11,408 | 11,697 | 14,687 |
Interest Income Recognized | 799 | 669 | 606 |
Installment [Member] | Boat Lending [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 0 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 7 | 0 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 11 | 0 | |
Recorded Investment | 7 | 0 | |
Unpaid Principal Balance | 11 | 0 | |
Related Allowance | 2 | 0 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 |
Average Recorded Investment, with an allowance for loan losses recorded | 59 | 54 | 1 |
Interest Income Recognized, with an allowance for loan losses recorded | 1 | 0 | 0 |
Average Recorded Investment | 59 | 54 | 1 |
Interest Income Recognized | 1 | 0 | 0 |
Installment [Member] | Recreational Vehicle Lending [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 0 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 87 | 0 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 100 | 0 | |
Recorded Investment | 87 | 0 | |
Unpaid Principal Balance | 100 | 0 | |
Related Allowance | 19 | 0 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 |
Average Recorded Investment, with an allowance for loan losses recorded | 81 | 22 | 84 |
Interest Income Recognized, with an allowance for loan losses recorded | 4 | 0 | 4 |
Average Recorded Investment | 81 | 22 | 84 |
Interest Income Recognized | 4 | 0 | 4 |
Installment [Member] | Other [Member] | |||
Impaired Loans by class [Abstract] | |||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 1 | |
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 41 | |
With no related allowance for loan losses recorded | 0 | 0 | |
Recorded Investment, with an allowance for loan losses recorded | 1,902 | 2,924 | |
Unpaid Principal Balance, with an allowance for loan losses recorded | 2,040 | 3,153 | |
Recorded Investment | 1,902 | 2,925 | |
Unpaid Principal Balance | 2,040 | 3,194 | |
Related Allowance | 170 | 261 | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 1 |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 1 | 11 |
Average Recorded Investment, with an allowance for loan losses recorded | 2,416 | 3,186 | 3,640 |
Interest Income Recognized, with an allowance for loan losses recorded | 225 | 189 | 224 |
Average Recorded Investment | 2,416 | 3,186 | 3,641 |
Interest Income Recognized | $ 225 | $ 190 | $ 235 |
LOANS, Troubled Debt Restructur
LOANS, Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)ContractPayment | Dec. 31, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | ||
Troubled Debt Restructuring [Abstract] | ||||
Troubled debt restructuring | $ 47,073 | $ 50,722 | ||
Number of consecutive timely payments required | Payment | 6 | |||
Troubled debt restructuring, specific reserve | $ 4,800 | 5,200 | ||
Additional amounts committed to lend as troubled debt restructurings | $ 70 | $ 50 | ||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 24 | 24 | 34 | |
Pre-modification recorded balance | $ 8,822 | $ 4,336 | $ 3,089 | |
Post-modification recorded balance | 8,848 | 4,342 | 3,092 | |
Increase (decrease) in allowance for loan losses | 40 | 500 | (190) | |
Charge offs due to troubled debt restructurings | $ 0 | $ 0 | $ 0 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 2 | 1 | |
Recorded Balance | $ 0 | $ 31 | $ 13 | |
Past due period for modified loans | 90 days | |||
Number of consecutive payments for mortgage loans missed | Payment | 4 | |||
Increase (decrease) in allowance for loan loss due to TDRs that subsequently defaulted | $ 0 | 0 | 0 | |
Charge-offs on TDRs that subsequently defaulted | $ 0 | 0 | $ 0 | |
Minimum [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Modification of stated interest rate of loans, range of period | 9 months | |||
Modifications involving extension of maturity date, period range | 1 month | |||
Maximum [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Modification of stated interest rate of loans, range of period | 36 months | |||
Modification of stated interest rate of loans, range of period in certain circumstances | 480 months | |||
Modifications involving extension of maturity date, period range | 60 months | |||
Modifications involving extension of maturity date, period range in certain circumstances | 230 months | |||
Performing TDR's [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Troubled debt restructuring | $ 44,341 | 47,575 | ||
Non-performing TDR's [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Troubled debt restructuring | [1] | 2,732 | 3,147 | |
Commercial [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Troubled debt restructuring | 9,104 | 8,514 | ||
Commercial [Member] | Performing TDR's [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Troubled debt restructuring | 7,956 | 7,974 | ||
Commercial [Member] | Non-performing TDR's [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Troubled debt restructuring | [1] | $ 1,148 | $ 540 | |
Commercial [Member] | Commercial and Industrial [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 7 | 8 | 7 | |
Pre-modification recorded balance | $ 1,207 | $ 1,609 | $ 652 | |
Post-modification recorded balance | $ 1,207 | $ 1,609 | $ 652 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 1 | 0 | |
Recorded Balance | $ 0 | $ 19 | $ 0 | |
Commercial [Member] | Commercial Real Estate [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 4 | 3 | 2 | |
Pre-modification recorded balance | $ 7,012 | $ 1,479 | $ 204 | |
Post-modification recorded balance | $ 7,012 | $ 1,479 | $ 204 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 0 | |
Recorded Balance | $ 0 | $ 0 | $ 0 | |
Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 1 | |
Pre-modification recorded balance | $ 0 | $ 0 | $ 419 | |
Post-modification recorded balance | $ 0 | $ 0 | $ 419 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 0 | |
Recorded Balance | $ 0 | $ 0 | $ 0 | |
Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 5 | 2 | 9 | |
Pre-modification recorded balance | $ 357 | $ 478 | $ 991 | |
Post-modification recorded balance | $ 374 | $ 483 | $ 994 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 1 | 0 | |
Recorded Balance | $ 0 | $ 12 | $ 0 | |
Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 2 | 1 | 0 | |
Pre-modification recorded balance | $ 111 | $ 507 | $ 0 | |
Post-modification recorded balance | $ 116 | $ 505 | $ 0 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 0 | |
Recorded Balance | $ 0 | $ 0 | $ 0 | |
Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 2 | 3 | 0 | |
Pre-modification recorded balance | $ 44 | $ 75 | $ 0 | |
Post-modification recorded balance | $ 46 | $ 75 | $ 0 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 0 | |
Recorded Balance | $ 0 | $ 0 | $ 0 | |
Mortgage [Member] | Resort Lending [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 1 | |
Pre-modification recorded balance | $ 0 | $ 0 | $ 115 | |
Post-modification recorded balance | $ 0 | $ 0 | $ 114 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 0 | |
Recorded Balance | $ 0 | $ 0 | $ 0 | |
Installment [Member] | Boat Lending [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 0 | |
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | |
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 0 | |
Recorded Balance | $ 0 | $ 0 | $ 0 | |
Installment [Member] | Recreational Vehicle Lending [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 0 | |
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | |
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 0 | |
Recorded Balance | $ 0 | $ 0 | $ 0 | |
Installment [Member] | Other [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | 4 | 7 | 14 | |
Pre-modification recorded balance | $ 91 | $ 188 | $ 708 | |
Post-modification recorded balance | $ 93 | $ 191 | $ 709 | |
TDR that subsequently defaulted [Abstract] | ||||
Number of contracts | Contract | 0 | 0 | 1 | |
Recorded Balance | $ 0 | $ 0 | $ 13 | |
Retail [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Troubled debt restructuring | [2] | 37,969 | 42,208 | |
Retail [Member] | Performing TDR's [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Troubled debt restructuring | [2] | 36,385 | 39,601 | |
Retail [Member] | Non-performing TDR's [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Troubled debt restructuring | [1],[2],[3] | $ 1,584 | $ 2,607 | |
[1] | Included in non-performing loans table above. | |||
[2] | Retail loans include mortgage and installment loan portfolio segments. | |||
[3] | Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. |
LOANS, Non-TDR Loan Modificatio
LOANS, Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") Due to COVID-19 (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($)LoanApplication | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Interest only period for Commercial loans | 3 months | ||||
Suspended payments period for Retail loans | 3 months | ||||
Total Loans | $ 2,733,678 | $ 2,725,023 | |||
Percentage of total loans, COVID-19 Accomodations | 0.80% | ||||
Allowance for loan losses | $ 35,429 | 26,148 | $ 24,888 | $ 22,587 | |
Interest and fees on loans | 123,159 | 133,883 | 116,865 | ||
Paycheck Protection Program [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Total Loans | $ 169,800 | ||||
Number of outstanding loans | Loan | 1,483 | ||||
Allowance for loan losses | $ 0 | ||||
Number of loan forgiveness applications processed and approved | Application | 755 | ||||
Amount of loan forgiveness applications processed and approved | $ 92,000 | ||||
Interest and fees on loans | 5,600 | ||||
Remaining unaccreted net fees | 3,200 | ||||
Paycheck Protection Program Second Draw Loans [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Total Loans | 0 | ||||
Commercial [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Total Loans | $ 1,242,415 | 1,166,695 | |||
Percentage of total loans, COVID-19 Accomodations | 0.00% | ||||
Allowance for loan losses | $ 7,401 | 7,922 | 7,090 | 5,595 | |
Mortgage [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Total Loans | $ 1,015,926 | 1,098,911 | |||
Percentage of total loans, COVID-19 Accomodations | 2.00% | ||||
Allowance for loan losses | $ 6,998 | 8,216 | 7,978 | 8,733 | |
Installment [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Total Loans | $ 475,337 | 459,417 | |||
Percentage of total loans, COVID-19 Accomodations | 0.30% | ||||
Allowance for loan losses | $ 1,112 | $ 1,283 | $ 895 | $ 864 | |
Mortgage Loans Serviced for Others [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Total Loans | [1] | $ 2,984,088 | |||
Percentage of total loans, COVID-19 Accomodations | [1] | 1.40% | |||
COVID-19 Accomodations [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Number of loans with Covid 19 Accommodations | Loan | 184 | ||||
Non-TDR loan modifications, portfolio loans outstanding | $ 21,405 | ||||
COVID-19 Accomodations [Member] | Commercial [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Number of loans with Covid 19 Accommodations | Loan | 2 | ||||
Non-TDR loan modifications, portfolio loans outstanding | $ 163 | ||||
COVID-19 Accomodations [Member] | Mortgage [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Number of loans with Covid 19 Accommodations | Loan | 134 | ||||
Non-TDR loan modifications, portfolio loans outstanding | $ 19,830 | ||||
COVID-19 Accomodations [Member] | Installment [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Number of loans with Covid 19 Accommodations | Loan | 48 | ||||
Non-TDR loan modifications, portfolio loans outstanding | $ 1,412 | ||||
COVID-19 Accomodations [Member] | Mortgage Loans Serviced for Others [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Number of loans with Covid 19 Accommodations | Loan | [1] | 288 | |||
Non-TDR loan modifications, portfolio loans outstanding | [1] | $ 42,897 | |||
COVID-19 Subsequent Accommodation [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Number of loans with Covid 19 Accommodations | Loan | [2] | 137 | |||
Non-TDR loan modifications, portfolio loans outstanding | [2] | $ 16,212 | |||
COVID-19 Subsequent Accommodation [Member] | Commercial [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Number of loans with Covid 19 Accommodations | Loan | [2] | 2 | |||
Non-TDR loan modifications, portfolio loans outstanding | [2] | $ 163 | |||
COVID-19 Subsequent Accommodation [Member] | Mortgage [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Number of loans with Covid 19 Accommodations | Loan | [2] | 100 | |||
Non-TDR loan modifications, portfolio loans outstanding | [2] | $ 15,004 | |||
COVID-19 Subsequent Accommodation [Member] | Installment [Member] | |||||
Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract] | |||||
Number of loans with Covid 19 Accommodations | Loan | [2] | 35 | |||
Non-TDR loan modifications, portfolio loans outstanding | [2] | $ 1,045 | |||
[1] | We have delegated authority from all investors to grant these deferrals on their behalf. | ||||
[2] | Subsequent accommodations are extensions of the original accommodations that were given as summarized in the paragraph above. |
LOANS, Loan Ratings by Loan Cla
LOANS, Loan Ratings by Loan Class, Commercial (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | $ 2,742,577 | $ 2,733,370 |
Accrued interest included in total | 8,899 | 8,347 |
Commercial [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 1,245,951 | 1,169,693 |
Accrued interest included in total | 3,536 | 2,998 |
Commercial [Member] | Non-Watch 1-6 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 1,199,208 | 1,096,471 |
Accrued interest included in total | 3,408 | 2,763 |
Commercial [Member] | Watch 7-8 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 38,743 | 67,420 |
Accrued interest included in total | 105 | 205 |
Commercial [Member] | Substandard Accrual 9 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 6,613 | 4,502 |
Accrued interest included in total | 23 | 30 |
Commercial [Member] | Non Accrual 10-11 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 1,387 | 1,300 |
Accrued interest included in total | 0 | 0 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 676,319 | 564,871 |
Commercial [Member] | Commercial and Industrial [Member] | Non-Watch 1-6 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 637,826 | 515,955 |
Commercial [Member] | Commercial and Industrial [Member] | Watch 7-8 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 32,765 | 44,384 |
Commercial [Member] | Commercial and Industrial [Member] | Substandard Accrual 9 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 4,341 | 3,967 |
Commercial [Member] | Commercial and Industrial [Member] | Non Accrual 10-11 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 1,387 | 565 |
Commercial [Member] | Commercial Real Estate [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 569,632 | 604,822 |
Commercial [Member] | Commercial Real Estate [Member] | Non-Watch 1-6 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 561,382 | 580,516 |
Commercial [Member] | Commercial Real Estate [Member] | Watch 7-8 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 5,978 | 23,036 |
Commercial [Member] | Commercial Real Estate [Member] | Substandard Accrual 9 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | 2,272 | 535 |
Commercial [Member] | Commercial Real Estate [Member] | Non Accrual 10-11 [Member] | ||
Loan ratings/credit scores by loan class [Abstract] | ||
Loans | $ 0 | $ 735 |
LOANS, Loan Ratings by Loan C_2
LOANS, Loan Ratings by Loan Class, Mortgage and Installment Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | $ 8,899 | $ 8,347 | |
Mortgage [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 148,768 | 141,630 |
750-799 | [1] | 445,611 | 474,044 |
700-749 | [1] | 241,589 | 281,835 |
650-699 | [1] | 115,484 | 119,052 |
600-649 | [1] | 38,341 | 47,236 |
550-599 | [1] | 15,934 | 17,061 |
500-549 | [1] | 11,309 | 13,499 |
Under 500 | [1] | 3,068 | 3,972 |
Unknown | [1] | 0 | 4,737 |
Total | [1] | 1,020,104 | 1,103,066 |
Accrued interest included in total | [1] | 4,178 | 4,155 |
Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 61,077 | 48,486 |
750-799 | [1] | 223,177 | 198,491 |
700-749 | [1] | 101,086 | 106,609 |
650-699 | [1] | 40,296 | 31,553 |
600-649 | [1] | 11,146 | 13,230 |
550-599 | [1] | 0 | 514 |
500-549 | [1] | 3,396 | 1,519 |
Under 500 | [1] | 0 | 641 |
Unknown | [1] | 0 | 510 |
Total | [1] | 440,178 | 401,553 |
Accrued interest included in total | [1] | 1,301 | 1,139 |
Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 40,187 | 43,848 |
750-799 | [1] | 70,642 | 111,521 |
700-749 | [1] | 75,489 | 95,064 |
650-699 | [1] | 44,344 | 51,174 |
600-649 | [1] | 18,519 | 21,938 |
550-599 | [1] | 11,021 | 12,308 |
500-549 | [1] | 5,129 | 7,940 |
Under 500 | [1] | 2,242 | 2,208 |
Unknown | [1] | 0 | 1,259 |
Total | [1] | 267,573 | 347,260 |
Accrued interest included in total | [1] | 1,641 | 1,662 |
Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 25,468 | 24,315 |
750-799 | [1] | 82,124 | 84,656 |
700-749 | [1] | 30,326 | 34,839 |
650-699 | [1] | 13,182 | 13,995 |
600-649 | [1] | 4,303 | 5,897 |
550-599 | [1] | 2,388 | 1,863 |
500-549 | [1] | 1,580 | 1,870 |
Under 500 | [1] | 405 | 533 |
Unknown | [1] | 0 | 1,569 |
Total | [1] | 159,776 | 169,537 |
Accrued interest included in total | [1] | 587 | 586 |
Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 12,490 | 13,905 |
750-799 | [1] | 42,138 | 50,012 |
700-749 | [1] | 22,962 | 30,697 |
650-699 | [1] | 11,269 | 14,267 |
600-649 | [1] | 2,703 | 4,097 |
550-599 | [1] | 1,608 | 1,703 |
500-549 | [1] | 1,012 | 1,281 |
Under 500 | [1] | 348 | 511 |
Unknown | [1] | 0 | 69 |
Total | [1] | 94,530 | 116,542 |
Accrued interest included in total | [1] | 373 | 502 |
Mortgage [Member] | Resort Lending [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 9,546 | 11,076 |
750-799 | [1] | 27,530 | 29,364 |
700-749 | [1] | 11,726 | 14,626 |
650-699 | [1] | 6,393 | 8,063 |
600-649 | [1] | 1,670 | 2,074 |
550-599 | [1] | 917 | 673 |
500-549 | [1] | 192 | 889 |
Under 500 | [1] | 73 | 79 |
Unknown | [1] | 0 | 1,330 |
Total | [1] | 58,047 | 68,174 |
Accrued interest included in total | [1] | 276 | 266 |
Installment [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 70,608 | 60,122 |
750-799 | [1] | 257,091 | 244,127 |
700-749 | [1] | 96,961 | 99,749 |
650-699 | [1] | 40,121 | 41,269 |
600-649 | [1] | 7,118 | 8,135 |
550-599 | [1] | 2,511 | 3,422 |
500-549 | [1] | 1,392 | 1,968 |
Under 500 | [1] | 210 | 615 |
Unknown | [1] | 510 | 1,204 |
Total | [1] | 476,522 | 460,611 |
Accrued interest included in total | [1] | 1,185 | 1,194 |
Installment [Member] | Boat Lending [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 32,231 | 28,041 |
750-799 | [1] | 123,689 | 118,380 |
700-749 | [1] | 38,223 | 41,490 |
650-699 | [1] | 10,189 | 11,485 |
600-649 | [1] | 2,083 | 2,254 |
550-599 | [1] | 661 | 946 |
500-549 | [1] | 342 | 377 |
Under 500 | [1] | 95 | 309 |
Unknown | [1] | 0 | 0 |
Total | [1] | 207,513 | 203,282 |
Accrued interest included in total | [1] | 572 | 490 |
Installment [Member] | Recreational Vehicle Lending [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 29,223 | 24,470 |
750-799 | [1] | 95,890 | 88,164 |
700-749 | [1] | 33,476 | 31,055 |
650-699 | [1] | 8,794 | 7,267 |
600-649 | [1] | 1,305 | 1,411 |
550-599 | [1] | 551 | 592 |
500-549 | [1] | 283 | 464 |
Under 500 | [1] | 52 | 22 |
Unknown | [1] | 0 | 0 |
Total | [1] | 169,574 | 153,445 |
Accrued interest included in total | [1] | 457 | 378 |
Installment [Member] | Other [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 9,154 | 7,611 |
750-799 | [1] | 37,512 | 37,583 |
700-749 | [1] | 25,262 | 27,204 |
650-699 | [1] | 21,138 | 22,517 |
600-649 | [1] | 3,730 | 4,470 |
550-599 | [1] | 1,299 | 1,884 |
500-549 | [1] | 767 | 1,127 |
Under 500 | [1] | 63 | 284 |
Unknown | [1] | 510 | 1,204 |
Total | [1] | 99,435 | 103,884 |
Accrued interest included in total | [1] | $ 156 | $ 326 |
[1] | Credit scores have been updated within the last twelve months. |
LOANS, Loans Serviced for Other
LOANS, Loans Serviced for Others (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)PSARateqtr | Dec. 31, 2019USD ($)PSARate | Dec. 31, 2018USD ($) | |
Mortgage loans serviced for others [Abstract] | |||
Mortgage loans serviced | $ 2,984,088 | $ 2,581,166 | |
Custodial deposit accounts | $ 40,500 | 29,900 | |
Maximum number of consecutive quarterly losses recorded for profitability requirement | qtr | 4 | ||
Percentage of decline in net worth during the period | 30.00% | ||
Maximum percentage of decline in net worth for one consecutive quarter | 25.00% | ||
Maximum percentage of decline in net worth for two consecutive quarters | 40.00% | ||
Highest level of capital, Amount | $ 2,500 | ||
Highest level of capital | 0.25% | ||
Analysis of capitalized mortgage loan servicing rights [Abstract] | |||
Balance at beginning of period | $ 19,171 | 21,400 | |
Balance at beginning of period | $ 15,699 | ||
Originated servicing rights capitalized | 13,957 | 7,303 | 4,977 |
Servicing rights acquired | 0 | 0 | 3,047 |
Change in fair value due to price | (10,833) | (6,408) | 191 |
Change in fair value due to pay downs | (5,391) | (3,124) | (2,514) |
Balance at end of year | 16,904 | 19,171 | 21,400 |
Loans sold and serviced that have had servicing rights capitalized | $ 2,982,833 | $ 2,580,705 | $ 2,333,081 |
Average coupon rate | 3.77% | 4.22% | |
Average servicing fee | 0.257% | 0.258% | |
Average discount rate | 10.09% | 10.14% | |
Average PSA Rate | PSARate | 348 | 250 | |
Fannie Mae [Member] | |||
Mortgage loans serviced for others [Abstract] | |||
Mortgage loans serviced | $ 1,656,060 | $ 1,449,935 | |
Freddie Mac [Member] | |||
Mortgage loans serviced for others [Abstract] | |||
Mortgage loans serviced | 1,095,877 | 852,123 | |
Ginnie Mae [Member] | |||
Mortgage loans serviced for others [Abstract] | |||
Mortgage loans serviced | 181,615 | 180,941 | |
FHLB [Member] | |||
Mortgage loans serviced for others [Abstract] | |||
Mortgage loans serviced | 39,294 | 69,149 | |
Other [Member] | |||
Mortgage loans serviced for others [Abstract] | |||
Mortgage loans serviced | $ 11,242 | $ 29,018 |
LOANS, Purchase Credit Impaired
LOANS, Purchase Credit Impaired ("PCI") Loans (Details) - TCSB Bancorp, Inc. [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Carrying amount of loans that meet the criteria of ASC 310-30 treatment [Abstract] | ||
Carrying amount | $ 1,025 | $ 2,285 |
Allowance for loan losses | 0 | 0 |
Carrying amount, net of allowance for loan losses | 1,025 | 2,285 |
Accretable yield of PCI loans, or income expected to be collected [Roll Forward] | ||
Balance at beginning of period | 640 | 462 |
New loans purchased | 0 | 0 |
Accretion of income | (280) | (187) |
Reclassification from (to) nonaccretable difference | 0 | 365 |
Disposals/other adjustments | 0 | 0 |
Balance at end of period | 360 | 640 |
Commercial [Member] | ||
Carrying amount of loans that meet the criteria of ASC 310-30 treatment [Abstract] | ||
Carrying amount | 468 | 1,394 |
Mortgage [Member] | ||
Carrying amount of loans that meet the criteria of ASC 310-30 treatment [Abstract] | ||
Carrying amount | 410 | 575 |
Installment [Member] | ||
Carrying amount of loans that meet the criteria of ASC 310-30 treatment [Abstract] | ||
Carrying amount | $ 147 | $ 316 |
OTHER REAL ESTATE (Details)
OTHER REAL ESTATE (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Other Real Estate [Roll Forward] | ||||||
Balance at beginning of year, net of valuation allowance | $ 1,715 | [1] | $ 1,178 | [1] | $ 1,628 | |
Loans transferred to other real estate | 332 | [1] | 2,242 | [1] | 1,510 | |
Sales of other real estate | (1,161) | [1] | (1,438) | [1] | (1,822) | |
Additions to valuation allowance charged to expense | (148) | [1] | (267) | [1] | (138) | |
Balance at end of year, net of valuation allowance | [1] | 738 | 1,715 | 1,178 | ||
Other repossessed assets | 30 | 150 | ||||
Real Estate Owned Valuation Allowance [Roll Forward] | ||||||
Balance at beginning of year | 92 | 144 | 123 | |||
Additions charged to expense | 148 | 267 | 138 | |||
Direct write-downs upon sale | (150) | (319) | (117) | |||
Balance at end of year | 90 | 92 | $ 144 | |||
Foreclosed residential real estate | 700 | 1,200 | ||||
Mortgage loans in process of foreclosure | 300 | 700 | ||||
Other real estate and repossessed assets | $ 766 | $ 1,865 | ||||
[1] | Table excludes other repossessed assets totaling $0.03 million and $0.15 million at December 31, 2020 and 2019, respectively. |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | $ 146,833 | $ 146,035 | |
Accumulated depreciation and amortization | (110,706) | (107,624) | |
Property and equipment, net | 36,127 | 38,411 | |
Depreciation expense | 5,300 | 5,200 | $ 5,100 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 17,083 | 17,478 | |
Buildings [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 57,208 | 57,363 | |
Equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | $ 72,542 | $ 71,194 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortized intangible assets - core deposits [Abstract] | |||
Gross Carrying Amount | $ 11,916 | $ 11,916 | |
Accumulated Amortization | 7,610 | 6,590 | |
Unamortized intangible assets - goodwill [Abstract] | |||
Gross Carrying Amount | 28,300 | 28,300 | |
Intangible amortization expense | 1,000 | $ 1,100 | $ 1,000 |
Summary of estimated core deposit intangible amortization [Abstract] | |||
2021 | 970 | ||
2022 | 785 | ||
2023 | 547 | ||
2024 | 516 | ||
2025 | 487 | ||
2026 and thereafter | 1,001 | ||
Total | $ 4,306 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of interest expense on deposits [Abstract] | |||
Savings and interest-bearing checking | $ 2,264 | $ 5,371 | $ 4,146 |
Reciprocal | 2,158 | 6,024 | 1,292 |
Time | 7,073 | 7,148 | 5,343 |
Brokered time | 1,171 | 4,882 | 3,697 |
Total | 12,666 | 23,425 | $ 14,478 |
Aggregate amount of time deposits of $250,000 or more | 50,000 | 71,500 | |
Time Deposits denominations amount | 250 | 250 | |
Summary of the maturity of time deposits [Abstract] | |||
2021 | 370,497 | ||
2022 | 40,671 | ||
2023 | 16,717 | ||
2024 | 5,072 | ||
2025 | 5,457 | ||
2026 and thereafter | 603 | ||
Total | 439,017 | ||
Summary of reciprocal deposits [Abstract] | |||
Demand | 515,092 | 383,953 | |
Money market | 3,308 | 4,416 | |
Time | 37,785 | 42,658 | |
Total | $ 556,185 | $ 431,027 |
OTHER BORROWINGS (Details)
OTHER BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of other borrowings [Abstract] | |||
Advances from the FHLB | $ 30,000 | $ 63,640 | |
Federal funds purchased | 0 | 25,000 | |
Other | 12 | 6 | |
Total | 30,012 | 88,646 | |
Federal Home Loan Banks [Abstract] | |||
Federal home loan bank stock | 8,600 | ||
Unused borrowing capacity with FHLB | 772,800 | ||
Interest expense on FHLB advances | 500 | 700 | $ 1,000 |
FHLB advances prepaid | $ 0 | 0 | 0 |
FHLB stock as percentages of outstanding advances | 4.50% | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | |||
Total FHLB advances, Amount | $ 30,000 | $ 63,640 | |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | |||
Total FHLB advances, Rate | 0.74% | 1.47% | |
Short-term Debt [Abstract] | |||
Interest expense on federal funds purchased | $ 10 | $ 80 | 100 |
Available for sale and loans, pledged to secure other borrowings | $ 1,900,000 | ||
Minimum [Member] | |||
Federal Home Loan Banks [Abstract] | |||
Federal home loan bank, advances, interest rate | 132.00% | ||
FHLB stock as percentages of unpaid principal balance | 0.75% | ||
Maximum [Member] | |||
Federal Home Loan Banks [Abstract] | |||
Federal home loan bank, advances, interest rate | 165.00% | ||
Fixed-Rate Advances [Member] | |||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | |||
2020 | 28,645 | ||
2022 | $ 0 | 4,995 | |
2026 and thereafter | $ 30,000 | $ 30,000 | |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | |||
2020, Rate | 2.19% | ||
2022, Rate | 0.00% | 1.69% | |
2026 and thereafter, Rate | 0.74% | 0.74% | |
Federal Reserve Bank Advances [Member] | |||
Short-term Debt [Abstract] | |||
Borrowings | $ 0 | $ 0 | |
Average borrowings | 1,546 | $ 305 | $ 3 |
Unused borrowing capacity | $ 492,000 |
SUBORDINATED DEBT AND DEBENTU_3
SUBORDINATED DEBT AND DEBENTURES, Subordinated Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | May 31, 2020 | Dec. 31, 2019 | |
Subordinated Debt [Abstract] | |||
Subordinated debt | $ 39,281 | $ 0 | |
Subordinated Debt [Member] | |||
Subordinated Debt [Abstract] | |||
Subordinated notes issued | $ 40,000 | ||
Maturity period | 10 years | ||
Maturity date | May 31, 2030 | ||
Call option period | 5 years | ||
Coupon rate | 5.95% | ||
Fixed coupon rate percentage, period | 5 years | ||
Subordinated debt | $ 39,300 | ||
Unamortized deferred issuance costs | $ 700 | ||
Subordinated Debt [Member] | SOFR [Member] | |||
Subordinated Debt [Abstract] | |||
Basis spread on variable rate | 5.825% |
SUBORDINATED DEBT AND DEBENTU_4
SUBORDINATED DEBT AND DEBENTURES, Subordinated Debentures (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)qtr | Dec. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |
SUBORDINATED DEBT AND DEBENTURES [Abstract] | |||
Trust preferred securities | $ 38,300 | $ 38,200 | |
Summary of information regarding subordinated debentures [Abstract] | |||
Subordinated Debentures | $ 39,524 | 39,456 | |
Summary of subordinated debentures and trust preferred securities [Abstract] | |||
Distribution deferral period, maximum quarters | qtr | 20 | ||
IBC Capital Finance III [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Issue Date | May 30, 2007 | ||
Summary of subordinated debentures and trust preferred securities [Abstract] | |||
Maturity Date | Jul. 30, 2037 | ||
Interest Rate Spread | 1.60% | ||
First Permitted Redemption Date | Jul. 30, 2012 | ||
IBC Capital Finance III [Member] | LIBOR [Member] | |||
Summary of subordinated debentures and trust preferred securities [Abstract] | |||
Term of Variable Rate | 3 months | ||
IBC Capital Finance IV [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Issue Date | Sep. 30, 2007 | ||
Summary of subordinated debentures and trust preferred securities [Abstract] | |||
Maturity Date | Sep. 15, 2037 | ||
Interest Rate Spread | 2.85% | ||
First Permitted Redemption Date | Sep. 15, 2012 | ||
IBC Capital Finance IV [Member] | LIBOR [Member] | |||
Summary of subordinated debentures and trust preferred securities [Abstract] | |||
Term of Variable Rate | 3 months | ||
Midwest Guaranty Trust I [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Issue Date | Nov. 30, 2002 | ||
Summary of subordinated debentures and trust preferred securities [Abstract] | |||
Maturity Date | Nov. 7, 2032 | ||
Interest Rate Spread | 3.45% | ||
First Permitted Redemption Date | Nov. 7, 2007 | ||
Midwest Guaranty Trust I [Member] | LIBOR [Member] | |||
Summary of subordinated debentures and trust preferred securities [Abstract] | |||
Term of Variable Rate | 3 months | ||
TCSB Statutory Trust I [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Issue Date | Mar. 31, 2005 | ||
Summary of subordinated debentures and trust preferred securities [Abstract] | |||
Maturity Date | Mar. 17, 2035 | ||
Interest Rate Spread | 2.20% | ||
First Permitted Redemption Date | Mar. 17, 2010 | ||
TCSB Statutory Trust I [Member] | LIBOR [Member] | |||
Summary of subordinated debentures and trust preferred securities [Abstract] | |||
Term of Variable Rate | 3 months | ||
Subordinated Debentures Subject to Mandatory Redemption [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Subordinated Debentures | $ 39,524 | 39,456 | |
Subordinated Debentures Subject to Mandatory Redemption [Member] | IBC Capital Finance III [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Subordinated Debentures | 12,372 | 12,372 | |
Subordinated Debentures Subject to Mandatory Redemption [Member] | IBC Capital Finance IV [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Subordinated Debentures | 15,465 | 15,465 | |
Subordinated Debentures Subject to Mandatory Redemption [Member] | Midwest Guaranty Trust I [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Subordinated Debentures | 7,732 | 7,732 | |
Subordinated Debentures Subject to Mandatory Redemption [Member] | TCSB Statutory Trust I [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Subordinated Debentures | 5,155 | 5,155 | |
Discount | (1,200) | (1,268) | $ (1,400) |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Trust Preferred Securities Issued | 38,300 | 38,232 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | IBC Capital Finance III [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Trust Preferred Securities Issued | 12,000 | 12,000 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | IBC Capital Finance IV [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Trust Preferred Securities Issued | 15,000 | 15,000 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Midwest Guaranty Trust I [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Trust Preferred Securities Issued | 7,500 | 7,500 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | TCSB Statutory Trust I [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Trust Preferred Securities Issued | 5,000 | 5,000 | |
Discount | (1,200) | (1,268) | |
Common Stock Subject to Mandatory Redemption [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Common Stock Issued | 1,224 | 1,224 | |
Common Stock Subject to Mandatory Redemption [Member] | IBC Capital Finance III [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Common Stock Issued | 372 | 372 | |
Common Stock Subject to Mandatory Redemption [Member] | IBC Capital Finance IV [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Common Stock Issued | 465 | 465 | |
Common Stock Subject to Mandatory Redemption [Member] | Midwest Guaranty Trust I [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Common Stock Issued | 232 | 232 | |
Common Stock Subject to Mandatory Redemption [Member] | TCSB Statutory Trust I [Member] | |||
Summary of information regarding subordinated debentures [Abstract] | |||
Common Stock Issued | 155 | 155 | |
Discount | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 26, 2021$ / shares | |
Fair Value, Off-balance Sheet Risks [Abstract] | ||||
Loss reimbursement on sold loans | $ 200 | $ 230 | $ 10 | |
Loss reimbursement reserve on sold mortgage loans | $ 1,000 | 900 | ||
VISA Class A Common Stock [Member] | ||||
Investment Owned [Abstract] | ||||
Current conversion ratio | 1.6228 | |||
VISA Class A Common Stock [Member] | Subsequent Event [Member] | ||||
Investment Owned [Abstract] | ||||
Closing price (in dollars per share) | $ / shares | $ 212.39 | |||
VISA Class B Common Stock [Member] | ||||
Investment Owned [Abstract] | ||||
Number of shares owned (in shares) | shares | 12,566 | |||
Current value of shares owned | $ 4,300 | |||
Commitments to Extend Credit [Member] | ||||
Fair Value, Off-balance Sheet Risks [Abstract] | ||||
Financial instruments risk represented by contract amounts | 644,815 | 582,457 | ||
Standby Letters of Credit [Member] | ||||
Fair Value, Off-balance Sheet Risks [Abstract] | ||||
Financial instruments risk represented by contract amounts | $ 9,361 | $ 7,207 | ||
Standby Letters of Credit [Member] | Minimum [Member] | ||||
Fair Value, Off-balance Sheet Risks [Abstract] | ||||
Variable interest rate | 2.50% | |||
Standby Letters of Credit [Member] | Maximum [Member] | ||||
Fair Value, Off-balance Sheet Risks [Abstract] | ||||
Variable interest rate | 12.00% |
SHAREHOLDERS' EQUITY AND INCO_3
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE, Shareholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Share Repurchase Plan [Abstract] | ||||
Stock repurchased (in shares) | 708,956 | 1,204,688 | 587,969 | |
Stock repurchased | $ 14,231 | $ 26,284 | $ 12,681 | |
Common Stock [Member] | ||||
Share Repurchase Plan [Abstract] | ||||
Share repurchase plan percentage of shares authorized to be repurchased | 5.00% | 5.00% | 5.00% | |
Number of shares authorized for repurchase (in shares) | 300,000 | |||
Stock repurchased (in shares) | 708,956 | 1,204,688 | 587,969 | |
Stock repurchased | $ 14,231 | $ 26,284 | $ 12,681 |
SHAREHOLDERS' EQUITY AND INCO_4
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE, Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Earnings Per Share Reconciliation [Abstract] | ||||
Net income | $ 56,152 | $ 46,435 | $ 39,839 | |
Weighted average shares outstanding (in shares) | [1] | 21,977 | 22,894 | 23,412 |
Stock units for deferred compensation plan for non-employee directors (in shares) | 121 | 132 | 128 | |
Effect of stock options (in shares) | 90 | 115 | 176 | |
Performance share units (in shares) | 33 | 42 | 53 | |
Weighted average shares outstanding for calculation of diluted earnings per share (in shares) | 22,221 | 23,183 | 23,769 | |
Net income per common share [Abstract] | ||||
Basic (in dollars per share) | [1] | $ 2.56 | $ 2.03 | $ 1.70 |
Diluted (in dollars per share) | $ 2.53 | $ 2 | $ 1.68 | |
Stock Options [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Antidilutive shares excluded from computation of diluted loss per share (in shares) | 0 | 0 | 0 | |
[1] | Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax expense [Abstract] | |||
Current expense | $ 15,459 | $ 10,237 | $ 0 |
Deferred expense (benefit) | (2,130) | 1,088 | 9,294 |
Income tax expense | $ 13,329 | $ 11,325 | $ 9,294 |
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
Reconciliation of income tax expense [Abstract] | |||
Statutory rate applied to income before income tax | $ 14,591 | $ 12,130 | $ 10,318 |
Tax-exempt income | (690) | (375) | (383) |
Unrecognized tax benefit | (206) | (134) | (162) |
Share-based compensation | (204) | (204) | (367) |
Bank owned life insurance | (196) | (233) | (229) |
Non-deductible meals, entertainment and memberships | 57 | 86 | 85 |
Other, net | (23) | 55 | 32 |
Income tax expense | 13,329 | 11,325 | 9,294 |
Deferred tax assets [Abstract] | |||
Allowance for loan losses | 7,363 | 5,355 | |
Lease liabilities | 1,652 | 1,744 | |
Property and equipment | 1,047 | 1,528 | |
Share based compensation | 742 | 808 | |
Reserve for unfunded lending commitments | 379 | 324 | |
Deferred compensation | 321 | 285 | |
Loss reimbursement on sold loans reserve | 214 | 185 | |
Non accrual loan interest income | 203 | 173 | |
Other than temporary impairment charge on securities available for sale | 144 | 147 | |
Vehicle service contract counterparty contingency reserve | 26 | 38 | |
Unrealized loss on derivative financial instruments | 0 | 459 | |
Gross deferred tax assets | 12,091 | 11,046 | |
Deferred tax liabilities [Abstract] | |||
Capitalized mortgage loan servicing rights | 3,550 | 4,026 | |
Deferred loan fees | 1,901 | 1,852 | |
Lease right of use asset | 1,606 | 1,739 | |
Unrealized gain on securities available for sale | 4,206 | 994 | |
Purchase premiums, net | 509 | 293 | |
Federal Home Loan Bank stock | 27 | 27 | |
Other | 17 | 43 | |
Gross deferred tax liabilities | 11,816 | 8,974 | |
Deferred tax assets, net | 275 | 2,072 | |
Changes in unrecognized tax benefits [Roll Forward] | |||
Balance at beginning of year | 438 | 588 | 724 |
Additions based on tax positions related to the current year | 15 | 20 | 26 |
Reductions due to the statute of limitations | (273) | (170) | (162) |
Reductions due to settlements | 0 | 0 | 0 |
Balance at end of year | 180 | 438 | 588 |
Unrecognized tax benefits of effective tax rate | 40 | ||
Penalties and interest expense | 0 | 0 | 0 |
Penalties and interest accrued | $ 0 | $ 0 | $ 0 |
Open tax year | 2017 |
SHARE BASED COMPENSATION AND _3
SHARE BASED COMPENSATION AND BENEFIT PLANS (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation [Abstract] | |||
Number of additional shares approved for grant (in shares) | 400 | ||
Shares issued on deferral basis credited percentage of current value | 90.00% | ||
Total compensation cost not yet recognized | $ 1,700 | ||
Total compensation cost not yet recognized, period for recognition | 1 year 8 months 12 days | ||
Long-Term Incentive Plan [Member] | |||
Share Based Compensation [Abstract] | |||
Total compensation expense recognized | $ 1,600 | $ 1,600 | $ 1,500 |
Tax benefit relating to compensation expense recognized | $ 300 | $ 300 | $ 300 |
Restricted Stock [Member] | Long-Term Incentive Plan [Member] | |||
Share Based Compensation [Abstract] | |||
Number of restricted stock units issued to executive officers (in shares) | 10 | 2 | |
Vesting period | 3 years | 3 years | |
Non-Employee Directors [Member] | |||
Share Based Compensation [Abstract] | |||
Number of additional shares approved for grant (in shares) | 100 | ||
Total compensation expense recognized | $ 400 | $ 300 | $ 200 |
Tax benefit relating to compensation expense recognized | $ 70 | $ 50 | $ 40 |
Executive Officers [Member] | Restricted Stock [Member] | Long-Term Incentive Plan [Member] | |||
Share Based Compensation [Abstract] | |||
Number of restricted stock units issued to executive officers (in shares) | 60 | 60 | 50 |
Vesting period | 3 years | 3 years | |
Executive Officers [Member] | Performance Stock Units [Member] | Long-Term Incentive Plan [Member] | |||
Share Based Compensation [Abstract] | |||
Number of restricted stock units issued to executive officers (in shares) | 20 | 20 | 20 |
Vesting period | 3 years | 3 years | |
Directors [Member] | |||
Share Based Compensation [Abstract] | |||
Shares issues as retainer fees (in shares) | 20 | 10 | 10 |
SHARE BASED COMPENSATION AND _4
SHARE BASED COMPENSATION AND BENEFIT PLANS, Outstanding Stock Option Grants and Related Transactions (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Number of Shares [Roll Forward] | |
Outstanding, beginning balance (in shares) | 138,506 |
Granted (in shares) | 0 |
Exercised (in shares) | (17,317) |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Outstanding, ending balance (in shares) | 121,189 |
Vested and expected to vest, period end (in shares) | 121,189 |
Exercisable, period end (in shares) | 121,189 |
Average Exercise Price [Roll Forward] | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 4.62 |
Exercised (in dollars per share) | $ / shares | 3.27 |
Outstanding, ending balance (in dollars per share) | $ / shares | 4.81 |
Vested and expected to vest, period end (in dollars per share) | $ / shares | 4.81 |
Exercisable, period end (in dollars per share) | $ / shares | $ 4.81 |
Weighted-Average Remaining Contractual Term [Abstract] | |
Outstanding, weighted-average remaining contractual term | 2 years 1 month 6 days |
Vested and expected to vest, weighted-average remaining contractual term | 2 years 1 month 6 days |
Exercisable, weighted-average remaining contractual term | 2 years 1 month 6 days |
Aggregate Intrinsic Value [Abstract] | |
Outstanding, aggregate intrinsic value | $ | $ 1,658 |
Vested and expected to vest, aggregate intrinsic value | $ | 1,658 |
Exercisable, aggregate intrinsic value | $ | $ 1,658 |
SHARE BASED COMPENSATION AND _5
SHARE BASED COMPENSATION AND BENEFIT PLANS, Outstanding Non-vested Stock and Related Transactions (Details) - Non-vested Restricted Stock and PSU's [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Shares [Roll Forward] | |
Outstanding, beginning balance (in shares) | shares | 245,726 |
Granted (in shares) | shares | 76,893 |
Vested (in shares) | shares | (94,342) |
Forfeited (in shares) | shares | (21,160) |
Outstanding, ending balance (in shares) | shares | 207,117 |
Weighted-Average Grant Date Fair Value [Roll Forward] | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 21.72 |
Granted (in dollars per share) | $ / shares | 22.46 |
Vested (in dollars per share) | $ / shares | 19.96 |
Forfeited (in dollars per share) | $ / shares | 22.63 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 22.70 |
SHARE BASED COMPENSATION AND _6
SHARE BASED COMPENSATION AND BENEFIT PLANS, Options Exercised During the Periods (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Information regarding options exercised [Abstract] | |||
Employee matching contribution, percentage | 50.00% | 50.00% | 50.00% |
Maximum contribution of employees' eligible wages | 8.00% | 8.00% | 8.00% |
Maximum matching contribution, percent | 6.00% | ||
Employee stock ownership plan (ESOP), contributions | 2.00% | 2.00% | 2.00% |
401(k) and employee stock ownership plans amount expensed | $ 3,200 | $ 2,600 | $ 2,300 |
Performance-based compensation expense | 15,700 | 9,500 | 9,800 |
Health care and life insurance expense | 4,800 | 5,700 | 5,200 |
Stock Options [Member] | |||
Information regarding options exercised [Abstract] | |||
Intrinsic value | 293 | 897 | 2,333 |
Cash proceeds received | 57 | 706 | 1,420 |
Tax benefit realized | $ 61 | $ 188 | $ 490 |
OTHER NON-INTEREST INCOME (Deta
OTHER NON-INTEREST INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OTHER NON-INTEREST INCOME [Abstract] | |||
Investment and insurance commissions | $ 1,971 | $ 1,658 | $ 1,971 |
ATM fees | 1,197 | 1,403 | 1,457 |
Bank owned life insurance | 910 | 1,111 | 970 |
Other | 3,443 | 5,110 | 4,362 |
Total | $ 7,521 | $ 9,282 | $ 8,760 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | $ 16,782 | $ 5,464 | ||
Liability Derivatives | 11,754 | 4,402 | ||
Interest-Rate Cap Agreements [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Unrealized loss on derivative instrument to be reclassified into earnings | $ (500) | $ (2,000) | ||
Fair Value Hedge Designation [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 49,038 | |||
Average Maturity | 7 years 3 months 18 days | |||
Fair Value | $ (761) | |||
Cash Flow Hedge Designation [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 175,000 | |||
Average Maturity | 2 years 6 months | |||
Fair Value | $ 40 | |||
Cash Flow Hedge Designation [Member] | Interest-Rate Cap Agreements [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 150,000 | |||
Average Maturity | 2 years 7 months 6 days | |||
Fair Value | $ 214 | |||
Designated as Hedging Instrument [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 15 | 214 | ||
Liability Derivatives | 776 | 416 | ||
No Hedge Designation [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 815,576 | $ 458,279 | ||
Average Maturity | 2 years | 3 years 8 months 12 days | ||
Fair Value | $ 5,789 | $ 1,264 | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 16,767 | 5,250 | ||
Liability Derivatives | 10,978 | 3,986 | ||
No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 168,816 | $ 49,268 | ||
Average Maturity | 1 month 6 days | 1 month 6 days | ||
Fair Value | $ 7,020 | $ 1,412 | ||
No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 186,092 | $ 95,363 | ||
Average Maturity | 1 month 6 days | 1 month 6 days | ||
Fair Value | $ (941) | $ (150) | ||
No Hedge Designation [Member] | Interest-Rate Cap Agreements [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 135,000 | |||
Average Maturity | 1 year 9 months 18 days | |||
Fair Value | $ 5 | |||
No Hedge Designation [Member] | Purchased Options [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 2,908 | $ 2,908 | ||
Average Maturity | 6 months | 1 year 6 months | ||
Fair Value | $ 42 | $ 141 | ||
No Hedge Designation [Member] | Written Options [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 2,848 | $ 2,848 | ||
Average Maturity | 6 months | 1 year 6 months | ||
Fair Value | $ (42) | $ (139) | ||
Fixed Income Interest Rate [Member] | Fair Value Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 7,088 | $ 7,117 | ||
Average Maturity | 8 years 4 months 24 days | 9 years 4 months 24 days | ||
Fair Value | $ (776) | $ (242) | ||
Fixed Income Interest Rate [Member] | Fair Value Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 41,950 | |||
Average Maturity | 7 years 1 month 6 days | |||
Fair Value | $ 15 | |||
Fixed Income Interest Rate [Member] | Cash Flow Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 25,000 | |||
Average Maturity | 1 year 7 months 6 days | |||
Fair Value | $ (174) | |||
Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 147,456 | $ 153,946 | ||
Average Maturity | 4 years 6 months | 5 years 6 months | ||
Fair Value | $ (9,700) | $ (3,641) | ||
Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 25,000 | |||
Average Maturity | 7 months 6 days | |||
Fair Value | $ (295) | |||
Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Derivative financial instrument according to type of hedge [Abstract] | ||||
Notional Amount | $ 147,456 | $ 153,946 | ||
Average Maturity | 4 years 6 months | 5 years 6 months | ||
Fair Value | $ 9,700 | $ 3,641 | ||
Other Assets [Member] | Designated as Hedging Instrument [Member] | Interest-Rate Cap Agreements [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 0 | 214 | ||
Other Assets [Member] | No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 7,020 | 1,412 | ||
Other Assets [Member] | No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 0 | 0 | ||
Other Assets [Member] | No Hedge Designation [Member] | Interest-Rate Cap Agreements [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 5 | 0 | ||
Other Assets [Member] | No Hedge Designation [Member] | Purchased Options [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 42 | 141 | ||
Other Assets [Member] | No Hedge Designation [Member] | Written Options [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 0 | 0 | ||
Other Assets [Member] | Fixed Income Interest Rate [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 15 | 0 | ||
Other Assets [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 0 | 28 | ||
Other Assets [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 0 | 0 | ||
Other Assets [Member] | Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Asset Derivatives | 9,700 | 3,669 | ||
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | 776 | 416 | ||
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | Interest-Rate Cap Agreements [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | 0 | 0 | ||
Other Liabilities [Member] | No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | 0 | 0 | ||
Other Liabilities [Member] | No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | 941 | 150 | ||
Other Liabilities [Member] | No Hedge Designation [Member] | Interest-Rate Cap Agreements [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | 0 | 0 | ||
Other Liabilities [Member] | No Hedge Designation [Member] | Purchased Options [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | 0 | 0 | ||
Other Liabilities [Member] | No Hedge Designation [Member] | Written Options [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | 42 | 139 | ||
Other Liabilities [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | 9,700 | 3,669 | ||
Other Liabilities [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | 295 | 0 | ||
Other Liabilities [Member] | Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||||
Fair value of derivative instruments, balance sheet location [Abstract] | ||||
Liability Derivatives | $ 0 | $ 28 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS, Effect on Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | $ (354) | $ (1,603) | $ (262) | |
Fair Value Hedge Designation [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | (519) | (242) | 0 |
Fair Value Hedge Designation [Member] | Interest Rate Swap [Member] | Interest and Fees on Loans [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | (534) | (242) | 0 |
Fair Value Hedge Designation [Member] | Interest Rate Swap [Member] | Interest on Securities Available for Sale - Tax-exempt [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | 15 | 0 | 0 |
Cash Flow Hedge Designation [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | (354) | (1,603) | (262) | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (2,539) | 425 | 237 | |
Gain (Loss) Recognized in Income | [1] | 0 | 0 | (12) |
Cash Flow Hedge Designation [Member] | Interest-Rate Cap Agreements [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | 125 | (1,211) | (340) | |
Cash Flow Hedge Designation [Member] | Interest-Rate Cap Agreements [Member] | Interest Expense [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (1,885) | 363 | 206 | |
Gain (Loss) Recognized in Income | [1] | 0 | 0 | 0 |
Cash Flow Hedge Designation [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | (479) | (392) | 78 | |
Cash Flow Hedge Designation [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (654) | 62 | 31 | |
Gain (Loss) Recognized in Income | [1] | 0 | 0 | (12) |
No Hedge Designation [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | 4,989 | 960 | (263) |
No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Net Gains on Mortgage Loans [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | 5,608 | 725 | 157 |
No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Net Gains on Mortgage Loans [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | (791) | 233 | (420) |
No Hedge Designation [Member] | Interest-Rate Cap Agreements [Member] | Interest Expense [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | (57) | 0 | 0 |
No Hedge Designation [Member] | Purchased Options [Member] | Interest Expense [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | (99) | 25 | (206) |
No Hedge Designation [Member] | Written Options [Member] | Interest Expense [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | 97 | (23) | 206 |
No Hedge Designation [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Income [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | (6,059) | (4,046) | 113 |
No Hedge Designation [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | 231 | 0 | 0 |
No Hedge Designation [Member] | Variable Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Income [Member] | ||||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ||||
Gain (Loss) Recognized in Income | [1] | $ 6,059 | $ 4,046 | $ (113) |
[1] | For cash flow hedges, this location and amount refers to the ineffective portion. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of loans and leases receivable [Roll Forward] | ||
Balance at beginning of year | $ 13,077 | $ 14,205 |
New loans and advances | 417 | 713 |
Repayments | (11,078) | (1,841) |
Balance at end of year | 2,416 | 13,077 |
Directors and executive officers deposit | $ 2,000 | $ 2,000 |
Minimum [Member] | ||
Related Party Transaction [Abstract] | ||
Related party entity ownership percentage | 10.00% |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Components of operating leases [Abstract] | |||
Operating lease cost | $ 1,780 | $ 2,217 | |
Variable lease cost | 69 | 142 | |
Short-term lease cost | 36 | 19 | |
Total | 1,885 | 2,378 | |
Supplemental balance sheet information related to operating leases [Abstract] | |||
Lease right of use asset | [1] | $ 7,646 | $ 8,282 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | |
Lease liabilities | [2] | $ 7,868 | $ 8,304 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |
Weighted average remaining lease term (years) | 7 years 1 month 13 days | 7 years 5 months 19 days | |
Weighted average discount rate | 2.40% | 2.80% | |
Maturities of lease liabilities [Abstract] | |||
2021 | $ 1,669 | ||
2022 | 1,489 | ||
2023 | 1,222 | ||
2024 | 815 | ||
2025 | 809 | ||
2026 and thereafter | 2,525 | ||
Total lease payments | 8,529 | ||
Less imputed interest | (661) | ||
Total | [2] | $ 7,868 | $ 8,304 |
[1] | Included in Accrued income and other assets | ||
[2] | Included in Accrued expenses and other liabilities |
CONCENTRATIONS OF CREDIT RISK (
CONCENTRATIONS OF CREDIT RISK (Details) $ in Millions | Dec. 31, 2020USD ($) |
Residential Real Estate [Member] | |
Concentration of Risk [Abstract] | |
Concentration of risk loans receivable | $ 930.9 |
Construction and Development Loans [Member] | |
Concentration of Risk [Abstract] | |
Concentration of risk loans receivable | 232.7 |
Lessors of Nonresidential Real Estate [Member] | |
Concentration of Risk [Abstract] | |
Concentration of risk loans receivable | 301.8 |
Lessors of Residential Real Estate [Member] | |
Concentration of Risk [Abstract] | |
Concentration of risk loans receivable | 119.6 |
Construction [Member] | |
Concentration of Risk [Abstract] | |
Concentration of risk loans receivable | 130.4 |
Manufacturing [Member] | |
Concentration of Risk [Abstract] | |
Concentration of risk loans receivable | 99.4 |
Accommodation and Food Services [Member] | |
Concentration of Risk [Abstract] | |
Concentration of risk loans receivable | 99.1 |
Health Care and Social Assistance [Member] | |
Concentration of Risk [Abstract] | |
Concentration of risk loans receivable | $ 87.2 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
REGULATORY MATTERS [Abstract] | |||||
Undivided profits | $ 77,800 | ||||
Tier 1 capital to average assets [Abstract] | |||||
Capital conservation buffer | 0.0250 | 0.0250 | |||
Components of regulatory capital [Abstract] | |||||
Total shareholders' equity | $ 389,522 | $ 350,169 | $ 338,994 | $ 264,933 | |
Add (deduct) [Abstract] | |||||
Accumulated other comprehensive loss for regulatory purposes | 10,024 | (3,786) | |||
Subordinated debt | 39,281 | 0 | |||
Consolidated [Member] | |||||
Total capital to risk-weighted assets [Abstract] | |||||
Total risk-based capital | [1] | $ 455,072 | $ 380,454 | ||
Actual, Ratio | [1] | 0.1595 | 0.1374 | ||
Minimum for Adequately Capitalized Institutions, Amount | [1] | $ 228,214 | $ 221,562 | ||
Minimum for Adequately Capitalized Institutions, Ratio | [1] | 0.0800 | 0.0800 | ||
Tier 1 capital to risk-weighted assets [Abstract] | |||||
Actual, Amount | [1] | $ 379,395 | $ 352,764 | ||
Actual, Ratio | [1] | 0.1330 | 0.1274 | ||
Minimum for Adequately Capitalized Institutions, Amount | [1] | $ 171,161 | $ 166,171 | ||
Minimum for Adequately Capitalized Institutions, Ratio | [1] | 0.0600 | 0.0600 | ||
Common equity tier 1 capital to risk-weighted assets [Abstract] | |||||
Actual, Amount | [1] | $ 341,095 | $ 314,532 | ||
Actual, Ratio | [1] | 0.1196 | 0.1136 | ||
Minimum for Adequately Capitalized Institutions, Amount | [1] | $ 128,370 | $ 124,628 | ||
Minimum for Adequately Capitalized Institutions, Ratio | [1] | 0.0450 | 0.0450 | ||
Tier 1 capital to average assets [Abstract] | |||||
Tier 1 capital | [1] | $ 379,395 | $ 352,764 | ||
Actual, Ratio | [1] | 0.0915 | 0.1011 | ||
Minimum for Adequately Capitalized Institutions, Amount | [1] | $ 165,825 | $ 139,632 | ||
Minimum for Adequately Capitalized Institutions, Ratio | [1] | 0.0400 | 0.0400 | ||
Components of regulatory capital [Abstract] | |||||
Total shareholders' equity | $ 389,522 | $ 350,169 | |||
Add (deduct) [Abstract] | |||||
Accumulated other comprehensive loss for regulatory purposes | (15,821) | (2,011) | |||
Goodwill and other intangibles | (32,606) | (33,626) | |||
Common equity tier 1 capital | [1] | 341,095 | 314,532 | ||
Qualifying trust preferred securities | 38,300 | 38,232 | |||
Tier 1 capital | [1] | 379,395 | 352,764 | ||
Subordinated debt | 40,000 | 0 | |||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 35,677 | 27,690 | |||
Total risk-based capital | [1] | 455,072 | 380,454 | ||
Independent Bank [Member] | |||||
Total capital to risk-weighted assets [Abstract] | |||||
Total risk-based capital | [1] | $ 401,005 | $ 358,914 | ||
Actual, Ratio | [1] | 0.1406 | 0.1296 | ||
Minimum for Adequately Capitalized Institutions, Amount | [1] | $ 228,111 | $ 221,482 | ||
Minimum for Adequately Capitalized Institutions, Ratio | [1] | 0.0800 | 0.0800 | ||
Minimum for Well-Capitalized Institutions, Amount | [1] | $ 285,139 | $ 276,852 | ||
Minimum for Well-Capitalized Institutions, Ratio | [1] | 0.1000 | 0.1000 | ||
Tier 1 capital to risk-weighted assets [Abstract] | |||||
Actual, Amount | [1] | $ 365,343 | $ 331,224 | ||
Actual, Ratio | [1] | 0.1281 | 0.1196 | ||
Minimum for Adequately Capitalized Institutions, Amount | [1] | $ 171,083 | $ 166,111 | ||
Minimum for Adequately Capitalized Institutions, Ratio | [1] | 0.0600 | 0.0600 | ||
Minimum for Well-Capitalized Institutions, Amount | [1] | $ 228,111 | $ 221,482 | ||
Minimum for Well-Capitalized Institutions, Ratio | [1] | 0.0800 | 0.0800 | ||
Common equity tier 1 capital to risk-weighted assets [Abstract] | |||||
Actual, Amount | [1] | $ 365,343 | $ 331,224 | ||
Actual, Ratio | [1] | 0.1281 | 0.1196 | ||
Minimum for Adequately Capitalized Institutions, Amount | [1] | $ 128,312 | $ 124,583 | ||
Minimum for Adequately Capitalized Institutions, Ratio | [1] | 0.0450 | 0.0450 | ||
Minimum for Well-Capitalized Institutions, Amount | [1] | $ 185,340 | $ 179,954 | ||
Minimum for Well-Capitalized Institutions, Ratio | [1] | 0.0650 | 0.0650 | ||
Tier 1 capital to average assets [Abstract] | |||||
Tier 1 capital | [1] | $ 365,343 | $ 331,224 | ||
Actual, Ratio | [1] | 0.0881 | 0.0949 | ||
Minimum for Adequately Capitalized Institutions, Amount | [1] | $ 165,828 | $ 139,615 | ||
Minimum for Adequately Capitalized Institutions, Ratio | [1] | 0.0400 | 0.0400 | ||
Minimum for Well-Capitalized Institutions, Amount | [1] | $ 207,285 | $ 174,519 | ||
Minimum for Well-Capitalized Institutions, Ratio | [1] | 0.0500 | 0.0500 | ||
Components of regulatory capital [Abstract] | |||||
Total shareholders' equity | $ 413,770 | $ 366,861 | |||
Add (deduct) [Abstract] | |||||
Accumulated other comprehensive loss for regulatory purposes | (15,821) | (2,011) | |||
Goodwill and other intangibles | (32,606) | (33,626) | |||
Common equity tier 1 capital | [1] | 365,343 | 331,224 | ||
Qualifying trust preferred securities | 0 | 0 | |||
Tier 1 capital | [1] | 365,343 | 331,224 | ||
Subordinated debt | 0 | 0 | |||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 35,662 | 27,690 | |||
Total risk-based capital | [1] | $ 401,005 | $ 358,914 | ||
[1] | These ratios do not reflect a capital conservation buffer of 2.50% at December 31, 2020 and 2019. |
FAIR VALUE DISCLOSURES, Signifi
FAIR VALUE DISCLOSURES, Significant Assumptions (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets [Abstract] | ||||
Securities available for sale | $ 1,072,159 | $ 518,400 | ||
Loans held for sale, carried at fair value | 92,434 | 69,800 | $ 44,753 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Derivatives | 0 | 0 | ||
Liabilities [Abstract] | ||||
Derivatives | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 1,072,159 | 518,400 | ||
Derivatives | 16,782 | 5,464 | ||
Liabilities [Abstract] | ||||
Derivatives | 11,754 | 4,402 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Derivatives | 0 | 0 | ||
Liabilities [Abstract] | ||||
Derivatives | 0 | 0 | ||
Recurring Basis [Member] | ||||
Assets [Abstract] | ||||
Loans held for sale, carried at fair value | 92,434 | 69,800 | ||
Capitalized mortgage loan servicing rights | 16,904 | 19,171 | ||
Derivatives | [1] | 16,782 | 5,464 | |
Liabilities [Abstract] | ||||
Derivatives | [2] | 11,754 | 4,402 | |
Recurring Basis [Member] | U.S. Agency [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 10,748 | 14,661 | ||
Recurring Basis [Member] | U.S. Agency Residential Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 344,582 | 227,762 | ||
Recurring Basis [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 7,195 | 10,756 | ||
Recurring Basis [Member] | Private Label Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 42,829 | 39,693 | ||
Recurring Basis [Member] | Other Asset Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 254,181 | 93,886 | ||
Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 324,293 | 96,102 | ||
Recurring Basis [Member] | Corporate [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 86,017 | 33,195 | ||
Recurring Basis [Member] | Trust Preferred [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 1,798 | 1,843 | ||
Recurring Basis [Member] | Foreign Government [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 516 | 502 | ||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Assets [Abstract] | ||||
Loans held for sale, carried at fair value | 0 | 0 | ||
Capitalized mortgage loan servicing rights | 0 | 0 | ||
Derivatives | [1] | 0 | 0 | |
Liabilities [Abstract] | ||||
Derivatives | [2] | 0 | 0 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Agency [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Agency Residential Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Private Label Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Asset Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trust Preferred [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign Government [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets [Abstract] | ||||
Loans held for sale, carried at fair value | 92,434 | 69,800 | ||
Capitalized mortgage loan servicing rights | 0 | 0 | ||
Derivatives | [1] | 16,782 | 5,464 | |
Liabilities [Abstract] | ||||
Derivatives | [2] | 11,754 | 4,402 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 10,748 | 14,661 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency Residential Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 344,582 | 227,762 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 7,195 | 10,756 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Private Label Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 42,829 | 39,693 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Asset Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 254,181 | 93,886 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 324,293 | 96,102 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 86,017 | 33,195 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Trust Preferred [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 1,798 | 1,843 | ||
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 516 | 502 | ||
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets [Abstract] | ||||
Loans held for sale, carried at fair value | 0 | 0 | ||
Capitalized mortgage loan servicing rights | 16,904 | 19,171 | ||
Derivatives | [1] | 0 | 0 | |
Liabilities [Abstract] | ||||
Derivatives | [2] | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Agency [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Agency Residential Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Private Label Mortgage-Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Asset Backed [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Trust Preferred [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | ||||
Assets [Abstract] | ||||
Securities available for sale | 0 | 0 | ||
Nonrecurring Basis [Member] | Impaired Loans [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 1,468 | 655 | |
Nonrecurring Basis [Member] | Impaired Loans [Member] | Commercial [Member] | Commercial Real Estate [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 6,586 | 316 | |
Nonrecurring Basis [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 987 | |
Nonrecurring Basis [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 321 | 470 | |
Nonrecurring Basis [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 155 | 281 | |
Nonrecurring Basis [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 324 | 294 | |
Nonrecurring Basis [Member] | Impaired Loans [Member] | Mortgage [Member] | Resort Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 61 | 245 | |
Nonrecurring Basis [Member] | Impaired Loans [Member] | Installment [Member] | Boat Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 4 | 67 | |
Nonrecurring Basis [Member] | Impaired Loans [Member] | Installment [Member] | Recreational Vehicle Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 31 | 2 | |
Nonrecurring Basis [Member] | Impaired Loans [Member] | Installment [Member] | Other [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 124 | 121 | |
Nonrecurring Basis [Member] | Other Real Estate [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 102 | ||
Nonrecurring Basis [Member] | Other Real Estate [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 31 | ||
Nonrecurring Basis [Member] | Other Real Estate [Member] | Installment [Member] | Other [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 28 | ||
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Commercial [Member] | Commercial Real Estate [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Mortgage [Member] | Resort Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Installment [Member] | Boat Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Installment [Member] | Recreational Vehicle Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | Installment [Member] | Other [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Real Estate [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 0 | ||
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Real Estate [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 0 | ||
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Real Estate [Member] | Installment [Member] | Other [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 0 | ||
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Commercial [Member] | Commercial Real Estate [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Mortgage [Member] | Resort Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Installment [Member] | Boat Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Installment [Member] | Recreational Vehicle Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | Installment [Member] | Other [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 0 | |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Real Estate [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 0 | ||
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Real Estate [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 0 | ||
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Real Estate [Member] | Installment [Member] | Other [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 0 | ||
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 1,468 | 655 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Commercial [Member] | Commercial Real Estate [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 6,586 | 316 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 0 | 987 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 321 | 470 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 155 | 281 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 324 | 294 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Mortgage [Member] | Resort Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 61 | 245 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Installment [Member] | Boat Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 4 | 67 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Installment [Member] | Recreational Vehicle Lending [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 31 | 2 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | Installment [Member] | Other [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [3] | 124 | 121 | |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Real Estate [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | $ 102 | ||
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Real Estate [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | 31 | ||
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Real Estate [Member] | Installment [Member] | Other [Member] | ||||
Impaired loans [Abstract] | ||||
Loans receivable | [4] | $ 28 | ||
[1] | Included in accrued income and other assets in the Consolidated Statements of Financial Condition. | |||
[2] | Included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. | |||
[3] | Only includes impaired loans with specific loss allocations based on collateral value. | |||
[4] | Only includes other real estate with subsequent write downs to fair value. |
FAIR VALUE DISCLOSURES, Changes
FAIR VALUE DISCLOSURES, Changes in Fair Value for Financial Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in fair value for financial assets [Abstract] | ||||
Equity securities at fair value | $ 167 | |||
Trading securities, net gains (losses) | $ (62) | |||
Loans held for sale | $ 1,962 | 637 | 413 | |
Capitalized mortgage loan servicing rights, net gains (losses) | (16,224) | (9,532) | (2,323) | |
Impairment charges recognized [Abstract] | ||||
Collateral dependent loans, carrying amount | 9,100 | 3,400 | ||
Collateral dependent loans, valuation allowance | 1,800 | 1,500 | ||
Additional provision for loan losses on impaired loans | 700 | 1,300 | 1,300 | |
Other real estate, carrying amount | 100 | 60 | ||
Other real estate, valuation allowance | 90 | 92 | 144 | $ 123 |
Other real estate, additional charge | 30 | 30 | 90 | |
Securities [Member] | ||||
Changes in fair value for financial assets [Abstract] | ||||
Equity securities at fair value | 167 | |||
Trading securities, net gains (losses) | (62) | |||
Mortgage Loans [Member] | ||||
Changes in fair value for financial assets [Abstract] | ||||
Loans held for sale | 1,962 | 637 | 413 | |
Mortgage Loan Servicing, Net [Member] | ||||
Changes in fair value for financial assets [Abstract] | ||||
Capitalized mortgage loan servicing rights, net gains (losses) | $ (16,224) | $ (9,532) | $ (2,323) |
FAIR VALUE DISCLOSURES, Reconci
FAIR VALUE DISCLOSURES, Reconciliation for all Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - Capitalized Mortgage Loan Servicing Rights [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | |||
Beginning balance | $ 19,171 | $ 21,400 | $ 15,699 |
Total losses realized and unrealized [Abstract] | |||
Included in results of operations | (16,224) | (9,532) | (2,323) |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Purchases, issuances, settlements, maturities and calls | 13,957 | 7,303 | 8,024 |
Transfers in and/or out of Level 3 | 0 | 0 | 0 |
Ending balance | 16,904 | 19,171 | 21,400 |
Amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets and liabilities still held at December 31 | $ (16,224) | $ (9,532) | $ (2,323) |
FAIR VALUE DISCLOSURES, Quantit
FAIR VALUE DISCLOSURES, Quantitative Information About Level 3 (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Impaired Loans Installment [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Total Impaired collateral value | $ 160,000 | $ 140,000 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Asset Fair Value [Abstract] | |||
Servicing asset fair value | $ 16,904,000 | $ 19,171,000 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Present Value of Net Servicing Revenue [Member] | Significant Unobservable Inputs (Level 3) [Member] | Float Rate [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 0.0043 | 0.0173 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Minimum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cost to Service [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 69 | 66 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Minimum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Ancillary Income [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 20 | 20 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Minimum [Member] | Present Value of Net Servicing Revenue [Member] | Significant Unobservable Inputs (Level 3) [Member] | Discount Rate [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 0.1000 | 0.1000 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Minimum [Member] | Present Value of Net Servicing Revenue [Member] | Significant Unobservable Inputs (Level 3) [Member] | Prepayment Rate [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 0.0792 | 0.0701 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Maximum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cost to Service [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 289 | 316 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Maximum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Ancillary Income [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 37 | 37 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Maximum [Member] | Present Value of Net Servicing Revenue [Member] | Significant Unobservable Inputs (Level 3) [Member] | Discount Rate [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 0.1300 | 0.1300 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Maximum [Member] | Present Value of Net Servicing Revenue [Member] | Significant Unobservable Inputs (Level 3) [Member] | Prepayment Rate [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 0.6470 | 0.6934 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cost to Service [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 79 | 81 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | Ancillary Income [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 22 | 22 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Weighted Average [Member] | Present Value of Net Servicing Revenue [Member] | Significant Unobservable Inputs (Level 3) [Member] | Discount Rate [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 0.1009 | 0.1014 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Weighted Average [Member] | Present Value of Net Servicing Revenue [Member] | Significant Unobservable Inputs (Level 3) [Member] | Float Rate [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 0.0043 | 0.0173 | |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Weighted Average [Member] | Present Value of Net Servicing Revenue [Member] | Significant Unobservable Inputs (Level 3) [Member] | Prepayment Rate [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Servicing asset measurement input | 0.2085 | 0.1496 | |
Nonrecurring Basis [Member] | Impaired Loans Commercial [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Asset Fair Value [Abstract] | |||
Impaired loans fair value | $ 8,054,000 | $ 971,000 | |
Nonrecurring Basis [Member] | Impaired Loans Commercial [Member] | Minimum [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Impaired loans measurement input | (0.400) | (0.480) | |
Nonrecurring Basis [Member] | Impaired Loans Commercial [Member] | Maximum [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Impaired loans measurement input | 0.750 | 0.192 | |
Nonrecurring Basis [Member] | Impaired Loans Commercial [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Impaired loans measurement input | 0.038 | (0.056) | |
Nonrecurring Basis [Member] | Impaired Loans Mortgage and Installment [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Asset Fair Value [Abstract] | |||
Impaired loans fair value | [1] | $ 1,020,000 | $ 2,467,000 |
Nonrecurring Basis [Member] | Impaired Loans Mortgage and Installment [Member] | Minimum [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Impaired loans measurement input | [1] | (0.733) | (0.252) |
Nonrecurring Basis [Member] | Impaired Loans Mortgage and Installment [Member] | Maximum [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Impaired loans measurement input | [1] | 1.046 | 0.492 |
Nonrecurring Basis [Member] | Impaired Loans Mortgage and Installment [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Impaired loans measurement input | [1] | (0.015) | 0.115 |
Nonrecurring Basis [Member] | Other Real Estate Mortgage and Installment [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Asset Fair Value [Abstract] | |||
Other real estate fair value | $ 59,000 | ||
Nonrecurring Basis [Member] | Other Real Estate Mortgage and Installment [Member] | Minimum [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Other real estate measurement input | (0.116) | ||
Nonrecurring Basis [Member] | Other Real Estate Mortgage and Installment [Member] | Maximum [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Other real estate measurement input | 0.050 | ||
Nonrecurring Basis [Member] | Other Real Estate Mortgage and Installment [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Other real estate measurement input | (0.051) | ||
Nonrecurring Basis [Member] | Other Real Estate Mortgage [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Asset Fair Value [Abstract] | |||
Other real estate fair value | $ 102,000 | ||
Nonrecurring Basis [Member] | Other Real Estate Mortgage [Member] | Minimum [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Other real estate measurement input | (0.131) | ||
Nonrecurring Basis [Member] | Other Real Estate Mortgage [Member] | Maximum [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Other real estate measurement input | 0.024 | ||
Nonrecurring Basis [Member] | Other Real Estate Mortgage [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | Significant Unobservable Inputs (Level 3) [Member] | Adjustment for Differences Between Comparable Sales [Member] | |||
Ranges and Weighted Average [Abstract] | |||
Other real estate measurement input | (0.036) | ||
[1] | In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2020 and 2019 certain impaired collateral dependent installment loans totaling approximately $0.16 million and $0.14 million are secured by collateral other than real estate. For the majority of these loans, we apply internal discount rates to industry valuation guides. |
FAIR VALUE DISCLOSURES, Differe
FAIR VALUE DISCLOSURES, Difference Between Aggregate Fair value and Aggregate Remaining Contractual Principal (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans held for sale [Abstract] | |||
Aggregate Fair Value | $ 92,434 | $ 69,800 | $ 44,753 |
Difference | 3,856 | 1,894 | 1,257 |
Contractual Principal | $ 88,578 | $ 67,906 | $ 43,496 |
FAIR VALUES OF FINANCIAL INST_3
FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets [Abstract] | |||
Interest bearing deposits - time | $ 0 | $ 350 | |
Securities available for sale | 1,072,159 | 518,400 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 18,427 | 18,359 | |
Liabilities [Abstract] | |||
Deposits with stated maturity | 439,017 | ||
Other borrowings | 30,012 | 88,646 | |
Subordinated debt | 39,281 | 0 | |
Subordinated debentures | 39,524 | 39,456 | |
Reciprocal deposits included in deposits with no stated maturity | 518,400 | 388,369 | |
Reciprocal deposits included in deposits with stated maturity | 37,785 | 42,658 | |
Recorded Book Balance [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 56,006 | 53,295 | |
Interest bearing deposits | 62,699 | 12,009 | |
Interest bearing deposits - time | 350 | ||
Securities available for sale | 1,072,159 | 518,400 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 18,427 | 18,359 | |
Net loans and loans held for sale | 2,790,683 | 2,768,675 | |
Accrued interest receivable | 12,315 | 10,108 | |
Derivative financial instruments | 16,782 | 5,464 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [1] | 3,198,338 | 2,427,190 |
Deposits with stated maturity | [1] | 439,017 | 609,537 |
Other borrowings | 30,012 | 88,646 | |
Subordinated debt | 39,281 | ||
Subordinated debentures | 39,524 | 39,456 | |
Accrued interest payable | 601 | 1,296 | |
Derivative financial instruments | 11,754 | 4,402 | |
Fair Value [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 56,006 | 53,295 | |
Interest bearing deposits | 62,699 | 12,009 | |
Interest bearing deposits - time | 350 | ||
Securities available for sale | 1,072,159 | 518,400 | |
Net loans and loans held for sale | 2,794,058 | 2,768,817 | |
Accrued interest receivable | 12,315 | 10,108 | |
Derivative financial instruments | 16,782 | 5,464 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | 3,198,338 | 2,427,190 | |
Deposits with stated maturity | 441,457 | 610,235 | |
Other borrowings | 30,844 | 88,680 | |
Subordinated debt | 41,417 | ||
Subordinated debentures | 30,265 | 33,149 | |
Accrued interest payable | 601 | 1,296 | |
Derivative financial instruments | 11,754 | 4,402 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 56,006 | 53,295 | |
Interest bearing deposits | 62,699 | 12,009 | |
Interest bearing deposits - time | 0 | ||
Securities available for sale | 0 | 0 | |
Net loans and loans held for sale | 0 | 0 | |
Accrued interest receivable | 3 | 8 | |
Derivative financial instruments | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | 3,198,338 | 2,427,190 | |
Deposits with stated maturity | 0 | 0 | |
Other borrowings | 0 | 0 | |
Subordinated debt | 0 | ||
Subordinated debentures | 0 | 0 | |
Accrued interest payable | 59 | 97 | |
Derivative financial instruments | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits | 0 | 0 | |
Interest bearing deposits - time | 350 | ||
Securities available for sale | 1,072,159 | 518,400 | |
Net loans and loans held for sale | 92,434 | 69,800 | |
Accrued interest receivable | 3,414 | 1,752 | |
Derivative financial instruments | 16,782 | 5,464 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | 0 | 0 | |
Deposits with stated maturity | 441,457 | 610,235 | |
Other borrowings | 30,844 | 88,680 | |
Subordinated debt | 41,417 | ||
Subordinated debentures | 30,265 | 33,149 | |
Accrued interest payable | 542 | 1,199 | |
Derivative financial instruments | 11,754 | 4,402 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits | 0 | 0 | |
Interest bearing deposits - time | 0 | ||
Securities available for sale | 0 | 0 | |
Net loans and loans held for sale | 2,701,624 | 2,699,017 | |
Accrued interest receivable | 8,898 | 8,348 | |
Derivative financial instruments | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | 0 | 0 | |
Deposits with stated maturity | 0 | 0 | |
Other borrowings | 0 | 0 | |
Subordinated debt | 0 | ||
Subordinated debentures | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Derivative financial instruments | $ 0 | $ 0 | |
[1] | Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $518.400 million and $388.369 million at December 31, 2020 and 2019, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $37.785 million and $42.658 million at December 31, 2020 and 2019, respectively. |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), Summary of Changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in AOCIL [Roll Forward] | |||
Balance at beginning of period | $ 350,169 | $ 338,994 | $ 264,933 |
Other comprehensive income (loss) before reclassifications | 12,015 | 6,769 | (3,878) |
Amounts reclassified from AOCIL | 1,795 | (447) | (231) |
Other comprehensive income (loss) | 13,810 | 6,322 | (4,109) |
Balances at end of period | 389,522 | 350,169 | 338,994 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Changes in AOCIL [Roll Forward] | |||
Balance at beginning of period | (3,786) | (10,108) | (5,999) |
Other comprehensive income (loss) | 13,810 | 6,322 | (4,109) |
Balances at end of period | 10,024 | (3,786) | (10,108) |
Unrealized Gains (Losses) on Securities Available for Sale [Member] | |||
Changes in AOCIL [Roll Forward] | |||
Balance at beginning of period | 3,739 | (4,185) | (470) |
Other comprehensive income (loss) before reclassifications | 12,294 | 8,035 | (3,671) |
Amounts reclassified from AOCIL | (211) | (111) | (44) |
Other comprehensive income (loss) | 12,083 | 7,924 | (3,715) |
Balances at end of period | 15,822 | 3,739 | (4,185) |
Disproportionate Tax Effects from Securities Available for Sale [Member] | |||
Changes in AOCIL [Roll Forward] | |||
Balance at beginning of period | (5,798) | (5,798) | (5,798) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCIL | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 |
Balances at end of period | (5,798) | (5,798) | (5,798) |
Unrealized Losses on Cash Flow Hedges [Member] | |||
Changes in AOCIL [Roll Forward] | |||
Balance at beginning of period | (1,727) | (125) | 269 |
Other comprehensive income (loss) before reclassifications | (279) | (1,266) | (207) |
Amounts reclassified from AOCIL | 2,006 | (336) | (187) |
Other comprehensive income (loss) | 1,727 | (1,602) | (394) |
Balances at end of period | $ 0 | $ (1,727) | $ (125) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), Reclassification Out of Each Component (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassifications out of AOCIL [Abstract] | |||
Total reclassifications before tax | $ 69,481 | $ 57,760 | $ 49,133 |
Interest expense | 16,217 | 26,347 | 17,491 |
Income tax expense | 13,329 | 11,325 | 9,294 |
Total reclassifications for the period, net of tax | 56,152 | 46,435 | 39,839 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassifications out of AOCIL [Abstract] | |||
Total reclassifications for the period, net of tax | (1,795) | 447 | 231 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Reclassifications out of AOCIL [Abstract] | |||
Total reclassifications for the period, net of tax | 0 | 0 | 0 |
Unrealized Gains (Losses) on Securities Available for Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassifications out of AOCIL [Abstract] | |||
Net gains on securities | 267 | 140 | 56 |
Net impairment loss recognized in earnings | 0 | 0 | 0 |
Total reclassifications before tax | 267 | 140 | 56 |
Income tax expense | 56 | 29 | 12 |
Total reclassifications for the period, net of tax | 211 | 111 | 44 |
Unrealized Losses on Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassifications out of AOCIL [Abstract] | |||
Interest expense | 2,539 | (425) | (237) |
Income tax expense | 533 | (89) | (50) |
Total reclassifications for the period, net of tax | $ 2,006 | $ (336) | $ (187) |
INDEPENDENT BANK CORPORATION _3
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ASSETS [Abstract] | ||||
Cash and due from banks | $ 56,006 | $ 53,295 | ||
Interest bearing deposits - time | 0 | 350 | ||
Accrued income and other assets | 62,456 | 44,823 | ||
Total Assets | 4,204,013 | 3,564,694 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||||
Subordinated debt | 39,281 | 0 | ||
Subordinated debentures | 39,524 | 39,456 | ||
Accrued expenses and other liabilities | 68,319 | 49,696 | ||
Shareholders' equity | 389,522 | 350,169 | $ 338,994 | $ 264,933 |
Total Liabilities and Shareholders' Equity | 4,204,013 | 3,564,694 | ||
OPERATING INCOME [Abstract] | ||||
Interest income | 139,829 | 148,928 | 130,773 | |
OPERATING EXPENSES [Abstract] | ||||
Interest expense | 16,217 | 26,347 | 17,491 | |
Income Before Income Tax | 69,481 | 57,760 | 49,133 | |
Income tax benefit | 13,329 | 11,325 | 9,294 | |
Net Income | 56,152 | 46,435 | 39,839 | |
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | ||||
Net Income | 56,152 | 46,435 | 39,839 | |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES [Abstract] | ||||
Deferred income tax (benefit) expense | (2,130) | 1,088 | 9,294 | |
Share based compensation | 1,980 | 1,854 | 1,731 | |
(Increase) decrease in accrued income and other assets | (8,477) | (6,573) | (4,890) | |
Increase in accrued expenses and other liabilities | 10,175 | 12,113 | 240 | |
Total Adjustments | 2,021 | (12,455) | 5,082 | |
Net Cash From Operating Activities | 58,173 | 33,980 | 44,921 | |
CASH FLOW FROM (USED IN) INVESTING ACTIVITIES [Abstract] | ||||
Maturity of interest bearing deposits - time | 350 | 250 | 3,728 | |
Acquisition of business, less cash received | 0 | 0 | 23,516 | |
Net Cash Used in Investing Activities | (553,397) | (181,642) | (183,367) | |
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES [Abstract] | ||||
Proceeds from issuance of subordinated debt, net of issuance costs | 39,236 | 0 | 0 | |
Dividends paid | (17,618) | (16,554) | (14,055) | |
Proceeds from issuance of common stock | 15 | 284 | 267 | |
Share based compensation withholding obligation | (755) | (882) | (1,467) | |
Repurchase of common stock | (14,231) | (26,284) | (12,681) | |
Net Cash From Financing Activities | 548,625 | 142,722 | 153,952 | |
Cash and Cash Equivalents at Beginning of Year | 65,304 | |||
Cash and Cash Equivalents at End of Year | 118,705 | 65,304 | ||
Parent Company [Member] | ||||
ASSETS [Abstract] | ||||
Cash and due from banks | 10,466 | 10,505 | ||
Interest bearing deposits - time | 40,000 | 10,000 | ||
Investment in subsidiaries | 418,465 | 369,861 | ||
Accrued income and other assets | 805 | 463 | ||
Total Assets | 469,736 | 390,829 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||||
Subordinated debt | 39,281 | 0 | ||
Subordinated debentures | 39,524 | 39,456 | ||
Accrued expenses and other liabilities | 684 | 575 | ||
Shareholders' equity | 390,247 | 350,798 | ||
Total Liabilities and Shareholders' Equity | 469,736 | 390,829 | ||
OPERATING INCOME [Abstract] | ||||
Dividends from subsidiary | 24,000 | 29,000 | 33,500 | |
Interest income | 99 | 230 | 160 | |
Other income | 42 | 61 | 56 | |
Total Operating Income | 24,141 | 29,291 | 33,716 | |
OPERATING EXPENSES [Abstract] | ||||
Interest expense | 2,893 | 2,104 | 1,924 | |
Administrative and other expenses | 733 | 655 | 748 | |
Total Operating Expenses | 3,626 | 2,759 | 2,672 | |
Income Before Income Tax | 20,515 | 26,532 | 31,044 | |
Income tax benefit | (937) | (423) | (515) | |
Income Before Equity in Undistributed Net Income of Subsidiaries | 21,452 | 26,955 | 31,559 | |
Equity in undistributed net income of subsidiaries | 34,700 | 19,480 | 8,280 | |
Net Income | 56,152 | 46,435 | 39,839 | |
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | ||||
Net Income | 56,152 | 46,435 | 39,839 | |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES [Abstract] | ||||
Deferred income tax (benefit) expense | (34) | 1,503 | 6,620 | |
Share based compensation | 89 | 65 | 53 | |
Accretion of discount on subordinated debt and debentures | 113 | 68 | 51 | |
(Increase) decrease in accrued income and other assets | (307) | 891 | (1,307) | |
Increase in accrued expenses and other liabilities | 109 | 45 | 21 | |
Equity in undistributed net income of subsidiaries | (34,700) | (19,480) | (8,280) | |
Total Adjustments | (34,730) | (16,908) | (2,842) | |
Net Cash From Operating Activities | 21,422 | 29,527 | 36,997 | |
CASH FLOW FROM (USED IN) INVESTING ACTIVITIES [Abstract] | ||||
Purchases of interest bearing deposits - time | (85,000) | (20,000) | (30,000) | |
Maturity of interest bearing deposits - time | 55,000 | 35,000 | 10,000 | |
Acquisition of business, less cash received | 0 | 0 | 431 | |
Net Cash Used in Investing Activities | (30,000) | 15,000 | (19,569) | |
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES [Abstract] | ||||
Proceeds from issuance of subordinated debt, net of issuance costs | 39,236 | 0 | 0 | |
Dividends paid | (17,618) | (16,554) | (14,055) | |
Proceeds from issuance of common stock | 1,907 | 2,074 | 1,945 | |
Share based compensation withholding obligation | (755) | (882) | (1,467) | |
Repurchase of common stock | (14,231) | (26,284) | (12,681) | |
Net Cash From Financing Activities | 8,539 | (41,646) | (26,258) | |
Net Increase (Decrease) in Cash and Cash Equivalents | (39) | 2,881 | (8,830) | |
Cash and Cash Equivalents at Beginning of Year | 10,505 | 7,624 | 16,454 | |
Cash and Cash Equivalents at End of Year | $ 10,466 | $ 10,505 | $ 7,624 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)Asset | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract] | |||
Percentage of revenues excluded from ASC Topic 606 | 88.10% | 84.90% | |
Contract assets | $ 0 | ||
Contract liabilities | $ 0 | ||
Number of real estate assets sold during the period | Asset | 0 | ||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | $ 24,026 | $ 25,953 | $ 27,126 |
Bank owned life insurance | 910 | 1,111 | 970 |
Other | 2,332 | 3,723 | 2,827 |
Total | 7,521 | 9,282 | 8,760 |
Service Charges on Deposit Accounts [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 8,517 | 11,208 | 12,258 |
Overdraft Fees [Member] | Retail [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 5,627 | 7,590 | 8,285 |
Overdraft Fees [Member] | Business [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 873 | 1,515 | 1,567 |
Account Service Charges [Member] | Retail [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 2,017 | 2,103 | 2,406 |
Other Deposit Related Income [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 2,308 | 2,790 | 2,992 |
ATM Fees [Member] | Retail [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 1,173 | 1,368 | 1,423 |
ATM Fees [Member] | Business [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 24 | 35 | 34 |
Other [Member] | Retail [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 769 | 965 | 941 |
Other [Member] | Business [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 342 | 422 | 594 |
Interchange Income [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 11,230 | 10,297 | 9,905 |
Investment and Insurance Commissions [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 1,971 | 1,658 | 1,971 |
Asset Management Revenue [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | 1,283 | 1,123 | 1,100 |
Transaction Based Revenue [Member] | |||
Disaggregation of Revenue Sources by Attributes [Abstract] | |||
Revenue from contracts with customers | $ 688 | $ 535 | $ 871 |
RECENT ACQUISITION (Details)
RECENT ACQUISITION (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Recent Acquisition [Abstract] | ||||
Fair value of equity issued under merger agreement | $ 0 | $ 0 | $ 64,536 | |
Non-interest expense amount | 0 | 0 | 3,465 | |
TCSB Bancorp, Inc. [Member] | ||||
Recent Acquisition [Abstract] | ||||
Equity interest issued to each holder of common stock under merger agreement (in shares) | 1.1166 | |||
Total value of common stock and cash paid in lieu of fractional shares | $ 5 | |||
Equity issued under merger agreement (in shares) | 2,710,000 | |||
Options issued under merger agreement (in shares) | 190,000 | |||
Fair value of equity issued under merger agreement | $ 64,500 | |||
Non-interest expense amount | $ 0 | $ 0 | $ 3,500 |