Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ISABELLA BANK CORP | |
Entity Central Index Key | 842,517 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,897,660 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | ||
Cash and demand deposits due from banks | $ 15,739 | $ 25,267 |
Interest bearing balances due from banks | 973 | 5,581 |
Total cash and cash equivalents | 16,712 | 30,848 |
Available-for-sale Securities, Debt Securities | 547,762 | 548,730 |
Available-for-sale Securities, Equity Securities | 3,575 | 3,577 |
Mortgage loans AFS | 359 | 1,560 |
Loans | ||
Commercial | 643,636 | 634,759 |
Agricultural | 122,330 | 128,269 |
Residential real estate | 270,150 | 272,368 |
Consumer | 56,886 | 56,123 |
Gross loans | 1,093,002 | 1,091,519 |
Less allowance for loan losses | 8,200 | 7,700 |
Net loans | 1,084,802 | 1,083,819 |
Premises and equipment | 28,493 | 28,450 |
Corporate owned life insurance | 27,196 | 27,026 |
Accrued interest receivable | 7,134 | 7,063 |
Equity securities without readily determinable fair values | 23,391 | 23,454 |
Goodwill and other intangible assets | 48,522 | 48,547 |
Other assets | 11,646 | 10,056 |
TOTAL ASSETS | 1,799,592 | 1,813,130 |
Deposits | ||
Noninterest bearing | 223,798 | 237,511 |
NOW accounts | 235,965 | 231,666 |
Certificates of deposit under $250 and other savings | 765,325 | 728,090 |
Certificates of deposit over $250 | 72,780 | 67,991 |
Total deposits | 1,297,868 | 1,265,258 |
Borrowed funds | 303,113 | 344,878 |
Accrued interest payable and other liabilities | 7,521 | 8,089 |
Total liabilities | 1,608,502 | 1,618,225 |
Shareholders' equity | ||
Common stock — no par value 15,000,000 shares authorized; issued and outstanding 7,894,341 shares (including 27,705 shares held in the Rabbi Trust) in 2018 and 7,857,293 shares (including 31,769 shares held in the Rabbi Trust) in 2017 | 141,318 | 140,277 |
Shares to be issued for deferred compensation obligations | 5,502 | 5,502 |
Retained earnings | 52,926 | 51,728 |
Accumulated other comprehensive income | (8,656) | (2,602) |
Total shareholders' equity | 191,090 | 194,905 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,799,592 | $ 1,813,130 |
Interim Condensed Consolidated3
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, amortized cost | $ 555,001 | |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,894,341 | 7,857,293 |
Common stock, shares outstanding | 7,894,341 | 7,857,293 |
Common stock, shares held in Rabbi Trust | 27,705 | 31,769 |
Interim Condensed Consolidated4
Interim Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest income | ||
Loans, including fees | $ 11,296 | $ 10,120 |
AFS securities | ||
Taxable | 2,122 | 2,113 |
Nontaxable | 1,382 | 1,415 |
Federal funds sold and other | 321 | 213 |
Total interest income | 15,121 | 13,861 |
Interest expense | ||
Deposits | 2,046 | 1,540 |
Borrowings | 1,355 | 1,291 |
Total interest expense | 3,401 | 2,831 |
Net interest income | 11,720 | 11,030 |
Provision for loan losses | 384 | 27 |
Net interest income after provision for loan losses | 11,336 | 11,003 |
Noninterest income | ||
Service charges and fees | 1,488 | 1,530 |
Net gain on sale of mortgage loans | 81 | 155 |
Earnings on corporate owned life insurance policies | 170 | 180 |
Other | 748 | 751 |
Total noninterest income | 2,487 | 2,616 |
Noninterest expenses | ||
Compensation and benefits | 5,494 | 5,557 |
Furniture and equipment | 1,479 | 1,344 |
Occupancy | 824 | 837 |
Other | 2,299 | 2,213 |
Total noninterest expenses | 10,096 | 9,951 |
Income before federal income tax expense | 3,727 | 3,668 |
Federal Income Tax Expense (Benefit), Continuing Operations | 265 | 532 |
NET INCOME | $ 3,462 | $ 3,136 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.44 | $ 0.40 |
Diluted (in dollars per share) | 0.43 | 0.39 |
Cash dividends per basic share (in dollars per share) | $ 0.26 | $ 0.25 |
Interim Condensed Consolidated5
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,462 | $ 3,136 |
Unrealized gains (losses) on AFS securities | ||
Unrealized gains (losses) on AFS securities arising during the period | 8,057 | (1,677) |
Tax effect | 1,684 | (450) |
Unrealized gains (losses) on AFS securities, net of tax | (6,373) | 1,227 |
Unrealized gains (losses) on derivative instruments arising during the period | 122 | 17 |
Tax effect | (26) | (6) |
Unrealized gains (losses) on derivative instruments, net of tax | 96 | 11 |
Other comprehensive income (loss), net of tax | (6,277) | 1,238 |
Comprehensive income | $ (2,815) | $ 4,374 |
Interim Condensed Consolidated6
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Shares to be Issued for Deferred Compensation Obligations | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balances at Dec. 31, 2016 | $ 187,899 | $ 139,525 | $ 5,038 | $ 46,114 | $ (2,778) |
Beginning balances, shares at Dec. 31, 2016 | 7,821,069 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 4,374 | 3,136 | 1,238 | ||
Issuance of common stock | 1,770 | $ 1,770 | |||
Issuance of common stock, shares | 63,866 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 168 | (168) | ||
Share based payment awards under equity compensation plan | 178 | 178 | |||
Common stock purchased for deferred compensation obligations | (123) | (123) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (1,169) | $ (1,169) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (41,815) | ||||
Cash dividends | (1,953) | (1,953) | |||
Ending balances at Mar. 31, 2017 | 190,976 | $ 140,171 | 5,048 | 47,297 | (1,540) |
Ending balances, shares at Mar. 31, 2017 | 7,843,120 | ||||
Beginning balances at Dec. 31, 2017 | $ 194,905 | $ 140,277 | 5,502 | 51,728 | (2,602) |
Beginning balances, shares at Dec. 31, 2017 | 7,857,293 | 7,857,293 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | $ (2,815) | 3,462 | (6,277) | ||
Issuance of common stock | 1,616 | $ 1,616 | |||
Issuance of common stock, shares | 59,560 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 146 | (146) | ||
Share based payment awards under equity compensation plan | 146 | 146 | |||
Common stock purchased for deferred compensation obligations | (101) | (101) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (620) | $ (620) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (22,512) | ||||
Cash dividends | (2,041) | (2,041) | |||
Ending balances at Mar. 31, 2018 | $ 191,090 | $ 141,318 | $ 5,502 | 52,926 | (8,656) |
Ending balances, shares at Mar. 31, 2018 | 7,894,341 | 7,894,341 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | $ (223) | $ 223 |
Interim Condensed Consolidated7
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per share (in dollars per share) | $ 0.26 | $ 0.25 |
Interim Condensed Consolidated8
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 3,462 | $ 3,136 |
Reconciliation of net income to net cash provided by operating activities: | ||
Provision for loan losses | 384 | 27 |
Impairment of foreclosed assets | 0 | 28 |
Depreciation | 717 | 722 |
Amortization of OMSR | 67 | 81 |
Amortization of acquisition intangibles | 25 | 31 |
Net amortization of AFS securities | 491 | 530 |
Unrealized Gain (Loss) on Securities | 2 | 0 |
Net gain on sale of mortgage loans | (81) | (155) |
Increase in cash value of corporate owned life insurance policies | (170) | (180) |
Share-based payment awards under equity compensation plan | 146 | 178 |
Proceeds from loan sales | (3,843) | (8,432) |
Proceeds from loan sales | 5,125 | 8,635 |
Net changes in operating assets and liabilities which provided (used) cash: | ||
Accrued interest receivable | (71) | (466) |
Other assets | 124 | 322 |
Accrued interest payable and other liabilities | (568) | (70) |
Net cash provided by (used in) operating activities | 5,810 | 4,387 |
Activity in AFS securities | ||
Maturities and calls | 14,262 | 19,413 |
Purchases | (21,842) | (50,284) |
Net loan principal (originations) collections | (1,375) | (2,258) |
Proceeds from sales of foreclosed assets | 70 | 71 |
Purchases of premises and equipment | (760) | (390) |
Net cash provided by (used in) investing activities | (9,645) | (33,448) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 32,610 | 36,021 |
Increase in other borrowed funds | (41,765) | (10,319) |
Cash dividends paid on common stock | (2,041) | (1,953) |
Proceeds from issuance of common stock | 1,616 | 1,770 |
Common stock repurchased | (620) | (1,169) |
Common stock purchased for deferred compensation obligations | (101) | (123) |
Increase (decrease) in cash and cash equivalents | (14,136) | (4,834) |
Cash and cash equivalents at beginning of period | 30,848 | 22,894 |
Cash and cash equivalents at end of period | 16,712 | 18,060 |
Net cash provided by (used in) financing activities | (10,301) | 24,227 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Interest paid | 3,405 | 2,823 |
Federal income taxes paid | 0 | 0 |
SUPPLEMENTAL NONCASH INFORMATION: | ||
Transfers of loans to foreclosed assets | $ 8 | $ 26 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation As used in these notes, as well as in Management's Discussion and Analysis of Financial Condition and Results of Operations , references to “Isabella,” the “Corporation,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of Isabella Bank Corporation and its subsidiaries. Isabella Bank Corporation refers solely to the parent holding company, and Isabella Bank or the “Bank” refers to Isabella Bank Corporation ’s subsidiary, Isabella Bank . The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2017 . Our accounting policies are materially the same as those discussed in Note 1 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Reclassifications: Certain amounts reported in the interim 2017 consolidated financial statements have been reclassified to conform with the 2018 presentation. |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Common Share | Computation of Earnings Per Common Share Basic earnings per common share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate solely to outstanding shares in the Directors Plan . Three Months Ended 2018 2017 Average number of common shares outstanding for basic calculation 7,873,948 7,827,143 Average potential effect of common shares in the Directors Plan (1) 199,270 191,533 Average number of common shares outstanding used to calculate diluted earnings per common share 8,073,218 8,018,676 Net income $ 3,462 $ 3,136 Earnings per common share Basic $ 0.44 $ 0.40 Diluted $ 0.43 $ 0.39 (1) Exclusive of shares held in the Rabbi Trust |
Pending Accounting Standards Up
Pending Accounting Standards Updates | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Pending Accounting Standards Updates | Accounting Standards Updates Recently Adopted Accounting Standards Updates ASU No. 2014-09: “Revenue from Contracts with Customers” In May 2014, ASU No. 2014-09 created new Topic 606 to provide a common revenue standard to achieve consistency and clarification to the revenue recognition principles. The guidance outlines steps to achieve the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. These steps consist of: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new authoritative guidance, as amended, was effective on January 1, 2018. We reviewed our contracts related to trust and investment services and those related to other noninterest income to determine if changes in income recognition were required as a result of this guidance. Implementation of this guidance did not have a significant impact on our operating results for the three month period ended March 31, 2018. ASU No. 2016-01: “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities” In January 2016, ASU No. 2016-01 set forth the following: 1) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment and requiring measurement of the investment at fair value when an impairment exists; 3) for public entities, eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; 4) for public entities, requires the use of exit price notion when measuring the fair value of financial instruments for disclosure purposes; 5) requires an entity to present separately in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; 6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and 7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2017. As a result of this guidance, the change in the fair value of equity investments has been recorded in net income beginning on January 1, 2018. Equity securities are now recorded separately from AFS securities and are recorded at a fair value which approximates an exit price notion. Adoption of this guidance had an insignificant impact on our operations and its future impact will depend on the fair value of these investments at the future measurement dates. The disclosures related to equity investment securities reflect a fully retrospective presentation for comparative purposes. For discussion of the fair value measurement of financial instruments, refer to “ Note 11 – Fair Value ”. In February 2018, ASU No. 2018-03: “Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10: Recognition and Measurement of Financial Assets and Financial Liabilities” was issued. This update sets forth correction or improvement amendments for specific issues that may arise within the scope of ASU 2016-01. These amendments follow ASU 2016-01 with regard to effective dates. ASU No. 2017-09: “ Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting” In May 2017, ASU No. 2017-09 was issued and provided guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this update. An entity should account for the effects of a modification unless all of the following are met: 1. The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. 2. The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. 3. The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2017 and did not have a significant impact on our operating results or financial statement disclosures. Pending Accounting Standards Updates ASU No. 2016-02: “Leases (Topic 842)” In February 2016, ASU No. 2016-02 was issued to create Topic 842 - Leases which will require recognition of lease assets and lease liabilities on the balance sheet for leases previously classified as operating leases. Accounting guidance is set forth for both lessee and lessor accounting. Under lessee accounting, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For finance leases, a lessee is required to do the following: 1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position; 2) recognize interest on the lease liability separately from amortization of the right-of-use asset in the statement of comprehensive income; and 3) classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. For operating leases, a lessee is required to do the following: 1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position; 2) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis; and 3) classify all cash payments within operating activities in the statement of cash flows. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2018. We have and will continue to review our lease agreements to determine the appropriate treatment under this guidance. We do not expect these changes to have a significant impact on our operating results or financial statement disclosures. ASU No. 2016-13: “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In June 2016, ASU No. 2016-13 updated the measurement for credit losses for AFS debt securities and assets measured at amortized cost which include loans, trade receivables, and any other financial assets with the contractual right to receive cash. Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. Under the incurred loss approach, entities are limited to a probable initial recognition threshold when credit losses are measured under GAAP; an entity generally only considers past events and current conditions in measuring the incurred loss. Under the new guidance, the incurred loss impairment methodology in current GAAP is replaced with a methodology that reflects current expected credit losses (CECL). This methodology requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances which applies to assets measured either collectively or individually. The update allows an entity to revert to historical loss information that is reflective of the contractual term (considering the effect of prepayments) for periods that are beyond the time frame for which the entity is able to develop reasonable and supportable forecasts. In addition, the disclosures of credit quality indicators in relation to the amortized cost of financing receivables, a current disclosure requirement, are further disaggregated by year of origination (or vintage). The vintage information will be useful for financial statement users to better assess changes in underwriting standards and credit quality trends in asset portfolios over time and the effect of those changes on credit losses. Overall, the update will allow entities the ability to measure expected credit losses without the restriction of incurred or probable losses that exist under current GAAP. For users of the financial statements, the update provides decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2019 and may have a significant impact on our operations and financial statement disclosures as well as that of the banking industry as a whole. We have invested a considerable amount of effort toward this guidance and will continue to invest considerable effort until its effective date. A committee was formed and has developed a road map to implementation. This committee will monitor progress to ensure timely and accurate adoption of the guidance. We are working to identify and collect required borrower and loan level data. We recognize that quality data is key to properly identify loan segments and then apply the most appropriate methodology to each segment. We anticipate a significant amount of progress during 2018 to position ourselves to be able to run parallel models during 2019. This will allow us to solidify our methodology for implementation in 2020. |
AFS Securities
AFS Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
AFS Securities | AFS Securities The amortized cost and fair value of AFS securities , with gross unrealized gains and losses, are as follows at: March 31, 2018 Amortized Gross Gross Fair Government sponsored enterprises $ 205 $ — $ 3 $ 202 States and political subdivisions 209,788 2,240 395 211,633 Auction rate money market preferred 3,200 — 188 3,012 Mortgage-backed securities 212,713 103 5,955 206,861 Collateralized mortgage obligations 129,095 73 3,114 126,054 Total $ 555,001 $ 2,416 $ 9,655 $ 547,762 December 31, 2017 Amortized Gross Gross Fair Government sponsored enterprises $ 217 $ — $ 1 $ 216 States and political subdivisions 204,131 4,486 143 208,474 Auction rate money market preferred 3,200 — 151 3,049 Mortgage-backed securities 210,757 390 2,350 208,797 Collateralized mortgage obligations 129,607 160 1,573 128,194 Total $ 547,912 $ 5,036 $ 4,218 $ 548,730 The amortized cost and fair value of AFS securities by contractual maturity at March 31, 2018 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total Government sponsored enterprises $ — $ 205 $ — $ — $ — $ 205 States and political subdivisions 24,933 79,352 71,772 33,731 — 209,788 Auction rate money market preferred — — — — 3,200 3,200 Mortgage-backed securities — — — — 212,713 212,713 Collateralized mortgage obligations — — — — 129,095 129,095 Total amortized cost $ 24,933 $ 79,557 $ 71,772 $ 33,731 $ 345,008 $ 555,001 Fair value $ 24,968 $ 80,351 $ 72,692 $ 33,824 $ 335,927 $ 547,762 Expected maturities for government sponsored enterprises and states and political subdivisions may differ from contractual maturities because issuers may have the right to call or prepay obligations. As the auction rate money market preferred stocks have continual call dates, they are not reported by a specific maturity group. Because of their variable monthly payments, mortgage-backed securities and collateralized mortgage obligations are not reported by a specific maturity group. The following information pertains to AFS securities with gross unrealized losses at March 31, 2018 and December 31, 2017 , aggregated by investment category and length of time that individual securities have been in a continuous loss position. March 31, 2018 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ 3 $ 202 $ — $ — $ 3 States and political subdivisions 395 32,838 — 150 395 Auction rate money market preferred — — 188 3,012 188 Mortgage-backed securities 2,756 121,210 3,199 71,928 5,955 Collateralized mortgage obligations 1,998 96,415 1,116 23,922 3,114 Total $ 5,152 $ 250,665 $ 4,503 $ 99,012 $ 9,655 Number of securities in an unrealized loss position: 151 24 175 December 31, 2017 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ 1 $ 216 $ — $ — $ 1 States and political subdivisions 142 16,139 1 188 143 Auction rate money market preferred — — 151 3,049 151 Mortgage-backed securities 454 72,007 1,896 76,065 2,350 Collateralized mortgage obligations 701 76,435 872 25,308 1,573 Total $ 1,298 $ 164,797 $ 2,920 $ 104,610 $ 4,218 Number of securities in an unrealized loss position: 81 24 105 As of March 31, 2018 and December 31, 2017 , we conducted an analysis to determine whether any AFS securities currently in an unrealized loss position should be other-than-temporarily impaired. Such analyses considered, among other factors, the following criteria: • Has the value of the investment declined more than what is deemed to be reasonable based on a risk and maturity adjusted discount rate? • Is the investment credit rating below investment grade? • Is it probable the issuer will be unable to pay the amount when due? • Is it more likely than not that we will have to sell the security before recovery of its cost basis? • Has the duration of the investment been extended? During the fourth quarter of 2016, we identified one municipal bond as other-than-temporarily impaired. While management estimated the OTTI to be realized, we also engaged the services of an independent investment valuation firm to estimate the amount of impairment as of December 31, 2016 . The valuation calculated the estimated market value utilizing two different approaches: 1) Market - Appraisal and Comparable Investments 2) Income - Discounted Cash Flow Method The two methods were then weighted, with a higher weighting applied to the Market approach, to determine the estimated impairment. As a result of this analysis, we reduced the carrying value to $230 which required us to recognized an OTTI of $770 in earnings for the year ended December 31, 2016 . Based on internal analysis of this bond as of March 31, 2018 , there was no additional OTTI recognized as of March 31, 2018 and the carrying value of this bond remained at $230 . The following table provides a roll-forward of credit related impairment recorded in earnings for the: Three Months Ended 2018 2017 Balance at beginning of the period $ 770 $ 770 Additions to credit losses for which no previous OTTI was recognized — — Reductions for credit losses realized on securities sold during the period — — Balance at end of the period $ 770 $ 770 Based on our analysis which included the criteria outlined above, the fact that we have asserted that we do not have the intent to sell AFS securities in an unrealized loss position, and considering it is unlikely that we will have to sell any AFS securities in an unrealized loss position before recovery of their cost basis, we do not believe that the values of any other AFS securities are other-than-temporarily impaired as of March 31, 2018 or December 31, 2017 , with the exception of the one municipal bond discussed above. |
Loans and ALLL
Loans and ALLL | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans and ALLL | Loans and ALLL We grant commercial, agricultural, residential real estate, and consumer loans to customers situated primarily in Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties in Michigan. The ability of the borrowers to honor their repayment obligations is often dependent upon the real estate, agricultural, manufacturing, retail, gaming, tourism, higher education, and general economic conditions of this region. Substantially all of our consumer and residential real estate loans are secured by various items of property, while commercial loans are secured primarily by real estate, business assets, and personal guarantees. Some loans are unsecured. Loans that we have the intent and ability to hold in our portfolio are reported at their outstanding principal balance adjusted for any charge-offs , the ALLL , and any deferred fees or costs. Interest income is accrued over the term of the loan based on the principal amount outstanding. Loan origination fees and certain direct loan origination costs are capitalized and recognized as a component of interest income over the term of the loan using the level yield method. The accrual of interest on commercial, agricultural, and residential real estate loans is discontinued at the time the loan is 90 days or more past due unless the credit is well-secured and in the process of collection. Upon transferring the loans to nonaccrual status, we perform an evaluation to determine the net realizable value of the underlying collateral. This evaluation is used to help determine if any charge-offs are necessary. Consumer loans are typically charged-off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. For loans that are placed on nonaccrual status or charged-off , all interest accrued in the current calendar year, but not collected, is reversed against interest income while interest accrued in prior calendar years, but not collected, is charged against the ALLL . Loans may be returned to accrual status after six months of continuous performance and achievement of current payment status. Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, advances to mortgage brokers, farmland and agricultural production, and states and political subdivisions. Repayment of these loans is dependent upon the successful operation and management of a business. We minimize our risk by limiting the amount of direct credit exposure to any one borrower to $15,000 . Borrowers with direct credit needs of more than $15,000 are serviced through the use of loan participations with other commercial banks. Commercial and agricultural real estate loans commonly require loan-to-value limits of 80% or less. Depending upon the type of loan, past credit history, and current operating results, we may require the borrower to pledge accounts receivable, inventory, and property and equipment. Personal guarantees are generally required from the owners of closely held corporations, partnerships, and sole proprietorships. In addition, we require annual financial statements, prepare cash flow analyses, and review credit reports. We entered into a mortgage purchase program in 2016 with a financial institution where we participate in advances to mortgage brokers ("advances"). The mortgage brokers originate residential mortgage loans with the intent to sell them on the secondary market. We participate in the advance to the mortgage broker, which is secured by the underlying mortgage loan, until it is ultimately sold on the secondary market. As such, the average life of each participated advance is approximately 20 - 30 days. Funds from the sale of the loan are used to pay off our participation in the advance to the mortgage broker. We classify these advances as commercial loans and include the outstanding balance in commercial loans on our balance sheet. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $30,000 . The difference between our outstanding balances and the maximum outstanding aggregate amount is classified as “ Unfunded commitments under lines of credit ” in the “ Contractual Obligations and Loan Commitments ” section of the Management's Discussion and Analysis of Financial Condition and Results of Operations of this report. We offer adjustable rate mortgages, construction loans, and fixed rate residential real estate loans which have amortization periods up to a maximum of 30 years. We consider the anticipated direction of interest rates, balance sheet duration, the sensitivity of our balance sheet to changes in interest rates, and overall loan demand to determine whether or not to sell fixed rate loans to Freddie Mac . Our lending policies generally limit the maximum loan-to-value ratio on residential real estate loans to 100% of the lower of the appraised value of the property or the purchase price. Private mortgage insurance is typically required on loans with loan-to-value ratios in excess of 80% unless the loan qualifies for government guarantees. Underwriting criteria for originated residential real estate loans generally include: • Evaluation of the borrower’s ability to make monthly payments. • Evaluation of the value of the property securing the loan. • Ensuring the payment of principal, interest, taxes, and hazard insurance does not exceed 28% of a borrower’s gross income. • Ensuring all debt servicing does not exceed 40% of income. • Verification of acceptable credit reports. • Verification of employment, income, and financial information. Appraisals are performed by independent appraisers and reviewed for appropriateness. All mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market underwriting system; loans in excess of $500 require the approval of our Internal Loan Committee, the Executive Loan Committee, the Board of Directors’ Loan Committee, or the Board of Directors. Consumer loans include secured and unsecured personal loans. Loans are amortized for a period of up to 15 years based on the age and value of the underlying collateral. The underwriting emphasis is on a borrower’s perceived intent and ability to pay rather than collateral value. No consumer loans are sold to the secondary market. The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the ALLL when we believe the uncollectability of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL . The appropriateness of the ALLL is evaluated on a quarterly basis and is based upon a periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The primary factors behind the determination of the level of the ALLL are specific allocations for impaired loans, historical loss percentages, as well as unallocated components. Specific allocations for impaired loans are primarily determined based on the difference between the loan’s outstanding balance and the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell. Historical loss allocations are calculated at the loan class and segment levels based on a migration analysis of the loan portfolio, with the exception of advances to mortgage brokers, over the preceding five years. With no historical losses on advances to mortgage brokers, there is no allocation in the commercial segment displayed in the following tables based on historical loss factors. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A summary of changes in the ALLL and the recorded investment in loans by segments follows: Allowance for Loan Losses Three Months Ended March 31, 2018 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2018 $ 1,706 $ 611 $ 2,563 $ 900 $ 1,920 $ 7,700 Charge-offs (5 ) — (10 ) (88 ) — (103 ) Recoveries 103 — 56 60 — 219 Provision for loan losses 36 613 (127 ) (77 ) (61 ) 384 March 31, 2018 $ 1,840 $ 1,224 $ 2,482 $ 795 $ 1,859 $ 8,200 Allowance for Loan Losses and Recorded Investment in Loans March 31, 2018 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 842 $ 141 $ 1,520 $ — $ — $ 2,503 Collectively evaluated for impairment 998 1,083 962 795 1,859 5,697 Total $ 1,840 $ 1,224 $ 2,482 $ 795 $ 1,859 $ 8,200 Loans Individually evaluated for impairment $ 11,675 $ 11,468 $ 7,940 $ 12 $ 31,095 Collectively evaluated for impairment 631,961 110,862 262,210 56,874 1,061,907 Total $ 643,636 $ 122,330 $ 270,150 $ 56,886 $ 1,093,002 Allowance for Loan Losses Three Months Ended March 31, 2017 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2017 $ 1,814 $ 884 $ 2,664 $ 624 $ 1,414 $ 7,400 Charge-offs (27 ) — (43 ) (74 ) — (144 ) Recoveries 133 — 36 48 — 217 Provision for loan losses (149 ) (357 ) 441 73 19 27 March 31, 2017 $ 1,771 $ 527 $ 3,098 $ 671 $ 1,433 $ 7,500 Allowance for Loan Losses and Recorded Investment in Loans December 31, 2017 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 650 $ — $ 1,480 $ — $ — $ 2,130 Collectively evaluated for impairment 1,056 611 1,083 900 1,920 5,570 Total $ 1,706 $ 611 $ 2,563 $ 900 $ 1,920 $ 7,700 Loans Individually evaluated for impairment $ 8,099 $ 10,598 $ 7,939 $ 17 $ 26,653 Collectively evaluated for impairment 626,660 117,671 264,429 56,106 1,064,866 Total $ 634,759 $ 128,269 $ 272,368 $ 56,123 $ 1,091,519 The following table displays the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit risk ratings as of: March 31, 2018 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ 23 $ — $ — $ 23 $ — $ 34 $ 34 $ 57 2 - High quality 5,417 14,939 — 20,356 2,783 814 3,597 23,953 3 - High satisfactory 117,378 44,538 17,974 179,890 20,474 6,094 26,568 206,458 4 - Low satisfactory 337,859 84,149 — 422,008 46,040 18,066 64,106 486,114 5 - Special mention 8,615 1,562 — 10,177 9,618 5,192 14,810 24,987 6 - Substandard 5,424 2,191 — 7,615 6,435 4,887 11,322 18,937 7 - Vulnerable 2,364 1,203 — 3,567 1,529 364 1,893 5,460 8 - Doubtful — — — — — — — — Total $ 477,080 $ 148,582 $ 17,974 $ 643,636 $ 86,879 $ 35,451 $ 122,330 $ 765,966 December 31, 2017 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ 24 $ 316 $ — $ 340 $ — $ 34 $ 34 $ 374 2 - High quality 8,402 12,262 — 20,664 2,909 1,024 3,933 24,597 3 - High satisfactory 131,826 46,668 12,081 190,575 21,072 8,867 29,939 220,514 4 - Low satisfactory 326,166 75,591 — 401,757 47,835 18,467 66,302 468,059 5 - Special mention 8,986 3,889 — 12,875 10,493 8,546 19,039 31,914 6 - Substandard 5,521 2,298 — 7,819 4,325 2,747 7,072 14,891 7 - Vulnerable 729 — — 729 1,531 419 1,950 2,679 8 - Doubtful — — — — — — — — Total $ 481,654 $ 141,024 $ 12,081 $ 634,759 $ 88,165 $ 40,104 $ 128,269 $ 763,028 Internally assigned credit risk ratings are reviewed, at a minimum, when loans are renewed or when management has knowledge of improvements or deterioration of the credit quality of individual credits. Descriptions of the internally assigned credit risk ratings for commercial and agricultural loans are as follows: 1. EXCELLENT – Substantially Risk Free Credit has strong financial condition and solid earnings history, characterized by: • High liquidity, strong cash flow, low leverage. • Unquestioned ability to meet all obligations when due. • Experienced management, with management succession in place. • Secured by cash. 2. HIGH QUALITY – Limited Risk Credit with sound financial condition and a positive trend in earnings supplemented by: • Favorable liquidity and leverage ratios. • Ability to meet all obligations when due. • Management with successful track record. • Steady and satisfactory earnings history. • If loan is secured, collateral is of high quality and readily marketable. • Access to alternative financing. • Well defined primary and secondary source of repayment. • If supported by guaranty, the financial strength and liquidity of the guarantor(s) are clearly evident. 3. HIGH SATISFACTORY – Reasonable Risk Credit with satisfactory financial condition and further characterized by: • Working capital adequate to support operations. • Cash flow sufficient to pay debts as scheduled. • Management experience and depth appear favorable. • Loan performing according to terms. • If loan is secured, collateral is acceptable and loan is fully protected. 4. LOW SATISFACTORY – Acceptable Risk Credit with bankable risks, although some signs of weaknesses are shown: • Would include most start-up businesses. • Occasional instances of trade slowness or repayment delinquency – may have been 10 - 30 days slow within the past year. • Management’s abilities are apparent, yet unproven. • Weakness in primary source of repayment with adequate secondary source of repayment. • Loan structure generally in accordance with policy. • If secured, loan collateral coverage is marginal. • Adequate cash flow to service debt, but coverage is low. To be classified as less than satisfactory, only one of the following criteria must be met. 5. SPECIAL MENTION – Criticized Credit constitutes an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances surrounding a specific loan: • Downward trend in sales, profit levels, and margins. • Impaired working capital position. • Cash flow is strained in order to meet debt repayment. • Loan delinquency ( 30 - 60 days) and overdrafts may occur. • Shrinking equity cushion. • Diminishing primary source of repayment and questionable secondary source. • Management abilities are questionable. • Weak industry conditions. • Litigation pending against the borrower. • Collateral or guaranty offers limited protection. • Negative debt service coverage, however the credit is well collateralized and payments are current. 6. SUBSTANDARD – Classified Credit where the borrower’s current net worth, paying capacity, and value of the collateral pledged is inadequate. There is a distinct possibility that we will implement collection procedures if the loan deficiencies are not corrected. In addition, the following characteristics may apply: • Sustained losses have severely eroded the equity and cash flow. • Deteriorating liquidity. • Serious management problems or internal fraud. • Original repayment terms liberalized. • Likelihood of bankruptcy. • Inability to access other funding sources. • Reliance on secondary source of repayment. • Litigation filed against borrower. • Collateral provides little or no value. • Requires excessive attention of the loan officer. • Borrower is uncooperative with loan officer. 7. VULNERABLE – Classified Credit is considered “Substandard” and warrants placing on nonaccrual status. Risk of loss is being evaluated and exit strategy options are under review. Other characteristics that may apply: • Insufficient cash flow to service debt. • Minimal or no payments being received. • Limited options available to avoid the collection process. • Transition status, expect action will take place to collect loan without immediate progress being made. 8. DOUBTFUL – Workout Credit has all the weaknesses inherent in a “Substandard” loan with the added characteristic that collection and/or liquidation is pending. The possibility of a loss is extremely high, but its classification as a loss is deferred until liquidation procedures are completed, or reasonably estimable. Other characteristics that may apply: • Normal operations are severely diminished or have ceased. • Seriously impaired cash flow. • Original repayment terms materially altered. • Secondary source of repayment is inadequate. • Survivability as a “going concern” is impossible. • Collection process has begun. • Bankruptcy petition has been filed. • Judgments have been filed. • Portion of the loan balance has been charged-off . Our primary credit quality indicator for residential real estate and consumer loans is the individual loan’s past due aging. The following tables summarize the past due and current loans as of: March 31, 2018 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 95 $ 30 $ 51 $ 2,364 $ 2,540 $ 474,540 $ 477,080 Commercial other 1,331 49 — 1,203 2,583 145,999 148,582 Advances to mortgage brokers — — — — — 17,974 17,974 Total commercial 1,426 79 51 3,567 5,123 638,513 643,636 Agricultural Agricultural real estate 805 804 463 1,529 3,601 83,278 86,879 Agricultural other 250 42 18 364 674 34,777 35,451 Total agricultural 1,055 846 481 1,893 4,275 118,055 122,330 Residential real estate Senior liens 3,020 300 22 754 4,096 225,033 229,129 Junior liens 23 — 10 23 56 6,422 6,478 Home equity lines of credit 189 173 100 — 462 34,081 34,543 Total residential real estate 3,232 473 132 777 4,614 265,536 270,150 Consumer Secured 103 — — — 103 52,958 53,061 Unsecured 12 — — — 12 3,813 3,825 Total consumer 115 — — — 115 56,771 56,886 Total $ 5,828 $ 1,398 $ 664 $ 6,237 $ 14,127 $ 1,078,875 $ 1,093,002 December 31, 2017 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 295 $ 325 $ 54 $ 729 $ 1,403 $ 480,251 $ 481,654 Commercial other 1,069 28 18 — 1,115 139,909 141,024 Advances to mortgage brokers — — — — — 12,081 12,081 Total commercial 1,364 353 72 729 2,518 632,241 634,759 Agricultural Agricultural real estate 84 190 — 1,531 1,805 86,360 88,165 Agricultural other 39 — 104 419 562 39,542 40,104 Total agricultural 123 190 104 1,950 2,367 125,902 128,269 Residential real estate Senior liens 3,718 234 132 325 4,409 225,007 229,416 Junior liens 69 10 — 23 102 6,812 6,914 Home equity lines of credit 293 — 77 — 370 35,668 36,038 Total residential real estate 4,080 244 209 348 4,881 267,487 272,368 Consumer Secured 37 10 10 — 57 52,005 52,062 Unsecured 13 — — — 13 4,048 4,061 Total consumer 50 10 10 — 70 56,053 56,123 Total $ 5,617 $ 797 $ 395 $ 3,027 $ 9,836 $ 1,081,683 $ 1,091,519 Impaired Loans Loans may be classified as impaired if they meet one or more of the following criteria: 1. There has been a charge-off of its principal balance (in whole or in part); 2. The loan has been classified as a TDR ; or 3. The loan is in nonaccrual status. Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by comparing the loan’s outstanding balance to the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell, if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Impairment is measured on a loan-by-loan basis for residential real estate and consumer loans by comparing the loan’s unpaid principal balance to the present value of expected future cash flows discounted at the loan’s effective interest rate. We do not recognize interest income on impaired loans in nonaccrual status. For impaired loans not classified as nonaccrual , interest income is recognized daily, as earned, according to the terms of the loan agreement and the principal amount outstanding. The following is a summary of information pertaining to impaired loans as of: March 31, 2018 December 31, 2017 Recorded Balance Unpaid Principal Balance Valuation Allowance Recorded Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 5,946 $ 6,234 $ 639 $ 4,089 $ 4,378 $ 626 Commercial other 2,099 2,099 203 995 995 24 Agricultural real estate 881 881 141 — — — Agricultural other — — — — — — Residential real estate senior liens 7,831 8,459 1,514 7,816 8,459 1,473 Residential real estate junior liens 36 36 6 44 44 7 Total impaired loans with a valuation allowance 16,793 17,709 2,503 12,944 13,876 2,130 Impaired loans without a valuation allowance Commercial real estate 2,466 2,540 1,791 1,865 Commercial other 1,164 1,164 1,224 1,224 Agricultural real estate 8,082 8,082 7,913 7,913 Agricultural other 2,505 2,505 2,685 2,685 Home equity lines of credit 73 373 79 379 Consumer secured 12 12 17 17 Total impaired loans without a valuation allowance 14,302 14,676 13,709 14,083 Impaired loans Commercial 11,675 12,037 842 8,099 8,462 650 Agricultural 11,468 11,468 141 10,598 10,598 — Residential real estate 7,940 8,868 1,520 7,939 8,882 1,480 Consumer 12 12 — 17 17 — Total impaired loans $ 31,095 $ 32,385 $ 2,503 $ 26,653 $ 27,959 $ 2,130 The following is a summary of information pertaining to impaired loans for the: Three Months Ended March 31 2018 2017 Average Recorded Balance Interest Income Recognized Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 5,018 $ 91 $ 5,015 $ 73 Commercial other 1,547 24 1,275 24 Agricultural real estate 441 4 — — Agricultural other — — 67 — Residential real estate senior liens 7,824 74 8,420 83 Residential real estate junior liens 40 — 75 — Total impaired loans with a valuation allowance 14,870 193 14,852 180 Impaired loans without a valuation allowance Commercial real estate 2,129 35 1,326 33 Commercial other 1,194 17 114 2 Agricultural real estate 7,998 40 4,042 62 Agricultural other 2,595 36 1,438 13 Home equity lines of credit 76 5 133 5 Consumer secured 15 — 25 — Total impaired loans without a valuation allowance 14,007 133 7,078 115 Impaired loans Commercial 9,888 167 7,730 132 Agricultural 11,034 80 5,547 75 Residential real estate 7,940 79 8,628 88 Consumer 15 — 25 — Total impaired loans $ 28,877 $ 326 $ 21,930 $ 295 We had committed to advance $637 and $472 in connection with impaired loans, which includes TDRs , as of March 31, 2018 and December 31, 2017 , respectively. Troubled Debt Restructurings Loan modifications are considered to be TDRs when the modification includes terms outside of normal lending practices to a borrower who is experiencing financial difficulties. Typical concessions granted include, but are not limited to: • Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. • Extending the amortization period beyond typical lending guidelines for loans with similar risk characteristics. • Agreeing to an interest only payment structure and delaying principal payments. • Forgiving principal. • Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: • The borrower is currently in default on any of their debt. • The borrower would likely default on any of their debt if the concession was not granted. • The borrower’s cash flow was insufficient to service all of their debt if the concession was not granted. • The borrower has declared, or is in the process of declaring, bankruptcy. • The borrower is unlikely to continue as a going concern (if the entity is a business). The following is a summary of information pertaining to TDRs granted for the: Three Months Ended March 31 2018 2017 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Commercial other 3 $ 1,255 $ 1,255 2 $ 227 $ 227 Agricultural other 2 1,061 1,061 — — — Residential real estate Senior liens 2 167 167 — — — Junior liens — — — 1 8 8 Total residential real estate 2 167 167 1 8 8 Total 7 $ 2,483 $ 2,483 3 $ 235 $ 235 The following table summarizes concessions we granted to borrowers in financial difficulty for the: Three Months Ended March 31 2018 2017 Below Market Interest Rate Below Market Interest Rate and Extension of Amortization Period Below Market Interest Rate Below Market Interest Rate and Extension of Amortization Period Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Commercial other 1 $ 174 2 $ 1,081 — $ — 2 $ 227 Agricultural other 1 98 1 963 — — — — Residential real estate Senior liens — — 2 167 — — — — Junior liens — — — — 1 8 — — Total residential real estate — — 2 167 1 8 — — Total 2 $ 272 5 $ 2,211 1 $ 8 2 $ 227 We did not restructure any loans by forgiving principal or accrued interest in the three month periods ended March 31, 2018 or 2017 . Based on our historical loss experience, losses associated with TDRs are not significantly different than other impaired loans within the same loan segment. As such, TDRs , including TDRs that have been modified in the past 12 months that subsequently defaulted, are analyzed in the same manner as other impaired loans within their respective loan segment. We had no loans that defaulted in the three month periods ended March 31, 2018 and March 31, 2017 which were modified within 12 months prior to the default date. The following is a summary of TDR loan balances as of: March 31, 2018 December 31, 2017 TDRs $ 27,540 $ 26,197 |
Equity Securities Without Readi
Equity Securities Without Readily Determinable Fair Values | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method And Other Investments [Abstract] | |
Equity Securities Without Readily Determinable Fair Values | Equity Securities Without Readily Determinable Fair Values Included in equity securities without readily determinable fair values are restricted securities, which are carried at cost, and investments in unconsolidated entities accounted for under the equity method of accounting. Equity securities without readily determinable fair values consist of the following as of: March 31 December 31 FHLB Stock $ 13,700 $ 13,700 Corporate Settlement Solutions, LLC 7,358 7,421 FRB Stock 1,999 1,999 Other 334 334 Total $ 23,391 $ 23,454 |
Borrowed Funds
Borrowed Funds | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds consist of the following obligations as of: March 31, 2018 December 31, 2017 Amount Rate Amount Rate FHLB advances $ 260,000 1.94 % $ 290,000 1.94 % Securities sold under agreements to repurchase without stated maturity dates 32,913 0.09 % 54,878 0.12 % Federal funds purchased 10,200 1.89 % — — % Total $ 303,113 1.74 % $ 344,878 1.65 % FHLB advances are collateralized by a blanket lien on all qualified 1-4 family residential real estate loans, specific AFS securities , and FHLB stock. The following table lists the maturities and weighted average interest rates of FHLB advances as of: March 31, 2018 December 31, 2017 Amount Rate Amount Rate Fixed rate due 2018 $ 30,000 1.57 % $ 70,000 1.96 % Fixed rate due 2019 85,000 1.87 % 85,000 1.87 % Fixed rate due 2020 35,000 1.80 % 35,000 1.80 % Fixed rate due 2021 50,000 1.91 % 50,000 1.91 % Variable rate due 2021 1 10,000 2.15 % 10,000 1.72 % Fixed rate due 2022 20,000 1.97 % 20,000 1.97 % Fixed rate due 2023 20,000 3.36 % 10,000 3.90 % Fixed rate due 2026 10,000 1.17 % 10,000 1.17 % Total $ 260,000 1.94 % $ 290,000 1.94 % (1) Hedged advance (see " Derivative Instruments " section below) Securities sold under agreements to repurchase are classified as secured borrowings and are reflected at the amount of cash received in connection with the transaction. The securities underlying the agreements have a carrying value and a fair value of $32,933 and $54,898 at March 31, 2018 and December 31, 2017 , respectively. Such securities remain under our control. We may be required to provide additional collateral based on the fair value of underlying securities. Securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount Window advances generally mature within one to four days from the transaction date. The following table provides a summary of securities sold under repurchase agreements without stated maturity dates and federal funds purchased. We had no FRB Discount Window advances during the three month periods ended March 31, 2018 or 2017 . Three Months Ended March 31 2018 2017 Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Securities sold under agreements to repurchase without stated maturity dates $ 38,967 $ 35,995 0.10 % $ 58,088 $ 57,505 0.13 % Federal funds purchased 10,200 4,460 1.66 % 5,200 863 0.96 % We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: March 31 December 31 Pledged to secure borrowed funds $ 402,702 $ 410,988 Pledged to secure repurchase agreements 32,933 54,898 Pledged for public deposits and for other purposes necessary or required by law 33,958 27,976 Total $ 469,593 $ 493,862 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: March 31 December 31 States and political subdivisions $ 2,413 $ 7,332 Mortgage-backed securities 9,192 13,199 Collateralized mortgage obligations 21,328 34,367 Total $ 32,933 $ 54,898 AFS securities pledged to repurchase agreements are monitored to ensure the appropriate level is collateralized. In the event of maturities, calls, significant principal repayments, or significant decline in market values, we have adequate levels of AFS securities to pledge to satisfy required collateral. As of March 31, 2018 , we had the ability to borrow up to an additional $153,347 , based on assets pledged as collateral. We had no investment securities that are restricted to be pledged for specific purposes. Derivative Instruments We enter into interest rate swaps to manage exposure to interest rate risk and variability in cash flows. The interest rate swaps, associated with our variable rate borrowings, are designated upon inception as cash flow hedges of forecasted interest payments. We enter into LIBOR-based interest rate swaps that involve the receipt of variable amounts in exchange for fixed rate payments, in effect converting variable rate debt to fixed rate debt. Cash flow hedges are assessed for effectiveness using regression analysis. The effective portion of changes in fair value are recorded in OCI and subsequently reclassified into interest expense in the same period in which the related interest on the variable rate borrowings affects earnings. In the event that a portion of the changes in fair value were determined to be ineffective, the ineffective amount would be recorded in earnings. The following tables provide information on derivatives related to variable rate borrowings as of: March 31, 2018 Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 3.1 $ 10,000 Other Assets $ 413 December 31, 2017 Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 3.3 $ 10,000 Other Assets $ 291 Derivatives contain an element of credit risk which arises from the possibility that we will incur a loss as a result of a counterparty failing to meet its contractual obligations. Credit risk is minimized through counterparty collateral, transaction limits and monitoring procedures. We also manage dealer credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, the use of ISDA master agreements and counterparty limits. We do not anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Our revenue is comprised primarily of interest income, service charges and fees, gains on the sale of loans and AFS securities , earnings on corporate owned life insurance policies, and other noninterest income. Other noninterest income is typically service and performance driven in nature and comprised primarily of trust and brokerage advisory fees. We recognize revenue in accordance with GAAP as outlined in ASC 606, Revenue From Contracts with Customers. Revenue is recognized when our performance obligation has been satisfied according to our contractual obligation. We record receivables when revenue is unpaid and collectability is reasonably assured. Accounts receivable balances primarily represent amounts due from customers for which revenue has been recognized. Accounts receivable balances are recorded in the consolidated balance sheets in accrued interest receivable and other assets. For the three month periods ended March 31, 2018 and 2017 , we satisfied our performance obligations pursuant to contracts with customers. As a result, we have not recorded contract assets or liabilities. We estimate no returns or allowances for the three month periods ended March 31, 2018 and 2017 . Our contracts with customers define our performance obligations with clearly established pricing which did not require us to allocate or disaggregate revenue by performance obligation. A summary of revenue recognized for each major category of contracts with customers, subject to ASC 606, is as follows for the: Three Months Ended 2018 2017 Debit card income $ 588 $ 530 Trust service fees 502 411 Brokerage advisory fees 156 160 Service charges and fees related to deposit accounts 85 85 Total $ 1,331 $ 1,186 A large portion of our revenue consists of interest income which is not subject to the requirements set forth in ASU 2014-09. This recently adopted guidance required us to review our other noninterest revenue sources within the scope of the guidance to ensure appropriate recognition of revenue from contracts with customers. This review process did not identify significant changes related to revenue recognition. As such, we did not record or disclose transactions related to the adoption of this guidance. |
Other Noninterest Expenses
Other Noninterest Expenses | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Noninterest Expenses | Other Noninterest Expenses A summary of expenses included in other noninterest expenses is as follows for the: Three Months Ended 2018 2017 Consulting fees $ 250 $ 205 ATM and debit card fees 232 216 Director fees 209 209 Audit and related fees 202 198 FDIC insurance premiums 164 153 Donations and community relations 151 130 Loan underwriting fees 149 117 Postage and freight 131 109 Education and travel 115 96 Marketing costs 110 89 All other 586 691 Total other $ 2,299 $ 2,213 |
Federal Income Taxes
Federal Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Federal Income Taxes The reconciliation of the provision for federal income taxes and the amount computed at the federal statutory tax rate of income before federal income tax expense, which has significantly changed as a result of 2017 Tax Act , is as follows for the: Three Months Ended 2018 2017 Income taxes at statutory rate (21% in 2018 and 34% in 2017) $ 783 $ 1,247 Effect of nontaxable income Interest income on tax exempt municipal securities (274 ) (455 ) Earnings on corporate owned life insurance policies (36 ) (61 ) Effect of tax credits (200 ) (189 ) Other (11 ) (18 ) Total effect of nontaxable income (521 ) (723 ) Effect of nondeductible expenses 3 8 Federal income tax expense $ 265 $ 532 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Under fair value measurement and disclosure authoritative guidance, we group assets and liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value, based on the prioritization of inputs in the valuation techniques. These levels are: Level 1: Valuation is based upon quoted prices for identical instruments traded in active 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 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. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. Transfers between measurement levels are recognized at the end of reporting periods. Fair value measurement requires the use of an exit price notion which may differ from entrance pricing. Generally we believe our assets and liabilities classified as Level 1 or Level 2 approximate an exit price notion. Following is a description of the valuation methodologies, key inputs, and an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. AFS securities : AFS securities are recorded at fair value on a recurring basis. Level 1 fair value measurement is based upon quoted prices for identical instruments. Level 2 fair value measurement is based upon quoted prices for similar instruments. If quoted prices are not available, fair values are measured using independent pricing models or other model based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss and liquidity assumptions. The values for Level 1 and Level 2 investment securities are generally obtained from an independent third party. On a quarterly basis, we compare the values provided to alternative pricing sources. Equity securities, at fair value : Equity securities are recorded at fair value on a recurring basis. Level 1 fair value measurement is based upon quoted prices for identical instruments. The values for Level 1 investment securities are generally obtained from an independent third party. On a quarterly basis, we compare the values provided to alternative pricing sources. Loans : We do not record loans at fair value on a recurring basis. However, from time-to-time , loans are classified as impaired and a specific allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will be significantly different than the contractual terms of the original loan agreement are considered impaired. Once a loan is identified as impaired, we measure the estimated impairment. The fair value of impaired loans is estimated using one of several methods, including the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. We review the net realizable values of the underlying collateral for collateral dependent impaired loans on at least a quarterly basis for all loan types. To determine the collateral value, we utilize independent appraisals, broker price opinions, or internal evaluations. We review these valuations to determine whether an additional discount should be applied given the age of market information that may have been considered as well as other factors such as costs to sell an asset if it is determined that the collateral will be liquidated in connection with the ultimate settlement of the loan. We use these valuations to determine if any specific reserves or charge-offs are necessary. We may obtain new valuations in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. The following tables list the quantitative fair value information about impaired loans as of: March 31, 2018 Valuation Technique Fair Value Unobservable Input Actual Range Discount applied to collateral: Real Estate 20% - 30% Equipment 25% - 35% Cash crop inventory 30% - 40% Discounted value $18,934 Livestock 30% Other inventory 50% - 75% Accounts receivable 25% - 50% Liquor license 75% Furniture, fixtures & equipment 35% - 45% December 31, 2017 Valuation Technique Fair Value Unobservable Input Actual Range Discount applied to collateral: Real Estate 20% - 30% Equipment 20% - 35% Cash crop inventory 30% - 40% Discounted value $15,956 Livestock 30% Other inventory 50% - 75% Accounts receivable 50% Liquor license 75% Furniture, fixtures & equipment 35% - 45% Collateral discount rates may have ranges to accommodate differences in the age of the independent appraisal, broker price opinion, or internal evaluation. Derivative instruments: Derivative instruments, consisting solely of interest rate swaps, are recorded at fair value on a recurring basis. Derivatives qualifying as cash flow hedges, when highly effective, are reported at fair value in other assets or other liabilities on our Consolidated Balance Sheets with changes in value recorded in OCI. Should the hedge no longer be considered effective, the ineffective portion of the change in fair value is recorded directly in earnings in the period in which the change occurs. The fair value of a derivative is determined by quoted market prices and model based valuation techniques. As such, we classify derivative instruments as Level 2. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. Estimated Fair Values of Financial Instruments Not Recorded at Fair Value in their Entirety on a Recurring Basis Disclosure of the estimated fair values of financial instruments, which differ from carrying values, often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of: March 31, 2018 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 16,712 $ 16,712 $ 16,712 $ — $ — Mortgage loans AFS 359 447 — 447 — Gross loans 1,093,002 1,075,018 — — 1,075,018 Less allowance for loan and lease losses 8,200 8,200 — — 8,200 Net loans 1,084,802 1,066,818 — — 1,066,818 Accrued interest receivable 7,134 7,134 7,134 — — Equity securities without readily determinable fair values (1) 23,391 N/A — — — OMSR 2,421 2,421 — 2,421 — LIABILITIES Deposits without stated maturities 825,808 825,808 825,808 — — Deposits with stated maturities 472,060 460,342 — 460,342 — Borrowed funds 303,113 298,139 — 298,139 — Accrued interest payable 676 676 676 — — December 31, 2017 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 30,848 $ 30,848 $ 30,848 $ — $ — Mortgage loans AFS 1,560 1,587 — 1,587 — Gross loans 1,091,519 1,056,906 — — 1,056,906 Less allowance for loan and lease losses 7,700 7,700 — — 7,700 Net loans 1,083,819 1,049,206 — — 1,049,206 Accrued interest receivable 7,063 7,063 7,063 — — Equity securities without readily determinable fair values (1) 23,454 N/A — — — OMSR 2,409 2,409 — 2,409 — LIABILITIES Deposits without stated maturities 811,992 811,992 811,992 — — Deposits with stated maturities 453,266 443,892 — 443,892 — Borrowed funds 344,878 342,089 — 342,089 — Accrued interest payable 680 680 680 — — (1) Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. If we were to record an impairment adjustment related to these securities, such amount would be classified as a nonrecurring Level 3 fair value adjustment. Financial Instruments Recorded at Fair Value The table below presents the recorded amount of assets and liabilities measured at fair value on: March 31, 2018 December 31, 2017 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Recurring items AFS securities Government-sponsored enterprises $ 202 $ — $ 202 $ — $ 216 $ — $ 216 $ — States and political subdivisions 211,633 — 211,633 — 208,474 — 208,474 — Auction rate money market preferred 3,012 — 3,012 — 3,049 — 3,049 — Mortgage-backed securities 206,861 — 206,861 — 208,797 — 208,797 — Collateralized mortgage obligations 126,054 — 126,054 — 128,194 — 128,194 — Total AFS securities 547,762 — 547,762 — 548,730 — 548,730 — Equity securities 3,575 3,575 — — 3,577 3,577 — — Derivative instruments 413 — 413 — 291 — 291 — Nonrecurring items Impaired loans (net of the ALLL) 18,934 — — 18,934 15,956 — — 15,956 Total $ 570,684 $ 3,575 $ 548,175 $ 18,934 $ 568,554 $ 3,577 $ 549,021 $ 15,956 Percent of assets and liabilities measured at fair value 0.63 % 96.06 % 3.31 % 0.63 % 96.56 % 2.81 % Equity securities are recorded at fair value with changes in fair value recognized through earnings on a recurring basis. For the three month period ended March 31, 2018 , we recorded a loss of $2 through earnings. We had no other assets or liabilities recorded at fair value with changes in fair value recognized through earnings, on a recurring basis, as of March 31, 2018 . We had no assets or liabilities recorded at fair value with changes in fair value recognized through earnings, on a nonrecurring basis, as of March 31, 2018 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income The following table summarizes the changes in AOCI by component for the: Three Months Ended March 31 2018 2017 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, January 1 $ 391 $ 230 $ (3,223 ) $ (2,602 ) $ 30 $ 164 $ (2,972 ) $ (2,778 ) OCI before reclassifications (8,057 ) 122 — (7,935 ) 1,677 17 — 1,694 Tax effect 1,684 (26 ) — 1,658 (450 ) (6 ) — (456 ) OCI, net of tax (6,373 ) 96 — (6,277 ) 1,227 11 — 1,238 Adoption of ASU 2016-01 223 — — 223 — — — — Balance, March 31 $ (5,759 ) $ 326 $ (3,223 ) $ (8,656 ) $ 1,257 $ 175 $ (2,972 ) $ (1,540 ) Included in OCI for the three month period ended March 31, 2018 are changes in unrealized holding gains and losses related to auction rate money market preferred stocks. For the three month period ended March 31, 2017 , OCI also includes changes in unrealized holding gains and losses related to preferred stocks. For federal income tax purposes, these securities are considered equity investments. As such, no deferred federal income taxes related to unrealized holding gains or losses are expected or recorded. A summary of the components of unrealized holding gains on AFS securities included in OCI follows for the: Three Months Ended March 31 2018 2017 Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Auction Rate Money Market Preferred and Preferred Stocks All Other AFS Securities Total Unrealized gains (losses) arising during the period $ (37 ) $ (8,020 ) $ (8,057 ) $ 355 $ 1,322 $ 1,677 Tax effect — 1,684 1,684 — (450 ) (450 ) Unrealized gains (losses), net of tax $ (37 ) $ (6,336 ) $ (6,373 ) $ 355 $ 872 $ 1,227 |
Parent Company Only Financial I
Parent Company Only Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Information | Parent Company Only Financial Information Interim Condensed Balance Sheets March 31 December 31 ASSETS Cash on deposit at the Bank $ 1,410 $ 185 Investments in subsidiaries 141,754 145,962 Premises and equipment 1,914 1,950 Other assets 51,360 52,253 TOTAL ASSETS $ 196,438 $ 200,350 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 5,348 $ 5,445 Shareholders' equity 191,090 194,905 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 196,438 $ 200,350 Interim Condensed Statements of Income Three Months Ended 2018 2017 Income Dividends from subsidiaries $ 2,100 $ 1,700 Interest income — 2 Management fee and other 675 1,550 Total income 2,775 3,252 Expenses Compensation and benefits 984 1,372 Occupancy and equipment 123 444 Audit and related fees 69 124 Other 394 541 Total expenses 1,570 2,481 Income before income tax benefit and equity in undistributed earnings of subsidiaries 1,205 771 Federal income tax benefit 188 316 Income before equity in undistributed earnings of subsidiaries 1,393 1,087 Undistributed earnings of subsidiaries 2,069 2,049 Net income $ 3,462 $ 3,136 Interim Condensed Statements of Cash Flows Three Months Ended 2018 2017 Operating activities Net income $ 3,462 $ 3,136 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (2,069 ) (2,049 ) Undistributed earnings of equity securities without readily determinable fair values 63 78 Share-based payment awards under equity compensation plan 146 178 Depreciation 30 39 Changes in operating assets and liabilities which provided (used) cash Other assets 830 74 Accrued interest and other liabilities (97 ) (1,073 ) Net cash provided by (used in) operating activities 2,365 383 Investing activities Maturities, calls, principal payments, and sales of AFS securities — 249 Sales (purchases) of premises and equipment 6 (3 ) Net cash provided by (used in) investing activities 6 246 Financing activities Cash dividends paid on common stock (2,041 ) (1,953 ) Proceeds from the issuance of common stock 1,616 1,770 Common stock repurchased (620 ) (1,169 ) Common stock purchased for deferred compensation obligations (101 ) (123 ) Net cash provided by (used in) financing activities (1,146 ) (1,475 ) Increase (decrease) in cash and cash equivalents 1,225 (846 ) Cash and cash equivalents at beginning of period 185 1,297 Cash and cash equivalents at end of period $ 1,410 $ 451 |
Operating Segments
Operating Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments Our reportable segments are based on legal entities that account for at least 10% of net operating results. The operations of the Bank as of March 31, 2018 and 2017 and each of the three month periods then ended, represent approximately 90% or more of our consolidated total assets and operating results. As such, no additional segment reporting is presented. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | As used in these notes, as well as in Management's Discussion and Analysis of Financial Condition and Results of Operations , references to “Isabella,” the “Corporation,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of Isabella Bank Corporation and its subsidiaries. Isabella Bank Corporation refers solely to the parent holding company, and Isabella Bank or the “Bank” refers to Isabella Bank Corporation ’s subsidiary, Isabella Bank . |
Basis of Accounting | The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2017 . |
Earnings Per Share | Basic earnings per common share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate solely to outstanding shares in the Directors Plan . |
Available-for-sale Securities | As of March 31, 2018 and December 31, 2017 , we conducted an analysis to determine whether any AFS securities currently in an unrealized loss position should be other-than-temporarily impaired. Such analyses considered, among other factors, the following criteria: • Has the value of the investment declined more than what is deemed to be reasonable based on a risk and maturity adjusted discount rate? • Is the investment credit rating below investment grade? • Is it probable the issuer will be unable to pay the amount when due? • Is it more likely than not that we will have to sell the security before recovery of its cost basis? • Has the duration of the investment been extended? |
Nonaccrual Loan Status | The accrual of interest on commercial, agricultural, and residential real estate loans is discontinued at the time the loan is 90 days or more past due unless the credit is well-secured and in the process of collection. Upon transferring the loans to nonaccrual status, we perform an evaluation to determine the net realizable value of the underlying collateral. This evaluation is used to help determine if any charge-offs are necessary. Consumer loans are typically charged-off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. For loans that are placed on nonaccrual status or charged-off , all interest accrued in the current calendar year, but not collected, is reversed against interest income while interest accrued in prior calendar years, but not collected, is charged against the ALLL . Loans may be returned to accrual status after six months of continuous performance and achievement of current payment status. |
Loans Receivable | Loans that we have the intent and ability to hold in our portfolio are reported at their outstanding principal balance adjusted for any charge-offs , the ALLL , and any deferred fees or costs. Interest income is accrued over the term of the loan based on the principal amount outstanding. Loan origination fees and certain direct loan origination costs are capitalized and recognized as a component of interest income over the term of the loan using the level yield method. Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, advances to mortgage brokers, farmland and agricultural production, and states and political subdivisions. Repayment of these loans is dependent upon the successful operation and management of a business. We minimize our risk by limiting the amount of direct credit exposure to any one borrower to $15,000 . Borrowers with direct credit needs of more than $15,000 are serviced through the use of loan participations with other commercial banks. Commercial and agricultural real estate loans commonly require loan-to-value limits of 80% or less. Depending upon the type of loan, past credit history, and current operating results, we may require the borrower to pledge accounts receivable, inventory, and property and equipment. Personal guarantees are generally required from the owners of closely held corporations, partnerships, and sole proprietorships. In addition, we require annual financial statements, prepare cash flow analyses, and review credit reports. We entered into a mortgage purchase program in 2016 with a financial institution where we participate in advances to mortgage brokers ("advances"). The mortgage brokers originate residential mortgage loans with the intent to sell them on the secondary market. We participate in the advance to the mortgage broker, which is secured by the underlying mortgage loan, until it is ultimately sold on the secondary market. As such, the average life of each participated advance is approximately 20 - 30 days. Funds from the sale of the loan are used to pay off our participation in the advance to the mortgage broker. We classify these advances as commercial loans and include the outstanding balance in commercial loans on our balance sheet. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $30,000 . The difference between our outstanding balances and the maximum outstanding aggregate amount is classified as “ Unfunded commitments under lines of credit ” in the “ Contractual Obligations and Loan Commitments ” section of the Management's Discussion and Analysis of Financial Condition and Results of Operations of this report. We offer adjustable rate mortgages, construction loans, and fixed rate residential real estate loans which have amortization periods up to a maximum of 30 years. We consider the anticipated direction of interest rates, balance sheet duration, the sensitivity of our balance sheet to changes in interest rates, and overall loan demand to determine whether or not to sell fixed rate loans to Freddie Mac . Our lending policies generally limit the maximum loan-to-value ratio on residential real estate loans to 100% of the lower of the appraised value of the property or the purchase price. Private mortgage insurance is typically required on loans with loan-to-value ratios in excess of 80% unless the loan qualifies for government guarantees. Underwriting criteria for originated residential real estate loans generally include: • Evaluation of the borrower’s ability to make monthly payments. • Evaluation of the value of the property securing the loan. • Ensuring the payment of principal, interest, taxes, and hazard insurance does not exceed 28% of a borrower’s gross income. • Ensuring all debt servicing does not exceed 40% of income. • Verification of acceptable credit reports. • Verification of employment, income, and financial information. Appraisals are performed by independent appraisers and reviewed for appropriateness. All mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market underwriting system; loans in excess of $500 require the approval of our Internal Loan Committee, the Executive Loan Committee, the Board of Directors’ Loan Committee, or the Board of Directors. Consumer loans include secured and unsecured personal loans. Loans are amortized for a period of up to 15 years based on the age and value of the underlying collateral. The underwriting emphasis is on a borrower’s perceived intent and ability to pay rather than collateral value. No consumer loans are sold to the secondary market. |
Allowance for Loan Losses | The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the ALLL when we believe the uncollectability of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL . The appropriateness of the ALLL is evaluated on a quarterly basis and is based upon a periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The primary factors behind the determination of the level of the ALLL are specific allocations for impaired loans, historical loss percentages, as well as unallocated components. Specific allocations for impaired loans are primarily determined based on the difference between the loan’s outstanding balance and the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell. Historical loss allocations are calculated at the loan class and segment levels based on a migration analysis of the loan portfolio, with the exception of advances to mortgage brokers, over the preceding five years. With no historical losses on advances to mortgage brokers, there is no allocation in the commercial segment displayed in the following tables based on historical loss factors. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. |
Internal Credit Risk Ratings | Internally assigned credit risk ratings are reviewed, at a minimum, when loans are renewed or when management has knowledge of improvements or deterioration of the credit quality of individual credits. Descriptions of the internally assigned credit risk ratings for commercial and agricultural loans are as follows: 1. EXCELLENT – Substantially Risk Free Credit has strong financial condition and solid earnings history, characterized by: • High liquidity, strong cash flow, low leverage. • Unquestioned ability to meet all obligations when due. • Experienced management, with management succession in place. • Secured by cash. 2. HIGH QUALITY – Limited Risk Credit with sound financial condition and a positive trend in earnings supplemented by: • Favorable liquidity and leverage ratios. • Ability to meet all obligations when due. • Management with successful track record. • Steady and satisfactory earnings history. • If loan is secured, collateral is of high quality and readily marketable. • Access to alternative financing. • Well defined primary and secondary source of repayment. • If supported by guaranty, the financial strength and liquidity of the guarantor(s) are clearly evident. 3. HIGH SATISFACTORY – Reasonable Risk Credit with satisfactory financial condition and further characterized by: • Working capital adequate to support operations. • Cash flow sufficient to pay debts as scheduled. • Management experience and depth appear favorable. • Loan performing according to terms. • If loan is secured, collateral is acceptable and loan is fully protected. 4. LOW SATISFACTORY – Acceptable Risk Credit with bankable risks, although some signs of weaknesses are shown: • Would include most start-up businesses. • Occasional instances of trade slowness or repayment delinquency – may have been 10 - 30 days slow within the past year. • Management’s abilities are apparent, yet unproven. • Weakness in primary source of repayment with adequate secondary source of repayment. • Loan structure generally in accordance with policy. • If secured, loan collateral coverage is marginal. • Adequate cash flow to service debt, but coverage is low. To be classified as less than satisfactory, only one of the following criteria must be met. 5. SPECIAL MENTION – Criticized Credit constitutes an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances surrounding a specific loan: • Downward trend in sales, profit levels, and margins. • Impaired working capital position. • Cash flow is strained in order to meet debt repayment. • Loan delinquency ( 30 - 60 days) and overdrafts may occur. • Shrinking equity cushion. • Diminishing primary source of repayment and questionable secondary source. • Management abilities are questionable. • Weak industry conditions. • Litigation pending against the borrower. • Collateral or guaranty offers limited protection. • Negative debt service coverage, however the credit is well collateralized and payments are current. 6. SUBSTANDARD – Classified Credit where the borrower’s current net worth, paying capacity, and value of the collateral pledged is inadequate. There is a distinct possibility that we will implement collection procedures if the loan deficiencies are not corrected. In addition, the following characteristics may apply: • Sustained losses have severely eroded the equity and cash flow. • Deteriorating liquidity. • Serious management problems or internal fraud. • Original repayment terms liberalized. • Likelihood of bankruptcy. • Inability to access other funding sources. • Reliance on secondary source of repayment. • Litigation filed against borrower. • Collateral provides little or no value. • Requires excessive attention of the loan officer. • Borrower is uncooperative with loan officer. 7. VULNERABLE – Classified Credit is considered “Substandard” and warrants placing on nonaccrual status. Risk of loss is being evaluated and exit strategy options are under review. Other characteristics that may apply: • Insufficient cash flow to service debt. • Minimal or no payments being received. • Limited options available to avoid the collection process. • Transition status, expect action will take place to collect loan without immediate progress being made. 8. DOUBTFUL – Workout Credit has all the weaknesses inherent in a “Substandard” loan with the added characteristic that collection and/or liquidation is pending. The possibility of a loss is extremely high, but its classification as a loss is deferred until liquidation procedures are completed, or reasonably estimable. Other characteristics that may apply: • Normal operations are severely diminished or have ceased. • Seriously impaired cash flow. • Original repayment terms materially altered. • Secondary source of repayment is inadequate. • Survivability as a “going concern” is impossible. • Collection process has begun. • Bankruptcy petition has been filed. • Judgments have been filed. • Portion of the loan balance has been charged-off . |
Impaired Loans | Loans may be classified as impaired if they meet one or more of the following criteria: 1. There has been a charge-off of its principal balance (in whole or in part); 2. The loan has been classified as a TDR ; or 3. The loan is in nonaccrual status. Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by comparing the loan’s outstanding balance to the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell, if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Impairment is measured on a loan-by-loan basis for residential real estate and consumer loans by comparing the loan’s unpaid principal balance to the present value of expected future cash flows discounted at the loan’s effective interest rate. We do not recognize interest income on impaired loans in nonaccrual status. For impaired loans not classified as nonaccrual , interest income is recognized daily, as earned, according to the terms of the loan agreement and the principal amount outstanding. |
Troubled Debt Restructurings | Loan modifications are considered to be TDRs when the modification includes terms outside of normal lending practices to a borrower who is experiencing financial difficulties. Typical concessions granted include, but are not limited to: • Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. • Extending the amortization period beyond typical lending guidelines for loans with similar risk characteristics. • Agreeing to an interest only payment structure and delaying principal payments. • Forgiving principal. • Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: • The borrower is currently in default on any of their debt. • The borrower would likely default on any of their debt if the concession was not granted. • The borrower’s cash flow was insufficient to service all of their debt if the concession was not granted. • The borrower has declared, or is in the process of declaring, bankruptcy. • The borrower is unlikely to continue as a going concern (if the entity is a business). |
Derivative Instruments | The interest rate swaps, associated with our variable rate borrowings, are designated upon inception as cash flow hedges of forecasted interest payments. We enter into LIBOR-based interest rate swaps that involve the receipt of variable amounts in exchange for fixed rate payments, in effect converting variable rate debt to fixed rate debt. Cash flow hedges are assessed for effectiveness using regression analysis. The effective portion of changes in fair value are recorded in OCI and subsequently reclassified into interest expense in the same period in which the related interest on the variable rate borrowings affects earnings. In the event that a portion of the changes in fair value were determined to be ineffective, the ineffective amount would be recorded in earnings. |
Fair Value Measurement, Policy [Policy Text Block] | Under fair value measurement and disclosure authoritative guidance, we group assets and liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value, based on the prioritization of inputs in the valuation techniques. These levels are: Level 1: Valuation is based upon quoted prices for identical instruments traded in active 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 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. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. Transfers between measurement levels are recognized at the end of reporting periods. Fair value measurement requires the use of an exit price notion which may differ from entrance pricing. Generally we believe our assets and liabilities classified as Level 1 or Level 2 approximate an exit price notion. |
Computation of Earnings Per C24
Computation of Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of earnings per common share | Three Months Ended 2018 2017 Average number of common shares outstanding for basic calculation 7,873,948 7,827,143 Average potential effect of common shares in the Directors Plan (1) 199,270 191,533 Average number of common shares outstanding used to calculate diluted earnings per common share 8,073,218 8,018,676 Net income $ 3,462 $ 3,136 Earnings per common share Basic $ 0.44 $ 0.40 Diluted $ 0.43 $ 0.39 (1) Exclusive of shares held in the Rabbi Trust |
AFS Securities (Tables)
AFS Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and fair value of available-for-sale securities | The amortized cost and fair value of AFS securities , with gross unrealized gains and losses, are as follows at: March 31, 2018 Amortized Gross Gross Fair Government sponsored enterprises $ 205 $ — $ 3 $ 202 States and political subdivisions 209,788 2,240 395 211,633 Auction rate money market preferred 3,200 — 188 3,012 Mortgage-backed securities 212,713 103 5,955 206,861 Collateralized mortgage obligations 129,095 73 3,114 126,054 Total $ 555,001 $ 2,416 $ 9,655 $ 547,762 December 31, 2017 Amortized Gross Gross Fair Government sponsored enterprises $ 217 $ — $ 1 $ 216 States and political subdivisions 204,131 4,486 143 208,474 Auction rate money market preferred 3,200 — 151 3,049 Mortgage-backed securities 210,757 390 2,350 208,797 Collateralized mortgage obligations 129,607 160 1,573 128,194 Total $ 547,912 $ 5,036 $ 4,218 $ 548,730 |
Amortized cost and fair value of available-for-sale securities by contractual maturity | The amortized cost and fair value of AFS securities by contractual maturity at March 31, 2018 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total Government sponsored enterprises $ — $ 205 $ — $ — $ — $ 205 States and political subdivisions 24,933 79,352 71,772 33,731 — 209,788 Auction rate money market preferred — — — — 3,200 3,200 Mortgage-backed securities — — — — 212,713 212,713 Collateralized mortgage obligations — — — — 129,095 129,095 Total amortized cost $ 24,933 $ 79,557 $ 71,772 $ 33,731 $ 345,008 $ 555,001 Fair value $ 24,968 $ 80,351 $ 72,692 $ 33,824 $ 335,927 $ 547,762 |
Available-for-sale securities with gross unrealized losses | The following information pertains to AFS securities with gross unrealized losses at March 31, 2018 and December 31, 2017 , aggregated by investment category and length of time that individual securities have been in a continuous loss position. March 31, 2018 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ 3 $ 202 $ — $ — $ 3 States and political subdivisions 395 32,838 — 150 395 Auction rate money market preferred — — 188 3,012 188 Mortgage-backed securities 2,756 121,210 3,199 71,928 5,955 Collateralized mortgage obligations 1,998 96,415 1,116 23,922 3,114 Total $ 5,152 $ 250,665 $ 4,503 $ 99,012 $ 9,655 Number of securities in an unrealized loss position: 151 24 175 December 31, 2017 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ 1 $ 216 $ — $ — $ 1 States and political subdivisions 142 16,139 1 188 143 Auction rate money market preferred — — 151 3,049 151 Mortgage-backed securities 454 72,007 1,896 76,065 2,350 Collateralized mortgage obligations 701 76,435 872 25,308 1,573 Total $ 1,298 $ 164,797 $ 2,920 $ 104,610 $ 4,218 Number of securities in an unrealized loss position: 81 24 105 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | The following table provides a roll-forward of credit related impairment recorded in earnings for the: Three Months Ended 2018 2017 Balance at beginning of the period $ 770 $ 770 Additions to credit losses for which no previous OTTI was recognized — — Reductions for credit losses realized on securities sold during the period — — Balance at end of the period $ 770 $ 770 |
Loans and ALLL (Tables)
Loans and ALLL (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Summary of changes in the ALLL and the recorded investment in loans by segments | Allowance for Loan Losses Three Months Ended March 31, 2017 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2017 $ 1,814 $ 884 $ 2,664 $ 624 $ 1,414 $ 7,400 Charge-offs (27 ) — (43 ) (74 ) — (144 ) Recoveries 133 — 36 48 — 217 Provision for loan losses (149 ) (357 ) 441 73 19 27 March 31, 2017 $ 1,771 $ 527 $ 3,098 $ 671 $ 1,433 $ 7,500 Allowance for Loan Losses Three Months Ended March 31, 2018 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2018 $ 1,706 $ 611 $ 2,563 $ 900 $ 1,920 $ 7,700 Charge-offs (5 ) — (10 ) (88 ) — (103 ) Recoveries 103 — 56 60 — 219 Provision for loan losses 36 613 (127 ) (77 ) (61 ) 384 March 31, 2018 $ 1,840 $ 1,224 $ 2,482 $ 795 $ 1,859 $ 8,200 |
Allowance for Loan Losses and Recorded Investment in Loans | Allowance for Loan Losses and Recorded Investment in Loans March 31, 2018 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 842 $ 141 $ 1,520 $ — $ — $ 2,503 Collectively evaluated for impairment 998 1,083 962 795 1,859 5,697 Total $ 1,840 $ 1,224 $ 2,482 $ 795 $ 1,859 $ 8,200 Loans Individually evaluated for impairment $ 11,675 $ 11,468 $ 7,940 $ 12 $ 31,095 Collectively evaluated for impairment 631,961 110,862 262,210 56,874 1,061,907 Total $ 643,636 $ 122,330 $ 270,150 $ 56,886 $ 1,093,002 Allowance for Loan Losses and Recorded Investment in Loans December 31, 2017 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 650 $ — $ 1,480 $ — $ — $ 2,130 Collectively evaluated for impairment 1,056 611 1,083 900 1,920 5,570 Total $ 1,706 $ 611 $ 2,563 $ 900 $ 1,920 $ 7,700 Loans Individually evaluated for impairment $ 8,099 $ 10,598 $ 7,939 $ 17 $ 26,653 Collectively evaluated for impairment 626,660 117,671 264,429 56,106 1,064,866 Total $ 634,759 $ 128,269 $ 272,368 $ 56,123 $ 1,091,519 |
Credit quality indicators for commercial and agricultural credit exposures | The following table displays the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit risk ratings as of: March 31, 2018 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ 23 $ — $ — $ 23 $ — $ 34 $ 34 $ 57 2 - High quality 5,417 14,939 — 20,356 2,783 814 3,597 23,953 3 - High satisfactory 117,378 44,538 17,974 179,890 20,474 6,094 26,568 206,458 4 - Low satisfactory 337,859 84,149 — 422,008 46,040 18,066 64,106 486,114 5 - Special mention 8,615 1,562 — 10,177 9,618 5,192 14,810 24,987 6 - Substandard 5,424 2,191 — 7,615 6,435 4,887 11,322 18,937 7 - Vulnerable 2,364 1,203 — 3,567 1,529 364 1,893 5,460 8 - Doubtful — — — — — — — — Total $ 477,080 $ 148,582 $ 17,974 $ 643,636 $ 86,879 $ 35,451 $ 122,330 $ 765,966 December 31, 2017 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ 24 $ 316 $ — $ 340 $ — $ 34 $ 34 $ 374 2 - High quality 8,402 12,262 — 20,664 2,909 1,024 3,933 24,597 3 - High satisfactory 131,826 46,668 12,081 190,575 21,072 8,867 29,939 220,514 4 - Low satisfactory 326,166 75,591 — 401,757 47,835 18,467 66,302 468,059 5 - Special mention 8,986 3,889 — 12,875 10,493 8,546 19,039 31,914 6 - Substandard 5,521 2,298 — 7,819 4,325 2,747 7,072 14,891 7 - Vulnerable 729 — — 729 1,531 419 1,950 2,679 8 - Doubtful — — — — — — — — Total $ 481,654 $ 141,024 $ 12,081 $ 634,759 $ 88,165 $ 40,104 $ 128,269 $ 763,028 |
Summary of past due and current loans | The following tables summarize the past due and current loans as of: March 31, 2018 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 95 $ 30 $ 51 $ 2,364 $ 2,540 $ 474,540 $ 477,080 Commercial other 1,331 49 — 1,203 2,583 145,999 148,582 Advances to mortgage brokers — — — — — 17,974 17,974 Total commercial 1,426 79 51 3,567 5,123 638,513 643,636 Agricultural Agricultural real estate 805 804 463 1,529 3,601 83,278 86,879 Agricultural other 250 42 18 364 674 34,777 35,451 Total agricultural 1,055 846 481 1,893 4,275 118,055 122,330 Residential real estate Senior liens 3,020 300 22 754 4,096 225,033 229,129 Junior liens 23 — 10 23 56 6,422 6,478 Home equity lines of credit 189 173 100 — 462 34,081 34,543 Total residential real estate 3,232 473 132 777 4,614 265,536 270,150 Consumer Secured 103 — — — 103 52,958 53,061 Unsecured 12 — — — 12 3,813 3,825 Total consumer 115 — — — 115 56,771 56,886 Total $ 5,828 $ 1,398 $ 664 $ 6,237 $ 14,127 $ 1,078,875 $ 1,093,002 December 31, 2017 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 295 $ 325 $ 54 $ 729 $ 1,403 $ 480,251 $ 481,654 Commercial other 1,069 28 18 — 1,115 139,909 141,024 Advances to mortgage brokers — — — — — 12,081 12,081 Total commercial 1,364 353 72 729 2,518 632,241 634,759 Agricultural Agricultural real estate 84 190 — 1,531 1,805 86,360 88,165 Agricultural other 39 — 104 419 562 39,542 40,104 Total agricultural 123 190 104 1,950 2,367 125,902 128,269 Residential real estate Senior liens 3,718 234 132 325 4,409 225,007 229,416 Junior liens 69 10 — 23 102 6,812 6,914 Home equity lines of credit 293 — 77 — 370 35,668 36,038 Total residential real estate 4,080 244 209 348 4,881 267,487 272,368 Consumer Secured 37 10 10 — 57 52,005 52,062 Unsecured 13 — — — 13 4,048 4,061 Total consumer 50 10 10 — 70 56,053 56,123 Total $ 5,617 $ 797 $ 395 $ 3,027 $ 9,836 $ 1,081,683 $ 1,091,519 |
Information pertaining to impaired loans | The following is a summary of information pertaining to impaired loans as of: March 31, 2018 December 31, 2017 Recorded Balance Unpaid Principal Balance Valuation Allowance Recorded Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 5,946 $ 6,234 $ 639 $ 4,089 $ 4,378 $ 626 Commercial other 2,099 2,099 203 995 995 24 Agricultural real estate 881 881 141 — — — Agricultural other — — — — — — Residential real estate senior liens 7,831 8,459 1,514 7,816 8,459 1,473 Residential real estate junior liens 36 36 6 44 44 7 Total impaired loans with a valuation allowance 16,793 17,709 2,503 12,944 13,876 2,130 Impaired loans without a valuation allowance Commercial real estate 2,466 2,540 1,791 1,865 Commercial other 1,164 1,164 1,224 1,224 Agricultural real estate 8,082 8,082 7,913 7,913 Agricultural other 2,505 2,505 2,685 2,685 Home equity lines of credit 73 373 79 379 Consumer secured 12 12 17 17 Total impaired loans without a valuation allowance 14,302 14,676 13,709 14,083 Impaired loans Commercial 11,675 12,037 842 8,099 8,462 650 Agricultural 11,468 11,468 141 10,598 10,598 — Residential real estate 7,940 8,868 1,520 7,939 8,882 1,480 Consumer 12 12 — 17 17 — Total impaired loans $ 31,095 $ 32,385 $ 2,503 $ 26,653 $ 27,959 $ 2,130 The following is a summary of information pertaining to impaired loans for the: Three Months Ended March 31 2018 2017 Average Recorded Balance Interest Income Recognized Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 5,018 $ 91 $ 5,015 $ 73 Commercial other 1,547 24 1,275 24 Agricultural real estate 441 4 — — Agricultural other — — 67 — Residential real estate senior liens 7,824 74 8,420 83 Residential real estate junior liens 40 — 75 — Total impaired loans with a valuation allowance 14,870 193 14,852 180 Impaired loans without a valuation allowance Commercial real estate 2,129 35 1,326 33 Commercial other 1,194 17 114 2 Agricultural real estate 7,998 40 4,042 62 Agricultural other 2,595 36 1,438 13 Home equity lines of credit 76 5 133 5 Consumer secured 15 — 25 — Total impaired loans without a valuation allowance 14,007 133 7,078 115 Impaired loans Commercial 9,888 167 7,730 132 Agricultural 11,034 80 5,547 75 Residential real estate 7,940 79 8,628 88 Consumer 15 — 25 — Total impaired loans $ 28,877 $ 326 $ 21,930 $ 295 |
Information pertaining to TDR's | The following is a summary of information pertaining to TDRs granted for the: Three Months Ended March 31 2018 2017 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Commercial other 3 $ 1,255 $ 1,255 2 $ 227 $ 227 Agricultural other 2 1,061 1,061 — — — Residential real estate Senior liens 2 167 167 — — — Junior liens — — — 1 8 8 Total residential real estate 2 167 167 1 8 8 Total 7 $ 2,483 $ 2,483 3 $ 235 $ 235 The following table summarizes concessions we granted to borrowers in financial difficulty for the: Three Months Ended March 31 2018 2017 Below Market Interest Rate Below Market Interest Rate and Extension of Amortization Period Below Market Interest Rate Below Market Interest Rate and Extension of Amortization Period Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Commercial other 1 $ 174 2 $ 1,081 — $ — 2 $ 227 Agricultural other 1 98 1 963 — — — — Residential real estate Senior liens — — 2 167 — — — — Junior liens — — — — 1 8 — — Total residential real estate — — 2 167 1 8 — — Total 2 $ 272 5 $ 2,211 1 $ 8 2 $ 227 The following is a summary of TDR loan balances as of: March 31, 2018 December 31, 2017 TDRs $ 27,540 $ 26,197 |
Equity Securities Without Rea27
Equity Securities Without Readily Determinable Fair Values (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method And Other Investments [Abstract] | |
Schedule of equity method and other investments | Equity securities without readily determinable fair values consist of the following as of: March 31 December 31 FHLB Stock $ 13,700 $ 13,700 Corporate Settlement Solutions, LLC 7,358 7,421 FRB Stock 1,999 1,999 Other 334 334 Total $ 23,391 $ 23,454 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of borrowed funds | Borrowed funds consist of the following obligations as of: March 31, 2018 December 31, 2017 Amount Rate Amount Rate FHLB advances $ 260,000 1.94 % $ 290,000 1.94 % Securities sold under agreements to repurchase without stated maturity dates 32,913 0.09 % 54,878 0.12 % Federal funds purchased 10,200 1.89 % — — % Total $ 303,113 1.74 % $ 344,878 1.65 % |
Federal Home Loan Bank, Advances | The following table lists the maturities and weighted average interest rates of FHLB advances as of: March 31, 2018 December 31, 2017 Amount Rate Amount Rate Fixed rate due 2018 $ 30,000 1.57 % $ 70,000 1.96 % Fixed rate due 2019 85,000 1.87 % 85,000 1.87 % Fixed rate due 2020 35,000 1.80 % 35,000 1.80 % Fixed rate due 2021 50,000 1.91 % 50,000 1.91 % Variable rate due 2021 1 10,000 2.15 % 10,000 1.72 % Fixed rate due 2022 20,000 1.97 % 20,000 1.97 % Fixed rate due 2023 20,000 3.36 % 10,000 3.90 % Fixed rate due 2026 10,000 1.17 % 10,000 1.17 % Total $ 260,000 1.94 % $ 290,000 1.94 % (1) Hedged advance (see " Derivative Instruments " section below) |
Summary of short term borrowings | The following table provides a summary of securities sold under repurchase agreements without stated maturity dates and federal funds purchased. We had no FRB Discount Window advances during the three month periods ended March 31, 2018 or 2017 . Three Months Ended March 31 2018 2017 Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Securities sold under agreements to repurchase without stated maturity dates $ 38,967 $ 35,995 0.10 % $ 58,088 $ 57,505 0.13 % Federal funds purchased 10,200 4,460 1.66 % 5,200 863 0.96 % |
Summary of pledged financial instruments | We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: March 31 December 31 Pledged to secure borrowed funds $ 402,702 $ 410,988 Pledged to secure repurchase agreements 32,933 54,898 Pledged for public deposits and for other purposes necessary or required by law 33,958 27,976 Total $ 469,593 $ 493,862 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: March 31 December 31 States and political subdivisions $ 2,413 $ 7,332 Mortgage-backed securities 9,192 13,199 Collateralized mortgage obligations 21,328 34,367 Total $ 32,933 $ 54,898 |
Schedule of derivative instruments | The following tables provide information on derivatives related to variable rate borrowings as of: March 31, 2018 Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 3.1 $ 10,000 Other Assets $ 413 December 31, 2017 Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 3.3 $ 10,000 Other Assets $ 291 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Recognized for Each Major Category | A summary of revenue recognized for each major category of contracts with customers, subject to ASC 606, is as follows for the: Three Months Ended 2018 2017 Debit card income $ 588 $ 530 Trust service fees 502 411 Brokerage advisory fees 156 160 Service charges and fees related to deposit accounts 85 85 Total $ 1,331 $ 1,186 |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Summary of expenses included in other noninterest expenses | A summary of expenses included in other noninterest expenses is as follows for the: Three Months Ended 2018 2017 Consulting fees $ 250 $ 205 ATM and debit card fees 232 216 Director fees 209 209 Audit and related fees 202 198 FDIC insurance premiums 164 153 Donations and community relations 151 130 Loan underwriting fees 149 117 Postage and freight 131 109 Education and travel 115 96 Marketing costs 110 89 All other 586 691 Total other $ 2,299 $ 2,213 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of federal income tax expense | The reconciliation of the provision for federal income taxes and the amount computed at the federal statutory tax rate of income before federal income tax expense, which has significantly changed as a result of 2017 Tax Act , is as follows for the: Three Months Ended 2018 2017 Income taxes at statutory rate (21% in 2018 and 34% in 2017) $ 783 $ 1,247 Effect of nontaxable income Interest income on tax exempt municipal securities (274 ) (455 ) Earnings on corporate owned life insurance policies (36 ) (61 ) Effect of tax credits (200 ) (189 ) Other (11 ) (18 ) Total effect of nontaxable income (521 ) (723 ) Effect of nondeductible expenses 3 8 Federal income tax expense $ 265 $ 532 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Quantitative information about assets measured utilizing Level 3 fair value measurement | The following tables list the quantitative fair value information about impaired loans as of: March 31, 2018 Valuation Technique Fair Value Unobservable Input Actual Range Discount applied to collateral: Real Estate 20% - 30% Equipment 25% - 35% Cash crop inventory 30% - 40% Discounted value $18,934 Livestock 30% Other inventory 50% - 75% Accounts receivable 25% - 50% Liquor license 75% Furniture, fixtures & equipment 35% - 45% December 31, 2017 Valuation Technique Fair Value Unobservable Input Actual Range Discount applied to collateral: Real Estate 20% - 30% Equipment 20% - 35% Cash crop inventory 30% - 40% Discounted value $15,956 Livestock 30% Other inventory 50% - 75% Accounts receivable 50% Liquor license 75% Furniture, fixtures & equipment 35% - 45% |
Carrying amount and estimated fair value of financial instruments not recorded at fair value | The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of: March 31, 2018 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 16,712 $ 16,712 $ 16,712 $ — $ — Mortgage loans AFS 359 447 — 447 — Gross loans 1,093,002 1,075,018 — — 1,075,018 Less allowance for loan and lease losses 8,200 8,200 — — 8,200 Net loans 1,084,802 1,066,818 — — 1,066,818 Accrued interest receivable 7,134 7,134 7,134 — — Equity securities without readily determinable fair values (1) 23,391 N/A — — — OMSR 2,421 2,421 — 2,421 — LIABILITIES Deposits without stated maturities 825,808 825,808 825,808 — — Deposits with stated maturities 472,060 460,342 — 460,342 — Borrowed funds 303,113 298,139 — 298,139 — Accrued interest payable 676 676 676 — — December 31, 2017 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 30,848 $ 30,848 $ 30,848 $ — $ — Mortgage loans AFS 1,560 1,587 — 1,587 — Gross loans 1,091,519 1,056,906 — — 1,056,906 Less allowance for loan and lease losses 7,700 7,700 — — 7,700 Net loans 1,083,819 1,049,206 — — 1,049,206 Accrued interest receivable 7,063 7,063 7,063 — — Equity securities without readily determinable fair values (1) 23,454 N/A — — — OMSR 2,409 2,409 — 2,409 — LIABILITIES Deposits without stated maturities 811,992 811,992 811,992 — — Deposits with stated maturities 453,266 443,892 — 443,892 — Borrowed funds 344,878 342,089 — 342,089 — Accrued interest payable 680 680 680 — — (1) Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. If we were to record an impairment adjustment related to these securities, such amount would be classified as a nonrecurring Level 3 fair value adjustment. |
Assets and liabilities measured at fair value | The table below presents the recorded amount of assets and liabilities measured at fair value on: March 31, 2018 December 31, 2017 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Recurring items AFS securities Government-sponsored enterprises $ 202 $ — $ 202 $ — $ 216 $ — $ 216 $ — States and political subdivisions 211,633 — 211,633 — 208,474 — 208,474 — Auction rate money market preferred 3,012 — 3,012 — 3,049 — 3,049 — Mortgage-backed securities 206,861 — 206,861 — 208,797 — 208,797 — Collateralized mortgage obligations 126,054 — 126,054 — 128,194 — 128,194 — Total AFS securities 547,762 — 547,762 — 548,730 — 548,730 — Equity securities 3,575 3,575 — — 3,577 3,577 — — Derivative instruments 413 — 413 — 291 — 291 — Nonrecurring items Impaired loans (net of the ALLL) 18,934 — — 18,934 15,956 — — 15,956 Total $ 570,684 $ 3,575 $ 548,175 $ 18,934 $ 568,554 $ 3,577 $ 549,021 $ 15,956 Percent of assets and liabilities measured at fair value 0.63 % 96.06 % 3.31 % 0.63 % 96.56 % 2.81 % |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of the components of accumulated other comprehensive income | A summary of the components of unrealized holding gains on AFS securities included in OCI follows for the: Three Months Ended March 31 2018 2017 Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Auction Rate Money Market Preferred and Preferred Stocks All Other AFS Securities Total Unrealized gains (losses) arising during the period $ (37 ) $ (8,020 ) $ (8,057 ) $ 355 $ 1,322 $ 1,677 Tax effect — 1,684 1,684 — (450 ) (450 ) Unrealized gains (losses), net of tax $ (37 ) $ (6,336 ) $ (6,373 ) $ 355 $ 872 $ 1,227 The following table summarizes the changes in AOCI by component for the: Three Months Ended March 31 2018 2017 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, January 1 $ 391 $ 230 $ (3,223 ) $ (2,602 ) $ 30 $ 164 $ (2,972 ) $ (2,778 ) OCI before reclassifications (8,057 ) 122 — (7,935 ) 1,677 17 — 1,694 Tax effect 1,684 (26 ) — 1,658 (450 ) (6 ) — (456 ) OCI, net of tax (6,373 ) 96 — (6,277 ) 1,227 11 — 1,238 Adoption of ASU 2016-01 223 — — 223 — — — — Balance, March 31 $ (5,759 ) $ 326 $ (3,223 ) $ (8,656 ) $ 1,257 $ 175 $ (2,972 ) $ (1,540 ) |
Parent Company Only Financial34
Parent Company Only Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Interim Condensed Balance Sheets | Interim Condensed Balance Sheets March 31 December 31 ASSETS Cash on deposit at the Bank $ 1,410 $ 185 Investments in subsidiaries 141,754 145,962 Premises and equipment 1,914 1,950 Other assets 51,360 52,253 TOTAL ASSETS $ 196,438 $ 200,350 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 5,348 $ 5,445 Shareholders' equity 191,090 194,905 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 196,438 $ 200,350 |
Interim Condensed Statements of Income | Interim Condensed Statements of Income Three Months Ended 2018 2017 Income Dividends from subsidiaries $ 2,100 $ 1,700 Interest income — 2 Management fee and other 675 1,550 Total income 2,775 3,252 Expenses Compensation and benefits 984 1,372 Occupancy and equipment 123 444 Audit and related fees 69 124 Other 394 541 Total expenses 1,570 2,481 Income before income tax benefit and equity in undistributed earnings of subsidiaries 1,205 771 Federal income tax benefit 188 316 Income before equity in undistributed earnings of subsidiaries 1,393 1,087 Undistributed earnings of subsidiaries 2,069 2,049 Net income $ 3,462 $ 3,136 |
Interim Condensed Statements of Cash Flows | Interim Condensed Statements of Cash Flows Three Months Ended 2018 2017 Operating activities Net income $ 3,462 $ 3,136 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (2,069 ) (2,049 ) Undistributed earnings of equity securities without readily determinable fair values 63 78 Share-based payment awards under equity compensation plan 146 178 Depreciation 30 39 Changes in operating assets and liabilities which provided (used) cash Other assets 830 74 Accrued interest and other liabilities (97 ) (1,073 ) Net cash provided by (used in) operating activities 2,365 383 Investing activities Maturities, calls, principal payments, and sales of AFS securities — 249 Sales (purchases) of premises and equipment 6 (3 ) Net cash provided by (used in) investing activities 6 246 Financing activities Cash dividends paid on common stock (2,041 ) (1,953 ) Proceeds from the issuance of common stock 1,616 1,770 Common stock repurchased (620 ) (1,169 ) Common stock purchased for deferred compensation obligations (101 ) (123 ) Net cash provided by (used in) financing activities (1,146 ) (1,475 ) Increase (decrease) in cash and cash equivalents 1,225 (846 ) Cash and cash equivalents at beginning of period 185 1,297 Cash and cash equivalents at end of period $ 1,410 $ 451 |
Computation of Earnings Per C35
Computation of Earnings Per Common Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Earnings Per Share [Abstract] | |||
Average number of common shares outstanding for basic calculation | 7,873,948 | 7,827,143 | |
Average potential effect of common shares in the Directors Plan | [1] | 199,270 | 191,533 |
Average number of common shares outstanding used to calculate diluted earnings per common share | 8,073,218 | 8,018,676 | |
Net income | $ 3,462 | $ 3,136 | |
Basic (in dollars per share) | $ 0.44 | $ 0.40 | |
Diluted (in dollars per share) | $ 0.43 | $ 0.39 | |
[1] | Exclusive of shares held in the Rabbi Trust |
AFS Securities (Amortized cost
AFS Securities (Amortized cost and fair value of AFS securities, with gross unrealized gains and losses) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 555,001 | $ 547,912 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 2,416 | 5,036 |
Gross Unrealized Gains | 9,655 | 4,218 |
AFS securities | 547,762 | 548,730 |
Government sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 205 | 217 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Gross Unrealized Gains | 3 | 1 |
AFS securities | 202 | 216 |
States and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 209,788 | 204,131 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 2,240 | 4,486 |
Gross Unrealized Gains | 395 | 143 |
AFS securities | 211,633 | 208,474 |
Auction rate money market preferred [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,200 | 3,200 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Gross Unrealized Gains | 188 | 151 |
AFS securities | 3,012 | 3,049 |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 212,713 | 210,757 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 103 | 390 |
Gross Unrealized Gains | 5,955 | 2,350 |
AFS securities | 206,861 | 208,797 |
Collateralized mortgage obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 129,095 | 129,607 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 73 | 160 |
Gross Unrealized Gains | 3,114 | 1,573 |
AFS securities | $ 126,054 | $ 128,194 |
AFS Securities (Amortized cos37
AFS Securities (Amortized cost and fair value of AFS securities by contractual maturity) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | $ 24,933 |
Maturing, After One Year But Within Five Years | 79,557 |
Maturing, After Five Years But Within Ten Years | 71,772 |
Maturing, After Ten Years | 33,731 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 345,008 |
Amortized Cost | 555,001 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less, Fair value | 24,968 |
Maturing, After One Year But Within Five Years, Fair value | 80,351 |
Maturing, After Five Years But Within Ten Years, Fair value | 72,692 |
Maturing, After Ten Years, Fair value | 33,824 |
Securities With Variable Monthly Payments or Noncontractual Maturities, Fair value | 335,927 |
Total, Fair value | 547,762 |
Government sponsored enterprises [Member] | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | 0 |
Maturing, After One Year But Within Five Years | 205 |
Maturing, After Five Years But Within Ten Years | 0 |
Maturing, After Ten Years | 0 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 |
Amortized Cost | 205 |
States and political subdivisions [Member] | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | 24,933 |
Maturing, After One Year But Within Five Years | 79,352 |
Maturing, After Five Years But Within Ten Years | 71,772 |
Maturing, After Ten Years | 33,731 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 |
Amortized Cost | 209,788 |
Auction rate money market preferred [Member] | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | 0 |
Maturing, After One Year But Within Five Years | 0 |
Maturing, After Five Years But Within Ten Years | 0 |
Maturing, After Ten Years | 0 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 3,200 |
Amortized Cost | 3,200 |
Mortgage-backed securities [Member] | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | 0 |
Maturing, After One Year But Within Five Years | 0 |
Maturing, After Five Years But Within Ten Years | 0 |
Maturing, After Ten Years | 0 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 212,713 |
Amortized Cost | 212,713 |
Collateralized mortgage obligations [Member] | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | 0 |
Maturing, After One Year But Within Five Years | 0 |
Maturing, After Five Years But Within Ten Years | 0 |
Maturing, After Ten Years | 0 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 129,095 |
Amortized Cost | $ 129,095 |
AFS Securities (AFS securities
AFS Securities (AFS securities with gross unrealized losses) (Details) $ in Thousands | Mar. 31, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 5,152 | $ 1,298 |
Fair Value, Less Than Twelve Months | 250,665 | 164,797 |
Gross Unrealized Losses, Twelve Months or More | 4,503 | 2,920 |
Fair Value, Twelve Months or More | 99,012 | 104,610 |
Total Unrealized Losses | $ 9,655 | $ 4,218 |
Number of Securities in an unrealized loss position, Less Than Twelve Months, Fair Value | Securities | 151 | 81 |
Number of Securities in an unrealized loss position, Twelve Months or More, Fair Value | Securities | 24 | 24 |
Number of Securities in an unrealized loss position, Total Unrealized Losses | Securities | 175 | 105 |
Government sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 3 | $ 1 |
Fair Value, Less Than Twelve Months | 202 | 216 |
Gross Unrealized Losses, Twelve Months or More | 0 | 0 |
Fair Value, Twelve Months or More | 0 | 0 |
Total Unrealized Losses | 3 | 1 |
States and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 395 | 142 |
Fair Value, Less Than Twelve Months | 32,838 | 16,139 |
Gross Unrealized Losses, Twelve Months or More | 0 | 1 |
Fair Value, Twelve Months or More | 150 | 188 |
Total Unrealized Losses | 395 | 143 |
Auction rate money market preferred [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 0 | 0 |
Fair Value, Less Than Twelve Months | 0 | 0 |
Gross Unrealized Losses, Twelve Months or More | 188 | 151 |
Fair Value, Twelve Months or More | 3,012 | 3,049 |
Total Unrealized Losses | 188 | 151 |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 2,756 | 454 |
Fair Value, Less Than Twelve Months | 121,210 | 72,007 |
Gross Unrealized Losses, Twelve Months or More | 3,199 | 1,896 |
Fair Value, Twelve Months or More | 71,928 | 76,065 |
Total Unrealized Losses | 5,955 | 2,350 |
Collateralized mortgage obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 1,998 | 701 |
Fair Value, Less Than Twelve Months | 96,415 | 76,435 |
Gross Unrealized Losses, Twelve Months or More | 1,116 | 872 |
Fair Value, Twelve Months or More | 23,922 | 25,308 |
Total Unrealized Losses | $ 3,114 | $ 1,573 |
AFS Securities (Roll-forward of
AFS Securities (Roll-forward of credit related impairment recognized in earnings) (Details) - Available-for-sale Securities [Member] - US States and Political Subdivisions Debt Securities [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Roll-forward of credit related impairment recognized in earnings | ||
Balance at beginning of period | $ 770 | $ 770 |
Additions to credit losses for which no previous OTTI was recognized | 0 | 0 |
Reductions for credit losses realized on securities sold during the period | 0 | 0 |
Balance at end of period | $ 770 | $ 770 |
AFS Securities Narratives New (
AFS Securities Narratives New (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2016 | |
Available-for-sale Securities [Member] | Auction Rate Securities [Member] | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, No Previous Impairment | $ 0 | $ 770 |
Loans and ALLL (Narrative) (Det
Loans and ALLL (Narrative) (Details) $ in Thousands | 3 Months Ended | ||||||
Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($)loan | Mar. 31, 2018USD ($)NumberofLoan | Mar. 31, 2017NumberofLoan | Dec. 31, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Threshold period of continuous performance to return loans to accrual status | 6 months | ||||||
Migration analysis of loan portfolio period | 5 years | ||||||
Advance in connection with impaired loans | $ 637 | $ 637 | $ 637 | $ 637 | $ 637 | $ 472 | |
Number of loans restructured through the forbearance of principal or accrued interest | NumberofLoan | 0 | 0 | |||||
Loans in default | 0 | 0 | 0 | ||||
Minimum [Member] | 4 - Low satisfactory [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Delinquency period | 10 days | ||||||
Minimum [Member] | 5 - Special mention [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Delinquency period | 30 days | ||||||
Maximum [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, amortization term | 30 years | ||||||
Maximum [Member] | 4 - Low satisfactory [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Delinquency period | 30 days | ||||||
Maximum [Member] | 5 - Special mention [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Delinquency period | 60 days | ||||||
Commercial, Agricultural, and Residential Portfolio Segments [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of days past due (or more), accrual of interest discontinued | 90 days | ||||||
Total Consumer [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum days of consumer loan charged off | 180 days | ||||||
Total Consumer [Member] | Maximum [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, amortization term | 15 years | ||||||
Commercial And Agricultural Portfolio Segment [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum percentage of loan | 0.80 | ||||||
Commercial And Agricultural Portfolio Segment [Member] | Customer Concentration Risk [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum amount of loans | 15,000 | ||||||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum amount of loans | 30,000 | ||||||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loan advance maturity period | 20 days | ||||||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | Maximum [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loan advance maturity period | 30 days | ||||||
Residential Real Estate [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum percentage of loan | 1 | ||||||
Maximum percentage of principal, interest, taxes and hazard insurance on property over gross income | 0.28 | ||||||
Maximum percentage of debt servicing over gross income | 0.40 | ||||||
Maximum amount without corporation approval | $ 500 | ||||||
Residential, Privately Insured, Financing Receivable [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum percentage of loan | 0.80 |
Loans and ALLL (Summary of chan
Loans and ALLL (Summary of changes in ALLL by segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | $ 7,700 | $ 7,400 |
Allowance for loan losses, Charge-offs | (103) | (144) |
Allowance for loan losses, Recoveries | 219 | 217 |
Allowance for loan losses, Provision for loan losses | 384 | 27 |
Allowance for loan losses, Ending Balance | 8,200 | 7,500 |
Commercial [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 1,706 | 1,814 |
Allowance for loan losses, Charge-offs | (5) | (27) |
Allowance for loan losses, Recoveries | 103 | 133 |
Allowance for loan losses, Provision for loan losses | 36 | (149) |
Allowance for loan losses, Ending Balance | 1,840 | 1,771 |
Agricultural [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 611 | 884 |
Allowance for loan losses, Charge-offs | 0 | 0 |
Allowance for loan losses, Recoveries | 0 | 0 |
Allowance for loan losses, Provision for loan losses | 613 | (357) |
Allowance for loan losses, Ending Balance | 1,224 | 527 |
Residential Real Estate [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 2,563 | 2,664 |
Allowance for loan losses, Charge-offs | (10) | (43) |
Allowance for loan losses, Recoveries | 56 | 36 |
Allowance for loan losses, Provision for loan losses | (127) | 441 |
Allowance for loan losses, Ending Balance | 2,482 | 3,098 |
Consumer Portfolio Segment [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 900 | 624 |
Allowance for loan losses, Charge-offs | (88) | (74) |
Allowance for loan losses, Recoveries | 60 | 48 |
Allowance for loan losses, Provision for loan losses | (77) | 73 |
Allowance for loan losses, Ending Balance | 795 | 671 |
Unallocated [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 1,920 | 1,414 |
Allowance for loan losses, Charge-offs | 0 | 0 |
Allowance for loan losses, Recoveries | 0 | 0 |
Allowance for loan losses, Provision for loan losses | (61) | 19 |
Allowance for loan losses, Ending Balance | $ 1,859 | $ 1,433 |
Loans and ALLL (Summary of reco
Loans and ALLL (Summary of recorded investment in loans by segments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | $ 2,503 | $ 2,130 | ||
Collectively evaluated for impairment, ALLL | 5,697 | 5,570 | ||
Total, ALLL | 8,200 | 7,700 | $ 7,500 | $ 7,400 |
Individually evaluated for impairment, Loans | 31,095 | 26,653 | ||
Collectively evaluated for impairment, Loans | 1,061,907 | 1,064,866 | ||
Total | 1,093,002 | 1,091,519 | ||
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 842 | 650 | ||
Collectively evaluated for impairment, ALLL | 998 | 1,056 | ||
Total, ALLL | 1,840 | 1,706 | 1,771 | 1,814 |
Individually evaluated for impairment, Loans | 11,675 | 8,099 | ||
Collectively evaluated for impairment, Loans | 631,961 | 626,660 | ||
Total | 643,636 | 634,759 | ||
Agricultural [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 141 | 0 | ||
Collectively evaluated for impairment, ALLL | 1,083 | 611 | ||
Total, ALLL | 1,224 | 611 | 527 | 884 |
Individually evaluated for impairment, Loans | 11,468 | 10,598 | ||
Collectively evaluated for impairment, Loans | 110,862 | 117,671 | ||
Total | 122,330 | 128,269 | ||
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 1,520 | 1,480 | ||
Collectively evaluated for impairment, ALLL | 962 | 1,083 | ||
Total, ALLL | 2,482 | 2,563 | 3,098 | 2,664 |
Individually evaluated for impairment, Loans | 7,940 | 7,939 | ||
Collectively evaluated for impairment, Loans | 262,210 | 264,429 | ||
Total | 270,150 | 272,368 | ||
Total Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||
Collectively evaluated for impairment, ALLL | 795 | 900 | ||
Total, ALLL | 795 | 900 | 671 | 624 |
Individually evaluated for impairment, Loans | 12 | 17 | ||
Collectively evaluated for impairment, Loans | 56,874 | 56,106 | ||
Total | 56,886 | 56,123 | ||
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||
Collectively evaluated for impairment, ALLL | 1,859 | 1,920 | ||
Total, ALLL | $ 1,859 | $ 1,920 | $ 1,433 | $ 1,414 |
Loans and ALLL (Credit quality
Loans and ALLL (Credit quality indicators for commercial and agricultural credit exposures) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 1,093,002 | $ 1,091,519 |
Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 643,636 | 634,759 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 477,080 | 481,654 |
Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 148,582 | 141,024 |
Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 17,974 | 12,081 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 122,330 | 128,269 |
Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 86,879 | 88,165 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 35,451 | 40,104 |
Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 765,966 | 763,028 |
1 - Excellent [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23 | 340 |
1 - Excellent [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23 | 24 |
1 - Excellent [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 316 |
1 - Excellent [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 34 | 34 |
1 - Excellent [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 34 | 34 |
1 - Excellent [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 57 | 374 |
2 - High quality [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 20,356 | 20,664 |
2 - High quality [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,417 | 8,402 |
2 - High quality [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 14,939 | 12,262 |
2 - High quality [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
2 - High quality [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,597 | 3,933 |
2 - High quality [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,783 | 2,909 |
2 - High quality [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 814 | 1,024 |
2 - High quality [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23,953 | 24,597 |
3 - High satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 179,890 | 190,575 |
3 - High satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 117,378 | 131,826 |
3 - High satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 44,538 | 46,668 |
3 - High satisfactory [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 17,974 | 12,081 |
3 - High satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 26,568 | 29,939 |
3 - High satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 20,474 | 21,072 |
3 - High satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,094 | 8,867 |
3 - High satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 206,458 | 220,514 |
4 - Low satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 422,008 | 401,757 |
4 - Low satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 337,859 | 326,166 |
4 - Low satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 84,149 | 75,591 |
4 - Low satisfactory [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
4 - Low satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 64,106 | 66,302 |
4 - Low satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 46,040 | 47,835 |
4 - Low satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 18,066 | 18,467 |
4 - Low satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 486,114 | 468,059 |
5 - Special mention [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,177 | 12,875 |
5 - Special mention [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,615 | 8,986 |
5 - Special mention [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,562 | 3,889 |
5 - Special mention [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
5 - Special mention [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 14,810 | 19,039 |
5 - Special mention [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 9,618 | 10,493 |
5 - Special mention [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,192 | 8,546 |
5 - Special mention [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 24,987 | 31,914 |
6 - Substandard [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,615 | 7,819 |
6 - Substandard [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,424 | 5,521 |
6 - Substandard [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,191 | 2,298 |
6 - Substandard [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
6 - Substandard [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,322 | 7,072 |
6 - Substandard [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,435 | 4,325 |
6 - Substandard [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,887 | 2,747 |
6 - Substandard [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 18,937 | 14,891 |
7 - Vulnerable [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,567 | 729 |
7 - Vulnerable [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,364 | 729 |
7 - Vulnerable [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,203 | 0 |
7 - Vulnerable [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
7 - Vulnerable [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,893 | 1,950 |
7 - Vulnerable [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,529 | 1,531 |
7 - Vulnerable [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 364 | 419 |
7 - Vulnerable [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,460 | 2,679 |
8 - Doubtful [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 0 |
Loans and ALLL (Past due and cu
Loans and ALLL (Past due and current loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 664 | $ 395 |
Nonaccrual | 6,237 | 3,027 |
Total Past Due and Nonaccrual | 14,127 | 9,836 |
Current | 1,078,875 | 1,081,683 |
Total | 1,093,002 | 1,091,519 |
Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 51 | 72 |
Nonaccrual | 3,567 | 729 |
Total Past Due and Nonaccrual | 5,123 | 2,518 |
Current | 638,513 | 632,241 |
Total | 643,636 | 634,759 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 51 | 54 |
Nonaccrual | 2,364 | 729 |
Total Past Due and Nonaccrual | 2,540 | 1,403 |
Current | 474,540 | 480,251 |
Total | 477,080 | 481,654 |
Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 18 |
Nonaccrual | 1,203 | 0 |
Total Past Due and Nonaccrual | 2,583 | 1,115 |
Current | 145,999 | 139,909 |
Total | 148,582 | 141,024 |
Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Current | 17,974 | 12,081 |
Total | 17,974 | 12,081 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 481 | 104 |
Nonaccrual | 1,893 | 1,950 |
Total Past Due and Nonaccrual | 4,275 | 2,367 |
Current | 118,055 | 125,902 |
Total | 122,330 | 128,269 |
Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 463 | 0 |
Nonaccrual | 1,529 | 1,531 |
Total Past Due and Nonaccrual | 3,601 | 1,805 |
Current | 83,278 | 86,360 |
Total | 86,879 | 88,165 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 18 | 104 |
Nonaccrual | 364 | 419 |
Total Past Due and Nonaccrual | 674 | 562 |
Current | 34,777 | 39,542 |
Total | 35,451 | 40,104 |
Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 132 | 209 |
Nonaccrual | 777 | 348 |
Total Past Due and Nonaccrual | 4,614 | 4,881 |
Current | 265,536 | 267,487 |
Total | 270,150 | 272,368 |
Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 22 | 132 |
Nonaccrual | 754 | 325 |
Total Past Due and Nonaccrual | 4,096 | 4,409 |
Current | 225,033 | 225,007 |
Total | 229,129 | 229,416 |
Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 10 | 0 |
Nonaccrual | 23 | 23 |
Total Past Due and Nonaccrual | 56 | 102 |
Current | 6,422 | 6,812 |
Total | 6,478 | 6,914 |
Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 100 | 77 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 462 | 370 |
Current | 34,081 | 35,668 |
Total | 34,543 | 36,038 |
Total Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 10 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 115 | 70 |
Current | 56,771 | 56,053 |
Total | 56,886 | 56,123 |
Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 10 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 103 | 57 |
Current | 52,958 | 52,005 |
Total | 53,061 | 52,062 |
Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 12 | 13 |
Current | 3,813 | 4,048 |
Total | 3,825 | 4,061 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,828 | 5,617 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,426 | 1,364 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 95 | 295 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,331 | 1,069 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,055 | 123 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 805 | 84 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 250 | 39 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,232 | 4,080 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,020 | 3,718 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 23 | 69 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 189 | 293 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 115 | 50 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 103 | 37 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 12 | 13 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,398 | 797 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 79 | 353 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 30 | 325 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 49 | 28 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 846 | 190 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 804 | 190 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 42 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 473 | 244 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 300 | 234 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 10 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 173 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 10 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 10 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Loans and ALLL (Summary of info
Loans and ALLL (Summary of information pertaining to impaired loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | $ 16,793 | $ 12,944 | |
Impaired loans without a valuation allowance, Outstanding Balance | 14,302 | 13,709 | |
Impaired loans, Outstanding Balance | 31,095 | 26,653 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 17,709 | 13,876 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 14,676 | 14,083 | |
Impaired loans, Unpaid Principal Balance | 32,385 | 27,959 | |
Impaired loans, Valuation Allowance | 2,503 | 2,130 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 14,870 | $ 14,852 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 14,007 | 7,078 | |
Impaired loans, Average Outstanding Balance | 28,877 | 21,930 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 193 | 180 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 133 | 115 | |
Impaired loans, Interest Income Recognized | 326 | 295 | |
Total commercial [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 11,675 | 8,099 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 12,037 | 8,462 | |
Impaired loans, Valuation Allowance | 842 | 650 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 9,888 | 7,730 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 167 | 132 | |
Commercial real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 5,946 | 4,089 | |
Impaired loans without a valuation allowance, Outstanding Balance | 2,466 | 1,791 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 6,234 | 4,378 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 2,540 | 1,865 | |
Impaired loans, Valuation Allowance | 639 | 626 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 5,018 | 5,015 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 2,129 | 1,326 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 91 | 73 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 35 | 33 | |
Commercial other [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 2,099 | 995 | |
Impaired loans without a valuation allowance, Outstanding Balance | 1,164 | 1,224 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 2,099 | 995 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 1,164 | 1,224 | |
Impaired loans, Valuation Allowance | 203 | 24 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 1,547 | 1,275 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 1,194 | 114 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 24 | 24 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 17 | 2 | |
Total agricultural [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 11,468 | 10,598 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 11,468 | 10,598 | |
Impaired loans, Valuation Allowance | 141 | 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 11,034 | 5,547 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 80 | 75 | |
Agricultural real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 881 | 0 | |
Impaired loans without a valuation allowance, Outstanding Balance | 8,082 | 7,913 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 881 | 0 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 8,082 | 7,913 | |
Impaired loans, Valuation Allowance | 141 | 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 441 | 0 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 7,998 | 4,042 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 4 | 0 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 40 | 62 | |
Agricultural other [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 0 | 0 | |
Impaired loans without a valuation allowance, Outstanding Balance | 2,505 | 2,685 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 0 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 2,505 | 2,685 | |
Impaired loans, Valuation Allowance | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 0 | 67 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 2,595 | 1,438 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 0 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 36 | 13 | |
Total residential real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 7,940 | 7,939 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 8,868 | 8,882 | |
Impaired loans, Valuation Allowance | 1,520 | 1,480 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 7,940 | 8,628 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 79 | 88 | |
Residential real estate senior liens [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 7,831 | 7,816 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 8,459 | 8,459 | |
Impaired loans, Valuation Allowance | 1,514 | 1,473 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 7,824 | 8,420 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 74 | 83 | |
Residential real estate junior liens [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 36 | 44 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 36 | 44 | |
Impaired loans, Valuation Allowance | 6 | 7 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 40 | 75 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 0 | |
Residential real estate home equity lines of credit [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Outstanding Balance | 73 | 79 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 373 | 379 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Average Outstanding Balance | 76 | 133 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans without a valuation allowance, Interest Income Recognized | 5 | 5 | |
Total Consumer [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 12 | 17 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 12 | 17 | |
Impaired loans, Valuation Allowance | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 15 | 25 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 0 | 0 | |
Consumer secured [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Outstanding Balance | 12 | 17 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 12 | $ 17 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Average Outstanding Balance | 15 | 25 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans without a valuation allowance, Interest Income Recognized | $ 0 | $ 0 |
Loans and ALLL (Summary of in47
Loans and ALLL (Summary of information pertaining to TDRs) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)loan | Mar. 31, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 7 | 3 |
Pre-Modification Recorded Investment | $ 2,483 | $ 235 |
Post-Modification Recorded Investment | $ 2,483 | $ 235 |
Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 1 |
Pre-Modification Recorded Investment | $ 272 | $ 8 |
Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 5 | 2 |
Pre-Modification Recorded Investment | $ 2,211 | $ 227 |
Commercial other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 3 | 2 |
Pre-Modification Recorded Investment | $ 1,255 | $ 227 |
Post-Modification Recorded Investment | $ 1,255 | $ 227 |
Commercial other [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 174 | $ 0 |
Commercial other [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Pre-Modification Recorded Investment | $ 1,081 | $ 227 |
Agricultural other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 0 |
Pre-Modification Recorded Investment | $ 1,061 | $ 0 |
Post-Modification Recorded Investment | $ 1,061 | $ 0 |
Agricultural other [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 98 | $ 0 |
Agricultural other [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 963 | $ 0 |
Residential real estate senior liens [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 0 |
Pre-Modification Recorded Investment | $ 167 | $ 0 |
Post-Modification Recorded Investment | $ 167 | $ 0 |
Residential real estate senior liens [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Residential real estate senior liens [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 0 |
Pre-Modification Recorded Investment | $ 167 | $ 0 |
Residential real estate junior liens [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 8 |
Post-Modification Recorded Investment | $ 0 | $ 8 |
Residential real estate junior liens [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 8 |
Residential real estate junior liens [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Total residential real estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 1 |
Pre-Modification Recorded Investment | $ 167 | $ 8 |
Post-Modification Recorded Investment | $ 167 | $ 8 |
Total residential real estate [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 8 |
Total residential real estate [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 0 |
Pre-Modification Recorded Investment | $ 167 | $ 0 |
Loans and ALLL (Summary of TDR
Loans and ALLL (Summary of TDR loan balances) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Troubled debt restructurings | $ 27,540 | $ 26,197 |
Equity Securities Without Rea49
Equity Securities Without Readily Determinable Fair Values (Equity securities without readily determinable fair values) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Equity Method And Other Investments [Abstract] | ||
FHLB Stock | $ 13,700 | $ 13,700 |
FRB Stock | 1,999 | 1,999 |
Other | 334 | 334 |
Total | 23,391 | 23,454 |
Investment in Corporate Settlement Solutions [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 7,358 | $ 7,421 |
Borrowed Funds (Borrowed funds
Borrowed Funds (Borrowed funds obligations) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule of Debt [Line Items] | |||
Borrowed funds | $ 303,113 | $ 344,878 | |
Borrowed funds, Rate | 1.74% | 1.65% | |
Securities Sold under Agreements to Repurchase [Member] | |||
Schedule of Debt [Line Items] | |||
Short-term Debt, Maximum Month-end Outstanding Amount | $ 38,967 | $ 58,088 | |
Borrowed funds | $ 32,913 | $ 54,878 | |
Borrowed funds, Rate | 0.09% | 0.12% | |
Federal Funds Purchased [Member] | |||
Schedule of Debt [Line Items] | |||
Short-term Debt, Maximum Month-end Outstanding Amount | $ 10,200 | $ 5,200 | |
Borrowed funds | $ 10,200 | $ 0 | |
Borrowed funds, Rate | 1.89% | 0.00% | |
Federal Home Loan Bank Advances [Member] | |||
Schedule of Debt [Line Items] | |||
Borrowed funds | $ 260,000 | $ 290,000 | |
Borrowed funds, Rate | 1.94% | 1.94% |
Borrowed Funds (Maturity and we
Borrowed Funds (Maturity and weighted average interest rates of FHLB advances) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.94% | 1.94% |
FHLB advances | $ 260,000 | $ 290,000 |
Fixed Rate Advances Due 2018 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.57% | 1.96% |
FHLB fixed rate advances | $ 30,000 | $ 70,000 |
Fixed Rate Advances Due 2019 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.87% | 1.87% |
FHLB fixed rate advances | $ 85,000 | $ 85,000 |
Fixed Rate Advances Due 2020 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.80% | 1.80% |
FHLB fixed rate advances | $ 35,000 | $ 35,000 |
Fixed Rate Advances Due 2021 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.91% | 1.91% |
FHLB fixed rate advances | $ 50,000 | $ 50,000 |
Federal Home Loan Bank, Advances, Variable Rate Due 2021 [Member] [Member] [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Floating Rate | $ 10,000 | $ 10,000 |
FHLB advances, rate | 2.15% | 1.72% |
Federal Home Loan Bank, Advances, Fixed Rate Due 2022 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.97% | 1.97% |
FHLB fixed rate advances | $ 20,000 | $ 20,000 |
Fixed Rate Advances Due 2023 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 3.36% | 3.90% |
FHLB fixed rate advances | $ 20,000 | $ 10,000 |
Federal Home Loan Bank, Advances, Fixed Rate Due 2026 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.17% | 1.17% |
FHLB fixed rate advances | $ 10,000 | $ 10,000 |
Borrowed Funds (Short-term borr
Borrowed Funds (Short-term borrowings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Maximum Month End Balance | $ 38,967 | $ 58,088 |
Average Balance | $ 35,995 | $ 57,505 |
Weighted Average Interest Rate During the Period | 0.10% | 0.13% |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Maximum Month End Balance | $ 10,200 | $ 5,200 |
Average Balance | $ 4,460 | $ 863 |
Weighted Average Interest Rate During the Period | 1.66% | 0.96% |
Borrowed Funds (Pledged financi
Borrowed Funds (Pledged financial instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Pledged to secure borrowed funds | $ 402,702 | $ 410,988 |
Pledged to secure repurchase agreements | 32,933 | 54,898 |
Pledged for public deposits and for other purposes necessary or required by law | 33,958 | 27,976 |
Total | 469,593 | 493,862 |
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 32,933 | 54,898 |
State and Local Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 2,413 | 7,332 |
Mortgage Backed Securities, Other [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 9,192 | 13,199 |
Collateralized Mortgage Obligations [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | $ 21,328 | $ 34,367 |
Borrowed Funds (Derivatives) (D
Borrowed Funds (Derivatives) (Details) - Cash Flow Hedging [Member] - Interest Rate Swaps [Member] - Designated as Hedging Instrument [Member] - London Interbank Offered Rate (LIBOR) [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | ||
Pay Rate | 1.56% | 1.56% |
Remaining Life (Years) | 3 years 1 month | 3 years 4 months |
Notional Amount | $ 10,000 | $ 10,000 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 413 | $ 291 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Carrying value of securities sold under agreements to repurchase | $ 32,933 | $ 54,898 |
Short-term Debt [Line Items] | ||
Additional borrowing capacity | $ 153,347 | |
Federal Funds Purchased [Member] | Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 1 day | |
Federal Funds Purchased [Member] | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 4 days |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 1,331 | $ 1,186 |
Debit card income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 588 | 530 |
Trust service fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 502 | 411 |
Brokerage advisory fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 156 | 160 |
Service charges and fees related to deposit accounts [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 85 | $ 85 |
Other Noninterest Expenses (Exp
Other Noninterest Expenses (Expenses included in other noninterest expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Summary of expenses included in other noninterest expenses | ||
ATM and Debit Card Expense | $ 232 | $ 216 |
Professional Fees, Audit And Related | 202 | 198 |
Directors fees | 209 | 209 |
Professional Fees, Consulting | 250 | 205 |
Expense Related to Distribution or Servicing and Underwriting Fees | 149 | 117 |
FDIC insurance premiums | 164 | 153 |
Donations and community relations | 151 | 130 |
Postage and freight | 131 | 109 |
Marketing Expense | 110 | 89 |
Education and travel | 115 | 96 |
All other | 586 | 691 |
Total other | $ 2,299 | $ 2,213 |
Federal Income Taxes (Details)
Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory tax rate | 21.00% | 34.00% |
Income taxes at 34% statutory rate | $ 783 | $ 1,247 |
Interest income on tax exempt municipal securities | (274) | (455) |
Earnings on corporate owned life insurance policies | (36) | (61) |
Effect of tax credits | (200) | (189) |
Other | (11) | (18) |
Total effect of nontaxable income | (521) | (723) |
Effect of nondeductible expenses | 3 | 8 |
Federal income tax expense | $ 265 | $ 532 |
Fair Value (Quantitative inform
Fair Value (Quantitative information about impaired loans) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discounted appraisal value at fair value | $ 18,934 | $ 15,956 |
Loans Receivable, Collateralized By Livestock [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | 30.00% |
Real Estate [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 20.00% | 20.00% |
Real Estate [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | 0.00% |
Equipment [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 25.00% | 20.00% |
Equipment [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 35.00% | 0.00% |
Loans Receivable, Collateralized By Accounts Receivable [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 50.00% | |
Loans Receivable, Collateralized By Accounts Receivable [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 25.00% | |
Loans Receivable, Collateralized By Accounts Receivable [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 50.00% | |
Cash crop inventory [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | 30.00% |
Cash crop inventory [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 40.00% | 0.00% |
Loans Receivable, Collateralized By Other Inventory [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 50.00% | 50.00% |
Loans Receivable, Collateralized By Other Inventory [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 75.00% | 75.00% |
Liquor License [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 75.00% | 75.00% |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 35.00% | 35.00% |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 45.00% | 45.00% |
Fair Value (Quantitative info60
Fair Value (Quantitative information related to foreclosed assets) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - Real Estate [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 20.00% | 20.00% |
Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | 30.00% |
Fair Value (Carrying amount and
Fair Value (Carrying amount and estimated fair value of financial instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Level 1 [Member] | |||
ASSETS | |||
Cash and cash equivalents | $ 16,712 | $ 30,848 | |
Mortgage loans AFS | 0 | 0 | |
Total loans | 0 | 0 | |
Less allowance for loan losses | 0 | 0 | |
Net loans | 0 | 0 | |
Accrued interest receivable | 7,134 | 7,063 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 0 | 0 | |
LIABILITIES | |||
Deposits without stated maturities | 825,808 | 811,992 | |
Deposits with stated maturities | 0 | 0 | |
Borrowed funds | 0 | 0 | |
Accrued interest payable | 676 | 680 | |
Level 2 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Mortgage loans AFS | 447 | 1,587 | |
Total loans | 0 | 0 | |
Less allowance for loan losses | 0 | 0 | |
Net loans | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 2,421 | 2,409 | |
LIABILITIES | |||
Deposits without stated maturities | 0 | 0 | |
Deposits with stated maturities | 460,342 | 443,892 | |
Borrowed funds | 298,139 | 342,089 | |
Accrued interest payable | 0 | 0 | |
Level 3 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Mortgage loans AFS | 0 | 0 | |
Total loans | 1,075,018 | 1,056,906 | |
Less allowance for loan losses | 8,200 | 7,700 | |
Net loans | 1,066,818 | 1,049,206 | |
Accrued interest receivable | 0 | 0 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 0 | 0 | |
LIABILITIES | |||
Deposits without stated maturities | 0 | 0 | |
Deposits with stated maturities | 0 | 0 | |
Borrowed funds | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Carrying Value [Member] | |||
ASSETS | |||
Cash and cash equivalents | 16,712 | 30,848 | |
Mortgage loans AFS | 359 | 1,560 | |
Total loans | 1,093,002 | 1,091,519 | |
Less allowance for loan losses | 8,200 | 7,700 | |
Net loans | 1,084,802 | 1,083,819 | |
Accrued interest receivable | 7,134 | 7,063 | |
Equity securities without readily determinable fair values | [1] | 23,391 | 23,454 |
Originated mortgage servicing rights | 2,421 | 2,409 | |
LIABILITIES | |||
Deposits without stated maturities | 825,808 | 811,992 | |
Deposits with stated maturities | 472,060 | 453,266 | |
Borrowed funds | 303,113 | 344,878 | |
Accrued interest payable | 676 | 680 | |
Estimated Fair Value [Member] | |||
ASSETS | |||
Cash and cash equivalents | 16,712 | 30,848 | |
Mortgage loans AFS | 447 | 1,587 | |
Total loans | 1,075,018 | 1,056,906 | |
Less allowance for loan losses | 8,200 | 7,700 | |
Net loans | 1,066,818 | 1,049,206 | |
Accrued interest receivable | 7,134 | 7,063 | |
Originated mortgage servicing rights | 2,421 | 2,409 | |
LIABILITIES | |||
Deposits without stated maturities | 825,808 | 811,992 | |
Deposits with stated maturities | 460,342 | 443,892 | |
Borrowed funds | 298,139 | 342,089 | |
Accrued interest payable | $ 676 | $ 680 | |
[1] | Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. If we were to record an impairment adjustment related to these securities, such amount would be classified as a nonrecurring Level 3 fair value adjustment. |
Fair Value (Recorded amount of
Fair Value (Recorded amount of assets and liabilities measured at fair value) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
AFS Securities | ||
AFS securities | $ 547,762 | $ 548,730 |
Available-for-sale Securities, Equity Securities | 3,575 | 3,577 |
Fair value, total | 570,684 | 568,554 |
Level 1 [Member] | ||
AFS Securities | ||
Fair value, total | $ 3,575 | $ 3,577 |
Percent of assets and liabilities measured at fair value | 0.63% | 0.63% |
Level 2 [Member] | ||
AFS Securities | ||
Fair value, total | $ 548,175 | $ 549,021 |
Percent of assets and liabilities measured at fair value | 96.06% | 96.56% |
Level 3 [Member] | ||
AFS Securities | ||
Fair value, total | $ 18,934 | $ 15,956 |
Percent of assets and liabilities measured at fair value | 3.31% | 2.81% |
Recurring items [Member] | ||
AFS Securities | ||
AFS securities | $ 547,762 | $ 548,730 |
Available-for-sale Securities, Equity Securities | 3,575 | 3,577 |
Derivative instruments | (413) | 291 |
Recurring items [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
AFS securities | 202 | 216 |
Recurring items [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 211,633 | 208,474 |
Recurring items [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 3,012 | 3,049 |
Recurring items [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 206,861 | 208,797 |
Recurring items [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 126,054 | 128,194 |
Recurring items [Member] | Level 1 [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Available-for-sale Securities, Equity Securities | 3,575 | 3,577 |
Derivative instruments | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 2 [Member] | ||
AFS Securities | ||
AFS securities | 547,762 | 548,730 |
Available-for-sale Securities, Equity Securities | 0 | 0 |
Derivative instruments | 413 | 291 |
Recurring items [Member] | Level 2 [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
AFS securities | 202 | 216 |
Recurring items [Member] | Level 2 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 211,633 | 208,474 |
Recurring items [Member] | Level 2 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 3,012 | 3,049 |
Recurring items [Member] | Level 2 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 206,861 | 208,797 |
Recurring items [Member] | Level 2 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 126,054 | 128,194 |
Recurring items [Member] | Level 3 [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Available-for-sale Securities, Equity Securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Nonrecurring items [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 18,934 | 15,956 |
Nonrecurring items [Member] | Level 1 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Nonrecurring items [Member] | Level 2 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Nonrecurring items [Member] | Level 3 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | $ 18,934 | $ 15,956 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details Textual) - Level 3 [Member] | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairments recorded on equity securities without readily determinable fair values | $ 0 |
Impairments recorded on goodwill and other acquisition intangibles | $ 0 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ (2,602) | $ (2,778) |
OCI before reclassifications | (7,935) | 1,694 |
Tax effect | 1,658 | (456) |
Unrealized gains (losses), net of tax | (6,277) | 1,238 |
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | |
Ending Balance | (8,656) | (1,540) |
ASU 2016-01 [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 223 | 0 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 391 | 30 |
OCI before reclassifications | (8,057) | 1,677 |
Tax effect | 1,684 | (450) |
Unrealized gains (losses), net of tax | (6,373) | 1,227 |
Ending Balance | (5,759) | 1,257 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ASU 2016-01 [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 223 | 0 |
Defined Benefit Pension Plan [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (3,223) | (2,972) |
OCI before reclassifications | 0 | 0 |
Tax effect | 0 | 0 |
Unrealized gains (losses), net of tax | 0 | 0 |
Ending Balance | (3,223) | (2,972) |
Defined Benefit Pension Plan [Member] | ASU 2016-01 [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 |
Gain (Loss) on Derivative Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 230 | 164 |
OCI before reclassifications | 122 | 17 |
Tax effect | (26) | (6) |
Unrealized gains (losses), net of tax | 96 | 11 |
Ending Balance | 326 | 175 |
Gain (Loss) on Derivative Instruments [Member] | ASU 2016-01 [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 |
Auction Rate Money Market Preferred Stocks [Member] | Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Unrealized gains (losses), net of tax | $ (37) | $ 355 |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Loss) (Components of unrealized holding gains on AFS securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on AFS securities arising during the period | $ (8,057) | $ 1,677 |
Tax effect | 1,684 | (450) |
Unrealized gains (losses), net of tax | (6,277) | 1,238 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on AFS securities arising during the period | (8,057) | 1,677 |
Tax effect | 1,684 | (450) |
Unrealized gains (losses), net of tax | (6,373) | 1,227 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | Auction Rate Money Market Preferred and Preferred Stocks [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on AFS securities arising during the period | (37) | 355 |
Tax effect | 0 | 0 |
Unrealized gains (losses), net of tax | (37) | 355 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | All Other AFS Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on AFS securities arising during the period | (8,020) | 1,322 |
Tax effect | 1,684 | (450) |
Unrealized gains (losses), net of tax | (6,336) | 872 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses), net of tax | $ 0 | $ 0 |
Parent Company Only Financial66
Parent Company Only Financial Information (Interim Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
AFS securities | $ 547,762 | |||
Premises and equipment | 28,493 | $ 28,450 | ||
Other assets | 11,646 | 10,056 | ||
TOTAL ASSETS | 1,799,592 | 1,813,130 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Shareholders' equity | 191,090 | 194,905 | $ 190,976 | $ 187,899 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,799,592 | 1,813,130 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash on deposit at subsidiary Bank | 1,410 | 185 | ||
Investments in subsidiaries | 141,754 | 145,962 | ||
Premises and equipment | 1,914 | 1,950 | ||
Other assets | 51,360 | 52,253 | ||
TOTAL ASSETS | 196,438 | 200,350 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other liabilities | 5,348 | 5,445 | ||
Shareholders' equity | 191,090 | 194,905 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 196,438 | $ 200,350 |
Parent Company Only Financial67
Parent Company Only Financial Information (Interim Condensed Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Expenses | ||
Compensation and benefits | $ 5,494 | $ 5,557 |
Occupancy and equipment | 824 | 837 |
ProfesDonations and community relations | 202 | 198 |
Other | 2,299 | 2,213 |
Federal income tax benefit | (265) | (532) |
Net income | 3,462 | 3,136 |
Parent Company [Member] | ||
Income | ||
Dividends from subsidiaries | 2,100 | 1,700 |
Interest income | 0 | 2 |
Management fee and other | 675 | 1,550 |
Total income | 2,775 | 3,252 |
Expenses | ||
Compensation and benefits | 984 | 1,372 |
Occupancy and equipment | 123 | 444 |
ProfesDonations and community relations | 69 | 124 |
Other | 394 | 541 |
Total expenses | 1,570 | 2,481 |
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 1,205 | 771 |
Federal income tax benefit | 188 | 316 |
Income before equity in undistributed earnings of subsidiaries | 1,393 | 1,087 |
Undistributed earnings of subsidiaries | 2,069 | 2,049 |
Net income | $ 3,462 | $ 3,136 |
Parent Company Only Financial68
Parent Company Only Financial Information (Interim Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income | $ 3,462 | $ 3,136 |
Adjustments to reconcile net income to cash provided by operations | ||
Share-based payment awards | 146 | 178 |
Depreciation | 717 | 722 |
Changes in operating assets and liabilities which used cash | ||
Other assets | 124 | 322 |
Accrued interest and other liabilities | (568) | (70) |
Net cash provided by (used in) operating activities | 5,810 | 4,387 |
Investing activities | ||
Sales (purchases) of premises and equipment | (760) | (390) |
Net cash provided by (used in) investing activities | (9,645) | (33,448) |
Financing activities | ||
Cash dividends paid on common stock | (2,041) | (1,953) |
Proceeds from the issuance of common stock | 1,616 | 1,770 |
Common stock repurchased | (620) | (1,169) |
Common stock purchased for deferred compensation obligations | (101) | (123) |
Net cash provided by (used in) financing activities | (10,301) | 24,227 |
Increase (decrease) in cash and cash equivalents | (14,136) | (4,834) |
Cash and cash equivalents at beginning of period | 30,848 | 22,894 |
Cash and cash equivalents at end of period | 16,712 | 18,060 |
Parent Company [Member] | ||
Operating activities | ||
Net income | 3,462 | 3,136 |
Adjustments to reconcile net income to cash provided by operations | ||
Undistributed earnings of subsidiaries | (2,069) | (2,049) |
Undistributed earnings of equity securities without readily determinable fair values | 63 | 78 |
Share-based payment awards | 146 | 178 |
Depreciation | 30 | 39 |
Changes in operating assets and liabilities which used cash | ||
Other assets | 830 | 74 |
Accrued interest and other liabilities | (97) | (1,073) |
Net cash provided by (used in) operating activities | 2,365 | 383 |
Investing activities | ||
Maturities, calls, principal payments, and sales of AFS securities | 0 | 249 |
Sales (purchases) of premises and equipment | 6 | (3) |
Net cash provided by (used in) investing activities | 6 | 246 |
Financing activities | ||
Cash dividends paid on common stock | (2,041) | (1,953) |
Proceeds from the issuance of common stock | 1,616 | 1,770 |
Common stock repurchased | (620) | (1,169) |
Common stock purchased for deferred compensation obligations | (101) | (123) |
Net cash provided by (used in) financing activities | (1,146) | (1,475) |
Increase (decrease) in cash and cash equivalents | 1,225 | (846) |
Cash and cash equivalents at beginning of period | 185 | 1,297 |
Cash and cash equivalents at end of period | $ 1,410 | $ 451 |
Operating Segments (Narrative)
Operating Segments (Narrative) (Details) | Mar. 31, 2018 | Mar. 31, 2017 |
Segment Reporting [Abstract] | ||
Percentage of reportable segments total assets and operating results, or more | 90.00% | 90.00% |