Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 11, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ISABELLA BANK CORP | ||
Entity Central Index Key | 0000842517 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 7,873,337 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 211,421,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | ||
Cash and demand deposits due from banks | $ 23,534 | $ 25,267 |
Interest bearing balances due from banks | 49,937 | 5,581 |
Total cash and cash equivalents | 73,471 | 30,848 |
Debt Securities, Available-for-sale | 494,834 | 548,730 |
AFS securities (amortized cost of $572,087 in 2014 and $517,614 in 2013) | 494,834 | 548,730 |
Available-for-sale Securities, Equity Securities | 0 | 3,577 |
Mortgage loans AFS | 358 | 1,560 |
Loans | ||
Commercial | 659,529 | 634,759 |
Agricultural | 127,161 | 128,269 |
Residential real estate | 275,343 | 272,368 |
Consumer | 66,674 | 56,123 |
Gross loans | 1,128,707 | 1,091,519 |
Less allowance for loan losses | 8,375 | 7,700 |
Net loans | 1,120,332 | 1,083,819 |
Premises and equipment | 27,815 | 28,450 |
Corporate owned life insurance | 27,733 | 27,026 |
Accrued interest receivable | 6,928 | 7,063 |
Equity securities without readily determinable fair values | 24,948 | 23,454 |
Goodwill and other intangible assets | 48,451 | 48,547 |
Other assets | 12,437 | 10,056 |
TOTAL ASSETS | 1,837,307 | 1,813,130 |
Deposits | ||
Noninterest bearing | 236,534 | 237,511 |
NOW accounts | 235,287 | 231,666 |
Certificates of deposit under $100 and other savings | 744,944 | 728,090 |
Time Deposits, at or Above FDIC Insurance Limit | 75,928 | 67,991 |
Total deposits | 1,292,693 | 1,265,258 |
Borrowed funds | 340,299 | 344,878 |
Accrued interest payable and other liabilities | 8,796 | 8,089 |
Total liabilities | 1,641,788 | 1,618,225 |
Shareholders' equity | ||
Common stock — no par value 15,000,000 shares authorized; issued and outstanding 7,741,530 shares (including 10,579 shares held in the Rabbi Trust) in 2014 and 7,723,023 shares (including 12,761 shares held in the Rabbi Trust) in 2013 | 140,416 | 140,277 |
Shares to be issued for deferred compensation obligations | 5,431 | 5,502 |
Retained earnings | 57,357 | 51,728 |
Accumulated other comprehensive income loss | (7,685) | (2,602) |
Total shareholders' equity | 195,519 | 194,905 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,837,307 | $ 1,813,130 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, amortized cost | $ 501,245 | $ 547,912 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,870,969 | 7,857,293 |
Common stock, shares outstanding | 7,870,969 | 7,857,293 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - 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, 2015 | $ 183,971 | $ 139,198 | $ 4,592 | $ 39,960 | $ 221 |
Beginning balances, shares at Dec. 31, 2015 | 7,799,867 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 10,800 | 13,799 | (2,999) | ||
Issuance of common stock | 5,023 | $ 5,023 | |||
Issuance of common stock, shares | 179,903 | ||||
Common stock issued for deferred compensation obligations | 0 | $ 0 | 0 | ||
Common stock issued for deferred compensation obligations, shares | 0 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 127 | (127) | ||
Share based payment awards under equity compensation plan | 573 | 573 | |||
Common stock purchased for deferred compensation obligations | (383) | (383) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (4,440) | $ (4,440) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (158,701) | ||||
Cash dividends | (7,645) | (7,645) | |||
Ending balances at Dec. 31, 2016 | 187,899 | $ 139,525 | 5,038 | 46,114 | (2,778) |
Ending balances, shares at Dec. 31, 2016 | 7,821,069 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 13,780 | 13,237 | 543 | ||
Tax Cuts and Jobs Act Reclassification to Retained Earnings | (367) | 367 | (367) | ||
Issuance of common stock | 6,177 | $ 6,177 | |||
Issuance of common stock, shares | 220,510 | ||||
Common stock issued for deferred compensation obligations | 0 | $ 0 | 0 | ||
Common stock issued for deferred compensation obligations, shares | 0 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 176 | (176) | ||
Share based payment awards under equity compensation plan | 640 | 640 | |||
Common stock purchased for deferred compensation obligations | (420) | (420) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (5,181) | $ (5,181) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (184,286) | ||||
Cash dividends | (7,990) | (7,990) | |||
Ending balances at Dec. 31, 2017 | $ 194,905 | $ 140,277 | 5,502 | 51,728 | (2,602) |
Ending balances, shares at Dec. 31, 2017 | 7,857,293 | 7,857,293 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | $ 8,715 | 14,021 | (5,306) | ||
Issuance of common stock | 6,864 | $ 6,864 | |||
Issuance of common stock, shares | 261,693 | ||||
Common stock issued for deferred compensation obligations | 0 | $ 0 | 0 | ||
Common stock issued for deferred compensation obligations, shares | 0 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 683 | (683) | ||
Share based payment awards under equity compensation plan | 612 | 612 | |||
Common stock purchased for deferred compensation obligations | (401) | (401) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (7,007) | $ (7,007) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (248,017) | ||||
Cash dividends | (8,169) | (8,169) | |||
Ending balances at Dec. 31, 2018 | $ 195,519 | $ 140,416 | $ 5,431 | 57,357 | (7,685) |
Ending balances, shares at Dec. 31, 2018 | 7,870,969 | 7,870,969 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | $ (223) | $ 223 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.04 | $ 1.02 | $ 0.98 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income | |||
Loans, including fees | $ 49,229 | $ 43,537 | $ 38,537 |
AFS securities | |||
Taxable | 8,239 | 8,410 | 8,591 |
Nontaxable | 5,279 | 5,570 | 5,715 |
Federal funds sold and other | 1,117 | 896 | 823 |
Total interest income | 63,864 | 58,413 | 53,666 |
Interest expense | |||
Deposits | 9,261 | 6,809 | 5,836 |
Borrowings | 6,370 | 5,685 | 5,029 |
Total interest expense | 15,631 | 12,494 | 10,865 |
Net interest income | 48,233 | 45,919 | 42,801 |
Provision for loan losses | 978 | 253 | (135) |
Net interest income after provision for loan losses | 47,255 | 45,666 | 42,936 |
Noninterest income | |||
Service charges and fees | 6,210 | 6,013 | 5,230 |
Net gain on sale of mortgage loans | 525 | 647 | 651 |
Earnings on corporate owned life insurance policies | 707 | 726 | 761 |
Debt Securities, Realized Gain (Loss) | 0 | 142 | 245 |
Other | 3,504 | 3,284 | 4,221 |
Total noninterest income | 10,946 | 10,812 | 11,108 |
Noninterest expenses | |||
Compensation and benefits | 22,609 | 21,525 | 19,170 |
Furniture and equipment | 6,182 | 5,523 | 5,275 |
Occupancy | 3,263 | 3,133 | 3,227 |
Net AFS securities impairment loss | 0 | 0 | 770 |
Other | 10,763 | 10,044 | 10,225 |
Total noninterest expenses | 42,817 | 40,225 | 37,897 |
Income before federal income tax expense | 15,384 | 16,253 | 16,147 |
Federal income tax expense | 1,363 | 3,016 | 2,348 |
NET INCOME | $ 14,021 | $ 13,237 | $ 13,799 |
Earnings per share | |||
Basic (in dollars per share) | $ 1.78 | $ 1.69 | $ 1.77 |
Diluted (in dollars per share) | 1.74 | 1.65 | 1.73 |
Cash dividends per basic share (in dollars per share) | $ 1.04 | $ 1.02 | $ 0.98 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 14,021 | $ 13,237 | $ 13,799 | |
Unrealized gains (losses) on AFS securities | ||||
Unrealized gains (losses) arising during the period | (7,229) | 289 | (5,865) | |
Reclassification adjustment for net realized (gains) losses included in net income | 0 | (142) | (245) | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | 0 | 0 | 770 | |
Comprehensive income (loss) before income tax (expense) benefit | (7,229) | 147 | (5,340) | |
Tax effect | [1] | 1,415 | 89 | 1,834 |
Unrealized gains (losses), net of tax | (5,814) | 236 | (3,506) | |
Unrealized Gain (Loss) on Derivatives and Commodity Contracts [Abstract] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent | 33 | 43 | 248 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent | (7) | (15) | (84) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | 26 | 28 | 164 | |
Change in unrecognized pension cost on defined benefit pension plan | ||||
Change in unrecognized pension cost arising during the year | 265 | 11 | 282 | |
Reclassification adjustment for net periodic benefit cost included in net income | 345 | 412 | 238 | |
Net change in unrecognized actuarial loss and prior service cost | 610 | 423 | 520 | |
Tax effect | (128) | (144) | (177) | |
Change in unrealized pension cost, net of tax | 482 | 279 | 343 | |
Other comprehensive income (loss), net of tax | (5,306) | 543 | (2,999) | |
Comprehensive income (loss) | $ 8,715 | $ 13,780 | $ 10,800 | |
[1] | (1) See “Note 16 – Accumulated Other Comprehensive Income (Loss)” in the accompanying notes to consolidated financial statements for tax effect reconcilia |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Debt Securities, Realized Gain (Loss) | $ 0 | $ 142 | $ 245 |
Unrealized Gain (Loss) on Securities | 41 | 0 | 0 |
Net income | 14,021 | 13,237 | 13,799 |
Reconciliation of net income to net cash provided by operating activities: | |||
Undistributed Earnings Of Equity Method And Other Investments | (144) | 40 | 791 |
Provision for loan losses | 978 | 253 | (135) |
Impairment of foreclosed assets | 0 | 2 | 10 |
Depreciation | 2,940 | 2,902 | 2,821 |
Amortization of OMSR | 218 | 340 | 394 |
Amortization of acquisition intangibles | 96 | 119 | 162 |
Net amortization of AFS securities | 1,873 | 2,144 | 2,747 |
AFS securities impairment loss | 0 | 0 | 770 |
Equity Securities, FV-NI, Realized Gain (Loss) | (1) | 0 | 0 |
Net gain on sale of mortgage loans | (525) | (647) | (651) |
Increase in cash value of corporate owned life insurance policies | (707) | (726) | (761) |
Bank Owned Life Insurance Income, From Policy Redemption | 0 | 0 | (469) |
Share-based payment awards under equity compensation plan | 612 | 640 | 573 |
Deferred income tax expense (benefit) | 275 | 2,836 | (282) |
Origination of loans held for sale | (29,242) | (36,276) | (33,089) |
Proceeds from loan sales | 30,969 | 37,179 | 33,111 |
Net changes in operating assets and liabilities which provided (used) cash: | |||
Accrued interest receivable | 135 | (483) | (311) |
Other assets | 113 | 800 | 455 |
Accrued interest payable and other liabilities | 358 | (2,497) | 550 |
Net cash provided by (used in) operating activities | 22,010 | 19,721 | 20,240 |
Activity in AFS securities | |||
Sales | 0 | 12,827 | 35,664 |
Maturities, calls, and principal payments | 80,005 | 97,617 | 137,278 |
Purchases | (35,211) | (106,510) | (79,514) |
Proceeds from Sale of Available-for-sale Securities, Equity | 3,537 | 0 | 0 |
Loan principal (originations) collections, net | (37,958) | (81,188) | (160,294) |
Proceeds from sales of foreclosed assets | 403 | 269 | 486 |
Purchases of premises and equipment | (2,305) | (2,038) | (3,804) |
Proceeds from the redemption of corporate owned life insurance policies | 0 | 0 | 1,353 |
Payments to Acquire Federal Home Loan Bank Stock | (1,350) | (1,800) | (200) |
Payments to Acquire Other Investments | (651) | (932) | (878) |
Net cash provided by (used in) investing activities | 6,470 | (81,755) | (69,909) |
FINANCING ACTIVITIES | |||
Net increase (decrease) in deposits | 27,435 | 70,218 | 30,477 |
Net increase (decrease) in borrowed funds | (4,579) | 7,184 | 27,962 |
Cash dividends paid on common stock | (8,169) | (7,990) | (7,645) |
Proceeds from issuance of common stock | 6,864 | 6,177 | 5,023 |
Common stock repurchased | (7,007) | (5,181) | (4,440) |
Common stock purchased for deferred compensation obligations | (401) | (420) | (383) |
Net cash provided by (used in) financing activities | 14,143 | 69,988 | 50,994 |
Increase (decrease) in cash and cash equivalents | 42,623 | 7,954 | 1,325 |
Cash and cash equivalents at beginning of period | 30,848 | 22,894 | 21,569 |
Cash and cash equivalents at end of period | 73,471 | 30,848 | 22,894 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||
Interest paid | 15,485 | 12,388 | 10,836 |
Federal income taxes paid | 50 | 3,120 | 1,415 |
SUPPLEMENTAL NONCASH INFORMATION: | |||
Transfers of loans to foreclosed assets | $ 467 | $ 331 | $ 306 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies BASIS OF PRESENTATION AND CONSOLIDATION: The consolidated financial statements include the accounts of Isabella Bank Corporation, a financial services holding company, and its wholly owned subsidiary, Isabella Bank. All intercompany balances and accounts have been eliminated in consolidation. References to “the Corporation”, “Isabella”, “we”, “our”, “us”, and similar terms refer to the consolidated entity consisting of Isabella Bank Corporation and its subsidiary. References to Isabella Bank or the “Bank” refers to Isabella Bank Corporation’s subsidiary, Isabella Bank. For additional information, see “ Note 18 – Related Party Transactions .” NATURE OF OPERATIONS: Isabella Bank Corporation is a financial services holding company offering a wide array of financial products and services in several mid-Michigan counties. Our banking subsidiary, Isabella Bank, offers banking services through 30 locations, 24 hour banking services locally and nationally through shared automatic teller machines, 24 hour online banking, mobile banking, and direct deposits to businesses, institutions, individuals and their families. Lending services offered include commercial loans, agricultural loans, residential real estate loans, and consumer loans. Deposit services include interest and noninterest bearing checking accounts, savings accounts, money market accounts, certificates of deposit, direct deposits, cash management services, mobile and internet banking, electronic bill pay services, and automated teller machines. Other related financial products include trust and investment services, safe deposit box rentals, and credit life insurance. Active competition, principally from other commercial banks, savings and loan associations, mortgage brokers, finance companies, credit unions, and retail brokerage firms exists in all of our principal markets. Our results of operations can be significantly affected by changes in interest rates, changes in the local economic environment and changes in regulations. USE OF ESTIMATES: In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting year. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the ALLL , the fair value of AFS investment securities, and the valuation of goodwill and other intangible assets. FAIR VALUE MEASUREMENTS : Fair value refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data. We may choose to measure eligible items at fair value at specified election dates. For assets and liabilities recorded at fair value, it is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements for those financial instruments for which there is an active market. In cases where the market for a financial asset or liability is not active, we include appropriate risk adjustments that market participants would make for nonperformance and liquidity risks when developing fair value measurements. Fair value measurements for assets and liabilities for which limited or no observable market data exists are accordingly based primarily upon estimates, are often calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Investment securities AFS and derivative instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets and liabilities at fair value on a nonrecurring basis, such as mortgage loans AFS , impaired loans, foreclosed assets, OMSR , goodwill, and certain other assets and liabilities. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write downs of individual assets. Fair Value Hierarchy 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. For further discussion of fair value considerations, refer to “ Note 17 – Fair Value .” SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK : Most of our activities are conducted with customers located within the central Michigan area. A significant amount of our outstanding loans are secured by commercial and residential real estate. Other than these types of loans, there is no significant concentration to any other industry or any one customer. CASH AND CASH EQUIVALENTS: For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, federal funds sold, and other deposit accounts. Generally, federal funds sold are for a one day period. We maintain deposit accounts in various financial institutions which generally exceed federally insured limits or are not insured. We do not believe we are exposed to any significant interest, credit or other financial risk as a result of these deposits. AFS SECURITIES: Purchases of investment securities are generally classified as AFS . However, we may elect to classify securities as either held to maturity or trading. Securities classified as AFS debt securities are recorded at fair value, with unrealized gains and losses, net of the effect of deferred income taxes, excluded from earnings and reported in other comprehensive income. Included in AFS securities are auction rate money market preferred securities. These investments, for federal income tax purposes, have no federal income tax impact given the nature of the investments. Auction rate money market preferred securities and preferred stocks are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities. Realized gains and losses on the sale of AFS securities are determined using the specific identification method. AFS securities are reviewed quarterly for possible OTTI . In determining whether an OTTI exists for debt securities, we assert that: (a) we do not have the intent to sell the security; and (b) it is more likely than not we will not have to sell the security before recovery of its cost basis. If these conditions are not met, we recognize an OTTI charge through earnings for the difference between the debt security’s amortized cost basis and its fair value, and such amount is included in noninterest income. For debt securities that do not meet the above criteria, and we do not expect to recover the security’s amortized cost basis, the security is considered other-than-temporarily impaired. For these debt securities, we separate the total impairment into the credit risk loss component and the amount of the loss related to market and other risk factors. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The amount of the total OTTI related to the credit risk is recognized in earnings and is included in noninterest income. The amount of the total OTTI related to other risk factors is recognized as a component of other comprehensive income. For debt securities that have recognized OTTI through earnings, if through subsequent evaluation there is a significant increase in the cash flow expected, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. AFS equity securities are reviewed for OTTI at each reporting date. This evaluation considers a number of factors including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and our ability and intent to hold the securities until fair value recovers. If it is determined that we do not have the ability and intent to hold the securities until recovery or that there are conditions that indicate that a security may not recover in value then the difference between the fair value and the cost of the security is recognized in earnings and is included in noninterest income. LOANS: Loans that we have the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs , the ALLL , and any deferred fees or costs on originated loans. Interest income on loans 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 appropriate yield methods. The accrual of interest on agricultural, commercial and mortgage 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. 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 in nonaccrual 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 . Interest income on loans in nonaccrual status is not recognized until qualifying for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. For impaired loans not classified as nonaccrual , interest income continues to be accrued over the term of the loan based on the principal amount outstanding. ALLOWANCE FOR LOAN AND LEASE 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 allowance when we believe the uncollectability of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. We evaluate the ALLL on a regular basis. Our periodic review of the collectability of loans considers 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 ALLL consists of specific, general, and unallocated components. The specific component relates to loans that are deemed to be impaired. For such loans that are analyzed for specific allowance allocations, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical loss experience adjusted for current conditions. An unallocated component is maintained to cover uncertainties that we believe affect our estimate of probable losses based on qualitative 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. 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; 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 by either 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. LOANS HELD FOR SALE: Mortgage loans held for sale on the secondary market are carried at the lower of cost or fair value as determined by aggregating outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, would be recognized as a component of other noninterest expenses. Mortgage loans held for sale are sold with the mortgage servicing rights retained by us. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. TRANSFERS OF FINANCIAL ASSETS: Transfers of financial assets, including mortgage loans and participation loans, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is determined to be surrendered when 1) the assets have been legally isolated from us, 2) the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and 3) we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Other than servicing, we have no substantive continuing involvement related to these loans. SERVICING: Servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. We have no purchased servicing rights. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on relative fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type, and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If we later determine that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the valuation allowance may be recorded as an increase to income. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. The unpaid principal balance of mortgages serviced for others was $259,481 and $266,789 with capitalized servicing rights of $2,435 and $2,409 at December 31, 2018 and 2017 , respectively. Servicing fee income is recorded for fees earned for servicing loans for others. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. We recorded servicing fee revenue of $651 , $671 , and $696 related to residential mortgage loans serviced for others during 2018 , 2017 , and 2016 , respectively, which is included in other noninterest income. FORECLOSED ASSETS: Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of our carrying amount or fair value less estimated selling costs at the date of transfer, establishing a new cost basis. Any write downs based on the asset’s fair value at the date of acquisition are charged to the ALLL . After foreclosure, property held for sale is carried at the lower of the new cost basis or fair value less costs to sell. Impairment losses on property to be held and used are measured at the amount by which the carrying amount of property exceeds its fair value. Costs relating to holding these assets are expensed as incurred. We periodically perform valuations and any subsequent write downs are recorded as a charge to operations, if necessary, to reduce the carrying value of a property to the lower of our carrying amount or fair value less costs to sell. Foreclosed assets of $355 and $291 as of December 31, 2018 and 2017 , respectively, are included in other assets. PREMISES AND EQUIPMENT: Land is carried at cost. Buildings and equipment are carried at cost, less accumulated depreciation which is computed principally by the straight-line method based upon the estimated useful lives of the related assets, which range from 3 to 40 years. Major improvements are capitalized and appropriately amortized based upon the useful lives of the related assets or the expected terms of the leases, if shorter, using the straight-line method. Maintenance, repairs and minor alterations are charged to current operations as expenditures occur. We annually review these assets to determine whether carrying values have been impaired. EQUITY SECURITIES WITHOUT READILY DETERMINABLE FAIR VALUES: Included in equity securities without readily determinable fair values are our holdings in FHLB stock and FRB stock as well as our ownership interest in Corporate Settlement Solutions, LLC . Our investment in Corporate Settlement Solutions, LLC , a title insurance company, was made in the 1st quarter of 2008. We are not the managing entity of Corporate Settlement Solutions, LLC , and account for our investment in that entity under the equity method of accounting. Equity securities without readily determinable fair values consist of the following holdings as of December 31 : 2018 2017 FHLB Stock $ 15,050 $ 13,700 Corporate Settlement Solutions, LLC 7,565 7,421 FRB Stock 1,999 1,999 Other 334 334 Total $ 24,948 $ 23,454 EQUITY COMPENSATION PLAN: At December 31, 2018 , the Directors Plan had 220,171 shares eligible to be issued to participants, for which the Rabbi Trust held 16,673 shares. We had 226,909 shares to be issued at December 31, 2017 , with 31,769 shares held in the Rabbi Trust . Compensation costs relating to share-based payment transactions are recognized as the services are rendered, with the cost measured based on the fair value of the equity or liability instruments issued (see “ Note 12 – Benefit Plans ”). CORPORATE OWNED LIFE INSURANCE: We have purchased life insurance policies on key members of management, partially for the purpose of funding certain post-retirement benefits. In the event of death of one of these individuals, we would receive a specified cash payment equal to the face value of the policy. Such policies are recorded at their cash surrender value, or the amount that can be realized on the balance sheet date. Increases in cash surrender value in excess of single premiums paid are reported as other noninterest income. As of December 31, 2018 and 2017 , the present value of the post retirement benefits payable by us to the covered insured participants was estimated to be $2,751 and $2,751 , respectively, and is included in accrued interest payable and other liabilities. The expenses associated with these policies totaled $0 , $577 , and $(8) for 2018 , 2017 , and 2016 , respectively. ACQUISITION INTANGIBLES AND GOODWILL: We previously acquired branch facilities and related deposits in business combinations accounted for as a purchase. The acquisitions included amounts related to the valuation of customer deposit relationships (core deposit intangibles). Core deposit intangibles arising from acquisitions are included in goodwill and other intangible assets are being amortized over their estimated lives and evaluated for potential impairment on at least an annual basis. Goodwill, which represents the excess of the purchase price over identifiable assets, is not amortized but is evaluated for impairment on at least an annual basis. Acquisition intangibles and goodwill are typically qualitatively evaluated to determine if it is more likely than not that the carrying balance is impaired. If it is determined that the carrying balance is more likely than not to be impaired, we perform a cash flow valuation to determine the extent of the potential impairment. This valuation method requires a significant degree of our judgment. In the event the projected undiscounted net operating cash flows for these intangible assets are less than the carrying value, the asset is recorded at fair value as determined by the valuation model. OFF BALANCE SHEET CREDIT RELATED FINANCIAL INSTRUMENTS: In the ordinary course of business, we have entered into commitments to extend credit, including commitments under credit card arrangements, commercial lines of credit, home equity lines of credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded only when funded. REVENUE RECOGNITION: 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 investment and trust advisory fees. We recognize revenue, excluding interest income, in accordance with ASC 606, Revenue From Contracts with Customers. Revenue is recognized when our performance obligation has been satisfied according to our contractual obligation. FEDERAL INCOME TAXES: Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax assets or liabilities are determined based on the tax effects of the temporary differences between the book and tax basis on the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Valuation allowances are established, where necessary, to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the year plus or minus the change during the year in deferred tax assets and liabilities. On December 22, 2017, the Tax Cuts and Jobs Act was enacted. The law established a flat corporate federal statutory income tax rate of 21%. In accordance with ASC 740, Income Taxes, the effect of income tax law changes on deferred taxes was recognized as a component of income tax expense related to continuing operations in the period in which the law was enacted. As such, federal income tax expense for the year ended December 31, 2017 reflects the effect of the tax rate change on net deferred tax assets and liabilities (see “ Note 15 – Federal Income Taxes ” and “ Note 16 – Accumulated Other Comprehensive Income (Loss) ”). We analyze our filing positions in the jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. We also treat interest and penalties attributable to income taxes, to the extent they arise, as a component of our noninterest expenses. DEFINED BENEFIT PENSION PLAN: We maintain a noncontributory defined benefit pension plan, which was curtailed effective March 1, 2007. The service cost component of the defined benefit pension plan is included in “compensation and benefits” on the consolidated statements of income and is funded consistent with the requirements of federal laws and regulations. All other costs related to the defined benefit pension plan are included in “other” noninterest expenses on the consolidated statements of income. The current benefit obligation is included in "accrued interest payable and other liabilities" on the consolidated balance sheets. Inherent in the determination of defined benefit pension costs are assumptions concerning future events that will affect the amount and timing of required benefit payments under the plan. These assumptions include demographic assumptions such as mortality, a discount rate used to determine the current benefit obligation and a long-term expected rate of return on plan assets. Net periodic benefit cost includes the interest cost based on the assumed discount rate, an expected return on plan assets based on an actuarially derived market-related value of assets, and amortization of unrecognized net actuarial gains or losses. Actuarial gains and losses result from experience different from that assumed and from changes in assumptions (excluding asset gains and losses not yet reflected in market-related value). Amortization of actuarial gains and losses is included as a component of net periodic defined benefit pension cost. For additional information, see “ Note 12 – Benefit Plans .” MARKETING COSTS: Marketing costs are expensed as incurred (see “ Note 14 – Other Noninterest Expenses ”). RECLASSIFICATIONS: Certain amounts reported in the 2017 and 2016 consolidated financial statements have been reclassified to conform with the 2018 presentation. |
Pending Accounting Standards Up
Pending Accounting Standards Updates | 12 Months Ended |
Dec. 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 was issued and 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 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 year ended December 31, 2018 . ASU No. 2016-01: “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities” and ASU No. 2018-03: “Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10: Recognition and Measurement of Financial Assets and Financial Liabilities” In January 2016, ASU No. 2016-01 was issued and sets 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 was 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 (see “ Note 17 – Fair Value ”). Equity securities are now recorded separately from AFS securities at a fair value which approximates an exit price notion. Adoption of this guidance did not have a significant impact on our operations and its future impact will depend on the fair value of these investments, or any securities acquired subsequent to this guidance, at 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 17 – Fair Value ”. In February 2018, ASU No. 2018-03 was issued and sets forth correction or improvement amendments for specific issues that may arise within the scope of ASU 2016-01. These amendments have been adopted and did not have a significant impact on our operating results or financial statement disclosures. ASU No. 2017-08: “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” In March 2017, ASU No. 2017-08 amended the amortization period for certain purchased callable debt securities held at a premium. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments in this update shorten the amortization period and require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The guidance has been adopted and did not have a significant impact on our operating results or financial statement disclosures. 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 was effective on January 1, 2018 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 reviewed our lease agreements to determine the appropriate treatment under this guidance. These changes will not have a significant impact on our operating results or financial statement disclosures upon adoption. In July 2018, ASU No. 2018-10 was issued and provided codification improvements for various leasing issues. Also during July 2018, ASU No. 2018-11 was issued for targeted improvements related to the transition of the new guidance. In December 2018, ASU No. 2018-20 was issued and provided narrow-scope improvements for lessors. These updates are effective with the implementation of ASU 2016-02. ASU No. 2016-13: “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In June 2016, ASU No. 2016-13 was issued and 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 requires disclosure of 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, and the committee is accountable for timely and accurate adoption of the guidance. A company that has been focused on the ALLL for more than 10 years and serves hundreds of financial institutions has been engaged to provide us with education, advisory, and software solutions exclusively related to the ACL . We expect to run parallel processes during 2019, which will help to ensure we are ready to calculate, review, and report the ACL by the required implementation date. In November 2018, ASU No. 2018-19 was issued and provided codification improvements for two issues: transition and effective date for nonpublic business entities and operating lease receivables. The update is effective with the implementation of ASU 2016-13 and is not expected to impact our operating results or financial statement disclosures. ASU No. 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” In August 2018, ASU No. 2018-13 was issued and provided an updated framework related to fair value disclosures. For entities required to make disclosures about recurring or nonrecurring fair value measurements, the update provides disclosure modifications which include the removal, modification and addition of specific disclosure requirements. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2019 and will impact our financial statement disclosures. ASU No. 2018-14: “Compensation - Retirement Benefits - Defined Pension Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans” In August 2018, ASU No. 2018-14 was issued and provided updated framework related to defined benefit plans. For employers that sponsor defined benefit pension or other postretirement plans, the update provides disclosure modifications which include the removal of six specific requirements, the addition of two specific requirements and clarification to existing requirements. Disclosure additions include 1) the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; 2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. Clarification items relate to 1) the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets; and 2) the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The new authoritative guidance is effective for fiscal years ending after December 15, 2020, with early adoption permitted, and will likely impact our financial statement disclosures. ASU No. 2018-15: “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” In August 2018, ASU No. 2018-15 was issued and provided guidance on the accounting for implementation, setup, and other upfront costs (collectively referred to as implementation costs) for entities that are a customer in a hosting arrangement that is a service contract. The guidance also provides clarification on requirements to capitalize implementation costs and the required accounting for expenses related to capitalization of implementation costs. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The impact on our operating results and financial statement disclosures as a result of this update will depend upon our arrangements and whether or not they meet the requirement to be capitalized. ASU No. 2018-16: “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate of Hedge Accounting Purposes” In October 2018, ASU No. 2018-16 was issued and permits the OIS rate based on SOFR as a U.S. benchmark interest rate. Including the OIS rate based on SOFR as an eligible benchmark interest rate during the early stages of the marketplace transition will facilitate the LIBOR to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. For entities that have not already adopted ASU No. 2017-12 (“Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities”), the amendments in this update are required to be adopted concurrently with the amendments in ASU No. 2017-12. For entities that already have adopted ASU No. 2017-12, the amendments in this update are effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The amendments in this update are not expected to have a significant impact on our operating results or financial statement disclosures. |
AFS Securities
AFS Securities | 12 Months Ended |
Dec. 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 as of December 31 : 2018 Amortized Gross Gross Fair Government sponsored enterprises $ 172 $ — $ 2 $ 170 States and political subdivisions 188,992 2,125 251 190,866 Auction rate money market preferred 3,200 — 646 2,554 Mortgage-backed securities 189,688 76 5,280 184,484 Collateralized mortgage obligations 119,193 71 2,504 116,760 Total $ 501,245 $ 2,272 $ 8,683 $ 494,834 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 December 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 $ — $ 172 $ — $ — $ — $ 172 States and political subdivisions 23,151 81,901 55,923 28,017 — 188,992 Auction rate money market preferred — — — — 3,200 3,200 Mortgage-backed securities — — — — 189,688 189,688 Collateralized mortgage obligations — — — — 119,193 119,193 Total amortized cost $ 23,151 $ 82,073 $ 55,923 $ 28,017 $ 312,081 $ 501,245 Fair value $ 23,189 $ 82,662 $ 56,842 $ 28,343 $ 303,798 $ 494,834 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 investments 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. A summary of the sales activity of AFS securities during the years ended December 31 is displayed in the following table. There were no sales of AFS securities during 2018. 2017 2016 Proceeds from sales of AFS securities $ 12,827 $ 35,664 Gross realized gains (losses) $ 142 $ 245 Applicable income tax expense (benefit) $ 48 $ 83 The following information pertains to AFS securities with gross unrealized losses at December 31 aggregated by investment category and length of time that individual securities have been in a continuous loss position. 2018 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ 2 $ 170 $ 2 States and political subdivisions 83 14,732 168 15,090 251 Auction rate money market preferred — — 646 2,554 646 Mortgage-backed securities 896 43,485 4,384 124,253 5,280 Collateralized mortgage obligations 199 21,886 2,305 87,929 2,504 Total $ 1,178 $ 80,103 $ 7,505 $ 229,996 $ 8,683 Number of securities in an unrealized loss position: 66 102 168 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 Unrealized losses on our AFS securities portfolio are the result of recent increases in intermediate-term and long-term benchmark interest rates and not credit issues. As of December 31, 2018 and 2017 , we conducted an analysis to determine whether any securities currently in an unrealized loss position should be identified as 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 recognize an OTTI of $770 in earnings for the year ended December 31, 2016. Based on internal analysis of the bond as of December 31, 2018 , a change in the estimated valuation was not deemed necessary 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 years ended December 31 : 2018 2017 2016 Balance at beginning of the period $ 770 $ 770 $ — Additions to credit losses for which no previous OTTI was recognized — — 770 Reductions for credit losses realized on securities sold during the period — — — Balance at end of the period $ 770 $ 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 December 31, 2018 and 2017 , with the exception of the one municipal bond discussed above. |
Loans and ALLL
Loans and ALLL | 12 Months Ended |
Dec. 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 appropriate yield methods. 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 short-term 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 in nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. When loans are placed in 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 loans to 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 may be 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, property, or equipment. Personal guarantees are generally required from the owners of closely held corporations, partnerships, and sole proprietorships. In addition, we may 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 consolidated balance sheet. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $30,000. The difference between our outstanding balance 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, our liquidity needs, 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 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. Generally, mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market underwriting system; loans in excess of $1,000 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 probable. Subsequent recoveries, if any, are credited to the ALLL . The ALLL is evaluated on a regular basis for appropriateness. Our periodic review of the collectability of the loans considers 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. 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 Year Ended December 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 (626 ) — (151 ) (324 ) — (1,101 ) Recoveries 328 — 261 209 — 798 Provision for loan losses 1,155 164 (681 ) 72 268 978 December 31, 2018 $ 2,563 $ 775 $ 1,992 $ 857 $ 2,188 $ 8,375 Allowance for Loan Losses Year Ended December 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 (265 ) — (200 ) (306 ) — (771 ) Recoveries 453 — 206 159 — 818 Provision for loan losses (296 ) (273 ) (107 ) 423 506 253 December 31, 2017 $ 1,706 $ 611 $ 2,563 $ 900 $ 1,920 $ 7,700 Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2018 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 443 $ 132 $ 1,363 $ — $ — $ 1,938 Collectively evaluated for impairment 2,120 643 629 857 2,188 6,437 Total $ 2,563 $ 775 $ 1,992 $ 857 $ 2,188 $ 8,375 Loans Individually evaluated for impairment $ 9,899 $ 14,298 $ 6,893 $ 9 $ 31,099 Collectively evaluated for impairment 649,630 112,863 268,450 66,665 1,097,608 Total $ 659,529 $ 127,161 $ 275,343 $ 66,674 $ 1,128,707 Allowance for Loan Losses and Recorded Investment in Loans As of 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 tables display the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit risk ratings as of December 31 : 2018 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ 21 $ 31 $ — $ 52 $ 51 $ 28 $ 79 $ 131 2 - High quality 4,564 13,473 — 18,037 2,729 613 3,342 21,379 3 - High satisfactory 127,573 43,199 11,793 182,565 18,325 7,039 25,364 207,929 4 - Low satisfactory 344,920 84,634 — 429,554 46,636 19,344 65,980 495,534 5 - Special mention 12,847 5,287 — 18,134 10,520 5,624 16,144 34,278 6 - Substandard 7,428 2,002 — 9,430 6,343 4,960 11,303 20,733 7 - Vulnerable 334 1,423 — 1,757 2,716 2,233 4,949 6,706 8 - Doubtful — — — — — — — — 9 - Loss — — — — — — — — Total $ 497,687 $ 150,049 $ 11,793 $ 659,529 $ 87,320 $ 39,841 $ 127,161 $ 786,690 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 — — — — — — — — 9 - Loss — — — — — — — — 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. 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 constitutes 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. • Loan may need to be restructured to improve collateral position or reduce payments. • Collateral or guaranty offers limited protection. • Negative debt service coverage, however the credit is well collateralized and payments are current. 6. SUBSTANDARD – Classified Credit is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. There is a distinct possibility we will implement collection procedures if the loan deficiencies are not corrected. Any commercial loan placed in nonaccrual status will be rated "7" or worse. 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. • Interest non-accrual may be warranted. • 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 in 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 . 9. LOSS – Charge-off Credit is considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification is for charged-off loans but does not mean that the asset has absolutely no recovery or salvage value. These loans are further characterized by: • Liquidation or reorganization under Bankruptcy, with poor prospects of collection. • Fraudulently overstated assets and/or earnings. • Collateral has marginal or no value. • Debtor cannot be located. • Over 120 days delinquent. 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 December 31 : 2018 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 60 $ — $ — $ 334 $ 394 $ 497,293 $ 497,687 Commercial other 277 628 — 1,423 2,328 147,721 150,049 Advances to mortgage brokers — — — — — 11,793 11,793 Total commercial 337 628 — 1,757 2,722 656,807 659,529 Agricultural Agricultural real estate 428 — — 2,716 3,144 84,176 87,320 Agricultural other — — — 2,233 2,233 37,608 39,841 Total agricultural 428 — — 4,949 5,377 121,784 127,161 Residential real estate Senior liens 2,254 203 113 554 3,124 233,438 236,562 Junior liens 2 6 — — 8 6,001 6,009 Home equity lines of credit 76 — — — 76 32,696 32,772 Total residential real estate 2,332 209 113 554 3,208 272,135 275,343 Consumer Secured 95 — — — 95 62,721 62,816 Unsecured 10 — — — 10 3,848 3,858 Total consumer 105 — — — 105 66,569 66,674 Total $ 3,202 $ 837 $ 113 $ 7,260 $ 11,412 $ 1,117,295 $ 1,128,707 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, 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. Large groups of smaller-balance, homogeneous residential real estate and consumer loans are collectively evaluated for impairment 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 summarizes information pertaining to impaired loans as of, and for the years ended, December 31 : 2018 Recorded Balance Unpaid Principal Balance Valuation Allowance Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 3,969 $ 4,211 $ 437 $ 4,589 $ 129 Commercial other 12 12 6 1,040 55 Agricultural real estate 392 392 112 606 50 Agricultural other 44 44 20 168 46 Residential real estate senior liens 6,834 7,289 1,361 7,545 126 Residential real estate junior liens 12 12 2 25 — Home equity lines of credit — — — — — Total impaired loans with a valuation allowance 11,263 11,960 1,938 13,973 406 Impaired loans without a valuation allowance Commercial real estate 2,794 2,947 2,728 74 Commercial other 3,124 3,231 1,533 43 Agricultural real estate 7,618 7,618 7,559 585 Agricultural other 6,244 6,287 4,636 279 Home equity lines of credit 47 347 64 5 Consumer secured 9 9 12 — Total impaired loans without a valuation allowance 19,836 20,439 16,532 986 Impaired loans Commercial 9,899 10,401 443 9,890 301 Agricultural 14,298 14,341 132 12,969 960 Residential real estate 6,893 7,648 1,363 7,634 131 Consumer 9 9 — 12 — Total impaired loans $ 31,099 $ 32,399 $ 1,938 $ 30,505 $ 1,392 2017 Recorded Balance Unpaid Principal Balance Valuation Allowance Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 4,089 $ 4,378 $ 626 $ 4,608 $ 277 Commercial other 995 995 24 1,427 93 Agricultural real estate — — — — — Agricultural other — — — 17 — Residential real estate senior liens 7,816 8,459 1,473 8,296 323 Residential real estate junior liens 44 44 7 71 2 Home equity lines of credit — — — 23 — Total impaired loans with a valuation allowance 12,944 13,876 2,130 14,442 695 Impaired loans without a valuation allowance Commercial real estate 1,791 1,865 1,585 111 Commercial other 1,224 1,224 246 23 Agricultural real estate 7,913 7,913 6,421 307 Agricultural other 2,685 2,685 2,494 126 Home equity lines of credit 79 379 106 19 Consumer secured 17 17 21 — Total impaired loans without a valuation allowance 13,709 14,083 10,873 586 Impaired loans Commercial 8,099 8,462 650 7,866 504 Agricultural 10,598 10,598 — 8,932 433 Residential real estate 7,939 8,882 1,480 8,496 344 Consumer 17 17 — 21 — Total impaired loans $ 26,653 $ 27,959 $ 2,130 $ 25,315 $ 1,281 We had committed to advance $542 and $472 in connection with impaired loans, which includes TDRs , as of December 31, 2018 and 2017 , respectively. Troubled Debt Restructurings A loan modification is considered to be a TDR 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: 1. Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. 2. Extending the amortization period beyond typical lending guidelines for loans with similar risk characteristics. 3. Agreeing to an interest only payment structure and delaying principal payments. 4. Forgiving principal. 5. Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: 1. The borrower is currently in default on any of their debt. 2. The borrower would likely default on any of their debt if the concession is not granted. 3. The borrower’s cash flow is insufficient to service all of their debt if the concession is not granted. 4. The borrower has declared, or is in the process of declaring, bankruptcy. 5. 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 in the years ended December 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 4 $ 1,360 $ 1,360 6 $ 1,702 $ 1,702 Agricultural other 31 6,318 6,295 15 6,092 6,092 Residential real estate Senior liens 10 701 701 6 464 464 Junior liens — — — 1 8 8 Total residential real estate 10 701 701 7 472 472 Total 45 $ 8,379 $ 8,356 28 $ 8,266 $ 8,266 The following tables summarize concessions we granted to borrowers in financial difficulty in the years ended December 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 3 $ 1,186 — $ — 6 $ 1,702 Agricultural other 18 2,625 13 3,693 11 1,972 4 4,120 Residential real estate Senior liens 3 203 7 498 — — 6 464 Junior liens — — — — 1 8 — — Total residential real estate 3 203 7 498 1 8 6 464 Total 22 $ 3,002 23 $ 5,377 12 $ 1,980 16 $ 6,286 We did not restructure any loans by forgiving principal or accrued interest during 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 years ended December 31, 2018 and 2017 , which were modified within 12 months prior to the default date. The following is a summary of TDR loan balances as of December 31 : 2018 2017 TDRs $ 26,951 $ 26,197 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment A summary of premises and equipment at December 31 follows: 2018 2017 Land $ 6,336 $ 6,336 Buildings and improvements 30,100 29,661 Furniture and equipment 34,825 33,466 Total 71,261 69,463 Less: accumulated depreciation 43,446 41,013 Premises and equipment, net $ 27,815 $ 28,450 Depreciation expense amounted to $2,940 , $2,902 , and $2,821 in 2018 , 2017 , and 2016 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying amount of goodwill was $48,282 at December 31, 2018 and 2017 . Identifiable intangible assets were as follows as of December 31 : 2018 Gross Accumulated Net Core deposit premium resulting from acquisitions $ 5,579 $ 5,410 $ 169 2017 Gross Accumulated Net Core deposit premium resulting from acquisitions $ 5,579 $ 5,314 $ 265 Amortization expense associated with identifiable intangible assets was $96 , $119 , and $162 in 2018 , 2017 , and 2016 , respectively. Estimated amortization expense associated with identifiable intangibles for each of the next five years succeeding December 31, 2018 , and thereafter is as follows: Estimated Amortization Expense 2019 $ 71 2020 48 2021 29 2022 15 2023 2 Thereafter 4 Total $ 169 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds consist of the following obligations at December 31 : 2018 2017 Amount Rate Amount Rate FHLB advances $ 300,000 2.20 % $ 290,000 1.94 % Securities sold under agreements to repurchase without stated maturity dates 40,299 0.11 % 54,878 0.12 % Total $ 340,299 1.95 % $ 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 December 31 : 2018 2017 Amount Rate Amount Rate Fixed rate due 2018 $ — — % $ 70,000 1.96 % Fixed rate due 2019 100,000 1.94 % 85,000 1.87 % Fixed rate due 2020 55,000 2.18 % 35,000 1.80 % Fixed rate due 2021 50,000 1.91 % 50,000 1.91 % Variable rate due 2021 (1) 10,000 2.93 % 10,000 1.72 % Fixed rate due 2022 20,000 1.97 % 20,000 1.97 % Fixed rate due 2023 35,000 3.17 % 10,000 3.90 % Fixed rate due 2024 20,000 2.96 % — — % Fixed rate due 2026 10,000 1.17 % 10,000 1.17 % Total $ 300,000 2.20 % $ 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 $40,316 and $54,898 at December 31, 2018 and 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 tables provide a summary of securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount advances at December 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 $ 63,133 $ 38,036 0.10 % $ 58,464 $ 55,206 0.13 % Federal funds purchased 16,200 3,741 1.78 % 5,965 2,726 1.15 % FRB Discount Window — — — % — 43 1.54 % We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at December 31 : 2018 2017 Pledged to secure borrowed funds $ 431,430 $ 410,988 Pledged to secure repurchase agreements 40,316 54,898 Pledged for public deposits and for other purposes necessary or required by law 58,107 27,976 Total $ 529,853 $ 493,862 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at December 31 : 2018 2017 States and political subdivisions $ 23,268 $ 7,332 Mortgage-backed securities 10,736 13,199 Collateralized mortgage obligations 6,312 34,367 Total $ 40,316 $ 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 an adequate level of AFS securities available to pledge to satisfy required collateral. As of December 31, 2018 , we had the ability to borrow up to an additional $150,162 , based on assets pledged as collateral. We had no investment securities that were 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 December 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 2.3 $ 10,000 Other Assets $ 323 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 the use of counterparty limits. We do not anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits Scheduled maturities of time deposits for the next five years, and thereafter, are as follows: Scheduled Maturities of Time Deposits 2019 $ 232,349 2020 56,051 2021 65,036 2022 41,502 2023 31,714 Thereafter 6,968 Total $ 433,620 Interest expense on time deposits greater than $250 was $1,280 in 2018 , $825 in 2017 and $678 in 2016 . |
Off-Balance-Sheet Activities
Off-Balance-Sheet Activities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance-Sheet Activities | Off-Balance-Sheet Activities, Commitments and Other Matters Credit-Related Financial Instruments We are party to credit related financial instruments with off-balance-sheet risk. These financial instruments are entered into during the normal course of business to meet the financing needs of our customers. These financial instruments, which include commitments to extend credit and standby letters of credit, involve, to varying degrees, elements of credit and IRR in excess of the amounts recognized in the consolidated balance sheets. The contract or notional amounts of these instruments reflect the extent of involvement we have in a particular class of financial instrument. The following table summarizes our credit related financial instruments with off-balance-sheet risk as of December 31 : 2018 2017 Unfunded commitments under lines of credit $ 199,652 $ 184,317 Commercial and standby letters of credit 1,723 1,622 Commitments to grant loans 13,225 24,782 Total $ 214,600 $ 210,721 Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers. These commitments may expire without being drawn upon and do not necessarily represent future cash requirements. Advances to mortgage brokers are also included in unfunded commitments under lines of credit. The unfunded commitment is the difference between our outstanding balances and maximum outstanding aggregate amount. Commitments to grant loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained, if we deem necessary, is based on management's credit evaluation of the customer. Commitments to grant loans include residential mortgage loans that may be committed to be sold to the secondary market. Commercial and standby letters of credit are conditional commitments we issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support private borrowing arrangements, including commercial paper, bond financing, and similar transactions. These commitments to extend credit and letters of credit generally mature within one year . The credit risk involved in these transactions is essentially the same as that involved in extending loans to customers. We evaluate each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if we deem necessary upon the extension of credit, is based on our credit evaluation of the borrower. While we consider standby letters of credit to be guarantees, the amount of the liability related to such guarantees on the commitment date is not significant and a liability related to such guarantees is not recorded on the consolidated balance sheets. Our exposure to credit-related loss in the event of nonperformance by the counter parties to the financial instruments for commitments to extend credit and standby letters of credit could be up to the contractual notional amount of those instruments. We use the same credit policies in deciding to make these commitments as we do for extending loans to customers. No significant losses are anticipated as a result of these commitments. Derivative Loan Commitments Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. We enter into commitments to fund residential mortgage loans at specific times in the future, with the intention that these loans will subsequently be sold in the secondary market. A mortgage loan commitment binds us to lend funds to a potential borrower at a specified interest rate within a specified period of time, generally up to 60 days after inception of the rate lock. Outstanding derivative loan commitments expose us to the risk that the price of the loans arising from the exercise of the loan commitment might decline from the inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increase. The notional amount of undesignated interest rate lock commitments was $1,088 and $805 at December 31, 2018 and 2017 , respectively. Forward Loan Sale Commitments To protect against the price risk inherent in derivative loan commitments, we utilize both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loan that would result from the exercise of the derivative loan commitments. With a “mandatory delivery” contract, we commit to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If we fail to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, we are obligated to pay a “pair-off” fee, based on then current market prices, to the investor to compensate the investor for the shortfall. With a “best efforts” contract, we commit to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g. on the same day the lender commits to lend funds to a potential borrower). We expect that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. The notional amount of undesignated forward loan sale commitments was $1,089 and $1,843 at December 31, 2018 and 2017 , respectively. The fair values of the rate lock loan commitments related to the origination of mortgage loans that will be held for sale and the forward loan sale commitments are deemed insignificant by management and, accordingly, are not recorded in our consolidated financial statements . Other Matters Banking regulations require us to maintain cash reserve balances in currency or deposits with the FRB . At December 31, 2018 and 2017 , the reserve balances amounted to $1,220 and $1,458 , respectively. Banking regulations limit the transfer of assets in the form of dividends, loans, or advances from the Bank to the Corporation. At December 31, 2018 , substantially all of the Bank’s assets were restricted from transfer to the Corporation in the form of loans or advances. Bank dividends are the principal source of funds for the Corporation. Payment of dividends without regulatory approval is limited to the current year’s retained net income plus retained net income for the preceding two years, less any required transfers to common stock. At January 1, 2019 , the amount available to the Corporation for dividends from the Bank, without regulatory approval, was approximately $18,900 . |
Commitments and Other Matters
Commitments and Other Matters | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Other Matters | Off-Balance-Sheet Activities, Commitments and Other Matters Credit-Related Financial Instruments We are party to credit related financial instruments with off-balance-sheet risk. These financial instruments are entered into during the normal course of business to meet the financing needs of our customers. These financial instruments, which include commitments to extend credit and standby letters of credit, involve, to varying degrees, elements of credit and IRR in excess of the amounts recognized in the consolidated balance sheets. The contract or notional amounts of these instruments reflect the extent of involvement we have in a particular class of financial instrument. The following table summarizes our credit related financial instruments with off-balance-sheet risk as of December 31 : 2018 2017 Unfunded commitments under lines of credit $ 199,652 $ 184,317 Commercial and standby letters of credit 1,723 1,622 Commitments to grant loans 13,225 24,782 Total $ 214,600 $ 210,721 Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers. These commitments may expire without being drawn upon and do not necessarily represent future cash requirements. Advances to mortgage brokers are also included in unfunded commitments under lines of credit. The unfunded commitment is the difference between our outstanding balances and maximum outstanding aggregate amount. Commitments to grant loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained, if we deem necessary, is based on management's credit evaluation of the customer. Commitments to grant loans include residential mortgage loans that may be committed to be sold to the secondary market. Commercial and standby letters of credit are conditional commitments we issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support private borrowing arrangements, including commercial paper, bond financing, and similar transactions. These commitments to extend credit and letters of credit generally mature within one year . The credit risk involved in these transactions is essentially the same as that involved in extending loans to customers. We evaluate each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if we deem necessary upon the extension of credit, is based on our credit evaluation of the borrower. While we consider standby letters of credit to be guarantees, the amount of the liability related to such guarantees on the commitment date is not significant and a liability related to such guarantees is not recorded on the consolidated balance sheets. Our exposure to credit-related loss in the event of nonperformance by the counter parties to the financial instruments for commitments to extend credit and standby letters of credit could be up to the contractual notional amount of those instruments. We use the same credit policies in deciding to make these commitments as we do for extending loans to customers. No significant losses are anticipated as a result of these commitments. Derivative Loan Commitments Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. We enter into commitments to fund residential mortgage loans at specific times in the future, with the intention that these loans will subsequently be sold in the secondary market. A mortgage loan commitment binds us to lend funds to a potential borrower at a specified interest rate within a specified period of time, generally up to 60 days after inception of the rate lock. Outstanding derivative loan commitments expose us to the risk that the price of the loans arising from the exercise of the loan commitment might decline from the inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increase. The notional amount of undesignated interest rate lock commitments was $1,088 and $805 at December 31, 2018 and 2017 , respectively. Forward Loan Sale Commitments To protect against the price risk inherent in derivative loan commitments, we utilize both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loan that would result from the exercise of the derivative loan commitments. With a “mandatory delivery” contract, we commit to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If we fail to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, we are obligated to pay a “pair-off” fee, based on then current market prices, to the investor to compensate the investor for the shortfall. With a “best efforts” contract, we commit to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g. on the same day the lender commits to lend funds to a potential borrower). We expect that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. The notional amount of undesignated forward loan sale commitments was $1,089 and $1,843 at December 31, 2018 and 2017 , respectively. The fair values of the rate lock loan commitments related to the origination of mortgage loans that will be held for sale and the forward loan sale commitments are deemed insignificant by management and, accordingly, are not recorded in our consolidated financial statements . Other Matters Banking regulations require us to maintain cash reserve balances in currency or deposits with the FRB . At December 31, 2018 and 2017 , the reserve balances amounted to $1,220 and $1,458 , respectively. Banking regulations limit the transfer of assets in the form of dividends, loans, or advances from the Bank to the Corporation. At December 31, 2018 , substantially all of the Bank’s assets were restricted from transfer to the Corporation in the form of loans or advances. Bank dividends are the principal source of funds for the Corporation. Payment of dividends without regulatory approval is limited to the current year’s retained net income plus retained net income for the preceding two years, less any required transfers to common stock. At January 1, 2019 , the amount available to the Corporation for dividends from the Bank, without regulatory approval, was approximately $18,900 . |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Minimum Regulatory Capital Requirements | Minimum Regulatory Capital Requirements The Corporation (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the FRB and the FDIC . Failure to meet minimum capital requirements can initiate mandatory and possibly additional discretionary actions by the FRB and the FDIC that, if undertaken, could have a material effect on our financial statements. Under regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that include quantitative measures of assets, liabilities, capital, and certain off-balance-sheet items, as calculated under regulatory accounting standards. Our capital amounts and classifications are also subject to qualitative judgments by the FRB and the FDIC about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the following table) of total capital, tier 1 capital, and common equity tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and tier 1 capital to average assets (as defined). We believe, as of December 31, 2018 and 2017 , that we met all capital adequacy requirements. The FRB has established minimum risk-based capital guidelines. Pursuant to these guidelines, a framework has been established that assigns risk weights to each category of on and off-balance-sheet items to arrive at risk adjusted total assets. Regulatory capital is divided by the risk adjusted assets with the resulting ratio compared to the minimum standard to determine whether a corporation has adequate capital. On July 2, 2013, the FRB published revised BASEL III Capital standards for banks. The final rules redefine what is included or deducted from equity capital, changes risk weighting for certain on and off-balance sheet assets, increases the minimum required equity capital to be considered well capitalized, and introduces a capital cushion buffer. The rules, which are being gradually phased in between 2015 and 2019, are not expected to have a material impact on the Corporation but will require us to hold more capital than we have historically. Effective January 1, 2015, the minimum standard for primary, or tier 1, capital increased from 4.00% to 6.00% . The minimum standard for total capital remained at 8.00% . Also effective January 1, 2015 was the new common equity tier 1 capital ratio which had a minimum requirement of 4.50% . Beginning on January 1, 2016 the capital conservation buffer went into effect which will further increase the required levels each year through 2019. As of December 31, 2018 and 2017 , the most recent notifications from the FRB and the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain total risk-based, Tier 1 risk-based, Common Equity Tier 1, and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notifications that we believe have changed our categories. Our actual capital amounts and ratios are also presented in the table. Actual Minimum Minimum To Be Well Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Common equity Tier 1 capital to risk weighted assets Isabella Bank $ 143,429 11.75 % $ 48,832 6.375 % $ 73,248 6.50 % Consolidated 154,705 12.58 % 49,212 6.375 % N/A N/A Tier 1 capital to risk weighted assets Isabella Bank 143,429 11.75 % 48,832 7.875 % 73,248 8.00 % Consolidated 154,705 12.58 % 49,212 7.875 % N/A N/A Total capital to risk weighted assets Isabella Bank 151,804 12.43 % 97,664 9.875 % 122,080 10.00 % Consolidated 163,080 13.26 % 98,423 9.875 % N/A N/A Tier 1 capital to average assets Isabella Bank 143,429 8.07 % 71,085 4.00 % 88,856 5.00 % Consolidated 154,705 8.72 % 70,996 4.00 % N/A N/A Actual Minimum Minimum To Be Well Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Common equity Tier 1 capital to risk weighted assets Isabella Bank $ 139,897 11.56 % $ 48,404 5.750 % $ 72,605 6.50 % Consolidated 149,013 12.23 % 48,744 5.750 % N/A N/A Tier 1 capital to risk weighted assets Isabella Bank 139,897 11.56 % 48,404 7.250 % 72,605 8.00 % Consolidated 149,013 12.23 % 48,744 7.250 % N/A N/A Total capital to risk weighted assets Isabella Bank 147,597 12.20 % 96,807 9.250 % 121,009 10.00 % Consolidated 156,713 12.86 % 97,488 9.250 % N/A N/A Tier 1 capital to average assets Isabella Bank 139,897 8.07 % 69,373 4.000 % 86,717 5.00 % Consolidated 149,013 8.54 % 69,827 4.000 % N/A N/A |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 12 Months Ended |
Dec. 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 includes 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 , see " Note 12 – Benefit Plans ." Earnings per common share have been computed based on the following: 2018 2017 2016 Average number of common shares outstanding for basic calculation 7,872,077 7,841,451 7,813,739 Average potential effect of common shares in the Directors Plan (1) 200,771 192,286 185,611 Average number of common shares outstanding used to calculate diluted earnings per common share 8,072,848 8,033,737 7,999,350 Net income $ 14,021 $ 13,237 $ 13,799 Earnings per common share Basic $ 1.78 $ 1.69 $ 1.77 Diluted $ 1.74 $ 1.65 $ 1.73 (1) Exclusive of shares held in the Rabbi Trust |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans 401(k) Plan We have a 401(k) plan in which substantially all employees are eligible to participate. Employees may contribute up to 100% of their compensation subject to certain limits based on federal tax laws. The plan was amended in 2013 to provide a matching safe harbor contribution for all eligible employees equal to 100% of the first 5.0% of an employee's compensation contributed to the Plan during the year. Employees are 100% vested in the safe harbor matching contributions. For 2018 , 2017 and 2016 , expenses attributable to the Plan were $743 , $713 , and $686 , respectively. Defined Benefit Pension Plan We maintain a noncontributory defined benefit pension plan, which was curtailed effective March 1, 2007 . As a result of the curtailment, future salary increases are no longer considered (the projected benefit obligation is equal to the accumulated benefit obligation), and plan benefits are based on years of service and the individual employee’s five highest consecutive years of compensation out of the last ten years of service through March 1, 2007 . Changes in the projected benefit obligation and plan assets during each year, the funded status of the plan, and the net amount recognized in our consolidated balance sheets using an actuarial measurement date of December 31 , are summarized as follows during the years ended December 31 : 2018 2017 Change in benefit obligation Benefit obligation, January 1 $ 11,381 $ 11,448 Interest cost 388 444 Actuarial (gain) loss (1,194 ) 578 Benefits paid, including plan expenses (1,163 ) (1,089 ) Benefit obligation, December 31 9,412 11,381 Change in plan assets Fair value of plan assets, January 1 9,469 9,325 Investment (loss) return (541 ) 1,033 Contributions — 200 Benefits paid, including plan expenses (1,163 ) (1,089 ) Fair value of plan assets, December 31 7,765 9,469 Deficiency in funded status at December 31, included on the consolidated balance sheets in accrued interest payable and other liabilities $ (1,647 ) $ (1,912 ) 2018 2017 Change in accrued pension benefit costs Accrued benefit cost at January 1 $ (1,912 ) $ (2,123 ) Contributions — 200 Net periodic benefit cost (345 ) (412 ) Net change in unrecognized actuarial loss and prior service cost 610 423 Accrued pension benefit cost at December 31 $ (1,647 ) $ (1,912 ) We have recorded the funded status of the plan in our consolidated balance sheets. We adjust the underfunded status in a liability account to reflect the current funded status of the plan. Any gains or losses that arise during the year but are not recognized as components of net periodic benefit cost are recognized as a component of other comprehensive income (loss). The components of net periodic benefit cost are as follows for the years ended December 31 : 2018 2017 2016 Interest cost on benefit obligation $ 388 $ 444 $ 485 Expected return on plan assets (554 ) (546 ) (560 ) Amortization of unrecognized actuarial net loss 242 279 313 Settlement loss 269 235 — Net periodic benefit cost $ 345 $ 412 $ 238 During 2018 , 2017 and 2016 , additional settlement losses of $269 , $235 and $0 were recognized in connection with lump-sum benefit distributions. Many plan participants elect to receive their retirement benefit payments in the form of lump-sum settlements. Pro rata settlement losses, which can occasionally occur as a result of these lump-sum distributions, are recognized only in years when the total of such distributions exceed the sum of the service and interest expense components of net periodic benefit cost. Accumulated other comprehensive income at December 31, 2018 includes net unrecognized pension costs before income taxes of $3,470 , of which $140 is expected to be amortized into benefit cost during 2019 . The actuarial assumptions used in determining the benefit obligation are as follows for the years ended December 31 : 2018 2017 2016 Discount rate 4.11 % 3.48 % 3.96 % Expected long-term rate of return on plan assets 6.00 % 6.00 % 6.00 % The actuarial weighted average assumptions used in determining the net periodic pension costs are as follows for the years ended December 31 : 2018 2017 2016 Discount rate 3.48 % 3.96 % 4.13 % Expected long-term rate of return on plan assets 6.00 % 6.00 % 6.00 % As a result of the curtailment of the Plan, there is no rate of compensation increase considered in the above assumptions. The expected long-term rate of return is an estimate of anticipated future long-term rates of return on plan assets as measured on a market value basis. Factors considered in arriving at this assumption include: • Historical long-term rates of return for broad asset classes. • Actual past rates of return achieved by the plan. • The general mix of assets held by the plan. • The stated investment policy for the plan. The selected rate of return is net of anticipated investment related expenses. Pension Plan Assets Our overall investment strategy is to moderately grow the portfolio by investing 50% of the portfolio in equity securities and 50% in fixed income securities. This strategy is designed to generate a long-term rate of return of 6.00% . Equity securities primarily consist of the S&P 500 Index with a smaller allocation to the Small Cap and International Index. Fixed income securities are invested in the Bond Market Index. The Plan has appropriate assets invested in short-term investments to meet near term benefit payments. The asset mix and the sector weighting of the investments are determined by our pension committee, which is comprised of members of our management. To manage the Plan, we retain a third party investment advisor to conduct consultations. We review the performance of the advisor at least annually. The fair values of our pension plan assets by asset category were as follows as of December 31 : 2018 2017 Total (Level 2) Total (Level 2) Short-term investments $ 98 $ 98 $ 300 $ 300 Common collective trusts Fixed income 2,924 2,924 3,815 3,815 Equity investments 4,743 4,743 5,354 5,354 Total $ 7,765 $ 7,765 $ 9,469 $ 9,469 The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2018 and 2017 : • Short-term investments: Shares of a money market portfolio valued at amortized cost, which approximates fair value. • Common collective trusts: These investments are public investment securities valued using the NAV provided by a third party investment advisor. The NAV is quoted on a private market that is not active; however, the unit price is based on underlying investments which are traded on an active market. We anticipate contributions to the Plan in 2019 to approximate net contribution costs. The components of projected net periodic benefit cost are as follows for the year ending: December 31, 2019 Interest cost on projected benefit obligation $ 378 Expected return on plan assets (452 ) Amortization of unrecognized actuarial net loss 214 Net periodic benefit cost $ 140 Estimated future benefit payments are as follows for the next ten years: Estimated Benefit Payments 2019 $ 450 2020 486 2021 479 2022 481 2023 481 2024 - 2028 2,540 Directors Plan Pursuant to the terms of the Directors Plan, our directors are required to invest at least 25% of their board fees in our common stock. These stock investments can be made either through deferred fees or through the purchase of shares through the Dividend Reinvestment Plan. Deferred fees, under the Directors Plan, are converted on a quarterly basis into stock units of our common stock based on the fair value of a share of our common stock as of the relevant valuation date. Stock units credited to a participant’s account are eligible for stock and cash dividends as declared. Dividend Reinvestment Plan shares are purchased pursuant to the Dividend Reinvestment Plan. Distribution of deferred fees from the Directors Plan occurs when the participant retires from the Board or upon the occurrence of certain other events. The participant is eligible to receive a distribution in the form of shares of our common stock of all of the stock units that are then in his or her account, and any unconverted cash will be converted to and rounded up to whole shares of stock and distributed, as well. The Directors Plan does not allow for cash settlement, and therefore, such share-based payment awards qualify for classification as equity. We may use authorized but unissued shares or purchase shares of common stock on the open market to meet our obligations under the Directors Plan. We maintain the Rabbi Trust to fund the Directors Plan . The Rabbi Trust is an irrevocable grantor trust to which we may contribute assets for the limited purpose of funding a nonqualified deferred compensation plan. Although we may not reach the assets of the Rabbi Trust for any purpose other than meeting our obligations under the Directors Plan , the assets of the Rabbi Trust remain subject to the claims of our creditors and are included in the consolidated financial statements . We may contribute cash or common stock to the Rabbi Trust from time-to-time for the sole purpose of funding the Directors Plan . The Rabbi Trust will use any cash that we contributed to purchase shares of our common stock on the open market through our Investment and Trust Services department. Shares held in the Rabbi Trust are included in the calculation of earnings per share. The components of shares eligible to be issued under the Directors Plan were as follows as of December 31 : 2018 2017 Eligible Market Eligible Market Unissued 203,498 $ 4,591 195,140 $ 5,513 Shares held in Rabbi Trust 16,673 376 31,769 897 Total 220,171 $ 4,967 226,909 $ 6,410 Stock Award Incentive Plan We maintain an equity incentive plan for the purpose of promoting growth and profitability, as well as attracting and retaining executive officers of outstanding competence, through ownership of equity. Stock may be granted to specified individuals subject to certain conditions, and transfer of shares granted under the plan is restricted. Expenses related to this plan for 2018 , 2017 and 2016 were $45 , $38 , and $70 , respectively. Other Employee Benefit Plans We maintain nonqualified defined contribution retirement plans to provide supplemental retirement benefits to specified participants. Expenses related to these programs for 2018 , 2017 and 2016 were $356 , $473 , and $440 , respectively. Expenses are recognized over the participants’ expected years of service. We maintained a non-leveraged ESOP which was frozen to new participants on December 31, 2006. Contributions to the plan were discretionary and were approved by the Board of Directors and recorded as compensation expense. We made no contributions to the ESOP in 2018 , 2017 and 2016 . Compensation costs related to the plan for 2018 , 2017 and 2016 were $21 , $23 , and $33 , respectively. Total allocated shares outstanding related to the ESOP at December 31, 2018 , 2017 , and 2016 were 0 , 166,833 , and 204,669 , respectively. Such shares are included in the computation of dividends and earnings per share in each of the respective years. On December 21, 2016, the Board approved the termination of the ESOP effective December 31, 2016. Actual dissolution of the ESOP occurred in 2018. We maintain a self-funded medical plan under which we are responsible for the first $ 75 per year of claims made by a covered family. Expenses are accrued based on estimates of the aggregate liability for claims incurred and our experience. Expenses were $2,695 in 2018 , $2,324 in 2017 and $2,150 in 2016 . |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 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 investment and trust advisory fees. We recognize revenue, excluding interest income, in accordance with 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 years ended December 31, 2018 , 2017 and 2016 we satisfied our performance obligations pursuant to contracts with customers. As a result, we have not recorded any contract assets or liabilities. We estimate no returns or allowances for the years ended December 31, 2018 , 2017 and 2016 . 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 years ended December 31 : 2018 2017 2016 Debit card income $ 2,487 $ 2,435 $ 2,131 Trust service fees 2,134 1,928 2,089 Investment advisory fees 702 679 616 Service charges and fees related to deposit accounts 332 343 349 Total $ 5,655 $ 5,385 $ 5,185 A large portion of our revenue consists of interest income which is not subject to the requirements set forth in ASC 606. 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. |
Disaggregation of Revenue [Table Text Block] | A summary of revenue recognized for each major category of contracts with customers, subject to ASC 606, is as follows for the years ended December 31 : 2018 2017 2016 Debit card income $ 2,487 $ 2,435 $ 2,131 Trust service fees 2,134 1,928 2,089 Investment advisory fees 702 679 616 Service charges and fees related to deposit accounts 332 343 349 Total $ 5,655 $ 5,385 $ 5,185 |
Other Noninterest Expenses
Other Noninterest Expenses | 12 Months Ended |
Dec. 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 years ended December 31 : 2018 2017 2016 Audit, consulting, and legal fees $ 2,263 $ 2,043 $ 1,952 ATM and debit card fees 1,036 1,181 887 Loan underwriting fees 1,016 556 535 Director fees 858 856 851 FDIC insurance premiums 726 642 719 Donations and community relations 710 657 582 Marketing costs 596 568 586 OTTI on AFS securities — — 770 All other 3,558 3,541 3,343 Total other $ 10,763 $ 10,044 $ 10,225 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Federal Income Taxes Components of the consolidated provision for federal income taxes are as follows for the years ended December 31 : 2018 2017 2016 Currently payable $ 1,088 $ 180 $ 2,630 Deferred expense (benefit) 275 2,836 (282 ) Income tax expense $ 1,363 $ 3,016 $ 2,348 In 2017 we implemented tax strategies which resulted in changes to our federal income tax components, as illustrated above. These strategies, which were primarily related to premises and equipment, significantly decreased our taxes currently payable and led to an increase in our level of alternative minimum tax. Changes in these deferred tax components are displayed in the deferred tax assets and liabilities table on the following page. On December 22, 2017, the Tax Cuts and Jobs Act was enacted. The law established a flat corporate federal statutory income tax rate of 21% and eliminated the corporate alternative minimum tax which can be carried forward and used to reduce future income tax. The tax law provided for a wide array of changes, only some of which had a direct impact on our federal income tax expense. Some of these changes included, but are not limited to, the following items: limits to the deduction for net interest expense; immediate expense (for tax purposes) for certain qualified depreciable assets; elimination or reduction of certain deductions related to meals and entertainment expenses; and limits to the deductibility of deposit insurance premiums. In accordance with ASC 740, Income Taxes, the effect of income tax law changes on deferred taxes are recognized as a component of income tax expense related to continuing operations in the period in which the law was enacted. As such, federal income tax expense for the year ended December 31, 2017 reflects the effect of the tax rate change on net deferred tax assets and liabilities. This requirement also applies to items initially recognized in other comprehensive income. In January 2018, FASB issued ASU 2018-02 which allowed for the "stranded" tax effects in AOCI to be reclassified to retained earnings rather than income tax expense. We early adopted this guidance and applied this accounting alternative in our consolidated statements of changes in shareholders equity as of December 31, 2017. 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 is as follows for the year ended December 31 : 2018 2017 2016 Income taxes at statutory rate (21% in 2018 and 34% in 2017 and 2016) $ 3,231 $ 5,526 $ 5,490 Effect of nontaxable income Interest income on tax exempt municipal securities (1,106 ) (1,889 ) (1,938 ) Earnings on corporate owned life insurance policies (148 ) (247 ) (419 ) Deferred tax adjustment resulting from the statutory rate reduction pursuant to the Tax Act — 319 — Other 231 34 (154 ) Total effect of nontaxable income (1,023 ) (1,783 ) (2,511 ) Effect of nondeductible expenses 113 149 143 Effect of tax credits (958 ) (876 ) (774 ) Federal income tax expense $ 1,363 $ 3,016 $ 2,348 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for federal income tax purposes. Significant components of our deferred tax assets and liabilities, measured at the 21% statutory rate, included in other assets in the accompanying consolidated balance sheets, are as follows as of December 31 : 2018 2017 Deferred tax assets Allowance for loan losses $ 1,304 $ 1,076 Deferred directors’ fees 1,667 1,758 Employee benefit plans 81 70 Core deposit premium and acquisition expenses 752 733 Net unrecognized actuarial losses on pension plan 729 857 Net unrealized losses on available-for-sale securities 1,211 — Life insurance death benefit payable 497 497 Alternative minimum tax 710 1,463 Other 716 607 Total deferred tax assets 7,667 7,061 Deferred tax liabilities Prepaid pension cost 383 455 Premises and equipment 1,548 1,728 Accretion on securities 41 40 Core deposit premium and acquisition expenses 946 909 Net unrealized gains on available-for-sale securities — 204 Net unrealized gains on derivative instruments 68 61 Other 1,696 1,684 Total deferred tax liabilities 4,682 5,081 Net deferred tax assets $ 2,985 $ 1,980 We are subject to U.S. federal income tax; however, we are no longer subject to examination by taxing authorities for years before 2015 . There are no material uncertain tax positions requiring recognition in our consolidated financial statements . We do not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. We recognize interest and/or penalties related to income tax matters in income tax expense. We do not have any amounts accrued for interest and penalties at December 31, 2018 and 2017 and we are not aware of any claims for such amounts by federal income tax authorities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) AOCI includes net income as well as unrealized gains and losses, net of tax, on AFS securities and derivative instruments, as well as changes in the funded status of our defined benefit pension plan. Unrealized gains and losses and changes in the funded status of the pension plan, net of tax, are excluded from net income, and are reflected as a direct charge or credit to shareholders’ equity. Comprehensive income (loss) and the related components are disclosed in the consolidated statements of comprehensive income. The following table provides a roll-forward of the changes in AOCI by component for the years ended December 31, 2016 , 2017 and 2018 (net of tax): Unrealized Unrealized Change in Unrecognized Pension Cost on Defined Total Balance, January 1, 2016 $ 3,536 $ — $ (3,315 ) $ 221 OCI before reclassifications (5,865 ) 248 282 (5,335 ) Amounts reclassified from AOCI 525 — 238 763 Subtotal (5,340 ) 248 520 (4,572 ) Tax effect 1,834 (84 ) (177 ) 1,573 OCI, net of tax (3,506 ) 164 343 (2,999 ) Balance, December 31, 2016 30 164 (2,972 ) (2,778 ) OCI before reclassifications 289 43 11 343 Amounts reclassified from AOCI (142 ) — 412 270 Subtotal 147 43 423 613 Tax effect 89 (15 ) (144 ) (70 ) OCI, net of tax 236 28 279 543 One-time non-cash tax rate adjustment due to the Tax Act 125 38 (530 ) (367 ) Balance, December 31, 2017 391 230 (3,223 ) (2,602 ) OCI before reclassifications (7,229 ) 33 265 (6,931 ) Amounts reclassified from AOCI — — 345 345 Subtotal (7,229 ) 33 610 (6,586 ) Tax effect 1,415 (7 ) (128 ) 1,280 OCI, net of tax (5,814 ) 26 482 (5,306 ) Adoption of ASU 2016-01 223 — — 223 Balance, December 31, 2018 $ (5,200 ) $ 256 $ (2,741 ) $ (7,685 ) Included in OCI for the year ended December 31, 2018 are changes in unrealized holding gains and losses related to auction rate money market preferred stocks. These investments, for federal income tax purposes, have no deferred federal income taxes related to unrealized holding gains or losses given the nature of the investments. In accordance with the Tax Act , the effect of income tax law changes on deferred taxes also applies to items recognized in other comprehensive income. In January 2018, FASB issued ASU 2018-02 which allowed for the "stranded" tax effects in AOCI to be reclassified to retained earnings rather than income tax expense. We early adopted this guidance and applied this accounting alternative in our consolidated statements of changes in shareholders equity as of December 31, 2017. A summary of the components of unrealized holding gains on AFS securities included in OCI follows for the years ended December 31 : 2018 2017 2016 Auction Rate Money Market Preferred Stocks All Other AFS Securities Total 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 $ (495 ) $ (6,734 ) $ (7,229 ) $ 407 $ (118 ) $ 289 $ 54 $ (5,919 ) $ (5,865 ) Reclassification adjustment for net (gains) losses included in net income — — — — (142 ) (142 ) — (245 ) (245 ) Reclassification adjustment for impairment loss included in net income — — — — — — — 770 770 Net unrealized gains (losses) (495 ) (6,734 ) (7,229 ) 407 (260 ) 147 54 (5,394 ) (5,340 ) Tax effect (1) — 1,415 1,415 — 89 89 — 1,834 1,834 Unrealized gains (losses), net of tax $ (495 ) $ (5,319 ) $ (5,814 ) $ 407 $ (171 ) $ 236 $ 54 $ (3,560 ) $ (3,506 ) (1) Calculations are based on a federal income tax rate of 21% in 2018 and 34% in 2017 and 2016. The following table details reclassification adjustments and the related affected line items in our consolidated statements of income for the years ended December 31 : Details about AOCI components Amount Affected Line Item in the 2018 2017 2016 Unrealized holding gains (losses) on AFS securities $ — $ 142 $ 245 Net gains on sale of AFS securities — — (770 ) Other noninterest expenses — 142 (525 ) Income before federal income tax expense — 48 (179 ) Federal income tax expense (benefit) (1) $ — $ 94 $ (346 ) Net income Change in unrecognized pension cost on defined benefit pension plan $ 345 $ 412 $ 238 Other noninterest expenses 72 140 81 Federal income tax expense (1) $ 273 $ 272 $ 157 Net income (1) Calculations are based on a federal income tax rate of 21% in 2018 and 34% in 2017 and 2016. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 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: December 31, 2018 Valuation Technique Fair Value Unobservable Input Actual Range Discount applied to collateral: Real Estate 20% - 30% Equipment 20% - 40% Cash crop inventory 30% - 40% Discounted value $20,045 Livestock 30% Other inventory 45% - 50% Accounts receivable 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 differs 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 December 31 : 2018 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 73,471 $ 73,471 $ 73,471 $ — $ — Mortgage loans AFS 358 365 — 365 — Gross loans 1,128,707 1,099,645 — — 1,099,645 Less allowance for loan and lease losses 8,375 8,375 — — 8,375 Net loans 1,120,332 1,091,270 — — 1,091,270 Accrued interest receivable 6,928 6,928 6,928 — — Equity securities without readily determinable fair values (1) 24,948 N/A — — — OMSR 2,434 2,602 — 2,602 — LIABILITIES Deposits without stated maturities 859,073 859,073 859,073 — — Deposits with stated maturities 433,620 425,993 — 425,993 — Borrowed funds 340,299 333,829 — 333,829 — Accrued interest payable 826 826 826 — — 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 December 31 : 2018 2017 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Recurring items AFS securities Government-sponsored enterprises $ 170 $ — $ 170 $ — $ 216 $ — $ 216 $ — States and political subdivisions 190,866 — 190,866 — 208,474 — 208,474 — Auction rate money market preferred 2,554 — 2,554 — 3,049 — 3,049 — Mortgage-backed securities 184,484 — 184,484 — 208,797 — 208,797 — Collateralized mortgage obligations 116,760 — 116,760 — 128,194 — 128,194 — Total AFS securities 494,834 — 494,834 — 548,730 — 548,730 — Equity securities — — — — 3,577 3,577 — — Derivative instruments 323 — 323 — 291 — 291 — Nonrecurring items Impaired loans (net of the ALLL) 20,045 — — 20,045 15,956 — — 15,956 Total $ 515,202 $ — $ 495,157 $ 20,045 $ 568,554 $ 3,577 $ 549,021 $ 15,956 Percent of assets and liabilities measured at fair value — % 96.11 % 3.89 % 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 year ended December 31, 2018 , we recorded a loss of $41 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 or nonrecurring basis, as of December 31, 2018 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the ordinary course of business, we grant loans to principal officers and directors and their affiliates (including their families and companies in which they have 10% or more ownership). Annual activity consisted of the following for the years ended December 31 : 2018 2017 Balance, January 1 $ 4,335 $ 3,946 New loans 1,184 3,895 Repayments (2,176 ) (3,506 ) Balance, December 31 $ 3,343 $ 4,335 Total deposits of these principal officers and directors and their affiliates amounted to $5,029 and $5,671 at December 31, 2018 and 2017 , respectively. In addition, the ESOP held deposits with the Bank aggregating $266 at December 31, 2017 . No deposits were held as of December 31, 2018 due to the dissolution of the ESOP during 2018. From time-to-time , we make charitable donations to The Isabella Bank Foundation (the “Foundation”), which is a non-controlled nonprofit organization formed for the purpose of distributing charitable donations to recipient organizations generally located in the communities we serve. Our donations are expensed when committed to the Foundation. The assets and transactions of the Foundation are not included in our consolidated financial statements . Assets of the Foundation include cash and cash equivalents, certificates of deposit, and shares of Isabella Bank Corporation common stock. The Foundation owned 44,350 shares of our common stock as of December 31, 2018 and 2017 , respectively. Such shares are included in the computation of dividends and earnings per share. We did not make donations to the Foundation for the years ended December 31, 2018 , 2017 and 2016 . The following table displays total asset balances of the Foundation as of December 31 : 2018 2017 2016 Total assets $ 1,731 $ 2,162 $ 2,213 |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 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 December 31, 2018 , 2017 , and 2016 represent approximately 90% or more of our consolidated total assets and operating results. As such, no additional segment reporting is presented. |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Information | Parent Company Only Financial Information Condensed Balance Sheets December 31 2018 2017 ASSETS Cash on deposit at the Bank $ 2,499 $ 185 Investments in subsidiaries 143,942 145,962 Premises and equipment 1,912 1,950 Other assets 51,674 52,253 TOTAL ASSETS $ 200,027 $ 200,350 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 4,508 $ 5,445 Shareholders' equity 195,519 194,905 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 200,027 $ 200,350 Condensed Statements of Income Year Ended December 31 2018 2017 2016 Income Dividends from subsidiaries $ 13,100 $ 9,600 $ 7,400 Interest income 1 2 14 Management fee and other 3,030 6,463 6,574 Total income 16,131 16,065 13,988 Expenses Compensation and benefits 4,132 5,196 4,898 Occupancy and equipment 513 1,779 1,696 Audit and related fees 368 527 536 Other 1,615 2,566 2,120 Total expenses 6,628 10,068 9,250 Income before income tax benefit and equity in undistributed earnings of subsidiaries 9,503 5,997 4,738 Federal income tax benefit 749 91 1,058 Income before equity in undistributed earnings of subsidiaries 10,252 6,088 5,796 Undistributed earnings of subsidiaries 3,769 7,149 8,003 Net income $ 14,021 $ 13,237 $ 13,799 Condensed Statements of Cash Flows Year Ended December 31 2018 2017 2016 Operating activities Net income $ 14,021 $ 13,237 $ 13,799 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (3,769 ) (7,149 ) (8,003 ) Undistributed earnings of equity securities without readily determinable fair values (144 ) 40 791 Share-based payment awards under equity compensation plan 612 640 573 Depreciation 134 154 156 Deferred income tax expense (benefit) (31 ) 792 147 Changes in operating assets and liabilities which provided (used) cash Other assets 1,237 42 (44 ) Accrued interest and other liabilities (937 ) (1,590 ) (2,669 ) Net cash provided by (used in) operating activities 11,123 6,166 4,750 Investing activities Maturities, calls, principal payments, and sales of AFS securities — 249 — Sales (purchases) of premises and equipment (96 ) (113 ) (133 ) Net cash provided by (used in) investing activities (96 ) 136 (133 ) Financing activities Net increase (decrease) in borrowed funds — — — Cash dividends paid on common stock (8,169 ) (7,990 ) (7,645 ) Proceeds from the issuance of common stock 6,864 6,177 5,023 Common stock repurchased (7,007 ) (5,181 ) (4,440 ) Common stock purchased for deferred compensation obligations (401 ) (420 ) (383 ) Net cash provided by (used in) financing activities (8,713 ) (7,414 ) (7,445 ) Increase (decrease) in cash and cash equivalents 2,314 (1,112 ) (2,828 ) Cash and cash equivalents at beginning of period 185 1,297 4,125 Cash and cash equivalents at end of period $ 2,499 $ 185 $ 1,297 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND CONSOLIDATION | BASIS OF PRESENTATION AND CONSOLIDATION: The consolidated financial statements include the accounts of Isabella Bank Corporation, a financial services holding company, and its wholly owned subsidiary, Isabella Bank. All intercompany balances and accounts have been eliminated in consolidation. |
USE OF ESTIMATES | USE OF ESTIMATES: In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting year. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the ALLL , the fair value of AFS investment securities, and the valuation of goodwill and other intangible assets. |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS : Fair value refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data. We may choose to measure eligible items at fair value at specified election dates. For assets and liabilities recorded at fair value, it is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements for those financial instruments for which there is an active market. In cases where the market for a financial asset or liability is not active, we include appropriate risk adjustments that market participants would make for nonperformance and liquidity risks when developing fair value measurements. Fair value measurements for assets and liabilities for which limited or no observable market data exists are accordingly based primarily upon estimates, are often calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Investment securities AFS and derivative instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets and liabilities at fair value on a nonrecurring basis, such as mortgage loans AFS , impaired loans, foreclosed assets, OMSR , goodwill, and certain other assets and liabilities. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write downs of individual assets. Fair Value Hierarchy 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. For further discussion of fair value considerations, refer to “ Note 17 – 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. |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK : Most of our activities are conducted with customers located within the central Michigan area. A significant amount of our outstanding loans are secured by commercial and residential real estate. Other than these types of loans, there is no significant concentration to any other industry or any one customer. 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. 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 constitutes 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. • Loan may need to be restructured to improve collateral position or reduce payments. • Collateral or guaranty offers limited protection. • Negative debt service coverage, however the credit is well collateralized and payments are current. 6. SUBSTANDARD – Classified Credit is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. There is a distinct possibility we will implement collection procedures if the loan deficiencies are not corrected. Any commercial loan placed in nonaccrual status will be rated "7" or worse. 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. • Interest non-accrual may be warranted. • 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 in 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 . 9. LOSS – Charge-off Credit is considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification is for charged-off loans but does not mean that the asset has absolutely no recovery or salvage value. These loans are further characterized by: • Liquidation or reorganization under Bankruptcy, with poor prospects of collection. • Fraudulently overstated assets and/or earnings. • Collateral has marginal or no value. • Debtor cannot be located. • Over 120 days delinquent. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS: For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, federal funds sold, and other deposit accounts. Generally, federal funds sold are for a one day period. We maintain deposit accounts in various financial institutions which generally exceed federally insured limits or are not insured. We do not believe we are exposed to any significant interest, credit or other financial risk as a result of these deposits. |
AFS SECURITIES | AFS SECURITIES: Purchases of investment securities are generally classified as AFS . However, we may elect to classify securities as either held to maturity or trading. Securities classified as AFS debt securities are recorded at fair value, with unrealized gains and losses, net of the effect of deferred income taxes, excluded from earnings and reported in other comprehensive income. Included in AFS securities are auction rate money market preferred securities. These investments, for federal income tax purposes, have no federal income tax impact given the nature of the investments. Auction rate money market preferred securities and preferred stocks are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities. Realized gains and losses on the sale of AFS securities are determined using the specific identification method. AFS securities are reviewed quarterly for possible OTTI . In determining whether an OTTI exists for debt securities, we assert that: (a) we do not have the intent to sell the security; and (b) it is more likely than not we will not have to sell the security before recovery of its cost basis. If these conditions are not met, we recognize an OTTI charge through earnings for the difference between the debt security’s amortized cost basis and its fair value, and such amount is included in noninterest income. For debt securities that do not meet the above criteria, and we do not expect to recover the security’s amortized cost basis, the security is considered other-than-temporarily impaired. For these debt securities, we separate the total impairment into the credit risk loss component and the amount of the loss related to market and other risk factors. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The amount of the total OTTI related to the credit risk is recognized in earnings and is included in noninterest income. The amount of the total OTTI related to other risk factors is recognized as a component of other comprehensive income. For debt securities that have recognized OTTI through earnings, if through subsequent evaluation there is a significant increase in the cash flow expected, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. AFS equity securities are reviewed for OTTI at each reporting date. This evaluation considers a number of factors including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and our ability and intent to hold the securities until fair value recovers. If it is determined that we do not have the ability and intent to hold the securities until recovery or that there are conditions that indicate that a security may not recover in value then the difference between the fair value and the cost of the security is recognized in earnings and is included in noninterest income. As of December 31, 2018 and 2017 , we conducted an analysis to determine whether any securities currently in an unrealized loss position should be identified as 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? |
LOANS | LOANS: Loans that we have the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs , the ALLL , and any deferred fees or costs on originated loans. Interest income on loans 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 appropriate yield methods. The accrual of interest on agricultural, commercial and mortgage 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. 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 in nonaccrual 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 . Interest income on loans in nonaccrual status is not recognized until qualifying for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. For impaired loans not classified as nonaccrual , interest income continues to be accrued over the term of the loan based on the principal amount outstanding. Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, advances to mortgage brokers, farmland and agricultural production, and loans to 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 may be 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, property, or equipment. Personal guarantees are generally required from the owners of closely held corporations, partnerships, and sole proprietorships. In addition, we may 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 consolidated balance sheet. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $30,000. The difference between our outstanding balance 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, our liquidity needs, 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 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. Generally, mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market underwriting system; loans in excess of $1,000 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 | ALLOWANCE FOR LOAN AND LEASE 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 allowance when we believe the uncollectability of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. We evaluate the ALLL on a regular basis. Our periodic review of the collectability of loans considers 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 ALLL consists of specific, general, and unallocated components. The specific component relates to loans that are deemed to be impaired. For such loans that are analyzed for specific allowance allocations, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical loss experience adjusted for current conditions. An unallocated component is maintained to cover uncertainties that we believe affect our estimate of probable losses based on qualitative 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. 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; 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 by either 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. 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. 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. |
LOANS HELD FOR SALE | LOANS HELD FOR SALE: Mortgage loans held for sale on the secondary market are carried at the lower of cost or fair value as determined by aggregating outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, would be recognized as a component of other noninterest expenses. Mortgage loans held for sale are sold with the mortgage servicing rights retained by us. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. |
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS: Transfers of financial assets, including mortgage loans and participation loans, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is determined to be surrendered when 1) the assets have been legally isolated from us, 2) the transferee obtains the right (free of conditions that constrain it from taking advantage of the right) to pledge or exchange the transferred assets, and 3) we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Other than servicing, we have no substantive continuing involvement related to these loans. |
SERVICING | SERVICING: Servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. We have no purchased servicing rights. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on relative fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type, and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If we later determine that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the valuation allowance may be recorded as an increase to income. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. The unpaid principal balance of mortgages serviced for others was $259,481 and $266,789 with capitalized servicing rights of $2,435 and $2,409 at December 31, 2018 and 2017 , respectively. Servicing fee income is recorded for fees earned for servicing loans for others. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. We recorded servicing fee revenue of $651 , $671 , and $696 related to residential mortgage loans serviced for others during 2018 , 2017 , and 2016 , respectively, which is included in other noninterest income. |
FORECLOSED ASSETS | FORECLOSED ASSETS: Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of our carrying amount or fair value less estimated selling costs at the date of transfer, establishing a new cost basis. Any write downs based on the asset’s fair value at the date of acquisition are charged to the ALLL . After foreclosure, property held for sale is carried at the lower of the new cost basis or fair value less costs to sell. Impairment losses on property to be held and used are measured at the amount by which the carrying amount of property exceeds its fair value. Costs relating to holding these assets are expensed as incurred. We periodically perform valuations and any subsequent write downs are recorded as a charge to operations, if necessary, to reduce the carrying value of a property to the lower of our carrying amount or fair value less costs to sell. Foreclosed assets of $355 and $291 as of December 31, 2018 and 2017 , respectively, are included in other assets. |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT: Land is carried at cost. Buildings and equipment are carried at cost, less accumulated depreciation which is computed principally by the straight-line method based upon the estimated useful lives of the related assets, which range from 3 to 40 years. Major improvements are capitalized and appropriately amortized based upon the useful lives of the related assets or the expected terms of the leases, if shorter, using the straight-line method. Maintenance, repairs and minor alterations are charged to current operations as expenditures occur. We annually review these assets to determine whether carrying values have been impaired. |
EQUITY SECURITIES WITHOUT READILY DETERMINABLE FAIR VALUES | EQUITY SECURITIES WITHOUT READILY DETERMINABLE FAIR VALUES: Included in equity securities without readily determinable fair values are our holdings in FHLB stock and FRB stock as well as our ownership interest in Corporate Settlement Solutions, LLC . Our investment in Corporate Settlement Solutions, LLC , a title insurance company, was made in the 1st quarter of 2008. We are not the managing entity of Corporate Settlement Solutions, LLC , and account for our investment in that entity under the equity method of accounting. Equity securities without readily determinable fair values consist of the following holdings as of December 31 : 2018 2017 FHLB Stock $ 15,050 $ 13,700 Corporate Settlement Solutions, LLC 7,565 7,421 FRB Stock 1,999 1,999 Other 334 334 Total $ 24,948 $ 23,454 |
EQUITY COMPENSATION PLAN | EQUITY COMPENSATION PLAN: At December 31, 2018 , the Directors Plan had 220,171 shares eligible to be issued to participants, for which the Rabbi Trust held 16,673 shares. We had 226,909 shares to be issued at December 31, 2017 , with 31,769 shares held in the Rabbi Trust . Compensation costs relating to share-based payment transactions are recognized as the services are rendered, with the cost measured based on the fair value of the equity or liability instruments issued (see “ Note 12 – Benefit Plans ”). |
CORPORATE OWNED LIFE INSURANCE | CORPORATE OWNED LIFE INSURANCE: We have purchased life insurance policies on key members of management, partially for the purpose of funding certain post-retirement benefits. In the event of death of one of these individuals, we would receive a specified cash payment equal to the face value of the policy. Such policies are recorded at their cash surrender value, or the amount that can be realized on the balance sheet date. Increases in cash surrender value in excess of single premiums paid are reported as other noninterest income. As of December 31, 2018 and 2017 , the present value of the post retirement benefits payable by us to the covered insured participants was estimated to be $2,751 and $2,751 , respectively, and is included in accrued interest payable and other liabilities. The expenses associated with these policies totaled $0 , $577 , and $(8) for 2018 , 2017 , and 2016 , respectively. |
ACQUISITION INTANGIBLES AND GOODWILL | ACQUISITION INTANGIBLES AND GOODWILL: We previously acquired branch facilities and related deposits in business combinations accounted for as a purchase. The acquisitions included amounts related to the valuation of customer deposit relationships (core deposit intangibles). Core deposit intangibles arising from acquisitions are included in goodwill and other intangible assets are being amortized over their estimated lives and evaluated for potential impairment on at least an annual basis. Goodwill, which represents the excess of the purchase price over identifiable assets, is not amortized but is evaluated for impairment on at least an annual basis. Acquisition intangibles and goodwill are typically qualitatively evaluated to determine if it is more likely than not that the carrying balance is impaired. If it is determined that the carrying balance is more likely than not to be impaired, we perform a cash flow valuation to determine the extent of the potential impairment. This valuation method requires a significant degree of our judgment. In the event the projected undiscounted net operating cash flows for these intangible assets are less than the carrying value, the asset is recorded at fair value as determined by the valuation model. |
OFF BALANCE SHEET CREDIT RELATED FINANCIAL INSTRUMENTS | OFF BALANCE SHEET CREDIT RELATED FINANCIAL INSTRUMENTS: In the ordinary course of business, we have entered into commitments to extend credit, including commitments under credit card arrangements, commercial lines of credit, home equity lines of credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded only when funded. |
Revenue Recognition, Policy [Policy Text Block] | REVENUE RECOGNITION: 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 investment and trust advisory fees. We recognize revenue, excluding interest income, in accordance with ASC 606, Revenue From Contracts with Customers. Revenue is recognized when our performance obligation has been satisfied according to our contractual obligation. |
FEDERAL INCOME TAXES | FEDERAL INCOME TAXES: Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax assets or liabilities are determined based on the tax effects of the temporary differences between the book and tax basis on the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Valuation allowances are established, where necessary, to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the year plus or minus the change during the year in deferred tax assets and liabilities. On December 22, 2017, the Tax Cuts and Jobs Act was enacted. The law established a flat corporate federal statutory income tax rate of 21%. In accordance with ASC 740, Income Taxes, the effect of income tax law changes on deferred taxes was recognized as a component of income tax expense related to continuing operations in the period in which the law was enacted. As such, federal income tax expense for the year ended December 31, 2017 reflects the effect of the tax rate change on net deferred tax assets and liabilities (see “ Note 15 – Federal Income Taxes ” and “ Note 16 – Accumulated Other Comprehensive Income (Loss) ”). We analyze our filing positions in the jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. We also treat interest and penalties attributable to income taxes, to the extent they arise, as a component of our noninterest expenses. |
DEFINED BENEFIT PENSION PLAN | DEFINED BENEFIT PENSION PLAN: We maintain a noncontributory defined benefit pension plan, which was curtailed effective March 1, 2007. The service cost component of the defined benefit pension plan is included in “compensation and benefits” on the consolidated statements of income and is funded consistent with the requirements of federal laws and regulations. All other costs related to the defined benefit pension plan are included in “other” noninterest expenses on the consolidated statements of income. The current benefit obligation is included in "accrued interest payable and other liabilities" on the consolidated balance sheets. Inherent in the determination of defined benefit pension costs are assumptions concerning future events that will affect the amount and timing of required benefit payments under the plan. These assumptions include demographic assumptions such as mortality, a discount rate used to determine the current benefit obligation and a long-term expected rate of return on plan assets. Net periodic benefit cost includes the interest cost based on the assumed discount rate, an expected return on plan assets based on an actuarially derived market-related value of assets, and amortization of unrecognized net actuarial gains or losses. Actuarial gains and losses result from experience different from that assumed and from changes in assumptions (excluding asset gains and losses not yet reflected in market-related value). Amortization of actuarial gains and losses is included as a component of net periodic defined benefit pension cost. For additional information, see “ Note 12 – Benefit Plans . We maintain a noncontributory defined benefit pension plan, which was curtailed effective March 1, 2007 . As a result of the curtailment, future salary increases are no longer considered (the projected benefit obligation is equal to the accumulated benefit obligation), and plan benefits are based on years of service and the individual employee’s five highest consecutive years of compensation out of the last ten years of service through March 1, 2007 . |
MARKETING COSTS | MARKETING COSTS: Marketing costs are expensed as incurred (see “ Note 14 – Other Noninterest Expenses ”). |
RECLASSIFICATIONS | RECLASSIFICATIONS: Certain amounts reported in the 2017 and 2016 consolidated financial statements have been reclassified to conform with the 2018 presentation. |
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 includes 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 , see " Note 12 – Benefit Plans ." |
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 short-term 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 in nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. When loans are placed in 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. |
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, 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. Large groups of smaller-balance, homogeneous residential real estate and consumer loans are collectively evaluated for impairment 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 | A loan modification is considered to be a TDR 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: 1. Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. 2. Extending the amortization period beyond typical lending guidelines for loans with similar risk characteristics. 3. Agreeing to an interest only payment structure and delaying principal payments. 4. Forgiving principal. 5. Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: 1. The borrower is currently in default on any of their debt. 2. The borrower would likely default on any of their debt if the concession is not granted. 3. The borrower’s cash flow is insufficient to service all of their debt if the concession is not granted. 4. The borrower has declared, or is in the process of declaring, bankruptcy. 5. The borrower is unlikely to continue as a going concern (if the entity is a business). |
Fair Value Fair Value Measureme
Fair Value Fair Value Measurement, Policy (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurement, Policy [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | FAIR VALUE MEASUREMENTS : Fair value refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data. We may choose to measure eligible items at fair value at specified election dates. For assets and liabilities recorded at fair value, it is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements for those financial instruments for which there is an active market. In cases where the market for a financial asset or liability is not active, we include appropriate risk adjustments that market participants would make for nonperformance and liquidity risks when developing fair value measurements. Fair value measurements for assets and liabilities for which limited or no observable market data exists are accordingly based primarily upon estimates, are often calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Investment securities AFS and derivative instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets and liabilities at fair value on a nonrecurring basis, such as mortgage loans AFS , impaired loans, foreclosed assets, OMSR , goodwill, and certain other assets and liabilities. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write downs of individual assets. Fair Value Hierarchy 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. For further discussion of fair value considerations, refer to “ Note 17 – 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. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of equity method and other investments | Equity securities without readily determinable fair values consist of the following holdings as of December 31 : 2018 2017 FHLB Stock $ 15,050 $ 13,700 Corporate Settlement Solutions, LLC 7,565 7,421 FRB Stock 1,999 1,999 Other 334 334 Total $ 24,948 $ 23,454 |
AFS Securities (Tables)
AFS Securities (Tables) | 12 Months Ended |
Dec. 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 as of December 31 : 2018 Amortized Gross Gross Fair Government sponsored enterprises $ 172 $ — $ 2 $ 170 States and political subdivisions 188,992 2,125 251 190,866 Auction rate money market preferred 3,200 — 646 2,554 Mortgage-backed securities 189,688 76 5,280 184,484 Collateralized mortgage obligations 119,193 71 2,504 116,760 Total $ 501,245 $ 2,272 $ 8,683 $ 494,834 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 December 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 $ — $ 172 $ — $ — $ — $ 172 States and political subdivisions 23,151 81,901 55,923 28,017 — 188,992 Auction rate money market preferred — — — — 3,200 3,200 Mortgage-backed securities — — — — 189,688 189,688 Collateralized mortgage obligations — — — — 119,193 119,193 Total amortized cost $ 23,151 $ 82,073 $ 55,923 $ 28,017 $ 312,081 $ 501,245 Fair value $ 23,189 $ 82,662 $ 56,842 $ 28,343 $ 303,798 $ 494,834 |
Summary of the activity related to sales of available-for-sale securities | A summary of the sales activity of AFS securities during the years ended December 31 is displayed in the following table. There were no sales of AFS securities during 2018. 2017 2016 Proceeds from sales of AFS securities $ 12,827 $ 35,664 Gross realized gains (losses) $ 142 $ 245 Applicable income tax expense (benefit) $ 48 $ 83 |
Available-for-sale securities with gross unrealized losses | The following information pertains to AFS securities with gross unrealized losses at December 31 aggregated by investment category and length of time that individual securities have been in a continuous loss position. 2018 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ 2 $ 170 $ 2 States and political subdivisions 83 14,732 168 15,090 251 Auction rate money market preferred — — 646 2,554 646 Mortgage-backed securities 896 43,485 4,384 124,253 5,280 Collateralized mortgage obligations 199 21,886 2,305 87,929 2,504 Total $ 1,178 $ 80,103 $ 7,505 $ 229,996 $ 8,683 Number of securities in an unrealized loss position: 66 102 168 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 |
Roll-forward of credit related impairment recognized in earnings | The following table provides a roll-forward of credit related impairment recorded in earnings for the years ended December 31 : 2018 2017 2016 Balance at beginning of the period $ 770 $ 770 $ — Additions to credit losses for which no previous OTTI was recognized — — 770 Reductions for credit losses realized on securities sold during the period — — — Balance at end of the period $ 770 $ 770 $ 770 |
Loans and ALLL (Tables)
Loans and ALLL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Summary of changes in the ALLL and the recorded investment in loans by segments | A summary of changes in the ALLL and the recorded investment in loans by segments follows: Allowance for Loan Losses Year Ended December 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 (626 ) — (151 ) (324 ) — (1,101 ) Recoveries 328 — 261 209 — 798 Provision for loan losses 1,155 164 (681 ) 72 268 978 December 31, 2018 $ 2,563 $ 775 $ 1,992 $ 857 $ 2,188 $ 8,375 Allowance for Loan Losses Year Ended December 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 (265 ) — (200 ) (306 ) — (771 ) Recoveries 453 — 206 159 — 818 Provision for loan losses (296 ) (273 ) (107 ) 423 506 253 December 31, 2017 $ 1,706 $ 611 $ 2,563 $ 900 $ 1,920 $ 7,700 |
Allowance for Loan Losses and Recorded Investment in Loans | Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2018 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 443 $ 132 $ 1,363 $ — $ — $ 1,938 Collectively evaluated for impairment 2,120 643 629 857 2,188 6,437 Total $ 2,563 $ 775 $ 1,992 $ 857 $ 2,188 $ 8,375 Loans Individually evaluated for impairment $ 9,899 $ 14,298 $ 6,893 $ 9 $ 31,099 Collectively evaluated for impairment 649,630 112,863 268,450 66,665 1,097,608 Total $ 659,529 $ 127,161 $ 275,343 $ 66,674 $ 1,128,707 Allowance for Loan Losses and Recorded Investment in Loans As of 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 tables display the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit risk ratings as of December 31 : 2018 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ 21 $ 31 $ — $ 52 $ 51 $ 28 $ 79 $ 131 2 - High quality 4,564 13,473 — 18,037 2,729 613 3,342 21,379 3 - High satisfactory 127,573 43,199 11,793 182,565 18,325 7,039 25,364 207,929 4 - Low satisfactory 344,920 84,634 — 429,554 46,636 19,344 65,980 495,534 5 - Special mention 12,847 5,287 — 18,134 10,520 5,624 16,144 34,278 6 - Substandard 7,428 2,002 — 9,430 6,343 4,960 11,303 20,733 7 - Vulnerable 334 1,423 — 1,757 2,716 2,233 4,949 6,706 8 - Doubtful — — — — — — — — 9 - Loss — — — — — — — — Total $ 497,687 $ 150,049 $ 11,793 $ 659,529 $ 87,320 $ 39,841 $ 127,161 $ 786,690 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 — — — — — — — — 9 - Loss — — — — — — — — Total $ 481,654 $ 141,024 $ 12,081 $ 634,759 $ 88,165 $ 40,104 $ 128,269 $ 763,028 |
Summary of past due and current loans | 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 December 31 : 2018 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 60 $ — $ — $ 334 $ 394 $ 497,293 $ 497,687 Commercial other 277 628 — 1,423 2,328 147,721 150,049 Advances to mortgage brokers — — — — — 11,793 11,793 Total commercial 337 628 — 1,757 2,722 656,807 659,529 Agricultural Agricultural real estate 428 — — 2,716 3,144 84,176 87,320 Agricultural other — — — 2,233 2,233 37,608 39,841 Total agricultural 428 — — 4,949 5,377 121,784 127,161 Residential real estate Senior liens 2,254 203 113 554 3,124 233,438 236,562 Junior liens 2 6 — — 8 6,001 6,009 Home equity lines of credit 76 — — — 76 32,696 32,772 Total residential real estate 2,332 209 113 554 3,208 272,135 275,343 Consumer Secured 95 — — — 95 62,721 62,816 Unsecured 10 — — — 10 3,848 3,858 Total consumer 105 — — — 105 66,569 66,674 Total $ 3,202 $ 837 $ 113 $ 7,260 $ 11,412 $ 1,117,295 $ 1,128,707 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 summarizes information pertaining to impaired loans as of, and for the years ended, December 31 : 2018 Recorded Balance Unpaid Principal Balance Valuation Allowance Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 3,969 $ 4,211 $ 437 $ 4,589 $ 129 Commercial other 12 12 6 1,040 55 Agricultural real estate 392 392 112 606 50 Agricultural other 44 44 20 168 46 Residential real estate senior liens 6,834 7,289 1,361 7,545 126 Residential real estate junior liens 12 12 2 25 — Home equity lines of credit — — — — — Total impaired loans with a valuation allowance 11,263 11,960 1,938 13,973 406 Impaired loans without a valuation allowance Commercial real estate 2,794 2,947 2,728 74 Commercial other 3,124 3,231 1,533 43 Agricultural real estate 7,618 7,618 7,559 585 Agricultural other 6,244 6,287 4,636 279 Home equity lines of credit 47 347 64 5 Consumer secured 9 9 12 — Total impaired loans without a valuation allowance 19,836 20,439 16,532 986 Impaired loans Commercial 9,899 10,401 443 9,890 301 Agricultural 14,298 14,341 132 12,969 960 Residential real estate 6,893 7,648 1,363 7,634 131 Consumer 9 9 — 12 — Total impaired loans $ 31,099 $ 32,399 $ 1,938 $ 30,505 $ 1,392 2017 Recorded Balance Unpaid Principal Balance Valuation Allowance Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 4,089 $ 4,378 $ 626 $ 4,608 $ 277 Commercial other 995 995 24 1,427 93 Agricultural real estate — — — — — Agricultural other — — — 17 — Residential real estate senior liens 7,816 8,459 1,473 8,296 323 Residential real estate junior liens 44 44 7 71 2 Home equity lines of credit — — — 23 — Total impaired loans with a valuation allowance 12,944 13,876 2,130 14,442 695 Impaired loans without a valuation allowance Commercial real estate 1,791 1,865 1,585 111 Commercial other 1,224 1,224 246 23 Agricultural real estate 7,913 7,913 6,421 307 Agricultural other 2,685 2,685 2,494 126 Home equity lines of credit 79 379 106 19 Consumer secured 17 17 21 — Total impaired loans without a valuation allowance 13,709 14,083 10,873 586 Impaired loans Commercial 8,099 8,462 650 7,866 504 Agricultural 10,598 10,598 — 8,932 433 Residential real estate 7,939 8,882 1,480 8,496 344 Consumer 17 17 — 21 — Total impaired loans $ 26,653 $ 27,959 $ 2,130 $ 25,315 $ 1,281 |
Information pertaining to TDR's | The following is a summary of TDR loan balances as of December 31 : 2018 2017 TDRs $ 26,951 $ 26,197 The following is a summary of information pertaining to TDRs granted in the years ended December 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 4 $ 1,360 $ 1,360 6 $ 1,702 $ 1,702 Agricultural other 31 6,318 6,295 15 6,092 6,092 Residential real estate Senior liens 10 701 701 6 464 464 Junior liens — — — 1 8 8 Total residential real estate 10 701 701 7 472 472 Total 45 $ 8,379 $ 8,356 28 $ 8,266 $ 8,266 The following tables summarize concessions we granted to borrowers in financial difficulty in the years ended December 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 3 $ 1,186 — $ — 6 $ 1,702 Agricultural other 18 2,625 13 3,693 11 1,972 4 4,120 Residential real estate Senior liens 3 203 7 498 — — 6 464 Junior liens — — — — 1 8 — — Total residential real estate 3 203 7 498 1 8 6 464 Total 22 $ 3,002 23 $ 5,377 12 $ 1,980 16 $ 6,286 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of premises and equipment | A summary of premises and equipment at December 31 follows: 2018 2017 Land $ 6,336 $ 6,336 Buildings and improvements 30,100 29,661 Furniture and equipment 34,825 33,466 Total 71,261 69,463 Less: accumulated depreciation 43,446 41,013 Premises and equipment, net $ 27,815 $ 28,450 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of identifiable intangible assets | Identifiable intangible assets were as follows as of December 31 : 2018 Gross Accumulated Net Core deposit premium resulting from acquisitions $ 5,579 $ 5,410 $ 169 2017 Gross Accumulated Net Core deposit premium resulting from acquisitions $ 5,579 $ 5,314 $ 265 |
Summary of estimated amortization expense associated with identifiable intangibles | Estimated amortization expense associated with identifiable intangibles for each of the next five years succeeding December 31, 2018 , and thereafter is as follows: Estimated Amortization Expense 2019 $ 71 2020 48 2021 29 2022 15 2023 2 Thereafter 4 Total $ 169 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of borrowed funds | Borrowed funds consist of the following obligations at December 31 : 2018 2017 Amount Rate Amount Rate FHLB advances $ 300,000 2.20 % $ 290,000 1.94 % Securities sold under agreements to repurchase without stated maturity dates 40,299 0.11 % 54,878 0.12 % Total $ 340,299 1.95 % $ 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 December 31 : 2018 2017 Amount Rate Amount Rate Fixed rate due 2018 $ — — % $ 70,000 1.96 % Fixed rate due 2019 100,000 1.94 % 85,000 1.87 % Fixed rate due 2020 55,000 2.18 % 35,000 1.80 % Fixed rate due 2021 50,000 1.91 % 50,000 1.91 % Variable rate due 2021 (1) 10,000 2.93 % 10,000 1.72 % Fixed rate due 2022 20,000 1.97 % 20,000 1.97 % Fixed rate due 2023 35,000 3.17 % 10,000 3.90 % Fixed rate due 2024 20,000 2.96 % — — % Fixed rate due 2026 10,000 1.17 % 10,000 1.17 % Total $ 300,000 2.20 % $ 290,000 1.94 % (1) Hedged advance (see " Derivative Instruments " section below) |
Summary of short term borrowings | The following tables provide a summary of securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount advances at December 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 $ 63,133 $ 38,036 0.10 % $ 58,464 $ 55,206 0.13 % Federal funds purchased 16,200 3,741 1.78 % 5,965 2,726 1.15 % FRB Discount Window — — — % — 43 1.54 % |
Summary of pledged financial instruments | We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at December 31 : 2018 2017 Pledged to secure borrowed funds $ 431,430 $ 410,988 Pledged to secure repurchase agreements 40,316 54,898 Pledged for public deposits and for other purposes necessary or required by law 58,107 27,976 Total $ 529,853 $ 493,862 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at December 31 : 2018 2017 States and political subdivisions $ 23,268 $ 7,332 Mortgage-backed securities 10,736 13,199 Collateralized mortgage obligations 6,312 34,367 Total $ 40,316 $ 54,898 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following tables provide information on derivatives related to variable rate borrowings as of December 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 2.3 $ 10,000 Other Assets $ 323 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 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Scheduled maturities of time deposits | Scheduled maturities of time deposits for the next five years, and thereafter, are as follows: Scheduled Maturities of Time Deposits 2019 $ 232,349 2020 56,051 2021 65,036 2022 41,502 2023 31,714 Thereafter 6,968 Total $ 433,620 |
Off-Balance-Sheet Activities (T
Off-Balance-Sheet Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Notional amount of financial instrument | The following table summarizes our credit related financial instruments with off-balance-sheet risk as of December 31 : 2018 2017 Unfunded commitments under lines of credit $ 199,652 $ 184,317 Commercial and standby letters of credit 1,723 1,622 Commitments to grant loans 13,225 24,782 Total $ 214,600 $ 210,721 |
Minimum Regulatory Capital Re_2
Minimum Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Summary of compliance with regulatory capital requirements | Our actual capital amounts and ratios are also presented in the table. Actual Minimum Minimum To Be Well Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Common equity Tier 1 capital to risk weighted assets Isabella Bank $ 143,429 11.75 % $ 48,832 6.375 % $ 73,248 6.50 % Consolidated 154,705 12.58 % 49,212 6.375 % N/A N/A Tier 1 capital to risk weighted assets Isabella Bank 143,429 11.75 % 48,832 7.875 % 73,248 8.00 % Consolidated 154,705 12.58 % 49,212 7.875 % N/A N/A Total capital to risk weighted assets Isabella Bank 151,804 12.43 % 97,664 9.875 % 122,080 10.00 % Consolidated 163,080 13.26 % 98,423 9.875 % N/A N/A Tier 1 capital to average assets Isabella Bank 143,429 8.07 % 71,085 4.00 % 88,856 5.00 % Consolidated 154,705 8.72 % 70,996 4.00 % N/A N/A Actual Minimum Minimum To Be Well Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Common equity Tier 1 capital to risk weighted assets Isabella Bank $ 139,897 11.56 % $ 48,404 5.750 % $ 72,605 6.50 % Consolidated 149,013 12.23 % 48,744 5.750 % N/A N/A Tier 1 capital to risk weighted assets Isabella Bank 139,897 11.56 % 48,404 7.250 % 72,605 8.00 % Consolidated 149,013 12.23 % 48,744 7.250 % N/A N/A Total capital to risk weighted assets Isabella Bank 147,597 12.20 % 96,807 9.250 % 121,009 10.00 % Consolidated 156,713 12.86 % 97,488 9.250 % N/A N/A Tier 1 capital to average assets Isabella Bank 139,897 8.07 % 69,373 4.000 % 86,717 5.00 % Consolidated 149,013 8.54 % 69,827 4.000 % N/A N/A |
Computation of Earnings Per C_2
Computation of Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of earnings per common share | Earnings per common share have been computed based on the following: 2018 2017 2016 Average number of common shares outstanding for basic calculation 7,872,077 7,841,451 7,813,739 Average potential effect of common shares in the Directors Plan (1) 200,771 192,286 185,611 Average number of common shares outstanding used to calculate diluted earnings per common share 8,072,848 8,033,737 7,999,350 Net income $ 14,021 $ 13,237 $ 13,799 Earnings per common share Basic $ 1.78 $ 1.69 $ 1.77 Diluted $ 1.74 $ 1.65 $ 1.73 (1) Exclusive of shares held in the Rabbi Trust |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Changes in the projected benefit obligation, plan assets and Accrued pension benefit costs | Changes in the projected benefit obligation and plan assets during each year, the funded status of the plan, and the net amount recognized in our consolidated balance sheets using an actuarial measurement date of December 31 , are summarized as follows during the years ended December 31 : 2018 2017 Change in benefit obligation Benefit obligation, January 1 $ 11,381 $ 11,448 Interest cost 388 444 Actuarial (gain) loss (1,194 ) 578 Benefits paid, including plan expenses (1,163 ) (1,089 ) Benefit obligation, December 31 9,412 11,381 Change in plan assets Fair value of plan assets, January 1 9,469 9,325 Investment (loss) return (541 ) 1,033 Contributions — 200 Benefits paid, including plan expenses (1,163 ) (1,089 ) Fair value of plan assets, December 31 7,765 9,469 Deficiency in funded status at December 31, included on the consolidated balance sheets in accrued interest payable and other liabilities $ (1,647 ) $ (1,912 ) 2018 2017 Change in accrued pension benefit costs Accrued benefit cost at January 1 $ (1,912 ) $ (2,123 ) Contributions — 200 Net periodic benefit cost (345 ) (412 ) Net change in unrecognized actuarial loss and prior service cost 610 423 Accrued pension benefit cost at December 31 $ (1,647 ) $ (1,912 ) |
Components of net periodic benefit cost | The components of projected net periodic benefit cost are as follows for the year ending: December 31, 2019 Interest cost on projected benefit obligation $ 378 Expected return on plan assets (452 ) Amortization of unrecognized actuarial net loss 214 Net periodic benefit cost $ 140 The components of net periodic benefit cost are as follows for the years ended December 31 : 2018 2017 2016 Interest cost on benefit obligation $ 388 $ 444 $ 485 Expected return on plan assets (554 ) (546 ) (560 ) Amortization of unrecognized actuarial net loss 242 279 313 Settlement loss 269 235 — Net periodic benefit cost $ 345 $ 412 $ 238 |
Actuarial assumptions used | The actuarial assumptions used in determining the benefit obligation are as follows for the years ended December 31 : 2018 2017 2016 Discount rate 4.11 % 3.48 % 3.96 % Expected long-term rate of return on plan assets 6.00 % 6.00 % 6.00 % The actuarial weighted average assumptions used in determining the net periodic pension costs are as follows for the years ended December 31 : 2018 2017 2016 Discount rate 3.48 % 3.96 % 4.13 % Expected long-term rate of return on plan assets 6.00 % 6.00 % 6.00 % |
Fair values of the Corporations pension plan assets by asset category | The fair values of our pension plan assets by asset category were as follows as of December 31 : 2018 2017 Total (Level 2) Total (Level 2) Short-term investments $ 98 $ 98 $ 300 $ 300 Common collective trusts Fixed income 2,924 2,924 3,815 3,815 Equity investments 4,743 4,743 5,354 5,354 Total $ 7,765 $ 7,765 $ 9,469 $ 9,469 |
Summary of Estimated future benefit payments | Estimated future benefit payments are as follows for the next ten years: Estimated Benefit Payments 2019 $ 450 2020 486 2021 479 2022 481 2023 481 2024 - 2028 2,540 |
Components of shares eligible to be issued under the Directors Plan | The components of shares eligible to be issued under the Directors Plan were as follows as of December 31 : 2018 2017 Eligible Market Eligible Market Unissued 203,498 $ 4,591 195,140 $ 5,513 Shares held in Rabbi Trust 16,673 376 31,769 897 Total 220,171 $ 4,967 226,909 $ 6,410 |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 12 Months Ended |
Dec. 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 years ended December 31 : 2018 2017 2016 Audit, consulting, and legal fees $ 2,263 $ 2,043 $ 1,952 ATM and debit card fees 1,036 1,181 887 Loan underwriting fees 1,016 556 535 Director fees 858 856 851 FDIC insurance premiums 726 642 719 Donations and community relations 710 657 582 Marketing costs 596 568 586 OTTI on AFS securities — — 770 All other 3,558 3,541 3,343 Total other $ 10,763 $ 10,044 $ 10,225 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of the consolidated provision for federal income taxes | Components of the consolidated provision for federal income taxes are as follows for the years ended December 31 : 2018 2017 2016 Currently payable $ 1,088 $ 180 $ 2,630 Deferred expense (benefit) 275 2,836 (282 ) Income tax expense $ 1,363 $ 3,016 $ 2,348 |
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 is as follows for the year ended December 31 : 2018 2017 2016 Income taxes at statutory rate (21% in 2018 and 34% in 2017 and 2016) $ 3,231 $ 5,526 $ 5,490 Effect of nontaxable income Interest income on tax exempt municipal securities (1,106 ) (1,889 ) (1,938 ) Earnings on corporate owned life insurance policies (148 ) (247 ) (419 ) Deferred tax adjustment resulting from the statutory rate reduction pursuant to the Tax Act — 319 — Other 231 34 (154 ) Total effect of nontaxable income (1,023 ) (1,783 ) (2,511 ) Effect of nondeductible expenses 113 149 143 Effect of tax credits (958 ) (876 ) (774 ) Federal income tax expense $ 1,363 $ 3,016 $ 2,348 |
Summary of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities, measured at the 21% statutory rate, included in other assets in the accompanying consolidated balance sheets, are as follows as of December 31 : 2018 2017 Deferred tax assets Allowance for loan losses $ 1,304 $ 1,076 Deferred directors’ fees 1,667 1,758 Employee benefit plans 81 70 Core deposit premium and acquisition expenses 752 733 Net unrecognized actuarial losses on pension plan 729 857 Net unrealized losses on available-for-sale securities 1,211 — Life insurance death benefit payable 497 497 Alternative minimum tax 710 1,463 Other 716 607 Total deferred tax assets 7,667 7,061 Deferred tax liabilities Prepaid pension cost 383 455 Premises and equipment 1,548 1,728 Accretion on securities 41 40 Core deposit premium and acquisition expenses 946 909 Net unrealized gains on available-for-sale securities — 204 Net unrealized gains on derivative instruments 68 61 Other 1,696 1,684 Total deferred tax liabilities 4,682 5,081 Net deferred tax assets $ 2,985 $ 1,980 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 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 years ended December 31 : 2018 2017 2016 Auction Rate Money Market Preferred Stocks All Other AFS Securities Total 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 $ (495 ) $ (6,734 ) $ (7,229 ) $ 407 $ (118 ) $ 289 $ 54 $ (5,919 ) $ (5,865 ) Reclassification adjustment for net (gains) losses included in net income — — — — (142 ) (142 ) — (245 ) (245 ) Reclassification adjustment for impairment loss included in net income — — — — — — — 770 770 Net unrealized gains (losses) (495 ) (6,734 ) (7,229 ) 407 (260 ) 147 54 (5,394 ) (5,340 ) Tax effect (1) — 1,415 1,415 — 89 89 — 1,834 1,834 Unrealized gains (losses), net of tax $ (495 ) $ (5,319 ) $ (5,814 ) $ 407 $ (171 ) $ 236 $ 54 $ (3,560 ) $ (3,506 ) (1) Calculations are based on a federal income tax rate of 21% in 2018 and 34% in 2017 and 2016. The following table provides a roll-forward of the changes in AOCI by component for the years ended December 31, 2016 , 2017 and 2018 (net of tax): Unrealized Unrealized Change in Unrecognized Pension Cost on Defined Total Balance, January 1, 2016 $ 3,536 $ — $ (3,315 ) $ 221 OCI before reclassifications (5,865 ) 248 282 (5,335 ) Amounts reclassified from AOCI 525 — 238 763 Subtotal (5,340 ) 248 520 (4,572 ) Tax effect 1,834 (84 ) (177 ) 1,573 OCI, net of tax (3,506 ) 164 343 (2,999 ) Balance, December 31, 2016 30 164 (2,972 ) (2,778 ) OCI before reclassifications 289 43 11 343 Amounts reclassified from AOCI (142 ) — 412 270 Subtotal 147 43 423 613 Tax effect 89 (15 ) (144 ) (70 ) OCI, net of tax 236 28 279 543 One-time non-cash tax rate adjustment due to the Tax Act 125 38 (530 ) (367 ) Balance, December 31, 2017 391 230 (3,223 ) (2,602 ) OCI before reclassifications (7,229 ) 33 265 (6,931 ) Amounts reclassified from AOCI — — 345 345 Subtotal (7,229 ) 33 610 (6,586 ) Tax effect 1,415 (7 ) (128 ) 1,280 OCI, net of tax (5,814 ) 26 482 (5,306 ) Adoption of ASU 2016-01 223 — — 223 Balance, December 31, 2018 $ (5,200 ) $ 256 $ (2,741 ) $ (7,685 ) |
Details about accumulated other comprehensive income components | The following table details reclassification adjustments and the related affected line items in our consolidated statements of income for the years ended December 31 : Details about AOCI components Amount Affected Line Item in the 2018 2017 2016 Unrealized holding gains (losses) on AFS securities $ — $ 142 $ 245 Net gains on sale of AFS securities — — (770 ) Other noninterest expenses — 142 (525 ) Income before federal income tax expense — 48 (179 ) Federal income tax expense (benefit) (1) $ — $ 94 $ (346 ) Net income Change in unrecognized pension cost on defined benefit pension plan $ 345 $ 412 $ 238 Other noninterest expenses 72 140 81 Federal income tax expense (1) $ 273 $ 272 $ 157 Net income (1) Calculations are based on a federal income tax rate of 21% in 2018 and 34% in 2017 and 2016. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 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: December 31, 2018 Valuation Technique Fair Value Unobservable Input Actual Range Discount applied to collateral: Real Estate 20% - 30% Equipment 20% - 40% Cash crop inventory 30% - 40% Discounted value $20,045 Livestock 30% Other inventory 45% - 50% Accounts receivable 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 December 31 : 2018 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 73,471 $ 73,471 $ 73,471 $ — $ — Mortgage loans AFS 358 365 — 365 — Gross loans 1,128,707 1,099,645 — — 1,099,645 Less allowance for loan and lease losses 8,375 8,375 — — 8,375 Net loans 1,120,332 1,091,270 — — 1,091,270 Accrued interest receivable 6,928 6,928 6,928 — — Equity securities without readily determinable fair values (1) 24,948 N/A — — — OMSR 2,434 2,602 — 2,602 — LIABILITIES Deposits without stated maturities 859,073 859,073 859,073 — — Deposits with stated maturities 433,620 425,993 — 425,993 — Borrowed funds 340,299 333,829 — 333,829 — Accrued interest payable 826 826 826 — — 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 December 31 : 2018 2017 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Recurring items AFS securities Government-sponsored enterprises $ 170 $ — $ 170 $ — $ 216 $ — $ 216 $ — States and political subdivisions 190,866 — 190,866 — 208,474 — 208,474 — Auction rate money market preferred 2,554 — 2,554 — 3,049 — 3,049 — Mortgage-backed securities 184,484 — 184,484 — 208,797 — 208,797 — Collateralized mortgage obligations 116,760 — 116,760 — 128,194 — 128,194 — Total AFS securities 494,834 — 494,834 — 548,730 — 548,730 — Equity securities — — — — 3,577 3,577 — — Derivative instruments 323 — 323 — 291 — 291 — Nonrecurring items Impaired loans (net of the ALLL) 20,045 — — 20,045 15,956 — — 15,956 Total $ 515,202 $ — $ 495,157 $ 20,045 $ 568,554 $ 3,577 $ 549,021 $ 15,956 Percent of assets and liabilities measured at fair value — % 96.11 % 3.89 % 0.63 % 96.56 % 2.81 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Annual activity consisted of the following for the years ended December 31 : 2018 2017 Balance, January 1 $ 4,335 $ 3,946 New loans 1,184 3,895 Repayments (2,176 ) (3,506 ) Balance, December 31 $ 3,343 $ 4,335 The following table displays total asset balances of the Foundation as of December 31 : 2018 2017 2016 Total assets $ 1,731 $ 2,162 $ 2,213 |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Interim Condensed Balance Sheets | Condensed Balance Sheets December 31 2018 2017 ASSETS Cash on deposit at the Bank $ 2,499 $ 185 Investments in subsidiaries 143,942 145,962 Premises and equipment 1,912 1,950 Other assets 51,674 52,253 TOTAL ASSETS $ 200,027 $ 200,350 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 4,508 $ 5,445 Shareholders' equity 195,519 194,905 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 200,027 $ 200,350 |
Interim Condensed Statements of Income | Condensed Statements of Income Year Ended December 31 2018 2017 2016 Income Dividends from subsidiaries $ 13,100 $ 9,600 $ 7,400 Interest income 1 2 14 Management fee and other 3,030 6,463 6,574 Total income 16,131 16,065 13,988 Expenses Compensation and benefits 4,132 5,196 4,898 Occupancy and equipment 513 1,779 1,696 Audit and related fees 368 527 536 Other 1,615 2,566 2,120 Total expenses 6,628 10,068 9,250 Income before income tax benefit and equity in undistributed earnings of subsidiaries 9,503 5,997 4,738 Federal income tax benefit 749 91 1,058 Income before equity in undistributed earnings of subsidiaries 10,252 6,088 5,796 Undistributed earnings of subsidiaries 3,769 7,149 8,003 Net income $ 14,021 $ 13,237 $ 13,799 |
Interim Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31 2018 2017 2016 Operating activities Net income $ 14,021 $ 13,237 $ 13,799 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (3,769 ) (7,149 ) (8,003 ) Undistributed earnings of equity securities without readily determinable fair values (144 ) 40 791 Share-based payment awards under equity compensation plan 612 640 573 Depreciation 134 154 156 Deferred income tax expense (benefit) (31 ) 792 147 Changes in operating assets and liabilities which provided (used) cash Other assets 1,237 42 (44 ) Accrued interest and other liabilities (937 ) (1,590 ) (2,669 ) Net cash provided by (used in) operating activities 11,123 6,166 4,750 Investing activities Maturities, calls, principal payments, and sales of AFS securities — 249 — Sales (purchases) of premises and equipment (96 ) (113 ) (133 ) Net cash provided by (used in) investing activities (96 ) 136 (133 ) Financing activities Net increase (decrease) in borrowed funds — — — Cash dividends paid on common stock (8,169 ) (7,990 ) (7,645 ) Proceeds from the issuance of common stock 6,864 6,177 5,023 Common stock repurchased (7,007 ) (5,181 ) (4,440 ) Common stock purchased for deferred compensation obligations (401 ) (420 ) (383 ) Net cash provided by (used in) financing activities (8,713 ) (7,414 ) (7,445 ) Increase (decrease) in cash and cash equivalents 2,314 (1,112 ) (2,828 ) Cash and cash equivalents at beginning of period 185 1,297 4,125 Cash and cash equivalents at end of period $ 2,499 $ 185 $ 1,297 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Equity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
FHLB Stock | $ 15,050 | $ 13,700 |
FRB Stock | 1,999 | 1,999 |
Other | 334 | 334 |
Total | 24,948 | 23,454 |
Investment in Corporate Settlement Solutions [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 7,565 | $ 7,421 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Locationshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | |
Accounting Policies [Abstract] | |||
Other Real Estate, Foreclosed Assets, and Repossessed Assets | $ 355 | $ 291 | |
Number of location of banking operations | Location | 30 | ||
Period for federal fund sold | 1 day | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balance of mortgages serviced for others | $ 259,481 | 266,789 | |
Capitalized mortgage loans on real estate carrying amount | 2,435 | 2,409 | |
Corporation recorded servicing fee revenue | 651 | 671 | $ 696 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Present value of the post retirement benefits payable | 2,751 | 2,751 | |
Periodic policy maintenance costs | $ 0 | $ 577 | $ (8) |
Director [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Eligible shares, total | shares | 220,171 | 226,909 | |
Common stock, shares held in Rabbi Trust | shares | 16,673 | 31,769 | |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of the related assets | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of the related assets | 40 years | ||
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 | ||
Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maximum days of consumer loan charged off | 180 days |
AFS Securities (Amortized cost
AFS Securities (Amortized cost and fair value of AFS securities, with gross unrealized gains and losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 501,245 | $ 547,912 |
Gross Unrealized Gains | 2,272 | 5,036 |
Gross Unrealized Losses | 8,683 | 4,218 |
AFS securities | 494,834 | 548,730 |
Debt Securities, Available-for-sale | 494,834 | 548,730 |
Government sponsored enterprises [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 172 | 217 |
Amortized Cost | 172 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 2 | 1 |
Debt Securities, Available-for-sale | 170 | 216 |
States and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 188,992 | 204,131 |
Amortized Cost | 188,992 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2,125 | 4,486 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 251 | 143 |
Debt Securities, Available-for-sale | 190,866 | 208,474 |
Auction rate money market preferred [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 3,200 | 3,200 |
Amortized Cost | 3,200 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 646 | 151 |
Debt Securities, Available-for-sale | 2,554 | 3,049 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 189,688 | 210,757 |
Amortized Cost | 189,688 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 76 | 390 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 5,280 | 2,350 |
Debt Securities, Available-for-sale | 184,484 | 208,797 |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 119,193 | 129,607 |
Amortized Cost | 119,193 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 71 | 160 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 2,504 | 1,573 |
Debt Securities, Available-for-sale | $ 116,760 | $ 128,194 |
AFS Securities (Amortized cos_2
AFS Securities (Amortized cost and fair value of AFS securities by contractual maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | $ 23,151 | |
Maturing, After One Year But Within Five Years | 82,073 | |
Maturing, After Five Years But Within Ten Years | 55,923 | |
Maturing, After Ten Years | 28,017 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 312,081 | |
Amortized Cost | 501,245 | $ 547,912 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less, Fair value | 23,189 | |
Maturing, After One Year But Within Five Years, Fair value | 82,662 | |
Maturing, After Five Years But Within Ten Years, Fair value | 56,842 | |
Maturing, After Ten Years, Fair value | 28,343 | |
Securities With Variable Monthly Payments or Noncontractual Maturities, Fair value | 303,798 | |
Total, Fair value | 494,834 | $ 548,730 |
Government sponsored enterprises [Member] | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | 0 | |
Maturing, After One Year But Within Five Years | 172 | |
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 | 172 | |
States and political subdivisions [Member] | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | 23,151 | |
Maturing, After One Year But Within Five Years | 81,901 | |
Maturing, After Five Years But Within Ten Years | 55,923 | |
Maturing, After Ten Years | 28,017 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 | |
Amortized Cost | 188,992 | |
Auction rate money market preferred [Member] | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, 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] | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, 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 | 189,688 | |
Amortized Cost | 189,688 | |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, 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 | 119,193 | |
Amortized Cost | $ 119,193 |
AFS Securities (Activity relate
AFS Securities (Activity related to sales of AFS securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of AFS of securities | $ 0 | $ 12,827 | $ 35,664 |
Gross realized gains (losses) | 142 | 245 | |
Applicable income tax expense | $ 48 | $ 83 |
AFS Securities (AFS securities
AFS Securities (AFS securities with gross unrealized losses) (Details) $ in Thousands | Dec. 31, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 1,178 | $ 1,298 |
Fair Value, Less Than Twelve Months | 80,103 | 164,797 |
Gross Unrealized Losses, Twelve Months or More | 7,505 | 2,920 |
Fair Value, Twelve Months or More | 229,996 | 104,610 |
Total Unrealized Losses | $ 8,683 | $ 4,218 |
Number of Securities in an unrealized loss position, Less Than Twelve Months, Fair Value | Securities | 66 | 81 |
Number of Securities in an unrealized loss position, Twelve Months or More, Fair Value | Securities | 102 | 24 |
Number of Securities in an unrealized loss position, Total Unrealized Losses | Securities | 168 | 105 |
Government sponsored enterprises [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 0 | $ 1 |
Fair Value, Less Than Twelve Months | 0 | 216 |
Gross Unrealized Losses, Twelve Months or More | 2 | 0 |
Fair Value, Twelve Months or More | 170 | 0 |
Total Unrealized Losses | 2 | 1 |
States and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 83 | 142 |
Fair Value, Less Than Twelve Months | 14,732 | 16,139 |
Gross Unrealized Losses, Twelve Months or More | 168 | 1 |
Fair Value, Twelve Months or More | 15,090 | 188 |
Total Unrealized Losses | 251 | 143 |
Auction rate money market preferred [Member] | ||
Debt Securities, Available-for-sale [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 | 646 | 151 |
Fair Value, Twelve Months or More | 2,554 | 3,049 |
Total Unrealized Losses | 646 | 151 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 896 | 454 |
Fair Value, Less Than Twelve Months | 43,485 | 72,007 |
Gross Unrealized Losses, Twelve Months or More | 4,384 | 1,896 |
Fair Value, Twelve Months or More | 124,253 | 76,065 |
Total Unrealized Losses | 5,280 | 2,350 |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 199 | 701 |
Fair Value, Less Than Twelve Months | 21,886 | 76,435 |
Gross Unrealized Losses, Twelve Months or More | 2,305 | 872 |
Fair Value, Twelve Months or More | 87,929 | 25,308 |
Total Unrealized Losses | $ 2,504 | $ 1,573 |
AFS Securities (Roll-forward of
AFS Securities (Roll-forward of credit related impairment recognized in earnings) (Details) - Available-for-sale Securities [Member] - Auction Rate Securities [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale [Abstract] | |||
Balance at beginning of the period | $ 770 | $ 770 | $ 0 |
Additions to credit losses for which no previous OTTI was recognized | 0 | 0 | 770 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold | 0 | 0 | 0 |
Balance at end of the period | $ 770 | $ 770 | $ 770 |
AFS Securities (Narrative) (Det
AFS Securities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
AFS securities impairment loss | $ 0 | $ 0 | $ 770 |
Loans and ALLL (Summary of chan
Loans and ALLL (Summary of changes in ALLL by segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Allowance | $ 8,375 | $ 7,700 | |
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 | (1,101) | (771) | |
Allowance for loan losses, Recoveries | 798 | 818 | |
Allowance for loan losses, Provision for loan losses | 978 | 253 | $ (135) |
Allowance for loan losses, Ending Balance | 8,375 | 7,700 | 7,400 |
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 | (626) | (265) | |
Allowance for loan losses, Recoveries | 328 | 453 | |
Allowance for loan losses, Provision for loan losses | 1,155 | (296) | |
Allowance for loan losses, Ending Balance | 2,563 | 1,706 | 1,814 |
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 | 164 | (273) | |
Allowance for loan losses, Ending Balance | 775 | 611 | 884 |
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 | (151) | (200) | |
Allowance for loan losses, Recoveries | 261 | 206 | |
Allowance for loan losses, Provision for loan losses | (681) | (107) | |
Allowance for loan losses, Ending Balance | 1,992 | 2,563 | 2,664 |
Consumer [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 | (324) | (306) | |
Allowance for loan losses, Recoveries | 209 | 159 | |
Allowance for loan losses, Provision for loan losses | 72 | 423 | |
Allowance for loan losses, Ending Balance | 857 | 900 | 624 |
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 | 268 | 506 | |
Allowance for loan losses, Ending Balance | $ 2,188 | $ 1,920 | $ 1,414 |
Loans and ALLL (Summary of reco
Loans and ALLL (Summary of recorded investment in loans by segments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment, ALLL | $ 1,938 | $ 2,130 | |
Collectively evaluated for impairment, ALLL | 6,437 | 5,570 | |
Total, ALLL | 8,375 | 7,700 | $ 7,400 |
Individually evaluated for impairment, Loans | 31,099 | 26,653 | |
Collectively evaluated for impairment, Loans | 1,097,608 | 1,064,866 | |
Total | 1,128,707 | 1,091,519 | |
Commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment, ALLL | 443 | 650 | |
Collectively evaluated for impairment, ALLL | 2,120 | 1,056 | |
Total, ALLL | 2,563 | 1,706 | 1,814 |
Individually evaluated for impairment, Loans | 9,899 | 8,099 | |
Collectively evaluated for impairment, Loans | 649,630 | 626,660 | |
Total | 659,529 | 634,759 | |
Agricultural [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment, ALLL | 132 | 0 | |
Collectively evaluated for impairment, ALLL | 643 | 611 | |
Total, ALLL | 775 | 611 | 884 |
Individually evaluated for impairment, Loans | 14,298 | 10,598 | |
Collectively evaluated for impairment, Loans | 112,863 | 117,671 | |
Total | 127,161 | 128,269 | |
Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment, ALLL | 1,363 | 1,480 | |
Collectively evaluated for impairment, ALLL | 629 | 1,083 | |
Total, ALLL | 1,992 | 2,563 | 2,664 |
Individually evaluated for impairment, Loans | 6,893 | 7,939 | |
Collectively evaluated for impairment, Loans | 268,450 | 264,429 | |
Total | 275,343 | 272,368 | |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment, ALLL | 0 | 0 | |
Collectively evaluated for impairment, ALLL | 857 | 900 | |
Total, ALLL | 857 | 900 | 624 |
Individually evaluated for impairment, Loans | 9 | 17 | |
Collectively evaluated for impairment, Loans | 66,665 | 56,106 | |
Total | 66,674 | 56,123 | |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment, ALLL | 0 | 0 | |
Collectively evaluated for impairment, ALLL | 2,188 | 1,920 | |
Total, ALLL | $ 2,188 | $ 1,920 | $ 1,414 |
Loans and ALLL (Credit quality
Loans and ALLL (Credit quality indicators for commercial and agricultural credit exposures) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 1,128,707 | $ 1,091,519 |
Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 659,529 | 634,759 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 497,687 | 481,654 |
Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 150,049 | 141,024 |
Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,793 | 12,081 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 127,161 | 128,269 |
Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 87,320 | 88,165 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 39,841 | 40,104 |
Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 786,690 | 763,028 |
1 - Excellent [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 52 | 340 |
1 - Excellent [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 21 | 24 |
1 - Excellent [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 31 | 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 | 79 | 34 |
1 - Excellent [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 51 | 0 |
1 - Excellent [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 28 | 34 |
1 - Excellent [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 131 | 374 |
2 - High quality [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 18,037 | 20,664 |
2 - High quality [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,564 | 8,402 |
2 - High quality [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 13,473 | 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 | 3,342 | 3,933 |
2 - High quality [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,729 | 2,909 |
2 - High quality [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 613 | 1,024 |
2 - High quality [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 21,379 | 24,597 |
3 - High satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 182,565 | 190,575 |
3 - High satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 127,573 | 131,826 |
3 - High satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 43,199 | 46,668 |
3 - High satisfactory [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,793 | 12,081 |
3 - High satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 25,364 | 29,939 |
3 - High satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 18,325 | 21,072 |
3 - High satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,039 | 8,867 |
3 - High satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 207,929 | 220,514 |
4 - Low satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 429,554 | 401,757 |
4 - Low satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 344,920 | 326,166 |
4 - Low satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 84,634 | 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 | 65,980 | 66,302 |
4 - Low satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 46,636 | 47,835 |
4 - Low satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 19,344 | 18,467 |
4 - Low satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 495,534 | 468,059 |
5 - Special mention [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 18,134 | 12,875 |
5 - Special mention [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 12,847 | 8,986 |
5 - Special mention [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,287 | 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 | 16,144 | 19,039 |
5 - Special mention [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,520 | 10,493 |
5 - Special mention [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,624 | 8,546 |
5 - Special mention [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 34,278 | 31,914 |
6 - Substandard [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 9,430 | 7,819 |
6 - Substandard [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,428 | 5,521 |
6 - Substandard [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,002 | 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 | 11,303 | 7,072 |
6 - Substandard [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,343 | 4,325 |
6 - Substandard [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,960 | 2,747 |
6 - Substandard [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 20,733 | 14,891 |
7 - Vulnerable [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,757 | 729 |
7 - Vulnerable [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 334 | 729 |
7 - Vulnerable [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,423 | 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 | 4,949 | 1,950 |
7 - Vulnerable [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,716 | 1,531 |
7 - Vulnerable [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,233 | 419 |
7 - Vulnerable [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,706 | 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 |
Loss [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [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 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 113 | $ 395 |
Nonaccrual | 7,260 | 3,027 |
Total Past Due and Nonaccrual | 11,412 | 9,836 |
Current | 1,117,295 | 1,081,683 |
Total | 1,128,707 | 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 | 0 | 72 |
Nonaccrual | 1,757 | 729 |
Total Past Due and Nonaccrual | 2,722 | 2,518 |
Current | 656,807 | 632,241 |
Total | 659,529 | 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 | 0 | 54 |
Nonaccrual | 334 | 729 |
Total Past Due and Nonaccrual | 394 | 1,403 |
Current | 497,293 | 480,251 |
Total | 497,687 | 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 | 1,423 | 0 |
Total Past Due and Nonaccrual | 2,328 | 1,115 |
Current | 147,721 | 139,909 |
Total | 150,049 | 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 | 11,793 | 12,081 |
Total | 11,793 | 12,081 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 104 |
Nonaccrual | 4,949 | 1,950 |
Total Past Due and Nonaccrual | 5,377 | 2,367 |
Current | 121,784 | 125,902 |
Total | 127,161 | 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 | 0 | 0 |
Nonaccrual | 2,716 | 1,531 |
Total Past Due and Nonaccrual | 3,144 | 1,805 |
Current | 84,176 | 86,360 |
Total | 87,320 | 88,165 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 104 |
Nonaccrual | 2,233 | 419 |
Total Past Due and Nonaccrual | 2,233 | 562 |
Current | 37,608 | 39,542 |
Total | 39,841 | 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 | 113 | 209 |
Nonaccrual | 554 | 348 |
Total Past Due and Nonaccrual | 3,208 | 4,881 |
Current | 272,135 | 267,487 |
Total | 275,343 | 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 | 113 | 132 |
Nonaccrual | 554 | 325 |
Total Past Due and Nonaccrual | 3,124 | 4,409 |
Current | 233,438 | 225,007 |
Total | 236,562 | 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 | 0 | 0 |
Nonaccrual | 0 | 23 |
Total Past Due and Nonaccrual | 8 | 102 |
Current | 6,001 | 6,812 |
Total | 6,009 | 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 | 0 | 77 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 76 | 370 |
Current | 32,696 | 35,668 |
Total | 32,772 | 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 | 105 | 70 |
Current | 66,569 | 56,053 |
Total | 66,674 | 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 | 95 | 57 |
Current | 62,721 | 52,005 |
Total | 62,816 | 52,062 |
Consumer unsecured [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 | 10 | 13 |
Current | 3,848 | 4,048 |
Total | 3,858 | 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 | 3,202 | 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 | 337 | 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 | 60 | 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 | 277 | 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 | 428 | 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 | 428 | 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 | 0 | 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 | 2,332 | 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 | 2,254 | 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 | 2 | 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 | 76 | 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 | 105 | 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 | 95 | 37 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer unsecured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 10 | 13 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 837 | 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 | 628 | 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 | 0 | 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 | 628 | 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 | 0 | 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 | 0 | 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 | 0 | 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 | 209 | 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 | 203 | 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 | 6 | 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 | 0 | 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 [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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Outstanding Balance | $ 11,263 | $ 12,944 |
Impaired loans without a valuation allowance, Outstanding Balance | 19,836 | 13,709 |
Impaired loans, Outstanding Balance | 31,099 | 26,653 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 11,960 | 13,876 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 20,439 | 14,083 |
Impaired loans, Unpaid Principal Balance | 32,399 | 27,959 |
Impaired loans, Valuation Allowance | 1,938 | 2,130 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Average Outstanding Balance | 13,973 | 14,442 |
Impaired loans without a valuation allowance, Average Outstanding Balance | 16,532 | 10,873 |
Impaired loans, Average Outstanding Balance | 30,505 | 25,315 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with a valuation allowance, Interest Income Recognized | 406 | 695 |
Impaired loans without a valuation allowance, Interest Income Recognized | 986 | 586 |
Impaired loans, Interest Income Recognized | 1,392 | 1,281 |
Total commercial [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans, Outstanding Balance | 9,899 | 8,099 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans, Unpaid Principal Balance | 10,401 | 8,462 |
Impaired loans, Valuation Allowance | 443 | 650 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans, Average Outstanding Balance | 9,890 | 7,866 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans, Interest Income Recognized | 301 | 504 |
Commercial real estate [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Outstanding Balance | 3,969 | 4,089 |
Impaired loans without a valuation allowance, Outstanding Balance | 2,794 | 1,791 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 4,211 | 4,378 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 2,947 | 1,865 |
Impaired loans, Valuation Allowance | 437 | 626 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Average Outstanding Balance | 4,589 | 4,608 |
Impaired loans without a valuation allowance, Average Outstanding Balance | 2,728 | 1,585 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with a valuation allowance, Interest Income Recognized | 129 | 277 |
Impaired loans without a valuation allowance, Interest Income Recognized | 74 | 111 |
Commercial other [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Outstanding Balance | 12 | 995 |
Impaired loans without a valuation allowance, Outstanding Balance | 3,124 | 1,224 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 12 | 995 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 3,231 | 1,224 |
Impaired loans, Valuation Allowance | 6 | 24 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Average Outstanding Balance | 1,040 | 1,427 |
Impaired loans without a valuation allowance, Average Outstanding Balance | 1,533 | 246 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with a valuation allowance, Interest Income Recognized | 55 | 93 |
Impaired loans without a valuation allowance, Interest Income Recognized | 43 | 23 |
Total agricultural [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans, Outstanding Balance | 14,298 | 10,598 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans, Unpaid Principal Balance | 14,341 | 10,598 |
Impaired loans, Valuation Allowance | 132 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans, Average Outstanding Balance | 12,969 | 8,932 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans, Interest Income Recognized | 960 | 433 |
Agricultural real estate [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Outstanding Balance | 392 | 0 |
Impaired loans without a valuation allowance, Outstanding Balance | 7,618 | 7,913 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 392 | 0 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 7,618 | 7,913 |
Impaired loans, Valuation Allowance | 112 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Average Outstanding Balance | 606 | 0 |
Impaired loans without a valuation allowance, Average Outstanding Balance | 7,559 | 6,421 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with a valuation allowance, Interest Income Recognized | 50 | 0 |
Impaired loans without a valuation allowance, Interest Income Recognized | 585 | 307 |
Agricultural other [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Outstanding Balance | 44 | 0 |
Impaired loans without a valuation allowance, Outstanding Balance | 6,244 | 2,685 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 44 | 0 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 6,287 | 2,685 |
Impaired loans, Valuation Allowance | 20 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Average Outstanding Balance | 168 | 17 |
Impaired loans without a valuation allowance, Average Outstanding Balance | 4,636 | 2,494 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with a valuation allowance, Interest Income Recognized | 46 | 0 |
Impaired loans without a valuation allowance, Interest Income Recognized | 279 | 126 |
Total residential real estate [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans, Outstanding Balance | 6,893 | 7,939 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans, Unpaid Principal Balance | 7,648 | 8,882 |
Impaired loans, Valuation Allowance | 1,363 | 1,480 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans, Average Outstanding Balance | 7,634 | 8,496 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans, Interest Income Recognized | 131 | 344 |
Residential real estate senior liens [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Outstanding Balance | 6,834 | 7,816 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 7,289 | 8,459 |
Impaired loans, Valuation Allowance | 1,361 | 1,473 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Average Outstanding Balance | 7,545 | 8,296 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with a valuation allowance, Interest Income Recognized | 126 | 323 |
Residential real estate junior liens [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Outstanding Balance | 12 | 44 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 12 | 44 |
Impaired loans, Valuation Allowance | 2 | 7 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Average Outstanding Balance | 25 | 71 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 2 |
Residential real estate home equity lines of credit [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 | 47 | 79 |
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 | 347 | 379 |
Impaired loans, Valuation Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with a valuation allowance, Average Outstanding Balance | 0 | 23 |
Impaired loans without a valuation allowance, Average Outstanding Balance | 64 | 106 |
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 | 5 | 19 |
Total consumer [Member] | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans, Outstanding Balance | 9 | 17 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans, Unpaid Principal Balance | 9 | 17 |
Impaired loans, Valuation Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans, Average Outstanding Balance | 12 | 21 |
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 | 9 | 17 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 9 | 17 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans without a valuation allowance, Average Outstanding Balance | 12 | 21 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans without a valuation allowance, Interest Income Recognized | $ 0 | $ 0 |
Loans and ALLL (Summary of in_2
Loans and ALLL (Summary of information pertaining to TDRs) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 45 | 28 |
Pre-Modification Recorded Investment | $ 8,379 | $ 8,266 |
Post-Modification Recorded Investment | $ 8,356 | $ 8,266 |
Commercial other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 4 | 6 |
Pre-Modification Recorded Investment | $ 1,360 | $ 1,702 |
Post-Modification Recorded Investment | $ 1,360 | $ 1,702 |
Agricultural other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 31 | 15 |
Pre-Modification Recorded Investment | $ 6,318 | $ 6,092 |
Post-Modification Recorded Investment | $ 6,295 | $ 6,092 |
Total residential real estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 10 | 7 |
Pre-Modification Recorded Investment | $ 701 | $ 472 |
Post-Modification Recorded Investment | $ 701 | $ 472 |
Residential real estate senior liens [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 10 | 6 |
Pre-Modification Recorded Investment | $ 701 | $ 464 |
Post-Modification Recorded Investment | $ 701 | $ 464 |
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 |
Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 23 | 16 |
Pre-Modification Recorded Investment | $ 5,377 | $ 6,286 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Commercial other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 3 | 6 |
Pre-Modification Recorded Investment | $ 1,186 | $ 1,702 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Agricultural other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 13 | 4 |
Pre-Modification Recorded Investment | $ 3,693 | $ 4,120 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Total residential real estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 7 | 6 |
Pre-Modification Recorded Investment | $ 498 | $ 464 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 7 | 6 |
Pre-Modification Recorded Investment | $ 498 | $ 464 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 22 | 12 |
Pre-Modification Recorded Investment | $ 3,002 | $ 1,980 |
Interest Rate Below Market Reduction [Member] | Commercial other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 174 | $ 0 |
Interest Rate Below Market Reduction [Member] | Agricultural other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 18 | 11 |
Pre-Modification Recorded Investment | $ 2,625 | $ 1,972 |
Interest Rate Below Market Reduction [Member] | Total residential real estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 3 | 1 |
Pre-Modification Recorded Investment | $ 203 | $ 8 |
Interest Rate Below Market Reduction [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 3 | 0 |
Pre-Modification Recorded Investment | $ 203 | $ 0 |
Interest Rate Below Market Reduction [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 8 |
Loans and ALLL (Summary of Defa
Loans and ALLL (Summary of Defaulted TDRs) (Details) - loan | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 |
Loans and ALLL (Summary of TDR
Loans and ALLL (Summary of TDR loan balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Troubled debt restructurings | $ 26,951 | $ 26,197 |
Loans and ALLL (Narrative) (Det
Loans and ALLL (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($)NumberofLoan | Dec. 31, 2017USD ($)NumberofLoan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan | 0 | 0 | ||
Restructure of Loans through Forbearance of Principal or Accrued Interest | NumberofLoan | 0 | 0 | ||
Migration analysis of loan portfolio period | 5 years | |||
Threshold period of continuous performance to return loans to accrual status | 6 months | |||
Advance in connection with impaired loans | $ 542 | $ 472 | $ 542 | $ 472 |
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 | |||
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum days of consumer loan charged off | 180 days | |||
Consumer [Member] | Maximum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, amortization term | 15 years | |||
Commercial and Agricultural [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum percentage of loan | 0.80 | |||
Commercial and Agricultural [Member] | Customer Concentration Risk [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum amount of loans | $ 15,000 | |||
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 | $ 1,000 | |||
Residential, Privately Insured, Financing Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum percentage of loan | 0.80 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 71,261 | $ 69,463 |
Less: accumulated depreciation | 43,446 | 41,013 |
Premises and equipment, net | 27,815 | 28,450 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,336 | 6,336 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 30,100 | 29,661 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 34,825 | $ 33,466 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 2,940 | $ 2,902 | $ 2,821 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Identifiable intangible assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Intangible Assets | $ 169 | |
Core deposit premium resulting from acquisitions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 5,579 | $ 5,579 |
Accumulated Amortization | 5,410 | 5,314 |
Net Intangible Assets | $ 169 | $ 265 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Estimated amortization expense) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Summary of estimated amortization expense associated with identifiable intangibles | |
2016 | $ 71 |
2017 | 48 |
2018 | 29 |
2018 | 15 |
2019 | 2 |
Thereafter | 4 |
Net Intangible Assets | $ 169 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Carrying amount of goodwill | $ 48,282 | $ 48,282 | |
Amortization expense of identifiable intangible assets | $ 96 | $ 119 | $ 162 |
Borrowed Funds (Borrowed funds
Borrowed Funds (Borrowed funds obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Debt [Line Items] | ||
Borrowed funds | $ 340,299 | $ 344,878 |
Borrowed funds, Rate | 1.95% | 1.65% |
Securities Sold under Agreements to Repurchase [Member] | ||
Schedule of Debt [Line Items] | ||
Borrowed funds | $ 40,299 | $ 54,878 |
Borrowed funds, Rate | 0.11% | 0.12% |
Federal Home Loan Bank Advances [Member] | ||
Schedule of Debt [Line Items] | ||
Borrowed funds | $ 300,000 | $ 290,000 |
Borrowed funds, Rate | 2.20% | 1.94% |
Deposits (Scheduled maturities
Deposits (Scheduled maturities of time deposits) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Scheduled maturities of time deposits | |
2015 | $ 232,349 |
2016 | 56,051 |
2017 | 65,036 |
2018 | 41,502 |
2019 | 31,714 |
Thereafter | 6,968 |
Time Deposits, Total | $ 433,620 |
Borrowed Funds (Maturity and we
Borrowed Funds (Maturity and weighted average interest rates of FHLB advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB advances | $ 300,000 | $ 290,000 | |
FHLB advances, rate | 2.20% | 1.94% | |
Fixed Rate Advances Due 2018 [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB fixed rate advances | $ 0 | $ 70,000 | |
FHLB advances, rate | 0.00% | 1.96% | |
Fixed Rate Advances Due 2019 [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB fixed rate advances | $ 100,000 | $ 85,000 | |
FHLB advances, rate | 1.94% | 1.87% | |
Fixed Rate Advances Due 2020 [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB fixed rate advances | $ 55,000 | $ 35,000 | |
FHLB advances, rate | 2.18% | 1.80% | |
Fixed Rate Advances Due 2021 [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB fixed rate advances | $ 50,000 | $ 50,000 | |
FHLB advances, rate | 1.91% | 1.91% | |
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 | [1] | $ 10,000 | $ 10,000 |
FHLB advances, rate | [1] | 2.93% | 1.72% |
Federal Home Loan Bank, Advances, Fixed Rate Due 2022 [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB fixed rate advances | $ 20,000 | $ 20,000 | |
FHLB advances, rate | 1.97% | 1.97% | |
Fixed Rate Advances Due 2023 [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB fixed rate advances | $ 35,000 | $ 10,000 | |
FHLB advances, rate | 3.17% | 3.90% | |
Federal Home Loan Bank, Advances, Fixed Rate Due 2024 [Member] [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB fixed rate advances | $ 20,000 | $ 0 | |
FHLB advances, rate | 2.96% | 0.00% | |
Federal Home Loan Bank, Advances, Fixed Rate Due 2026 [Member] | |||
Federal Home Loan Bank, Advances [Line Items] | |||
FHLB fixed rate advances | $ 10,000 | $ 10,000 | |
FHLB advances, rate | 1.17% | 1.17% | |
[1] | Hedged advance (see "Derivative Instruments" section below) |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |||
Interest Expense, Time Deposits, Greater than $250,000 | $ 1,280 | $ 825 | $ 678 |
Borrowed Funds (Short-term borr
Borrowed Funds (Short-term borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Maximum Month End Balance | $ 63,133 | $ 58,464 |
Quarter to Date Average Balance | $ 38,036 | $ 55,206 |
Weighted Average Interest Rate During the Period | 0.10% | 0.13% |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Maximum Month End Balance | $ 16,200 | $ 5,965 |
Quarter to Date Average Balance | $ 3,741 | $ 2,726 |
Weighted Average Interest Rate During the Period | 1.78% | 1.15% |
Federal Reserve Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
Maximum Month End Balance | $ 0 | $ 0 |
Quarter to Date Average Balance | $ 0 | $ 43 |
Weighted Average Interest Rate During the Period | 0.00% | 1.54% |
Borrowed Funds (Pledged financi
Borrowed Funds (Pledged financial instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Pledged to secure borrowed funds | $ 431,430 | $ 410,988 |
Pledged to secure repurchase agreements | 40,316 | 54,898 |
Pledged for public deposits and for other purposes necessary or required by law | 58,107 | 27,976 |
Total | 529,853 | 493,862 |
Short-term Debt [Line Items] | ||
Pledged Financial Instruments, Available for Sale Securities, without Single Maturity Date | 40,316 | 54,898 |
State and Local Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Pledged Financial Instruments, Available for Sale Securities, without Single Maturity Date | 23,268 | 7,332 |
Mortgage Backed Securities, Other [Member] | ||
Short-term Debt [Line Items] | ||
Pledged Financial Instruments, Available for Sale Securities, without Single Maturity Date | 10,736 | 13,199 |
Collateralized Mortgage Obligations [Member] | ||
Short-term Debt [Line Items] | ||
Pledged Financial Instruments, Available for Sale Securities, without Single Maturity Date | $ 6,312 | $ 34,367 |
Borrowed Funds (Derivatives) (D
Borrowed Funds (Derivatives) (Details) - Cash Flow Hedging [Member] - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - London Interbank Offered Rate (LIBOR) [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | ||
Derivative, Remaining Maturity | 2 years 3 months 16 days | 3 years 3 months 16 days |
Pay Rate | 1.56% | 1.56% |
Notional Amount | $ 10,000 | $ 10,000 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ (323) | $ (291) |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||
Carrying value of securities sold under agreements to repurchase | $ 40,316 | $ 54,898 |
Fair value of securities sold under agreements to repurchase | 40,316 | $ 54,898 |
Additional borrowing capacity | $ 150,162 | |
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 | |
Federal Reserve Bank Advances [Member] | Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 1 day | |
Federal Reserve Bank Advances [Member] | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 4 days |
Off-Balance-Sheet Activities (C
Off-Balance-Sheet Activities (Contractual amount of credit related financial instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract Amount | $ 214,600 | $ 210,721 |
Maximum maturity period of commitments to extend credit | 1 year | |
Unfunded commitments under lines of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract Amount | $ 199,652 | 184,317 |
Commercial and standby letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract Amount | 1,723 | 1,622 |
Commitments to grant loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract Amount | $ 13,225 | $ 24,782 |
On-Balance Sheet Activities (Na
On-Balance Sheet Activities (Narrative) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Notional Amount of undesignated commitments | $ 1,088 | $ 805 |
Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Notional Amount of undesignated commitments | $ 1,089 | $ 1,843 |
Commitments and Other Matters (
Commitments and Other Matters (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Cash reserve balances | $ 1,220 | $ 1,458 |
Amount available for dividends without regulatory approval | $ 18,900 |
Minimum Regulatory Capital Re_3
Minimum Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Common Equity Tier 1 Capital [Abstract] | ||
Common Equity Tier One Capital | $ 154,705 | $ 149,013 |
CommonEquityTierOneRiskBasedCapitalToRiskWeightedAssets | 12.58% | 12.23% |
CommonEquityTierOneRiskBasedCapitalRequiredForCapitalAdequacy | $ 49,212 | $ 48,744 |
CommonEquityTierOneRiskBasedCapitalRequiredForCapitalAdequacyToRiskWeightedAssets | 6.375% | 5.75% |
Tier 1 capital to risk weighted assets | ||
Actual Amount | $ 154,705 | $ 149,013 |
Actual Ratio | 12.58% | 12.23% |
Minimum Capital Requirement Amount | $ 49,212 | $ 48,744 |
Minimum Capital Requirement Ratio | 7.875% | 7.25% |
Total capital to risk weighted assets | ||
Actual Amount | $ 163,080 | $ 156,713 |
Actual Ratio | 13.26% | 12.86% |
Minimum Capital Requirement Amount | $ 98,423 | $ 97,488 |
Minimum Capital Requirement Ratio | 9.875% | 9.25% |
Tier 1 capital to average assets | ||
Actual Amount | $ 154,705 | $ 149,013 |
Actual Ratio | 8.72% | 8.54% |
Minimum Capital Requirement Amount | $ 70,996 | $ 69,827 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Isabella Bank [Member] | ||
Common Equity Tier 1 Capital [Abstract] | ||
Common Equity Tier One Capital | $ 143,429 | $ 139,897 |
CommonEquityTierOneRiskBasedCapitalToRiskWeightedAssets | 11.75% | 11.56% |
CommonEquityTierOneRiskBasedCapitalRequiredForCapitalAdequacy | $ 48,832 | $ 48,404 |
CommonEquityTierOneRiskBasedCapitalRequiredForCapitalAdequacyToRiskWeightedAssets | 6.375% | 5.75% |
CommonEquityTierOneRiskBasedCapitalRequiredToBeWellCapitalized | $ 73,248 | $ 72,605 |
CommonEquityTierOneRiskBasedCapitalRequiredToBeWellCapitalizedToRiskWeightedAssets | 6.50% | 6.50% |
Tier 1 capital to risk weighted assets | ||
Actual Amount | $ 143,429 | $ 139,897 |
Actual Ratio | 11.75% | 11.56% |
Minimum Capital Requirement Amount | $ 48,832 | $ 48,404 |
Minimum Capital Requirement Ratio | 7.875% | 7.25% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 73,248 | $ 72,605 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Total capital to risk weighted assets | ||
Actual Amount | $ 151,804 | $ 147,597 |
Actual Ratio | 12.43% | 12.20% |
Minimum Capital Requirement Amount | $ 97,664 | $ 96,807 |
Minimum Capital Requirement Ratio | 9.875% | 9.25% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 122,080 | $ 121,009 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 capital to average assets | ||
Actual Amount | $ 143,429 | $ 139,897 |
Actual Ratio | 8.07% | 8.07% |
Minimum Capital Requirement Amount | $ 71,085 | $ 69,373 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 88,856 | $ 86,717 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Computation of Earnings Per C_3
Computation of Earnings Per Common Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Earnings Per Share [Abstract] | ||||
Average number of common shares outstanding for basic calculation | 7,872,077 | 7,841,451 | 7,813,739 | |
Average potential effect of common shares in the Directors Plan | [1] | 200,771 | 192,286 | 185,611 |
Average number of common shares outstanding used to calculate diluted earnings per common share | 8,072,848 | 8,033,737 | 7,999,350 | |
NET INCOME | $ 14,021 | $ 13,237 | $ 13,799 | |
Basic (in dollars per share) | $ 1.78 | $ 1.69 | $ 1.77 | |
Diluted (in dollars per share) | $ 1.74 | $ 1.65 | $ 1.73 | |
[1] | Exclusive of shares held in the Rabbi Trust |
Benefit Plans (Changes in the d
Benefit Plans (Changes in the defined benefit pension plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in benefit obligation | |||
Benefit obligation, January 1 | $ 11,381 | $ 11,448 | |
Interest cost | 388 | 444 | $ 485 |
Actuarial (gain) loss | (1,194) | 578 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 1,163 | 1,089 | |
Benefit obligation, December 31 | 9,412 | 11,381 | 11,448 |
Change in plan assets | |||
Fair value of plan assets, January 1 | 9,469 | 9,325 | |
Investment return | (541) | 1,033 | |
Contributions | 0 | 200 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 1,163 | 1,089 | |
Fair value of plan assets, December 31 | 7,765 | 9,469 | 9,325 |
Deficiency in funded status at December31, included on the consolidated balance sheets in accrued interest payable and other liabilities | (1,647) | (1,912) | |
Accrued benefit cost at January 1 | (1,912) | (2,123) | |
Contributions | 0 | 200 | |
Net periodic cost for the year | (345) | (412) | (238) |
Net change in unrecognized actuarial loss and prior service cost | 610 | 423 | 520 |
Accrued benefit cost at December 31 | $ (1,647) | $ (1,912) | $ (2,123) |
Benefit Plans (Components of ne
Benefit Plans (Components of net periodic benefit cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost on benefit obligation | $ 388 | $ 444 | $ 485 | |
Expected return on plan assets | (554) | (546) | (560) | |
Amortization of unrecognized actuarial net loss | 242 | 279 | 313 | |
Settlement loss | 269 | 235 | 0 | |
Net periodic benefit cost | $ 345 | $ 412 | $ 238 | |
Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost on benefit obligation | $ 378 | |||
Expected return on plan assets | (452) | |||
Amortization of unrecognized actuarial net loss | 214 | |||
Net periodic benefit cost | $ 140 |
Benefit Plans (Actuarial assump
Benefit Plans (Actuarial assumptions used) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.11% | 3.48% | 3.96% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.48% | 3.96% | 4.13% |
Actuarial weighted average assumptions used in determining the net periodic pension costs | |||
Expected long-term return on plan assets | 6.00% | 6.00% | 6.00% |
Benefit Plans (Fair values of o
Benefit Plans (Fair values of our pension plan assets by asset category) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of the Corporation's pension plan assets | $ 7,765 | $ 9,469 | $ 9,325 |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of the Corporation's pension plan assets | 7,765 | 9,469 | |
Short-term investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of the Corporation's pension plan assets | 98 | 300 | |
Short-term investments [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of the Corporation's pension plan assets | 98 | 300 | |
Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of the Corporation's pension plan assets | 2,924 | 3,815 | |
Fixed income [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of the Corporation's pension plan assets | 2,924 | 3,815 | |
Equity investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of the Corporation's pension plan assets | 4,743 | 5,354 | |
Equity investments [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair values of the Corporation's pension plan assets | $ 4,743 | $ 5,354 |
Benefit Plans (Estimated future
Benefit Plans (Estimated future benefit payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
2016 | $ 450 |
2017 | 486 |
2018 | 479 |
2019 | 481 |
2020 | 481 |
Years 2021 - 2025 | $ 2,540 |
Benefit Plans (Components of sh
Benefit Plans (Components of shares eligible to be issued under the Directors Plan) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Eligible shares, unissued | 16,673 | 31,769 |
Director [Member] | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Eligible shares, unissued | 203,498 | 195,140 |
Eligible shares, shares held in Rabbi Trust | 16,673 | 31,769 |
Eligible shares, total | 220,171 | 226,909 |
Market value, unissued | $ 4,591 | $ 5,513 |
Market value, shares held in Rabbi Trust | 376 | 897 |
Market value, total | $ 4,967 | $ 6,410 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) | Mar. 01, 2007 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | ||||
Employees contribution | 100.00% | |||
Corporation matching contribution, percent | 100.00% | |||
Employee contribution, percent | 5.00% | |||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (269,000) | $ (235,000) | $ 0 | |
Plan expenses | 743,000 | 713,000 | 686,000 | |
Highest consecutive years of compensation | 5 years | |||
Years of service | 10 years | |||
Accumulated other comprehensive income includes net unrecognized pension cost before income taxes | 3,470,000 | |||
Accumulated other comprehensive income expected to be amortized into benefit cost | 140,000 | |||
Allocated Share-based Compensation Expense | 45,000 | 38,000 | 70,000 | |
Contribution approved by Board of Directors to the ESOP (Discretionary) | 0 | |||
Compensation cost related to plan | $ 21,000 | $ 23,000 | $ 33,000 | |
Allocated shares outstanding related to the ESOP | 0 | 166,833,000 | 204,669,000 | |
Corporation self-funded medical plan | $ 75,000 | |||
Medical expenses | 2,695,000 | $ 2,324,000 | $ 2,150,000 | |
Other Postretirement Benefits Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Plan expenses | $ 356,000 | $ 473,000 | $ 440,000 | |
Safe Harbor 401(k) [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Vesting percentage | 100.00% | |||
Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Investment allocation in securities | 50.00% | |||
Equity Collective Trust [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Investment allocation in securities | 50.00% |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 5,655 | $ 5,385 | $ 5,185 |
Debit Card [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,487 | 2,435 | 2,131 |
Fiduciary and Trust [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,134 | 1,928 | 2,089 |
Investment Advice [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 702 | 679 | 616 |
Service Charges And Deposit Account Fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 332 | $ 343 | $ 349 |
Revenue Schedule of Revenue for
Revenue Schedule of Revenue for Each Major Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 5,655 | $ 5,385 | $ 5,185 |
Debit Card [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,487 | 2,435 | 2,131 |
Fiduciary and Trust [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,134 | 1,928 | 2,089 |
Investment Advice [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 702 | 679 | 616 |
Service Charges And Deposit Account Fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 332 | $ 343 | $ 349 |
Other Noninterest Expenses (Exp
Other Noninterest Expenses (Expenses included in other noninterest expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of expenses included in other noninterest expenses | |||
Professional Fees, Audit, Consulting, & Legal | $ 2,263 | $ 2,043 | $ 1,952 |
FDIC insurance premiums | 726 | 642 | 719 |
ATM and Debit Card Expense | 1,036 | 1,181 | 887 |
Director fees | 858 | 856 | 851 |
Loan underwriting fees | 1,016 | 556 | 535 |
Other than Temporary Impairment Losses, Investments | 0 | 0 | 770 |
All other | 3,558 | 3,541 | 3,343 |
Total other | 10,763 | 10,044 | 10,225 |
Donations and community relations | 710 | 657 | 582 |
Marketing Expense | $ 596 | $ 568 | $ 586 |
Federal Income Taxes (Component
Federal Income Taxes (Components of the consolidated provision for federal income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Currently payable | $ 1,088 | $ 180 | $ 2,630 |
Deferred (benefit) expense | 275 | 2,836 | (282) |
Income tax expense | $ 1,363 | $ 3,016 | $ 2,348 |
Federal Income Taxes (Reconcili
Federal Income Taxes (Reconciliation of the provision for federal income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21.00% | 34.00% | 34.00% |
Income taxes at 34% statutory rate | $ 3,231 | $ 5,526 | $ 5,490 |
Interest income on tax exempt municipal securities | (1,106) | (1,889) | (1,938) |
Earnings on corporate owned life insurance policies | (148) | (247) | (419) |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 0 | 319 | 0 |
Other | 231 | 34 | (154) |
Total effect of nontaxable income | (1,023) | (1,783) | (2,511) |
Effect of nondeductible expenses | 113 | 149 | 143 |
Effect of tax credits | (958) | (876) | (774) |
Federal income tax expense | $ 1,363 | $ 3,016 | $ 2,348 |
Federal Income Taxes (Significa
Federal Income Taxes (Significant components of our deferred tax assets and liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Allowance for loan losses | $ 1,304 | $ 1,076 |
Deferred directors' fees | 1,667 | 1,758 |
Employee benefit plans | 81 | 70 |
Core deposit premium and acquisition expenses | 752 | 733 |
Net unrecognized actuarial loss on pension plan | 729 | 857 |
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Net | 1,211 | 0 |
Life insurance death benefit payable | 497 | 497 |
Alternative minimum tax | 710 | 1,463 |
Other | 716 | 607 |
Total deferred tax assets | 7,667 | 7,061 |
Deferred tax liabilities | ||
Prepaid pension cost | 383 | 455 |
Premises and equipment | 1,548 | 1,728 |
Accretion on securities | 41 | 40 |
Core deposit premium and acquisition expenses | 946 | 909 |
Net unrealized gains on available-for-sale securities | 0 | 204 |
Deferred Tax Assets, Derivative Instruments | 68 | 61 |
Other | 1,696 | 1,684 |
Total deferred tax liabilities | 4,682 | 5,081 |
Net deferred tax assets | $ 2,985 | $ 1,980 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by component) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | $ (2,602) | $ (2,778) | $ 221 |
OCI before reclassifications | (6,931) | 343 | (5,335) |
Amounts reclassified from AOCI | 345 | 270 | 763 |
Net unrealized gains (losses) | (6,586) | 613 | (4,572) |
Tax effect | 1,280 | (70) | 1,573 |
Unrealized gains (losses), net of tax | (5,306) | 543 | (2,999) |
Tax Cuts and Jobs Act Reclassification to Retained Earnings | (367) | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | ||
Ending Balance | (7,685) | (2,602) | (2,778) |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 391 | 30 | 3,536 |
OCI before reclassifications | (7,229) | 289 | (5,865) |
Amounts reclassified from AOCI | 0 | (142) | 525 |
Net unrealized gains (losses) | (7,229) | 147 | (5,340) |
Tax effect | 1,415 | 89 | 1,834 |
Unrealized gains (losses), net of tax | (5,814) | 236 | (3,506) |
Tax Cuts and Jobs Act Reclassification to Retained Earnings | 125 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 223 | ||
Ending Balance | (5,200) | 391 | 30 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 230 | 164 | 0 |
OCI before reclassifications | 33 | 43 | 248 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net unrealized gains (losses) | 33 | 43 | 248 |
Tax effect | (7) | (15) | (84) |
Unrealized gains (losses), net of tax | 26 | 28 | 164 |
Tax Cuts and Jobs Act Reclassification to Retained Earnings | 38 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | ||
Ending Balance | 256 | 230 | 164 |
Defined Benefit Pension Plan [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | (3,223) | (2,972) | (3,315) |
OCI before reclassifications | 265 | 11 | 282 |
Amounts reclassified from AOCI | 345 | 412 | 238 |
Net unrealized gains (losses) | 610 | 423 | 520 |
Tax effect | (128) | (144) | (177) |
Unrealized gains (losses), net of tax | 482 | 279 | 343 |
Tax Cuts and Jobs Act Reclassification to Retained Earnings | (530) | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | ||
Ending Balance | (2,741) | (3,223) | $ (2,972) |
AOCI Attributable to Parent [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||
Tax Cuts and Jobs Act Reclassification to Retained Earnings | $ (367) | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 223 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Components of unrealized holding gains on AFS securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Unrealized gains (losses) arising during the period | $ (7,229) | $ 289 | $ (5,865) | ||||
Reclassification adjustment for net realized (gains) losses included in net income | 0 | (142) | (245) | ||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | 0 | 0 | 770 | ||||
Comprehensive income (loss) before income tax (expense) benefit | (7,229) | 147 | (5,340) | ||||
Tax effect | [1] | 1,415 | 89 | 1,834 | |||
Unrealized gains (losses), net of tax | (5,814) | 236 | (3,506) | ||||
Unrealized Holding Gains (Losses) on AFS Securities [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Unrealized gains (losses) arising during the period | (7,229) | 289 | (5,865) | ||||
Reclassification adjustment for net realized (gains) losses included in net income | 0 | (142) | (245) | ||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | 0 | 0 | 770 | ||||
Comprehensive income (loss) before income tax (expense) benefit | (7,229) | 147 | (5,340) | ||||
Tax effect | [1] | 1,415 | 89 | 1,834 | |||
Unrealized gains (losses), net of tax | (5,814) | 236 | (3,506) | ||||
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) arising during the period | (495) | 407 | 54 | ||||
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | 0 | ||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | 0 | 0 | 0 | ||||
Comprehensive income (loss) before income tax (expense) benefit | (495) | 407 | 54 | ||||
Tax effect | 0 | [2] | 0 | [2] | 0 | [1] | |
Unrealized gains (losses), net of tax | (495) | 407 | 54 | ||||
Unrealized Holding Gains (Losses) on AFS Securities [Member] | All Other AFS Securities [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Unrealized gains (losses) arising during the period | (6,734) | (118) | (5,919) | ||||
Reclassification adjustment for net realized (gains) losses included in net income | 0 | (142) | (245) | ||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | 0 | 0 | 770 | ||||
Comprehensive income (loss) before income tax (expense) benefit | (6,734) | (260) | (5,394) | ||||
Tax effect | 1,415 | [2] | 89 | [2] | 1,834 | [1] | |
Unrealized gains (losses), net of tax | $ (5,319) | $ (171) | $ (3,560) | ||||
[1] | (1) See “Note 16 – Accumulated Other Comprehensive Income (Loss)” in the accompanying notes to consolidated financial statements for tax effect reconcilia | ||||||
[2] | Calculations are based on a federal income tax rate of 21% in 2018 and 34% in 2017 and 2016. |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassification adjustments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other than Temporary Impairment Losses, Investments | $ 0 | $ 0 | $ 770 | |
Net AFS Impairment Loss | 0 | 0 | (770) | |
Income before federal income tax expense | 15,384 | 16,253 | 16,147 | |
Compensation and benefits | 22,609 | 21,525 | 19,170 | |
Federal income tax expense | (1,363) | (3,016) | (2,348) | |
NET INCOME | 14,021 | 13,237 | 13,799 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains (losses) on sale of AFS securities | 0 | 142 | 245 | |
Other than Temporary Impairment Losses, Investments | 0 | 0 | (770) | |
Marketable Securities, Realized Gain (Loss) | 0 | 142 | (525) | |
Federal income tax expense | [1] | 0 | (48) | 179 |
NET INCOME | 0 | 94 | (346) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension Plan [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Compensation and benefits | 345 | 412 | 238 | |
Federal income tax expense | [1] | (72) | (140) | (81) |
NET INCOME | $ 273 | $ 272 | $ 157 | |
[1] | Calculations are based on a federal income tax rate of 21% in 2018 and 34% in 2017 and 2016. |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - Level 3 [Member] | 12 Months Ended |
Dec. 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 |
Fair Value (Quantitative inform
Fair Value (Quantitative information about impaired loans) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Discounted appraisal value at fair value | $ 20,045 | $ 15,956 |
Loans Receivable, Collateralized By Livestock [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 30.00% | 30.00% |
Loans Receivable, Collateralized By Accounts Receivable [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 50.00% | 50.00% |
Real Estate [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 20.00% | 20.00% |
Real Estate [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 30.00% | 30.00% |
Equipment [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 20.00% | 20.00% |
Equipment [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 40.00% | 35.00% |
Cash crop inventory [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 30.00% | 30.00% |
Cash crop inventory [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 40.00% | 40.00% |
Other inventory [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 45.00% | 50.00% |
Other inventory [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 50.00% | 75.00% |
Liquor License [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 75.00% | 75.00% |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 35.00% | 35.00% |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 45.00% | 45.00% |
Fair Value (Quantitative info_2
Fair Value (Quantitative information related to foreclosed assets) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - Real Estate [Member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 20.00% | 20.00% |
Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 30.00% | 30.00% |
Fair Value (Carrying amount and
Fair Value (Carrying amount and estimated fair value of financial instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Level 1 [Member] | ||
ASSETS | ||
Cash and cash equivalents | $ 73,471 | $ 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 | 6,928 | 7,063 |
Equity securities without readily determinable fair values | 0 | 0 |
OMSR | 0 | 0 |
LIABILITIES | ||
Deposits without stated maturities | 859,073 | 811,992 |
Deposits with stated maturities | 0 | 0 |
Borrowed funds | 0 | 0 |
Accrued interest payable | 826 | 680 |
Level 2 [Member] | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Mortgage loans AFS | 365 | 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 | 0 | 0 |
OMSR | 2,602 | 2,409 |
LIABILITIES | ||
Deposits without stated maturities | 0 | 0 |
Deposits with stated maturities | 425,993 | 443,892 |
Borrowed funds | 333,829 | 342,089 |
Accrued interest payable | 0 | 0 |
Level 3 [Member] | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Mortgage loans AFS | 0 | 0 |
Total loans | 1,099,645 | 1,056,906 |
Less allowance for loan losses | 8,375 | 7,700 |
Net loans | 1,091,270 | 1,049,206 |
Accrued interest receivable | 0 | 0 |
Equity securities without readily determinable fair values | 0 | 0 |
OMSR | 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 | 73,471 | 30,848 |
Mortgage loans AFS | 358 | 1,560 |
Total loans | 1,128,707 | 1,091,519 |
Less allowance for loan losses | 8,375 | 7,700 |
Net loans | 1,120,332 | 1,083,819 |
Accrued interest receivable | 6,928 | 7,063 |
Equity securities without readily determinable fair values | 24,948 | 23,454 |
OMSR | 2,434 | 2,409 |
LIABILITIES | ||
Deposits without stated maturities | 859,073 | 811,992 |
Deposits with stated maturities | 433,620 | 453,266 |
Borrowed funds | 340,299 | 344,878 |
Accrued interest payable | 826 | 680 |
Estimated Fair Value [Member] | ||
ASSETS | ||
Cash and cash equivalents | 73,471 | 30,848 |
Mortgage loans AFS | 365 | 1,587 |
Total loans | 1,099,645 | 1,056,906 |
Less allowance for loan losses | 8,375 | 7,700 |
Net loans | 1,091,270 | 1,049,206 |
Accrued interest receivable | 6,928 | 7,063 |
OMSR | 2,602 | 2,409 |
LIABILITIES | ||
Deposits without stated maturities | 859,073 | 811,992 |
Deposits with stated maturities | 425,993 | 443,892 |
Borrowed funds | 333,829 | 342,089 |
Accrued interest payable | $ 826 | $ 680 |
Fair Value (Recorded amount of
Fair Value (Recorded amount of assets and liabilities measured at fair value) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
AFS Securities | ||
AFS securities | $ 494,834 | $ 548,730 |
Debt Securities, Available-for-sale | 494,834 | 548,730 |
Available-for-sale Securities, Equity Securities | 0 | 3,577 |
Fair value, total | 515,202 | 568,554 |
Level 1 [Member] | ||
AFS Securities | ||
Fair value, total | $ 0 | $ 3,577 |
Percent of assets and liabilities measured at fair value | 0.00% | 0.63% |
Level 2 [Member] | ||
AFS Securities | ||
Fair value, total | $ 495,157 | $ 549,021 |
Percent of assets and liabilities measured at fair value | 96.11% | 96.56% |
Level 3 [Member] | ||
AFS Securities | ||
Fair value, total | $ 20,045 | $ 15,956 |
Percent of assets and liabilities measured at fair value | 3.89% | 2.81% |
Recurring items [Member] | ||
AFS Securities | ||
AFS securities | $ 494,834 | $ 548,730 |
Available-for-sale Securities, Equity Securities | 0 | 3,577 |
Derivative Assets (Liabilities), at Fair Value, Net | 323 | 291 |
Recurring items [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
AFS securities | 170 | 216 |
Recurring items [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 190,866 | 208,474 |
Recurring items [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 2,554 | 3,049 |
Recurring items [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 184,484 | 208,797 |
Recurring items [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 116,760 | 128,194 |
Recurring items [Member] | Level 1 [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Available-for-sale Securities, Equity Securities | 0 | 3,577 |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring items [Member] | Level 2 [Member] | ||
AFS Securities | ||
AFS securities | 494,834 | 548,730 |
Available-for-sale Securities, Equity Securities | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 323 | 291 |
Recurring items [Member] | Level 2 [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 170 | 216 |
Recurring items [Member] | Level 2 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 190,866 | 208,474 |
Recurring items [Member] | Level 2 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 2,554 | 3,049 |
Recurring items [Member] | Level 2 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 184,484 | 208,797 |
Recurring items [Member] | Level 2 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 116,760 | 128,194 |
Recurring items [Member] | Level 3 [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Available-for-sale Securities, Equity Securities | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Government sponsored enterprises [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
Debt Securities, Available-for-sale | 0 | 0 |
Nonrecurring items [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 20,045 | 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) | $ 20,045 | $ 15,956 |
Related Party Transactions (Ann
Related Party Transactions (Annual activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Annual activity | ||
Balance, January 1 | $ 4,335 | $ 3,946 |
New loans | 1,184 | 3,895 |
Repayments | (2,176) | (3,506) |
Balance, December 31 | $ 3,343 | $ 4,335 |
Related Party Transactions (End
Related Party Transactions (Ending balances of, and contributions to the Isabella Bank Foundation) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | |||
Ending assets | $ 1,837,307 | $ 1,813,130 | |
Affiliated Entity [Member] | Isabella Bank Foundation [Member] | |||
Related Party Transaction [Line Items] | |||
Common Stock, Shares Held by Related Party | 44,350 | 44,350 | |
Affiliated Entity [Member] | Isabella Bank Foundation [Member] | |||
Related Party Transaction [Line Items] | |||
Ending assets | $ 1,731 | $ 2,162 | $ 2,213 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Stock Ownership Plan (ESOP) Deposit [Member] | Subsidiaries [Member] | ||
Related Party Transaction [Line Items] | ||
Total deposits | $ 0 | $ 266 |
Principal Officers and Directors and Their Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Total deposits | $ 5,029 | $ 5,671 |
Affiliated Entity [Member] | Isabella Bank Foundation [Member] | ||
Related Party Transaction [Line Items] | ||
Common Stock, Shares Held by Related Party | 44,350 | 44,350 |
Operating Segments (Narrative)
Operating Segments (Narrative) (Details) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting [Abstract] | |||
Percentage of reportable segments total assets and operating results, or more | 90.00% | 90.00% | 90.00% |
Parent Company Only Financial_3
Parent Company Only Financial Information (Interim Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
AFS securities | $ 494,834 | $ 548,730 | ||
Premises and equipment | 27,815 | 28,450 | ||
Other assets | 12,437 | 10,056 | ||
TOTAL ASSETS | 1,837,307 | 1,813,130 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Shareholders' equity | 195,519 | 194,905 | $ 187,899 | $ 183,971 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,837,307 | 1,813,130 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash on deposit at subsidiary Bank | 2,499 | 185 | ||
Investments in subsidiaries | 143,942 | 145,962 | ||
Premises and equipment | 1,912 | 1,950 | ||
Other assets | 51,674 | 52,253 | ||
TOTAL ASSETS | 200,027 | 200,350 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other liabilities | 4,508 | 5,445 | ||
Shareholders' equity | 195,519 | 194,905 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 200,027 | $ 200,350 |
Parent Company Only Financial_4
Parent Company Only Financial Information (Interim Condensed Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses | |||
Compensation and benefits | $ 22,609 | $ 21,525 | $ 19,170 |
Occupancy and equipment | 3,263 | 3,133 | 3,227 |
Other | 10,763 | 10,044 | 10,225 |
Federal income tax benefit | (1,363) | (3,016) | (2,348) |
NET INCOME | 14,021 | 13,237 | 13,799 |
Parent Company [Member] | |||
Income | |||
Dividends from subsidiaries | 13,100 | 9,600 | 7,400 |
Interest income | 1 | 2 | 14 |
Management fee and other | 3,030 | 6,463 | 6,574 |
Total income | 16,131 | 16,065 | 13,988 |
Expenses | |||
Compensation and benefits | 4,132 | 5,196 | 4,898 |
Occupancy and equipment | 513 | 1,779 | 1,696 |
Audit and related fees | 368 | 527 | 536 |
Other | 1,615 | 2,566 | 2,120 |
Total expenses | 6,628 | 10,068 | 9,250 |
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 9,503 | 5,997 | 4,738 |
Federal income tax benefit | 749 | 91 | 1,058 |
Income before equity in undistributed earnings of subsidiaries | 10,252 | 6,088 | 5,796 |
Undistributed earnings of subsidiaries | 3,769 | 7,149 | 8,003 |
NET INCOME | $ 14,021 | $ 13,237 | $ 13,799 |
Parent Company Only Financial_5
Parent Company Only Financial Information (Interim Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 14,021 | $ 13,237 | $ 13,799 |
Adjustments to reconcile net income to cash provided by operations | |||
Undistributed earnings of equity securities without readily determinable fair values | (144) | 40 | 791 |
Share-based payment awards | 612 | 640 | 573 |
Depreciation | 2,940 | 2,902 | 2,821 |
Net amortization of AFS securities | 1,873 | 2,144 | 2,747 |
Deferred Income Tax Expense (Benefit) | 275 | 2,836 | (282) |
Changes in operating assets and liabilities which used cash | |||
Other assets | 113 | 800 | 455 |
Accrued interest and other liabilities | 358 | (2,497) | 550 |
Net cash provided by (used in) operating activities | 22,010 | 19,721 | 20,240 |
Investing activities | |||
Purchases of equipment and premises | (2,305) | (2,038) | (3,804) |
Net cash provided by (used in) investing activities | 6,470 | (81,755) | (69,909) |
Financing activities | |||
Net increase (decrease) in other borrowed funds | (4,579) | 7,184 | 27,962 |
Cash dividends paid on common stock | (8,169) | (7,990) | (7,645) |
Proceeds from the issuance of common stock | 6,864 | 6,177 | 5,023 |
Common stock repurchased | (7,007) | (5,181) | (4,440) |
Common stock purchased for deferred compensation obligations | (401) | (420) | (383) |
Net cash provided by (used in) financing activities | 14,143 | 69,988 | 50,994 |
Increase (decrease) in cash and cash equivalents | 42,623 | 7,954 | 1,325 |
Cash and cash equivalents at beginning of period | 30,848 | 22,894 | 21,569 |
Cash and cash equivalents at end of period | 73,471 | 30,848 | 22,894 |
Parent Company [Member] | |||
Operating activities | |||
Net income | 14,021 | 13,237 | 13,799 |
Adjustments to reconcile net income to cash provided by operations | |||
Undistributed earnings of subsidiaries | (3,769) | (7,149) | (8,003) |
Undistributed earnings of equity securities without readily determinable fair values | (144) | 40 | 791 |
Share-based payment awards | 612 | 640 | 573 |
Depreciation | 134 | 154 | 156 |
Deferred Income Tax Expense (Benefit) | (31) | 792 | 147 |
Changes in operating assets and liabilities which used cash | |||
Other assets | 1,237 | 42 | (44) |
Accrued interest and other liabilities | (937) | (1,590) | (2,669) |
Net cash provided by (used in) operating activities | 11,123 | 6,166 | 4,750 |
Investing activities | |||
Maturities, calls, principal repayments, and sales of AFS securities | 0 | 249 | 0 |
Purchases of equipment and premises | (96) | (113) | (133) |
Net cash provided by (used in) investing activities | (96) | 136 | (133) |
Financing activities | |||
Net increase (decrease) in other borrowed funds | 0 | 0 | 0 |
Cash dividends paid on common stock | (8,169) | (7,990) | (7,645) |
Proceeds from the issuance of common stock | 6,864 | 6,177 | 5,023 |
Common stock repurchased | (7,007) | (5,181) | (4,440) |
Common stock purchased for deferred compensation obligations | (401) | (420) | (383) |
Net cash provided by (used in) financing activities | (8,713) | (7,414) | (7,445) |
Increase (decrease) in cash and cash equivalents | 2,314 | (1,112) | (2,828) |
Cash and cash equivalents at beginning of period | 185 | 1,297 | 4,125 |
Cash and cash equivalents at end of period | $ 2,499 | $ 185 | $ 1,297 |
Foreclosed Assets (Summary of F
Foreclosed Assets (Summary of Foreclosed Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Total | $ 355 | $ 291 |
Foreclosed Assets (Foreclosed A
Foreclosed Assets (Foreclosed Assets Rollforward) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Banking and Thrift [Abstract] | |
Balance, January 1 | $ 291 |
Balance, December 31 | $ 355 |