Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 26, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-18415 | |
Entity Registrant Name | Isabella Bank Corp | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-2830092 | |
Entity Address, Address Line One | 401 N. Main St | |
Entity Address, City or Town | Mt. Pleasant | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48858 | |
City Area Code | 989 | |
Local Phone Number | 772-9471 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,544,284 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0000842517 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | ||
Cash and demand deposits due from banks | $ 18,611,000 | $ 25,563,000 |
Interest bearing balances due from banks | 142,575,000 | 79,767,000 |
Total cash and cash equivalents | 161,186,000 | 105,330,000 |
Debt Securities, Available-for-sale | 544,919,000 | 490,601,000 |
Loans Receivable Held-for-sale, Amount | 969,000 | 1,735,000 |
Loans | ||
Commercial | 727,614,000 | 807,439,000 |
Agricultural | 88,169,000 | 93,955,000 |
Residential Real Estate | 328,559,000 | 326,361,000 |
Consumer | 74,029,000 | 73,282,000 |
Gross loans | 1,218,371,000 | 1,301,037,000 |
Less allowance for loan losses | 9,204,000 | 9,103,000 |
Net loans | 1,209,167,000 | 1,291,934,000 |
Premises and equipment | 24,339,000 | 24,419,000 |
Corporate owned life insurance | 32,341,000 | 32,472,000 |
Equity securities without readily determinable fair values | 15,095,000 | 17,383,000 |
Goodwill and other intangible assets | 48,298,000 | 48,302,000 |
Interest Receivable and Other Assets | 24,619,000 | |
TOTAL ASSETS | 2,060,933,000 | 2,032,158,000 |
Deposits | ||
Noninterest bearing | 461,473,000 | 448,352,000 |
NOW accounts | 387,187,000 | 364,563,000 |
Certificates of deposit under $250 and other savings | 843,341,000 | 818,841,000 |
Certificates of deposit over $250 | 72,160,000 | 78,583,000 |
Total deposits | 1,764,161,000 | 1,710,339,000 |
Debt Instruments [Abstract] | ||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 51,353,000 | 50,162,000 |
Federal Home Loan Bank Advances | 10,000,000 | 20,000,000 |
Subordinated Debt | 29,181,000 | 29,158,000 |
Borrowed funds | 90,534,000 | 99,320,000 |
Accrued interest payable and other liabilities | 10,396,000 | 11,451,000 |
Total liabilities | $ 1,865,091,000 | $ 1,821,110,000 |
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 111,482 | 105,654 |
Common Stock, Shares Authorized | 7,542,758 | 7,532,641 |
Common Stock, Shares Authorized | 15,000,000 | |
Shareholders' equity | ||
Common stock — no par value 15,000,000 shares authorized | $ 129,189,000 | $ 129,052,000 |
Shares to be issued for deferred compensation obligations | 4,691,000 | 4,545,000 |
Retained earnings | 78,295,000 | 75,592,000 |
Accumulated other comprehensive income | (16,333,000) | 1,859,000 |
Total shareholders' equity | 195,842,000 | 211,048,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,060,933,000 | $ 2,032,158,000 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 15,000,000 | |
Common stock, shares issued | 7,542,758 | 7,532,641 |
Common stock, shares held in Rabbi Trust | 111,482 | 105,654 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income | ||
Loans, including fees | $ 12,378 | $ 13,097 |
AFS securities | ||
Taxable | 1,615 | 1,165 |
Nontaxable | 660 | 865 |
Federal funds sold and other | 109 | 163 |
Total interest income | 14,762 | 15,290 |
Interest expense | ||
Deposits | 936 | 1,668 |
Interest Expense, Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 9 | 16 |
Interest Expense Federal Home Loan Bank Advances | 72 | 405 |
Interest Expense, Subordinated Notes and Debentures | 266 | 0 |
Total interest expense | 1,283 | 2,089 |
Net interest income | 13,479 | 13,201 |
Provision for loan losses | 37 | (523) |
Net interest income after provision for loan losses | 13,442 | 13,724 |
Noninterest income | ||
Noninterest Income, Service Charges and Fees | 2,209 | 1,695 |
Noninterest Income Investment and Trust Advisory Fees | 754 | 696 |
Bank Owned Life Insurance Income, From Policy Redemption | 52 | 146 |
Earnings on corporate owned life insurance policies | 210 | 186 |
Net gain on sale of mortgage loans | 224 | 745 |
Other | 98 | 64 |
Total noninterest income | 3,547 | 3,532 |
Noninterest expenses | ||
Compensation and benefits | 6,074 | 5,877 |
Furniture and equipment | 1,450 | 1,373 |
Occupancy | 966 | 945 |
Other | 2,830 | 2,622 |
Total noninterest expenses | 11,320 | 10,817 |
Income before federal income tax expense | 5,669 | 6,439 |
Federal Income Tax Expense (Benefit), Continuing Operations | 935 | 1,041 |
NET INCOME | $ 4,734 | $ 5,398 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.63 | $ 0.68 |
Diluted (in dollars per share) | 0.62 | 0.67 |
Cash dividends per basic share (in dollars per share) | $ 0.27 | $ 0.27 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 4,734 | $ 5,398 | |
Unrealized gains (losses) on AFS securities | |||
Unrealized gains (losses) on AFS securities arising during the period | 22,928 | 3,545 | |
Tax effect | [1] | 4,736 | 742 |
Unrealized gains (losses) on AFS securities, net of tax | (18,192) | (2,803) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax, Parent | [1] | 0 | 5 |
Unrealized gains (losses) on derivative instruments, net of tax | 0 | 21 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 0 | 26 | |
Other comprehensive income (loss), net of tax | (18,192) | (2,782) | |
Comprehensive income (loss) | $ (13,458) | $ 2,616 | |
[1] | See “Note 10 – Accumulated Other Comprehensive Income” for tax effect reconciliation. |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Shares to be Issued for Deferred Compensation Obligations | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Additional Paid-in Capital |
Beginning balances at Dec. 31, 2020 | $ 218,588 | $ 142,247 | $ 4,183 | $ 64,460 | $ 7,698 | |
Beginning balances, shares at Dec. 31, 2020 | 7,997,247 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | 2,616 | 5,398 | (2,782) | |||
Issuance of common stock | 387 | $ 387 | ||||
Issuance of common stock, shares | 18,482 | |||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ (71) | 71 | |||
Share based payment awards under equity compensation plan | 160 | 160 | ||||
Common stock purchased for deferred compensation obligations | (194) | (194) | ||||
Common stock repurchased pursuant to publicly announced repurchase plan | (1,149) | $ (1,149) | ||||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (56,846) | |||||
Cash dividends | (2,130) | (2,130) | ||||
Ending balances at Mar. 31, 2021 | 218,282 | $ 141,366 | 4,272 | 67,728 | 4,916 | |
Ending balances, shares at Mar. 31, 2021 | 7,958,883 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
APIC, Share-based Payment Arrangement, Other, Increase for Cost Recognition | 4 | $ 4 | ||||
Beginning balances at Dec. 31, 2021 | 211,048 | $ 129,052 | 4,545 | 75,592 | 1,859 | |
Beginning balances, shares at Dec. 31, 2021 | 7,532,641 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income (loss) | (13,458) | 4,734 | (18,192) | |||
Issuance of common stock | 439 | $ 439 | ||||
Issuance of common stock, shares | 17,379 | |||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ (3) | 3 | |||
Share based payment awards under equity compensation plan | 149 | 149 | ||||
Common stock purchased for deferred compensation obligations | (151) | (151) | ||||
Common stock repurchased pursuant to publicly announced repurchase plan | (185) | $ (185) | ||||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (7,262) | |||||
Cash dividends | (2,031) | (2,031) | ||||
Ending balances at Mar. 31, 2022 | 195,842 | $ 129,189 | $ 4,691 | $ 78,295 | $ (16,333) | |
Ending balances, shares at Mar. 31, 2022 | 7,542,758 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
APIC, Share-based Payment Arrangement, Other, Increase for Cost Recognition | $ 31 | $ 31 |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per share (in dollars per share) | $ 0.27 | $ 0.27 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 1,081 | $ 2,111 |
OPERATING ACTIVITIES | ||
NET INCOME | 4,734 | 5,398 |
Reconciliation of net income to net cash provided by operating activities: | ||
Provision for loan losses | 37 | (523) |
Depreciation | 542 | 612 |
Amortization of OMSR | 37 | 32 |
Amortization of acquisition intangibles | 4 | 7 |
Amortization of Debt Issuance Costs | 23 | 0 |
Net amortization of AFS securities | 547 | 438 |
Net gain on sale of mortgage loans | (224) | (745) |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | (300) | 0 |
Bank Owned Life Insurance Income, Net of Expense | 200 | 177 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets, Valuation Adjustments | 11 | (28) |
Bank Owned Life Insurance Income, From Policy Redemption | (52) | (146) |
Payments for Origination of Mortgage Loans Held-for-sale | (7,069) | (17,692) |
Proceeds from Sale of Mortgage Loans Held-for-sale | 8,059 | 19,213 |
Net changes in operating assets and liabilities which provided (used) cash: | ||
Accrued interest receivable and other assets | 338 | 1,602 |
Accrued interest payable and other liabilities | (1,016) | (1,135) |
Net cash provided by (used in) operating activities | 5,629 | 7,076 |
Activity in AFS securities | ||
Maturities and calls | 13,568 | 19,388 |
Purchases | (91,361) | (51,467) |
Net loan principal (originations) collections | 82,726 | 42,365 |
Proceeds from sales of foreclosed assets | 39 | 193 |
Purchases of premises and equipment | (462) | (358) |
Proceeds from Life Insurance Policy | 383 | 558 |
Proceeds from Sale of Federal Home Loan Bank Stock | 2,288 | 0 |
Payments to Acquire Other Investments | (39) | (226) |
Net cash provided by (used in) investing activities | 7,142 | 10,453 |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 53,822 | 77,264 |
Increase in other borrowed funds | 1,191 | (16,780) |
Increase (Decrease) in Loans from Federal Home Loan Banks | (10,000) | 0 |
Cash dividends paid on common stock | (2,031) | (2,130) |
Proceeds from issuance of common stock | 439 | 387 |
Common stock repurchased | (185) | (1,149) |
Common stock purchased for deferred compensation obligations | (151) | (194) |
Increase (decrease) in cash and cash equivalents | 55,856 | 74,927 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 161,186 | 321,567 |
Cash and cash equivalents at beginning of period | 105,330 | |
Cash and cash equivalents at end of period | 161,186 | |
Net cash provided by (used in) financing activities | 43,085 | 57,398 |
SUPPLEMENTAL NONCASH INFORMATION: | ||
Transfers of loans to foreclosed assets | 4 | 78 |
Isabella Bank Corporation and Related Companies Deferred Compensation Plan for Directors | ||
Reconciliation of net income to net cash provided by operating activities: | ||
Share-based Payment Arrangement, Noncash Expense | 149 | 160 |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Share-based payment awards | $ 149 | $ 160 |
Parent Company Only Financial I
Parent Company Only Financial Information | 3 Months Ended |
Mar. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Information | Parent Company Only Financial Information Interim Condensed Balance Sheets March 31 December 31 ASSETS Cash on deposit at the Bank $ 10,094 $ 11,535 Investments in subsidiaries 164,756 178,395 Premises and equipment 1,469 1,482 Other assets 49,063 48,923 TOTAL ASSETS $ 225,382 $ 240,335 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debt, net of unamortized issuance costs $ 29,181 $ 29,158 Other liabilities 359 129 Shareholders' equity 195,842 211,048 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 225,382 $ 240,335 Interim Condensed Statements of Income Three Months Ended 2022 2021 Income Dividends from subsidiaries $ 800 $ 1,300 Interest income 3 — Other income 4 6 Total income 807 1,306 Expenses Interest expense 266 — Occupancy and equipment 17 16 Audit, consulting, and legal fees 120 118 Director fees 106 85 Other 280 264 Total expenses 789 483 Income before income tax benefit and equity in undistributed earnings of subsidiaries 18 823 Federal income tax benefit 163 100 Income before equity in undistributed earnings of subsidiaries 181 923 Undistributed earnings of subsidiaries 4,553 4,475 Net income $ 4,734 $ 5,398 Interim Condensed Statements of Cash Flows Three Months Ended 2022 2021 Operating activities Net income $ 4,734 $ 5,398 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (4,553) (4,475) Share-based payment awards under the Directors Plan 149 160 Share-based payment awards under the RSP 31 4 Amortization of subordinated debt issuance costs 23 — Depreciation 13 13 Changes in operating assets and liabilities which provided (used) cash Other assets (140) 478 Other liabilities 230 1,204 Net cash provided by (used in) operating activities 487 2,782 Investing activities Financing activities Cash dividends paid on common stock (2,031) (2,130) Proceeds from the issuance of common stock 439 387 Common stock repurchased (185) (1,149) Common stock purchased for deferred compensation obligations (151) (194) Net cash provided by (used in) financing activities (1,928) (3,086) Increase (decrease) in cash and cash equivalents (1,441) (304) Cash and cash equivalents at beginning of period 11,535 2,670 Cash and cash equivalents at end of period $ 10,094 $ 2,366 |
Parent Company Only Financial_2
Parent Company Only Financial Information | 3 Months Ended |
Mar. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Interim Condensed Balance Sheets | Interim Condensed Balance Sheets March 31 December 31 ASSETS Cash on deposit at the Bank $ 10,094 $ 11,535 Investments in subsidiaries 164,756 178,395 Premises and equipment 1,469 1,482 Other assets 49,063 48,923 TOTAL ASSETS $ 225,382 $ 240,335 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debt, net of unamortized issuance costs $ 29,181 $ 29,158 Other liabilities 359 129 Shareholders' equity 195,842 211,048 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 225,382 $ 240,335 |
Interim Condensed Statements of Income | Interim Condensed Statements of Income Three Months Ended 2022 2021 Income Dividends from subsidiaries $ 800 $ 1,300 Interest income 3 — Other income 4 6 Total income 807 1,306 Expenses Interest expense 266 — Occupancy and equipment 17 16 Audit, consulting, and legal fees 120 118 Director fees 106 85 Other 280 264 Total expenses 789 483 Income before income tax benefit and equity in undistributed earnings of subsidiaries 18 823 Federal income tax benefit 163 100 Income before equity in undistributed earnings of subsidiaries 181 923 Undistributed earnings of subsidiaries 4,553 4,475 Net income $ 4,734 $ 5,398 |
Interim Condensed Statements of Cash Flows | Interim Condensed Statements of Cash Flows Three Months Ended 2022 2021 Operating activities Net income $ 4,734 $ 5,398 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (4,553) (4,475) Share-based payment awards under the Directors Plan 149 160 Share-based payment awards under the RSP 31 4 Amortization of subordinated debt issuance costs 23 — Depreciation 13 13 Changes in operating assets and liabilities which provided (used) cash Other assets (140) 478 Other liabilities 230 1,204 Net cash provided by (used in) operating activities 487 2,782 Investing activities Financing activities Cash dividends paid on common stock (2,031) (2,130) Proceeds from the issuance of common stock 439 387 Common stock repurchased (185) (1,149) Common stock purchased for deferred compensation obligations (151) (194) Net cash provided by (used in) financing activities (1,928) (3,086) Increase (decrease) in cash and cash equivalents (1,441) (304) Cash and cash equivalents at beginning of period 11,535 2,670 Cash and cash equivalents at end of period $ 10,094 $ 2,366 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Components of unrealized holding gains on AFS securities) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains (losses) on AFS securities arising during the period | $ (22,928) | $ (3,545) | |
Tax effect | [1] | 4,736 | 742 |
Unrealized gains (losses), net of tax | (18,192) | (2,782) | |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains (losses) on AFS securities arising during the period | (22,928) | (3,545) | |
Tax effect | 4,736 | 742 | |
Unrealized gains (losses), net of tax | (18,192) | (2,803) | |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | Auction Rate Money Market Preferred and Preferred Stocks [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains (losses) on AFS securities arising during the period | (375) | (13) | |
Tax effect | 0 | 0 | |
Unrealized gains (losses), net of tax | (375) | (13) | |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | All Other AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains (losses) on AFS securities arising during the period | (22,553) | (3,532) | |
Tax effect | 4,736 | 742 | |
Unrealized gains (losses), net of tax | (17,817) | (2,790) | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains (losses), net of tax | $ 0 | $ 0 | |
[1] | See “Note 10 – Accumulated Other Comprehensive Income” for tax effect reconciliation. |
Parent Company Only Financial_3
Parent Company Only Financial Information (Interim Condensed Balance Sheets) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Premises and equipment | $ 24,339,000 | $ 24,419,000 |
Other assets | 19,982,000 | |
TOTAL ASSETS | 2,060,933,000 | 2,032,158,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Subordinated Debt | 29,181,000 | 29,158,000 |
Shareholders' equity | 195,842,000 | 211,048,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,060,933,000 | 2,032,158,000 |
Parent Company [Member] | ||
ASSETS | ||
Cash on deposit at subsidiary Bank | 10,094,000 | 11,535,000 |
Investments in subsidiaries | 164,756,000 | 178,395,000 |
Premises and equipment | 1,469,000 | 1,482,000 |
Other assets | 49,063,000 | 48,923,000 |
TOTAL ASSETS | 225,382,000 | 240,335,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Subordinated Debt | 29,181,000 | 29,158,000 |
Other liabilities | 359,000 | 129,000 |
Shareholders' equity | 195,842,000 | 211,048,000 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 225,382,000 | $ 240,335,000 |
Parent Company Only Financial_4
Parent Company Only Financial Information (Interim Condensed Statements of Income) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income | ||
Interest Expense | $ 1,283 | $ 2,089 |
Expenses | ||
Occupancy and equipment | 966 | 945 |
Professional Fees | 549 | 436 |
Noninterest Expense Directors Fees | 201 | 159 |
Other | 2,830 | 2,622 |
Federal income tax benefit | (935) | (1,041) |
NET INCOME | 4,734 | 5,398 |
Parent Company [Member] | ||
Income | ||
Dividends from subsidiaries | 800 | 1,300 |
Interest income | 3 | 0 |
Management fee and other | 4 | 6 |
Total income | 807 | 1,306 |
Interest Expense | 266 | 0 |
Expenses | ||
Occupancy and equipment | 17 | 16 |
Professional Fees | 120 | 118 |
Noninterest Expense Directors Fees | 106 | 85 |
Other | 280 | 264 |
Total expenses | 789 | 483 |
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 18 | 823 |
Federal income tax benefit | 163 | 100 |
Income before equity in undistributed earnings of subsidiaries | 181 | 923 |
Income (Loss) from Subsidiaries, Net of Tax | 4,553 | 4,475 |
NET INCOME | $ 4,734 | $ 5,398 |
Parent Company Only Financial_5
Parent Company Only Financial Information (Interim Condensed Statements of Cash Flows) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
NET INCOME | $ 4,734 | $ 5,398 |
Adjustments to reconcile net income to cash provided by operations | ||
Depreciation | 542 | 612 |
Changes in operating assets and liabilities which used cash | ||
Accrued interest receivable and other assets | 338 | 1,602 |
Accrued interest and other liabilities | (1,016) | (1,135) |
Net cash provided by (used in) operating activities | 5,629 | 7,076 |
Investing activities | ||
Net cash provided by (used in) investing activities | 7,142 | 10,453 |
Financing activities | ||
Cash dividends paid on common stock | (2,031) | (2,130) |
Proceeds from the issuance of common stock | 439 | 387 |
Common stock repurchased | (185) | (1,149) |
Common stock purchased for deferred compensation obligations | (151) | (194) |
Net cash provided by (used in) financing activities | 43,085 | 57,398 |
Increase (decrease) in cash and cash equivalents | 55,856 | 74,927 |
Cash and cash equivalents at beginning of period | 105,330 | 246,640 |
Cash and cash equivalents at end of period | 161,186 | 321,567 |
Amortization of Debt Issuance Costs | 23 | 0 |
Isabella Bank Corporation Restricted Stock Plan | ||
Adjustments to reconcile net income to cash provided by operations | ||
Share-based payment awards | 31 | 4 |
Isabella Bank Corporation and Related Companies Deferred Compensation Plan for Directors | ||
Adjustments to reconcile net income to cash provided by operations | ||
Share-based payment awards | 149 | 160 |
Parent Company [Member] | ||
Operating activities | ||
NET INCOME | 4,734 | 5,398 |
Adjustments to reconcile net income to cash provided by operations | ||
Undistributed earnings of subsidiaries | (4,553) | (4,475) |
Depreciation | 13 | 13 |
Changes in operating assets and liabilities which used cash | ||
Accrued interest receivable and other assets | (140) | 478 |
Accrued interest and other liabilities | 230 | 1,204 |
Net cash provided by (used in) operating activities | 487 | 2,782 |
Financing activities | ||
Cash dividends paid on common stock | (2,031) | (2,130) |
Proceeds from the issuance of common stock | 439 | 387 |
Common stock repurchased | (185) | (1,149) |
Common stock purchased for deferred compensation obligations | (151) | (194) |
Net cash provided by (used in) financing activities | (1,928) | (3,086) |
Increase (decrease) in cash and cash equivalents | (1,441) | (304) |
Cash and cash equivalents at beginning of period | 11,535 | 2,670 |
Cash and cash equivalents at end of period | 10,094 | 2,366 |
Amortization of Debt Issuance Costs | 23 | 0 |
Parent Company [Member] | Isabella Bank Corporation Restricted Stock Plan | ||
Adjustments to reconcile net income to cash provided by operations | ||
Share-based payment awards | 31 | 4 |
Parent Company [Member] | Isabella Bank Corporation and Related Companies Deferred Compensation Plan for Directors | ||
Adjustments to reconcile net income to cash provided by operations | ||
Share-based payment awards | $ 149 | $ 160 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation As used in these notes, as well as in Management's Discussion and Analysis of Financial Condition and Results of Operations, references to 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” refer to Isabella Bank Corporation’s subsidiary, Isabella Bank. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2021. Our accounting policies are materially the same as those discussed in Note 1 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Reclassifications: Certain amounts reported in the interim 2021 consolidated financial statements have been reclassified to conform with the 2022 presentation. |
Pending Accounting Standards Up
Pending Accounting Standards Updates | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Pending Accounting Standards Updates | Accounting Standards Updates Pending ASU No. 2016-13: “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, as amended 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; an entity generally only considers past events and current conditions in measuring the incurred loss. Under the new guidance, the incurred loss impairment methodology 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 was originally effective for interim and annual periods beginning after December 15, 2019. Effective October 16, 2019, the FASB approved and issued changes to the implementation date of this guidance for some filers. As a smaller reporting company, as defined by the SEC, our implementation date was delayed from January 1, 2020 to January 1, 2023. Early adoption continues to be permissible under the revised implementation date. This guidance is not expected to have a significant impact on the results of our operations and financial statement disclosures. |
AFS Securities
AFS Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
AFS Securities | AFS Securities The amortized cost and fair value of AFS securities, with gross unrealized gains and losses, are as follows at: March 31, 2022 Amortized Gross Gross Fair U.S. Treasury $ 231,925 $ — $ 13,657 $ 218,268 States and political subdivisions 114,112 1,595 1,692 114,015 Auction rate money market preferred 3,200 — 333 2,867 Mortgage-backed securities 50,775 9 1,206 49,578 Collateralized mortgage obligations 154,794 138 2,491 152,441 Corporate 8,150 — 400 7,750 Total $ 562,956 $ 1,742 $ 19,779 $ 544,919 December 31, 2021 Amortized Gross Gross Fair U.S. Treasury $ 212,379 $ — $ 2,676 $ 209,703 States and political subdivisions 116,836 4,457 88 121,205 Auction rate money market preferred 3,200 42 — 3,242 Mortgage-backed securities 54,710 1,438 — 56,148 Collateralized mortgage obligations 90,435 1,876 10 92,301 Corporate 8,150 19 167 8,002 Total $ 485,710 $ 7,832 $ 2,941 $ 490,601 The amortized cost and fair value of AFS securities by contractual maturity at March 31, 2022 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total U.S. Treasury $ — $ 231,925 $ — $ — $ — $ 231,925 States and political subdivisions 15,866 52,934 18,472 26,840 — 114,112 Auction rate money market preferred — — — — 3,200 3,200 Mortgage-backed securities — — — — 50,775 50,775 Collateralized mortgage obligations — — — — 154,794 154,794 Corporate — — 8,150 — — 8,150 Total amortized cost $ 15,866 $ 284,859 $ 26,622 $ 26,840 $ 208,769 $ 562,956 Fair value $ 15,917 $ 271,929 $ 26,157 $ 26,030 $ 204,886 $ 544,919 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. The following information pertains to AFS securities with gross unrealized losses at March 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position. March 31, 2022 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total U.S. Treasury $ 13,657 $ 218,268 $ — $ — $ 13,657 States and political subdivisions 1,660 21,890 32 3,137 1,692 Auction rate money market preferred — — 333 2,867 333 Mortgage-backed securities 1,206 48,345 — — 1,206 Collateralized mortgage obligations 2,491 104,218 — — 2,491 Corporate 371 6,079 29 1,672 400 Total $ 19,385 $ 398,800 $ 394 $ 7,676 $ 19,779 Number of securities in an unrealized loss position: 102 36 138 December 31, 2021 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total U.S. Treasury $ 2,676 $ 209,703 $ — $ — $ 2,676 States and political subdivisions 88 9,674 — — 88 Collateralized mortgage obligations 10 11,165 — — 10 Corporate 167 6,283 — — 167 Total $ 2,941 $ 236,825 $ — $ — $ 2,941 Number of securities in an unrealized loss position: 40 — 40 The unrealized loss on our AFS securities portfolio resulted from the recent increases in short-term and intermediate-term benchmark interest rates. As of March 31, 2022 and December 31, 2021, we conducted an analysis to determine whether any AFS 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? Based on our analysis, which included the criteria outlined above and the fact that we have asserted that we do not have to sell any AFS securities in an unrealized loss position, we do not believe that the values of any AFS securities are other-than-temporarily impaired as of March 31, 2022 or December 31, 2021, with the exception of one municipal bond previously identified in 2016 which had no activity during the period. |
Loans and ALLL
Loans and ALLL | 3 Months Ended |
Mar. 31, 2022 | |
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, health care, 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. A portion of 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 deferred fees or costs. Unless a loan has a nonaccrual status, 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 amortization method. The accrual of interest on commercial and agricultural loans, as well as residential real estate loans, is discontinued at the time a loan is 90 days or more past due unless the credit is well-secured and in the process of short-term collection. Upon transferring a loan 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 a charge-off is necessary. Consumer loans are typically charged-off no later than 180 days past due. Past due status is based on the contractual term of the loan. In all cases, a loan is placed in nonaccrual status at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed in nonaccrual status, 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. Government agency guarantee may be required. Personal guarantees and/or life insurance beneficiary assignments 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 sheets. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $80,000. The difference between our outstanding balance and the maximum outstanding aggregate amount is classified as an unfunded commitment. 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 originated residential real estate loans generally include: • Evaluation of the borrower’s ability to make monthly payments. • Evaluation of the value of the property securing the loan. • Ensuring the payment of principal, interest, taxes, and hazard insurance does not exceed 28% of a borrower’s gross income. • Ensuring all debt servicing does not exceed 40% of income. • Verification of acceptable credit reports. • Verification of employment, income, and financial information. Appraisals are performed by independent appraisers and are 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. Full or partial loan balances are charged against the ALLL when we believe uncollectability 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 a loan 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, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. 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 related to this portfolio. 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. While we have experienced fluctuations in credit quality indicators in recent periods, credit quality remained strong at March 31, 2022. The COVID-19 pandemic led to the temporary and some permanent closures of businesses throughout the communities in which we serve, which also led to increased unemployment. We increased the ALLL during 2020 as a result of increased economic and environmental related risk factors, primarily driven by COVID-19. While these risk factors remain, improvement in credit quality indicators resulted in a reduction to the ALLL during 2021. There have been no material changes to the ALLL and credit quality remained strong during the first quarter of 2022. Summaries of the ALLL and the recorded investment in loans by segments follows: Allowance for Loan Losses Three Months Ended March 31, 2022 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2022 $ 1,740 $ 289 $ 747 $ 908 $ 5,419 $ 9,103 Charge-offs — — — (91) — (91) Recoveries 14 2 28 111 — 155 Provision for loan losses (509) 92 (50) (220) 724 37 March 31, 2022 $ 1,245 $ 383 $ 725 $ 708 $ 6,143 $ 9,204 Allowance for Loan Losses and Recorded Investment in Loans March 31, 2022 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 9 $ — $ 564 $ — $ — $ 573 Collectively evaluated for impairment 1,236 383 161 708 6,143 8,631 Total $ 1,245 $ 383 $ 725 $ 708 $ 6,143 $ 9,204 Loans Individually evaluated for impairment $ 9,072 $ 11,101 $ 3,290 $ — $ 23,463 Collectively evaluated for impairment 718,542 77,068 325,269 74,029 1,194,908 Total $ 727,614 $ 88,169 $ 328,559 $ 74,029 $ 1,218,371 Allowance for Loan Losses Three Months Ended March 31, 2021 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2021 $ 2,162 $ 311 $ 1,363 $ 798 $ 5,110 $ 9,744 Charge-offs (31) — — (128) — (159) Recoveries 82 2 55 70 — 209 Provision for loan losses (514) (83) (255) 216 113 (523) March 31, 2021 $ 1,699 $ 230 $ 1,163 $ 956 $ 5,223 $ 9,271 Allowance for Loan Losses and Recorded Investment in Loans December 31, 2021 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 13 $ — $ 565 $ — $ — $ 578 Collectively evaluated for impairment 1,727 289 182 908 5,419 8,525 Total $ 1,740 $ 289 $ 747 $ 908 $ 5,419 $ 9,103 Loans Individually evaluated for impairment $ 9,267 $ 14,189 $ 3,454 $ — $ 26,910 Collectively evaluated for impairment 798,172 79,766 322,907 73,282 1,274,127 Total $ 807,439 $ 93,955 $ 326,361 $ 73,282 $ 1,301,037 The following tables display the internally assigned credit risk ratings for commercial and agricultural credit exposures as of: March 31, 2022 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 300 $ — $ 300 $ — $ — $ — $ 300 2 - High quality 9,022 8,541 — 17,563 383 — 383 17,946 3 - High satisfactory 76,238 38,751 — 114,989 8,458 4,635 13,093 128,082 4 - Low satisfactory 457,918 101,340 — 559,258 35,592 12,352 47,944 607,202 5 - Special mention 13,770 2,499 — 16,269 12,805 4,489 17,294 33,563 6 - Substandard 13,301 5,615 — 18,916 6,409 2,763 9,172 28,088 7 - Vulnerable 212 107 — 319 116 167 283 602 8 - Doubtful — — — — — — — — 9 - Loss — — — — — — — — Total $ 570,461 $ 157,153 $ — $ 727,614 $ 63,763 $ 24,406 $ 88,169 $ 815,783 December 31, 2021 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 300 $ — $ 300 $ — $ — $ — $ 300 2 - High quality 9,010 6,881 — 15,891 453 — 453 16,344 3 - High satisfactory 86,135 46,087 72,001 204,223 9,361 4,295 13,656 217,879 4 - Low satisfactory 448,489 104,375 — 552,864 36,483 15,986 52,469 605,333 5 - Special mention 13,212 1,351 — 14,563 13,096 3,452 16,548 31,111 6 - Substandard 13,519 5,738 — 19,257 6,252 3,803 10,055 29,312 7 - Vulnerable 222 119 — 341 499 275 774 1,115 8 - Doubtful — — — — — — — — 9 - Loss — — — — — — — — Total $ 570,587 $ 164,851 $ 72,001 $ 807,439 $ 66,144 $ 27,811 $ 93,955 $ 901,394 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 for the entire loan portfolio as of: March 31, 2022 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 68 $ — $ — $ 212 $ 280 $ 570,181 $ 570,461 Commercial other 25 — — 107 132 157,021 157,153 Advances to mortgage brokers — — — — — — — Total commercial 93 — — 319 412 727,202 727,614 Agricultural Agricultural real estate — — 116 116 63,647 63,763 Agricultural other — — — 167 167 24,239 24,406 Total agricultural — — — 283 283 87,886 88,169 Residential real estate Senior liens 1,384 — — 145 1,529 292,732 294,261 Junior liens 14 — — — 14 2,221 2,235 Home equity lines of credit 17 — — — 17 32,046 32,063 Total residential real estate 1,415 — — 145 1,560 326,999 328,559 Consumer Secured 88 12 — — 100 70,814 70,914 Unsecured 9 — — — 9 3,106 3,115 Total consumer 97 12 — — 109 73,920 74,029 Total $ 1,605 $ 12 $ — $ 747 $ 2,364 $ 1,216,007 $ 1,218,371 December 31, 2021 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 135 $ — $ — $ 222 $ 357 $ 570,230 $ 570,587 Commercial other 85 — — 119 204 164,647 164,851 Advances to mortgage brokers — — — — — 72,001 72,001 Total commercial 220 — — 341 561 806,878 807,439 Agricultural Agricultural real estate 213 — — 499 712 65,432 66,144 Agricultural other — — — 275 275 27,536 27,811 Total agricultural 213 — — 774 987 92,968 93,955 Residential real estate Senior liens 2,016 37 97 93 2,243 290,900 293,143 Junior liens — — — — — 2,439 2,439 Home equity lines of credit 7 — — 37 44 30,735 30,779 Total residential real estate 2,023 37 97 130 2,287 324,074 326,361 Consumer Secured 186 — — — 186 70,259 70,445 Unsecured 10 — — — 10 2,827 2,837 Total consumer 196 — — — 196 73,086 73,282 Total $ 2,652 $ 37 $ 97 $ 1,245 $ 4,031 $ 1,297,006 $ 1,301,037 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 costs to sell, if the loan is collateral dependent. 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 is a summary of impaired loans as of: March 31, 2022 December 31, 2021 Recorded Balance Unpaid Principal Balance Valuation Allowance Recorded Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 192 $ 192 $ 8 $ 192 $ 193 $ 9 Commercial other 2,671 2,671 1 2,802 2,802 4 Residential real estate senior liens 3,290 3,562 564 3,417 3,688 565 Total impaired loans with a valuation allowance 6,153 6,425 573 6,411 6,683 578 Impaired loans without a valuation allowance Commercial real estate 5,740 6,056 5,829 6,145 Commercial other 469 469 444 444 Agricultural real estate 7,967 7,967 9,538 9,538 Agricultural other 3,134 3,134 4,651 4,651 Home equity lines of credit — — 37 37 Total impaired loans without a valuation allowance 17,310 17,626 20,499 20,815 Impaired loans Commercial 9,072 9,388 9 9,267 9,584 13 Agricultural 11,101 11,101 — 14,189 14,189 — Residential real estate 3,290 3,562 564 3,454 3,725 565 Total impaired loans $ 23,463 $ 24,051 $ 573 $ 26,910 $ 27,498 $ 578 The following is a summary of impaired loans for the: Three Months Ended March 31 2022 2021 Average Recorded Balance Interest Income Recognized Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 189 $ 3 $ 2,424 $ 28 Commercial other 2,737 30 54 — Agricultural real estate — — 1,510 11 Agricultural other — — 678 — Residential real estate senior liens 3,354 35 4,228 43 Total impaired loans with a valuation allowance 6,280 68 8,894 82 Impaired loans without a valuation allowance Commercial real estate 5,785 85 4,907 101 Commercial other 457 11 4,674 40 Agricultural real estate 8,753 124 9,418 132 Agricultural other 3,893 45 3,023 61 Home equity lines of credit 19 — — — Total impaired loans without a valuation allowance 18,907 265 22,022 334 Impaired loans Commercial 9,168 129 12,059 169 Agricultural 12,646 169 14,629 204 Residential real estate 3,373 35 4,228 43 Total impaired loans $ 25,187 $ 333 $ 30,916 $ 416 We had committed to advance $1,310 and $266 in additional funds to be disbursed in connection with impaired loans, which includes TDRs, of March 31, 2022 and December 31, 2021, 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: • Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. • Extending the amortization period beyond typical lending guidelines for loans with similar risk characteristics. • Agreeing to an interest-only payment structure and delaying principal payments. • Forgiving principal. • Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: • The borrower is currently in default on any debt. • The borrower would likely default on any debt if the concession is not granted. • The borrower’s cash flow is insufficient to service all debt if the concession is not granted. • The borrower has declared, or is in the process of declaring, bankruptcy. • The borrower is unlikely to continue as a going concern (if the entity is a business). The following is a summary of TDRs granted for the: Three Months Ended March 31 2022 2021 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Commercial other — $ — $ — 3 $ 4,652 $ 4,652 Agricultural other — — — 6 3,712 3,712 Residential real estate 1 98 98 — — — Total 1 $ 98 $ 98 9 $ 8,364 $ 8,364 The following is a summary of concessions we granted to borrowers experiencing financial difficulty for the: Three Months Ended March 31 2022 2021 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 $ 3,189 2 $ 1,463 Agricultural other — — — — 6 3,712 — — Residential real estate — — 1 98 — — — — Total — $ — 1 $ 98 7 $ 6,901 2 $ 1,463 We did not restructure any loans by forgiving principal or accrued interest in the three-month periods ended March 31, 2022 or 2021. Based on our historical loss experience, losses associated with TDRs are not significantly different than other impaired loans within the same loan segment. As such, TDRs, including TDRs that have been modified in the past 12 months that subsequently defaulted, are analyzed in the same manner as other impaired loans within their respective loan segment. We had no loans that defaulted in the three-month periods ended March 31, 2022 and 2021 which were modified within 12 months prior to the default date. The following is a summary of TDR loan balances as of: March 31 December 31 TDRs $ 22,745 $ 25,725 |
Borrowed Funds
Borrowed Funds | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Federal funds purchased and repurchase agreements 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. We had no FRB Discount Window advances during the three-month periods ended March 31, 2022 and 2021. A summary of securities sold under repurchase agreements without stated maturity dates was as follows for the: Three Months Ended March 31 2022 2021 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 $ 53,970 $ 49,058 0.07 % $ 54,288 $ 54,145 0.12 % Federal funds purchased $ — $ 1 0.61 % $ — $ — — % 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 $51,665 and $50,173 at March 31, 2022 and December 31, 2021, 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 were as follows as of: March 31, 2022 December 31, 2021 Amount Rate Amount Rate Securities sold under agreements to repurchase without stated maturity dates $ 51,353 0.13 % $ 50,162 0.07 % We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: March 31 December 31 Pledged to secure borrowed funds $ 334,415 $ 334,415 Pledged to secure repurchase agreements 51,665 50,173 Pledged for public deposits and for other purposes necessary or required by law 28,154 28,154 Total $ 414,234 $ 412,742 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: March 31 December 31 U.S. Treasury $ 10,000 $ 9,711 States and political subdivisions 14,718 13,491 Mortgage-backed securities 12,938 13,174 Collateralized mortgage obligations 14,009 13,797 Total $ 51,665 $ 50,173 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 to pledge to satisfy collateral requirements. As of March 31, 2022, we had the ability to borrow up to an additional $326,885, without pledging additional collateral. FHLB advances FHLB advances are collateralized by a blanket lien on all qualified 1-4 family residential real estate loans, specific AFS securities, and FHLB stock. The following table lists the maturities and weighted average interest rates of FHLB advances as of: March 31, 2022 December 31, 2021 Amount Rate Amount Rate Fixed rate due 2022 $ 10,000 1.87 % $ 20,000 1.97 % Subordinated Notes On June 2, 2021, we completed a private placement of $30,000 in aggregate principal amount of 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 (the "Notes"). The Notes will initially bear a fixed interest rate of 3.25% until June 15, 2026, after which time until maturity on June 15, 2031, the interest rate will reset quarterly to an annual floating rate equal to the then-current 3-month SOFR plus 256 basis points. The Notes are redeemable by us at our option, in whole or in part, on or after June 15, 2026. The Notes are not subject to redemption at the option of the holders. The following table summarizes our outstanding notes as of: March 31, 2022 December 31, 2021 Amount Rate Amount Rate Fixed rate at 3.25% to floating, due 2031 $ 30,000 3.25 % $ 30,000 3.25 % Unamortized issuance costs (819) (842) Total subordinated debt, net $ 29,181 $ 29,158 |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
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 and grant awards under the RSP. Earnings per common share have been computed based on the following for the: Three Months Ended 2022 2021 Average number of common shares outstanding for basic calculation 7,533,711 7,969,462 Average potential effect of common shares in the Directors Plan (1) 83,538 114,384 Average potential effect of common shares in the RSP 22,439 4,678 Average number of common shares outstanding used to calculate diluted earnings per common share 7,639,688 8,088,524 Net income $ 4,734 $ 5,398 Earnings per common share Basic $ 0.63 $ 0.68 Diluted $ 0.62 $ 0.67 (1) Exclusive of shares held in the Rabbi Trust |
Restricted Stock Plan (Notes)
Restricted Stock Plan (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Restricted Stock Plan We adopted the RSP, an equity-based bonus plan, in 2020. Under the RSP, we may award restricted stock bonuses to eligible employees on an annual basis that are not fully transferable or vested until certain conditions are met. Currently, the eligible employees are the Bank's CEO, President, and CFO. The RSP authorizes the issuance of unvested restricted stock to an eligible employee with a maximum award ranging from 25% to 40% of the employee’s annual salary, on a calendar year basis. The employee must also satisfy the annual performance targets and measures established by the Board of Directors. If these grant conditions are not satisfied, then the award of restricted shares will lapse or be adjusted appropriately, at the discretion of the Board of Directors. All Grant Agreements contain vesting conditions and clawback provisions. A summary of changes in nonvested restricted stock awards is as follows for the: Three Months Ended Three Months Ended Number Fair Number Fair Balance, January 1 20,123 $ 418 4,658 $ 82 Granted 6,723 174 15,465 336 Vested — — — — Forfeited — — — — Balance, March 31 26,846 $ 592 20,123 $ 418 Expense related to RSP awards was $31 and $4 for the three-month periods ended March 31, 2022 and 2021. As of March 31, 2022, there was $424 of total remaining unrecognized compensation expense related to nonvested restricted stock awards granted under the RSP. The remaining expense is expected to be recognized over a weighted-average service period of 3.08 years. |
Other Noninterest Expenses
Other Noninterest Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Noninterest Expenses | Other Noninterest Expenses A summary of expenses included in other noninterest expenses is as follows for the: Three Months Ended 2022 2021 Audit, consulting, and legal fees $ 549 $ 436 ATM and debit card fees 434 417 Donations and community relations 287 146 Marketing costs 239 209 Memberships and subscriptions 217 211 Director fees 201 159 Loan underwriting fees 182 190 FDIC insurance premiums 125 231 All other 596 623 Total other noninterest expenses $ 2,830 $ 2,622 |
Federal Income Taxes
Federal Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Federal Income Taxes The reconciliation of the provision for federal income taxes and the amount computed at the federal statutory tax rate of 21% of income before federal income tax expense is as follows for the: Three Months Ended 2022 2021 Income taxes at statutory rate $ 1,190 $ 1,352 Effect of nontaxable income Interest income on tax exempt municipal securities (134) (172) Earnings on corporate owned life insurance policies (55) (70) Other (4) (6) Total effect of nontaxable income (193) (248) Effect of nondeductible expenses 11 9 Effect of tax credits (73) (72) Federal income tax expense $ 935 $ 1,041 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income The following table summarizes the changes in AOCI by component for the: Three Months Ended March 31 2022 2021 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, January 1 $ 3,873 $ — $ (2,014) $ 1,859 $ 10,485 $ (42) $ (2,745) $ 7,698 OCI before reclassifications (22,928) — — (22,928) (3,545) 26 — (3,519) Tax effect 4,736 — — 4,736 742 (5) — 737 OCI, net of tax (18,192) — — (18,192) (2,803) 21 — (2,782) Balance, March 31 $ (14,319) $ — $ (2,014) $ (16,333) $ 7,682 $ (21) $ (2,745) $ 4,916 Included in OCI for the three-month periods ended March 31, 2022 and 2021 are changes in unrealized 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 gains or losses given the nature of the investments. A summary of the components of unrealized gains on AFS securities included in OCI follows for the: Three Months Ended March 31 2022 2021 Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Unrealized gains (losses) arising during the period $ (375) $ (22,553) $ (22,928) $ (13) $ (3,532) $ (3,545) Tax effect — 4,736 4,736 — 742 742 Unrealized gains (losses), net of tax $ (375) $ (17,817) $ (18,192) $ (13) $ (2,790) $ (2,803) |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2022 | |
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. Loans: We do not record loans at fair value on a recurring basis. However, some 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, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. We review the net realizable values of the underlying collateral for collateral dependent impaired loans on at least a quarterly basis for all loan types. To determine the collateral value, we utilize independent appraisals, broker price opinions, or internal evaluations. We review these valuations to determine whether an additional discount should be applied given the age of market information that may have been considered as well as other factors such as costs to sell an asset if it is determined that the collateral will be liquidated in connection with the ultimate settlement of the loan. We use these valuations to determine if any specific reserves or charge-offs are necessary. We may obtain new valuations in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. The following tables list the quantitative fair value information about impaired loans as of: March 31, 2022 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Discount applied to collateral: Real Estate 20% - 30% 23% Equipment 20% - 40% 28% Discounted value $15,639 Cash crop inventory 40% 40% Livestock 30% 30% Accounts receivable 50% 50% Liquor license 75% 75% Furniture, fixtures & equipment 45% 45% December 31, 2021 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Discount applied to collateral: Real Estate 20% - 30% 23% Equipment 20% - 35% 28% Discounted value $18,812 Cash crop inventory 40% 40% Livestock 30% 30% Accounts receivable 50% 50% Liquor license 75% 75% Collateral discount rates may have ranges to accommodate differences in the age of the independent appraisal, broker price opinion, or internal evaluation. OMSR: OMSR (which are included in other assets) are subject to impairment testing. To test for impairment, we utilize a discounted cash flow analysis using interest rates and prepayment speed assumptions currently quoted for comparable instruments and discount rates. If the valuation model reflects a value less than the carrying value, OMSR are adjusted to fair value through a valuation allowance as determined by the model. As such, we classify OMSR subject to nonrecurring fair value adjustments as Level 2. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. Estimated Fair Values of Financial Instruments Not Recorded at Fair Value in their Entirety on a Recurring Basis Disclosure of the estimated fair values of financial instruments, which differ from carrying values, often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of: March 31, 2022 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 161,186 $ 161,186 $ 161,186 $ — $ — Mortgage loans AFS 969 1,002 — 1,002 — Gross loans 1,218,371 1,203,988 — — 1,203,988 Less allowance for loan and lease losses 9,204 9,204 — — 9,204 Net loans 1,209,167 1,194,784 — — 1,194,784 Accrued interest receivable 6,176 6,176 6,176 — — Equity securities without readily determinable fair values (1) 15,095 N/A — — — OMSR 2,388 2,763 — 2,763 — LIABILITIES Deposits without stated maturities 1,483,855 1,483,855 1,483,855 — — Deposits with stated maturities 280,306 275,379 — 275,379 — Federal funds purchased and repurchase agreements 51,353 51,339 — 51,339 — FHLB advances 10,000 10,030 — 10,030 — Subordinated debt, net of unamortized issuance costs 29,181 26,128 — 26,128 — Accrued interest payable 210 210 210 — — December 31, 2021 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 105,330 $ 105,330 $ 105,330 $ — $ — Mortgage loans AFS 1,735 1,797 — 1,797 — Gross loans 1,301,037 1,296,841 — — 1,296,841 Less allowance for loan and lease losses 9,103 9,103 — — 9,103 Net loans 1,291,934 1,287,738 — — 1,287,738 Accrued interest receivable 5,804 5,804 5,804 — — Equity securities without readily determinable fair values (1) 17,383 N/A — — — OMSR 2,124 2,753 — 2,753 — LIABILITIES Deposits without stated maturities 1,409,577 1,409,577 1,409,577 — — Deposits with stated maturities 300,762 301,216 — 301,216 — Federal funds purchased and repurchase agreements 50,162 50,153 — 50,153 — FHLB advances 20,000 20,120 — 20,120 — Subordinated debt, net of unamortized issuance costs 29,158 27,435 — 27,435 — Accrued interest payable 251 251 251 — — (1) Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. When an impairment or write-down related to these securities is recorded, such amount would be classified as a nonrecurring Level 3 fair value adjustment. Financial Instruments Recorded at Fair Value The table below presents the recorded amount of assets and liabilities measured at fair value on: March 31, 2022 December 31, 2021 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Recurring items AFS securities U.S. Treasury $ 218,268 $ — $ 218,268 $ — $ 209,703 $ — $ 209,703 $ — States and political subdivisions 114,015 — 114,015 — 121,205 — 121,205 — Auction rate money market preferred 2,867 — 2,867 — 3,242 — 3,242 — Mortgage-backed securities 49,578 — 49,578 — 56,148 — 56,148 — Collateralized mortgage obligations 152,441 — 152,441 — 92,301 — 92,301 — Corporate 7,750 — 7,750 — 8,002 — 8,002 — Total AFS securities 544,919 — 544,919 — 490,601 — 490,601 — Nonrecurring items Impaired loans (net of the ALLL) 15,639 — — 15,639 18,812 — — 18,812 Foreclosed assets — — — — 211 — — 211 Total $ 560,558 $ — $ 544,919 $ 15,639 $ 509,624 $ — $ 490,601 $ 19,023 Percent of assets and liabilities measured at fair value — % 97.21 % 2.79 % — % 96.27 % 3.73 % We had no assets or liabilities recorded at fair value with changes in fair value recognized through earnings, on a recurring basis or nonrecurring basis, as of March 31, 2022. Further, we had no unrealized gains and losses included in OCI for recurring Level 3 fair value measurements held at the end of the reporting period. |
Operating Segments
Operating Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating SegmentsOur reportable segments are based on legal entities that account for at least 10% of net operating results. The Bank as of March 31, 2022 and December 31, 2021 and for the three-month periods ended March 31, 2022 and 2021, represents approximately 90% or more of our consolidated total assets and operating results. As such, no additional segment reporting is presented. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | As used in these notes, as well as in Management's Discussion and Analysis of Financial Condition and Results of Operations, references to 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” refer to Isabella Bank Corporation’s subsidiary, Isabella Bank. |
Basis of Accounting | The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2021. |
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 and grant awards under the RSP. |
Available-for-sale Securities | As of March 31, 2022 and December 31, 2021, we conducted an analysis to determine whether any AFS 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? |
Nonaccrual Loan Status | The accrual of interest on commercial and agricultural loans, as well as residential real estate loans, is discontinued at the time a loan is 90 days or more past due unless the credit is well-secured and in the process of short-term collection. Upon transferring a loan 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 a charge-off is necessary. Consumer loans are typically charged-off no later than 180 days past due. Past due status is based on the contractual term of the loan. In all cases, a loan is placed in nonaccrual status at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed in nonaccrual status, all interest accrued in the current calendar year, but not collected, is reversed against interest income while interest accrued in prior calendar years, but not collected, is charged against the ALLL. Loans may be returned to accrual status after six months of continuous performance and achievement of current payment status. |
Loans Receivable | Loans that we have the intent and ability to hold in our portfolio are reported at their outstanding principal balance adjusted for any charge-offs, the ALLL, and deferred fees or costs. Unless a loan has a nonaccrual status, 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 amortization method. 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. Government agency guarantee may be required. Personal guarantees and/or life insurance beneficiary assignments 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 sheets. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $80,000. The difference between our outstanding balance and the maximum outstanding aggregate amount is classified as an unfunded commitment. 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 originated residential real estate loans generally include: • Evaluation of the borrower’s ability to make monthly payments. • Evaluation of the value of the property securing the loan. • Ensuring the payment of principal, interest, taxes, and hazard insurance does not exceed 28% of a borrower’s gross income. • Ensuring all debt servicing does not exceed 40% of income. • Verification of acceptable credit reports. • Verification of employment, income, and financial information. Appraisals are performed by independent appraisers and are 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 | The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Full or partial loan balances are charged against the ALLL when we believe uncollectability 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 a loan 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, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. 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 related to this portfolio. 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. While we have experienced fluctuations in credit quality indicators in recent periods, credit quality remained strong at March 31, 2022. The COVID-19 pandemic led to the temporary and some permanent closures of businesses throughout the communities in which we serve, which also led to increased unemployment. We increased the ALLL during 2020 as a result of increased economic and environmental related risk factors, primarily driven by COVID-19. While these risk factors remain, improvement in credit quality indicators resulted in a reduction to the ALLL during 2021. There have been no material changes to the ALLL and credit quality remained strong during the first quarter of 2022. |
Internal Credit Risk Ratings | Internally assigned credit risk ratings are reviewed, at a minimum, when loans are renewed or when management has knowledge of improvements or deterioration of the credit quality of individual credits. Descriptions of the internally assigned credit risk ratings for commercial and agricultural loans are as follows: 1. EXCELLENT – Substantially Risk Free Credit has strong financial condition and solid earnings history, characterized by: • High liquidity, strong cash flow, low leverage. • Unquestioned ability to meet all obligations when due. • Experienced management, with management succession in place. • Secured by cash. 2. HIGH QUALITY – Limited Risk Credit with sound financial condition and a positive trend in earnings supplemented by: • Favorable liquidity and leverage ratios. • Ability to meet all obligations when due. • Management with successful track record. • Steady and satisfactory earnings history. • If loan is secured, collateral is of high quality and readily marketable. • Access to alternative financing. • Well defined primary and secondary source of repayment. • If supported by guaranty, the financial strength and liquidity of the guarantor(s) are clearly evident. 3. HIGH SATISFACTORY – Reasonable Risk Credit with satisfactory financial condition and further characterized by: • Working capital adequate to support operations. • Cash flow sufficient to pay debts as scheduled. • Management experience and depth appear favorable. • Loan performing according to terms. • If loan is secured, collateral is acceptable and loan is fully protected. 4. LOW SATISFACTORY – Acceptable Risk Credit with bankable risks, although some signs of weaknesses are shown: • Would include most start-up businesses. • Occasional instances of trade slowness or repayment delinquency – may have been 10-30 days slow within the past year. • Management’s abilities are apparent yet unproven. • Weakness in primary source of repayment with adequate secondary source of repayment. • Loan structure generally in accordance with policy. • If secured, loan collateral coverage is marginal. 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. |
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 costs to sell, if the loan is collateral dependent. 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: • Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. • Extending the amortization period beyond typical lending guidelines for loans with similar risk characteristics. • Agreeing to an interest-only payment structure and delaying principal payments. • Forgiving principal. • Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: • The borrower is currently in default on any debt. • The borrower would likely default on any debt if the concession is not granted. • The borrower’s cash flow is insufficient to service all debt if the concession is not granted. • The borrower has declared, or is in the process of declaring, bankruptcy. • The borrower is unlikely to continue as a going concern (if the entity is a business). |
Fair Value Measurement, Policy [Policy Text Block] | Under fair value measurement and disclosure authoritative guidance, we group assets and liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value, based on the prioritization of inputs in the valuation techniques. These levels are: Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. Transfers between measurement levels are recognized at the end of reporting periods. Fair value measurement requires the use of an exit price notion which may differ from entrance pricing. Generally we believe our assets and liabilities classified as Level 1 or Level 2 approximate an exit price notion. |
AFS Securities (Tables)
AFS Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and fair value of available-for-sale securities | The amortized cost and fair value of AFS securities, with gross unrealized gains and losses, are as follows at: March 31, 2022 Amortized Gross Gross Fair U.S. Treasury $ 231,925 $ — $ 13,657 $ 218,268 States and political subdivisions 114,112 1,595 1,692 114,015 Auction rate money market preferred 3,200 — 333 2,867 Mortgage-backed securities 50,775 9 1,206 49,578 Collateralized mortgage obligations 154,794 138 2,491 152,441 Corporate 8,150 — 400 7,750 Total $ 562,956 $ 1,742 $ 19,779 $ 544,919 December 31, 2021 Amortized Gross Gross Fair U.S. Treasury $ 212,379 $ — $ 2,676 $ 209,703 States and political subdivisions 116,836 4,457 88 121,205 Auction rate money market preferred 3,200 42 — 3,242 Mortgage-backed securities 54,710 1,438 — 56,148 Collateralized mortgage obligations 90,435 1,876 10 92,301 Corporate 8,150 19 167 8,002 Total $ 485,710 $ 7,832 $ 2,941 $ 490,601 |
Amortized cost and fair value of available-for-sale securities by contractual maturity | The amortized cost and fair value of AFS securities by contractual maturity at March 31, 2022 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total U.S. Treasury $ — $ 231,925 $ — $ — $ — $ 231,925 States and political subdivisions 15,866 52,934 18,472 26,840 — 114,112 Auction rate money market preferred — — — — 3,200 3,200 Mortgage-backed securities — — — — 50,775 50,775 Collateralized mortgage obligations — — — — 154,794 154,794 Corporate — — 8,150 — — 8,150 Total amortized cost $ 15,866 $ 284,859 $ 26,622 $ 26,840 $ 208,769 $ 562,956 Fair value $ 15,917 $ 271,929 $ 26,157 $ 26,030 $ 204,886 $ 544,919 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following information pertains to AFS securities with gross unrealized losses at March 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position. March 31, 2022 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total U.S. Treasury $ 13,657 $ 218,268 $ — $ — $ 13,657 States and political subdivisions 1,660 21,890 32 3,137 1,692 Auction rate money market preferred — — 333 2,867 333 Mortgage-backed securities 1,206 48,345 — — 1,206 Collateralized mortgage obligations 2,491 104,218 — — 2,491 Corporate 371 6,079 29 1,672 400 Total $ 19,385 $ 398,800 $ 394 $ 7,676 $ 19,779 Number of securities in an unrealized loss position: 102 36 138 December 31, 2021 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total U.S. Treasury $ 2,676 $ 209,703 $ — $ — $ 2,676 States and political subdivisions 88 9,674 — — 88 Collateralized mortgage obligations 10 11,165 — — 10 Corporate 167 6,283 — — 167 Total $ 2,941 $ 236,825 $ — $ — $ 2,941 Number of securities in an unrealized loss position: 40 — 40 |
Loans and ALLL (Tables)
Loans and ALLL (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Allowance for Loan Losses and Recorded Investment in Loans | Summaries of the ALLL and the recorded investment in loans by segments follows: Allowance for Loan Losses Three Months Ended March 31, 2022 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2022 $ 1,740 $ 289 $ 747 $ 908 $ 5,419 $ 9,103 Charge-offs — — — (91) — (91) Recoveries 14 2 28 111 — 155 Provision for loan losses (509) 92 (50) (220) 724 37 March 31, 2022 $ 1,245 $ 383 $ 725 $ 708 $ 6,143 $ 9,204 Allowance for Loan Losses and Recorded Investment in Loans March 31, 2022 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 9 $ — $ 564 $ — $ — $ 573 Collectively evaluated for impairment 1,236 383 161 708 6,143 8,631 Total $ 1,245 $ 383 $ 725 $ 708 $ 6,143 $ 9,204 Loans Individually evaluated for impairment $ 9,072 $ 11,101 $ 3,290 $ — $ 23,463 Collectively evaluated for impairment 718,542 77,068 325,269 74,029 1,194,908 Total $ 727,614 $ 88,169 $ 328,559 $ 74,029 $ 1,218,371 Allowance for Loan Losses Three Months Ended March 31, 2021 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2021 $ 2,162 $ 311 $ 1,363 $ 798 $ 5,110 $ 9,744 Charge-offs (31) — — (128) — (159) Recoveries 82 2 55 70 — 209 Provision for loan losses (514) (83) (255) 216 113 (523) March 31, 2021 $ 1,699 $ 230 $ 1,163 $ 956 $ 5,223 $ 9,271 Allowance for Loan Losses and Recorded Investment in Loans December 31, 2021 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 13 $ — $ 565 $ — $ — $ 578 Collectively evaluated for impairment 1,727 289 182 908 5,419 8,525 Total $ 1,740 $ 289 $ 747 $ 908 $ 5,419 $ 9,103 Loans Individually evaluated for impairment $ 9,267 $ 14,189 $ 3,454 $ — $ 26,910 Collectively evaluated for impairment 798,172 79,766 322,907 73,282 1,274,127 Total $ 807,439 $ 93,955 $ 326,361 $ 73,282 $ 1,301,037 |
Credit quality indicators for commercial and agricultural credit exposures | The following tables display the internally assigned credit risk ratings for commercial and agricultural credit exposures as of: March 31, 2022 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 300 $ — $ 300 $ — $ — $ — $ 300 2 - High quality 9,022 8,541 — 17,563 383 — 383 17,946 3 - High satisfactory 76,238 38,751 — 114,989 8,458 4,635 13,093 128,082 4 - Low satisfactory 457,918 101,340 — 559,258 35,592 12,352 47,944 607,202 5 - Special mention 13,770 2,499 — 16,269 12,805 4,489 17,294 33,563 6 - Substandard 13,301 5,615 — 18,916 6,409 2,763 9,172 28,088 7 - Vulnerable 212 107 — 319 116 167 283 602 8 - Doubtful — — — — — — — — 9 - Loss — — — — — — — — Total $ 570,461 $ 157,153 $ — $ 727,614 $ 63,763 $ 24,406 $ 88,169 $ 815,783 December 31, 2021 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 300 $ — $ 300 $ — $ — $ — $ 300 2 - High quality 9,010 6,881 — 15,891 453 — 453 16,344 3 - High satisfactory 86,135 46,087 72,001 204,223 9,361 4,295 13,656 217,879 4 - Low satisfactory 448,489 104,375 — 552,864 36,483 15,986 52,469 605,333 5 - Special mention 13,212 1,351 — 14,563 13,096 3,452 16,548 31,111 6 - Substandard 13,519 5,738 — 19,257 6,252 3,803 10,055 29,312 7 - Vulnerable 222 119 — 341 499 275 774 1,115 8 - Doubtful — — — — — — — — 9 - Loss — — — — — — — — Total $ 570,587 $ 164,851 $ 72,001 $ 807,439 $ 66,144 $ 27,811 $ 93,955 $ 901,394 |
Summary of past due and current loans | The following tables summarize the past due and current loans for the entire loan portfolio as of: March 31, 2022 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 68 $ — $ — $ 212 $ 280 $ 570,181 $ 570,461 Commercial other 25 — — 107 132 157,021 157,153 Advances to mortgage brokers — — — — — — — Total commercial 93 — — 319 412 727,202 727,614 Agricultural Agricultural real estate — — 116 116 63,647 63,763 Agricultural other — — — 167 167 24,239 24,406 Total agricultural — — — 283 283 87,886 88,169 Residential real estate Senior liens 1,384 — — 145 1,529 292,732 294,261 Junior liens 14 — — — 14 2,221 2,235 Home equity lines of credit 17 — — — 17 32,046 32,063 Total residential real estate 1,415 — — 145 1,560 326,999 328,559 Consumer Secured 88 12 — — 100 70,814 70,914 Unsecured 9 — — — 9 3,106 3,115 Total consumer 97 12 — — 109 73,920 74,029 Total $ 1,605 $ 12 $ — $ 747 $ 2,364 $ 1,216,007 $ 1,218,371 December 31, 2021 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 135 $ — $ — $ 222 $ 357 $ 570,230 $ 570,587 Commercial other 85 — — 119 204 164,647 164,851 Advances to mortgage brokers — — — — — 72,001 72,001 Total commercial 220 — — 341 561 806,878 807,439 Agricultural Agricultural real estate 213 — — 499 712 65,432 66,144 Agricultural other — — — 275 275 27,536 27,811 Total agricultural 213 — — 774 987 92,968 93,955 Residential real estate Senior liens 2,016 37 97 93 2,243 290,900 293,143 Junior liens — — — — — 2,439 2,439 Home equity lines of credit 7 — — 37 44 30,735 30,779 Total residential real estate 2,023 37 97 130 2,287 324,074 326,361 Consumer Secured 186 — — — 186 70,259 70,445 Unsecured 10 — — — 10 2,827 2,837 Total consumer 196 — — — 196 73,086 73,282 Total $ 2,652 $ 37 $ 97 $ 1,245 $ 4,031 $ 1,297,006 $ 1,301,037 |
Information pertaining to impaired loans | The following is a summary of impaired loans as of: March 31, 2022 December 31, 2021 Recorded Balance Unpaid Principal Balance Valuation Allowance Recorded Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 192 $ 192 $ 8 $ 192 $ 193 $ 9 Commercial other 2,671 2,671 1 2,802 2,802 4 Residential real estate senior liens 3,290 3,562 564 3,417 3,688 565 Total impaired loans with a valuation allowance 6,153 6,425 573 6,411 6,683 578 Impaired loans without a valuation allowance Commercial real estate 5,740 6,056 5,829 6,145 Commercial other 469 469 444 444 Agricultural real estate 7,967 7,967 9,538 9,538 Agricultural other 3,134 3,134 4,651 4,651 Home equity lines of credit — — 37 37 Total impaired loans without a valuation allowance 17,310 17,626 20,499 20,815 Impaired loans Commercial 9,072 9,388 9 9,267 9,584 13 Agricultural 11,101 11,101 — 14,189 14,189 — Residential real estate 3,290 3,562 564 3,454 3,725 565 Total impaired loans $ 23,463 $ 24,051 $ 573 $ 26,910 $ 27,498 $ 578 The following is a summary of impaired loans for the: Three Months Ended March 31 2022 2021 Average Recorded Balance Interest Income Recognized Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 189 $ 3 $ 2,424 $ 28 Commercial other 2,737 30 54 — Agricultural real estate — — 1,510 11 Agricultural other — — 678 — Residential real estate senior liens 3,354 35 4,228 43 Total impaired loans with a valuation allowance 6,280 68 8,894 82 Impaired loans without a valuation allowance Commercial real estate 5,785 85 4,907 101 Commercial other 457 11 4,674 40 Agricultural real estate 8,753 124 9,418 132 Agricultural other 3,893 45 3,023 61 Home equity lines of credit 19 — — — Total impaired loans without a valuation allowance 18,907 265 22,022 334 Impaired loans Commercial 9,168 129 12,059 169 Agricultural 12,646 169 14,629 204 Residential real estate 3,373 35 4,228 43 Total impaired loans $ 25,187 $ 333 $ 30,916 $ 416 |
Information pertaining to TDR's | The following is a summary of TDRs granted for the: Three Months Ended March 31 2022 2021 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Commercial other — $ — $ — 3 $ 4,652 $ 4,652 Agricultural other — — — 6 3,712 3,712 Residential real estate 1 98 98 — — — Total 1 $ 98 $ 98 9 $ 8,364 $ 8,364 The following is a summary of concessions we granted to borrowers experiencing financial difficulty for the: Three Months Ended March 31 2022 2021 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 $ 3,189 2 $ 1,463 Agricultural other — — — — 6 3,712 — — Residential real estate — — 1 98 — — — — Total — $ — 1 $ 98 7 $ 6,901 2 $ 1,463 The following is a summary of TDR loan balances as of: March 31 December 31 TDRs $ 22,745 $ 25,725 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of short term borrowings | A summary of securities sold under repurchase agreements without stated maturity dates was as follows for the: Three Months Ended March 31 2022 2021 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 $ 53,970 $ 49,058 0.07 % $ 54,288 $ 54,145 0.12 % Federal funds purchased $ — $ 1 0.61 % $ — $ — — % 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 $51,665 and $50,173 at March 31, 2022 and December 31, 2021, 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 were as follows as of: March 31, 2022 December 31, 2021 Amount Rate Amount Rate Securities sold under agreements to repurchase without stated maturity dates $ 51,353 0.13 % $ 50,162 0.07 % |
Summary of pledged financial instruments | We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: March 31 December 31 Pledged to secure borrowed funds $ 334,415 $ 334,415 Pledged to secure repurchase agreements 51,665 50,173 Pledged for public deposits and for other purposes necessary or required by law 28,154 28,154 Total $ 414,234 $ 412,742 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: March 31 December 31 U.S. Treasury $ 10,000 $ 9,711 States and political subdivisions 14,718 13,491 Mortgage-backed securities 12,938 13,174 Collateralized mortgage obligations 14,009 13,797 Total $ 51,665 $ 50,173 |
Federal Home Loan Bank, Advances | The following table lists the maturities and weighted average interest rates of FHLB advances as of: March 31, 2022 December 31, 2021 Amount Rate Amount Rate Fixed rate due 2022 $ 10,000 1.87 % $ 20,000 1.97 % |
Schedule of Subordinated Borrowing | The following table summarizes our outstanding notes as of: March 31, 2022 December 31, 2021 Amount Rate Amount Rate Fixed rate at 3.25% to floating, due 2031 $ 30,000 3.25 % $ 30,000 3.25 % Unamortized issuance costs (819) (842) Total subordinated debt, net $ 29,181 $ 29,158 |
Computation of Earnings Per C_2
Computation of Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of earnings per common share | Earnings per common share have been computed based on the following for the: Three Months Ended 2022 2021 Average number of common shares outstanding for basic calculation 7,533,711 7,969,462 Average potential effect of common shares in the Directors Plan (1) 83,538 114,384 Average potential effect of common shares in the RSP 22,439 4,678 Average number of common shares outstanding used to calculate diluted earnings per common share 7,639,688 8,088,524 Net income $ 4,734 $ 5,398 Earnings per common share Basic $ 0.63 $ 0.68 Diluted $ 0.62 $ 0.67 (1) Exclusive of shares held in the Rabbi Trust |
Restricted Stock Plan (Tables)
Restricted Stock Plan (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | A summary of changes in nonvested restricted stock awards is as follows for the: Three Months Ended Three Months Ended Number Fair Number Fair Balance, January 1 20,123 $ 418 4,658 $ 82 Granted 6,723 174 15,465 336 Vested — — — — Forfeited — — — — Balance, March 31 26,846 $ 592 20,123 $ 418 |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Summary of expenses included in other noninterest expenses | A summary of expenses included in other noninterest expenses is as follows for the: Three Months Ended 2022 2021 Audit, consulting, and legal fees $ 549 $ 436 ATM and debit card fees 434 417 Donations and community relations 287 146 Marketing costs 239 209 Memberships and subscriptions 217 211 Director fees 201 159 Loan underwriting fees 182 190 FDIC insurance premiums 125 231 All other 596 623 Total other noninterest expenses $ 2,830 $ 2,622 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of federal income tax expense | The reconciliation of the provision for federal income taxes and the amount computed at the federal statutory tax rate of 21% of income before federal income tax expense is as follows for the: Three Months Ended 2022 2021 Income taxes at statutory rate $ 1,190 $ 1,352 Effect of nontaxable income Interest income on tax exempt municipal securities (134) (172) Earnings on corporate owned life insurance policies (55) (70) Other (4) (6) Total effect of nontaxable income (193) (248) Effect of nondeductible expenses 11 9 Effect of tax credits (73) (72) Federal income tax expense $ 935 $ 1,041 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of the components of accumulated other comprehensive income | The following table summarizes the changes in AOCI by component for the: Three Months Ended March 31 2022 2021 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, January 1 $ 3,873 $ — $ (2,014) $ 1,859 $ 10,485 $ (42) $ (2,745) $ 7,698 OCI before reclassifications (22,928) — — (22,928) (3,545) 26 — (3,519) Tax effect 4,736 — — 4,736 742 (5) — 737 OCI, net of tax (18,192) — — (18,192) (2,803) 21 — (2,782) Balance, March 31 $ (14,319) $ — $ (2,014) $ (16,333) $ 7,682 $ (21) $ (2,745) $ 4,916 A summary of the components of unrealized gains on AFS securities included in OCI follows for the: Three Months Ended March 31 2022 2021 Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Unrealized gains (losses) arising during the period $ (375) $ (22,553) $ (22,928) $ (13) $ (3,532) $ (3,545) Tax effect — 4,736 4,736 — 742 742 Unrealized gains (losses), net of tax $ (375) $ (17,817) $ (18,192) $ (13) $ (2,790) $ (2,803) |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Quantitative information about assets measured utilizing Level 3 fair value measurement | The following tables list the quantitative fair value information about impaired loans as of: March 31, 2022 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Discount applied to collateral: Real Estate 20% - 30% 23% Equipment 20% - 40% 28% Discounted value $15,639 Cash crop inventory 40% 40% Livestock 30% 30% Accounts receivable 50% 50% Liquor license 75% 75% Furniture, fixtures & equipment 45% 45% December 31, 2021 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Discount applied to collateral: Real Estate 20% - 30% 23% Equipment 20% - 35% 28% Discounted value $18,812 Cash crop inventory 40% 40% Livestock 30% 30% Accounts receivable 50% 50% Liquor license 75% 75% |
Carrying amount and estimated fair value of financial instruments not recorded at fair value | The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of: March 31, 2022 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 161,186 $ 161,186 $ 161,186 $ — $ — Mortgage loans AFS 969 1,002 — 1,002 — Gross loans 1,218,371 1,203,988 — — 1,203,988 Less allowance for loan and lease losses 9,204 9,204 — — 9,204 Net loans 1,209,167 1,194,784 — — 1,194,784 Accrued interest receivable 6,176 6,176 6,176 — — Equity securities without readily determinable fair values (1) 15,095 N/A — — — OMSR 2,388 2,763 — 2,763 — LIABILITIES Deposits without stated maturities 1,483,855 1,483,855 1,483,855 — — Deposits with stated maturities 280,306 275,379 — 275,379 — Federal funds purchased and repurchase agreements 51,353 51,339 — 51,339 — FHLB advances 10,000 10,030 — 10,030 — Subordinated debt, net of unamortized issuance costs 29,181 26,128 — 26,128 — Accrued interest payable 210 210 210 — — December 31, 2021 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 105,330 $ 105,330 $ 105,330 $ — $ — Mortgage loans AFS 1,735 1,797 — 1,797 — Gross loans 1,301,037 1,296,841 — — 1,296,841 Less allowance for loan and lease losses 9,103 9,103 — — 9,103 Net loans 1,291,934 1,287,738 — — 1,287,738 Accrued interest receivable 5,804 5,804 5,804 — — Equity securities without readily determinable fair values (1) 17,383 N/A — — — OMSR 2,124 2,753 — 2,753 — LIABILITIES Deposits without stated maturities 1,409,577 1,409,577 1,409,577 — — Deposits with stated maturities 300,762 301,216 — 301,216 — Federal funds purchased and repurchase agreements 50,162 50,153 — 50,153 — FHLB advances 20,000 20,120 — 20,120 — Subordinated debt, net of unamortized issuance costs 29,158 27,435 — 27,435 — Accrued interest payable 251 251 251 — — (1) Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. When an impairment or write-down related to these securities is recorded, such amount would be classified as a nonrecurring Level 3 fair value adjustment. |
Assets and liabilities measured at fair value | The table below presents the recorded amount of assets and liabilities measured at fair value on: March 31, 2022 December 31, 2021 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Recurring items AFS securities U.S. Treasury $ 218,268 $ — $ 218,268 $ — $ 209,703 $ — $ 209,703 $ — States and political subdivisions 114,015 — 114,015 — 121,205 — 121,205 — Auction rate money market preferred 2,867 — 2,867 — 3,242 — 3,242 — Mortgage-backed securities 49,578 — 49,578 — 56,148 — 56,148 — Collateralized mortgage obligations 152,441 — 152,441 — 92,301 — 92,301 — Corporate 7,750 — 7,750 — 8,002 — 8,002 — Total AFS securities 544,919 — 544,919 — 490,601 — 490,601 — Nonrecurring items Impaired loans (net of the ALLL) 15,639 — — 15,639 18,812 — — 18,812 Foreclosed assets — — — — 211 — — 211 Total $ 560,558 $ — $ 544,919 $ 15,639 $ 509,624 $ — $ 490,601 $ 19,023 Percent of assets and liabilities measured at fair value — % 97.21 % 2.79 % — % 96.27 % 3.73 % |
AFS Securities (Amortized cost
AFS Securities (Amortized cost and fair value of AFS securities, with gross unrealized gains and losses) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 562,956 | $ 485,710 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,742 | 7,832 |
Gross Unrealized Losses | 19,779 | 2,941 |
AFS securities | 544,919 | 490,601 |
States and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 114,112 | 116,836 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,595 | 4,457 |
Gross Unrealized Losses | 1,692 | 88 |
AFS securities | 114,015 | 121,205 |
Auction rate money market preferred [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,200 | 3,200 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 42 |
Gross Unrealized Losses | 333 | 0 |
AFS securities | 2,867 | 3,242 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 50,775 | 54,710 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 9 | 1,438 |
Gross Unrealized Losses | 1,206 | 0 |
AFS securities | 49,578 | 56,148 |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 154,794 | 90,435 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 138 | 1,876 |
Gross Unrealized Losses | 2,491 | 10 |
AFS securities | 152,441 | 92,301 |
Corporate Debt Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,150 | 8,150 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 19 |
Gross Unrealized Losses | 400 | 167 |
AFS securities | 7,750 | 8,002 |
US Treasury Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 231,925 | 212,379 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Gross Unrealized Losses | 13,657 | 2,676 |
AFS securities | $ 218,268 | $ 209,703 |
AFS Securities (Amortized cos_2
AFS Securities (Amortized cost and fair value of AFS securities by contractual maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | $ 15,866 | |
Maturing, After One Year But Within Five Years | 284,859 | |
Maturing, After Five Years But Within Ten Years | 26,622 | |
Maturing, After Ten Years | 26,840 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 208,769 | |
Amortized Cost | 562,956 | $ 485,710 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less, Fair value | 15,917 | |
Maturing, After One Year But Within Five Years, Fair value | 271,929 | |
Maturing, After Five Years But Within Ten Years, Fair value | 26,157 | |
Maturing, After Ten Years, Fair value | 26,030 | |
Securities With Variable Monthly Payments or Noncontractual Maturities, Fair value | 204,886 | |
Total, Fair value | 544,919 | 490,601 |
States and political subdivisions [Member] | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | 15,866 | |
Maturing, After One Year But Within Five Years | 52,934 | |
Maturing, After Five Years But Within Ten Years | 18,472 | |
Maturing, After Ten Years | 26,840 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 | |
Amortized Cost | 114,112 | 116,836 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 114,015 | 121,205 |
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 | 3,200 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 2,867 | 3,242 |
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 | 50,775 | |
Amortized Cost | 50,775 | 54,710 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 49,578 | 56,148 |
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 | 154,794 | |
Amortized Cost | 154,794 | 90,435 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 152,441 | 92,301 |
Corporate Debt Securities | ||
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 | 8,150 | |
Maturing, After Ten Years | 0 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 | |
Amortized Cost | 8,150 | 8,150 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 7,750 | 8,002 |
US Treasury Securities | ||
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 | 231,925 | |
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 | 231,925 | 212,379 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | $ 218,268 | $ 209,703 |
AFS Securities (AFS securities
AFS Securities (AFS securities with gross unrealized losses) (Details) $ in Thousands | Mar. 31, 2022USD ($)Securities | Dec. 31, 2021USD ($)Securities |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 19,385 | $ 2,941 |
Fair Value, Less Than Twelve Months | 398,800 | 236,825 |
Gross Unrealized Losses, Twelve Months or More | 394 | 0 |
Fair Value, Twelve Months or More | 7,676 | 0 |
Total Unrealized Losses | $ 19,779 | $ 2,941 |
Number of Securities in an unrealized loss position, Less Than Twelve Months, Fair Value | Securities | 102 | 40 |
Number of Securities in an unrealized loss position, Twelve Months or More, Fair Value | Securities | 36 | 0 |
Number of Securities in an unrealized loss position, Total Unrealized Losses | Securities | 138 | 40 |
States and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 1,660 | $ 88 |
Fair Value, Less Than Twelve Months | 21,890 | 9,674 |
Gross Unrealized Losses, Twelve Months or More | 32 | 0 |
Fair Value, Twelve Months or More | 3,137 | 0 |
Total Unrealized Losses | 1,692 | 88 |
Auction rate money market preferred [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 0 | |
Fair Value, Less Than Twelve Months | 0 | |
Gross Unrealized Losses, Twelve Months or More | 333 | |
Fair Value, Twelve Months or More | 2,867 | |
Total Unrealized Losses | 333 | |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 2,491 | 10 |
Fair Value, Less Than Twelve Months | 104,218 | 11,165 |
Gross Unrealized Losses, Twelve Months or More | 0 | 0 |
Fair Value, Twelve Months or More | 0 | 0 |
Total Unrealized Losses | 2,491 | 10 |
US Treasury Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 13,657 | 2,676 |
Fair Value, Less Than Twelve Months | 218,268 | 209,703 |
Gross Unrealized Losses, Twelve Months or More | 0 | 0 |
Fair Value, Twelve Months or More | 0 | 0 |
Total Unrealized Losses | 13,657 | 2,676 |
Corporate Debt Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 371 | 167 |
Fair Value, Less Than Twelve Months | 6,079 | 6,283 |
Gross Unrealized Losses, Twelve Months or More | 29 | 0 |
Fair Value, Twelve Months or More | 1,672 | 0 |
Total Unrealized Losses | 400 | $ 167 |
Mortgage Backed Securities, Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 1,206 | |
Fair Value, Less Than Twelve Months | 48,345 | |
Gross Unrealized Losses, Twelve Months or More | 0 | |
Fair Value, Twelve Months or More | 0 | |
Total Unrealized Losses | $ 1,206 |
Loans and ALLL (Narrative) (Det
Loans and ALLL (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)loan | Mar. 31, 2021loan | Dec. 31, 2021USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period of continuous performance to return loans to accrual status | 6 months | ||
Migration analysis of loan portfolio period | 5 years | ||
Advance in connection with impaired loans | $ 1,310 | $ 266 | |
Loans in default | loan | 0 | 0 | |
Minimum [Member] | 4 - Low satisfactory [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Delinquency period | 10 days | ||
Minimum [Member] | 5 - Special mention [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Delinquency period | 30 days | ||
Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, amortization term | 30 years | ||
Maximum [Member] | 4 - Low satisfactory [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Delinquency period | 30 days | ||
Maximum [Member] | 5 - Special mention [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Delinquency period | 60 days | ||
Commercial, Agricultural, and Residential Portfolio Segments [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of days past due (or more), accrual of interest discontinued | 90 days | ||
Total Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maximum days of consumer loan charged off | 180 days | ||
Total Consumer [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, amortization term | 15 years | ||
Commercial And Agricultural Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maximum percentage of loan | 0.80 | ||
Commercial And Agricultural Portfolio Segment [Member] | Customer Concentration Risk [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maximum amount of loans | $ 15,000 | ||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maximum amount of loans | $ 80,000 | ||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan advance maturity period | 20 days | ||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan advance maturity period | 30 days | ||
Residential Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maximum percentage of loan | 1 | ||
Maximum percentage of principal, interest, taxes and hazard insurance on property over gross income | 0.28 | ||
Maximum percentage of debt servicing over gross income | 0.40 | ||
Maximum amount without corporation approval | $ 1,000 | ||
Residential, Privately Insured, Financing Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maximum percentage of loan | 0.80 |
Loans and ALLL (Summary of chan
Loans and ALLL (Summary of changes in ALLL by segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | $ 9,103 | $ 9,744 |
Allowance for loan losses, Charge-offs | (91) | (159) |
Allowance for loan losses, Recoveries | 155 | 209 |
Allowance for loan losses, Provision for loan losses | 37 | (523) |
Allowance for loan losses, Ending Balance | 9,204 | 9,271 |
Commercial [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 1,740 | 2,162 |
Allowance for loan losses, Charge-offs | 0 | (31) |
Allowance for loan losses, Recoveries | 14 | 82 |
Allowance for loan losses, Provision for loan losses | (509) | (514) |
Allowance for loan losses, Ending Balance | 1,245 | 1,699 |
Agricultural [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 289 | 311 |
Allowance for loan losses, Charge-offs | 0 | 0 |
Allowance for loan losses, Recoveries | 2 | 2 |
Allowance for loan losses, Provision for loan losses | 92 | (83) |
Allowance for loan losses, Ending Balance | 383 | 230 |
Residential Real Estate [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 747 | 1,363 |
Allowance for loan losses, Charge-offs | 0 | 0 |
Allowance for loan losses, Recoveries | 28 | 55 |
Allowance for loan losses, Provision for loan losses | (50) | (255) |
Allowance for loan losses, Ending Balance | 725 | 1,163 |
Consumer Portfolio Segment [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 908 | 798 |
Allowance for loan losses, Charge-offs | (91) | (128) |
Allowance for loan losses, Recoveries | 111 | 70 |
Allowance for loan losses, Provision for loan losses | (220) | 216 |
Allowance for loan losses, Ending Balance | 708 | 956 |
Unallocated [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 5,419 | 5,110 |
Allowance for loan losses, Charge-offs | 0 | 0 |
Allowance for loan losses, Recoveries | 0 | 0 |
Allowance for loan losses, Provision for loan losses | 724 | 113 |
Allowance for loan losses, Ending Balance | $ 6,143 | $ 5,223 |
Loans and ALLL (Summary of reco
Loans and ALLL (Summary of recorded investment in loans by segments) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment, ALLL | $ 573 | $ 578 | ||
Collectively evaluated for impairment, ALLL | 8,631 | 8,525 | ||
Total, ALLL | 9,204 | 9,103 | $ 9,271 | $ 9,744 |
Individually evaluated for impairment, Loans | 23,463 | 26,910 | ||
Collectively evaluated for impairment, Loans | 1,194,908 | 1,274,127 | ||
Total | 1,218,371 | 1,301,037 | ||
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment, ALLL | 9 | 13 | ||
Collectively evaluated for impairment, ALLL | 1,236 | 1,727 | ||
Total, ALLL | 1,245 | 1,740 | 1,699 | 2,162 |
Individually evaluated for impairment, Loans | 9,072 | 9,267 | ||
Collectively evaluated for impairment, Loans | 718,542 | 798,172 | ||
Total | 727,614 | 807,439 | ||
Agricultural [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||
Collectively evaluated for impairment, ALLL | 383 | 289 | ||
Total, ALLL | 383 | 289 | 230 | 311 |
Individually evaluated for impairment, Loans | 11,101 | 14,189 | ||
Collectively evaluated for impairment, Loans | 77,068 | 79,766 | ||
Total | 88,169 | 93,955 | ||
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment, ALLL | 564 | 565 | ||
Collectively evaluated for impairment, ALLL | 161 | 182 | ||
Total, ALLL | 725 | 747 | 1,163 | 1,363 |
Individually evaluated for impairment, Loans | 3,290 | 3,454 | ||
Collectively evaluated for impairment, Loans | 325,269 | 322,907 | ||
Total | 328,559 | 326,361 | ||
Total Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||
Collectively evaluated for impairment, ALLL | 708 | 908 | ||
Total, ALLL | 708 | 908 | 956 | 798 |
Individually evaluated for impairment, Loans | 0 | 0 | ||
Collectively evaluated for impairment, Loans | 74,029 | 73,282 | ||
Total | 74,029 | 73,282 | ||
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||
Collectively evaluated for impairment, ALLL | 6,143 | 5,419 | ||
Total, ALLL | $ 6,143 | $ 5,419 | $ 5,223 | $ 5,110 |
Loans and ALLL (Credit quality
Loans and ALLL (Credit quality indicators for commercial and agricultural credit exposures) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 1,218,371 | $ 1,301,037 |
Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 727,614 | 807,439 |
Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 570,461 | 570,587 |
Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 157,153 | 164,851 |
Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 72,001 |
Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 88,169 | 93,955 |
Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 63,763 | 66,144 |
Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 24,406 | 27,811 |
Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 815,783 | 901,394 |
1 - Excellent [Member] | Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 300 | 300 |
1 - Excellent [Member] | Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 300 | 300 |
1 - Excellent [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 300 | 300 |
2 - High quality [Member] | Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 17,563 | 15,891 |
2 - High quality [Member] | Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 9,022 | 9,010 |
2 - High quality [Member] | Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 8,541 | 6,881 |
2 - High quality [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
2 - High quality [Member] | Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 383 | 453 |
2 - High quality [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 383 | 453 |
2 - High quality [Member] | Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
2 - High quality [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 17,946 | 16,344 |
3 - High satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 114,989 | 204,223 |
3 - High satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 76,238 | 86,135 |
3 - High satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 38,751 | 46,087 |
3 - High satisfactory [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 72,001 |
3 - High satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 13,093 | 13,656 |
3 - High satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 8,458 | 9,361 |
3 - High satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,635 | 4,295 |
3 - High satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 128,082 | 217,879 |
4 - Low satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 559,258 | 552,864 |
4 - Low satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 457,918 | 448,489 |
4 - Low satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 101,340 | 104,375 |
4 - Low satisfactory [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
4 - Low satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 47,944 | 52,469 |
4 - Low satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 35,592 | 36,483 |
4 - Low satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 12,352 | 15,986 |
4 - Low satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 607,202 | 605,333 |
5 - Special mention [Member] | Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 16,269 | 14,563 |
5 - Special mention [Member] | Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 13,770 | 13,212 |
5 - Special mention [Member] | Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,499 | 1,351 |
5 - Special mention [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
5 - Special mention [Member] | Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 17,294 | 16,548 |
5 - Special mention [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 12,805 | 13,096 |
5 - Special mention [Member] | Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,489 | 3,452 |
5 - Special mention [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 33,563 | 31,111 |
6 - Substandard [Member] | Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 18,916 | 19,257 |
6 - Substandard [Member] | Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 13,301 | 13,519 |
6 - Substandard [Member] | Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 5,615 | 5,738 |
6 - Substandard [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
6 - Substandard [Member] | Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 9,172 | 10,055 |
6 - Substandard [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 6,409 | 6,252 |
6 - Substandard [Member] | Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,763 | 3,803 |
6 - Substandard [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 28,088 | 29,312 |
7 - Vulnerable [Member] | Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 319 | 341 |
7 - Vulnerable [Member] | Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 212 | 222 |
7 - Vulnerable [Member] | Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 107 | 119 |
7 - Vulnerable [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
7 - Vulnerable [Member] | Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 283 | 774 |
7 - Vulnerable [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 116 | 499 |
7 - Vulnerable [Member] | Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 167 | 275 |
7 - Vulnerable [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 602 | 1,115 |
8 - Doubtful [Member] | Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Total commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Total agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Agricultural other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 0 | $ 0 |
Loans and ALLL (Past due and cu
Loans and ALLL (Past due and current loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 0 | $ 97 |
Nonaccrual | 747 | 1,245 |
Total Past Due and Nonaccrual | 2,364 | 4,031 |
Total | 1,218,371 | 1,301,037 |
Loans and Leases Receivable, Gross | 1,218,371 | 1,301,037 |
Total commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 319 | 341 |
Total Past Due and Nonaccrual | 412 | 561 |
Total | 727,614 | 807,439 |
Loans and Leases Receivable, Gross | 727,614 | 807,439 |
Commercial real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 212 | 222 |
Total Past Due and Nonaccrual | 280 | 357 |
Total | 570,461 | 570,587 |
Loans and Leases Receivable, Gross | 570,461 | 570,587 |
Commercial other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 107 | 119 |
Total Past Due and Nonaccrual | 132 | 204 |
Total | 157,153 | 164,851 |
Loans and Leases Receivable, Gross | 157,153 | 164,851 |
Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Total | 0 | 72,001 |
Loans and Leases Receivable, Gross | 0 | 72,001 |
Total agricultural [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 283 | 774 |
Total Past Due and Nonaccrual | 283 | 987 |
Total | 88,169 | 93,955 |
Loans and Leases Receivable, Gross | 88,169 | 93,955 |
Agricultural real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 116 | 499 |
Total Past Due and Nonaccrual | 116 | 712 |
Total | 63,763 | 66,144 |
Loans and Leases Receivable, Gross | 63,763 | 66,144 |
Agricultural other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 167 | 275 |
Total Past Due and Nonaccrual | 167 | 275 |
Total | 24,406 | 27,811 |
Loans and Leases Receivable, Gross | 24,406 | 27,811 |
Total residential real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 97 |
Nonaccrual | 145 | 130 |
Total Past Due and Nonaccrual | 1,560 | 2,287 |
Total | 328,559 | 326,361 |
Loans and Leases Receivable, Gross | 328,559 | 326,361 |
Residential real estate senior liens [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 97 |
Nonaccrual | 145 | 93 |
Total Past Due and Nonaccrual | 1,529 | 2,243 |
Loans and Leases Receivable, Gross | 294,261 | 293,143 |
Residential real estate junior liens [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 14 | 0 |
Loans and Leases Receivable, Gross | 2,235 | 2,439 |
Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 0 | 37 |
Total Past Due and Nonaccrual | 17 | 44 |
Loans and Leases Receivable, Gross | 32,063 | 30,779 |
Total Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 109 | 196 |
Total | 74,029 | 73,282 |
Loans and Leases Receivable, Gross | 74,029 | 73,282 |
Consumer secured [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 100 | 186 |
Loans and Leases Receivable, Gross | 70,914 | 70,445 |
Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 9 | 10 |
Loans and Leases Receivable, Gross | 3,115 | 2,837 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,605 | 2,652 |
Financial Asset, 30 to 59 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 93 | 220 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 68 | 135 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25 | 85 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 213 |
Financial Asset, 30 to 59 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 213 |
Financial Asset, 30 to 59 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Total residential real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,415 | 2,023 |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,384 | 2,016 |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 14 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17 | 7 |
Financial Asset, 30 to 59 Days Past Due [Member] | Total Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 97 | 196 |
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 88 | 186 |
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 9 | 10 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12 | 37 |
Financial Asset, 60 to 89 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Total residential real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 37 |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 37 |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Total Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,216,007 | 1,297,006 |
Financial Asset, Not Past Due | Total commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 727,202 | 806,878 |
Financial Asset, Not Past Due | Commercial real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 570,181 | 570,230 |
Financial Asset, Not Past Due | Commercial other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 157,021 | 164,647 |
Financial Asset, Not Past Due | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 72,001 |
Financial Asset, Not Past Due | Total agricultural [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 87,886 | 92,968 |
Financial Asset, Not Past Due | Agricultural real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 63,647 | 65,432 |
Financial Asset, Not Past Due | Agricultural other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 24,239 | 27,536 |
Financial Asset, Not Past Due | Total residential real estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 326,999 | 324,074 |
Financial Asset, Not Past Due | Residential real estate senior liens [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 292,732 | 290,900 |
Financial Asset, Not Past Due | Residential real estate junior liens [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,221 | 2,439 |
Financial Asset, Not Past Due | Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 32,046 | 30,735 |
Financial Asset, Not Past Due | Total Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 73,920 | 73,086 |
Financial Asset, Not Past Due | Consumer secured [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 70,814 | 70,259 |
Financial Asset, Not Past Due | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 3,106 | $ 2,827 |
Loans and ALLL (Summary of info
Loans and ALLL (Summary of information pertaining to impaired loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | $ 6,153 | $ 6,411 | |
Impaired loans without a valuation allowance, Outstanding Balance | 17,310 | 20,499 | |
Impaired loans, Outstanding Balance | 23,463 | 26,910 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 6,425 | 6,683 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 17,626 | 20,815 | |
Impaired loans, Unpaid Principal Balance | 24,051 | 27,498 | |
Impaired loans, Valuation Allowance | 573 | 578 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 6,280 | $ 8,894 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 18,907 | 22,022 | |
Impaired loans, Average Outstanding Balance | 25,187 | 30,916 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 68 | 82 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 265 | 334 | |
Impaired loans, Interest Income Recognized | 333 | 416 | |
Total commercial [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 9,072 | 9,267 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 9,388 | 9,584 | |
Impaired loans, Valuation Allowance | 9 | 13 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 9,168 | 12,059 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 129 | 169 | |
Commercial real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 192 | 192 | |
Impaired loans without a valuation allowance, Outstanding Balance | 5,740 | 5,829 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 192 | 193 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 6,056 | 6,145 | |
Impaired loans, Valuation Allowance | 8 | 9 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 189 | 2,424 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 5,785 | 4,907 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 3 | 28 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 85 | 101 | |
Commercial other [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 2,671 | 2,802 | |
Impaired loans without a valuation allowance, Outstanding Balance | 469 | 444 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 2,671 | 2,802 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 469 | 444 | |
Impaired loans, Valuation Allowance | 1 | 4 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 2,737 | 54 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 457 | 4,674 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 30 | 0 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 11 | 40 | |
Total agricultural [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 11,101 | 14,189 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 11,101 | 14,189 | |
Impaired loans, Valuation Allowance | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 12,646 | 14,629 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 169 | 204 | |
Agricultural real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Outstanding Balance | 7,967 | 9,538 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 7,967 | 9,538 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 0 | 1,510 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 8,753 | 9,418 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 11 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 124 | 132 | |
Agricultural other [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Outstanding Balance | 3,134 | 4,651 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 3,134 | 4,651 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 0 | 678 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 3,893 | 3,023 | |
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 | 45 | 61 | |
Total residential real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 3,290 | 3,454 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 3,562 | 3,725 | |
Impaired loans, Valuation Allowance | 564 | 565 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 3,373 | 4,228 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 35 | 43 | |
Residential real estate senior liens [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 3,290 | 3,417 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 3,562 | 3,688 | |
Impaired loans, Valuation Allowance | 564 | 565 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 3,354 | 4,228 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 35 | 43 | |
Residential real estate home equity lines of credit [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Outstanding Balance | 0 | 37 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 0 | $ 37 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Average Outstanding Balance | 19 | 0 | |
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 | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | $ 6,280 | $ 8,894 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 68 | $ 82 |
Number of Loans | loan | 1 | 9 |
Pre-Modification Recorded Investment | $ 98 | $ 8,364 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 98 | $ 8,364 |
Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 7 |
Pre-Modification Recorded Investment | $ 0 | $ 6,901 |
Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1 | 2 |
Pre-Modification Recorded Investment | $ 98 | $ 1,463 |
Commercial other [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,737 | 54 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 30 | $ 0 |
Number of Loans | loan | 0 | 3 |
Pre-Modification Recorded Investment | $ 0 | $ 4,652 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 0 | $ 4,652 |
Commercial other [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 3,189 |
Commercial other [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 2 |
Pre-Modification Recorded Investment | $ 0 | $ 1,463 |
Agricultural other [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 678 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 0 | $ 0 |
Number of Loans | loan | 0 | 6 |
Pre-Modification Recorded Investment | $ 0 | $ 3,712 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 0 | $ 3,712 |
Agricultural other [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 6 |
Pre-Modification Recorded Investment | $ 0 | $ 3,712 |
Agricultural other [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Residential real estate senior liens [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,354 | 4,228 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 35 | $ 43 |
Number of Loans | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 98 | $ 0 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 98 | $ 0 |
Residential real estate senior liens [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Residential real estate senior liens [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 98 | $ 0 |
Loans and ALLL (Summary of TDR
Loans and ALLL (Summary of TDR loan balances) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Troubled debt restructurings | $ 22,745 | $ 25,725 |
Borrowed Funds (Borrowed funds
Borrowed Funds (Borrowed funds obligations) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule of Debt [Line Items] | |||
Borrowed funds | $ 90,534 | $ 99,320 | |
Securities Sold under Agreements to Repurchase [Member] | |||
Schedule of Debt [Line Items] | |||
Short-term Debt, Maximum Month-end Outstanding Amount | 53,970 | $ 54,288 | |
Borrowed funds | $ 51,353 | $ 50,162 | |
Borrowed funds, Rate | 0.13% | 0.07% | |
Federal Funds Purchased [Member] | |||
Schedule of Debt [Line Items] | |||
Short-term Debt, Maximum Month-end Outstanding Amount | $ 0 | $ 0 |
Borrowed Funds (Maturity and we
Borrowed Funds (Maturity and weighted average interest rates of FHLB advances) (Details) - Federal Home Loan Bank, Advances, Fixed Rate Due 2022 [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.87% | 1.97% |
FHLB fixed rate advances | $ 10,000 | $ 20,000 |
Borrowed Funds (Short-term borr
Borrowed Funds (Short-term borrowings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Maximum Month End Balance | $ 53,970 | $ 54,288 |
Average Balance | $ 49,058 | $ 54,145 |
Weighted Average Interest Rate During the Period | 0.07% | 0.12% |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Maximum Month End Balance | $ 0 | $ 0 |
Average Balance | $ 1 | $ 0 |
Weighted Average Interest Rate During the Period | 0.61% | 0.00% |
Borrowed Funds (Pledged financi
Borrowed Funds (Pledged financial instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Pledged to secure borrowed funds | $ 334,415 | $ 334,415 |
Pledged to secure repurchase agreements | 51,665 | 50,173 |
Pledged for public deposits and for other purposes necessary or required by law | 28,154 | 28,154 |
Total | 414,234 | 412,742 |
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 51,665 | 50,173 |
State and Local Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 14,718 | 13,491 |
Mortgage Backed Securities, Other [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 12,938 | 13,174 |
Collateralized Mortgage Obligations [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 14,009 | 13,797 |
US Treasury Securities | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | $ 10,000 | $ 9,711 |
Borrowed Funds (Subordinated De
Borrowed Funds (Subordinated Debt) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Subordinated Borrowing [Line Items] | ||
Subordinated Borrowing, Interest Rate | 3.25% | 3.25% |
Subordinated Debt | $ 29,181,000 | $ 29,158,000 |
Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (819,000) | (842,000) |
Debt Instrument, Face Amount | $ 30,000,000 | $ 30,000,000 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Carrying value of securities sold under agreements to repurchase | $ 51,665 | $ 50,173 |
Short-term Debt [Line Items] | ||
Pledged to secure repurchase agreements | 51,665 | 50,173 |
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 51,665 | $ 50,173 |
Additional borrowing capacity | $ 326,885 |
Computation of Earnings Per C_3
Computation of Earnings Per Common Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Earnings Per Share [Abstract] | |||
Average number of common shares outstanding for basic calculation | 7,533,711 | 7,969,462 | |
Average number of common shares outstanding used to calculate diluted earnings per common share | 7,639,688 | 8,088,524 | |
NET INCOME | $ 4,734 | $ 5,398 | |
Basic (in dollars per share) | $ 0.63 | $ 0.68 | |
Diluted (in dollars per share) | $ 0.62 | $ 0.67 | |
Isabella Bank Corporation Restricted Stock Plan | |||
Earnings Per Share [Abstract] | |||
Average potential effect of common shares in the Directors Plan | 22,439 | 4,678 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 22,439 | 4,678 | |
Isabella Bank Corporation and Related Companies Deferred Compensation Plan for Directors | |||
Earnings Per Share [Abstract] | |||
Average potential effect of common shares in the Directors Plan | [1] | 83,538 | 114,384 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | [1] | 83,538 | 114,384 |
[1] | Exclusive of shares held in the Rabbi Trust |
Restricted Stock Plan (Details)
Restricted Stock Plan (Details) - Restricted Stock - Isabella Bank Corporation Restricted Stock Plan - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 31 | $ 4 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 29 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 26,846 | 20,123 | 20,123 | 4,658 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 592 | $ 418 | $ 418 | $ 82 |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | 174 | 336 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 0 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 6,723 | 15,465 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | 0 | ||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 424 | |||
Minimum [Member] | ||||
Share-based Payment Arrangement [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Employee Annual Salary | 2500.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Employee Annual Salary | 2500.00% | |||
Maximum [Member] | ||||
Share-based Payment Arrangement [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Employee Annual Salary | 4000.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Employee Annual Salary | 4000.00% |
Other Noninterest Expenses (Exp
Other Noninterest Expenses (Expenses included in other noninterest expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Summary of expenses included in other noninterest expenses | ||
ATM and Debit Card Expense | $ 434 | $ 417 |
Professional Fees | 549 | 436 |
Directors fees | 201 | 159 |
Expense Related to Distribution or Servicing and Underwriting Fees | 182 | 190 |
FDIC insurance premiums | 125 | 231 |
Donations and community relations | 287 | 146 |
Marketing Expense | 239 | 209 |
Memberships and Subscriptions Expense | 217 | 211 |
All other | 596 | 623 |
Total other | $ 2,830 | $ 2,622 |
Federal Income Taxes (Details)
Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory tax rate | 21.00% | 21.00% |
Income taxes at 34% statutory rate | $ 1,190 | $ 1,352 |
Interest income on tax exempt municipal securities | (134) | (172) |
Earnings on corporate owned life insurance policies | (55) | (70) |
Other | (4) | (6) |
Total effect of nontaxable income | (193) | (248) |
Effect of nondeductible expenses | 11 | 9 |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | 73 | 72 |
Federal income tax expense | $ 935 | $ 1,041 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,859 | $ 7,698 |
OCI before reclassifications | 22,928 | 3,519 |
Tax effect | 4,736 | 737 |
Unrealized gains (losses), net of tax | (18,192) | (2,782) |
Ending Balance | (16,333) | 4,916 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 3,873 | 10,485 |
OCI before reclassifications | 22,928 | 3,545 |
Tax effect | 4,736 | 742 |
Unrealized gains (losses), net of tax | (18,192) | (2,803) |
Ending Balance | (14,319) | 7,682 |
Defined Benefit Pension Plan [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (2,014) | (2,745) |
OCI before reclassifications | 0 | 0 |
Tax effect | 0 | 0 |
Unrealized gains (losses), net of tax | 0 | 0 |
Ending Balance | (2,014) | (2,745) |
Gain (Loss) on Derivative Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | (42) |
OCI before reclassifications | 0 | (26) |
Tax effect | 0 | (5) |
Unrealized gains (losses), net of tax | 0 | 21 |
Ending Balance | 0 | (21) |
Auction Rate Money Market Preferred Stocks [Member] | Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Unrealized gains (losses), net of tax | $ (375) | $ (13) |
Fair Value (Quantitative inform
Fair Value (Quantitative information about impaired loans) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discounted appraisal value at fair value | $ 15,639 | $ 18,812 |
Loans Receivable, Collateralized By Cash Crop Inventory [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 40.00% | 40.00% |
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 40.00% | 40.00% |
Loans Receivable, Collateralized By Livestock [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 30.00% | 30.00% |
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 30.00% | 30.00% |
Real Estate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 23.00% | 23.00% |
Real Estate [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 20.00% | 20.00% |
Real Estate [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 30.00% | 30.00% |
Equipment [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 28.00% | 28.00% |
Equipment [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 20.00% | 20.00% |
Equipment [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 40.00% | 35.00% |
Loans Receivable, Collateralized By Accounts Receivable [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 50.00% | 50.00% |
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 50.00% | 50.00% |
Liquor License [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 75.00% | 75.00% |
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 75.00% | 75.00% |
Furniture and Fixtures [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 45.00% | |
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 45.00% |
Fair Value (Carrying amount and
Fair Value (Carrying amount and estimated fair value of financial instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
LIABILITIES | |||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | $ 51,353 | $ 50,162 | |
Level 1 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 161,186 | 105,330 | |
Mortgage loans AFS | 0 | 0 | |
Total loans | 0 | 0 | |
Less allowance for loan losses | 0 | 0 | |
Net loans | 0 | 0 | |
Accrued interest receivable | 6,176 | 5,804 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 0 | 0 | |
LIABILITIES | |||
Deposits without stated maturities | 1,483,855 | 1,409,577 | |
Deposits with stated maturities | 0 | 0 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 0 | 0 | |
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 0 | 0 | |
Subordinated Debt Obligations, Fair Value Disclosure | 0 | 0 | |
Accrued interest payable | 210 | 251 | |
Level 2 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Mortgage loans AFS | 1,002 | 1,797 | |
Total loans | 0 | 0 | |
Less allowance for loan losses | 0 | 0 | |
Net loans | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 2,763 | 2,753 | |
LIABILITIES | |||
Deposits without stated maturities | 0 | 0 | |
Deposits with stated maturities | 275,379 | 301,216 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 51,339 | 50,153 | |
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 10,030 | 20,120 | |
Subordinated Debt Obligations, Fair Value Disclosure | 26,128 | 27,435 | |
Accrued interest payable | 0 | 0 | |
Level 3 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Mortgage loans AFS | 0 | 0 | |
Total loans | 1,203,988 | 1,296,841 | |
Less allowance for loan losses | 9,204 | 9,103 | |
Net loans | 1,194,784 | 1,287,738 | |
Accrued interest receivable | 0 | 0 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 0 | 0 | |
LIABILITIES | |||
Deposits without stated maturities | 0 | 0 | |
Deposits with stated maturities | 0 | 0 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 0 | 0 | |
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 0 | 0 | |
Subordinated Debt Obligations, Fair Value Disclosure | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Carrying Value [Member] | |||
ASSETS | |||
Cash and cash equivalents | 161,186 | 105,330 | |
Mortgage loans AFS | 969 | 1,735 | |
Total loans | 1,218,371 | 1,301,037 | |
Less allowance for loan losses | 9,204 | 9,103 | |
Net loans | 1,209,167 | 1,291,934 | |
Accrued interest receivable | 6,176 | 5,804 | |
Equity securities without readily determinable fair values | [1] | 15,095 | 17,383 |
Originated mortgage servicing rights | 2,388 | 2,124 | |
LIABILITIES | |||
Deposits without stated maturities | 1,483,855 | 1,409,577 | |
Deposits with stated maturities | 280,306 | 300,762 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 51,353 | 50,162 | |
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 10,000 | 20,000 | |
Subordinated Debt Obligations, Fair Value Disclosure | 29,181 | 29,158 | |
Accrued interest payable | 210 | 251 | |
Estimated Fair Value [Member] | |||
ASSETS | |||
Cash and cash equivalents | 161,186 | 105,330 | |
Mortgage loans AFS | 1,002 | 1,797 | |
Total loans | 1,203,988 | 1,296,841 | |
Less allowance for loan losses | 9,204 | 9,103 | |
Net loans | 1,194,784 | 1,287,738 | |
Accrued interest receivable | 6,176 | 5,804 | |
Originated mortgage servicing rights | 2,763 | 2,753 | |
LIABILITIES | |||
Deposits without stated maturities | 1,483,855 | 1,409,577 | |
Deposits with stated maturities | 275,379 | 301,216 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 51,339 | 50,153 | |
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 10,030 | 20,120 | |
Subordinated Debt Obligations, Fair Value Disclosure | 26,128 | 27,435 | |
Accrued interest payable | $ 210 | $ 251 | |
[1] | Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. When an impairment or write-down related to these securities is recorded, such amount would be classified as a nonrecurring Level 3 fair value adjustment. |
Fair Value (Recorded amount of
Fair Value (Recorded amount of assets and liabilities measured at fair value) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
AFS Securities | ||
AFS securities | $ 544,919 | $ 490,601 |
Fair value, total | 560,558 | 509,624 |
US Treasury Securities | ||
AFS Securities | ||
AFS securities | 218,268 | 209,703 |
Level 1 [Member] | ||
AFS Securities | ||
Fair value, total | $ 0 | $ 0 |
Percent of assets and liabilities measured at fair value | 0.00% | 0.00% |
Level 2 [Member] | ||
AFS Securities | ||
Fair value, total | $ 544,919 | $ 490,601 |
Percent of assets and liabilities measured at fair value | 97.21% | 96.27% |
Level 3 [Member] | ||
AFS Securities | ||
Fair value, total | $ 15,639 | $ 19,023 |
Percent of assets and liabilities measured at fair value | 2.79% | 3.73% |
Recurring items [Member] | ||
AFS Securities | ||
AFS securities | $ 544,919 | $ 490,601 |
Recurring items [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 114,015 | 121,205 |
Recurring items [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 2,867 | 3,242 |
Recurring items [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 49,578 | 56,148 |
Recurring items [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 152,441 | 92,301 |
Recurring items [Member] | Corporate Debt Securities | ||
AFS Securities | ||
AFS securities | 7,750 | 8,002 |
Recurring items [Member] | US Treasury Securities | ||
AFS Securities | ||
AFS securities | 218,268 | 209,703 |
Recurring items [Member] | Level 1 [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Corporate Debt Securities | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | US Treasury Securities | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 2 [Member] | ||
AFS Securities | ||
AFS securities | 544,919 | 490,601 |
Recurring items [Member] | Level 2 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 114,015 | 121,205 |
Recurring items [Member] | Level 2 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 2,867 | 3,242 |
Recurring items [Member] | Level 2 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 49,578 | 56,148 |
Recurring items [Member] | Level 2 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 152,441 | 92,301 |
Recurring items [Member] | Level 2 [Member] | Corporate Debt Securities | ||
AFS Securities | ||
AFS securities | 7,750 | 8,002 |
Recurring items [Member] | Level 2 [Member] | US Treasury Securities | ||
AFS Securities | ||
AFS securities | 218,268 | 209,703 |
Recurring items [Member] | Level 3 [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Corporate Debt Securities | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | US Treasury Securities | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Nonrecurring items [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 15,639 | 18,812 |
Foreclosed Assets, Fair Value Disclosure | 0 | 211 |
Nonrecurring items [Member] | Level 1 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Foreclosed Assets, Fair Value Disclosure | 0 | 0 |
Nonrecurring items [Member] | Level 2 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Foreclosed Assets, Fair Value Disclosure | 0 | 0 |
Nonrecurring items [Member] | Level 3 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 15,639 | 18,812 |
Foreclosed Assets, Fair Value Disclosure | $ 0 | $ 211 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Servicing Rights (MSR) Impairment (Recovery) | $ (300) | $ 0 |
Operating Segments (Narrative)
Operating Segments (Narrative) (Details) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Segment Reporting [Abstract] | |||
Percentage of reportable segments total assets and operating results, or more | 90.00% | 90.00% | 90.00% |