Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 07, 2019 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | HAWTHORN BANCSHARES, INC. | |
Entity Central Index Key | 0000893847 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,276,236 | |
Entity Current Reporting Status | Yes | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 22,856 | $ 23,687 |
Federal funds sold and other interest-bearing deposits | 21,559 | 18,396 |
Cash and cash equivalents | 44,415 | 42,083 |
Certificates of deposit in other banks | 11,601 | 12,247 |
Available-for-sale debt securities, at fair value | 181,270 | 218,205 |
Other investments | 6,210 | 5,675 |
Total investment securities | 187,480 | 223,880 |
Loans | 1,151,518 | 1,146,627 |
Allowances for loan losses | (12,178) | (11,652) |
Net loans | 1,139,340 | 1,134,975 |
Premises and equipment - net | 35,754 | 34,894 |
Mortgage servicing rights | 2,575 | 2,931 |
Other real estate owned - net | 12,878 | 13,691 |
Accrued interest receivable | 6,215 | 6,162 |
Cash surrender value - life insurance | 2,385 | 2,542 |
Other assets | 6,695 | 8,277 |
Total assets | 1,449,338 | 1,481,682 |
Deposits | ||
Non-interest bearing demand | 284,452 | 262,857 |
Savings, interest checking and money market | 550,350 | 614,040 |
Time deposits $250,000 and over | 94,970 | 104,900 |
Other time deposits | 207,635 | 216,671 |
Total deposits | 1,137,407 | 1,198,468 |
Federal funds purchased and securities sold under agreements to repurchase | 27,191 | 24,647 |
Federal Home Loan Bank advances and other borrowings | 106,980 | 95,153 |
Subordinated notes | 49,486 | 49,486 |
Operating lease liabilities | 2,285 | |
Accrued interest payable | 1,020 | 1,035 |
Other liabilities | 12,155 | 13,479 |
Total liabilities | 1,336,524 | 1,382,268 |
Stockholders' equity: | ||
Common stock, $1 par value, authorized 15,000,000 shares; issued 6,519,874 and 6,278,481 shares, respectively | 6,520 | 6,279 |
Surplus | 55,727 | 50,173 |
Retained earnings | 58,275 | 54,105 |
Accumulated other comprehensive loss, net of tax | (2,664) | (6,099) |
Treasury stock; 243,638 shares, at cost | (5,044) | (5,044) |
Total stockholders' equity | 112,814 | 99,414 |
Total liabilities and stockholders' equity | $ 1,449,338 | $ 1,481,682 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 6,519,874 | 6,278,481 |
Treasury stock, shares | 243,638 | 243,638 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 14,806 | $ 13,252 | $ 43,662 | $ 38,329 |
Interest on investment securities: | ||||
Taxable | 831 | 1,089 | 2,857 | 3,141 |
Nontaxable | 119 | 146 | 408 | 451 |
Federal funds sold, other interest-bearing deposits, and certificates of deposit in other banks | 103 | 205 | 897 | 500 |
Dividends on other investments | 66 | 59 | 199 | 162 |
Total interest income | 15,925 | 14,751 | 48,023 | 42,583 |
Interest on deposits: | ||||
Savings, interest checking and money market | 1,047 | 1,468 | 4,217 | 3,899 |
Time deposit accounts $250,000 and over | 475 | 391 | 1,761 | 825 |
Time deposits | 801 | 520 | 2,268 | 1,566 |
Total interest expense on deposits | 2,323 | 2,379 | 8,246 | 6,290 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 34 | 166 | 110 | 526 |
Interest on Federal Home Loan Bank advances | 619 | 314 | 1,699 | 1,042 |
Interest on subordinated notes | 588 | 584 | 1,821 | 1,635 |
Total interest expense on borrowings | 1,241 | 1,064 | 3,630 | 3,203 |
Total interest expense | 3,564 | 3,443 | 11,876 | 9,493 |
Net interest income | 12,361 | 11,308 | 36,147 | 33,090 |
Provision for loan losses | 450 | 250 | 850 | 1,000 |
Net interest income after provision for loan losses | 11,911 | 11,058 | 35,297 | 32,090 |
NON-INTEREST INCOME | ||||
Gain on sale of mortgage loans, net | 215 | 205 | 499 | 592 |
Other | 55 | 50 | 157 | 113 |
Total non-interest income | 2,424 | 2,364 | 6,637 | 6,970 |
Investment securities (loss) gain, net | (40) | 50 | (40) | 256 |
Gain on branch sale, net | 109 | 2,183 | 0 | |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 5,366 | 5,543 | 16,220 | 17,413 |
Occupancy expense, net | 909 | 749 | 2,348 | 2,162 |
Furniture and equipment expense | 671 | 785 | 2,166 | 2,104 |
Processing, network, and bank card expense | 893 | 841 | 2,867 | 2,589 |
Legal, examination, and professional fees | 316 | 289 | 948 | 913 |
Advertising and promotion | 343 | 297 | 884 | 840 |
Postage, printing, and supplies | 181 | 256 | 650 | 749 |
Other | 911 | 1,168 | 3,066 | 3,368 |
Total non-interest expense | 9,590 | 9,928 | 29,149 | 30,138 |
Income before income taxes | 4,814 | 3,544 | 14,928 | 9,178 |
Income tax expense | 954 | 446 | 2,882 | 1,083 |
Net income | $ 3,860 | $ 3,098 | $ 12,046 | $ 8,095 |
Basic earnings per share (in dollars per share) | $ 0.62 | $ 0.49 | $ 1.92 | $ 1.29 |
Diluted earnings per share (in dollars per share) | $ 0.62 | $ 0.49 | $ 1.92 | $ 1.29 |
Service charges and other fees | ||||
NON-INTEREST INCOME | ||||
Income from fees | $ 953 | $ 942 | $ 2,701 | $ 2,760 |
Bank card income and fees | ||||
NON-INTEREST INCOME | ||||
Income from fees | 794 | 699 | 2,282 | 2,064 |
Trust department income | ||||
NON-INTEREST INCOME | ||||
Income from fees | 371 | 276 | 960 | 867 |
Real estate servicing fees, net | ||||
NON-INTEREST INCOME | ||||
Income from fees | $ 36 | $ 192 | $ 38 | $ 574 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 3,860 | $ 3,098 | $ 12,046 | $ 8,095 |
Investment securities available-for-sale: | ||||
Unrealized gain (loss) on investment securities available-for-sale, net of tax | 280 | (936) | 3,357 | (3,093) |
Adjustment for gain on sale of investment securities, net of tax | 32 | 0 | 32 | 0 |
Defined benefit pension plans: | ||||
Amortization of prior service cost included in net periodic pension cost, net of tax | 15 | 44 | 46 | 129 |
Total other comprehensive income (loss) | 327 | (892) | 3,435 | (2,964) |
Total comprehensive income | $ 4,187 | $ 2,206 | $ 15,481 | $ 5,131 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total |
Balance at Dec. 31, 2017 | $ 6,047 | $ 45,442 | $ 50,595 | $ (5,662) | $ (5,051) | $ 91,371 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 8,095 | 0 | 0 | 8,095 |
Other comprehensive income (loss) | 0 | 0 | 0 | (2,964) | 0 | (2,964) |
Issuance of stock under equity compensation plan | 0 | (51) | 0 | 0 | 186 | 135 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (179) | (179) |
Stock dividend | 232 | 4,782 | (5,014) | 0 | 0 | 0 |
Cash dividends declared, common stock | 0 | 0 | (1,586) | 0 | 0 | (1,586) |
Balance at Sep. 30, 2018 | 6,279 | 50,173 | 52,090 | (8,626) | (5,044) | 94,872 |
Balance at Jun. 30, 2018 | 6,047 | 50,456 | 49,594 | (7,734) | (5,230) | 93,133 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 3,098 | 0 | 0 | 3,098 |
Other comprehensive income (loss) | 0 | 0 | 0 | (892) | 0 | (892) |
Issuance of stock under equity compensation plan | 0 | (51) | 0 | 0 | 186 | 135 |
Stock dividend | 232 | (232) | 0 | 0 | 0 | 0 |
Cash dividends declared, common stock | 0 | 0 | (602) | 0 | 0 | (602) |
Balance at Sep. 30, 2018 | 6,279 | 50,173 | 52,090 | (8,626) | (5,044) | 94,872 |
Balance at Dec. 31, 2018 | 6,279 | 50,173 | 54,105 | (6,099) | (5,044) | 99,414 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 12,046 | 0 | 0 | 12,046 |
Other comprehensive income (loss) | 0 | 0 | 0 | 3,435 | 0 | 3,435 |
Stock dividend | 241 | 5,554 | (5,795) | 0 | 0 | 0 |
Cash dividends declared, common stock | 0 | 0 | (2,081) | 0 | 0 | (2,081) |
Balance at Sep. 30, 2019 | 6,520 | 55,727 | 58,275 | (2,664) | (5,044) | 112,814 |
Balance at Jun. 30, 2019 | 6,279 | 55,968 | 55,168 | (2,991) | (5,044) | 109,380 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 3,860 | 0 | 0 | 3,860 |
Other comprehensive income (loss) | 0 | 0 | 0 | 327 | 0 | 327 |
Stock dividend | 241 | (241) | 0 | 0 | 0 | 0 |
Cash dividends declared, common stock | 0 | 0 | (753) | 0 | 0 | (753) |
Balance at Sep. 30, 2019 | $ 6,520 | $ 55,727 | $ 58,275 | $ (2,664) | $ (5,044) | $ 112,814 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 12,046 | $ 8,095 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 850 | 1,000 |
Depreciation expense | 1,505 | 1,321 |
Net amortization of investment securities, premiums, and discounts | 1,023 | 1,121 |
Change in fair value of mortgage servicing rights | 543 | 40 |
Investment securities (loss) gain, net | 40 | (256) |
Loss on sales and dispositions of premises and equipment | 53 | 3 |
Gain on sales and dispositions of other real estate | (102) | 0 |
Gain on branch sale, net | (2,183) | 0 |
Provision for other real estate owned | 49 | 26 |
Operating lease payment | (140) | 0 |
Increase in accrued interest receivable | (53) | (357) |
Increase in cash surrender value - life insurance | (65) | (51) |
Decrease in other assets | 878 | 849 |
(Decrease) increase in accrued interest payable | (15) | 436 |
Decrease in other liabilities | (1,466) | (1,038) |
Origination of mortgage loans for sale | (29,443) | (29,197) |
Proceeds from the sale of mortgage loans | 28,275 | 30,049 |
Gain on sale of mortgage loans, net | (499) | (592) |
Other, net | (187) | (199) |
Net cash provided by operating activities | 11,109 | 11,250 |
Cash flows from investing activities: | ||
Purchase of certificates of deposit in other banks | (988) | (8,783) |
Proceeds from maturities of certificates of deposit in other banks | 1,634 | 0 |
Net increase in loans | (3,959) | (48,675) |
Purchase of available-for-sale debt securities | (20,423) | (102,953) |
Proceeds from maturities of available-for-sale debt securities | 29,460 | 25,782 |
Proceeds from calls of available-for-sale debt securities | 9,620 | 1,685 |
Proceeds from sales of available-for-sale debt securities | 21,503 | 77,168 |
Purchases of FHLB stock | (6,522) | (2,367) |
Proceeds from sales of FHLB stock | 5,988 | 3,903 |
Purchases of premises and equipment | (1,903) | (1,374) |
Proceeds from sales of premises and equipment | 6 | 13 |
Proceeds from Bank owned life insurance policy | 222 | 0 |
Payment for branch sale, net | (6,700) | 0 |
Proceeds from sales of other real estate and repossessed assets | 1,277 | 372 |
Net cash provided by (used in) investing activities | 29,215 | (55,229) |
Cash flows from financing activities: | ||
Net increase in demand deposits | 27,285 | 11,996 |
Net (decrease) increase in interest-bearing transaction accounts | (60,433) | 24,748 |
Net (decrease) increase in time deposits | (17,284) | 20,178 |
Net increase in federal funds purchased and securities sold under agreements to repurchase | 2,544 | 5,100 |
Repayment of FHLB advances and other borrowings | (166,647) | (173,619) |
FHLB advances | 178,474 | 130,950 |
Issuance of stock under equity compensation plan | 0 | 135 |
Purchase of treasury stock | 0 | (179) |
Cash dividends paid - common stock | (1,931) | (1,390) |
Net cash (used in) provided by financing activities | (37,992) | 17,919 |
Net increase (decrease) in cash and cash equivalents | 2,332 | (26,060) |
Cash and cash equivalents, beginning of year | 42,083 | 62,878 |
Cash and cash equivalents, end of year | 44,415 | 36,818 |
Cash paid during the year for: | ||
Interest | 11,891 | 9,058 |
Income taxes | 2,280 | 50 |
Noncash investing and financing activities: | ||
Other real estate and repossessed assets acquired in settlement of loans | 411 | 589 |
Net deposits and fixed assets transferred to other assets related to the Branson branch sale | (8,885) | 0 |
Right of use assets obtained in exchange for new operating lease liabilities | 2,424 | 0 |
Stock dividends | $ 5,795 | $ 5,014 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Hawthorn Bancshares, Inc. (the Company) through its subsidiary, Hawthorn Bank (the Bank), provides a broad range of banking services to individual and corporate customers located within the Missouri communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area. The Company is subject to competition from other financial and nonfinancial institutions providing financial products. Additionally, the Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. The accompanying unaudited consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10‑Q, and Rule 10‑01 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. The preparation of the consolidated financial statements includes all adjustments that, in the opinion of management, are necessary in order to make those statements not misleading. Management is required to make estimates and assumptions, including the determination of the allowance for loan losses, real estate acquired in connection with foreclosure or in satisfaction of loans, and fair values of investment securities available-for-sale that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s management has evaluated and did not identify any subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements other than mentioned below. Stock Dividend On July 1, 2019, the Company paid a special stock dividend of four percent to shareholders of record at the close of business on June 15, 2019. For all periods presented, share information, including basic and diluted earnings per share, has been adjusted retroactively to reflect this change. Summary of Recent Transactions and Events On February 8, 2019, Hawthorn Bank, a wholly-owned subsidiary of the Company, completed the sale of its branch located in Branson, Missouri with total deposits of approximately $10.6 million to Branson Bank in Branson, Missouri. The transaction excludes loans assigned to the branch. The sale resulted in a pre-tax gain of approximately $2.2 million, or $1.7 million after tax . The following represents significant new accounting principles adopted in 2019: Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) which requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The ASU primarily affects lessee accounting, which requires the lessee to recognize a right-of-use asset (ROU) and a liability to make lease payments for those leases classified as operating leases. For leases with a term of 12 months or less, an election by class of underlying asset not to recognize lease assets and lease liabilities is permitted. The ASU also provides additional guidance as to the definition of a lease, identification of lease components, and sale and leaseback transactions. The Company's operating leases primarily relate to office space and bank branches. In January 2018, the FASB issued ASU 2018-01, which allows entities the option to apply the provisions of the new lease guidance at the effective date without adjusting the comparative periods presented. In July 2018, the FASB issued ASU 2018-10, which provides narrow-scope improvements to the lease standard and ASU 2018-11, which allows entities to choose an additional transition method, under which an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Under this transitional method, the entity shall recognize and measure the leases that exist at the adoption date and the prior comparative periods are not adjusted. The Company adopted this ASU as of January 1, 2019 using the transitional method. In addition, the Company utilized the practical expedients that allowed it to retain the classifications of existing leases, not re-assess if existing leases have initial direct costs, and hindsight when determining the lease term and assessment of impairment. The adoption of ASU 2016-02 and related transition guidance resulted in the recording of right-of-use assets and lease liabilities on the consolidated balance sheets of $2.3 million and $2.3 million, respectively; however, it did not have a material impact on the Company's other consolidated financial statements. See Note 7 - Leases for additional information. Derivatives and Hedging The FASB issued guidance within ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) in August 2017. The amendments in ASU 2017-12 to Topic 815, Derivatives and Hedging, are intended to more closely align hedge accounting with companies' risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The guidance also amends the presentation and disclosure requirements and changes how companies assess effectiveness. Under the new guidance, public companies will have until the end of the first quarter in which a hedge is designated to perform an initial assessment of a hedge's effectiveness. After initial qualification, the new guidance permits a qualitative effectiveness assessment for certain hedges instead of a quantitative test if the company can reasonably support an expectation of high effectiveness throughout the term of the hedge. Additional disclosures include cumulative basis adjustments for fair value hedges and the effect of hedging on individual income statement line items. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The ASU did not have a significant effect on the Company's Consolidated Financial Statements. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Allowances for Loan Losses | |
Loans and Allowance for Loan Losses | (2) Loans and Allowance for Loan Losses Loans A summary of loans, by major class within the Company’s loan portfolio, at September 30, 2019 and December 31, 2018 is as follows: September 30, December 31, (in thousands) 2019 2018 Commercial, financial, and agricultural $ 193,267 $ 207,720 Real estate construction - residential 23,782 28,610 Real estate construction - commercial 124,389 106,784 Real estate mortgage - residential 248,435 241,517 Real estate mortgage - commercial 530,010 529,536 Installment and other consumer 31,635 32,460 Total loans $ 1,151,518 $ 1,146,627 The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the Missouri communities surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, and the greater Kansas City metropolitan area. As such, the Bank is susceptible to changes in the economic environment in these communities. The Bank does not have a concentration of credit in any one economic sector. Installment and other consumer loans consist primarily of the financing of automotive vehicles. At September 30, 2019, loans of $501.0 million were pledged to the Federal Home Loan Bank as collateral for borrowings and letters of credit. Allowance for Loan Losses The following table illustrates the changes in the allowance for loan losses by portfolio segment: Three Months Ended September 30, 2019 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,783 $ 69 $ 704 $ 1,772 $ 6,109 $ 307 $ 139 $ 11,883 Additions: Provision for loan losses 155 3 97 252 (15) 62 (104) 450 Deductions: Loans charged off 61 — — 86 6 60 — 213 Less recoveries on loans (12) (12) — (8) (7) (19) — (58) Net loan charge-offs (recoveries) 49 (12) — 78 (1) 41 — 155 Balance at end of period $ 2,889 $ 84 $ 801 $ 1,946 $ 6,095 $ 328 $ 35 $ 12,178 Nine Months Ended September 30, 2019 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,237 $ 140 $ 757 $ 2,071 $ 4,914 $ 334 $ 199 $ 11,652 Additions: Provision for loan losses (232) (81) 44 30 1,193 60 (164) 850 Deductions: Loans charged off 255 — — 266 21 151 — 693 Less recoveries on loans (139) (25) — (111) (9) (85) — (369) Net loan charge-offs (recoveries) 116 (25) — 155 12 66 — 324 Balance at end of period $ 2,889 $ 84 $ 801 $ 1,946 $ 6,095 $ 328 $ 35 $ 12,178 Three Months Ended September 30, 2018 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,943 $ 201 $ 905 $ 2,109 $ 3,630 $ 413 $ 11 $ 11,212 Additions: Provision for loan losses (420) 26 (159) 255 444 39 65 250 Deductions: Loans charged off 75 — — 32 5 74 — 186 Less recoveries on loans (38) (13) — (9) (2) (20) — (82) Net loan charge-offs (recoveries) 37 (13) — 23 3 54 — 104 Balance at end of period $ 3,486 $ 240 $ 746 $ 2,341 $ 4,071 $ 398 $ 76 $ 11,358 Nine Months Ended September 30, 2018 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,325 $ 170 $ 807 $ 1,689 $ 4,437 345 $ 79 $ 10,852 Additions: Provision for loan losses 478 80 (31) 672 (366) 170 (3) 1,000 Deductions: Loans charged off 378 48 30 64 34 181 — 735 Less recoveries on loans (61) (38) — (44) (34) (64) — (241) Net loan charge-offs (recoveries) 317 10 30 20 — 117 — 494 Balance at end of period $ 3,486 $ 240 $ 746 $ 2,341 $ 4,071 $ 398 $ 76 $ 11,358 Loans, or portions of loans, are charged off to the extent deemed uncollectible or a loss is confirmed. Loan charge-offs reduce the allowance for loan losses, and recoveries of loans previously charged off are added back to the allowance. If management determines that it is probable that all amounts due on a loan will not be collected under the original terms of the loan agreement, the loan is considered to be impaired. These loans are evaluated individually for impairment, and in conjunction with current economic conditions and loss experience, specific reserves are estimated as further discussed below. Loans not individually evaluated are aggregated by risk characteristics and reserves are recorded using a consistent methodology that considers historical loan loss experience by loan type, delinquencies, current economic conditions, loan risk ratings and industry concentration. Beginning with the first quarter 2019, management adjusted the look-back period to begin with loss history in the first quarter 2012 and continue to include this starting point going forward. Management determined that with the current economic recovery continuing to set records for its length, the look-back period needed to be expanded to account for this extended economic cycle. This ever increasing look-back period will then be adjusted once a loss producing downturn is recognized by allowing the look-back period to shift forward by eliminating the earliest loss period and replenishing it with losses from the most recent period. Prior to 2019, the Company utilized a five-year look-back period, which was considered a representative historical loss period. The look-back period is consistently evaluated for relevance given the current facts and circumstances . The following table illustrates the allowance for loan losses and recorded investment by portfolio segment: Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total September 30, 2019 Allowance for loan losses: Individually evaluated for impairment $ 361 $ — $ — $ 296 $ 34 $ 17 $ — $ 708 Collectively evaluated for impairment 2,528 84 801 1,650 6,061 311 35 11,470 Total $ 2,889 $ 84 $ 801 $ 1,946 $ 6,095 $ 328 $ 35 $ 12,178 Loans outstanding: Individually evaluated for impairment $ 1,578 $ — $ 145 $ 3,902 $ 1,469 $ 161 $ — $ 7,255 Collectively evaluated for impairment 191,689 23,782 124,244 244,533 528,541 31,474 — 1,144,263 Total $ 193,267 $ 23,782 $ 124,389 $ 248,435 $ 530,010 $ 31,635 $ — $ 1,151,518 December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 551 $ — $ — $ 579 $ 37 $ 27 $ — $ 1,194 Collectively evaluated for impairment 2,686 140 757 1,492 4,877 307 199 10,458 Total $ 3,237 $ 140 $ 757 $ 2,071 $ 4,914 $ 334 $ 199 $ 11,652 Loans outstanding: Individually evaluated for impairment $ 2,428 $ — $ 153 $ 4,793 $ 850 $ 254 $ — $ 8,478 Collectively evaluated for impairment 205,292 28,610 106,631 236,724 528,686 32,206 — 1,138,149 Total $ 207,720 $ 28,610 $ 106,784 $ 241,517 $ 529,536 $ 32,460 $ — $ 1,146,627 Impaired Loans Loans evaluated under ASC 310‑10‑35 include loans which are individually evaluated for impairment. All other loans are collectively evaluated for impairment under ASC 450‑20. Impaired loans individually evaluated for impairment totaled $7.3 million and $8.5 million at September 30, 2019 and December 31, 2018, respectively, and are comprised of loans on non-accrual status and loans which have been classified as troubled debt restructurings (TDRs). The net carrying value of impaired loans is based on the fair values of collateral obtained through independent appraisals or internal evaluations, or by discounting the total expected future cash flows. At September 30, 2019, $2.9 million of impaired loans were evaluated based on the fair value less estimated selling costs of the loans' collateral compared to $3.8 million at December 31, 2018. Once the impairment amount is calculated, a specific reserve allocation is recorded. At September 30, 2019, $708,000 of the Company’s allowance for loan losses was allocated to impaired loans totaling $7.3 million compared to $1.2 million of the Company’s allowance for loan losses allocated to impaired loans totaling approximately $8.5 million at December 31, 2018. Management determined that $1.6 million, or 23%, of total impaired loans required no reserve allocation at September 30, 2019 compared to $2.1 million, or 25%, at December 31, 2018, primarily due to adequate collateral values , acceptable payment history and adequate cash flow ability. The categories of impaired loans at September 30, 2019 and December 31, 2018 are as follows: September 30, December 31, (in thousands) 2019 2018 Non-accrual and non-performing TDRs $ 4,623 $ 5,414 Performing TDRs 2,632 3,064 Total impaired loans $ 7,255 $ 8,478 The following tables provide additional information about impaired loans at September 30, 2019 and December 31, 2018, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided. Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves September 30, 2019 With no related allowance recorded: Commercial, financial and agricultural $ 496 $ 837 $ — Real estate - construction commercial 145 177 — Real estate - residential 606 684 — Real estate - commercial 377 394 Installment and other consumer 13 13 — Total $ 1,637 $ 2,105 $ — With an allowance recorded: Commercial, financial and agricultural $ 1,082 $ 1,163 $ 361 Real estate - residential 3,296 3,635 296 Real estate - commercial 1,092 1,219 34 Installment and other consumer 148 176 17 Total $ 5,618 $ 6,193 $ 708 Total impaired loans $ 7,255 $ 8,298 $ 708 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2018 With no related allowance recorded: Commercial, financial and agricultural $ 1,264 $ 1,550 $ — Real estate - construction commercial 153 180 — Real estate - residential 561 602 — Real estate - commercial 115 119 — Total $ 2,093 $ 2,451 $ — With an allowance recorded: Commercial, financial and agricultural $ 1,164 $ 1,236 $ 551 Real estate - residential 4,232 4,458 579 Real estate - commercial 735 1,093 37 Installment and other consumer 254 280 27 Total $ 6,385 $ 7,067 $ 1,194 Total impaired loans $ 8,478 $ 9,518 $ 1,194 The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest Interest Interest Interest Average Recognized Average Recognized Average Recognized Average Recognized Recorded For the Recorded For the Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 851 $ — $ 1,375 $ — $ 1,036 $ — $ 1,334 $ 1 Real estate - construction commercial 146 — 161 — 149 — 82 — Real estate - residential 1,301 — 1,037 3 651 — 929 9 Real estate - commercial 380 — 120 3 393 — 30 22 Installment and other consumer 4 — 91 — 3 — 34 — Total $ 2,682 $ — $ 2,784 $ 6 $ 2,232 $ — $ 2,409 $ 32 With an allowance recorded: Commercial, financial and agricultural $ 1,086 $ 9 $ 1,423 $ 8 $ 1,095 $ 30 $ 1,507 $ 23 Real estate - construction residential — — — — — — 15 — Real estate - construction commercial — — — — — — 24 — Real estate - residential 2,818 21 4,076 25 3,881 68 4,211 71 Real estate - commercial 1,112 9 1,443 13 788 25 1,649 24 Installment and other consumer 188 1 197 — 221 2 186 1 Total $ 5,204 $ 40 $ 7,139 $ 46 $ 5,985 $ 125 $ 7,592 $ 119 Total impaired loans $ 7,886 $ 40 $ 9,923 $ 52 $ 8,217 $ 125 $ 10,001 $ 151 The recorded investment varies from the unpaid principal balance primarily due to partial charge-offs taken resulting from current appraisals received. The amount recognized as interest income on impaired loans continuing to accrue interest, primarily related to troubled debt restructurings, was $40,000 and $125,000 for the three and nine months ended September 30, 2019, respectively, compared to $52,000 and $151,000 for the three and nine months ended September 30, 2018, respectively. The average recorded investment in impaired loans is calculated on a monthly basis during the periods reported. Delinquent and Non-Accrual Loans The delinquency status of loans is determined based on the contractual terms of the notes. Borrowers are generally classified as delinquent once payments become 30 days or more past due. The Company’s policy is to discontinue the accrual of interest income on any loan when, in the opinion of management, the ultimate collectability of interest or principal is no longer probable. In general, loans are placed on non-accrual when they become 90 days or more past due. However, management considers many factors before placing a loan on non-accrual, including the delinquency status of the loan, the overall financial condition of the borrower, the progress of management’s collection efforts and the value of the underlying collateral. Subsequent interest payments received on non-accrual loans are applied to principal if any doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial condition of the borrower indicates that the timely collectability of interest and principal is probable and the borrower demonstrates the ability to pay under the terms of the note through a sustained period of repayment performance, which is generally six months. The following table provides aging information for the Company’s past due and non-accrual loans at September 30, 2019 and December 31, 2018. Current or 90 Days Less Than Past Due 30 Days 30 - 89 Days And Still (in thousands) Past Due Past Due Accruing Non-Accrual Total September 30, 2019 Commercial, Financial, and Agricultural $ 192,142 $ 98 $ — $ 1,027 $ 193,267 Real Estate Construction - Residential 23,782 — — — 23,782 Real Estate Construction - Commercial 124,177 67 — 145 124,389 Real Estate Mortgage - Residential 245,379 705 193 2,158 248,435 Real Estate Mortgage - Commercial 528,539 360 — 1,111 530,010 Installment and Other Consumer 31,402 106 4 123 31,635 Total $ 1,145,421 $ 1,336 $ 197 $ 4,564 $ 1,151,518 December 31, 2018 Commercial, Financial, and Agricultural $ 205,597 $ 266 $ — $ 1,857 $ 207,720 Real Estate Construction - Residential 28,404 206 — — 28,610 Real Estate Construction - Commercial 106,531 100 — 153 106,784 Real Estate Mortgage - Residential 235,734 2,907 156 2,720 241,517 Real Estate Mortgage - Commercial 527,968 1,094 — 474 529,536 Installment and Other Consumer 32,002 242 6 210 32,460 Total $ 1,136,236 $ 4,815 $ 162 $ 5,414 $ 1,146,627 Credit Quality The Company categorizes loans into risk categories based upon an internal rating system reflecting management’s risk assessment. Loans are placed on watch status when one or more weaknesses are identified that may result in the borrower being unable to meet repayment terms or the Company’s credit position could deteriorate at some future date. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified may have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. Such loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected. A loan is classified as a troubled debt restructuring ( TDR) when a borrower is experiencing financial difficulties that lead to the restructuring of a loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. Loans classified as TDRs that are accruing interest are classified as performing TDRs. Loans classified as TDRs, that are not accruing interest are classified as nonperforming TDRs and are included with all other nonaccrual loans for presentation purposes. It is the Company’s policy to discontinue the accrual of interest income on loans when management believes that the collection of interest or principal is doubtful. The following table presents the risk categories by class at September 30, 2019 and December 31, 2018. Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and other (in thousands) Agricultural Residential Commercial Residential Commercial Consumer Total At September 30, 2019 Watch $ 13,083 $ 679 $ 7,172 $ 14,453 $ 36,393 $ — $ 71,780 Substandard 1,257 — — 1,336 685 3 3,281 Performing TDRs 551 — — 1,685 358 38 2,632 Non-accrual and non-performing TDRs 1,027 — 145 2,217 1,111 123 4,623 Total $ 15,918 $ 679 $ 7,317 $ 19,691 $ 38,547 $ 164 $ 82,316 At December 31, 2018 Watch $ 8,871 $ 588 $ 4,063 $ 12,790 $ 36,408 $ 8 $ 62,728 Substandard 53 — — 1,411 702 3 2,169 Performing TDRs 570 — — 2,073 377 44 3,064 Non-accrual and non-performing TDRs 1,857 — 153 2,720 474 210 5,414 Total $ 11,351 $ 588 $ 4,216 $ 18,994 $ 37,961 $ 265 $ 73,375 Troubled Debt Restructurings At September 30, 2019, loans classified as TDRs totaled $4.0 million, of which $1.4 million were classified as non-performing TDRs and $2.6 million were classified as performing TDRs. At December 31, 2018, loans classified as TDRs totaled $5.0 million, of which $2.0 million were classified as non-performing TDRs and $3.0 million were classified as performing TDRs. Both performing and nonperforming TDRs are considered impaired loans. When an individual loan is determined to be a TDR, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. Accordingly, specific reserves of $471,000 and $543,000 related to TDRs were allocated to the allowance for loan losses at September 30, 2019 and December 31, 2018, respectively. The following table summarizes loans that were modified as TDRs during the periods indicated. Three Months Ended September 30, 2019 2018 Recorded Investment (1) Recorded Investment (1) Number of Pre- Post- Number of Pre- Post- (in thousands) Contracts Modification Modification Contracts Modification Modification Troubled Debt Restructurings Commercial, financial and agricultural — $ — $ — 2 $ 353 $ 353 Installment and other consumer — — — 1 112 53 Total — $ — $ — 3 $ 465 $ 406 Nine Months Ended September 30, 2019 2018 Recorded Investment (1) Recorded Investment (1) Number of Pre- Post- Number of Pre- Post- (in thousands) Contracts Modification Modification Contracts Modification Modification Troubled Debt Restructurings Commercial, financial and agricultural 2 $ 80 $ 76 2 $ 353 $ 353 Real estate mortgage - residential — — — 1 75 74 Installment and other consumer — — — 5 160 3 Total 2 $ 80 $ 76 8 $ 588 $ 430 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. The Company’s portfolio of loans classified as TDRs include concessions for the borrower given financial condition such as interest rates below the current market rate, deferring principal payments, and extending maturity dates. There were no loans and two loans meeting the TDR criteria that were modified during the three and nine months ended September 30, 2019, compared to three and eight loans during the three and nine months ended September 30, 2018. The Company considers a TDR to be in default when it is 90 days or more past due under the modified terms, a charge-off occurs, or it is the process of foreclosure. There was one loan and no loans modified as a TDR that defaulted during any of the three and nine months ended September 30, 2019 and 2018, respectively, and within twelve months of their modification date. See Lending and Credit Management section for further information. |
Other Real Estate and Repossess
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans | 9 Months Ended |
Sep. 30, 2019 | |
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans | |
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans | (3) Other Real Estate Acquired in Settlement of Loans September 30, December 31, (in thousands) 2019 2018 Commercial $ 1,155 $ 1,168 Real estate construction - residential — 179 Real estate construction - commercial 11,553 12,101 Real estate mortgage - residential 286 336 Real estate mortgage - commercial 2,871 2,909 Total $ 15,865 $ 16,693 Less valuation allowance for other real estate owned (2,987) (3,002) Total other real estate owned $ 12,878 $ 13,691 Changes in the net carrying amount of other real estate owned were as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 16,066 $ 16,453 $ 16,693 $ 16,598 Additions 68 207 411 589 Proceeds from sales (352) (68) (1,277) (372) Charge-offs against the valuation allowance for other real estate owned, net — (20) (64) (245) Net gain (loss) on sales 83 (2) 102 — Total other real estate owned $ 15,865 $ 16,570 $ 15,865 $ 16,570 Less valuation allowance for other real estate owned (2,987) (3,002) (2,987) (3,002) Balance at end of period $ 12,878 $ 13,568 $ 12,878 $ 13,568 At September 30, 2019, $252,000 of consumer mortgage loans secured by residential real estate properties were in the process of foreclosure compared to $200,000 of consumer mortgage loans at December 31, 2018. Activity in the valuation allowance for other real estate owned was as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 2,956 $ 3,022 $ 3,002 $ 3,221 Provision for other real estate owned 31 — 49 26 Charge-offs — (20) (64) (245) Balance, end of period $ 2,987 $ 3,002 $ 2,987 $ 3,002 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities | |
Investment Securities | (4) Investment Securities Available for sale securities The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2019 and December 31, 2018 were as follows: Total Amortized Gross Unrealized Fair ( in thousands) Cost Gains Losses Value September 30, 2019 U.S. Treasury $ 985 $ 10 $ — $ 995 U.S. government and federal agency obligations 8,495 — (30) 8,465 Government sponsored enterprises 22,786 50 (38) 22,798 Obligations of states and political subdivisions 29,341 144 (61) 29,424 Mortgage-backed securities 115,261 542 (569) 115,234 Other debt securities (a) 3,000 51 — 3,051 Bank issued trust preferred securities (a) 1,486 — (183) 1,303 Total available-for-sale securities $ 181,354 $ 797 $ (881) $ 181,270 December 31, 2018 U.S. Treasury $ 1,984 $ — $ (32) $ 1,952 U.S. government and federal agency obligations 10,235 — (269) 9,966 Government sponsored enterprises 43,784 23 (472) 43,335 Obligations of states and political subdivisions 40,859 28 (501) 40,386 Mortgage-backed securities 121,230 72 (3,110) 118,192 Other debt securities (a) 3,000 — — 3,000 Bank issued trust preferred securities (a) 1,486 — (112) 1,374 Total available-for-sale securities $ 222,578 $ 123 $ (4,496) $ 218,205 (a) Certain hybrid instruments possessing characteristics typically associated with debt obligations. The Company’s investment securities are classified as available for sale. Agency bonds and notes, Small Business Administration guaranteed loan certificates (SBA), residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises. Debt securities with carrying values aggregating approximately $117.9 million and $153.0 million at September 30, 2019 and December 31, 2018, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law. The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2019, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties. Amortized Fair ( in thousands) Cost Value Due in one year or less $ 8,962 $ 8,951 Due after one year through five years 36,227 36,256 Due after five years through ten years 10,910 10,926 Due after ten years 9,994 9,903 Total 66,093 66,036 Mortgage-backed securities 115,261 115,234 Total available-for-sale securities $ 181,354 $ 181,270 Other securities Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in Federal Home Loan Bank (FHLB) stock, and Midwest Independent Bank (MIB) bankers bank stock, that do not have readily determinable fair values, are required for membership in those organizations. (in thousands) September 30, 2019 December 31, 2018 Other securities: FHLB stock $ 6,046 $ 5,512 MIB stock 151 151 Equity securities with readily determinable fair values 13 12 Total other investment securities $ 6,210 $ 5,675 Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2019 and December 31, 2018 were as follows: Less than 12 months 12 months or more Total Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Losses Value Losses Value Losses At September 30, 2019 U.S. Treasury $ — $ — $ — $ — $ — $ — U.S. government and federal agency obligations 6,310 (25) 1,913 (5) 8,223 (30) Government sponsored enterprises 4,539 (6) 8,466 (32) 13,005 (38) Obligations of states and political subdivisions 9,098 (45) 2,891 (16) 11,989 (61) Mortgage-backed securities 8,624 (24) 46,968 (545) 55,592 (569) Other debt securities — — — — — — Bank issued trust preferred securities — — 1,303 (183) 1,303 (183) Total $ 28,571 $ (100) $ 61,541 $ (781) $ 90,112 $ (881) (in thousands) At December 31, 2018 U.S. Treasury $ — $ — $ 1,952 $ (32) $ 1,952 $ (32) U.S. government and federal agency obligations — — 9,966 (269) 9,966 (269) Government sponsored enterprises 1,997 (3) 33,346 (469) 35,343 (472) Obligations of states and political subdivisions 5,851 (16) 28,832 (485) 34,683 (501) Mortgage-backed securities 10,085 (61) 99,321 (3,049) 109,406 (3,110) Bank issued trust preferred securities — — 1,374 (112) 1,374 (112) Total $ 17,933 $ (80) $ 174,791 $ (4,416) $ 192,724 $ (4,496) The total available for sale portfolio consisted of approximately 314 securities at September 30, 2019. The portfolio included 144 securities having an aggregate fair value of $90.1 million that were in a loss position at September 30, 2019. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $61.5 million at fair value at September 30, 2019. The $881,000 aggregate unrealized loss included in accumulated other comprehensive loss at September 30, 2019 was caused by interest rate fluctuations. The total available for sale portfolio consisted of approximately 366 securities at December 31, 2018. The portfolio included 317 securities having an aggregate fair value of $192.7 million that were in a loss position at December 31, 2018. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $174.8 million at fair value at December 31, 2018. The $4.5 million aggregate unrealized loss included in accumulated other comprehensive loss at December 31, 2018 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at September 30, 2019 and December 31, 2018, respectively. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities. The table presents the components of investment securities gains and losses, which have been recognized in earnings: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Investment securities (losses) gains, net Available for sale securities: Gains realized on sales $ 6 $ 47 $ 6 $ 253 Losses realized on sales (46) — (46) — Other-than-temporary impairment recognized — — — — Other investment securities: Fair value adjustments, net — 3 — 3 Investment securities (losses) gains, net $ (40) $ 50 $ (40) $ 256 During the three and nine months ended September 30, 2019, the Company received $21.5 million from the proceeds from the sale of available for sale debt securities. During the three and nine months ended September 30, 2018, the Company received $25.4 million and $77.2 million, respectively, from proceeds from a series of short-term sales of U.S. Treasury securities purchased with repurchase agreements, and recognized gains of $47,000 and $253,000, respectively , in order to generate capital gains to offset capital losses that were to expire during 2018 and 2019. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Intangible Assets | |
Intangible Assets | (5) Intangible Assets Mortgage Servicing Rights At September 30, 2019, the Company was servicing approximately $270.8 million of loans sold to the secondary market compared to $279.9 million at December 31, 2018, and $282.9 million at September 30, 2018. Mortgage loan servicing fees, reported in real estate servicing fees, net, earned on loans sold were $205,000 and $581,000 for the three and nine months ended September 30, 2019, respectively, compared to $201,000 and $614,000 for the three and nine months ended September 30, 2018, respectively. The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 2,657 $ 2,813 $ 2,931 $ 2,713 Originated mortgage servicing rights 88 66 187 198 Changes in fair value: Due to changes in model inputs and assumptions (1) (77) 70 (318) 203 Other changes in fair value (2) (93) (78) (225) (243) Total changes in fair value (170) (8) (543) (40) Balance at end of period $ 2,575 $ 2,871 $ 2,575 $ 2,871 (1) The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time. The following key data and assumptions were used in estimating the fair value of the Company’s MSRs as of September 30, 2019 and 2018, respectively: Nine Months Ended September 30, 2019 2018 Weighted average constant prepayment rate 13.27 % 9.36 % Weighted average note rate 3.95 % 3.92 % Weighted average discount rate 8.75 % 10.36 % Weighted average expected life (in years) 4.8 6.1 |
Federal funds purchased and sec
Federal funds purchased and securities sold under agreements to repurchase | 9 Months Ended |
Sep. 30, 2019 | |
Federal funds purchased and securities sold under agreements to repurchase | |
Federal funds purchased and securities sold under agreements to repurchase | (6) Federal funds purchased and securities sold under agreements to repurchase September 30, December 31, (in thousands) 2019 2018 Federal funds purchased $ — $ Repurchase agreements Total $ $ The Company offers a sweep account program whereby amounts in excess of an established limit are “swept” from the customer’s demand deposit account on a daily basis into retail repurchase agreements pursuant to individual repurchase agreements between the Company and its customers . Repurchase agreements are agreements to sell securities subject to an obligation to repurchase the same or similar securities. They are accounted for as collateralized financing transactions, not as sales and purchases of the securities portfolio. The securities collateral pledged for the repurchase agreements with customers is maintained by a designated third party custodian . The collateral amounts pledged to repurchase agreements by remaining maturity in the table below are limited to the outstanding balances of the related asset or liability; thus amounts of excess collateral are not shown. Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Less Greater and than than (in thousands) continuous 90 days 90 days Total At September 30, 2019 U.S. Treasury $ 756 $ — $ — $ 756 Government sponsored enterprises 9,364 — — 9,364 Asset-backed securities 17,071 — — 17,071 Total $ 27,191 $ — $ — $ 27,191 At December 31, 2018 U.S. Treasury $ 1,464 $ — $ — $ 1,464 Government sponsored enterprises 12,976 — — 12,976 Asset-backed securities 2,207 — — 2,207 Total $ 16,647 $ — $ — $ 16,647 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Leases | (7) Leases The Company's leases primarily consist of office space and bank branches with remaining lease terms of generally 1 to 10 years. As of September 30, 2019, operating ROU assets and liabilities were $2.3 million and $2.3 million, respectively. As of September 30, 2019, the weighted-average remaining lease term on these operating leases is approximately 8.7 years and the weighted-average discount rate used to measure the lease liabilities is approximately 4.0%. Operating leases in which the Company is the lessee are recorded as operating lease right-of-use assets and operating lease liabilities. Currently, the Company does not have any finance leases. The ROU assets are included in premises and equipment, net on the consolidated balance sheets. Operating lease right-of-use assets represent the Company's right to use an underlying asset during the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company's incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the right-of-use asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income. The operating lease cost for the three and nine months ended September 30, 2019 was $86,000 and $202,000, respectively. At adoption of ASU 2016-02 on January 1, 2019, lease and non-lease components of new lease agreements are accounted for separately. Lease components include fixed payments including rent, real estate taxes and insurance costs and non-lease components include common-area maintenance costs. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Operating lease expense for these leases was $20,000 and $71,000 for the three and nine months ended September 30, 2019, respectively, compared to $41,000 and $127,000 for the three and nine months ended September 30, 2018, respectively. The table below summarizes the maturity of remaining operating lease liabilities: Operating Lease payments due in: Lease (in thousands) 2019 (excluding nine months ended September 30, 2019) $ 83 2020 334 2021 317 2022 310 2023 312 Thereafter 1,345 Total lease payments 2,701 Less imputed interest (416) Total lease liabilities, as reported $ 2,285 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes | |
Income taxes | (8) Income Taxes Income taxes as a percentage of earnings before income taxes as reported in the consolidated financial statements were 19.8% and 19.3% for the three and nine months ended September 30, 2019, respectively, compared to 12.6% and 11.8% for the three and nine months ended September 30, 2018, respectively. The change in the effective tax rate for both the three and nine months ended September 30, 2019 over the three and nine months ended September 30, 2018, was primarily due to the final impacts of the Tax Cuts and Jobs Act which decreased the 2018 tax rate. In addition, the 2019 tax rate increased due to additional taxable income, which included a $2.2 million pre-tax gain from the sale of the Branson branch. Without the impact of these items, the year-to-date 2018 and 2019 tax rates would have been approximately 17.0% and 18.8%, respectively. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the appropriate character during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning initiatives in making this assessment. In management's opinion, the Company will more likely than not realize the benefits of its deferred tax assets and, therefore, has not established a valuation allowance against its deferred tax assets as of September 30, 2019. Management arrived at this conclusion based upon the level of historical taxable income and projections for future taxable income of the appropriate character over the periods in which the deferred tax assets are deductible. The Company follows ASC Topic 740, Income Taxes, which addresses the accounting for uncertain tax positions. For each of the three and nine months ended September 30, 2019 and 2018, respectively, the Company did not have any uncertain tax provisions, and did not record any related tax liabilities. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity | |
Stockholders' Equity | (9) Stockholders’ Equity Accumulated Other Comprehensive Loss The following details the change in the components of the Company’s accumulated other comprehensive loss for the nine months ended September 30, 2019 and 2018: Nine Months Ended September 30, 2019 Accumulated Unrecognized Net Other Unrealized Pension and Comprehensive Gain (Loss) Postretirement (Loss) (in thousands) on Securities (1) Costs (2) Income Balance at beginning of period $ (3,455) $ (2,644) $ (6,099) Other comprehensive income, before reclassifications 4,250 58 4,308 Amounts reclassified from accumulated other comprehensive (loss) income 40 — 40 Current period other comprehensive income, before tax 4,290 58 4,348 Income tax expense (901) (12) (913) Current period other comprehensive income, net of tax 3,389 46 3,435 Balance at end of period $ (66) $ (2,598) $ (2,664) Nine Months Ended September 30, 2018 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) Loss Balance at beginning of period $ (2,500) $ (3,162) $ (5,662) Other comprehensive (loss) income, before reclassifications (3,915) 164 (3,751) Amounts reclassified from accumulated other comprehensive (loss) income — — — Current period other comprehensive (loss) income, before tax (3,915) 164 (3,751) Income tax benefit (expense) 822 (35) 787 Current period other comprehensive (loss) income, net of tax (3,093) 129 (2,964) Balance at end of period $ (5,593) $ (3,033) $ (8,626) (1) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in investment securities (loss) gain, net in the consolidated statements of income. (2) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in the computation of net periodic pension cost. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | (10) Employee Benefit Plans Employee Benefits Employee benefits charged to operating expenses are summarized in the table below for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Payroll taxes $ 256 $ 261 $ 871 $ 913 Medical plans 432 490 1,359 1,650 401(k) match and profit sharing 349 261 929 684 Periodic pension cost 358 470 1,073 1,280 Other 15 12 40 37 Total employee benefits $ 1,410 $ 1,494 $ 4,272 $ 4,564 The Company’s profit-sharing plan includes a matching 401(k) portion, in which the Company matches the first 3% of eligible employee contributions. The Company makes annual contributions in an amount up to 6% of income before income taxes and before contributions to the profit-sharing and pension plans for all participants, limited to the maximum amount deductible for federal income tax purposes, for each of the periods shown. In addition, employees were able to make additional tax-deferred contributions. Other Plans On November 7, 2018, the Board of Directors of the Company adopted a supplemental executive retirement plan (SERP) which became effective on January 1, 2018. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment or death. As of September 30, 2019, the accrued liability was $560,000 and the expense for the three and nine months ended September 30, 2019 was $80,000 and $240,000, respectively, and is recognized over the required service period. After the plan was adopted in November 2018, $320,000 was accrued and recognized over the required service period. Pension The Company provides a noncontributory defined benefit pension plan for all full-time employees. Beginning January 1, 2018 and for all retrospective periods presented, the Company adopted the guidance under ASU 2017‑07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . Under the new guidance, only the service cost component of the net periodic benefit cost is reported in the same income statement line item as salaries and benefits, and the remaining components are reported as other non-interest expense. An employer is required to recognize the funded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Under the Company’s funding policy for the defined benefit pension plan, contributions are made to a trust as necessary to provide for current service and for any unfunded accrued actuarial liabilities over a reasonable period. To the extent that these requirements are fully covered by assets in the trust, a contribution might not be made in a particular year. The Company made a pension contribution of $1.6 million on April 17, 2019. Effective July 1, 2017, the Company amended the pension plan to effectuate a “soft freeze” such that no individual hired (or rehired in the case of a former employee) by the Company after September 30, 2017, whether or not such individual is or was a vested member in the plan, will be eligible to be an active member and be entitled to accrue any benefits under the plan. Components of Net Pension Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income The following items are components of net pension cost for the periods indicated: Pension Benefits (in thousands) 2019 2018 Service cost - benefits earned during the year $ 1,431 $ 1,707 Interest costs on projected benefit obligations (a) 1,168 1,037 Expected return on plan assets (a) (1,467) (1,327) Expected administrative expenses (a) 122 93 Amortization of prior service cost (a) 79 79 Amortization of unrecognized net loss (a) — 140 Net periodic pension cost $ 1,333 $ 1,729 Net periodic pension cost for the three months ended September 30, (actual) $ 358 $ 470 Net periodic pension cost for the nine months ended September 30, (actual) $ 1,073 $ 1,280 (a) The components of net periodic pension cost other than the service cost component are included in other non-interest expense. Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining service period of active participants in the Plans. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share | |
Earnings per Share | (11) Earnings per Share Stock Dividend On July 1, 2019, the Company paid a special stock dividend of 4% to common shareholders of record at the close of business on June 15, 2019. For all periods presented, share information, including basic and diluted earnings per share, has been adjusted retroactively to reflect this change. Basic earnings per share is computed by dividing income available to shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential shares that were outstanding during the year. Presented below is a summary of the components used to calculate basic and diluted earnings per common share, which have been restated for all stock dividends: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands, except per share data) 2019 2018 2019 2018 Basic earnings per share: Net income available to shareholders $ 3,860 $ 3,098 $ 12,046 $ 8,095 Average shares outstanding 6,276,236 6,264,200 6,276,236 6,265,290 Basic earnings per share $ 0.62 $ 0.49 $ 1.92 $ 1.29 Diluted earnings per share: Net income available to shareholders $ 3,860 $ 3,098 $ 12,046 $ 8,095 Average shares outstanding 6,276,236 6,264,200 6,276,236 6,265,290 Effect of dilutive stock options — 6,617 — 6,740 Average shares outstanding including dilutive stock options 6,276,236 6,270,817 6,276,236 6,272,030 Diluted earnings per share $ 0.62 0.49 $ 1.92 1.29 Under the treasury stock method, outstanding stock options are dilutive when the average market price of the Company’s common stock, when combined with the effect of any unamortized compensation expense, exceeds the option price during the period, except when the Company has a loss from continuing operations available to shareholders. In addition, proceeds from the assumed exercise of dilutive options along with the related tax benefit are assumed to be used to repurchase common shares at the average market price of such stock during the period. There were no outstanding stock options for any of the three and nine months ended September 30, 2019 and 2018, respectively, that were omitted from the computation of diluted earnings per share as a result of being considered anti-dilutive. On September 18, 2019, the Company's Board of Directors authorized the purchase of up to $5.0 million market value of the Company's common stock. Management was given discretion to determine the number and pricing of the shares to be purchased, as well as, the timing of any such purchases. During the three months ended September 30, 2019, no shares of the Company's common stock were purchased by or on behalf of the Company or affiliated purchasers. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | (12) Fair Value Measurements Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under US GAAP uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows. During the nine months ended September 30, 2019 and the year ended December 31, 2018, respectively, there were no transfers into or out of Levels 1‑3. The fair value hierarchy is as follows: Level 1 – Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 – Inputs are unobservable inputs for the asset or liability and significant to the fair value. These may be internally developed using the Company’s best information and assumptions that a market participant would consider. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Nonfinancial assets measured at fair value on a nonrecurring basis would include foreclosed real estate, long-lived assets, and core deposit intangible assets, which are reviewed when circumstances or other events indicate that impairment may have occurred. Valuation Methods for Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Available-for-Sale Securities The fair value measurements of the Company’s investment securities are determined by a third party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair value measurements are subject to independent verification to another pricing source by management each quarter for reasonableness. Equity securities with readily determinable fair values are recorded at fair value, with changes in fair value reflected in earnings. The Company uses level 1 inputs to value equity securities that are traded in active markets. Equity securities that do not have readily determinable fair values are carried at cost and are periodically assessed for impairment. Equity securities that are not actively traded are classified in level 2. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. The valuation models estimate the present value of estimated future net servicing income. The Company classifies its servicing rights as Level 3. Fair Value Measurements Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2019 Assets: U.S. Treasury $ 995 $ 995 — $ — U.S. government and federal agency obligations 8,465 — 8,465 — Government sponsored enterprises 22,798 — 22,798 — Obligations of states and political subdivisions 29,424 — 29,424 — Mortgage-backed securities 115,234 — 115,234 — Other debt securities 3,051 — 3,051 — Bank-issued trust preferred securities 1,303 — 1,303 — Equity securities 13 13 — — Mortgage servicing rights 2,575 — — 2,575 Total $ 183,858 $ 1,008 $ 180,275 $ 2,575 December 31, 2018 Assets: U.S. Treasury $ 1,952 $ 1,952 — $ — U.S. government and federal agency obligations 9,966 — 9,966 — Government sponsored enterprises 43,335 — 43,335 — Obligations of states and political subdivisions 40,386 — 40,386 — Mortgage-backed securities 118,192 — 118,192 — Other debt securities 3,000 — 3,000 — Bank-issued trust preferred securities 1,374 — 1,374 — Equity securities 12 12 — — Mortgage servicing rights 2,931 — — 2,931 Total $ 221,148 $ 1,964 $ 216,253 $ 2,931 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements Using Fair Value Measurements Using Significant Unobservable Inputs Significant Unobservable Inputs (Level 3) (Level 3) Mortgage Servicing Rights Mortgage Servicing Rights Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 2,657 $ 2,813 $ 2,931 $ 2,713 Total (losses) or gains (realized/unrealized): Included in earnings (170) (8) (543) (40) Included in other comprehensive income — — — — Purchases — — — — Sales — — — — Issues 88 66 187 198 Settlements — — — — Balance at end of period $ 2,575 $ 2,871 $ 2,575 $ 2,871 Valuation methods for Assets and Liabilities measured at fair value on a nonrecurring basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Collateral dependent impaired loans While the overall loan portfolio is not carried at fair value, the Company periodically records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral dependent loans when establishing the allowance for loan losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. In determining the value of real estate collateral, the Company relies on external and internal appraisals of property values depending on the size and complexity of the real estate collateral. The Company maintains staff that is trained to perform in-house evaluations and also review third party appraisal reports for reasonableness. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgments based on the experience and expertise of internal specialists. Values of all loan collateral are regularly reviewed by senior loan committee. Because many of these inputs are not observable, the measurements are classified as Level 3. As of September, 2019, the Company identified $2.9 million in collateral dependent impaired loans that had specific allowances for losses aggregating $398,000. Related to these loans, there were $77,000 and $204,000 in charge-offs recorded during the three and nine months ended September 30, 2019, respectively. As of September 30, 2018, the Company identified $4.2 million in collateral dependent impaired loans that had specific allowances for losses aggregating $891,000. Related to these loans, there were $53,000 and $303,000 in charge-offs recorded during the three and nine months ended September 30, 2018, respectively. Other Real Estate and Foreclosed Assets Other real estate owned (OREO) and foreclosed assets consisted of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Subsequent to foreclosure, these assets initially are carried at fair value of the collateral less estimated selling costs. Fair value, when recorded, is generally based upon appraisals by approved, independent state certified appraisers. Like impaired loans, appraisals on OREO may be discounted based on the Company’s historical knowledge, changes in market conditions from the time of appraisal or other information available. During the holding period, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. Because many of these inputs are not observable, the measurements are classified as Level 3. Fair Value Measurements Using Quoted Prices in Active Three Months Nine Months Markets for Other Significant Ended Ended Identical Observable Unobservable September 30, September 30, Total Assets Inputs Inputs Total Gains Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* (Losses)* September 30, 2019 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 529 $ — $ — $ 529 $ (22) $ (132) Real estate construction - commercial 145 — — 145 — — Real estate mortgage - residential 933 — — 933 (45) (45) Real estate mortgage - commercial 860 — — 860 (6) (15) Installment and other consumer 13 — — 13 (4) (12) Total $ 2,480 $ — $ — $ 2,480 $ (77) $ (204) Other real estate and repossessed assets $ 12,878 $ — $ — $ 12,878 $ 10 $ (166) September 30, 2018 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 1,549 $ — $ — $ 1,549 $ (21) $ (187) Real estate construction - commercial 158 — — 158 — (27) Real estate mortgage - residential 1,156 — — 1,156 (32) (44) Real estate mortgage - commercial 399 — — 399 — (20) Installment and other consumer — — — — — (25) Total $ 3,262 $ — $ — $ 3,262 $ (53) $ (303) Other real estate and repossessed assets $ 13,373 $ — $ — $ 13,373 $ (3) $ (29) * |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | (13) Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate such value: Loans Fair values are estimated for portfolios with similar financial characteristics. Loans are segregated by type, such as commercial, real estate, and consumer. Each loan category is further segmented into fixed and variable interest rate categories. The fair value of loans, or exit price, is estimated by using the future value of discounted cash flows using comparable market rates for similar types of loan products and adjusted for market factors. The discount rates used are estimated using comparable market rates for similar types of loan products adjusted to be commensurate with the credit risk, overhead costs, and optionality of such instruments. Investment Securities A detailed description of the fair value measurement of the debt instruments in the available-for-sale sections of the investment security portfolio is provided in the Fair Value Measurement section above. A schedule of investment securities by category and maturity is provided in the notes on Investment Securities . Other investment securities Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in Federal Home Loan Bank (FHLB) stock, and Midwest Independent Bank (MIB) bankers bank stock, that do not have readily determinable fair values, are required for membership in those organizations. Equity securities that are not actively traded are classified in level 2. Equity securities with readily determinable fair values are recorded at fair value, with changes in fair value reflected in earnings. Equity securities that do not have readily determinable fair values are carried at cost and are periodically assessed for impairment. The Company uses level 1 inputs to value equity securities that are traded in active markets. Federal Funds Sold, Cash, and Due from Banks The carrying amounts of short-term federal funds sold, interest earning deposits with banks, and cash and due from banks approximate fair value. Federal funds sold classified as short-term generally mature in 90 days or less. Certificates of Deposit in other banks Certificates of deposit are other investments made by the Company with other financial institutions that are carried at cost which is equal to fair value. Cash Surrender Value - Life Insurance The fair value of Bank owned life insurance (BOLI) approximates the carrying amount. Upon liquidation of these investments, the Company would receive the cash surrender value which equals the carrying amount. Accrued Interest Receivable and Payable For accrued interest receivable and payable, the carrying amount is a reasonable estimate of fair value because of the short maturity for these financial instruments. Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand, NOW accounts, savings, and money market, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Federal funds purchased and Securities Sold under Agreements to Repurchase For Federal funds purchased and securities sold under agreements to repurchase, the carrying amount is a reasonable estimate of fair value, as such instruments reprice in a short time period. Subordinated Notes and Other Borrowings The fair value of subordinated notes and other borrowings is based on the discounted value of contractual cash-flows. The discount rate is estimated using the rates currently offered for other borrowed money of similar remaining maturities. A summary of the carrying amounts and fair values of the Company’s financial instruments at September 30, 2019 and December 31, 2018 is as follows: September 30, 2019 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant September 30, 2019 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 22,856 $ 22,856 $ 22,856 $ — $ — Federal funds sold and overnight interest-bearing deposits 21,559 21,559 21,559 — — Certificates of deposit in other banks 11,601 11,601 11,601 — — Available for sale securities 181,270 181,270 995 180,275 — Other investment securities 6,210 6,210 13 6,197 — Loans, net 1,139,340 1,132,835 — — 1,132,835 Mortgage servicing rights 2,575 2,575 — — 2,575 Cash surrender value - life insurance 2,385 2,385 — 2,385 — Accrued interest receivable 6,215 6,215 6,215 — — $ 1,394,011 $ 1,387,506 $ 63,239 $ 188,857 $ 1,135,410 Liabilities: Deposits: Non-interest bearing demand $ 284,452 $ 284,452 $ 284,452 $ — $ — Savings, interest checking and money market 550,350 550,350 550,350 — — Time deposits 302,605 303,092 — — 303,092 Federal funds purchased and securities sold under agreements to repurchase 27,191 27,191 27,191 — — Federal Home Loan Bank advances and other borrowings 106,980 93,751 — 93,751 — Subordinated notes 49,486 43,393 — 43,393 — Operating lease liabilities 2,285 2,285 2,285 Accrued interest payable 1,020 1,020 1,020 — — $ 1,324,369 $ 1,305,534 $ 863,013 $ 139,429 $ 303,092 December 31, 2018 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2018 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 23,687 $ 23,687 $ 23,687 $ — $ — Federal funds sold and overnight interest-bearing deposits 18,396 18,396 18,396 — — Certificates of deposit in other banks 12,247 12,247 12,247 — — Available-for-sale securities 218,205 218,205 1,952 216,253 — Other investment securities 5,675 5,675 12 5,663 — Loans, net 1,134,975 1,115,003 — — 1,115,003 Mortgage servicing rights 2,931 2,931 — — 2,931 Cash surrender value - life insurance 2,542 2,542 — 2,542 — Accrued interest receivable 6,162 6,162 6,162 — — $ 1,424,820 $ 1,404,848 $ 62,456 $ 224,458 $ 1,117,934 Liabilities: Deposits: Non-interest bearing demand $ 262,857 $ 262,857 $ 262,857 $ — $ — Savings, interest checking and money market 614,040 614,040 614,040 — — Time deposits 321,571 318,949 — — 318,949 Federal funds purchased and securities sold under agreements to repurchase 24,647 24,647 24,647 — — Federal Home Loan Bank advances and other borrowings 95,153 94,326 — 94,326 — Subordinated notes 49,486 45,749 — 45,749 — Accrued interest payable 1,035 1,035 1,035 — — $ 1,368,789 $ 1,361,603 $ 902,579 $ 140,075 $ 318,949 Off-Balance Sheet Financial Instruments The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments, and the present creditworthiness of such counterparties. The Company believes such commitments have been made on terms that are competitive in the markets in which it operates. Limitations The fair value estimates provided are made at a point in time based on market information and information about the financial instruments. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the fair value estimates. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | (14) Commitments and Contingencies The Company issues financial instruments with off-balance-sheet risk in the normal course of business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. At September 30, 2019, no amounts have been accrued for any estimated losses for these financial instruments. The contractual amount of off-balance-sheet financial instruments were as follows as of the dates indicated: September 30, December 31, (in thousands) 2019 2018 Commitments to extend credit $ 246,058 $ 267,314 Commitments to originate residential first and second mortgage loans 9,582 1,759 Standby letters of credit 70,250 82,895 Total 325,890 351,968 Commitments Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain of the commitments and letters of credit are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, furniture and equipment, and real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support contractual obligations of the Company’s customers. The approximate remaining term of standby letters of credit range from one month to five years at September 30, 2019. Pending Litigation The Company and its subsidiaries are defendants in various legal actions incidental to the Company’s past and current business activities. Based on the Company’s analysis, and considering the inherent uncertainties associated with litigation, management does not believe that it is reasonably possible that these legal actions will materially adversely affect the Company’s consolidated financial condition or results of operations in the near term. The Company records a loss accrual for all legal matters for which it deems a loss is probable and can be reasonably estimated. Some legal matters, which are at early stages in the legal process, have not yet progressed to the point where a loss is deemed probable or an amount can be estimated. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition | |
Revenue Recognition | (15) Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are not in the scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust department revenue, service charges and fees, debit card income, ATM surcharge income, and sales of other real estate owned. However, the recognition of these revenue streams did not change current business practices or result in any changes to the Company’s consolidated financial statements. Descriptions of our revenue-generating activities within the scope of this guidance, which are presented in our income statement as components of noninterest income are as follows: · Service charges on deposit accounts - represents fees generated from a variety of deposit products and services provided to customers under a day-to-day contract. These fees are recognized on a daily or monthly basis. · Bank card income and fees – represents fees, exchange, and other service charge revenue earned from merchant, debit and credit cards that are recognized when the services are rendered or upon completion. These fees are recognized on a daily or monthly basis. · Gain on sale of other real estate - represents income recognized at the time of control of a property is transferred to the buyer. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies | |
Stock Dividend | Stock Dividend On July 1, 2019, the Company paid a special stock dividend of four percent to shareholders of record at the close of business on June 15, 2019. For all periods presented, share information, including basic and diluted earnings per share, has been adjusted retroactively to reflect this change. |
Summary of Recent Transactions and Events | Summary of Recent Transactions and Events On February 8, 2019, Hawthorn Bank, a wholly-owned subsidiary of the Company, completed the sale of its branch located in Branson, Missouri with total deposits of approximately $10.6 million to Branson Bank in Branson, Missouri. The transaction excludes loans assigned to the branch. The sale resulted in a pre-tax gain of approximately $2.2 million, or $1.7 million after tax . |
New accounting principles adopted | The following represents significant new accounting principles adopted in 2019: Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) which requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The ASU primarily affects lessee accounting, which requires the lessee to recognize a right-of-use asset (ROU) and a liability to make lease payments for those leases classified as operating leases. For leases with a term of 12 months or less, an election by class of underlying asset not to recognize lease assets and lease liabilities is permitted. The ASU also provides additional guidance as to the definition of a lease, identification of lease components, and sale and leaseback transactions. The Company's operating leases primarily relate to office space and bank branches. In January 2018, the FASB issued ASU 2018-01, which allows entities the option to apply the provisions of the new lease guidance at the effective date without adjusting the comparative periods presented. In July 2018, the FASB issued ASU 2018-10, which provides narrow-scope improvements to the lease standard and ASU 2018-11, which allows entities to choose an additional transition method, under which an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Under this transitional method, the entity shall recognize and measure the leases that exist at the adoption date and the prior comparative periods are not adjusted. The Company adopted this ASU as of January 1, 2019 using the transitional method. In addition, the Company utilized the practical expedients that allowed it to retain the classifications of existing leases, not re-assess if existing leases have initial direct costs, and hindsight when determining the lease term and assessment of impairment. The adoption of ASU 2016-02 and related transition guidance resulted in the recording of right-of-use assets and lease liabilities on the consolidated balance sheets of $2.3 million and $2.3 million, respectively; however, it did not have a material impact on the Company's other consolidated financial statements. See Note 7 - Leases for additional information. Derivatives and Hedging The FASB issued guidance within ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) in August 2017. The amendments in ASU 2017-12 to Topic 815, Derivatives and Hedging, are intended to more closely align hedge accounting with companies' risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The guidance also amends the presentation and disclosure requirements and changes how companies assess effectiveness. Under the new guidance, public companies will have until the end of the first quarter in which a hedge is designated to perform an initial assessment of a hedge's effectiveness. After initial qualification, the new guidance permits a qualitative effectiveness assessment for certain hedges instead of a quantitative test if the company can reasonably support an expectation of high effectiveness throughout the term of the hedge. Additional disclosures include cumulative basis adjustments for fair value hedges and the effect of hedging on individual income statement line items. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The ASU did not have a significant effect on the Company's Consolidated Financial Statements. |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Allowances for Loan Losses | |
Schedule of summary of loans, by major class within the Company's loan portfolio | September 30, December 31, (in thousands) 2019 2018 Commercial, financial, and agricultural $ 193,267 $ 207,720 Real estate construction - residential 23,782 28,610 Real estate construction - commercial 124,389 106,784 Real estate mortgage - residential 248,435 241,517 Real estate mortgage - commercial 530,010 529,536 Installment and other consumer 31,635 32,460 Total loans $ 1,151,518 $ 1,146,627 |
Schedule of summary of the allowance for loan losses | Three Months Ended September 30, 2019 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,783 $ 69 $ 704 $ 1,772 $ 6,109 $ 307 $ 139 $ 11,883 Additions: Provision for loan losses 155 3 97 252 (15) 62 (104) 450 Deductions: Loans charged off 61 — — 86 6 60 — 213 Less recoveries on loans (12) (12) — (8) (7) (19) — (58) Net loan charge-offs (recoveries) 49 (12) — 78 (1) 41 — 155 Balance at end of period $ 2,889 $ 84 $ 801 $ 1,946 $ 6,095 $ 328 $ 35 $ 12,178 Nine Months Ended September 30, 2019 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,237 $ 140 $ 757 $ 2,071 $ 4,914 $ 334 $ 199 $ 11,652 Additions: Provision for loan losses (232) (81) 44 30 1,193 60 (164) 850 Deductions: Loans charged off 255 — — 266 21 151 — 693 Less recoveries on loans (139) (25) — (111) (9) (85) — (369) Net loan charge-offs (recoveries) 116 (25) — 155 12 66 — 324 Balance at end of period $ 2,889 $ 84 $ 801 $ 1,946 $ 6,095 $ 328 $ 35 $ 12,178 Three Months Ended September 30, 2018 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,943 $ 201 $ 905 $ 2,109 $ 3,630 $ 413 $ 11 $ 11,212 Additions: Provision for loan losses (420) 26 (159) 255 444 39 65 250 Deductions: Loans charged off 75 — — 32 5 74 — 186 Less recoveries on loans (38) (13) — (9) (2) (20) — (82) Net loan charge-offs (recoveries) 37 (13) — 23 3 54 — 104 Balance at end of period $ 3,486 $ 240 $ 746 $ 2,341 $ 4,071 $ 398 $ 76 $ 11,358 Nine Months Ended September 30, 2018 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 3,325 $ 170 $ 807 $ 1,689 $ 4,437 345 $ 79 $ 10,852 Additions: Provision for loan losses 478 80 (31) 672 (366) 170 (3) 1,000 Deductions: Loans charged off 378 48 30 64 34 181 — 735 Less recoveries on loans (61) (38) — (44) (34) (64) — (241) Net loan charge-offs (recoveries) 317 10 30 20 — 117 — 494 Balance at end of period $ 3,486 $ 240 $ 746 $ 2,341 $ 4,071 $ 398 $ 76 $ 11,358 |
Schedule of allowance for loan losses and recorded investment by portfolio segment | Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total September 30, 2019 Allowance for loan losses: Individually evaluated for impairment $ 361 $ — $ — $ 296 $ 34 $ 17 $ — $ 708 Collectively evaluated for impairment 2,528 84 801 1,650 6,061 311 35 11,470 Total $ 2,889 $ 84 $ 801 $ 1,946 $ 6,095 $ 328 $ 35 $ 12,178 Loans outstanding: Individually evaluated for impairment $ 1,578 $ — $ 145 $ 3,902 $ 1,469 $ 161 $ — $ 7,255 Collectively evaluated for impairment 191,689 23,782 124,244 244,533 528,541 31,474 — 1,144,263 Total $ 193,267 $ 23,782 $ 124,389 $ 248,435 $ 530,010 $ 31,635 $ — $ 1,151,518 December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 551 $ — $ — $ 579 $ 37 $ 27 $ — $ 1,194 Collectively evaluated for impairment 2,686 140 757 1,492 4,877 307 199 10,458 Total $ 3,237 $ 140 $ 757 $ 2,071 $ 4,914 $ 334 $ 199 $ 11,652 Loans outstanding: Individually evaluated for impairment $ 2,428 $ — $ 153 $ 4,793 $ 850 $ 254 $ — $ 8,478 Collectively evaluated for impairment 205,292 28,610 106,631 236,724 528,686 32,206 — 1,138,149 Total $ 207,720 $ 28,610 $ 106,784 $ 241,517 $ 529,536 $ 32,460 $ — $ 1,146,627 |
Schedule of impaired loans | September 30, December 31, (in thousands) 2019 2018 Non-accrual and non-performing TDRs $ 4,623 $ 5,414 Performing TDRs 2,632 3,064 Total impaired loans $ 7,255 $ 8,478 The following tables provide additional information about impaired loans at September 30, 2019 and December 31, 2018, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided. Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves September 30, 2019 With no related allowance recorded: Commercial, financial and agricultural $ 496 $ 837 $ — Real estate - construction commercial 145 177 — Real estate - residential 606 684 — Real estate - commercial 377 394 Installment and other consumer 13 13 — Total $ 1,637 $ 2,105 $ — With an allowance recorded: Commercial, financial and agricultural $ 1,082 $ 1,163 $ 361 Real estate - residential 3,296 3,635 296 Real estate - commercial 1,092 1,219 34 Installment and other consumer 148 176 17 Total $ 5,618 $ 6,193 $ 708 Total impaired loans $ 7,255 $ 8,298 $ 708 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2018 With no related allowance recorded: Commercial, financial and agricultural $ 1,264 $ 1,550 $ — Real estate - construction commercial 153 180 — Real estate - residential 561 602 — Real estate - commercial 115 119 — Total $ 2,093 $ 2,451 $ — With an allowance recorded: Commercial, financial and agricultural $ 1,164 $ 1,236 $ 551 Real estate - residential 4,232 4,458 579 Real estate - commercial 735 1,093 37 Installment and other consumer 254 280 27 Total $ 6,385 $ 7,067 $ 1,194 Total impaired loans $ 8,478 $ 9,518 $ 1,194 The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest Interest Interest Interest Average Recognized Average Recognized Average Recognized Average Recognized Recorded For the Recorded For the Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 851 $ — $ 1,375 $ — $ 1,036 $ — $ 1,334 $ 1 Real estate - construction commercial 146 — 161 — 149 — 82 — Real estate - residential 1,301 — 1,037 3 651 — 929 9 Real estate - commercial 380 — 120 3 393 — 30 22 Installment and other consumer 4 — 91 — 3 — 34 — Total $ 2,682 $ — $ 2,784 $ 6 $ 2,232 $ — $ 2,409 $ 32 With an allowance recorded: Commercial, financial and agricultural $ 1,086 $ 9 $ 1,423 $ 8 $ 1,095 $ 30 $ 1,507 $ 23 Real estate - construction residential — — — — — — 15 — Real estate - construction commercial — — — — — — 24 — Real estate - residential 2,818 21 4,076 25 3,881 68 4,211 71 Real estate - commercial 1,112 9 1,443 13 788 25 1,649 24 Installment and other consumer 188 1 197 — 221 2 186 1 Total $ 5,204 $ 40 $ 7,139 $ 46 $ 5,985 $ 125 $ 7,592 $ 119 Total impaired loans $ 7,886 $ 40 $ 9,923 $ 52 $ 8,217 $ 125 $ 10,001 $ 151 |
Schedule of aging information for the Company's past due and non-accrual loans | Current or 90 Days Less Than Past Due 30 Days 30 - 89 Days And Still (in thousands) Past Due Past Due Accruing Non-Accrual Total September 30, 2019 Commercial, Financial, and Agricultural $ 192,142 $ 98 $ — $ 1,027 $ 193,267 Real Estate Construction - Residential 23,782 — — — 23,782 Real Estate Construction - Commercial 124,177 67 — 145 124,389 Real Estate Mortgage - Residential 245,379 705 193 2,158 248,435 Real Estate Mortgage - Commercial 528,539 360 — 1,111 530,010 Installment and Other Consumer 31,402 106 4 123 31,635 Total $ 1,145,421 $ 1,336 $ 197 $ 4,564 $ 1,151,518 December 31, 2018 Commercial, Financial, and Agricultural $ 205,597 $ 266 $ — $ 1,857 $ 207,720 Real Estate Construction - Residential 28,404 206 — — 28,610 Real Estate Construction - Commercial 106,531 100 — 153 106,784 Real Estate Mortgage - Residential 235,734 2,907 156 2,720 241,517 Real Estate Mortgage - Commercial 527,968 1,094 — 474 529,536 Installment and Other Consumer 32,002 242 6 210 32,460 Total $ 1,136,236 $ 4,815 $ 162 $ 5,414 $ 1,146,627 |
Schedule of risk categories by class | Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and other (in thousands) Agricultural Residential Commercial Residential Commercial Consumer Total At September 30, 2019 Watch $ 13,083 $ 679 $ 7,172 $ 14,453 $ 36,393 $ — $ 71,780 Substandard 1,257 — — 1,336 685 3 3,281 Performing TDRs 551 — — 1,685 358 38 2,632 Non-accrual and non-performing TDRs 1,027 — 145 2,217 1,111 123 4,623 Total $ 15,918 $ 679 $ 7,317 $ 19,691 $ 38,547 $ 164 $ 82,316 At December 31, 2018 Watch $ 8,871 $ 588 $ 4,063 $ 12,790 $ 36,408 $ 8 $ 62,728 Substandard 53 — — 1,411 702 3 2,169 Performing TDRs 570 — — 2,073 377 44 3,064 Non-accrual and non-performing TDRs 1,857 — 153 2,720 474 210 5,414 Total $ 11,351 $ 588 $ 4,216 $ 18,994 $ 37,961 $ 265 $ 73,375 |
Schedule of summary of loans that were modified as TDRs | Three Months Ended September 30, 2019 2018 Recorded Investment (1) Recorded Investment (1) Number of Pre- Post- Number of Pre- Post- (in thousands) Contracts Modification Modification Contracts Modification Modification Troubled Debt Restructurings Commercial, financial and agricultural — $ — $ — 2 $ 353 $ 353 Installment and other consumer — — — 1 112 53 Total — $ — $ — 3 $ 465 $ 406 Nine Months Ended September 30, 2019 2018 Recorded Investment (1) Recorded Investment (1) Number of Pre- Post- Number of Pre- Post- (in thousands) Contracts Modification Modification Contracts Modification Modification Troubled Debt Restructurings Commercial, financial and agricultural 2 $ 80 $ 76 2 $ 353 $ 353 Real estate mortgage - residential — — — 1 75 74 Installment and other consumer — — — 5 160 3 Total 2 $ 80 $ 76 8 $ 588 $ 430 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Other Real Estate and Reposse_2
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans | |
Schedule of summary of real estate and other assets acquired in settlement of loans | September 30, December 31, (in thousands) 2019 2018 Commercial $ 1,155 $ 1,168 Real estate construction - residential — 179 Real estate construction - commercial 11,553 12,101 Real estate mortgage - residential 286 336 Real estate mortgage - commercial 2,871 2,909 Total $ 15,865 $ 16,693 Less valuation allowance for other real estate owned (2,987) (3,002) Total other real estate owned $ 12,878 $ 13,691 |
Schedule of changes in the net carrying amount of other real estate owned and repossessed assets | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 16,066 $ 16,453 $ 16,693 $ 16,598 Additions 68 207 411 589 Proceeds from sales (352) (68) (1,277) (372) Charge-offs against the valuation allowance for other real estate owned, net — (20) (64) (245) Net gain (loss) on sales 83 (2) 102 — Total other real estate owned $ 15,865 $ 16,570 $ 15,865 $ 16,570 Less valuation allowance for other real estate owned (2,987) (3,002) (2,987) (3,002) Balance at end of period $ 12,878 $ 13,568 $ 12,878 $ 13,568 |
Schedule of summary of activity in valuation allowance for other real estate owned | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 2,956 $ 3,022 $ 3,002 $ 3,221 Provision for other real estate owned 31 — 49 26 Charge-offs — (20) (64) (245) Balance, end of period $ 2,987 $ 3,002 $ 2,987 $ 3,002 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities | |
Schedule of amortized cost and fair value of debt securities available-for-sale | Total Amortized Gross Unrealized Fair ( in thousands) Cost Gains Losses Value September 30, 2019 U.S. Treasury $ 985 $ 10 $ — $ 995 U.S. government and federal agency obligations 8,495 — (30) 8,465 Government sponsored enterprises 22,786 50 (38) 22,798 Obligations of states and political subdivisions 29,341 144 (61) 29,424 Mortgage-backed securities 115,261 542 (569) 115,234 Other debt securities (a) 3,000 51 — 3,051 Bank issued trust preferred securities (a) 1,486 — (183) 1,303 Total available-for-sale securities $ 181,354 $ 797 $ (881) $ 181,270 December 31, 2018 U.S. Treasury $ 1,984 $ — $ (32) $ 1,952 U.S. government and federal agency obligations 10,235 — (269) 9,966 Government sponsored enterprises 43,784 23 (472) 43,335 Obligations of states and political subdivisions 40,859 28 (501) 40,386 Mortgage-backed securities 121,230 72 (3,110) 118,192 Other debt securities (a) 3,000 — — 3,000 Bank issued trust preferred securities (a) 1,486 — (112) 1,374 Total available-for-sale securities $ 222,578 $ 123 $ (4,496) $ 218,205 (a) Certain hybrid instruments possessing characteristics typically associated with debt obligations. |
Schedule of amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity | Amortized Fair ( in thousands) Cost Value Due in one year or less $ 8,962 $ 8,951 Due after one year through five years 36,227 36,256 Due after five years through ten years 10,910 10,926 Due after ten years 9,994 9,903 Total 66,093 66,036 Mortgage-backed securities 115,261 115,234 Total available-for-sale securities $ 181,354 $ 181,270 |
Schedule of Other securities | (in thousands) September 30, 2019 December 31, 2018 Other securities: FHLB stock $ 6,046 $ 5,512 MIB stock 151 151 Equity securities with readily determinable fair values 13 12 Total other investment securities $ 6,210 $ 5,675 |
Schedule of gross unrealized losses on debt securities and fair value of related securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less than 12 months 12 months or more Total Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Losses Value Losses Value Losses At September 30, 2019 U.S. Treasury $ — $ — $ — $ — $ — $ — U.S. government and federal agency obligations 6,310 (25) 1,913 (5) 8,223 (30) Government sponsored enterprises 4,539 (6) 8,466 (32) 13,005 (38) Obligations of states and political subdivisions 9,098 (45) 2,891 (16) 11,989 (61) Mortgage-backed securities 8,624 (24) 46,968 (545) 55,592 (569) Other debt securities — — — — — — Bank issued trust preferred securities — — 1,303 (183) 1,303 (183) Total $ 28,571 $ (100) $ 61,541 $ (781) $ 90,112 $ (881) (in thousands) At December 31, 2018 U.S. Treasury $ — $ — $ 1,952 $ (32) $ 1,952 $ (32) U.S. government and federal agency obligations — — 9,966 (269) 9,966 (269) Government sponsored enterprises 1,997 (3) 33,346 (469) 35,343 (472) Obligations of states and political subdivisions 5,851 (16) 28,832 (485) 34,683 (501) Mortgage-backed securities 10,085 (61) 99,321 (3,049) 109,406 (3,110) Bank issued trust preferred securities — — 1,374 (112) 1,374 (112) Total $ 17,933 $ (80) $ 174,791 $ (4,416) $ 192,724 $ (4,496) |
Schedule of components of investment securities gains and losses | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Investment securities (losses) gains, net Available for sale securities: Gains realized on sales $ 6 $ 47 $ 6 $ 253 Losses realized on sales (46) — (46) — Other-than-temporary impairment recognized — — — — Other investment securities: Fair value adjustments, net — 3 — 3 Investment securities (losses) gains, net $ (40) $ 50 $ (40) $ 256 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Intangible Assets | |
Schedule of changes in mortgage servicing rights (MSRs) | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 2,657 $ 2,813 $ 2,931 $ 2,713 Originated mortgage servicing rights 88 66 187 198 Changes in fair value: Due to changes in model inputs and assumptions (1) (77) 70 (318) 203 Other changes in fair value (2) (93) (78) (225) (243) Total changes in fair value (170) (8) (543) (40) Balance at end of period $ 2,575 $ 2,871 $ 2,575 $ 2,871 (1) The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time. |
Schedule of key data and assumptions used in estimating the fair value of the Company's MSRs | Nine Months Ended September 30, 2019 2018 Weighted average constant prepayment rate 13.27 % 9.36 % Weighted average note rate 3.95 % 3.92 % Weighted average discount rate 8.75 % 10.36 % Weighted average expected life (in years) 4.8 6.1 |
Federal funds purchased and s_2
Federal funds purchased and securities sold under agreements to repurchase (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Federal funds purchased and securities sold under agreements to repurchase | |
Schedule of federal funds purchased and securities sold under agreements to repurchase | September 30, December 31, (in thousands) 2019 2018 Federal funds purchased $ — $ Repurchase agreements Total $ $ |
Schedule of repurchase agreements by remaining maturity of the agreements | Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Less Greater and than than (in thousands) continuous 90 days 90 days Total At September 30, 2019 U.S. Treasury $ 756 $ — $ — $ 756 Government sponsored enterprises 9,364 — — 9,364 Asset-backed securities 17,071 — — 17,071 Total $ 27,191 $ — $ — $ 27,191 At December 31, 2018 U.S. Treasury $ 1,464 $ — $ — $ 1,464 Government sponsored enterprises 12,976 — — 12,976 Asset-backed securities 2,207 — — 2,207 Total $ 16,647 $ — $ — $ 16,647 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Schedule of maturity of remaining operating leases liabilities | Operating Lease payments due in: Lease (in thousands) 2019 (excluding nine months ended September 30, 2019) $ 83 2020 334 2021 317 2022 310 2023 312 Thereafter 1,345 Total lease payments 2,701 Less imputed interest (416) Total lease liabilities, as reported $ 2,285 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity | |
Schedule of the change in the components of the accumulated other comprehensive loss | The following details the change in the components of the Company’s accumulated other comprehensive loss for the nine months ended September 30, 2019 and 2018: Nine Months Ended September 30, 2019 Accumulated Unrecognized Net Other Unrealized Pension and Comprehensive Gain (Loss) Postretirement (Loss) (in thousands) on Securities (1) Costs (2) Income Balance at beginning of period $ (3,455) $ (2,644) $ (6,099) Other comprehensive income, before reclassifications 4,250 58 4,308 Amounts reclassified from accumulated other comprehensive (loss) income 40 — 40 Current period other comprehensive income, before tax 4,290 58 4,348 Income tax expense (901) (12) (913) Current period other comprehensive income, net of tax 3,389 46 3,435 Balance at end of period $ (66) $ (2,598) $ (2,664) Nine Months Ended September 30, 2018 Unrecognized Net Accumulated Unrealized Pension and Other Gain (Loss) Postretirement Comprehensive (in thousands) on Securities (1) Costs (2) Loss Balance at beginning of period $ (2,500) $ (3,162) $ (5,662) Other comprehensive (loss) income, before reclassifications (3,915) 164 (3,751) Amounts reclassified from accumulated other comprehensive (loss) income — — — Current period other comprehensive (loss) income, before tax (3,915) 164 (3,751) Income tax benefit (expense) 822 (35) 787 Current period other comprehensive (loss) income, net of tax (3,093) 129 (2,964) Balance at end of period $ (5,593) $ (3,033) $ (8,626) (1) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in investment securities (loss) gain, net in the consolidated statements of income. (2) The pre-tax amounts reclassified from accumulated other comprehensive loss are included in the computation of net periodic pension cost. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Employee Benefit Plans | |
Schedule of employee benefits charged to operating expenses | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Payroll taxes $ 256 $ 261 $ 871 $ 913 Medical plans 432 490 1,359 1,650 401(k) match and profit sharing 349 261 929 684 Periodic pension cost 358 470 1,073 1,280 Other 15 12 40 37 Total employee benefits $ 1,410 $ 1,494 $ 4,272 $ 4,564 |
Schedule of components of net pension cost | Pension Benefits (in thousands) 2019 2018 Service cost - benefits earned during the year $ 1,431 $ 1,707 Interest costs on projected benefit obligations (a) 1,168 1,037 Expected return on plan assets (a) (1,467) (1,327) Expected administrative expenses (a) 122 93 Amortization of prior service cost (a) 79 79 Amortization of unrecognized net loss (a) — 140 Net periodic pension cost $ 1,333 $ 1,729 Net periodic pension cost for the three months ended September 30, (actual) $ 358 $ 470 Net periodic pension cost for the nine months ended September 30, (actual) $ 1,073 $ 1,280 (a) The components of net periodic pension cost other than the service cost component are included in other non-interest expense. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share | |
Schedule of calculations of basic and diluted earnings per common share | Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands, except per share data) 2019 2018 2019 2018 Basic earnings per share: Net income available to shareholders $ 3,860 $ 3,098 $ 12,046 $ 8,095 Average shares outstanding 6,276,236 6,264,200 6,276,236 6,265,290 Basic earnings per share $ 0.62 $ 0.49 $ 1.92 $ 1.29 Diluted earnings per share: Net income available to shareholders $ 3,860 $ 3,098 $ 12,046 $ 8,095 Average shares outstanding 6,276,236 6,264,200 6,276,236 6,265,290 Effect of dilutive stock options — 6,617 — 6,740 Average shares outstanding including dilutive stock options 6,276,236 6,270,817 6,276,236 6,272,030 Diluted earnings per share $ 0.62 0.49 $ 1.92 1.29 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements | |
Schedule of mortgage servicing rights | Fair Value Measurements Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) September 30, 2019 Assets: U.S. Treasury $ 995 $ 995 — $ — U.S. government and federal agency obligations 8,465 — 8,465 — Government sponsored enterprises 22,798 — 22,798 — Obligations of states and political subdivisions 29,424 — 29,424 — Mortgage-backed securities 115,234 — 115,234 — Other debt securities 3,051 — 3,051 — Bank-issued trust preferred securities 1,303 — 1,303 — Equity securities 13 13 — — Mortgage servicing rights 2,575 — — 2,575 Total $ 183,858 $ 1,008 $ 180,275 $ 2,575 December 31, 2018 Assets: U.S. Treasury $ 1,952 $ 1,952 — $ — U.S. government and federal agency obligations 9,966 — 9,966 — Government sponsored enterprises 43,335 — 43,335 — Obligations of states and political subdivisions 40,386 — 40,386 — Mortgage-backed securities 118,192 — 118,192 — Other debt securities 3,000 — 3,000 — Bank-issued trust preferred securities 1,374 — 1,374 — Equity securities 12 12 — — Mortgage servicing rights 2,931 — — 2,931 Total $ 221,148 $ 1,964 $ 216,253 $ 2,931 |
Schedule of summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements Using Fair Value Measurements Using Significant Unobservable Inputs Significant Unobservable Inputs (Level 3) (Level 3) Mortgage Servicing Rights Mortgage Servicing Rights Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 2,657 $ 2,813 $ 2,931 $ 2,713 Total (losses) or gains (realized/unrealized): Included in earnings (170) (8) (543) (40) Included in other comprehensive income — — — — Purchases — — — — Sales — — — — Issues 88 66 187 198 Settlements — — — — Balance at end of period $ 2,575 $ 2,871 $ 2,575 $ 2,871 |
Schedule of valuation methods for instruments measured at fair value on a nonrecurring basis | Fair Value Measurements Using Quoted Prices in Active Three Months Nine Months Markets for Other Significant Ended Ended Identical Observable Unobservable September 30, September 30, Total Assets Inputs Inputs Total Gains Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* (Losses)* September 30, 2019 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 529 $ — $ — $ 529 $ (22) $ (132) Real estate construction - commercial 145 — — 145 — — Real estate mortgage - residential 933 — — 933 (45) (45) Real estate mortgage - commercial 860 — — 860 (6) (15) Installment and other consumer 13 — — 13 (4) (12) Total $ 2,480 $ — $ — $ 2,480 $ (77) $ (204) Other real estate and repossessed assets $ 12,878 $ — $ — $ 12,878 $ 10 $ (166) September 30, 2018 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 1,549 $ — $ — $ 1,549 $ (21) $ (187) Real estate construction - commercial 158 — — 158 — (27) Real estate mortgage - residential 1,156 — — 1,156 (32) (44) Real estate mortgage - commercial 399 — — 399 — (20) Installment and other consumer — — — — — (25) Total $ 3,262 $ — $ — $ 3,262 $ (53) $ (303) Other real estate and repossessed assets $ 13,373 $ — $ — $ 13,373 $ (3) $ (29) * |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value of Financial Instruments | |
Schedule of summary of the carrying amounts and fair values of financial instruments | September 30, 2019 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant September 30, 2019 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 22,856 $ 22,856 $ 22,856 $ — $ — Federal funds sold and overnight interest-bearing deposits 21,559 21,559 21,559 — — Certificates of deposit in other banks 11,601 11,601 11,601 — — Available for sale securities 181,270 181,270 995 180,275 — Other investment securities 6,210 6,210 13 6,197 — Loans, net 1,139,340 1,132,835 — — 1,132,835 Mortgage servicing rights 2,575 2,575 — — 2,575 Cash surrender value - life insurance 2,385 2,385 — 2,385 — Accrued interest receivable 6,215 6,215 6,215 — — $ 1,394,011 $ 1,387,506 $ 63,239 $ 188,857 $ 1,135,410 Liabilities: Deposits: Non-interest bearing demand $ 284,452 $ 284,452 $ 284,452 $ — $ — Savings, interest checking and money market 550,350 550,350 550,350 — — Time deposits 302,605 303,092 — — 303,092 Federal funds purchased and securities sold under agreements to repurchase 27,191 27,191 27,191 — — Federal Home Loan Bank advances and other borrowings 106,980 93,751 — 93,751 — Subordinated notes 49,486 43,393 — 43,393 — Operating lease liabilities 2,285 2,285 2,285 Accrued interest payable 1,020 1,020 1,020 — — $ 1,324,369 $ 1,305,534 $ 863,013 $ 139,429 $ 303,092 December 31, 2018 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2018 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 23,687 $ 23,687 $ 23,687 $ — $ — Federal funds sold and overnight interest-bearing deposits 18,396 18,396 18,396 — — Certificates of deposit in other banks 12,247 12,247 12,247 — — Available-for-sale securities 218,205 218,205 1,952 216,253 — Other investment securities 5,675 5,675 12 5,663 — Loans, net 1,134,975 1,115,003 — — 1,115,003 Mortgage servicing rights 2,931 2,931 — — 2,931 Cash surrender value - life insurance 2,542 2,542 — 2,542 — Accrued interest receivable 6,162 6,162 6,162 — — $ 1,424,820 $ 1,404,848 $ 62,456 $ 224,458 $ 1,117,934 Liabilities: Deposits: Non-interest bearing demand $ 262,857 $ 262,857 $ 262,857 $ — $ — Savings, interest checking and money market 614,040 614,040 614,040 — — Time deposits 321,571 318,949 — — 318,949 Federal funds purchased and securities sold under agreements to repurchase 24,647 24,647 24,647 — — Federal Home Loan Bank advances and other borrowings 95,153 94,326 — 94,326 — Subordinated notes 49,486 45,749 — 45,749 — Accrued interest payable 1,035 1,035 1,035 — — $ 1,368,789 $ 1,361,603 $ 902,579 $ 140,075 $ 318,949 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | |
Schedule of contractual amount of off-balance-sheet financial instruments | September 30, December 31, (in thousands) 2019 2018 Commitments to extend credit $ 246,058 $ 267,314 Commitments to originate residential first and second mortgage loans 9,582 1,759 Standby letters of credit 70,250 82,895 Total 325,890 351,968 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Other (Details) | Jul. 01, 2019 |
Summary of Significant Accounting Policies | |
Dividends Payable, Date to be Paid | Jul. 1, 2019 |
Special stock dividend, rate percent | 4.00% |
Special stock dividend, record date | Jun. 15, 2019 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Recent Transactions (Details) - USD ($) $ in Millions | Feb. 08, 2019 | Sep. 30, 2019 |
Summary Of Significant Accounting Policies | ||
Pre-tax gain on sale of branch | $ 2.2 | |
Hawthorn Bank | Branch Located in Branson, Missouri | ||
Summary Of Significant Accounting Policies | ||
Deposit Assets | $ 10.6 | |
Pre-tax gain on sale of branch | 2.2 | |
Gain on sale of branch, net of tax | $ 1.7 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - New Accounting Principles (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Principles | ||
Right-of-use assets | $ 2,300 | |
Operating lease liabilities | $ 2,285 | |
Accounting Standards Update 2016-02 | Adjustment | ||
New Accounting Principles | ||
Right-of-use assets | $ 2,300 | |
Operating lease liabilities | $ 2,300 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loans by Major Class (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans and Allowance for Loan Losses | ||
Total loans | $ 1,151,518 | $ 1,146,627 |
Commercial, financial, and agricultural | ||
Loans and Allowance for Loan Losses | ||
Total loans | 193,267 | 207,720 |
Residential real estate | Construction | ||
Loans and Allowance for Loan Losses | ||
Total loans | 23,782 | 28,610 |
Residential real estate | Mortgages | ||
Loans and Allowance for Loan Losses | ||
Total loans | 248,435 | 241,517 |
Commercial real estate | Construction | ||
Loans and Allowance for Loan Losses | ||
Total loans | 124,389 | 106,784 |
Commercial real estate | Mortgages | ||
Loans and Allowance for Loan Losses | ||
Total loans | 530,010 | 529,536 |
Installment and other consumer | ||
Loans and Allowance for Loan Losses | ||
Total loans | $ 31,635 | $ 32,460 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Loans Pledged (Details) $ in Millions | Sep. 30, 2019USD ($) |
Loans and Allowances for Loan Losses | |
Amount of loans pledged as collateral to the Federal Home Loan Bank | $ 501 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of the allowance for loan losses | ||||
Balance at beginning of period | $ 11,883 | $ 11,212 | $ 11,652 | $ 10,852 |
Additions: | ||||
Provision for loan losses | 450 | 250 | 850 | 1,000 |
Deductions: | ||||
Loans charged off | 213 | 186 | 693 | 735 |
Less recoveries on loans | (58) | (82) | (369) | (241) |
Net loan charge-offs (recoveries) | 155 | 104 | 324 | 494 |
Balance at end of period | 12,178 | 11,358 | 12,178 | 11,358 |
Commercial, financial, and agricultural | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 2,783 | 3,943 | 3,237 | 3,325 |
Additions: | ||||
Provision for loan losses | 155 | (420) | (232) | 478 |
Deductions: | ||||
Loans charged off | 61 | 75 | 255 | 378 |
Less recoveries on loans | (12) | (38) | (139) | (61) |
Net loan charge-offs (recoveries) | 49 | 37 | 116 | 317 |
Balance at end of period | 2,889 | 3,486 | 2,889 | 3,486 |
Residential real estate | Construction | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 69 | 201 | 140 | 170 |
Additions: | ||||
Provision for loan losses | 3 | 26 | (81) | 80 |
Deductions: | ||||
Loans charged off | 0 | 0 | 48 | |
Less recoveries on loans | (12) | (13) | (25) | (38) |
Net loan charge-offs (recoveries) | (12) | (13) | (25) | 10 |
Balance at end of period | 84 | 240 | 84 | 240 |
Residential real estate | Mortgages | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 1,772 | 2,109 | 2,071 | 1,689 |
Additions: | ||||
Provision for loan losses | 252 | 255 | 30 | 672 |
Deductions: | ||||
Loans charged off | 86 | 32 | 266 | 64 |
Less recoveries on loans | (8) | (9) | (111) | (44) |
Net loan charge-offs (recoveries) | 78 | 23 | 155 | 20 |
Balance at end of period | 1,946 | 2,341 | 1,946 | 2,341 |
Commercial real estate | Construction | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 704 | 905 | 757 | 807 |
Additions: | ||||
Provision for loan losses | 97 | (159) | 44 | (31) |
Deductions: | ||||
Loans charged off | 0 | 0 | 30 | |
Less recoveries on loans | 0 | 0 | ||
Net loan charge-offs (recoveries) | 0 | 0 | 30 | |
Balance at end of period | 801 | 746 | 801 | 746 |
Commercial real estate | Mortgages | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 6,109 | 3,630 | 4,914 | 4,437 |
Additions: | ||||
Provision for loan losses | (15) | 444 | 1,193 | (366) |
Deductions: | ||||
Loans charged off | 6 | 5 | 21 | 34 |
Less recoveries on loans | (7) | (2) | (9) | (34) |
Net loan charge-offs (recoveries) | (1) | 3 | 12 | |
Balance at end of period | 6,095 | 4,071 | 6,095 | 4,071 |
Installment and other consumer | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 307 | 413 | 334 | 345 |
Additions: | ||||
Provision for loan losses | 62 | 39 | 60 | 170 |
Deductions: | ||||
Loans charged off | 60 | 74 | 151 | 181 |
Less recoveries on loans | (19) | (20) | (85) | (64) |
Net loan charge-offs (recoveries) | 41 | 54 | 66 | 117 |
Balance at end of period | 328 | 398 | 328 | 398 |
Unallocated | ||||
Summary of the allowance for loan losses | ||||
Balance at beginning of period | 139 | 11 | 199 | 79 |
Additions: | ||||
Provision for loan losses | (104) | 65 | (164) | (3) |
Deductions: | ||||
Loans charged off | 0 | 0 | ||
Less recoveries on loans | 0 | 0 | ||
Net loan charge-offs (recoveries) | 0 | 0 | ||
Balance at end of period | $ 35 | $ 76 | $ 35 | $ 76 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Impairment Methodology (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for loan losses: | ||||||
Individually evaluated for impairment | $ 708 | $ 1,194 | ||||
Collectively evaluated for impairment | 11,470 | 10,458 | ||||
Total | 12,178 | $ 11,883 | 11,652 | $ 11,358 | $ 11,212 | $ 10,852 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 7,255 | 8,478 | ||||
Collectively evaluated for impairment | 1,144,263 | 1,138,149 | ||||
Total | 1,151,518 | 1,146,627 | ||||
Commercial, financial, and agricultural | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 361 | 551 | ||||
Collectively evaluated for impairment | 2,528 | 2,686 | ||||
Total | 2,889 | 2,783 | 3,237 | 3,486 | 3,943 | 3,325 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 1,578 | 2,428 | ||||
Collectively evaluated for impairment | 191,689 | 205,292 | ||||
Total | 193,267 | 207,720 | ||||
Residential real estate | Construction | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 84 | 140 | ||||
Total | 84 | 69 | 140 | 240 | 201 | 170 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 23,782 | 28,610 | ||||
Total | 23,782 | 28,610 | ||||
Residential real estate | Mortgages | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 296 | 579 | ||||
Collectively evaluated for impairment | 1,650 | 1,492 | ||||
Total | 1,946 | 1,772 | 2,071 | 2,341 | 2,109 | 1,689 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 3,902 | 4,793 | ||||
Collectively evaluated for impairment | 244,533 | 236,724 | ||||
Total | 248,435 | 241,517 | ||||
Commercial real estate | Construction | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 801 | 757 | ||||
Total | 801 | 704 | 757 | 746 | 905 | 807 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 145 | 153 | ||||
Collectively evaluated for impairment | 124,244 | 106,631 | ||||
Total | 124,389 | 106,784 | ||||
Commercial real estate | Mortgages | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 34 | 37 | ||||
Collectively evaluated for impairment | 6,061 | 4,877 | ||||
Total | 6,095 | 6,109 | 4,914 | 4,071 | 3,630 | 4,437 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 1,469 | 850 | ||||
Collectively evaluated for impairment | 528,541 | 528,686 | ||||
Total | 530,010 | 529,536 | ||||
Installment and other consumer | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 17 | 27 | ||||
Collectively evaluated for impairment | 311 | 307 | ||||
Total | 328 | 307 | 334 | 398 | 413 | 345 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 161 | 254 | ||||
Collectively evaluated for impairment | 31,474 | 32,206 | ||||
Total | 31,635 | 32,460 | ||||
Unallocated | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 35 | 199 | ||||
Total | 35 | $ 139 | 199 | $ 76 | $ 11 | $ 79 |
Loans outstanding: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans and Allowances for Loan Losses | ||
Impaired loans individually evaluated for impairment | $ 7,255 | $ 8,478 |
Impaired loans were evaluated based on the fair value of the loan's collateral | 2,900 | 3,800 |
Specific allowance related to impaired loans | 708 | 1,194 |
Impaired loans with no reserve allocation | $ 1,637 | $ 2,093 |
Impaired loans required no reserve allocation, percentage | 23.00% | 25.00% |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Categories of Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Categories of impaired loans | ||
Non-accrual and non-performing TDRs | $ 4,623 | $ 5,414 |
Performing TDRs | 2,632 | 3,064 |
Total impaired loans | $ 7,255 | $ 8,478 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Additional information about Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Impaired loans | ||
Recorded Investment, With no related allowance recorded | $ 1,637 | $ 2,093 |
Unpaid Principal Balance, With no related allowance recorded | 2,105 | 2,451 |
Recorded Investment, With an allowance recorded | 5,618 | 6,385 |
Unpaid Principal Balance, With an allowance recorded | 6,193 | 7,067 |
Specific Reserves, With an allowance recorded | 708 | 1,194 |
Total impaired loans, Recorded Investment | 7,255 | 8,478 |
Total impaired loans, Unpaid Principal Balance | 8,298 | 9,518 |
Commercial, financial, and agricultural | ||
Impaired loans | ||
Recorded Investment, With no related allowance recorded | 496 | 1,264 |
Unpaid Principal Balance, With no related allowance recorded | 837 | 1,550 |
Recorded Investment, With an allowance recorded | 1,082 | 1,164 |
Unpaid Principal Balance, With an allowance recorded | 1,163 | 1,236 |
Specific Reserves, With an allowance recorded | 361 | 551 |
Residential real estate | ||
Impaired loans | ||
Recorded Investment, With no related allowance recorded | 606 | 561 |
Unpaid Principal Balance, With no related allowance recorded | 684 | 602 |
Recorded Investment, With an allowance recorded | 3,296 | 4,232 |
Unpaid Principal Balance, With an allowance recorded | 3,635 | 4,458 |
Specific Reserves, With an allowance recorded | 296 | 579 |
Commercial real estate | ||
Impaired loans | ||
Recorded Investment, With no related allowance recorded | 377 | 115 |
Unpaid Principal Balance, With no related allowance recorded | 394 | 119 |
Recorded Investment, With an allowance recorded | 1,092 | 735 |
Unpaid Principal Balance, With an allowance recorded | 1,219 | 1,093 |
Specific Reserves, With an allowance recorded | 34 | 37 |
Commercial real estate | Construction | ||
Impaired loans | ||
Recorded Investment, With no related allowance recorded | 145 | 153 |
Unpaid Principal Balance, With no related allowance recorded | 177 | 180 |
Installment and other consumer | ||
Impaired loans | ||
Recorded Investment, With no related allowance recorded | 13 | |
Unpaid Principal Balance, With no related allowance recorded | 13 | |
Recorded Investment, With an allowance recorded | 148 | 254 |
Unpaid Principal Balance, With an allowance recorded | 176 | 280 |
Specific Reserves, With an allowance recorded | $ 17 | $ 27 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Average Recorded Investment and Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | $ 2,682 | $ 2,784 | $ 2,232 | $ 2,409 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 6 | 32 | |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 5,204 | 7,139 | 5,985 | 7,592 |
With an allowance recorded, Interest Recognized For The Period Ended | 40 | 46 | 125 | 119 |
Total average recorded investment | 7,886 | 9,923 | 8,217 | 10,001 |
Total interest income recognized For the Period Ended | 40 | 52 | 125 | 151 |
Commercial, financial, and agricultural | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 851 | 1,375 | 1,036 | 1,334 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 1 | |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 1,086 | 1,423 | 1,095 | 1,507 |
With an allowance recorded, Interest Recognized For The Period Ended | 9 | 8 | 30 | 23 |
Residential real estate | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 1,301 | 1,037 | 651 | 929 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 3 | 9 | |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 2,818 | 4,076 | 3,881 | 4,211 |
With an allowance recorded, Interest Recognized For The Period Ended | 21 | 25 | 68 | 71 |
Residential real estate | Construction | ||||
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 0 | 0 | 0 | 15 |
With an allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 0 | 0 |
Commercial real estate | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 380 | 120 | 393 | 30 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 3 | 22 | |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 1,112 | 1,443 | 788 | 1,649 |
With an allowance recorded, Interest Recognized For The Period Ended | 9 | 13 | 25 | 24 |
Commercial real estate | Construction | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 146 | 161 | 149 | 82 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 0 | 0 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 0 | 24 | ||
With an allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | ||
Installment and other consumer | ||||
With no related allowance recorded: | ||||
With no related allowance recorded, Average Recorded Investment | 4 | 91 | 3 | 34 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 0 | 0 | 0 |
With an allowance recorded: | ||||
With an allowance recorded, Average Recorded Investment | 188 | 197 | 221 | 186 |
With an allowance recorded, Interest Recognized For The Period Ended | $ 1 | $ 0 | $ 2 | $ 1 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Past Due and Non-accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | $ 197 | $ 162 |
Non-Accrual | 4,564 | 5,414 |
Loans | 1,151,518 | 1,146,627 |
Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 1,145,421 | 1,136,236 |
30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 1,336 | 4,815 |
Commercial, financial, and agricultural | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Non-Accrual | 1,027 | 1,857 |
Loans | 193,267 | 207,720 |
Commercial, financial, and agricultural | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 192,142 | 205,597 |
Commercial, financial, and agricultural | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 98 | 266 |
Residential real estate | Construction | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Non-Accrual | 0 | 0 |
Loans | 23,782 | 28,610 |
Residential real estate | Construction | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 23,782 | 28,404 |
Residential real estate | Construction | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 0 | 206 |
Residential real estate | Mortgages | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 193 | 156 |
Non-Accrual | 2,158 | 2,720 |
Loans | 248,435 | 241,517 |
Residential real estate | Mortgages | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 245,379 | 235,734 |
Residential real estate | Mortgages | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 705 | 2,907 |
Commercial real estate | Construction | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Non-Accrual | 145 | 153 |
Loans | 124,389 | 106,784 |
Commercial real estate | Construction | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 124,177 | 106,531 |
Commercial real estate | Construction | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 67 | 100 |
Commercial real estate | Mortgages | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Non-Accrual | 1,111 | 474 |
Loans | 530,010 | 529,536 |
Commercial real estate | Mortgages | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 528,539 | 527,968 |
Commercial real estate | Mortgages | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 360 | 1,094 |
Installment and other consumer | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 4 | 6 |
Non-Accrual | 123 | 210 |
Loans | 31,635 | 32,460 |
Installment and other consumer | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 31,402 | 32,002 |
Installment and other consumer | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | $ 106 | $ 242 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Credit Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 1,151,518 | $ 1,146,627 |
Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 71,780 | 62,728 |
Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 3,281 | 2,169 |
Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,632 | 3,064 |
Non-accrual and non-performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 4,623 | 5,414 |
Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 82,316 | 73,375 |
Commercial, financial, and agricultural | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 193,267 | 207,720 |
Commercial, financial, and agricultural | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 13,083 | 8,871 |
Commercial, financial, and agricultural | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,257 | 53 |
Commercial, financial, and agricultural | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 551 | 570 |
Commercial, financial, and agricultural | Non-accrual and non-performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,027 | 1,857 |
Commercial, financial, and agricultural | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 15,918 | 11,351 |
Residential real estate | Construction | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 23,782 | 28,610 |
Residential real estate | Construction | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 679 | 588 |
Residential real estate | Construction | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Residential real estate | Construction | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Residential real estate | Construction | Non-accrual and non-performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Residential real estate | Construction | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 679 | 588 |
Residential real estate | Mortgages | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 248,435 | 241,517 |
Residential real estate | Mortgages | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 14,453 | 12,790 |
Residential real estate | Mortgages | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,336 | 1,411 |
Residential real estate | Mortgages | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,685 | 2,073 |
Residential real estate | Mortgages | Non-accrual and non-performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,217 | 2,720 |
Residential real estate | Mortgages | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 19,691 | 18,994 |
Commercial real estate | Construction | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 124,389 | 106,784 |
Commercial real estate | Construction | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 7,172 | 4,063 |
Commercial real estate | Construction | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Commercial real estate | Construction | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Commercial real estate | Construction | Non-accrual and non-performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 145 | 153 |
Commercial real estate | Construction | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 7,317 | 4,216 |
Commercial real estate | Mortgages | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 530,010 | 529,536 |
Commercial real estate | Mortgages | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 36,393 | 36,408 |
Commercial real estate | Mortgages | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 685 | 702 |
Commercial real estate | Mortgages | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 358 | 377 |
Commercial real estate | Mortgages | Non-accrual and non-performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,111 | 474 |
Commercial real estate | Mortgages | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 38,547 | 37,961 |
Installment and other consumer | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 31,635 | 32,460 |
Installment and other consumer | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 8 |
Installment and other consumer | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 3 | 3 |
Installment and other consumer | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 38 | 44 |
Installment and other consumer | Non-accrual and non-performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 123 | 210 |
Installment and other consumer | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 164 | $ 265 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | Dec. 31, 2018USD ($) | ||||
Troubled Debt Restructurings | ||||||||
Troubled debt restructurings | $ 4,000,000 | $ 4,000,000 | $ 5,000,000 | |||||
Amount of specific reserves related to TDRs which were allocated to the allowance for loan losses | $ 471,000 | $ 471,000 | 543,000 | |||||
Number of contracts called for default and charged off | contract | 1 | 0 | 1 | 0 | ||||
Number of Contracts | contract | 3 | 2 | [1] | 8 | [1] | |||
Pre- Modification | $ 465,000 | $ 80,000 | [1] | $ 588,000 | [1] | |||
Post- Modification | $ 406,000 | $ 76,000 | [1] | $ 430,000 | [1] | |||
Commercial, financial, and agricultural | ||||||||
Troubled Debt Restructurings | ||||||||
Number of Contracts | contract | 2 | 2 | [1] | 2 | [1] | |||
Pre- Modification | $ 353,000 | $ 80,000 | [1] | $ 353,000 | [1] | |||
Post- Modification | $ 353,000 | 76,000 | [1] | $ 353,000 | [1] | |||
Residential real estate | Mortgages | ||||||||
Troubled Debt Restructurings | ||||||||
Number of Contracts | contract | [1] | 1 | ||||||
Pre- Modification | [1] | $ 75,000 | ||||||
Post- Modification | [1] | $ 74,000 | ||||||
Installment and other consumer | ||||||||
Troubled Debt Restructurings | ||||||||
Number of Contracts | contract | 1 | 5 | [1] | |||||
Pre- Modification | $ 112,000 | $ 160,000 | [1] | |||||
Post- Modification | $ 53,000 | $ 3,000 | [1] | |||||
Performing TDRs | ||||||||
Troubled Debt Restructurings | ||||||||
Troubled debt restructurings | $ 2,600,000 | 2,600,000 | 3,000,000 | |||||
Non-accrual and non-performing TDRs | ||||||||
Troubled Debt Restructurings | ||||||||
Troubled debt restructurings | $ 1,400,000 | $ 1,400,000 | $ 2,000,000 | |||||
[1] | The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Other Real Estate and Reposse_3
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Summary of real estate and other assets acquired in settlement of loans | ||||||
Total | $ 15,865 | $ 16,066 | $ 16,693 | $ 16,570 | $ 16,453 | $ 16,598 |
Less valuation allowance for other real estate owned | (2,987) | $ (2,956) | (3,002) | (3,002) | $ (3,022) | $ (3,221) |
Total other real estate and repossessed assets | 12,878 | 13,691 | $ 13,568 | |||
Commercial | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 1,155 | 1,168 | ||||
Residential real estate | Construction | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 0 | 179 | ||||
Residential real estate | Mortgages | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 286 | 336 | ||||
Commercial real estate | Construction | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | 11,553 | 12,101 | ||||
Commercial real estate | Mortgages | ||||||
Summary of real estate and other assets acquired in settlement of loans | ||||||
Real estate acquired through foreclosure | $ 2,871 | $ 2,909 |
Other Real Estate and Reposse_4
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans - Changes in Net Carrying Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Schedule of real estate acquired in settlement of loans | |||||
Balance at beginning of period | $ 16,066 | $ 16,453 | $ 16,693 | $ 16,598 | |
Additions | 68 | 207 | 411 | 589 | |
Proceeds from sales | (352) | (68) | (1,277) | (372) | |
Charge-offs against the valuation allowance for other real estate owned, net | 0 | (20) | (64) | (245) | |
Net gain (loss) on sales | 83 | (2) | 102 | 0 | |
Total other real estate and repossessed assets | 15,865 | 16,570 | 15,865 | 16,570 | |
Less valuation allowance for other real estate owned | (2,987) | (3,002) | (2,987) | (3,002) | |
Balance at end of period | $ 12,878 | $ 13,568 | $ 12,878 | $ 13,568 | $ 13,691 |
Other Real Estate and Reposse_5
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans - Foreclosure (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans | ||
Consumer mortgage loans in process of foreclosure | $ 252,000 | $ 200,000 |
Other Real Estate and Reposse_6
Other Real Estate and Repossessed Assets Acquired in Settlement of Loans - Valuation Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of activity in valuation allowance for other real estate owned in settlement of loans | ||||
Balance, beginning of period | $ 2,956 | $ 3,022 | $ 3,002 | $ 3,221 |
Provision for other real estate owned | 31 | 0 | 49 | 26 |
Charge-offs | 0 | (20) | (64) | (245) |
Balance, end of period | $ 2,987 | $ 3,002 | $ 2,987 | $ 3,002 |
Investment Securities - Amortiz
Investment Securities - Amortized Costs, Gains and Losses, Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | $ 181,354 | $ 222,578 |
Gross Unrealized Gains | 797 | 123 |
Gross Unrealized Losses | (881) | (4,496) |
Fair value | 181,270 | 218,205 |
U.S. Treasury | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 985 | 1,984 |
Gross Unrealized Gains | 10 | 0 |
Gross Unrealized Losses | 0 | (32) |
Fair value | 995 | 1,952 |
U.S. government and federal agency obligations | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 8,495 | 10,235 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (30) | (269) |
Fair value | 8,465 | 9,966 |
Government sponsored enterprises | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 22,786 | 43,784 |
Gross Unrealized Gains | 50 | 23 |
Gross Unrealized Losses | (38) | (472) |
Fair value | 22,798 | 43,335 |
Obligations of states and political subdivisions | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 29,341 | 40,859 |
Gross Unrealized Gains | 144 | 28 |
Gross Unrealized Losses | (61) | (501) |
Fair value | 29,424 | 40,386 |
Mortgage-backed securities | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 115,261 | 121,230 |
Gross Unrealized Gains | 542 | 72 |
Gross Unrealized Losses | (569) | (3,110) |
Fair value | 115,234 | 118,192 |
Other debt securities | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 3,000 | 3,000 |
Gross Unrealized Gains | 51 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair value | 3,051 | 3,000 |
Bank issued trust preferred securities | ||
Amortized cost and fair value of debt securities available-for-sale | ||
Total Amortized Cost | 1,486 | 1,486 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (183) | (112) |
Fair value | $ 1,303 | $ 1,374 |
Investment Securities - Securit
Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Investment Securities | ||
Debt securities with carrying values, pledged | $ 117.9 | $ 153 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 8,962 | |
Due after one year through five years | 36,227 | |
Due after five years through ten years | 10,910 | |
Due after ten years | 9,994 | |
Total | 66,093 | |
Mortgage-backed securities | 115,261 | |
Total available-for-sale securities | 181,354 | $ 222,578 |
Fair Value | ||
Due in one year or less | 8,951 | |
Due after one year through five years | 36,256 | |
Due after five years through ten years | 10,926 | |
Due after ten years | 9,903 | |
Total | 66,036 | |
Mortgage-backed securities | 115,234 | |
Total available-for-sale securities | $ 181,270 | $ 218,205 |
Investment Securities - Other S
Investment Securities - Other Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investment Securities | ||
FHLB stock | $ 6,046 | $ 5,512 |
MIB stock | 151 | 151 |
Equity securities with readily determinable fair values | 13 | 12 |
Total other investment securities | $ 6,210 | $ 5,675 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less than 12 months | $ 28,571 | $ 17,933 |
12 months or more | 61,541 | 174,791 |
Total | 90,112 | 192,724 |
Unrealized Losses | ||
Less than 12 months | (100) | (80) |
12 months or more | (781) | (4,416) |
Total | (881) | (4,496) |
U.S. Treasury | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 1,952 |
Total | 0 | 1,952 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | (32) |
Total | 0 | (32) |
U.S. government and federal agency obligations | ||
Fair Value | ||
Less than 12 months | 6,310 | 0 |
12 months or more | 1,913 | 9,966 |
Total | 8,223 | 9,966 |
Unrealized Losses | ||
Less than 12 months | (25) | 0 |
12 months or more | (5) | (269) |
Total | (30) | (269) |
Government sponsored enterprises | ||
Fair Value | ||
Less than 12 months | 4,539 | 1,997 |
12 months or more | 8,466 | 33,346 |
Total | 13,005 | 35,343 |
Unrealized Losses | ||
Less than 12 months | (6) | (3) |
12 months or more | (32) | (469) |
Total | (38) | (472) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 9,098 | 5,851 |
12 months or more | 2,891 | 28,832 |
Total | 11,989 | 34,683 |
Unrealized Losses | ||
Less than 12 months | (45) | (16) |
12 months or more | (16) | (485) |
Total | (61) | (501) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 8,624 | 10,085 |
12 months or more | 46,968 | 99,321 |
Total | 55,592 | 109,406 |
Unrealized Losses | ||
Less than 12 months | (24) | (61) |
12 months or more | (545) | (3,049) |
Total | (569) | (3,110) |
Other debt securities | ||
Fair Value | ||
Less than 12 months | 0 | |
12 months or more | 0 | |
Total | 0 | |
Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or more | 0 | |
Total | 0 | |
Bank issued trust preferred securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or more | 1,303 | 1,374 |
Total | 1,303 | 1,374 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or more | (183) | (112) |
Total | $ (183) | $ (112) |
Investment Securities - Other (
Investment Securities - Other (Details) $ in Thousands | Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Investment Securities | ||
Number of securities consisted in portfolio | security | 314 | 366 |
Number of securities in loss position | security | 144 | |
Number of Positions for unrealized losses | security | 317 | |
Aggregate fair value of securities in loss position | $ | $ 90,112 | $ 192,724 |
Loss position for 12 months or longer | $ | 61,541 | 174,791 |
Aggregate unrealized loss included in accumulated other comprehensive income (loss) | $ | $ 881 | $ 4,496 |
Investment Securities - Compone
Investment Securities - Components of Investment Securities Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Available for sale securities: | ||||
Gains realized on sales | $ 6 | $ 47 | $ 6 | $ 253 |
Losses realized on sales | (46) | 0 | (46) | |
Other-than-temporary impairment recognized | 0 | 0 | ||
Other investment securities: | ||||
Fair value adjustments, net | 0 | 3 | 3 | |
Investment securities (losses) gains, net | (40) | 50 | (40) | 256 |
Proceeds from sale of U S treasury securities | $ 21,500 | $ 25,400 | $ 21,503 | $ 77,168 |
Intangible Assets - Mortgage Se
Intangible Assets - Mortgage Servicing Rights (Details) - Mortgage servicing rights (MSRs) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Mortgage Servicing Rights | |||||
Mortgage loans serviced for others | $ 270,800,000 | $ 282,900,000 | $ 270,800,000 | $ 282,900,000 | $ 279,900,000 |
Mortgage loan servicing fees reported as non-interest income | $ 205,000 | $ 201,000 | $ 581,000 | $ 614,000 |
Intangible Assets - Changes in
Intangible Assets - Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Changes in mortgage servicing rights | |||||
Balance at beginning of period | $ 2,931 | ||||
Changes in fair value: | |||||
Balance at end of period | $ 2,575 | 2,575 | |||
Mortgage servicing rights (MSRs) | |||||
Changes in mortgage servicing rights | |||||
Balance at beginning of period | 2,657 | $ 2,813 | 2,931 | $ 2,713 | |
Originated mortgage servicing rights | 88 | 66 | 187 | 198 | |
Changes in fair value: | |||||
Due to changes in model inputs and assumptions | [1] | (77) | 70 | (318) | 203 |
Other changes in fair value | [2] | (93) | (78) | (225) | (243) |
Total changes in fair value | (170) | (8) | (543) | (40) | |
Balance at end of period | $ 2,575 | $ 2,871 | $ 2,575 | $ 2,871 | |
[1] | The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. | ||||
[2] | Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time. |
Intangible Assets - FV Assumpti
Intangible Assets - FV Assumptions (Details) - Mortgage servicing rights (MSRs) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Assumptions used in estimating the fair value of mortgage service rights | ||
Weighted average constant prepayment rate | 13.27% | 9.36% |
Weighted average note rate | 3.95% | 3.92% |
Weighted average discount rate | 8.75% | 10.36% |
Weighted average expected life (in years) | 4 years 9 months 18 days | 6 years 1 month 6 days |
Federal funds purchased and s_3
Federal funds purchased and securities sold under agreements to repurchase - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Federal funds purchased and securities sold under agreements to repurchase | ||
Federal funds purchased | $ 0 | $ 8,000 |
Repurchase agreements | 27,191 | 16,647 |
Total | $ 27,191 | $ 24,647 |
Federal funds purchased and s_4
Federal funds purchased and securities sold under agreements to repurchase - Repurchase Agreements - Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | $ 27,191 | $ 16,647 |
U.S. Treasury | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 756 | 1,464 |
Government sponsored enterprises | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 9,364 | 12,976 |
Asset-backed securities | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 17,071 | 2,207 |
Overnight and continuous | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 27,191 | 16,647 |
Overnight and continuous | U.S. Treasury | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 756 | 1,464 |
Overnight and continuous | Government sponsored enterprises | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 9,364 | 12,976 |
Overnight and continuous | Asset-backed securities | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 17,071 | 2,207 |
Less than 90 days | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | U.S. Treasury | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | Government sponsored enterprises | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | Asset-backed securities | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | U.S. Treasury | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | Government sponsored enterprises | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | Asset-backed securities | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | $ 0 | $ 0 |
Leases - Other (Details)
Leases - Other (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases | ||||
Operating ROU assets | $ 2,300,000 | $ 2,300,000 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | ||
Operating lease liabilities | $ 2,285,000 | $ 2,285,000 | ||
Weighted-average remaining lease term (in years) | 8 years 8 months 12 days | 8 years 8 months 12 days | ||
Weighted-average discount rate (as a percent) | 4.00% | 4.00% | ||
Operating lease cost | $ 86,000 | $ 202,000 | ||
Short-term operating lease expense | $ 20,000 | $ 41,000 | $ 127,000 | |
Short-term operating lease expense | $ 71,000 | |||
Minimum | ||||
Leases | ||||
Remaining lease terms (in years) | 1 year | |||
Maximum | ||||
Leases | ||||
Remaining lease terms (in years) | 10 years |
Leases - Maturities of remainin
Leases - Maturities of remaining operating lease liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Maturity of remaining operating lease liabilities: | |
2019 (excluding nine months ending September 30, 2019) | $ 83 |
2020 | 334 |
2021 | 317 |
2022 | 310 |
2023 | 312 |
Thereafter | 1,345 |
Total lease payments | 2,701 |
Less imputed interest | (416) |
Total lease liabilities, as reported | $ 2,285 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Taxes | |||||
Federal corporate income tax rate (as a percent) | 19.80% | 12.60% | 19.30% | 11.80% | |
Pre-tax gain on sale of branch | $ 2.2 | ||||
Income tax rate without impact of Tax Cuts and Jobs Act (as a percent) | 18.80% | 17.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | $ (6,099) | ||||
Total other comprehensive income (loss) | $ 327 | $ (892) | 3,435 | $ (2,964) | |
Balance at end of period | (2,664) | (2,664) | |||
Unrealized Gain (Loss) on Securities | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | [1] | (3,455) | (2,500) | ||
Other comprehensive (loss) income, before reclassifications | [1] | 4,250 | (3,915) | ||
Amounts reclassified from accumulated other comprehensive (loss) income | [1] | 40 | 0 | ||
Other comprehensive (loss) income, before tax | [1] | 4,290 | (3,915) | ||
Income tax expense (benefit) | [1] | (901) | 822 | ||
Total other comprehensive income (loss) | [1] | 3,389 | (3,093) | ||
Balance at end of period | [1] | (66) | (5,593) | (66) | (5,593) |
Unrecognized Net Pension and Postretirement Costs | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | [2] | (2,644) | (3,162) | ||
Other comprehensive (loss) income, before reclassifications | [2] | 58 | 164 | ||
Amounts reclassified from accumulated other comprehensive (loss) income | [2] | 0 | |||
Other comprehensive (loss) income, before tax | [2] | 58 | 164 | ||
Income tax expense (benefit) | [2] | (12) | (35) | ||
Total other comprehensive income (loss) | [2] | 46 | 129 | ||
Balance at end of period | [2] | (2,598) | (3,033) | (2,598) | (3,033) |
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Balance at beginning of period | (6,099) | (5,662) | |||
Other comprehensive (loss) income, before reclassifications | 4,308 | (3,751) | |||
Amounts reclassified from accumulated other comprehensive (loss) income | 40 | 0 | |||
Other comprehensive (loss) income, before tax | 4,348 | (3,751) | |||
Income tax expense (benefit) | (913) | 787 | |||
Total other comprehensive income (loss) | 327 | (892) | 3,435 | (2,964) | |
Balance at end of period | $ (2,664) | $ (8,626) | $ (2,664) | $ (8,626) | |
[1] | The pre-tax amounts reclassified from accumulated other comprehensive loss are included in investment securities (loss) gain, net in the consolidated statements of income. | ||||
[2] | The pre-tax amounts reclassified from accumulated other comprehensive loss are included in the computation of net periodic pension cost |
Employee Benefit Plans - Expens
Employee Benefit Plans - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of employee benefits charged to operating expenses | ||||
Payroll taxes | $ 256 | $ 261 | $ 871 | $ 913 |
Medical plans | 432 | 490 | 1,359 | 1,650 |
401k match and profit sharing | 349 | 261 | 929 | 684 |
Periodic pension cost | 358 | 470 | 1,073 | 1,280 |
Other | 15 | 12 | 40 | 37 |
Total employee benefits | $ 1,410 | $ 1,494 | $ 4,272 | $ 4,564 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Supplemental Executive Retirement Plan | |||
Defined Benefit Plan Disclosure | |||
Accrued liability | $ 560,000 | $ 560,000 | $ 320,000 |
Accrued expense | $ 80,000 | $ 240,000 | $ 320,000 |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Percentage of employer match | 3.00% | ||
Defined benefit plan contributions by employer percent | 6.00% | ||
Contribution to defined benefit plan | $ 1,600,000 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Components of net pension cost | |||||
Net periodic pension cost for the three and nine months ended September 30, (actual) | $ 358 | $ 470 | $ 1,073 | $ 1,280 | |
Pension Benefits | |||||
Components of net pension cost | |||||
Service cost - benefits earned during the year | 1,431 | 1,707 | |||
Interest costs on projected benefit obligations | [1] | 1,168 | 1,037 | ||
Expected return on plan assets | [1] | (1,467) | (1,327) | ||
Expected administrative expenses | [1] | 122 | 93 | ||
Amortization of prior service cost | [1] | 79 | 79 | ||
Amortization of unrecognized net loss | [1] | 0 | 140 | ||
Net periodic pension cost | 1,333 | 1,729 | |||
Net periodic pension cost for the three and nine months ended September 30, (actual) | $ 358 | $ 470 | $ 1,073 | $ 1,280 | |
[1] | The components of net periodic pension cost other than the service cost component are included in other non-interest expense. |
Earnings per Share - Stock Divi
Earnings per Share - Stock Dividend (Details) | Jul. 01, 2019 |
Earnings Per Share | |
Dividends Payable, Date to be Paid | Jul. 1, 2019 |
Special stock dividend, rate percent | 4.00% |
Special stock dividend, record date | Jun. 15, 2019 |
Earnings per Share - Components
Earnings per Share - Components (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per share: | ||||
Net income available to shareholders | $ 3,860 | $ 3,098 | $ 12,046 | $ 8,095 |
Average shares outstanding | 6,276,236 | 6,264,200 | 6,276,236 | 6,265,290 |
Basic earnings per share (in dollars per share) | $ 0.62 | $ 0.49 | $ 1.92 | $ 1.29 |
Diluted earnings per share: | ||||
Net income available to shareholders | $ 3,860 | $ 3,098 | $ 12,046 | $ 8,095 |
Average shares outstanding | 6,276,236 | 6,264,200 | 6,276,236 | 6,265,290 |
Effect of dilutive stock options | 0 | 6,617 | 0 | 6,740 |
Average shares outstanding including dilutive stock options | 6,276,236 | 6,270,817 | 6,276,236 | 6,272,030 |
Diluted earnings per share (in dollars per share) | $ 0.62 | $ 0.49 | $ 1.92 | $ 1.29 |
Earnings per Share - Anti-dilut
Earnings per Share - Anti-dilutive (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Option shares | ||||
Summary of anti-dilutive shares | ||||
Anti-dilutive shares | 0 | 0 | 0 | 0 |
Earnings per Share - Repurchase
Earnings per Share - Repurchase Program (Details) $ in Millions | Sep. 18, 2019USD ($) |
Repurchase Program | |
Earnings Per Share | |
Value of shares authorized for repurchase | $ 5 |
Fair Value Measurements - Mortg
Fair Value Measurements - Mortgage Servicing Rights - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Available for sale debt securities, fair value | $ 181,270 | $ 218,205 |
Mortgage servicing rights, fair value | 2,575 | 2,931 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Available for sale debt securities, fair value | 995 | 1,952 |
Mortgage servicing rights, fair value | 0 | 0 |
Assets, Total | 63,239 | 62,456 |
Other Observable Inputs (Level 2) | ||
Assets: | ||
Available for sale debt securities, fair value | 180,275 | 216,253 |
Mortgage servicing rights, fair value | 0 | 0 |
Assets, Total | 188,857 | 224,458 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Mortgage servicing rights, fair value | 2,575 | 2,931 |
Assets, Total | 1,135,410 | 1,117,934 |
Recurring | ||
Assets: | ||
Assets, Total | 183,858 | 221,148 |
Recurring | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 995 | 1,952 |
Recurring | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 8,465 | 9,966 |
Recurring | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 22,798 | 43,335 |
Recurring | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 29,424 | 40,386 |
Recurring | Mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 115,234 | 118,192 |
Recurring | Other debt securities | ||
Assets: | ||
Available for sale debt securities, fair value | 3,051 | 3,000 |
Recurring | Bank issued trust preferred securities | ||
Assets: | ||
Available for sale debt securities, fair value | 1,303 | 1,374 |
Recurring | Equity securities | ||
Assets: | ||
Available for sale debt securities, fair value | 13 | 12 |
Recurring | Mortgage servicing rights (MSRs) | ||
Assets: | ||
Mortgage servicing rights, fair value | 2,575 | 2,931 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Assets, Total | 1,008 | 1,964 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 995 | 1,952 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other debt securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Bank issued trust preferred securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets: | ||
Available for sale debt securities, fair value | 13 | 12 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights (MSRs) | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | ||
Assets: | ||
Assets, Total | 180,275 | 216,253 |
Recurring | Other Observable Inputs (Level 2) | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 8,465 | 9,966 |
Recurring | Other Observable Inputs (Level 2) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 22,798 | 43,335 |
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 29,424 | 40,386 |
Recurring | Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 115,234 | 118,192 |
Recurring | Other Observable Inputs (Level 2) | Other debt securities | ||
Assets: | ||
Available for sale debt securities, fair value | 3,051 | 3,000 |
Recurring | Other Observable Inputs (Level 2) | Bank issued trust preferred securities | ||
Assets: | ||
Available for sale debt securities, fair value | 1,303 | 1,374 |
Recurring | Other Observable Inputs (Level 2) | Equity securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | Mortgage servicing rights (MSRs) | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Assets, Total | 2,575 | 2,931 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Government sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Other debt securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Bank issued trust preferred securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights (MSRs) | ||
Assets: | ||
Mortgage servicing rights, fair value | $ 2,575 | $ 2,931 |
Fair Value Measurements - Mor_2
Fair Value Measurements - Mortgage Servicing Rights - Level 3 (Details) - Recurring - Significant Unobservable Inputs (Level 3) - Mortgage servicing rights (MSRs) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair value of assets | ||||
Balance at beginning of period | $ 2,657 | $ 2,813 | $ 2,931 | $ 2,713 |
Total (losses) or gains (realized/unrealized): Included in earnings | (170) | (8) | (543) | (40) |
Total (losses) or gains (realized/unrealized): Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issues | 88 | 66 | 187 | 198 |
Settlements | 0 | 0 | 0 | 0 |
Balance at end of period | $ 2,575 | $ 2,871 | $ 2,575 | $ 2,871 |
Fair Value Measurements - Mor_3
Fair Value Measurements - Mortgage Servicing Rights - Other (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value Measurements | |||||
Impaired loans with a specific allowance | $ 5,618,000 | $ 5,618,000 | $ 6,385,000 | ||
Specific allowance related to impaired loans | 708,000 | 708,000 | $ 1,194,000 | ||
Collateral dependent impaired loans | |||||
Fair Value Measurements | |||||
Impaired loans with a specific allowance | 2,900,000 | $ 4,200,000 | 2,900,000 | $ 4,200,000 | |
Specific allowance related to impaired loans | 398,000 | 891,000 | 398,000 | 891,000 | |
Impaired financing receivable charge offs | $ 77,000 | $ 53,000 | $ 204,000 | $ 303,000 |
Fair Value Measurements - Other
Fair Value Measurements - Other Real Estate Owned and Repossessed Assets (Details) - Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total Fair Value | ||||
Fair Value Measurements | ||||
Impaired loans | $ 2,480 | $ 3,262 | $ 2,480 | $ 3,262 |
Other real estate and repossessed assets | 12,878 | 13,373 | 12,878 | 13,373 |
Total Fair Value | Commercial, financial, and agricultural | ||||
Fair Value Measurements | ||||
Impaired loans | 529 | 1,549 | 529 | 1,549 |
Total Fair Value | Commercial real estate | Construction | ||||
Fair Value Measurements | ||||
Impaired loans | 145 | 158 | 145 | 158 |
Total Fair Value | Commercial real estate | Mortgages | ||||
Fair Value Measurements | ||||
Impaired loans | 860 | 399 | 860 | 399 |
Total Fair Value | Residential real estate | Mortgages | ||||
Fair Value Measurements | ||||
Impaired loans | 933 | 1,156 | 933 | 1,156 |
Total Fair Value | Installment and other consumer | ||||
Fair Value Measurements | ||||
Impaired loans | 13 | 0 | 13 | 0 |
Total Gains (Losses) | ||||
Fair Value Measurements | ||||
Gains (losses) on impaired loans | (77) | (53) | (204) | (303) |
Gains (losses) on other real estate owned and repossessed assets | 10 | (3) | (166) | (29) |
Total Gains (Losses) | Commercial, financial, and agricultural | ||||
Fair Value Measurements | ||||
Gains (losses) on impaired loans | (22) | (21) | (132) | (187) |
Total Gains (Losses) | Commercial real estate | Construction | ||||
Fair Value Measurements | ||||
Gains (losses) on impaired loans | 0 | 0 | 0 | (27) |
Total Gains (Losses) | Commercial real estate | Mortgages | ||||
Fair Value Measurements | ||||
Gains (losses) on impaired loans | (6) | 0 | (15) | (20) |
Total Gains (Losses) | Residential real estate | Mortgages | ||||
Fair Value Measurements | ||||
Gains (losses) on impaired loans | (45) | (32) | (45) | (44) |
Total Gains (Losses) | Installment and other consumer | ||||
Fair Value Measurements | ||||
Gains (losses) on impaired loans | (4) | 0 | (12) | (25) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Other real estate and repossessed assets | 0 | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial, financial, and agricultural | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | Construction | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | Mortgages | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | Mortgages | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Installment and other consumer | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Other Observable Inputs (Level 2) | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Other real estate and repossessed assets | 0 | 0 | 0 | 0 |
Other Observable Inputs (Level 2) | Commercial, financial, and agricultural | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Other Observable Inputs (Level 2) | Commercial real estate | Construction | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Other Observable Inputs (Level 2) | Commercial real estate | Mortgages | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Other Observable Inputs (Level 2) | Residential real estate | Mortgages | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Other Observable Inputs (Level 2) | Installment and other consumer | ||||
Fair Value Measurements | ||||
Impaired loans | 0 | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||||
Fair Value Measurements | ||||
Impaired loans | 2,480 | 3,262 | 2,480 | 3,262 |
Other real estate and repossessed assets | 12,878 | 13,373 | 12,878 | 13,373 |
Significant Unobservable Inputs (Level 3) | Commercial, financial, and agricultural | ||||
Fair Value Measurements | ||||
Impaired loans | 529 | 1,549 | 529 | 1,549 |
Significant Unobservable Inputs (Level 3) | Commercial real estate | Construction | ||||
Fair Value Measurements | ||||
Impaired loans | 145 | 158 | 145 | 158 |
Significant Unobservable Inputs (Level 3) | Commercial real estate | Mortgages | ||||
Fair Value Measurements | ||||
Impaired loans | 860 | 399 | 860 | 399 |
Significant Unobservable Inputs (Level 3) | Residential real estate | Mortgages | ||||
Fair Value Measurements | ||||
Impaired loans | 933 | 1,156 | 933 | 1,156 |
Significant Unobservable Inputs (Level 3) | Installment and other consumer | ||||
Fair Value Measurements | ||||
Impaired loans | $ 13 | $ 0 | $ 13 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 22,856 | $ 23,687 |
Federal funds sold and overnight interest-bearing deposits | 21,559 | 18,396 |
Certificates of deposit in other banks | 11,601 | 12,247 |
Available for sale securities | 181,270 | 218,205 |
Mortgage servicing rights | 2,575 | 2,931 |
Accrued interest receivable | 6,215 | 6,162 |
Deposits: | ||
Non-interest bearing demand | 284,452 | 262,857 |
Savings, interest checking and money market | 550,350 | 614,040 |
Operating lease liabilities | 2,285 | |
Accrued interest payable | 1,020 | 1,035 |
Carrying Amount | ||
Assets: | ||
Cash and due from banks | 22,856 | 23,687 |
Federal funds sold and overnight interest-bearing deposits | 21,559 | 18,396 |
Certificates of deposit in other banks | 11,601 | 12,247 |
Available for sale securities | 181,270 | 218,205 |
Other investment securities | 6,210 | 5,675 |
Loans, net | 1,139,340 | 1,134,975 |
Mortgage servicing rights | 2,575 | 2,931 |
Cash surrender value - life insurance | 2,385 | 2,542 |
Accrued interest receivable | 6,215 | 6,162 |
Assets, Total | 1,394,011 | 1,424,820 |
Deposits: | ||
Non-interest bearing demand | 284,452 | 262,857 |
Savings, interest checking and money market | 550,350 | 614,040 |
Time deposits | 302,605 | 321,571 |
Federal funds purchased and securities sold under agreements to repurchase | 27,191 | 24,647 |
Operating lease liabilities | 2,285 | |
Federal Home Loan Bank advances and other borrowings | 106,980 | 95,153 |
Subordinated notes | 49,486 | 49,486 |
Accrued interest payable | 1,020 | 1,035 |
Liabilities, Total | 1,324,369 | 1,368,789 |
Total Fair Value | ||
Assets: | ||
Cash and due from banks | 22,856 | 23,687 |
Federal funds sold and overnight interest-bearing deposits | 21,559 | 18,396 |
Certificates of deposit in other banks | 11,601 | 12,247 |
Available for sale securities | 181,270 | 218,205 |
Other investment securities | 6,210 | 5,675 |
Loans, net | 1,132,835 | 1,115,003 |
Mortgage servicing rights | 2,575 | 2,931 |
Cash surrender value - life insurance | 2,385 | 2,542 |
Accrued interest receivable | 6,215 | 6,162 |
Assets, Total | 1,387,506 | 1,404,848 |
Deposits: | ||
Non-interest bearing demand | 284,452 | 262,857 |
Savings, interest checking and money market | 550,350 | 614,040 |
Time deposits | 303,092 | 318,949 |
Federal funds purchased and securities sold under agreements to repurchase | 27,191 | 24,647 |
Operating lease liabilities | 2,285 | |
Federal Home Loan Bank advances and other borrowings | 93,751 | 94,326 |
Subordinated notes | 43,393 | 45,749 |
Accrued interest payable | 1,020 | 1,035 |
Liabilities, Total | 1,305,534 | 1,361,603 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and due from banks | 22,856 | 23,687 |
Federal funds sold and overnight interest-bearing deposits | 21,559 | 18,396 |
Certificates of deposit in other banks | 11,601 | 12,247 |
Available for sale securities | 995 | 1,952 |
Other investment securities | 13 | 12 |
Loans, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Cash surrender value - life insurance | 0 | 0 |
Accrued interest receivable | 6,215 | 6,162 |
Assets, Total | 63,239 | 62,456 |
Deposits: | ||
Non-interest bearing demand | 284,452 | 262,857 |
Savings, interest checking and money market | 550,350 | 614,040 |
Time deposits | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase | 27,191 | 24,647 |
Operating lease liabilities | 0 | |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 1,020 | 1,035 |
Liabilities, Total | 863,013 | 902,579 |
Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Available for sale securities | 180,275 | 216,253 |
Other investment securities | 6,197 | 5,663 |
Loans, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Cash surrender value - life insurance | 2,385 | 2,542 |
Accrued interest receivable | 0 | 0 |
Assets, Total | 188,857 | 224,458 |
Deposits: | ||
Non-interest bearing demand | 0 | 0 |
Savings, interest checking and money market | 0 | 0 |
Time deposits | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 |
Operating lease liabilities | 2,285 | |
Federal Home Loan Bank advances and other borrowings | 93,751 | 94,326 |
Subordinated notes | 43,393 | 45,749 |
Accrued interest payable | 0 | 0 |
Liabilities, Total | 139,429 | 140,075 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Available for sale securities | 0 | 0 |
Other investment securities | 0 | 0 |
Loans, net | 1,132,835 | 1,115,003 |
Mortgage servicing rights | 2,575 | 2,931 |
Cash surrender value - life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Assets, Total | 1,135,410 | 1,117,934 |
Deposits: | ||
Non-interest bearing demand | 0 | 0 |
Savings, interest checking and money market | 0 | 0 |
Time deposits | 303,092 | 318,949 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 |
Operating lease liabilities | 0 | |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Liabilities, Total | $ 303,092 | $ 318,949 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 325,890 | $ 351,968 |
Commitments to extend credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | 246,058 | 267,314 |
Commitments to originate residential first and second mortgage loans | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | 9,582 | 1,759 |
Standby letters of credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 70,250 | $ 82,895 |
Commitments and Contingencies_2
Commitments and Contingencies - Other (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Commitments and Contingencies | |
Remaining term of conditional commitment | 1 month |
Maximum | |
Commitments and Contingencies | |
Remaining term of conditional commitment | 5 years |