Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Entity Registrant Name | QCR HOLDINGS INC | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Current Fiscal Year End Date | --12-31 | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 15,794,839 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000906465 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 91,671 | $ 85,523 |
Federal funds sold | 9,300 | 26,398 |
Interest-bearing deposits at financial institutions | 187,963 | 133,198 |
Securities held to maturity, at amortized cost | 343,477 | 401,913 |
Securities available for sale, at fair value | 211,932 | 261,056 |
Total securities | 555,409 | 662,969 |
Loans receivable held for sale | 8,890 | 1,295 |
Loans/leases receivable held for investment | 3,601,380 | 3,731,459 |
Gross loans/leases receivable | 3,610,270 | 3,732,754 |
Less allowance for estimated losses on loans/leases | (36,116) | (39,847) |
Net loans/leases receivable | 3,574,154 | 3,692,907 |
Bank-owned life insurance | 58,367 | 67,783 |
Premises and equipment, net | 74,486 | 75,582 |
Restricted investment securities | 24,562 | 25,689 |
Other real estate owned, net | 4,248 | 9,378 |
Goodwill | 77,748 | 77,832 |
Intangibles | 15,529 | 17,450 |
Assets held for sale | 465,547 | |
Other assets | 153,398 | 75,001 |
Total assets | 5,292,382 | 4,949,710 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing | 782,232 | 791,102 |
Interest-bearing | 3,020,009 | 3,185,929 |
Total deposits | 3,802,241 | 3,977,031 |
Short-term borrowings | 18,526 | 28,774 |
Federal Home Loan Bank advances | 195,800 | 266,492 |
Other borrowings | 67,250 | |
Subordinated notes | 68,334 | 4,782 |
Junior subordinated debentures | 37,797 | 37,670 |
Liabilities held for sale | 470,530 | |
Other liabilities | 179,411 | 94,573 |
Total liabilities | 4,772,639 | 4,476,572 |
Stockholders' Equity: | ||
Preferred stock, $1 par value; shares authorized 250,000 September 2019 and December 2018 - no shares issued or outstanding | ||
Common stock, $1 par value; shares authorized 20,000,000 September 2019 - 15,790,462 shares issued and outstanding December 2018 - 15,718,208 shares issued and outstanding | 15,790 | 15,718 |
Additional paid-in capital | 273,475 | 270,761 |
Retained earnings | 230,892 | 192,203 |
Accumulated other comprehensive income (loss): | ||
Securities available for sale | 3,832 | (4,268) |
Derivatives | (4,246) | (1,276) |
Total stockholders' equity | 519,743 | 473,138 |
Total liabilities and stockholders' equity | $ 5,292,382 | $ 4,949,710 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 15,790,462 | 15,718,208 |
Common stock, outstanding (in shares) | 15,790,462 | 15,718,208 |
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 and dividend income: | ||||
Loans/leases, including fees | $ 50,406 | $ 44,034 | $ 143,488 | $ 113,655 |
Securities: | ||||
Taxable | 1,682 | 1,522 | 5,026 | 4,671 |
Nontaxable | 3,443 | 3,517 | 10,461 | 10,101 |
Interest-bearing deposits at financial institutions | 951 | 324 | 3,042 | 749 |
Restricted investment securities | 293 | 329 | 891 | 776 |
Federal funds sold | 42 | 105 | 191 | 223 |
Total interest and dividend income | 56,817 | 49,831 | 163,099 | 130,175 |
Interest expense: | ||||
Deposits | 13,394 | 8,723 | 39,697 | 20,132 |
Short-term borrowings | 97 | 78 | 275 | 186 |
Federal Home Loan Bank advances | 1,023 | 1,422 | 2,685 | 3,637 |
Other borrowings | 705 | 512 | 1,875 | |
Subordinated notes | 1,003 | 70 | 2,561 | 70 |
Junior subordinated debentures | 581 | 519 | 1,729 | 1,474 |
Total interest expense | 16,098 | 11,517 | 47,459 | 27,374 |
Net interest income | 40,719 | 38,314 | 115,640 | 102,801 |
Provision for loan/lease losses | 2,012 | 6,206 | 6,087 | 11,046 |
Net interest income after provision for loan/lease losses | 38,707 | 32,108 | 109,553 | 91,755 |
Noninterest income: | ||||
Revenue | 76,723 | 58,640 | 212,063 | 156,437 |
Gains on sales of residential real estate loans, net | 890 | 337 | 1,748 | 539 |
Gains on sales of government guaranteed portions of loans, net | 519 | 46 | 589 | 405 |
Swap fee income | 9,797 | 1,110 | 20,886 | 3,718 |
Securities losses, net | (3) | (56) | ||
Earnings on bank-owned life insurance | 489 | 474 | 1,441 | 1,292 |
Other | 1,204 | 890 | 3,562 | 2,822 |
Total noninterest income | 19,906 | 8,809 | 48,964 | 26,262 |
Noninterest expense: | ||||
Salaries and employee benefits | 24,215 | 17,433 | 67,843 | 49,215 |
Occupancy and equipment expense | 3,860 | 3,318 | 11,087 | 9,517 |
Professional and data processing fees | 4,030 | 2,396 | 9,811 | 8,016 |
Acquisition costs | 1,292 | 1,799 | ||
Post-acquisition compensation, transition and integration costs | 884 | 494 | 1,727 | 659 |
FDIC insurance, other insurance and regulatory fees | 542 | 933 | 2,432 | 2,529 |
Loan/lease expense | 221 | 369 | 748 | 920 |
Net cost of (income from) and gains/losses on operations of other real estate | 2,078 | (50) | 3,557 | 11 |
Advertising and marketing | 1,056 | 984 | 2,878 | 2,430 |
Bank service charges | 502 | 462 | 1,494 | 1,368 |
Losses on debt extinguishment, net | 148 | 148 | ||
Correspondent banking expense | 209 | 205 | 619 | 614 |
Amortization of intangibles | 560 | 542 | 1,706 | 1,151 |
Other | 1,640 | 2,122 | 4,891 | 4,504 |
Total noninterest expense | 39,945 | 30,500 | 108,941 | 82,733 |
Net income before income taxes | 18,668 | 10,417 | 49,576 | 35,284 |
Federal and state income tax expense | 3,573 | 1,608 | 8,059 | 5,480 |
Net income | $ 15,095 | $ 8,809 | $ 41,517 | $ 29,804 |
Basic earnings per common share (in dollars per share) | $ 0.96 | $ 0.56 | $ 2.64 | $ 2.06 |
Diluted earnings per common share (in dollars per share) | $ 0.94 | $ 0.55 | $ 2.60 | $ 2.02 |
Weighted average common shares outstanding (in shares) | 15,739,430 | 15,625,123 | 15,715,788 | 14,477,783 |
Weighted average common and common equivalent shares outstanding (in shares) | 15,976,742 | 15,922,324 | 15,946,020 | 14,786,777 |
Cash dividends declared per common share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
Trust department fees | ||||
Noninterest income: | ||||
Revenue | $ 2,340 | $ 2,196 | $ 7,194 | $ 6,491 |
Investment advisory and management services | ||||
Noninterest income: | ||||
Revenue | 1,782 | 1,059 | 5,406 | 3,069 |
Deposit service fees | ||||
Noninterest income: | ||||
Revenue | 1,813 | 1,656 | 5,025 | 4,797 |
Debit card fees | ||||
Noninterest income: | ||||
Revenue | 886 | 846 | 2,591 | 2,456 |
Correspondent banking fees | ||||
Noninterest income: | ||||
Revenue | $ 189 | $ 195 | $ 578 | $ 673 |
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 | |
Net income | $ 15,095 | $ 8,809 | $ 41,517 | $ 29,804 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) arising during the period before tax | 1,827 | (1,652) | 10,639 | (8,531) |
Less reclassification adjustment for losses included in net income before tax | (3) | (56) | ||
Unrealized gains (losses) on securities available for sale | 1,830 | (1,652) | 10,695 | (7,676) |
Unrealized holding losses arising during the period before tax | (1,159) | 577 | (4,101) | 404 |
Less reclassification adjustment for caplet amortization before tax | (187) | (291) | (90) | |
Unrealized gains (losses) on derivatives | (1,159) | 764 | (3,810) | 494 |
Unrealized holding gains (losses) arising during the period before tax on securities held for sale | 48 | 48 | ||
Unrealized holding losses arising during the period before tax on derivatives held for sale | (31) | (31) | ||
Less reclassification adjustment for caplet amortization before tax | (80) | (80) | ||
Unrealized gains (losses) on assets held for sale | 97 | 97 | ||
Other comprehensive income (loss), before tax | 768 | (888) | 6,982 | (7,182) |
Tax expense (benefit) | 224 | (276) | 1,852 | (2,034) |
Other comprehensive income (loss), net of tax | 544 | (612) | 5,130 | (5,148) |
Comprehensive income | $ 15,639 | $ 8,197 | $ 46,647 | 24,656 |
ASU 2016-01 | ||||
Other comprehensive income (loss): | ||||
Less reclassification adjustment for adoption of ASU 2016-01 | $ 855 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2017 | $ 13,918 | $ 189,077 | $ 151,963 | $ (1,671) | $ 353,287 |
Net income | 10,550 | 10,550 | |||
Other comprehensive income (loss), net of tax | (3,202) | (3,202) | |||
Impact of adoption of ASU 2016-01 | ASU 2016-01 | 667 | (667) | |||
Common cash dividends declared | (834) | (834) | |||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 3 | 100 | 103 | ||
Issuance of shares of common stock as a result of stock options exercised | 13 | 193 | 206 | ||
Stock-based compensation expense | 496 | 496 | |||
Restricted stock awards - shares of common stock | 7 | (7) | |||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (4) | (174) | (178) | ||
Balance at Mar. 31, 2018 | 13,937 | 189,685 | 162,346 | (5,540) | 360,428 |
Balance at Dec. 31, 2017 | 13,918 | 189,077 | 151,963 | (1,671) | 353,287 |
Net income | 29,804 | ||||
Other comprehensive income (loss), net of tax | (5,148) | ||||
Balance at Sep. 30, 2018 | 15,674 | 269,373 | 179,826 | (7,486) | 457,387 |
Balance at Mar. 31, 2018 | 13,937 | 189,685 | 162,346 | (5,540) | 360,428 |
Net income | 10,445 | 10,445 | |||
Other comprehensive income (loss), net of tax | (1,334) | (1,334) | |||
Common cash dividends declared | (836) | (836) | |||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 6 | 215 | 221 | ||
Issuance of shares of common stock as a result of stock options exercised | 26 | 362 | 388 | ||
Stock-based compensation expense | 292 | 292 | |||
Restricted stock awards - shares of common stock | 4 | (4) | |||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | 1 | (17) | (16) | ||
Balance at Jun. 30, 2018 | 13,974 | 190,533 | 171,955 | (6,874) | 369,588 |
Net income | 8,809 | 8,809 | |||
Other comprehensive income (loss), net of tax | (612) | (612) | |||
Common cash dividends declared | (938) | (938) | |||
Issuance of shares of common stock as a result of the merger, net of issuance cost | 1,699 | 78,832 | 80,531 | ||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 4 | 120 | 124 | ||
Issuance of shares of common stock as a result of stock options exercised | 2 | 32 | 34 | ||
Stock-based compensation expense | 319 | 319 | |||
Restricted stock awards - shares of common stock | 5 | (5) | |||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (10) | (458) | (468) | ||
Balance at Sep. 30, 2018 | 15,674 | 269,373 | 179,826 | (7,486) | 457,387 |
Balance at Dec. 31, 2018 | 15,718 | 270,761 | 192,203 | (5,544) | 473,138 |
Net income | 12,918 | 12,918 | |||
Other comprehensive income (loss), net of tax | 2,344 | 2,344 | |||
Common cash dividends declared | (942) | (942) | |||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 4 | 124 | 128 | ||
Issuance of shares of common stock as a result of stock options exercised | 25 | 263 | 288 | ||
Stock-based compensation expense | 722 | 722 | |||
Restricted stock awards - shares of common stock | 13 | (50) | (37) | ||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (5) | (147) | (152) | ||
Balance at Mar. 31, 2019 | 15,755 | 271,673 | 204,179 | (3,200) | 488,407 |
Balance at Dec. 31, 2018 | 15,718 | 270,761 | 192,203 | (5,544) | 473,138 |
Net income | 41,517 | ||||
Other comprehensive income (loss), net of tax | 5,130 | ||||
Balance at Sep. 30, 2019 | 15,790 | 273,475 | 230,892 | (414) | 519,743 |
Balance at Mar. 31, 2019 | 15,755 | 271,673 | 204,179 | (3,200) | 488,407 |
Net income | 13,504 | 13,504 | |||
Other comprehensive income (loss), net of tax | 2,242 | 2,242 | |||
Common cash dividends declared | (942) | (942) | |||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 11 | 323 | 334 | ||
Issuance of shares of common stock as a result of stock options exercised | 3 | 41 | 44 | ||
Stock-based compensation expense | 719 | 719 | |||
Restricted stock awards - shares of common stock | 5 | (5) | |||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (1) | (7) | (8) | ||
Balance at Jun. 30, 2019 | 15,773 | 272,744 | 216,741 | (958) | 504,300 |
Net income | 15,095 | 15,095 | |||
Other comprehensive income (loss), net of tax | 544 | 544 | |||
Common cash dividends declared | (944) | (944) | |||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 6 | 187 | 193 | ||
Issuance of shares of common stock as a result of stock options exercised | 12 | 144 | 156 | ||
Stock-based compensation expense | 428 | 428 | |||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (1) | (28) | (29) | ||
Balance at Sep. 30, 2019 | $ 15,790 | $ 273,475 | $ 230,892 | $ (414) | $ 519,743 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - USD ($) | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Cash dividends declared per common share (in dollars per share) | $ 0.06 | $ 0.06 | ||||
Common Stock [Member] | ||||||
Cash dividends declared per common share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan (in shares) | 5,674 | 11,346 | 4,446 | 3,205 | 5,728 | 2,669 |
Issuance of shares of common stock as s result of stock options exercised (in shares) | 12,438 | 2,414 | 25,238 | 1,754 | 26,641 | 13,074 |
Restricted stock awards (in shares) | 4,769 | 12,719 | 5,300 | 3,972 | 6,860 | |
Exchange of shares of common stock in connection with stock options exercised and restricted stock vested (in shares) | 589 | 1,032 | 5,169 | 9,853 | 642 | 3,814 |
Common Stock [Member] | Springfield Bancshares | ||||||
Issuance of shares of common stock, net of issuance costs | $ 106,237 | |||||
Issuance of common stock, net of issuance costs, shares (in shares) | 1,699,414 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | $ 41,517 | $ 29,804 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 3,889 | 3,257 | |||
Provision for loan/lease losses | $ 2,012 | $ 6,206 | 6,087 | 11,046 | |
Stock-based compensation expense | 1,869 | 1,106 | |||
Deferred compensation expense accrued | 2,087 | 1,453 | |||
Losses on other real estate owned, net | 3,205 | 49 | |||
Amortization of premiums on securities, net | 1,339 | 1,201 | |||
Securities losses, net | 56 | ||||
Loans originated for sale | (104,824) | (39,923) | |||
Proceeds on sales of loans | 97,916 | 38,954 | |||
Gains on sales of residential real estate loans | (890) | (337) | (1,748) | (539) | |
Gains on sales of government guaranteed portions of loans | (519) | (46) | (589) | (405) | |
Losses on debt extinguishment, net | 148 | 148 | |||
Gains on sales of premises and equipment | (67) | ||||
Amortization of intangibles | 560 | 542 | 1,706 | 1,151 | |
Accretion of acquisition fair value adjustments, net | (3,413) | (2,951) | |||
Increase in cash value of bank-owned life insurance | (1,441) | (1,292) | |||
Increase in other assets | (1,953) | (8,293) | |||
Increase in other liabilities | 336 | 2,254 | |||
Net cash provided by operating activities | 46,120 | 36,872 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Net decrease (increase) in federal funds sold | 17,098 | (2,873) | |||
Net decrease (increase) in interest-bearing deposits at financial institutions | (57,180) | 22,099 | |||
Proceeds from sales of other real estate owned | 840 | 1,288 | |||
Activity in securities portfolio: | |||||
Purchases | (28,119) | (66,420) | |||
Calls, maturities and redemptions | 9,074 | 22,915 | |||
Paydowns | 36,649 | 36,279 | |||
Sales | 33,128 | 1,938 | |||
Activity in restricted investment securities: | |||||
Purchases | (5,682) | (5,352) | |||
Redemptions | 5,006 | 109 | |||
Net increase in loans/leases originated and held for investment | (237,286) | (208,738) | |||
Purchase of premises and equipment | (8,755) | (7,112) | |||
Proceeds from sales of premises and equipment | 146 | ||||
Net cash paid for acquisition | (3,747) | ||||
Net cash (used in) investing activities | (235,081) | (209,614) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net increase in deposit accounts | 276,960 | 82,309 | |||
Net decrease in short-term borrowings | (9,091) | (2,207) | |||
Activity in Federal Home Loan Bank advances: | |||||
Term advances | 25,000 | ||||
Calls and maturities | (35,000) | (27,000) | |||
Net change in short-term and overnight advances | (15,965) | 120,330 | |||
Prepayments | (30,200) | (30,228) | |||
Activity in other borrowings: | |||||
Proceeds from other borrowings | 9,000 | ||||
Calls, maturities and scheduled principal payments | (11,937) | (10,613) | |||
Prepayments | (46,313) | ||||
Paydown of revolving line of credit | (9,000) | ||||
Proceeds from subordinated notes | 63,393 | ||||
Payment of cash dividends on common stock | (2,822) | (2,362) | |||
Proceeds from issuance of common stock, net | 1,143 | 970 | |||
Net cash provided by financing activities | 206,140 | 170,427 | |||
Net increase (decrease) in cash and due from banks | 17,179 | (2,315) | |||
Cash and due from banks, beginning | 85,523 | 75,722 | $ 75,722 | ||
Cash and due from banks, ending | 102,702 | 73,407 | 102,702 | 73,407 | 85,523 |
Cash and due from banks | 91,671 | 73,407 | 91,671 | 73,407 | $ 85,523 |
Cash included in assets held for sale | $ 11,031 | 11,031 | |||
Supplemental disclosure of cash flow information, cash payments (receipts) for: | |||||
Interest | 45,826 | 23,102 | |||
Income/franchise taxes | 769 | 1,100 | |||
Supplemental schedule of noncash investing activities: | |||||
Change in accumulated other comprehensive income, unrealized gains on securities available for sale and derivative instruments, net | 5,130 | (5,148) | |||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (189) | (662) | |||
Transfers of loans to other real estate owned | 1,049 | 46 | |||
Increase (decrease) in the fair value of back-to-back interest rate swap assets and liabilities | 80,760 | (2,441) | |||
Dividends payable | $ 944 | 938 | |||
Transfer of equity securities from securities available for sale to other assets at fair value | 2,614 | ||||
Fair value of assets acquired: | |||||
Cash and due from banks | 4,587 | 4,587 | |||
Interest-bearing deposits at financial institutions | 62,925 | 62,925 | |||
Securities | 4,845 | 4,845 | |||
Loans receivable, net | 477,337 | 477,337 | |||
Bank-owned life insurance | 7,092 | 7,092 | |||
Premises and equipment, net | 6,092 | 6,092 | |||
Restricted investment securities | 3,654 | 3,654 | |||
Intangibles | 8,209 | 8,209 | |||
Other assets | 988 | 988 | |||
Total assets acquired | 575,729 | 575,729 | |||
Fair value of liabilities assumed: | |||||
Deposits | 439,580 | 439,580 | |||
Short-term borrowings | 1,144 | 1,144 | |||
FHLB advances | 73,610 | 73,610 | |||
Other borrowings | 9,544 | 9,544 | |||
Other liabilities | 8,408 | 8,408 | |||
Total liabilities assumed | 532,286 | 532,286 | |||
Net assets acquired | $ 43,443 | 43,443 | |||
Consideration paid: | |||||
Cash paid | 8,334 | ||||
Common stock | 80,637 | ||||
Total consideration paid | 88,971 | ||||
Goodwill | 45,528 | ||||
Springfield Bancshares | |||||
Consideration paid: | |||||
Cash paid | $ 3,747 |
NOTE 1 - SUMMARY OF SIGNIFICANT
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation : The interim unaudited consolidated financial statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended December 31, 2018, included in the Company's Annual Report on Form 10‑K filed with the SEC on March 15, 2019. Accordingly, footnote disclosures, which would substantially duplicate the disclosures contained in the audited consolidated financial statements, have been omitted. The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10‑Q and Rule 10‑01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended September 30, 2019 are not necessarily indicative of the results expected for the year ending December 31, 2019, or for any other period. The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10‑Q. It may be helpful to refer back to this page as you read this report. Allowance: Allowance for estimated losses on loans/leases Guaranty: Guaranty Bankshares, Ltd. AOCI: Accumulated other comprehensive income (loss) Guaranty Bank: Guaranty Bank and Trust Company AFS: Available for sale HTM: Held to maturity ASC: Accounting Standards Codification IB&T: Illinois Bank & Trust ASU: Accounting Standards Update m2: m2 Lease Funds, LLC Bates Companies: Bates Financial Advisors, Inc., Bates NIM: Net interest margin Financial Services, Inc., Bates Securities, Inc. and NPA: Nonperforming asset Bates Financial Group, Inc. NPL: Nonperforming loan BOLI: Bank-owned life insurance OREO: Other real estate owned Caps: Interest rate cap derivatives OTTI: Other-than-temporary impairment CDI: Core deposit intangible PCI: Purchased credit impaired Community National: Community National Bancorporation Provision: Provision for loan/lease losses CRBT: Cedar Rapids Bank & Trust Company QCBT: Quad City Bank & Trust Company CRE: Commercial real estate RB&T: Rockford Bank & Trust Company CSB: Community State Bank ROAA: Return on Average Assets C&I: Commercial and industrial SBA: U.S. Small Business Administration EPS: Earnings per share SEC: Securities and Exchange Commission Exchange Act: Securities Exchange Act of 1934, as SFC Bank: Springfield First Community Bank amended Springfield Bancshares: Springfield Bancshares, Inc. FASB: Financial Accounting Standards Board TA: Tangible assets FDIC: Federal Deposit Insurance Corporation TCE: Tangible common equity FHLB: Federal Home Loan Bank TDRs: Troubled debt restructurings FRB: Federal Reserve Bank of Chicago TEY: Tax equivalent yield GAAP: Generally Accepted Accounting Principles The Company: QCR Holdings, Inc. USDA: U.S. Department of Agriculture The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries which include the accounts of five commercial banks: QCBT, CRBT, CSB, SFC Bank and RB&T. All are state-chartered commercial banks and all are members of the Federal Reserve system. The Company engages in direct financing lease contracts through m2, a wholly-owned subsidiary of QCBT. The Company also engages in wealth management services through its banking subsidiaries and its subsidiaries, the Bates Companies. All material intercompany transactions and balances have been eliminated in consolidation. The acquisition of the Bates Companies, headquartered in Rockford, Illinois, occurred on October 1, 2018. The merger with Springfield Bancshares, the holding company of SFC Bank, headquartered in Springfield, Missouri, occurred on July 1, 2018. The financial results for the periods since acquisition/merger are included in this report. See Note 2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for additional information about the acquisition and merger. On August 13, 2019, the Company entered into a definitive agreement to sell certain assets and liabilities of RB&T, a wholly-owned subsidiary headquartered in Rockford, Illinois, to IB&T, a wholly-owned subsidiary of Heartland Financial USA, Inc. Under the terms of the agreement, IB&T will acquire certain assets and assume certain liabilities for a cash payment. The transaction is subject to approval by federal and state bank regulators and to customary closing conditions. The transaction is expected to close in the fourth quarter of 2019. The assets and liabilities that will be sold are classified as held for sale on the Consolidated Balance Sheet and corresponding footnotes. See Note 2 to the Company’s Consolidated Financial Statements for additional information about the sale. Recent accounting developments : In February 2016, the FASB issued ASU 2016‑02, Leases . Under ASU 2016‑02, lessees will be required to recognize a lease liability measured on a discounted basis and a right-of-use asset for all leases (with the exception of short-term leases). Lessor accounting is largely unchanged under ASU 2016‑02. However, the definition of initial direct costs was updated to include only initial direct costs that are considered incremental. This change in definition will change the manner in which the Company recognizes the costs associated with originating leases. ASU 2016‑02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all entities. The standard was adopted on January 1, 2019 and did not have a significant impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments – Credit Losses . Under the standard, assets measured at amortized costs (including loans, leases and AFS securities) will be presented at the net amount expected to be collected. Rather than the “incurred” model that is currently being utilized, the standard will require the use of a forward-looking approach to recognizing all expected credit losses at the beginning of an asset's life. For public companies, ASU 2016‑13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Companies may choose to early adopt for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of analyzing the impact of adoption on the Company's Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). ASU 2017-04 is intended to simplify goodwill impairment testing by eliminating the second step of the analysis. ASU 2017-04 requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. This guidance is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect this guidance to have a significant impact on its Consolidated Financial Statements. Reclassifications : Certain amounts in the prior year's consolidated financial statements have been reclassified, with no effect on net income or stockholders' equity, to conform with the current period presentation. |
NOTE 2 - ASSETS AND LIABILITIES
NOTE 2 - ASSETS AND LIABILITIES HELD FOR SALE | 9 Months Ended |
Sep. 30, 2019 | |
ASSETS AND LIABILITIES HELD FOR SALE | |
ASSETS AND LIABILITIES HELD FOR SALE | NOTE 2 – ASSETS AND LIABILITIES HELD FOR SALE On August 13, 2019, the Company and RB&T entered into a Purchase and Assumption Agreement (the Agreement) to sell certain assets and liabilities of RB&T, a wholly-owned subsidiary headquartered in Rockford, Illinois, to IB&T, a wholly-owned subsidiary of Heartland Financial USA, Inc. Under the terms of the Agreement, IB&T will acquire certain assets and assume certain liabilities of RB&T for a cash payment. The actual cash payment amount will be determined substantially by the following formula: (i) the “Purchase Price Premium”, plus (ii) the aggregate net book value of the acquired assets, minus (iii) the aggregate book value of the assumed liabilities. The Purchase Price Premium is equal to: (a) 8% of RB&T’s tangible assets, multiplied by (b) 0.345. Based on RB&T’s balance sheet as of September 30, 2019, the Purchase Price Premium would be $14.2 million and the total payment by IB&T to the Company would be $59.7 million. The transaction is subject to approval by federal and state bank regulators and to customary closing conditions. The transaction is expected to close in the fourth quarter of 2019. Assets and liabilities of RB&T classified as held for sale are summarized as follows as of September 30, 2019: As of September 30, 2019 (dollars in thousands) ASSETS Cash and cash equivalents $ 13,446 Securities 66,009 Loans, net 362,011 Other assets 24,081 Assets held for sale $ 465,547 LIABILIITES Deposits $ 451,546 Borrowings 16,157 Other liabilities 2,827 Liabilities held for sale $ 470,530 |
NOTE 3 - INVESTMENT SECURITIES
NOTE 3 - INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
INVESTMENT SECURITIES | NOTE 3 – INVESTMENT SECURITIES The amortized cost and fair value of investment securities as of September 30, 2019 and December 31, 2018 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) September 30, 2019: Securities HTM: Municipal securities $ 342,427 $ 20,122 $ (119) $ 362,430 Other securities 1,050 — (6) 1,044 $ 343,477 $ 20,122 $ (125) $ 363,474 Securities AFS: U.S. govt. sponsored agency securities $ 20,861 $ 470 $ (63) $ 21,268 Residential mortgage-backed and related securities 121,118 2,962 (200) 123,880 Municipal securities 47,259 1,653 (10) 48,902 Other securities 17,711 172 (1) 17,882 $ 206,949 $ 5,257 $ (274) $ 211,932 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2018: Securities HTM: Municipal securities $ 400,863 $ 5,661 $ (6,803) $ 399,721 Other securities 1,050 — (1) 1,049 $ 401,913 $ 5,661 $ (6,804) $ 400,770 Securities AFS: U.S. govt. sponsored agency securities $ 37,150 $ 39 $ (778) $ 36,411 Residential mortgage-backed and related securities 163,698 182 (4,631) 159,249 Municipal securities 59,069 180 (703) 58,546 Other securities 6,754 100 (4) 6,850 $ 266,671 $ 501 $ (6,116) $ 261,056 The Company's HTM municipal securities consist largely of private issues of municipal debt. The large majority of the municipalities are located within the Midwest. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring. The Company's residential mortgage-backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities. The Company has not invested in private mortgage-backed securities or pooled trust preferred securities. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2019 and December 31, 2018, are summarized as follows: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) September 30, 2019: Securities HTM: Municipal securities $ 1,037 $ (1) $ 7,839 $ (118) $ 8,876 $ (119) Other securities 1,044 (6) — — 1,044 (6) $ 2,081 $ (7) $ 7,839 $ (118) $ 9,920 $ (125) Securities AFS: U.S. govt. sponsored agency securities $ 1,618 $ (1) $ 2,318 $ (62) $ 3,936 $ (63) Residential mortgage-backed and related securities 1,194 (1) 20,376 (199) 21,570 (200) Municipal securities 1,686 (3) 723 (7) 2,409 (10) Other securities 248 (1) — — 248 (1) $ 4,746 $ (6) $ 23,417 $ (268) $ 28,163 $ (274) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2018: Securities HTM: Municipal securities $ 114,201 $ (2,187) $ 69,412 $ (4,616) $ 183,613 $ (6,803) Other securities 549 (1) — — 549 (1) $ 114,750 $ (2,188) $ 69,412 $ (4,616) $ 184,162 $ (6,804) Securities AFS: U.S. govt. sponsored agency securities $ 1,565 $ (34) $ 29,605 $ (744) $ 31,170 $ (778) Residential mortgage-backed and related securities 12,810 (148) 133,535 (4,483) 146,345 (4,631) Municipal securities 28,356 (394) 15,932 (309) 44,288 (703) Other securities 4,249 (4) — — 4,249 (4) $ 46,980 $ (580) $ 179,072 $ (5,536) $ 226,052 $ (6,116) At September 30, 2019, the investment portfolio included 510 securities. Of this number, 31 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 0.1% of the total amortized cost of the portfolio. Of these 31 securities, 21 securities had an unrealized loss for twelve months or more. All of the debt securities in unrealized loss positions are considered acceptable credit risks. Based upon an evaluation of the available evidence, including the recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary. In addition, the Company lacks the intent to sell these securities and it is not more-likely-than-not that the Company will be required to sell these debt securities before their anticipated recovery. The Company did not recognize OTTI on any investment securities for the three or nine months ended September 30, 2019 and 2018. All sales of securities for the three and nine months ended September 30, 2019 and September 30, 2018 were securities identified as AFS. Information on proceeds received, as well as pre-tax gross gains and losses from sales on those securities are as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (dollars in thousands) Proceeds from sales of securities $ 23,364 $ 1,938 $ 28,025 $ 1,938 Gross gains from sales of securities 143 — 150 — Gross losses from sales of securities (146) — (206) — The amortized cost and fair value of securities as of September 30, 2019 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities may differ from contractual maturities because the residential mortgages underlying the residential mortgage-backed and related securities may be prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table. Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 2,946 $ 2,954 Due after one year through five years 31,055 31,689 Due after five years 309,476 328,831 $ 343,477 $ 363,474 Securities AFS: Due in one year or less $ 1,084 $ 1,088 Due after one year through five years 17,157 17,384 Due after five years 67,590 69,580 85,831 88,052 Residential mortgage-backed and related securities 121,118 123,880 $ 206,949 $ 211,932 Portions of the U.S. government sponsored agency securities, municipal securities and other securities contain call options, at the discretion of the issuer, to terminate the security at par and at predetermined dates prior to the stated maturity. These callable securities are summarized as follows: Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 176,339 $ 181,785 Securities AFS: Municipal securities 40,262 41,646 Other securities 6,504 6,677 $ 46,766 $ 48,323 As of September 30, 2019, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 91 issuers with fair values totaling $76.1 million and revenue bonds issued by 148 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $335.2 million. The Company held investments in general obligation bonds in 23 states, including six states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 17 states, including seven states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2018, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 110 issuers with fair values totaling $86.4 million and revenue bonds issued by 160 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $371.9 million. The Company held investments in general obligation bonds in 26 states, including six states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 19 states, including seven states in which the aggregate fair value exceeded $5.0 million. Both general obligation and revenue bonds are diversified across many issuers. As of September 30, 2019 and December 31, 2018 the Company held revenue bonds of one single issuer, located in Ohio, of which the aggregate book or market value exceeded 5% of the Company’s stockholders’ equity. The issuer’s financial condition is strong and the source of repayment is diversified. The Company monitors the investment and concentration closely. Of the general obligation and revenue bonds in the Company's portfolio, the majority are unrated bonds that represent small, private issuances. All unrated bonds were underwritten according to loan underwriting standards and have an average loan risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services such as water, sewer, education, and medical facilities. The Company's municipal securities are owned by each of the four held for investment charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. Each charter is monitored individually, and as of September 30, 2019, all were well within policy limitations approved by the board of directors. Policy limits are calculated as a percentage of each charter's total risk-based capital. As of September 30, 2019, the Company's standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credit ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards. |
NOTE 4 - LOANS_LEASES RECEIVABL
NOTE 4 - LOANS/LEASES RECEIVABLE | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
LOANS/LEASES RECEIVABLE | NOTE 4 – LOANS/LEASES RECEIVABLE The composition of the loan/lease portfolio as of September 30, 2019 and December 31, 2018 is presented as follows: As of September 30, As of December 31, 2019 2018 (dollars in thousands) C&I loans * $ 1,469,978 $ 1,429,410 CRE loans Owner-occupied CRE 441,122 500,654 Commercial construction, land development, and other land 369,123 236,787 Other non owner-occupied CRE 877,677 1,028,670 1,687,922 1,766,111 Direct financing leases ** 92,307 117,969 Residential real estate loans *** 245,667 290,759 Installment and other consumer loans 106,540 119,381 3,602,414 3,723,630 Plus deferred loan/lease origination costs, net of fees 7,856 9,124 3,610,270 3,732,754 Less allowance (36,116) (39,847) $ 3,574,154 $ 3,692,907 ** Direct financing leases: Net minimum lease payments to be received $ 101,869 $ 130,371 Estimated unguaranteed residual values of leased assets 547 828 Unearned lease/residual income (10,109) (13,230) 92,307 117,969 Plus deferred lease origination costs, net of fees 2,153 3,642 94,460 121,611 Less allowance (1,302) (1,792) $ 93,158 $ 119,819 * Includes equipment financing agreements outstanding at m2, totaling $131.0 million and $103.4 million as of September 30, 2019 and December 31, 2018, respectively. ** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The large majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal. There were no losses related to residual values for the three and nine months ended September 30, 2019 and 2018. *** Includes residential real estate loans held for sale totaling $8.9 million and $1.3 million as of September 30, 2019 and December 31, 2018, respectively. Changes in accretable yield for acquired loans were as follows: Three months ended September 30, 2019 Nine months ended September 30, 2019 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (151) $ (8,489) $ (8,640) $ (667) $ (10,127) $ (10,794) Reclassification of nonaccretable discount to accretable — — — (159) — (159) Accretion recognized 94 1,344 1,438 769 2,982 3,751 Balance at the end of the period $ (57) $ (7,145) $ (7,202) $ (57) $ (7,145) $ (7,202) Three months ended September 30, 2018 Nine months ended September 30, 2018 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (142) $ (5,051) $ (5,193) $ (191) $ (6,280) $ (6,471) Discount added at acquisition (293) (7,800) (8,093) (293) (7,800) (8,093) Reclassification of nonaccretable discount to accretable (892) — (892) (892) — (892) Accretion recognized 269 1,579 1,848 318 2,808 3,126 Balance at the end of the period $ (1,058) $ (11,272) $ (12,330) $ (1,058) $ (11,272) $ (12,330) The aging of the loan/lease portfolio by classes of loans/leases as of September 30, 2019 and December 31, 2018 is presented as follows: As of September 30, 2019 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,466,347 $ 2,067 $ 246 $ — $ 1,318 $ 1,469,978 CRE Owner-Occupied CRE 440,668 276 — — 178 441,122 Commercial Construction, Land Development, and Other Land 368,422 701 — — — 369,123 Other Non Owner-Occupied CRE 872,591 1,491 — — 3,595 877,677 Direct Financing Leases 89,776 816 318 — 1,397 92,307 Residential Real Estate 243,785 58 704 — 1,120 245,667 Installment and Other Consumer 105,580 337 — — 623 106,540 $ 3,587,169 $ 5,746 $ 1,268 $ — $ 8,231 $ 3,602,414 As a percentage of total loan/lease portfolio 99.58 % 0.16 % 0.04 % — % 0.22 % 100.00 % As of December 31, 2018 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,423,406 $ 930 $ 597 $ 389 $ 4,088 $ 1,429,410 CRE Owner-Occupied CRE 500,138 — 193 107 216 500,654 Commercial Construction, Land Development, and Other Land 234,704 1,764 — — 319 236,787 Other Non Owner-Occupied CRE 1,022,664 484 — — 5,522 1,028,670 Direct Financing Leases 114,078 1,642 488 — 1,761 117,969 Residential Real Estate 284,844 3,877 206 89 1,743 290,759 Installment and Other Consumer 118,343 356 24 47 611 119,381 $ 3,698,177 $ 9,053 $ 1,508 $ 632 $ 14,260 $ 3,723,630 As a percentage of total loan/lease portfolio 99.32 % 0.24 % 0.04 % 0.02 % 0.38 % 100.00 % NPLs by classes of loans/leases as of September 30, 2019 and December 31, 2018 are presented as follows: As of September 30, 2019 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More* Loans/Leases* Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ — $ 1,318 $ 565 $ 1,883 20.94 % CRE Owner-Occupied CRE — 178 — 178 1.98 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 3,595 — 3,595 39.97 % Direct Financing Leases — 1,397 198 1,595 17.73 % Residential Real Estate — 1,120 — 1,120 12.45 % Installment and Other Consumer — 623 — 623 6.93 % $ — $ 8,231 $ 763 $ 8,994 100.00 % * Nonaccrual loans/leases included $932 thousand of TDRs, including $26 thousand in C&I loans, $513 thousand in CRE loans, $304 thousand in direct financing leases, $32 thousand in residential real estate loans, and $57 thousand in installment loans. As of December 31, 2018 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More* Loans/Leases ** Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ 389 $ 4,088 $ 454 $ 4,931 26.58 % CRE Owner-Occupied CRE 107 216 — 323 1.74 % Commercial Construction, Land Development, and Other Land — 319 — 319 1.72 % Other Non Owner-Occupied CRE — 5,522 2,984 8,506 45.86 % Direct Financing Leases — 1,761 111 1,872 10.09 % Residential Real Estate 89 1,743 100 1,932 10.41 % Installment and Other Consumer 47 611 9 667 3.60 % $ 632 $ 14,260 $ 3,658 $ 18,550 100.00 % * As of December 31, 2018 accruing past due 90 days or more included $496 thousand of TDRs, including $389 thousand in C&I loans and $107 thousand in CRE loans. ** Nonaccrual loans/leases included $2.3 million of TDRs, including $265 thousand in C&I loans, $1.4 million in CRE loans, $321 thousand in direct financing leases, $344 thousand in residential real estate loans, and $3 thousand in installment loans. Changes in the allowance by portfolio segment for the three and nine months ended September 30, 2019 and 2018, respectively, are presented as follows: Three Months Ended September 30, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 18,248 $ 17,363 $ 1,459 $ 2,582 $ 1,452 $ 41,104 Reclassification of allowance related to held for sale assets (2,814) (2,392) — (628) (288) (6,122) Provisions (credits) charged to expense * 998 220 80 241 45 1,584 Loans/leases charged off (349) — (351) (37) (4) (741) Recoveries on loans/leases previously charged off 68 100 114 — 9 291 Balance, ending $ 16,151 $ 15,291 $ 1,302 $ 2,158 $ 1,214 $ 36,116 Three Months Ended September 30, 2018 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 15,234 $ 15,819 $ 2,724 $ 2,433 $ 1,335 $ 37,545 Provisions (credits) charged to expense 3,699 2,254 125 132 (4) 6,206 Loans/leases charged off (87) (387) (428) (58) (31) (991) Recoveries on loans/leases previously charged off 71 30 211 — 5 317 Balance, ending $ 18,917 $ 17,716 $ 2,632 $ 2,507 $ 1,305 $ 43,077 Nine Months Ended September 30, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 16,420 $ 17,719 $ 1,792 $ 2,557 $ 1,359 $ 39,847 Reclassification of allowance related to held for sale assets (2,814) (2,392) — (628) (288) (6,122) Provisions charged to expense * 3,120 1,168 856 309 206 5,659 Loans/leases charged off (876) (1,369) (1,501) (109) (99) (3,953) Recoveries on loans/leases previously charged off 300 164 155 31 36 685 Balance, ending $ 16,151 $ 15,291 $ 1,302 $ 2,158 $ 1,214 $ 36,116 Nine Months Ended September 30, 2018 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 14,323 $ 13,963 $ 2,382 $ 2,466 $ 1,221 $ 34,355 Provisions charged to expense 5,284 4,091 1,418 150 104 11,046 Loans/leases charged off (911) (388) (1,506) (110) (36) (2,951) Recoveries on loans/leases previously charged off 221 50 338 1 16 626 Balance, ending $ 18,917 $ 17,716 $ 2,632 $ 2,507 $ 1,305 $ 43,077 *Excludes provision related to loans included in assets held for sale of $428 thousand for the three and nine months ended September 30, 2019. The allowance by impairment evaluation and by portfolio segment as of September 30, 2019 and December 31, 2018 is presented as follows: As of September 30, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 160 $ 374 $ 59 $ 27 $ 84 $ 704 Allowance for nonimpaired loans/leases 15,991 14,917 1,243 2,131 1,130 35,412 $ 16,151 $ 15,291 $ 1,302 $ 2,158 $ 1,214 $ 36,116 Impaired loans/leases $ 1,764 $ 4,148 $ 1,581 $ 1,062 $ 623 $ 9,178 Nonimpaired loans/leases 1,468,214 1,683,774 90,726 244,605 105,917 3,593,236 $ 1,469,978 $ 1,687,922 $ 92,307 $ 245,667 $ 106,540 $ 3,602,414 Allowance as a percentage of impaired loans/leases 9.07 % 9.02 % 3.73 % 2.54 % 13.48 % 7.67 % Allowance as a percentage of nonimpaired loans/leases 1.09 % 0.89 % 1.37 % 0.87 % 1.07 % 0.99 % Total allowance as a percentage of total loans/leases 1.10 % 0.91 % 1.41 % 0.88 % 1.14 % 1.00 % As of December 31, 2018 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 973 $ 2,124 $ 194 $ 257 $ 111 $ 3,659 Allowance for nonimpaired loans/leases 15,447 15,595 1,598 2,300 1,248 36,188 $ 16,420 $ 17,719 $ 1,792 $ 2,557 $ 1,359 $ 39,847 Impaired loans/leases $ 4,499 $ 10,447 $ 2,249 $ 2,110 $ 898 $ 20,203 Nonimpaired loans/leases 1,424,911 1,755,664 115,720 288,649 118,483 3,703,427 $ 1,429,410 $ 1,766,111 $ 117,969 $ 290,759 $ 119,381 $ 3,723,630 Allowance as a percentage of impaired loans/leases 21.62 % 20.33 % 8.63 % 12.18 % 12.38 % 18.11 % Allowance as a percentage of nonimpaired loans/leases 1.08 % 0.89 % 1.38 % 0.80 % 1.05 % 0.98 % Total allowance as a percentage of total loans/leases 1.15 % 1.00 % 1.52 % 0.88 % 1.14 % 1.07 % Information for impaired loans/leases is presented in the tables below. The recorded investment represents customer balances net of any partial charge-offs recognized on the loan/lease. The unpaid principal balance represents the recorded balance outstanding on the loan/lease prior to any partial charge-offs. Loans/leases, by classes of financing receivable, considered to be impaired as of and for the nine months ended September 30, 2019 are presented as follows: Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,545 $ 1,585 $ — $ 1,026 $ 18 $ 18 CRE Owner-Occupied CRE 40 56 — 21 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 733 733 — 751 22 22 Direct Financing Leases 1,440 1,440 — 1,246 19 19 Residential Real Estate 648 764 — 522 — — Installment and Other Consumer 539 539 — 510 — — $ 4,945 $ 5,117 $ — $ 4,076 $ 59 $ 59 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 219 $ 219 $ 160 $ 102 $ — $ — CRE Owner-Occupied CRE 121 121 18 127 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 3,254 3,254 356 1,995 — — Direct Financing Leases 141 141 59 108 2 2 Residential Real Estate 414 414 27 381 — — Installment and Other Consumer 84 84 84 57 — — $ 4,233 $ 4,233 $ 704 $ 2,770 $ 2 $ 2 Total Impaired Loans/Leases: C&I $ 1,764 $ 1,804 $ 160 $ 1,128 $ 18 $ 18 CRE Owner-Occupied CRE 161 177 18 148 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 3,987 3,987 356 2,746 22 22 Direct Financing Leases 1,581 1,581 59 1,354 21 21 Residential Real Estate 1,062 1,178 27 903 — — Installment and Other Consumer 623 623 84 567 — — $ 9,178 $ 9,350 $ 704 $ 6,846 $ 61 $ 61 Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended September 30, 2019 and 2018, respectively are presented as follows: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Interest Income Interest Income Average Recognized for Average Recognized for Recorded Interest Income Cash Payments Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Recognized Received Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,433 $ 6 $ 6 $ 2,795 $ 17 $ 17 CRE Owner-Occupied CRE 42 — — 289 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 739 7 7 1,009 9 9 Direct Financing Leases 1,359 6 6 1,780 3 3 Residential Real Estate 540 — — 666 — — Installment and Other Consumer 543 — — 115 — — $ 4,656 $ 19 $ 19 $ 6,654 $ 29 $ 29 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 141 $ — $ — $ 3,401 $ 2 $ 2 CRE Owner-Occupied CRE 123 — — 141 — — Commercial Construction, Land Development, and Other Land — — — 5,484 — — Other Non Owner-Occupied CRE 3,254 — — 3,848 8 8 Direct Financing Leases 120 — — 558 — — Residential Real Estate 390 — — 461 3 3 Installment and Other Consumer 84 — — 113 — — $ 4,112 $ — $ — $ 14,006 $ 13 $ 13 Total Impaired Loans/Leases: C&I $ 1,574 $ 6 $ 6 $ 6,196 $ 19 $ 19 CRE Owner-Occupied CRE 165 — — 430 — — Commercial Construction, Land Development, and Other Land — — — 5,484 — — Other Non Owner-Occupied CRE 3,993 7 7 4,857 17 17 Direct Financing Leases 1,479 6 6 2,338 3 3 Residential Real Estate 930 — — 1,127 3 3 Installment and Other Consumer 627 — — 228 — — $ 8,768 $ 19 $ 19 $ 20,660 $ 42 $ 42 Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2018 are presented as follows: Unpaid Recorded Principal Related Classes of Loans/Leases Investment Balance Allowance (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,846 $ 4,540 $ — CRE Owner-Occupied CRE 106 106 — Commercial Construction, Land Development, and Other Land 507 507 — Other Non Owner-Occupied CRE 1,804 1,804 — Direct Financing Leases 1,929 1,929 — Residential Real Estate 984 1,058 — Installment and Other Consumer 762 762 — $ 7,938 $ 10,706 $ — Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 2,653 $ 2,653 $ 973 CRE Owner-Occupied CRE 304 660 39 Commercial Construction, Land Development, and Other Land 149 149 33 Other Non Owner-Occupied CRE 7,577 7,577 2,052 Direct Financing Leases 320 320 194 Residential Real Estate 1,126 1,126 257 Installment and Other Consumer 136 136 111 $ 12,265 $ 12,621 $ 3,659 Total Impaired Loans/Leases: C&I $ 4,499 $ 7,193 $ 973 CRE Owner-Occupied CRE 410 766 39 Commercial Construction, Land Development, and Other Land 656 656 33 Other Non Owner-Occupied CRE 9,381 9,381 2,052 Direct Financing Leases 2,249 2,249 194 Residential Real Estate 2,110 2,184 257 Installment and Other Consumer 898 898 111 $ 20,203 $ 23,327 $ 3,659 Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management's current estimates. For C&I and CRE loans, the Company's credit quality indicator consists of internally assigned risk ratings. Each commercial loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan. For certain C&I loans (equipment financing agreements), direct financing leases, residential real estate loans, and installment and other consumer loans, the Company's credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company's loan system. For each class of financing receivable, the following presents the recorded investment by credit quality indicator as of September 30, 2019 and December 31, 2018: As of September 30, 2019 CRE Non-Owner Occupied Commercial Construction, Land Owner-Occupied Development, As a % of Internally Assigned Risk Rating C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,306,314 $ 435,761 $ 368,659 $ 861,561 $ 2,972,295 98.19 % Special Mention (Rating 6) 14,043 2,888 40 6,224 23,195 0.77 % Substandard (Rating 7) 18,597 2,473 424 9,892 31,386 1.04 % Doubtful (Rating 8) — — — — — — % $ 1,338,954 $ 441,122 $ 369,123 $ 877,677 $ 3,026,876 100.00 % As of September 30, 2019 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 130,291 $ 90,712 $ 244,547 $ 105,917 $ 571,467 99.29 % Nonperforming 733 1,595 1,120 623 4,071 0.71 % $ 131,024 $ 92,307 $ 245,667 $ 106,540 $ 575,538 100.00 % As of December 31, 2018 CRE Non-Owner Occupied Commercial Construction, Land Owner-Occupied Development, As a % of Internally Assigned Risk Rating C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,294,418 $ 487,949 $ 230,473 $ 1,008,626 $ 3,021,466 97.72 % Special Mention (Rating 6) 23,302 9,599 3,848 5,309 42,058 1.36 % Substandard (Rating 7) 8,286 3,106 2,466 14,735 28,593 0.92 % Doubtful (Rating 8) — — — — — — % $ 1,326,006 $ 500,654 $ 236,787 $ 1,028,670 $ 3,092,117 100.00 % As of December 31, 2018 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 102,713 $ 116,097 $ 288,827 $ 118,714 $ 626,351 99.18 % Nonperforming 691 1,872 1,932 667 5,162 0.82 % $ 103,404 $ 117,969 $ 290,759 $ 119,381 $ 631,513 100.00 % * Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing TDRs. As of September 30, 2019 and December 31, 2018, TDRs totaled $1.7 million and $6.5 million, respectively. For each class of financing receivable, the following presents the number and recorded investment of TDRs, by type of concession, that were restructured during the three and nine months ended September 30, 2019 and 2018. The difference between the pre-modification recorded investment and the post-modification recorded investment would be any partial charge-offs at the time of the restructuring. For the three months ended September 30, 2019 For the three months ended September 30, 2018 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Specific Number of Recorded Recorded Specific Classes of Loans/Leases Loans / Leases Investment Investment Allowance Loans / Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay C&I — $ — $ — $ — 1 $ 274 $ 274 $ 274 Other Non Owner-Occupied CRE — — — — 2 981 981 60 Direct Financing Leases 3 116 116 — 2 44 44 — 3 $ 116 $ 116 $ — 5 $ 1,299 $ 1,299 $ 334 CONCESSION - Extension of Maturity Installment and Other Consumer 1 56 56 56 — — — — 1 $ 56 $ 56 $ 56 — $ — $ — $ — TOTAL 4 $ 172 $ 172 $ 56 5 $ 1,299 $ 1,299 $ 334 For the nine months ended September 30, 2019 For the nine months ended September 30, 2018 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Specific Number of Recorded Recorded Specific Classes of Loans/Leases Loans/Leases Investment Investment Allowance Loans/Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay C&I 1 $ 19 $ 19 $ — 1 $ 274 $ 274 $ 274 Other Non Owner-Occupied CRE — — — — 2 981 981 60 Residential Real Estate — — — — 1 46 46 — Direct Financing Leases 6 219 219 20 4 92 92 — 7 $ 238 $ 238 $ 20 8 $ 1,393 $ 1,393 $ 334 CONCESSION - Forgiveness of Principal C&I 1 $ 587 $ 537 $ — — $ — $ — $ — 1 $ 587 $ 537 $ — — $ — $ — $ — CONCESSION - Extension of Maturity Other Non Owner-Occupied CRE — $ — $ — $ — 2 $ 2,976 $ 2,976 $ 816 Installment and Other Consumer 1 56 56 56 Direct Financing Leases — — — — 1 35 35 — 1 $ 56 $ 56 $ 56 3 $ 3,011 $ 3,011 $ 816 TOTAL 9 $ 881 $ 831 $ 76 11 $ 4,404 $ 4,404 $ 1,150 Of the loans restructured during the nine months ended September 30, 2019, three with post-modification recorded balances of $121 thousand were on nonaccrual. Of the loans restructured during the nine months ended September 30, 2018, four with a post-modification recorded balance of $1.3 million was on nonaccrual. For the nine months ended September 30, 2019, two of the Company's TDRs redefaulted within 12 months subsequent to restructure where default is defined as delinquency of 90 days or more and/or placement on nonaccrual status. These TDRs were related to one customer whose leases were restructured in the first quarter of 2019 with pre-modification balances totaling $66 thousand. For the three and nine months ended September 30, 2018, two of the Company's TDRs redefaulted within 12 months subsequent to restructure where default is defined as delinquency of 90 days or more and/or placement on nonaccrual status. These TDRs were related to customers whose loans were restructured in the third quarter of 2018 with pre-modification balances totaling $774 thousand. Not included in the table above, the Company had three TDRs that were restructured and charged off for the nine months ended September 30, 2019, totaling $108 thousand. The Company had nine TDRs that were restructured and charged off for the nine months ended September 30, 2018, totaling $577 thousand. |
NOTE 5 - DERIVATIVES
NOTE 5 - DERIVATIVES | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Derivatives and Hedging Activities | NOTE 5 – DERIVATIVES The Company uses interest rate swap instruments to manage interest rate risk related to the variability of interest payments due to changes in interest rates. On June 21, 2018, the Company entered into interest rate swaps to hedge against the risk of rising rates on its variable rate trust preferred securities. The floating rate trust preferred securities are tied to three-month LIBOR, and the interest rate swaps utilize three-month LIBOR, so the hedge is effective. The interest rate swaps are designated as a cash flow hedge in accordance with ASC 815. The details of the interest rate swaps are as follows: Balance Sheet Fair Value as of Hedged Instrument Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate September 30, 2019 December 31, 2018 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Other Liabilities $ 4.95 % % $ (1,265) $ (298) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Other Liabilities 4.95 % % (1,012) (239) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Other Liabilities 3.85 % % (1,229) (288) Community National Statutory Trust II 9/20/2018 9/20/2028 Other Liabilities 4.33 % % (378) (89) Community National Statutory Trust III 9/15//2018 9/15/2028 Other Liabilities 3.87 % % (441) (104) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Other Liabilities 3.87 % % (566) (133) $ 4.40 % % $ (4,891) $ (1,151) Changes in fair values of derivatives designated as cash flow hedges are recorded in OCI to the extent the hedge is effective, and reclassified to earnings as the hedged transaction (interest payments on debt) impact earnings. The swaps are valued by the transaction counterparty on a monthly basis and corroborated by a third party annually. The Company has also entered into interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an equal and offsetting interest rate swap with a third party financial institution. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts, for the most part, offset each other and do not significantly impact the Company’s results of operations. September 30, 2019 December 31, 2018 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 694,928 $ 102,956 $ $ Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 694,928 $ 102,956 $ $ Swap fee income totaled $20.9 million and $3.7 million for the nine months ended September 30, 2019 and 2018, respectively. Swap fee income totaled $10.6 million for the year ended December 31, 2018. |
NOTE 6 - BORROWINGS
NOTE 6 - BORROWINGS | 9 Months Ended |
Sep. 30, 2019 | |
BORROWINGS | |
BORROWINGS | NOTE 6 –BORROWINGS On February 12, 2019, the Company completed an underwritten public offering of $65.0 million in aggregate principal amount of fixed-to-floating subordinated notes that mature on February 15, 2029. Net proceeds, after deducting the underwriting discount and estimated expenses, were $63.4 million. The subordinated notes, which qualify as Tier 2 capital for the Company, are at a fixed rate of 5.375% per year until but excluding February 15, 2024. On this date, the interest rate will change to an annual floating rate equal to three-month LIBOR plus 282 basis points until the maturity date. The interest on the subordinated notes are payable semi-annually, commencing on August 15, 2019 during the five year fixed term and thereafter quarterly, commencing on February 15, 2024. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after February 15, 2024. The subordinated notes are subordinate in the right of payment to the Company’s senior indebtedness and the indebtedness and other liabilities of the subsidiary banks. Unamortized debt issuance costs related to the subordinated notes totaled $1.5 million at September 30, 2019. Immediately following the issuance, the Company repaid term notes totaling $21.3 million and the outstanding balance of $9.0 million on its revolving line of credit. The Company intends to use the remaining net proceeds from this offering for general corporate purposes, including the pursuit of opportunistic acquisitions of similar or complementary financial service organizations, repaying indebtedness, financing investments and capital expenditures, repurchasing shares of the Company’s common stock, investing in the subsidiary banks or other strategic opportunities that may arise in the future. In the second quarter of 2019, the Company renewed its revolving line of credit. At renewal, the line amount was increased from $10.0 million to $20.0 million. The interest on the revolving line of credit is calculated at the effective LIBOR rate plus 2.25% per annum (4.34% at September 30, 2019). Prior to the renewal, the interest on the revolving line of credit was calculated at the effective LIBOR rate plus 2.50% per annum. The collateral on the revolving line of credit is 100% of the outstanding capital stock of the Company’s bank subsidiaries. The outstanding balance on the revolving line of credit was $0 and $9.0 million at September 30, 2019 and December 31, 2018, respectively. The Company prepaid $30.2 million of FHLB term advances in the third quarter of 2019 using excess funds generated by strong deposit growth. The term advances had original maturities from February 2020 to October 2021 with rates ranging from 1.50% to 2.97%. The Company prepaid two wholesale structured repurchase agreements in the second quarter of 2019 using excess funds generated by strong deposit growth. The first wholesale structured repurchase agreement totaled $5.0 million and had original maturity date of March 13, 2020 with a rate of 2.58%. The second wholesale structured repurchase agreement totaled $20.0 million and had an original maturity of June 13, 2020 with a rate of 2.46%. In addition, wholesale structured repurchase agreements totaling $10.0 million matured in the second quarter of 2019. The wholesale structured repurchase agreements were utilized as an alternative funding source to FHLB advances and customer deposits. Wholesale structured repurchase agreements were collateralized by certain U.S. government agency securities and residential mortgage backed and related securities. |
NOTE 7 - EARNINGS PER SHARE
NOTE 7 - EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 7 - EARNINGS PER SHARE The following information was used in the computation of EPS on a basic and diluted basis: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (dollars in thousands, except share data) Net income $ 15,095 $ 8,809 $ 41,517 $ 29,804 Basic EPS $ 0.96 $ 0.56 $ 2.64 $ 2.06 Diluted EPS $ 0.94 $ 0.55 $ 2.60 $ 2.02 Weighted average common shares outstanding 15,739,430 15,625,123 15,715,788 14,477,783 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 237,312 297,201 230,232 308,994 Weighted average common and common equivalent shares outstanding 15,976,742 15,922,324 15,946,020 14,786,777 |
NOTE 8 - FAIR VALUE
NOTE 8 - FAIR VALUE | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value. | |
FAIR VALUE | NOTE 8 – FAIR VALUE Accounting guidance on fair value measurement uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows: · Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets; · Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and · Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Assets and liabilities measured at fair value on a recurring basis comprise the following at September 30, 2019 and December 31, 2018: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) September 30, 2019: Securities AFS: U.S. govt. sponsored agency securities $ 21,268 $ — $ 21,268 $ — Residential mortgage-backed and related securities 123,880 — 123,880 — Municipal securities 48,902 — 48,902 — Other securities 17,882 — 17,882 — Interest rate swaps - assets 102,956 — 102,956 — Total assets measured at fair value $ 314,888 $ — $ 314,888 $ — Interest rate swaps - liabilities $ 107,847 $ — $ 107,847 $ — Total liabilities measured at fair value $ 107,847 $ — $ 107,847 $ — December 31, 2018: Securities AFS: U.S. govt. sponsored agency securities $ 36,411 $ — $ 36,411 $ — Residential mortgage-backed and related securities 159,249 — 159,249 — Municipal securities 58,546 — 58,546 — Other securities 6,850 — 6,850 — Interest rate swaps - assets 22,196 — 22,196 — Total assets measured at fair value $ 283,252 $ — $ 283,252 $ — Interest rate swaps - liabilities $ 23,347 $ — $ 23,347 $ — Total liabilities measured at fair value $ 23,347 $ — $ 23,347 $ — There were no transfers of assets or liabilities between Levels 1, 2, and 3 of the fair value hierarchy for the three and nine months ended September 30, 2019 or 2018. The securities AFS portfolio consists of securities whereby the Company obtains fair values from an independent pricing service. The fair values are determined by pricing models that consider observable market data, such as interest rate volatilities, LIBOR yield curve, credit spreads and prices from market makers and live trading systems (Level 2 inputs). Interest rate swaps are executed for select commercial customers. The interest rate swaps are further described in Note 5 to the Consolidated Financial Statements. The fair values are determined by comparing the contract rate on the swap with the then-current market rate for the remaining term of the transaction (Level 2 inputs). Interest rate swaps are also used for the purpose of hedging interest rate risk on junior subordinated debt. The interest rate swaps are further described in Note 5 to the Consolidated Financial Statements. The fair values are determined by comparing the contract rate on the swap with the then-current market rate for the remaining term of the transaction (Level 2 inputs). Certain financial assets are measured at fair value on a non-recurring basis; that is, the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets measured at fair value on a non-recurring basis comprise the following at September 30, 2019 and December 31, 2018: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) September 30, 2019: Impaired loans/leases $ 3,839 $ — $ — $ 3,839 OREO 4,588 — — 4,588 $ 8,427 $ — $ — $ 8,427 December 31, 2018: Impaired loans/leases $ 9,657 $ — $ — $ 9,657 OREO 10,128 — — 10,128 $ 19,785 $ — $ — $ 19,785 Impaired loans/leases are evaluated and valued at the time the loan/lease is identified as impaired, at the lower of cost or fair value, and are classified as Level 3 in the fair value hierarchy. Fair value is measured based on the value of the collateral securing these loans/leases. Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable, and is determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the client and client's business. OREO in the table above consists of property acquired through foreclosures and settlements of loans. Property acquired is carried at the estimated fair value of the property, less disposal costs, and is classified as Level 3 in the fair value hierarchy. The estimated fair value of the property is determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the property. The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level Fair Value Measurements Fair Value Fair Value September 30, December 31, 2019 2018 Valuation Technique Unobservable Input Range (dollars in thousands) Impaired loans/leases $ 3,839 $ 9,657 Appraisal of collateral Appraisal adjustments % to % OREO 4,588 10,128 Appraisal of collateral Appraisal adjustments % to % For the impaired loans/leases and OREO, the Company records carrying value at fair value less disposal or selling costs. The amounts reported in the tables above are fair values before the adjustment for disposal or selling costs. There have been no changes in valuation techniques used for any assets or liabilities measured at fair value during the three and nine months ended September 30, 2019 and 2018. The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company's consolidated balance sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis: Fair Value As of September 30, 2019 As of December 31, 2018 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 91,671 $ 91,671 $ 85,523 $ 85,523 Federal funds sold Level 2 9,300 9,300 26,398 26,398 Interest-bearing deposits at financial institutions Level 2 187,963 187,963 133,198 133,198 Investment securities: HTM Level 2 343,477 363,474 401,913 400,770 AFS * 211,932 211,932 261,056 261,056 Loans/leases receivable, net Level 3 3,555 3,839 8,942 9,657 Loans/leases receivable, net Level 2 3,570,599 3,495,905 3,683,965 3,639,329 Interest rate caps Level 2 — — 459 459 Interest rate swaps - assets Level 2 102,956 102,956 22,196 22,196 Assets held for sale: Cash and cash equivalents Level 2 13,446 13,446 — — Securities Level 2 66,009 68,389 — — Loans, net Level 2 362,011 354,438 — — Deposits: Nonmaturity deposits Level 2 3,050,033 3,050,033 3,002,327 3,002,327 Time deposits Level 2 752,208 748,305 974,704 968,906 Short-term borrowings Level 2 18,526 18,526 28,774 28,774 FHLB advances Level 2 195,800 195,697 266,492 265,926 Other borrowings Level 2 — — 67,250 67,770 Subordinated notes Level 2 68,334 68,521 4,782 4,933 Junior subordinated debentures Level 2 37,797 30,494 37,670 29,992 Interest rate swaps - liabilities Level 2 107,847 107,847 23,347 23,347 Liabilities hed for sale: Deposits Level 2 451,546 447,869 — — Borrowings Level 2 16,157 16,149 — — *See previous table in Note 8 . |
NOTE 9 - BUSINESS SEGMENT INFOR
NOTE 9 - BUSINESS SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
BUSINESS SEGMENT INFORMATION | NOTE 9 – BUSINESS SEGMENT INFORMATION Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company's internal organization, focusing on the financial information that the Company's operating decision-makers routinely use to make decisions about operating matters. The Company's primary segment, Commercial Banking, is geographically divided by markets into the secondary segments comprised of the four held for investment subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and SFC Bank. Each of these secondary segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services. The Company's Wealth Management segment represents the trust, asset management, investment management and advisory services offered at the Company's four subsidiary banks and the Bates Companies in aggregate. This segment generates income primarily from fees charged based on assets under administration for corporate and personal trusts, custodial services, and investments managed. No assets of the subsidiary banks have been allocated to the Wealth Management segment. The Company's All Other segment includes the operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds as well as the corporate operations of the parent company. This segment also includes the results of segments classified as held for sale. Selected financial information on the Company's business segments is presented as follows as of and for the three and nine months ended September 30, 2019 and 2018. Commercial Banking Wealth Intercompany Consolidated QCBT CRBT CSB SFC Bank Management All other Eliminations Total (dollars in thousands) Three Months Ended September 30, 2019 Total revenue $ 21,230 $ 25,707 $ 11,596 $ 8,351 $ 4,122 $ 27,753 $ (22,036) $ 76,723 Net interest income 13,357 11,478 8,894 5,056 — 1,934 — 40,719 Provision 948 150 150 276 — 488 — 2,012 Net income (loss) 4,870 7,900 3,482 2,116 926 15,081 (19,280) 15,095 Goodwill 3,223 14,980 9,888 45,975 — 3,682 — 77,748 Intangibles — 2,810 4,154 7,034 — 1,531 — 15,529 Total assets 1,642,950 1,592,896 801,596 693,898 — 1,180,872 (619,830) 5,292,382 Three Months Ended September 30, 2018 Total revenue $ 17,322 $ 16,800 $ 8,889 $ 7,360 $ 3,255 $ 17,721 $ (12,707) $ 58,640 Net interest income 12,218 10,833 7,101 5,701 — 2,456 5 38,314 Provision 409 453 20 475 — 4,849 — 6,206 Net income (loss) from continuing operations 4,827 4,869 2,533 2,198 768 6,081 (12,467) 8,809 Goodwill 3,223 14,979 9,888 45,528 — — — 73,618 Intangibles — 3,313 4,852 7,972 — — — 16,137 Total assets 1,579,327 1,354,293 734,536 623,520 — 1,038,405 (537,349) 4,792,732 Nine Months Ended September 30, 2019 Total revenue $ 60,148 $ 68,526 $ 30,596 $ 23,396 $ 12,599 $ 71,361 $ (54,563) $ 212,063 Net interest income 38,129 32,671 23,154 15,707 — 5,979 — 115,640 Provision for loan/lease losses 2,941 875 451 1,261 — 559 — 6,087 Net income (loss) 13,560 19,928 7,845 5,848 2,667 42,566 (50,897) 41,517 Goodwill 3,223 14,980 9,888 45,975 — 3,682 — 77,748 Intangibles — 2,810 4,154 7,034 — 1,531 — 15,529 Total assets 1,642,950 1,592,896 801,596 693,898 — 1,180,872 (619,830) 5,292,382 Nine Months Ended September 30, 2018 Total revenue $ 49,812 $ 49,301 $ 25,459 $ 7,360 $ 9,560 $ 53,395 $ (38,450) $ 156,437 Net interest income 36,629 32,149 20,579 5,701 — 7,738 5 102,801 Provision for loan/lease losses 2,784 1,682 817 475 — 5,288 — 11,046 Net income (loss) from continuing operations 13,796 14,191 6,560 2,197 2,336 28,556 (37,832) 29,804 Goodwill 3,223 14,979 9,888 45,528 — — — 73,618 Intangibles — 3,313 4,852 7,972 — — — 16,137 Total assets 1,579,327 1,354,293 734,536 623,520 — 1,038,405 (537,349) 4,792,732 |
NOTE 10 - REGULATORY CAPITAL RE
NOTE 10 - REGULATORY CAPITAL REQUIREMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
REGULATORY CAPITAL REQUIREMENTS | NOTE 10 – REGULATORY CAPITAL REQUIREMENTS The Company (on a consolidated basis) and the subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and subsidiary banks' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following table) of total common equity Tier 1 and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets, each as defined by regulation. Management believes, as of September 30, 2019 and December 31, 2018, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject. Under the regulatory framework for prompt corrective action, to be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks' actual capital amounts and ratios as of September 30, 2019 and December 31, 2018 are presented in the following table (dollars in thousands). As of September 30, 2019 and December 31, 2018, each of the subsidiary banks met the requirements to be “well capitalized”. For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer* Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of September 30, 2019: Company: Total risk-based capital $ 567,977 12.22 % $ 371,904 > 8.00 % $ 488,124 > 10.50 % $ 464,880 > 10.00 % Tier 1 risk-based capital 461,899 9.94 278,928 > 6.00 395,148 > 8.50 371,904 > 8.00 Tier 1 leverage 461,899 9.02 204,868 > 4.00 204,868 > 4.00 256,085 > 5.00 Common equity Tier 1 424,102 9.12 209,196 > 4.50 325,416 > 7.00 302,172 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 177,834 11.72 % $ 121,345 > 8.00 % $ 159,265 > 10.50 % $ 151,681 > 10.00 % Tier 1 risk-based capital 163,998 10.81 91,009 > 6.00 128,929 > 8.50 121,345 > 8.00 Tier 1 leverage 163,998 9.85 66,604 > 4.00 66,604 > 4.00 83,255 > 5.00 Common equity Tier 1 163,998 10.81 68,257 > 4.50 106,177 > 7.00 98,593 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 168,158 11.64 % $ 115,524 > 8.00 % $ 151,625 > 10.50 % $ 144,405 > 10.00 % Tier 1 risk-based capital 154,769 10.72 86,643 > 6.00 122,744 > 8.50 115,524 > 8.00 Tier 1 leverage 154,769 9.99 61,993 > 4.00 61,993 > 4.00 77,491 > 5.00 Common equity Tier 1 154,769 10.72 64,982 > 4.50 101,083 > 7.00 93,863 > 6.50 Community State Bank: Total risk-based capital $ 89,088 12.92 % $ 55,147 > 8.00 % $ 72,380 > 10.50 % $ 68,933 > 10.00 % Tier 1 risk-based capital 82,399 11.95 41,360 > 6.00 58,593 > 8.50 55,147 > 8.00 Tier 1 leverage 82,399 10.35 31,846 > 4.00 31,846 > 4.00 39,808 > 5.00 Common equity Tier 1 82,399 11.95 31,020 > 4.50 48,253 > 7.00 44,807 > 6.50 Springfield First Community Bank: Total risk-based capital $ 68,371 13.16 % $ 41,561 > 8.00 % $ 54,549 > 10.50 % $ 51,951 > 10.00 % Tier 1 risk-based capital 61,328 11.80 31,171 > 6.00 44,159 > 8.50 41,561 > 8.00 Tier 1 leverage 61,328 9.67 25,375 > 4.00 25,375 > 4.00 31,719 > 5.00 Common equity Tier 1 61,328 11.80 23,378 > 4.50 36,366 > 7.00 33,768 > 6.50 * September 30, 2019 minimums reflect the fully phased-in ratios (including the capital conservation buffer). For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018: Company: Total risk-based capital $ 460,416 10.69 % $ 344,551 > 8.00 % $ 425,305 > 9.875 % $ 430,689 > 10.00 % Tier 1 risk-based capital 420,569 9.77 258,413 > 6.00 339,168 > 7.875 344,551 > 8.00 Tier 1 leverage 420,569 8.87 189,858 > 4.00 189,858 > 4.000 237,322 > 5.00 Common equity Tier 1 382,899 8.89 193,810 > 4.50 274,564 > 6.375 279,948 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 162,009 11.38 % $ 113,900 > 8.00 % $ 140,596 > 9.875 % $ 142,376 > 10.00 % Tier 1 risk-based capital 148,529 10.43 85,425 > 6.00 112,121 > 7.875 113,900 > 8.00 Tier 1 leverage 148,529 9.04 65,744 > 4.00 65,744 > 4.000 82,180 > 5.00 Common equity Tier 1 148,529 10.43 64,069 > 4.50 90,764 > 6.375 92,544 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 146,292 11.55 % $ 101,310 > 8.00 % $ 125,054 > 9.875 % $ 126,637 > 10.00 % Tier 1 risk-based capital 133,982 10.58 75,982 > 6.00 99,727 > 7.875 101,310 > 8.00 Tier 1 leverage 133,982 9.98 53,682 > 4.00 53,682 > 4.000 67,103 > 5.00 Common equity Tier 1 133,982 10.58 56,987 > 4.50 80,731 > 6.375 82,314 > 6.50 Community State Bank: Total risk-based capital $ 75,233 11.24 % $ 53,567 > 8.00 % $ 66,122 > 9.875 % $ 66,959 > 10.00 % Tier 1 risk-based capital 69,101 10.32 40,175 > 6.00 52,730 > 7.875 53,567 > 8.00 Tier 1 leverage 69,101 9.19 30,070 > 4.00 30,070 > 4.000 37,588 > 5.00 Common equity Tier 1 69,101 10.32 30,131 > 4.50 42,686 > 6.375 43,523 > 6.50 Springfield First Community Bank: Total risk-based capital $ 57,051 12.24 % $ 37,278 > 8.00 % $ 46,016 > 9.875 % $ 46,598 > 10.00 % Tier 1 risk-based capital 51,279 11.00 27,959 > 6.00 36,696 > 7.875 37,278 > 8.00 Tier 1 leverage 51,279 9.39 21,849 > 4.00 21,849 > 4.000 27,312 > 5.00 Common equity Tier 1 51,279 11.00 20,969 > 4.50 29,706 > 6.375 30,289 > 6.50 Rockford Bank & Trust Total risk-based capital $ 50,648 10.89 % $ 37,208 > 8.00 % $ 45,929 > 9.875 % $ 46,511 > 10.00 % Tier 1 risk-based capital 44,821 9.64 27,906 > 6.00 36,627 > 7.875 37,208 > 8.00 Tier 1 leverage 44,821 8.93 20,081 > 4.00 20,081 > 4.000 25,101 > 5.00 Common equity Tier 1 44,821 9.64 20,930 > 4.50 29,650 > 6.375 30,232 > 6.50 |
NOTE 1 - SUMMARY OF SIGNIFICA_2
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies | |
Basis of presentation | Basis of presentation : The interim unaudited consolidated financial statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended December 31, 2018, included in the Company's Annual Report on Form 10‑K filed with the SEC on March 15, 2019. Accordingly, footnote disclosures, which would substantially duplicate the disclosures contained in the audited consolidated financial statements, have been omitted. The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10‑Q and Rule 10‑01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended September 30, 2019 are not necessarily indicative of the results expected for the year ending December 31, 2019, or for any other period. The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10‑Q. It may be helpful to refer back to this page as you read this report. Allowance: Allowance for estimated losses on loans/leases Guaranty: Guaranty Bankshares, Ltd. AOCI: Accumulated other comprehensive income (loss) Guaranty Bank: Guaranty Bank and Trust Company AFS: Available for sale HTM: Held to maturity ASC: Accounting Standards Codification IB&T: Illinois Bank & Trust ASU: Accounting Standards Update m2: m2 Lease Funds, LLC Bates Companies: Bates Financial Advisors, Inc., Bates NIM: Net interest margin Financial Services, Inc., Bates Securities, Inc. and NPA: Nonperforming asset Bates Financial Group, Inc. NPL: Nonperforming loan BOLI: Bank-owned life insurance OREO: Other real estate owned Caps: Interest rate cap derivatives OTTI: Other-than-temporary impairment CDI: Core deposit intangible PCI: Purchased credit impaired Community National: Community National Bancorporation Provision: Provision for loan/lease losses CRBT: Cedar Rapids Bank & Trust Company QCBT: Quad City Bank & Trust Company CRE: Commercial real estate RB&T: Rockford Bank & Trust Company CSB: Community State Bank ROAA: Return on Average Assets C&I: Commercial and industrial SBA: U.S. Small Business Administration EPS: Earnings per share SEC: Securities and Exchange Commission Exchange Act: Securities Exchange Act of 1934, as SFC Bank: Springfield First Community Bank amended Springfield Bancshares: Springfield Bancshares, Inc. FASB: Financial Accounting Standards Board TA: Tangible assets FDIC: Federal Deposit Insurance Corporation TCE: Tangible common equity FHLB: Federal Home Loan Bank TDRs: Troubled debt restructurings FRB: Federal Reserve Bank of Chicago TEY: Tax equivalent yield GAAP: Generally Accepted Accounting Principles The Company: QCR Holdings, Inc. USDA: U.S. Department of Agriculture The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries which include the accounts of five commercial banks: QCBT, CRBT, CSB, SFC Bank and RB&T. All are state-chartered commercial banks and all are members of the Federal Reserve system. The Company engages in direct financing lease contracts through m2, a wholly-owned subsidiary of QCBT. The Company also engages in wealth management services through its banking subsidiaries and its subsidiaries, the Bates Companies. All material intercompany transactions and balances have been eliminated in consolidation. The acquisition of the Bates Companies, headquartered in Rockford, Illinois, occurred on October 1, 2018. The merger with Springfield Bancshares, the holding company of SFC Bank, headquartered in Springfield, Missouri, occurred on July 1, 2018. The financial results for the periods since acquisition/merger are included in this report. See Note 2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for additional information about the acquisition and merger. On August 13, 2019, the Company entered into a definitive agreement to sell certain assets and liabilities of RB&T, a wholly-owned subsidiary headquartered in Rockford, Illinois, to IB&T, a wholly-owned subsidiary of Heartland Financial USA, Inc. Under the terms of the agreement, IB&T will acquire certain assets and assume certain liabilities for a cash payment. The transaction is subject to approval by federal and state bank regulators and to customary closing conditions. The transaction is expected to close in the fourth quarter of 2019. The assets and liabilities that will be sold are classified as held for sale on the Consolidated Balance Sheet and corresponding footnotes. See Note 2 to the Company’s Consolidated Financial Statements for additional information about the sale. |
Recent accounting developments | Recent accounting developments : In February 2016, the FASB issued ASU 2016‑02, Leases . Under ASU 2016‑02, lessees will be required to recognize a lease liability measured on a discounted basis and a right-of-use asset for all leases (with the exception of short-term leases). Lessor accounting is largely unchanged under ASU 2016‑02. However, the definition of initial direct costs was updated to include only initial direct costs that are considered incremental. This change in definition will change the manner in which the Company recognizes the costs associated with originating leases. ASU 2016‑02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all entities. The standard was adopted on January 1, 2019 and did not have a significant impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments – Credit Losses . Under the standard, assets measured at amortized costs (including loans, leases and AFS securities) will be presented at the net amount expected to be collected. Rather than the “incurred” model that is currently being utilized, the standard will require the use of a forward-looking approach to recognizing all expected credit losses at the beginning of an asset's life. For public companies, ASU 2016‑13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Companies may choose to early adopt for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of analyzing the impact of adoption on the Company's Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). ASU 2017-04 is intended to simplify goodwill impairment testing by eliminating the second step of the analysis. ASU 2017-04 requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. This guidance is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect this guidance to have a significant impact on its Consolidated Financial Statements. |
Reclassifications | Reclassifications : Certain amounts in the prior year's consolidated financial statements have been reclassified, with no effect on net income or stockholders' equity, to conform with the current period presentation. |
NOTE 2 - ASSETS AND LIABILITI_2
NOTE 2 - ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
ASSETS AND LIABILITIES HELD FOR SALE | |
Schedule of assets and liabilities classified as held for sale | As of September 30, 2019 (dollars in thousands) ASSETS Cash and cash equivalents $ 13,446 Securities 66,009 Loans, net 362,011 Other assets 24,081 Assets held for sale $ 465,547 LIABILIITES Deposits $ 451,546 Borrowings 16,157 Other liabilities 2,827 Liabilities held for sale $ 470,530 |
NOTE 3 - INVESTMENT SECURITIES
NOTE 3 - INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Amortized cost and fair value of investment securities | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) September 30, 2019: Securities HTM: Municipal securities $ 342,427 $ 20,122 $ (119) $ 362,430 Other securities 1,050 — (6) 1,044 $ 343,477 $ 20,122 $ (125) $ 363,474 Securities AFS: U.S. govt. sponsored agency securities $ 20,861 $ 470 $ (63) $ 21,268 Residential mortgage-backed and related securities 121,118 2,962 (200) 123,880 Municipal securities 47,259 1,653 (10) 48,902 Other securities 17,711 172 (1) 17,882 $ 206,949 $ 5,257 $ (274) $ 211,932 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2018: Securities HTM: Municipal securities $ 400,863 $ 5,661 $ (6,803) $ 399,721 Other securities 1,050 — (1) 1,049 $ 401,913 $ 5,661 $ (6,804) $ 400,770 Securities AFS: U.S. govt. sponsored agency securities $ 37,150 $ 39 $ (778) $ 36,411 Residential mortgage-backed and related securities 163,698 182 (4,631) 159,249 Municipal securities 59,069 180 (703) 58,546 Other securities 6,754 100 (4) 6,850 $ 266,671 $ 501 $ (6,116) $ 261,056 |
Securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) September 30, 2019: Securities HTM: Municipal securities $ 1,037 $ (1) $ 7,839 $ (118) $ 8,876 $ (119) Other securities 1,044 (6) — — 1,044 (6) $ 2,081 $ (7) $ 7,839 $ (118) $ 9,920 $ (125) Securities AFS: U.S. govt. sponsored agency securities $ 1,618 $ (1) $ 2,318 $ (62) $ 3,936 $ (63) Residential mortgage-backed and related securities 1,194 (1) 20,376 (199) 21,570 (200) Municipal securities 1,686 (3) 723 (7) 2,409 (10) Other securities 248 (1) — — 248 (1) $ 4,746 $ (6) $ 23,417 $ (268) $ 28,163 $ (274) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2018: Securities HTM: Municipal securities $ 114,201 $ (2,187) $ 69,412 $ (4,616) $ 183,613 $ (6,803) Other securities 549 (1) — — 549 (1) $ 114,750 $ (2,188) $ 69,412 $ (4,616) $ 184,162 $ (6,804) Securities AFS: U.S. govt. sponsored agency securities $ 1,565 $ (34) $ 29,605 $ (744) $ 31,170 $ (778) Residential mortgage-backed and related securities 12,810 (148) 133,535 (4,483) 146,345 (4,631) Municipal securities 28,356 (394) 15,932 (309) 44,288 (703) Other securities 4,249 (4) — — 4,249 (4) $ 46,980 $ (580) $ 179,072 $ (5,536) $ 226,052 $ (6,116) |
Realized gain (loss) on investments | Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (dollars in thousands) Proceeds from sales of securities $ 23,364 $ 1,938 $ 28,025 $ 1,938 Gross gains from sales of securities 143 — 150 — Gross losses from sales of securities (146) — (206) — |
Investments classified by maturity date | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 2,946 $ 2,954 Due after one year through five years 31,055 31,689 Due after five years 309,476 328,831 $ 343,477 $ 363,474 Securities AFS: Due in one year or less $ 1,084 $ 1,088 Due after one year through five years 17,157 17,384 Due after five years 67,590 69,580 85,831 88,052 Residential mortgage-backed and related securities 121,118 123,880 $ 206,949 $ 211,932 |
Schedule of investment in callable securities | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 176,339 $ 181,785 Securities AFS: Municipal securities 40,262 41,646 Other securities 6,504 6,677 $ 46,766 $ 48,323 |
NOTE 4 - LOANS_LEASES RECEIVA_2
NOTE 4 - LOANS/LEASES RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Composition of the loan/lease portfolio | As of September 30, As of December 31, 2019 2018 (dollars in thousands) C&I loans * $ 1,469,978 $ 1,429,410 CRE loans Owner-occupied CRE 441,122 500,654 Commercial construction, land development, and other land 369,123 236,787 Other non owner-occupied CRE 877,677 1,028,670 1,687,922 1,766,111 Direct financing leases ** 92,307 117,969 Residential real estate loans *** 245,667 290,759 Installment and other consumer loans 106,540 119,381 3,602,414 3,723,630 Plus deferred loan/lease origination costs, net of fees 7,856 9,124 3,610,270 3,732,754 Less allowance (36,116) (39,847) $ 3,574,154 $ 3,692,907 ** Direct financing leases: Net minimum lease payments to be received $ 101,869 $ 130,371 Estimated unguaranteed residual values of leased assets 547 828 Unearned lease/residual income (10,109) (13,230) 92,307 117,969 Plus deferred lease origination costs, net of fees 2,153 3,642 94,460 121,611 Less allowance (1,302) (1,792) $ 93,158 $ 119,819 * Includes equipment financing agreements outstanding at m2, totaling $131.0 million and $103.4 million as of September 30, 2019 and December 31, 2018, respectively. ** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The large majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal. There were no losses related to residual values for the three and nine months ended September 30, 2019 and 2018. *** Includes residential real estate loans held for sale totaling $8.9 million and $1.3 million as of September 30, 2019 and December 31, 2018, respectively. |
Changes in accretable yield for acquired loans | Three months ended September 30, 2019 Nine months ended September 30, 2019 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (151) $ (8,489) $ (8,640) $ (667) $ (10,127) $ (10,794) Reclassification of nonaccretable discount to accretable — — — (159) — (159) Accretion recognized 94 1,344 1,438 769 2,982 3,751 Balance at the end of the period $ (57) $ (7,145) $ (7,202) $ (57) $ (7,145) $ (7,202) Three months ended September 30, 2018 Nine months ended September 30, 2018 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (142) $ (5,051) $ (5,193) $ (191) $ (6,280) $ (6,471) Discount added at acquisition (293) (7,800) (8,093) (293) (7,800) (8,093) Reclassification of nonaccretable discount to accretable (892) — (892) (892) — (892) Accretion recognized 269 1,579 1,848 318 2,808 3,126 Balance at the end of the period $ (1,058) $ (11,272) $ (12,330) $ (1,058) $ (11,272) $ (12,330) |
Aging of the loan/lease portfolio by classes of loans/leases | As of September 30, 2019 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,466,347 $ 2,067 $ 246 $ — $ 1,318 $ 1,469,978 CRE Owner-Occupied CRE 440,668 276 — — 178 441,122 Commercial Construction, Land Development, and Other Land 368,422 701 — — — 369,123 Other Non Owner-Occupied CRE 872,591 1,491 — — 3,595 877,677 Direct Financing Leases 89,776 816 318 — 1,397 92,307 Residential Real Estate 243,785 58 704 — 1,120 245,667 Installment and Other Consumer 105,580 337 — — 623 106,540 $ 3,587,169 $ 5,746 $ 1,268 $ — $ 8,231 $ 3,602,414 As a percentage of total loan/lease portfolio 99.58 % 0.16 % 0.04 % — % 0.22 % 100.00 % As of December 31, 2018 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,423,406 $ 930 $ 597 $ 389 $ 4,088 $ 1,429,410 CRE Owner-Occupied CRE 500,138 — 193 107 216 500,654 Commercial Construction, Land Development, and Other Land 234,704 1,764 — — 319 236,787 Other Non Owner-Occupied CRE 1,022,664 484 — — 5,522 1,028,670 Direct Financing Leases 114,078 1,642 488 — 1,761 117,969 Residential Real Estate 284,844 3,877 206 89 1,743 290,759 Installment and Other Consumer 118,343 356 24 47 611 119,381 $ 3,698,177 $ 9,053 $ 1,508 $ 632 $ 14,260 $ 3,723,630 As a percentage of total loan/lease portfolio 99.32 % 0.24 % 0.04 % 0.02 % 0.38 % 100.00 % |
NPLs by classes of loans/leases | As of September 30, 2019 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More* Loans/Leases* Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ — $ 1,318 $ 565 $ 1,883 20.94 % CRE Owner-Occupied CRE — 178 — 178 1.98 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 3,595 — 3,595 39.97 % Direct Financing Leases — 1,397 198 1,595 17.73 % Residential Real Estate — 1,120 — 1,120 12.45 % Installment and Other Consumer — 623 — 623 6.93 % $ — $ 8,231 $ 763 $ 8,994 100.00 % * Nonaccrual loans/leases included $932 thousand of TDRs, including $26 thousand in C&I loans, $513 thousand in CRE loans, $304 thousand in direct financing leases, $32 thousand in residential real estate loans, and $57 thousand in installment loans. As of December 31, 2018 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More* Loans/Leases ** Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ 389 $ 4,088 $ 454 $ 4,931 26.58 % CRE Owner-Occupied CRE 107 216 — 323 1.74 % Commercial Construction, Land Development, and Other Land — 319 — 319 1.72 % Other Non Owner-Occupied CRE — 5,522 2,984 8,506 45.86 % Direct Financing Leases — 1,761 111 1,872 10.09 % Residential Real Estate 89 1,743 100 1,932 10.41 % Installment and Other Consumer 47 611 9 667 3.60 % $ 632 $ 14,260 $ 3,658 $ 18,550 100.00 % * As of December 31, 2018 accruing past due 90 days or more included $496 thousand of TDRs, including $389 thousand in C&I loans and $107 thousand in CRE loans. ** Nonaccrual loans/leases included $2.3 million of TDRs, including $265 thousand in C&I loans, $1.4 million in CRE loans, $321 thousand in direct financing leases, $344 thousand in residential real estate loans, and $3 thousand in installment loans. |
Allowance for credit losses on financing receivables | Changes in the allowance by portfolio segment for the three and nine months ended September 30, 2019 and 2018, respectively, are presented as follows: Three Months Ended September 30, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 18,248 $ 17,363 $ 1,459 $ 2,582 $ 1,452 $ 41,104 Reclassification of allowance related to held for sale assets (2,814) (2,392) — (628) (288) (6,122) Provisions (credits) charged to expense * 998 220 80 241 45 1,584 Loans/leases charged off (349) — (351) (37) (4) (741) Recoveries on loans/leases previously charged off 68 100 114 — 9 291 Balance, ending $ 16,151 $ 15,291 $ 1,302 $ 2,158 $ 1,214 $ 36,116 Three Months Ended September 30, 2018 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 15,234 $ 15,819 $ 2,724 $ 2,433 $ 1,335 $ 37,545 Provisions (credits) charged to expense 3,699 2,254 125 132 (4) 6,206 Loans/leases charged off (87) (387) (428) (58) (31) (991) Recoveries on loans/leases previously charged off 71 30 211 — 5 317 Balance, ending $ 18,917 $ 17,716 $ 2,632 $ 2,507 $ 1,305 $ 43,077 Nine Months Ended September 30, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 16,420 $ 17,719 $ 1,792 $ 2,557 $ 1,359 $ 39,847 Reclassification of allowance related to held for sale assets (2,814) (2,392) — (628) (288) (6,122) Provisions charged to expense * 3,120 1,168 856 309 206 5,659 Loans/leases charged off (876) (1,369) (1,501) (109) (99) (3,953) Recoveries on loans/leases previously charged off 300 164 155 31 36 685 Balance, ending $ 16,151 $ 15,291 $ 1,302 $ 2,158 $ 1,214 $ 36,116 Nine Months Ended September 30, 2018 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 14,323 $ 13,963 $ 2,382 $ 2,466 $ 1,221 $ 34,355 Provisions charged to expense 5,284 4,091 1,418 150 104 11,046 Loans/leases charged off (911) (388) (1,506) (110) (36) (2,951) Recoveries on loans/leases previously charged off 221 50 338 1 16 626 Balance, ending $ 18,917 $ 17,716 $ 2,632 $ 2,507 $ 1,305 $ 43,077 *Excludes provision related to loans included in assets held for sale of $428 thousand for the three and nine months ended September 30, 2019. The allowance by impairment evaluation and by portfolio segment as of September 30, 2019 and December 31, 2018 is presented as follows: As of September 30, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 160 $ 374 $ 59 $ 27 $ 84 $ 704 Allowance for nonimpaired loans/leases 15,991 14,917 1,243 2,131 1,130 35,412 $ 16,151 $ 15,291 $ 1,302 $ 2,158 $ 1,214 $ 36,116 Impaired loans/leases $ 1,764 $ 4,148 $ 1,581 $ 1,062 $ 623 $ 9,178 Nonimpaired loans/leases 1,468,214 1,683,774 90,726 244,605 105,917 3,593,236 $ 1,469,978 $ 1,687,922 $ 92,307 $ 245,667 $ 106,540 $ 3,602,414 Allowance as a percentage of impaired loans/leases 9.07 % 9.02 % 3.73 % 2.54 % 13.48 % 7.67 % Allowance as a percentage of nonimpaired loans/leases 1.09 % 0.89 % 1.37 % 0.87 % 1.07 % 0.99 % Total allowance as a percentage of total loans/leases 1.10 % 0.91 % 1.41 % 0.88 % 1.14 % 1.00 % As of December 31, 2018 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 973 $ 2,124 $ 194 $ 257 $ 111 $ 3,659 Allowance for nonimpaired loans/leases 15,447 15,595 1,598 2,300 1,248 36,188 $ 16,420 $ 17,719 $ 1,792 $ 2,557 $ 1,359 $ 39,847 Impaired loans/leases $ 4,499 $ 10,447 $ 2,249 $ 2,110 $ 898 $ 20,203 Nonimpaired loans/leases 1,424,911 1,755,664 115,720 288,649 118,483 3,703,427 $ 1,429,410 $ 1,766,111 $ 117,969 $ 290,759 $ 119,381 $ 3,723,630 Allowance as a percentage of impaired loans/leases 21.62 % 20.33 % 8.63 % 12.18 % 12.38 % 18.11 % Allowance as a percentage of nonimpaired loans/leases 1.08 % 0.89 % 1.38 % 0.80 % 1.05 % 0.98 % Total allowance as a percentage of total loans/leases 1.15 % 1.00 % 1.52 % 0.88 % 1.14 % 1.07 % |
Impaired financing receivables | Loans/leases, by classes of financing receivable, considered to be impaired as of and for the nine months ended September 30, 2019 are presented as follows: Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,545 $ 1,585 $ — $ 1,026 $ 18 $ 18 CRE Owner-Occupied CRE 40 56 — 21 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 733 733 — 751 22 22 Direct Financing Leases 1,440 1,440 — 1,246 19 19 Residential Real Estate 648 764 — 522 — — Installment and Other Consumer 539 539 — 510 — — $ 4,945 $ 5,117 $ — $ 4,076 $ 59 $ 59 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 219 $ 219 $ 160 $ 102 $ — $ — CRE Owner-Occupied CRE 121 121 18 127 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 3,254 3,254 356 1,995 — — Direct Financing Leases 141 141 59 108 2 2 Residential Real Estate 414 414 27 381 — — Installment and Other Consumer 84 84 84 57 — — $ 4,233 $ 4,233 $ 704 $ 2,770 $ 2 $ 2 Total Impaired Loans/Leases: C&I $ 1,764 $ 1,804 $ 160 $ 1,128 $ 18 $ 18 CRE Owner-Occupied CRE 161 177 18 148 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 3,987 3,987 356 2,746 22 22 Direct Financing Leases 1,581 1,581 59 1,354 21 21 Residential Real Estate 1,062 1,178 27 903 — — Installment and Other Consumer 623 623 84 567 — — $ 9,178 $ 9,350 $ 704 $ 6,846 $ 61 $ 61 Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended September 30, 2019 and 2018, respectively are presented as follows: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Interest Income Interest Income Average Recognized for Average Recognized for Recorded Interest Income Cash Payments Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Recognized Received Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,433 $ 6 $ 6 $ 2,795 $ 17 $ 17 CRE Owner-Occupied CRE 42 — — 289 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 739 7 7 1,009 9 9 Direct Financing Leases 1,359 6 6 1,780 3 3 Residential Real Estate 540 — — 666 — — Installment and Other Consumer 543 — — 115 — — $ 4,656 $ 19 $ 19 $ 6,654 $ 29 $ 29 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 141 $ — $ — $ 3,401 $ 2 $ 2 CRE Owner-Occupied CRE 123 — — 141 — — Commercial Construction, Land Development, and Other Land — — — 5,484 — — Other Non Owner-Occupied CRE 3,254 — — 3,848 8 8 Direct Financing Leases 120 — — 558 — — Residential Real Estate 390 — — 461 3 3 Installment and Other Consumer 84 — — 113 — — $ 4,112 $ — $ — $ 14,006 $ 13 $ 13 Total Impaired Loans/Leases: C&I $ 1,574 $ 6 $ 6 $ 6,196 $ 19 $ 19 CRE Owner-Occupied CRE 165 — — 430 — — Commercial Construction, Land Development, and Other Land — — — 5,484 — — Other Non Owner-Occupied CRE 3,993 7 7 4,857 17 17 Direct Financing Leases 1,479 6 6 2,338 3 3 Residential Real Estate 930 — — 1,127 3 3 Installment and Other Consumer 627 — — 228 — — $ 8,768 $ 19 $ 19 $ 20,660 $ 42 $ 42 Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2018 are presented as follows: Unpaid Recorded Principal Related Classes of Loans/Leases Investment Balance Allowance (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,846 $ 4,540 $ — CRE Owner-Occupied CRE 106 106 — Commercial Construction, Land Development, and Other Land 507 507 — Other Non Owner-Occupied CRE 1,804 1,804 — Direct Financing Leases 1,929 1,929 — Residential Real Estate 984 1,058 — Installment and Other Consumer 762 762 — $ 7,938 $ 10,706 $ — Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 2,653 $ 2,653 $ 973 CRE Owner-Occupied CRE 304 660 39 Commercial Construction, Land Development, and Other Land 149 149 33 Other Non Owner-Occupied CRE 7,577 7,577 2,052 Direct Financing Leases 320 320 194 Residential Real Estate 1,126 1,126 257 Installment and Other Consumer 136 136 111 $ 12,265 $ 12,621 $ 3,659 Total Impaired Loans/Leases: C&I $ 4,499 $ 7,193 $ 973 CRE Owner-Occupied CRE 410 766 39 Commercial Construction, Land Development, and Other Land 656 656 33 Other Non Owner-Occupied CRE 9,381 9,381 2,052 Direct Financing Leases 2,249 2,249 194 Residential Real Estate 2,110 2,184 257 Installment and Other Consumer 898 898 111 $ 20,203 $ 23,327 $ 3,659 |
Financing receivable credit quality indicators | As of September 30, 2019 CRE Non-Owner Occupied Commercial Construction, Land Owner-Occupied Development, As a % of Internally Assigned Risk Rating C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,306,314 $ 435,761 $ 368,659 $ 861,561 $ 2,972,295 98.19 % Special Mention (Rating 6) 14,043 2,888 40 6,224 23,195 0.77 % Substandard (Rating 7) 18,597 2,473 424 9,892 31,386 1.04 % Doubtful (Rating 8) — — — — — — % $ 1,338,954 $ 441,122 $ 369,123 $ 877,677 $ 3,026,876 100.00 % As of December 31, 2018 CRE Non-Owner Occupied Commercial Construction, Land Owner-Occupied Development, As a % of Internally Assigned Risk Rating C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,294,418 $ 487,949 $ 230,473 $ 1,008,626 $ 3,021,466 97.72 % Special Mention (Rating 6) 23,302 9,599 3,848 5,309 42,058 1.36 % Substandard (Rating 7) 8,286 3,106 2,466 14,735 28,593 0.92 % Doubtful (Rating 8) — — — — — — % $ 1,326,006 $ 500,654 $ 236,787 $ 1,028,670 $ 3,092,117 100.00 % |
Financing receivable credit quality indicators performance status | As of September 30, 2019 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 130,291 $ 90,712 $ 244,547 $ 105,917 $ 571,467 99.29 % Nonperforming 733 1,595 1,120 623 4,071 0.71 % $ 131,024 $ 92,307 $ 245,667 $ 106,540 $ 575,538 100.00 % As of December 31, 2018 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 102,713 $ 116,097 $ 288,827 $ 118,714 $ 626,351 99.18 % Nonperforming 691 1,872 1,932 667 5,162 0.82 % $ 103,404 $ 117,969 $ 290,759 $ 119,381 $ 631,513 100.00 % * Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing TDRs. |
Number and recorded investment of TDRs, by type of concession | For the three months ended September 30, 2019 For the three months ended September 30, 2018 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Specific Number of Recorded Recorded Specific Classes of Loans/Leases Loans / Leases Investment Investment Allowance Loans / Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay C&I — $ — $ — $ — 1 $ 274 $ 274 $ 274 Other Non Owner-Occupied CRE — — — — 2 981 981 60 Direct Financing Leases 3 116 116 — 2 44 44 — 3 $ 116 $ 116 $ — 5 $ 1,299 $ 1,299 $ 334 CONCESSION - Extension of Maturity Installment and Other Consumer 1 56 56 56 — — — — 1 $ 56 $ 56 $ 56 — $ — $ — $ — TOTAL 4 $ 172 $ 172 $ 56 5 $ 1,299 $ 1,299 $ 334 For the nine months ended September 30, 2019 For the nine months ended September 30, 2018 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Specific Number of Recorded Recorded Specific Classes of Loans/Leases Loans/Leases Investment Investment Allowance Loans/Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay C&I 1 $ 19 $ 19 $ — 1 $ 274 $ 274 $ 274 Other Non Owner-Occupied CRE — — — — 2 981 981 60 Residential Real Estate — — — — 1 46 46 — Direct Financing Leases 6 219 219 20 4 92 92 — 7 $ 238 $ 238 $ 20 8 $ 1,393 $ 1,393 $ 334 CONCESSION - Forgiveness of Principal C&I 1 $ 587 $ 537 $ — — $ — $ — $ — 1 $ 587 $ 537 $ — — $ — $ — $ — CONCESSION - Extension of Maturity Other Non Owner-Occupied CRE — $ — $ — $ — 2 $ 2,976 $ 2,976 $ 816 Installment and Other Consumer 1 56 56 56 Direct Financing Leases — — — — 1 35 35 — 1 $ 56 $ 56 $ 56 3 $ 3,011 $ 3,011 $ 816 TOTAL 9 $ 881 $ 831 $ 76 11 $ 4,404 $ 4,404 $ 1,150 |
NOTE 5 - DERIVATIVES (Tables)
NOTE 5 - DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | September 30, 2019 December 31, 2018 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 694,928 $ 102,956 $ $ Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 694,928 $ 102,956 $ $ |
Interest rate swap | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Balance Sheet Fair Value as of Hedged Instrument Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate September 30, 2019 December 31, 2018 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Other Liabilities $ 4.95 % % $ (1,265) $ (298) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Other Liabilities 4.95 % % (1,012) (239) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Other Liabilities 3.85 % % (1,229) (288) Community National Statutory Trust II 9/20/2018 9/20/2028 Other Liabilities 4.33 % % (378) (89) Community National Statutory Trust III 9/15//2018 9/15/2028 Other Liabilities 3.87 % % (441) (104) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Other Liabilities 3.87 % % (566) (133) $ 4.40 % % $ (4,891) $ (1,151) |
NOTE 7 - EARNINGS PER SHARE (Ta
NOTE 7 - EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share | |
Schedule of computation of earnings per share on a basic and diluted basis | Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (dollars in thousands, except share data) Net income $ 15,095 $ 8,809 $ 41,517 $ 29,804 Basic EPS $ 0.96 $ 0.56 $ 2.64 $ 2.06 Diluted EPS $ 0.94 $ 0.55 $ 2.60 $ 2.02 Weighted average common shares outstanding 15,739,430 15,625,123 15,715,788 14,477,783 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 237,312 297,201 230,232 308,994 Weighted average common and common equivalent shares outstanding 15,976,742 15,922,324 15,946,020 14,786,777 |
NOTE 8 - FAIR VALUE (Tables)
NOTE 8 - FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) September 30, 2019: Securities AFS: U.S. govt. sponsored agency securities $ 21,268 $ — $ 21,268 $ — Residential mortgage-backed and related securities 123,880 — 123,880 — Municipal securities 48,902 — 48,902 — Other securities 17,882 — 17,882 — Interest rate swaps - assets 102,956 — 102,956 — Total assets measured at fair value $ 314,888 $ — $ 314,888 $ — Interest rate swaps - liabilities $ 107,847 $ — $ 107,847 $ — Total liabilities measured at fair value $ 107,847 $ — $ 107,847 $ — December 31, 2018: Securities AFS: U.S. govt. sponsored agency securities $ 36,411 $ — $ 36,411 $ — Residential mortgage-backed and related securities 159,249 — 159,249 — Municipal securities 58,546 — 58,546 — Other securities 6,850 — 6,850 — Interest rate swaps - assets 22,196 — 22,196 — Total assets measured at fair value $ 283,252 $ — $ 283,252 $ — Interest rate swaps - liabilities $ 23,347 $ — $ 23,347 $ — Total liabilities measured at fair value $ 23,347 $ — $ 23,347 $ — Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) September 30, 2019: Impaired loans/leases $ 3,839 $ — $ — $ 3,839 OREO 4,588 — — 4,588 $ 8,427 $ — $ — $ 8,427 December 31, 2018: Impaired loans/leases $ 9,657 $ — $ — $ 9,657 OREO 10,128 — — 10,128 $ 19,785 $ — $ — $ 19,785 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | Quantitative Information about Level Fair Value Measurements Fair Value Fair Value September 30, December 31, 2019 2018 Valuation Technique Unobservable Input Range (dollars in thousands) Impaired loans/leases $ 3,839 $ 9,657 Appraisal of collateral Appraisal adjustments % to % OREO 4,588 10,128 Appraisal of collateral Appraisal adjustments % to % |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value As of September 30, 2019 As of December 31, 2018 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 91,671 $ 91,671 $ 85,523 $ 85,523 Federal funds sold Level 2 9,300 9,300 26,398 26,398 Interest-bearing deposits at financial institutions Level 2 187,963 187,963 133,198 133,198 Investment securities: HTM Level 2 343,477 363,474 401,913 400,770 AFS * 211,932 211,932 261,056 261,056 Loans/leases receivable, net Level 3 3,555 3,839 8,942 9,657 Loans/leases receivable, net Level 2 3,570,599 3,495,905 3,683,965 3,639,329 Interest rate caps Level 2 — — 459 459 Interest rate swaps - assets Level 2 102,956 102,956 22,196 22,196 Assets held for sale: Cash and cash equivalents Level 2 13,446 13,446 — — Securities Level 2 66,009 68,389 — — Loans, net Level 2 362,011 354,438 — — Deposits: Nonmaturity deposits Level 2 3,050,033 3,050,033 3,002,327 3,002,327 Time deposits Level 2 752,208 748,305 974,704 968,906 Short-term borrowings Level 2 18,526 18,526 28,774 28,774 FHLB advances Level 2 195,800 195,697 266,492 265,926 Other borrowings Level 2 — — 67,250 67,770 Subordinated notes Level 2 68,334 68,521 4,782 4,933 Junior subordinated debentures Level 2 37,797 30,494 37,670 29,992 Interest rate swaps - liabilities Level 2 107,847 107,847 23,347 23,347 Liabilities hed for sale: Deposits Level 2 451,546 447,869 — — Borrowings Level 2 16,157 16,149 — — |
NOTE 9 - BUSINESS SEGMENT INF_2
NOTE 9 - BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Commercial Banking Wealth Intercompany Consolidated QCBT CRBT CSB SFC Bank Management All other Eliminations Total (dollars in thousands) Three Months Ended September 30, 2019 Total revenue $ 21,230 $ 25,707 $ 11,596 $ 8,351 $ 4,122 $ 27,753 $ (22,036) $ 76,723 Net interest income 13,357 11,478 8,894 5,056 — 1,934 — 40,719 Provision 948 150 150 276 — 488 — 2,012 Net income (loss) 4,870 7,900 3,482 2,116 926 15,081 (19,280) 15,095 Goodwill 3,223 14,980 9,888 45,975 — 3,682 — 77,748 Intangibles — 2,810 4,154 7,034 — 1,531 — 15,529 Total assets 1,642,950 1,592,896 801,596 693,898 — 1,180,872 (619,830) 5,292,382 Three Months Ended September 30, 2018 Total revenue $ 17,322 $ 16,800 $ 8,889 $ 7,360 $ 3,255 $ 17,721 $ (12,707) $ 58,640 Net interest income 12,218 10,833 7,101 5,701 — 2,456 5 38,314 Provision 409 453 20 475 — 4,849 — 6,206 Net income (loss) from continuing operations 4,827 4,869 2,533 2,198 768 6,081 (12,467) 8,809 Goodwill 3,223 14,979 9,888 45,528 — — — 73,618 Intangibles — 3,313 4,852 7,972 — — — 16,137 Total assets 1,579,327 1,354,293 734,536 623,520 — 1,038,405 (537,349) 4,792,732 Nine Months Ended September 30, 2019 Total revenue $ 60,148 $ 68,526 $ 30,596 $ 23,396 $ 12,599 $ 71,361 $ (54,563) $ 212,063 Net interest income 38,129 32,671 23,154 15,707 — 5,979 — 115,640 Provision for loan/lease losses 2,941 875 451 1,261 — 559 — 6,087 Net income (loss) 13,560 19,928 7,845 5,848 2,667 42,566 (50,897) 41,517 Goodwill 3,223 14,980 9,888 45,975 — 3,682 — 77,748 Intangibles — 2,810 4,154 7,034 — 1,531 — 15,529 Total assets 1,642,950 1,592,896 801,596 693,898 — 1,180,872 (619,830) 5,292,382 Nine Months Ended September 30, 2018 Total revenue $ 49,812 $ 49,301 $ 25,459 $ 7,360 $ 9,560 $ 53,395 $ (38,450) $ 156,437 Net interest income 36,629 32,149 20,579 5,701 — 7,738 5 102,801 Provision for loan/lease losses 2,784 1,682 817 475 — 5,288 — 11,046 Net income (loss) from continuing operations 13,796 14,191 6,560 2,197 2,336 28,556 (37,832) 29,804 Goodwill 3,223 14,979 9,888 45,528 — — — 73,618 Intangibles — 3,313 4,852 7,972 — — — 16,137 Total assets 1,579,327 1,354,293 734,536 623,520 — 1,038,405 (537,349) 4,792,732 |
NOTE 10 - REGULATORY CAPITAL _2
NOTE 10 - REGULATORY CAPITAL REQUIREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer* Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of September 30, 2019: Company: Total risk-based capital $ 567,977 12.22 % $ 371,904 > 8.00 % $ 488,124 > 10.50 % $ 464,880 > 10.00 % Tier 1 risk-based capital 461,899 9.94 278,928 > 6.00 395,148 > 8.50 371,904 > 8.00 Tier 1 leverage 461,899 9.02 204,868 > 4.00 204,868 > 4.00 256,085 > 5.00 Common equity Tier 1 424,102 9.12 209,196 > 4.50 325,416 > 7.00 302,172 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 177,834 11.72 % $ 121,345 > 8.00 % $ 159,265 > 10.50 % $ 151,681 > 10.00 % Tier 1 risk-based capital 163,998 10.81 91,009 > 6.00 128,929 > 8.50 121,345 > 8.00 Tier 1 leverage 163,998 9.85 66,604 > 4.00 66,604 > 4.00 83,255 > 5.00 Common equity Tier 1 163,998 10.81 68,257 > 4.50 106,177 > 7.00 98,593 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 168,158 11.64 % $ 115,524 > 8.00 % $ 151,625 > 10.50 % $ 144,405 > 10.00 % Tier 1 risk-based capital 154,769 10.72 86,643 > 6.00 122,744 > 8.50 115,524 > 8.00 Tier 1 leverage 154,769 9.99 61,993 > 4.00 61,993 > 4.00 77,491 > 5.00 Common equity Tier 1 154,769 10.72 64,982 > 4.50 101,083 > 7.00 93,863 > 6.50 Community State Bank: Total risk-based capital $ 89,088 12.92 % $ 55,147 > 8.00 % $ 72,380 > 10.50 % $ 68,933 > 10.00 % Tier 1 risk-based capital 82,399 11.95 41,360 > 6.00 58,593 > 8.50 55,147 > 8.00 Tier 1 leverage 82,399 10.35 31,846 > 4.00 31,846 > 4.00 39,808 > 5.00 Common equity Tier 1 82,399 11.95 31,020 > 4.50 48,253 > 7.00 44,807 > 6.50 Springfield First Community Bank: Total risk-based capital $ 68,371 13.16 % $ 41,561 > 8.00 % $ 54,549 > 10.50 % $ 51,951 > 10.00 % Tier 1 risk-based capital 61,328 11.80 31,171 > 6.00 44,159 > 8.50 41,561 > 8.00 Tier 1 leverage 61,328 9.67 25,375 > 4.00 25,375 > 4.00 31,719 > 5.00 Common equity Tier 1 61,328 11.80 23,378 > 4.50 36,366 > 7.00 33,768 > 6.50 * September 30, 2019 minimums reflect the fully phased-in ratios (including the capital conservation buffer). For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018: Company: Total risk-based capital $ 460,416 10.69 % $ 344,551 > 8.00 % $ 425,305 > 9.875 % $ 430,689 > 10.00 % Tier 1 risk-based capital 420,569 9.77 258,413 > 6.00 339,168 > 7.875 344,551 > 8.00 Tier 1 leverage 420,569 8.87 189,858 > 4.00 189,858 > 4.000 237,322 > 5.00 Common equity Tier 1 382,899 8.89 193,810 > 4.50 274,564 > 6.375 279,948 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 162,009 11.38 % $ 113,900 > 8.00 % $ 140,596 > 9.875 % $ 142,376 > 10.00 % Tier 1 risk-based capital 148,529 10.43 85,425 > 6.00 112,121 > 7.875 113,900 > 8.00 Tier 1 leverage 148,529 9.04 65,744 > 4.00 65,744 > 4.000 82,180 > 5.00 Common equity Tier 1 148,529 10.43 64,069 > 4.50 90,764 > 6.375 92,544 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 146,292 11.55 % $ 101,310 > 8.00 % $ 125,054 > 9.875 % $ 126,637 > 10.00 % Tier 1 risk-based capital 133,982 10.58 75,982 > 6.00 99,727 > 7.875 101,310 > 8.00 Tier 1 leverage 133,982 9.98 53,682 > 4.00 53,682 > 4.000 67,103 > 5.00 Common equity Tier 1 133,982 10.58 56,987 > 4.50 80,731 > 6.375 82,314 > 6.50 Community State Bank: Total risk-based capital $ 75,233 11.24 % $ 53,567 > 8.00 % $ 66,122 > 9.875 % $ 66,959 > 10.00 % Tier 1 risk-based capital 69,101 10.32 40,175 > 6.00 52,730 > 7.875 53,567 > 8.00 Tier 1 leverage 69,101 9.19 30,070 > 4.00 30,070 > 4.000 37,588 > 5.00 Common equity Tier 1 69,101 10.32 30,131 > 4.50 42,686 > 6.375 43,523 > 6.50 Springfield First Community Bank: Total risk-based capital $ 57,051 12.24 % $ 37,278 > 8.00 % $ 46,016 > 9.875 % $ 46,598 > 10.00 % Tier 1 risk-based capital 51,279 11.00 27,959 > 6.00 36,696 > 7.875 37,278 > 8.00 Tier 1 leverage 51,279 9.39 21,849 > 4.00 21,849 > 4.000 27,312 > 5.00 Common equity Tier 1 51,279 11.00 20,969 > 4.50 29,706 > 6.375 30,289 > 6.50 Rockford Bank & Trust Total risk-based capital $ 50,648 10.89 % $ 37,208 > 8.00 % $ 45,929 > 9.875 % $ 46,511 > 10.00 % Tier 1 risk-based capital 44,821 9.64 27,906 > 6.00 36,627 > 7.875 37,208 > 8.00 Tier 1 leverage 44,821 8.93 20,081 > 4.00 20,081 > 4.000 25,101 > 5.00 Common equity Tier 1 44,821 9.64 20,930 > 4.50 29,650 > 6.375 30,232 > 6.50 |
NOTE 1 - SUMMARY OF SIGNIFICA_3
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Sep. 30, 2019subsidiary |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of subsidiaries commercial banks | 5 |
NOTE 2 - ASSETS AND LIABILITI_3
NOTE 2 - ASSETS AND LIABILITIES HELD FOR SALE (Details) - USD ($) $ in Thousands | Aug. 13, 2019 | Sep. 30, 2019 |
ASSETS | ||
Assets held for sale | $ 465,547 | |
LIABILITIES | ||
Liabilities held for sale | 470,530 | |
Asset held-for-sale | ||
ASSETS AND LIABILITIES HELD FOR SALE | ||
Purchase price premium for intangible assets | 8.00% | |
Asset held-for-sale | RB&T | ||
ASSETS AND LIABILITIES HELD FOR SALE | ||
Purchase price premium multiplied | 0.345 | |
Purchase price premium | 14,200 | |
Total payments | 59,700 | |
ASSETS | ||
Cash and cash equivalents | 13,446 | |
Securities | 66,009 | |
Loans, net | 362,011 | |
Other assets | 24,081 | |
Assets held for sale | 465,547 | |
LIABILITIES | ||
Deposits | 451,546 | |
Borrowings | 16,157 | |
Other liabilities | 2,827 | |
Liabilities held for sale | $ 470,530 |
NOTE 3 - INVESTMENT SECURITIE_2
NOTE 3 - INVESTMENT SECURITIES (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)stateitem | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)stateitem | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)stateitem | |
Number of securities | item | 510 | 510 | |||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions | item | 31 | 31 | |||
Aggregate losses of securities (as a percent) | 0.10% | 0.10% | |||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | item | 21 | 21 | |||
Other than temporary impairment losses, investments | $ 0 | $ 0 | $ 0 | $ 0 | |
Sale of securities | 23,364 | $ 1,938 | 28,025 | $ 1,938 | |
Gain on sale | $ 143 | $ 150 | |||
Number Of Charters Owning Municipal Securities | item | 4 | ||||
Municipal Bonds | General Obligation Bonds | |||||
Number of issuers | item | 91 | 91 | 110 | ||
Other investments | $ 76,100 | $ 76,100 | $ 86,400 | ||
Number of states holding investments | state | 23 | 23 | 26 | ||
Municipal Bonds | General Obligation Bonds | Minimum | |||||
Other investments | $ 5,000 | $ 5,000 | $ 5,000 | ||
Municipal Bonds | General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | |||||
Number of states holding investments | state | 6 | 6 | 6 | ||
Municipal Bonds | Revenue Bonds | |||||
Number of issuers | item | 148 | 148 | 160 | ||
Other investments | $ 335,200 | $ 335,200 | $ 371,900 | ||
Number of states holding investments | 17 | 17 | 19 | ||
Municipal Bonds | Revenue Bonds | Minimum | |||||
Other investments | $ 5,000 | $ 5,000 | $ 5,000 | ||
Municipal Bonds | Revenue Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | |||||
Number of states holding investments | 7 | 7 | 7 |
NOTE 3 - INVESTMENT SECURITIE_3
NOTE 3 - INVESTMENT SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities held to maturity: | ||
Securities held to maturity, at amortized cost | $ 343,477 | $ 401,913 |
Securities held to maturity, gross unrealized gains | 20,122 | 5,661 |
Securities held to maturity, gross unrealized (losses) | (125) | (6,804) |
Securities held to maturity, fair value | 363,474 | 400,770 |
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 206,949 | 266,671 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 5,257 | 501 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 274 | 6,116 |
Securities available for sale, at fair value | 211,932 | 261,056 |
Debt Securities, Available-for-sale | 211,932 | 261,056 |
US States and Political Subdivisions Debt Securities | ||
Securities held to maturity: | ||
Securities held to maturity, at amortized cost | 342,427 | 400,863 |
Securities held to maturity, gross unrealized gains | 20,122 | 5,661 |
Securities held to maturity, gross unrealized (losses) | (119) | (6,803) |
Securities held to maturity, fair value | 362,430 | 399,721 |
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 47,259 | 59,069 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,653 | 180 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 10 | 703 |
Securities available for sale, at fair value | 48,902 | 58,546 |
Debt Securities, Available-for-sale | 48,902 | 58,546 |
US Government Agencies Debt Securities | ||
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 20,861 | 37,150 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 470 | 39 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 63 | 778 |
Securities available for sale, at fair value | 21,268 | 36,411 |
Debt Securities, Available-for-sale | 21,268 | 36,411 |
Residential Mortgage Backed Securities | ||
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 121,118 | 163,698 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2,962 | 182 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 200 | 4,631 |
Securities available for sale, at fair value | 123,880 | 159,249 |
Debt Securities, Available-for-sale | 123,880 | 159,249 |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, at amortized cost | 1,050 | 1,050 |
Securities held to maturity, gross unrealized (losses) | (6) | (1) |
Securities held to maturity, fair value | 1,044 | 1,049 |
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 17,711 | 6,754 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 172 | 100 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1 | 4 |
Securities available for sale, at fair value | 17,882 | 6,850 |
Debt Securities, Available-for-sale | $ 17,882 | $ 6,850 |
NOTE 3 - INVESTMENT SECURITIE_4
NOTE 3 - INVESTMENT SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities held to maturity: | ||
Securities held to maturity, less than 12 months, fair value | $ 2,081 | $ 114,750 |
Securities held to maturity, less than 12 months, gross unrealized losses | (7) | (2,188) |
Securities held to maturity, 12 months or more, fair value | 7,839 | 69,412 |
Securities held to maturity, 12 months or more, gross unrealized losses | (118) | (4,616) |
Securities held to maturity, fair value | 9,920 | 184,162 |
Securities held to maturity, gross unrealized losses | (125) | (6,804) |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 4,746 | 46,980 |
Securities available for sale, less than 12 months, gross unrealized losses | (6) | (580) |
Securities available for sale, 12 months or more, fair value | 23,417 | 179,072 |
Securities available for sale, 12 months or more, gross unrealized losses | (268) | (5,536) |
Securities available for sale, fair value | 28,163 | 226,052 |
Securities available for sale, gross unrealized losses | (274) | (6,116) |
US States and Political Subdivisions Debt Securities | ||
Securities held to maturity: | ||
Securities held to maturity, less than 12 months, fair value | 1,037 | 114,201 |
Securities held to maturity, less than 12 months, gross unrealized losses | (1) | (2,187) |
Securities held to maturity, 12 months or more, fair value | 7,839 | 69,412 |
Securities held to maturity, 12 months or more, gross unrealized losses | (118) | (4,616) |
Securities held to maturity, fair value | 8,876 | 183,613 |
Securities held to maturity, gross unrealized losses | (119) | (6,803) |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 1,686 | 28,356 |
Securities available for sale, less than 12 months, gross unrealized losses | (3) | (394) |
Securities available for sale, 12 months or more, fair value | 723 | 15,932 |
Securities available for sale, 12 months or more, gross unrealized losses | (7) | (309) |
Securities available for sale, fair value | 2,409 | 44,288 |
Securities available for sale, gross unrealized losses | (10) | (703) |
US Government Agencies Debt Securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 1,618 | 1,565 |
Securities available for sale, less than 12 months, gross unrealized losses | (1) | (34) |
Securities available for sale, 12 months or more, fair value | 2,318 | 29,605 |
Securities available for sale, 12 months or more, gross unrealized losses | (62) | (744) |
Securities available for sale, fair value | 3,936 | 31,170 |
Securities available for sale, gross unrealized losses | (63) | (778) |
Residential Mortgage Backed Securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 1,194 | 12,810 |
Securities available for sale, less than 12 months, gross unrealized losses | (1) | (148) |
Securities available for sale, 12 months or more, fair value | 20,376 | 133,535 |
Securities available for sale, 12 months or more, gross unrealized losses | (199) | (4,483) |
Securities available for sale, fair value | 21,570 | 146,345 |
Securities available for sale, gross unrealized losses | (200) | (4,631) |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, less than 12 months, fair value | 1,044 | 549 |
Securities held to maturity, less than 12 months, gross unrealized losses | (6) | (1) |
Securities held to maturity, fair value | 1,044 | 549 |
Securities held to maturity, gross unrealized losses | (6) | (1) |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 248 | 4,249 |
Securities available for sale, less than 12 months, gross unrealized losses | (1) | (4) |
Securities available for sale, fair value | 248 | 4,249 |
Securities available for sale, gross unrealized losses | $ (1) | $ (4) |
NOTE 3 - INVESTMENT SECURITIE_5
NOTE 3 - INVESTMENT SECURITIES - Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investment Securities | ||||
Proceeds from sales of securities | $ 23,364 | $ 1,938 | $ 28,025 | $ 1,938 |
Gain on Sale of Investments | 143 | 150 | ||
Gross losses from sales of securities | $ (146) | $ (206) |
NOTE 3 - INVESTMENT SECURITIE_6
NOTE 3 - INVESTMENT SECURITIES - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities held to maturity: | ||
Securities held to maturity, due in one year or less, amortized cost | $ 2,946 | |
Securities held to maturity, due in one year or less, fair value | 2,954 | |
Securities held to maturity, due after one year through five years, amortized cost | 31,055 | |
Securities held to maturity, due after one year through five years, fair value | 31,689 | |
Securities held to maturity, due after five years, amortized cost | 309,476 | |
Securities held to maturity, due after five years, fair value | 328,831 | |
Securities held to maturity, amortized cost | 343,477 | |
Securities held to maturity, fair value | 363,474 | $ 400,770 |
Securities available for sale: | ||
Securities available for sale, due in one year or less, amortized cost | 1,084 | |
Securities available for sale, Due in one year or less, fair value | 1,088 | |
Securities available for sale, due after one year through five years, amortized cost | 17,157 | |
Securities available for sale, Due after one year through five years, fair value | 17,384 | |
Securities available for sale, due after five years, amortized cost | 67,590 | |
Securities available for sale, Due after five years, fair value | 69,580 | |
Securities available for sale, single maturity, amortized cost | 85,831 | |
Securities available for sale, single maturity, fair value | 88,052 | |
Securities available for sale, amortized cost | 206,949 | 266,671 |
Securities available for sale, fair value | 211,932 | 261,056 |
Callable Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 46,766 | |
Securities available for sale, callable, fair value | 48,323 | |
US States and Political Subdivisions Debt Securities | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 362,430 | 399,721 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 47,259 | 59,069 |
Securities available for sale, fair value | 48,902 | 58,546 |
US States and Political Subdivisions Debt Securities | Callable Securities [Member] | ||
Securities held to maturity: | ||
Securities held to maturity, callable, amortized cost | 176,339 | |
Securities held to maturity, callable, fair value | 181,785 | |
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 40,262 | |
Securities available for sale, callable, fair value | 41,646 | |
Residential Mortgage Backed Securities | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 121,118 | 163,698 |
Securities available for sale, fair value | 123,880 | 159,249 |
Securities available for sale, callable, amortized cost | 121,118 | |
Securities available for sale, callable, fair value | 123,880 | |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 1,044 | 1,049 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 17,711 | 6,754 |
Securities available for sale, fair value | 17,882 | $ 6,850 |
Other Securities | Callable Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 6,504 | |
Securities available for sale, callable, fair value | $ 6,677 |
NOTE 4 - LOANS_LEASES RECEIVA_3
NOTE 4 - LOANS/LEASES RECEIVABLE (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($)item | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($)item | Sep. 30, 2019USD ($)item | Sep. 30, 2018USD ($)item | Dec. 31, 2018USD ($) | |
Loans and leases | $ 3,602,414 | $ 3,602,414 | $ 3,723,630 | |||
Loans receivable held for sale | 8,890 | 8,890 | 1,295 | |||
Loans and leases receivable loss | 0 | $ 0 | 0 | $ 0 | ||
Nonaccrual Loans/Leases | 8,231 | 8,231 | 14,260 | |||
Accruing TDRs | $ 1,700 | $ 1,700 | 6,500 | |||
Nonaccrual Loans/Leases | 4 | 5 | 9 | 11 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 172 | $ 1,299 | $ 831 | $ 4,404 | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | item | 2 | 2 | 2 | |||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 108 | $ 577 | ||||
Number of TDRs restructured and written off | item | 3 | 9 | 3 | 9 | ||
Accruing Past Due 90 Days or More | 632 | |||||
One Customer [Member] | ||||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 66 | |||||
Other Customers [Member] | ||||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 774 | |||||
Nonaccrual [Member] | ||||||
Nonaccrual Loans/Leases | item | 4 | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 121 | $ 1,300 | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | item | 3 | |||||
Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | $ 932,000 | $ 932,000 | 2,300 | |||
Accruing Past Due 90 Days or More | 496 | |||||
Residential Portfolio Segment [Member] | ||||||
Loans and leases | 245,667 | 245,667 | 290,759 | |||
Loans receivable held for sale | 8,900 | 8,900 | 1,300 | |||
Nonaccrual Loans/Leases | 1,120 | 1,120 | 1,743 | |||
Accruing Past Due 90 Days or More | 89 | |||||
Residential Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | 32 | 32 | 344 | |||
Commercial Portfolio Segment [Member] | ||||||
Loans and leases | 1,469,978 | 1,469,978 | 1,429,410 | |||
Nonaccrual Loans/Leases | 1,318 | 1,318 | 4,088 | |||
Accruing Past Due 90 Days or More | 389 | |||||
Commercial Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | 26 | 26 | 265 | |||
Accruing Past Due 90 Days or More | 389 | |||||
Commercial Portfolio Segment [Member] | m2 Lease Funds, LLC [Member] | ||||||
Loans and leases | 131,000 | 131,000 | 103,400 | |||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Loans and leases | 1,687,922 | 1,687,922 | 1,766,111 | |||
Commercial Real Estate Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | 513,000 | 513,000 | 1,400 | |||
Accruing Past Due 90 Days or More | 107 | |||||
Finance Leases Portfolio Segment [Member] | ||||||
Loans and leases | 92,307 | 92,307 | 117,969 | |||
Nonaccrual Loans/Leases | 1,397 | 1,397 | 1,761 | |||
Finance Leases Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | 304 | 304 | 321 | |||
Consumer Portfolio Segment [Member] | ||||||
Loans and leases | 106,540 | 106,540 | 119,381 | |||
Nonaccrual Loans/Leases | 623 | 623 | 611 | |||
Accruing Past Due 90 Days or More | 47 | |||||
Consumer Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | $ 57 | $ 57 | $ 3 |
NOTE 4 - LOANS_LEASES RECEIVA_4
NOTE 4 - LOANS/LEASES RECEIVABLE - Composition of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Gross loans/leases receivable | $ 3,610,270 | $ 3,732,754 | ||||
Less allowance | (36,116) | $ (41,104) | (39,847) | $ (43,077) | $ (37,545) | $ (34,355) |
Net loans/leases receivable | 3,574,154 | 3,692,907 | ||||
Plus deferred loan/lease origination costs, net of fees | 7,856 | 9,124 | ||||
Loans and leases receivable | 3,602,414 | 3,723,630 | ||||
Commercial Portfolio Segment [Member] | ||||||
Less allowance | (16,151) | (18,248) | (16,420) | (18,917) | (15,234) | (14,323) |
Loans and leases receivable | 1,469,978 | 1,429,410 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Less allowance | (15,291) | (17,363) | (17,719) | (17,716) | (15,819) | (13,963) |
Loans and leases receivable | 1,687,922 | 1,766,111 | ||||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||||||
Loans and leases receivable | 441,122 | 500,654 | ||||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||||
Loans and leases receivable | 369,123 | 236,787 | ||||
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||||||
Loans and leases receivable | 877,677 | 1,028,670 | ||||
Finance Leases Portfolio Segment [Member] | ||||||
Net minimum lease payments to be received | 130,371 | |||||
Net minimum lease receivable | 101,869 | |||||
Estimated unguaranteed residual values of leased assets | 547 | 828 | ||||
Unearned lease/residual income | (10,109) | (13,230) | ||||
Gross loans/leases receivable | 94,460 | 121,611 | ||||
Less allowance | (1,302) | (1,459) | (1,792) | (2,632) | (2,724) | (2,382) |
Net loans/leases receivable | 93,158 | 119,819 | ||||
Plus deferred loan/lease origination costs, net of fees | 2,153 | 3,642 | ||||
Loans and leases receivable | 92,307 | 117,969 | ||||
Residential Portfolio Segment [Member] | ||||||
Less allowance | (2,158) | (2,582) | (2,557) | (2,507) | (2,433) | (2,466) |
Loans and leases receivable | 245,667 | 290,759 | ||||
Consumer Portfolio Segment [Member] | ||||||
Less allowance | (1,214) | $ (1,452) | (1,359) | $ (1,305) | $ (1,335) | $ (1,221) |
Loans and leases receivable | $ 106,540 | $ 119,381 |
NOTE 4 - LOANS_LEASES RECEIVA_5
NOTE 4 - LOANS/LEASES RECEIVABLE - Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Balance at the beginning of the period | $ (8,640) | $ (5,193) | $ (10,794) | $ (6,471) |
Discount added at acquisition | (8,093) | (8,093) | ||
Reclassification of nonaccretable discount to accretable | (892) | (159) | (892) | |
Accretion recognized | 1,438 | 1,848 | 3,751 | 3,126 |
Balance at the end of the period | (7,202) | (12,330) | (7,202) | (12,330) |
PCI Loans | ||||
Balance at the beginning of the period | (151) | (142) | (667) | (191) |
Discount added at acquisition | (293) | (293) | ||
Reclassification of nonaccretable discount to accretable | (892) | (159) | (892) | |
Accretion recognized | 94 | 269 | 769 | 318 |
Balance at the end of the period | (57) | (1,058) | (57) | (1,058) |
Performing Loans | ||||
Balance at the beginning of the period | (8,489) | (5,051) | (10,127) | (6,280) |
Discount added at acquisition | (7,800) | (7,800) | ||
Accretion recognized | 1,344 | 1,579 | 2,982 | 2,808 |
Balance at the end of the period | $ (7,145) | $ (11,272) | $ (7,145) | $ (11,272) |
NOTE 4 - LOANS_LEASES RECEIVA_6
NOTE 4 - LOANS/LEASES RECEIVABLE - Aging of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current | $ 3,587,169 | $ 3,698,177 |
Accruing Past Due 90 Days or More | 632 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 8,231 | 14,260 |
Loans and leases | $ 3,602,414 | $ 3,723,630 |
Current as a percentage of total loan/lease portfolio | 99.58% | 99.32% |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0.02% | |
Nonaccrual Loans/Leases as a percentage of total loan/lease portfolio | 0.22% | 0.38% |
Loans and leases as a percentage of total loan/lease portfolio | 100.00% | 100.00% |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | $ 5,746 | $ 9,053 |
Past due as a percentage of total loan/lease portfolio | 0.16% | 0.24% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | $ 1,268 | $ 1,508 |
Past due as a percentage of total loan/lease portfolio | 0.04% | 0.04% |
Commercial Portfolio Segment [Member] | ||
Current | $ 1,466,347 | $ 1,423,406 |
Accruing Past Due 90 Days or More | 389 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,318 | 4,088 |
Loans and leases | 1,469,978 | 1,429,410 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 2,067 | 930 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 246 | 597 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and leases | 1,687,922 | 1,766,111 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Current | 440,668 | 500,138 |
Accruing Past Due 90 Days or More | 107 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 178 | 216 |
Loans and leases | 441,122 | 500,654 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Current | 368,422 | 234,704 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 319 | |
Loans and leases | 369,123 | 236,787 |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Current | 872,591 | 1,022,664 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 3,595 | 5,522 |
Loans and leases | 877,677 | 1,028,670 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 276 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loans [Member] | ||
Past Due | 701 | 1,764 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 1,491 | 484 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 193 | |
Finance Leases Portfolio Segment [Member] | ||
Current | 89,776 | 114,078 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,397 | 1,761 |
Loans and leases | 92,307 | 117,969 |
Finance Leases Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 816 | 1,642 |
Finance Leases Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 318 | 488 |
Residential Portfolio Segment [Member] | ||
Current | 243,785 | 284,844 |
Accruing Past Due 90 Days or More | 89 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,120 | 1,743 |
Loans and leases | 245,667 | 290,759 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 58 | 3,877 |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 704 | 206 |
Consumer Portfolio Segment [Member] | ||
Current | 105,580 | 118,343 |
Accruing Past Due 90 Days or More | 47 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 623 | 611 |
Loans and leases | 106,540 | 119,381 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | $ 337 | 356 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | $ 24 |
NOTE 4 - LOANS_LEASES RECEIVA_7
NOTE 4 - LOANS/LEASES RECEIVABLE - Loans Leases Nonperforming Loans Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accruing Past Due 90 Days or More | $ 632 | |
Nonaccrual Loans/Leases | $ 8,231 | 14,260 |
Accruing TDRs | 1,700 | 6,500 |
Loans and Leases Receivable, Net of Deferred Income | $ 3,602,414 | $ 3,723,630 |
Percentage of Total NPLs | 100.00% | 100.00% |
Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | $ 632 | |
Nonaccrual Loans/Leases | $ 8,231 | 14,260 |
Accruing TDRs | 763 | 3,658 |
Loans and Leases Receivable, Net of Deferred Income | $ 8,994 | $ 18,550 |
Percentage of Total NPLs | 100.00% | 100.00% |
Commercial Portfolio Segment [Member] | ||
Accruing Past Due 90 Days or More | $ 389 | |
Nonaccrual Loans/Leases | $ 1,318 | 4,088 |
Loans and Leases Receivable, Net of Deferred Income | 1,469,978 | 1,429,410 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 389 | |
Nonaccrual Loans/Leases | 1,318 | 4,088 |
Accruing TDRs | 565 | 454 |
Loans and Leases Receivable, Net of Deferred Income | $ 1,883 | $ 4,931 |
Percentage of Total NPLs | 20.94% | 26.58% |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 1,687,922 | $ 1,766,111 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Accruing Past Due 90 Days or More | 107 | |
Nonaccrual Loans/Leases | 178 | 216 |
Loans and Leases Receivable, Net of Deferred Income | 441,122 | 500,654 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Nonaccrual Loans/Leases | 319 | |
Loans and Leases Receivable, Net of Deferred Income | 369,123 | 236,787 |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 3,595 | 5,522 |
Loans and Leases Receivable, Net of Deferred Income | 877,677 | 1,028,670 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Accruing Past Due 90 Days or More | 107 | |
Nonaccrual Loans/Leases | 178 | 216 |
Loans and Leases Receivable, Net of Deferred Income | $ 178 | $ 323 |
Percentage of Total NPLs | 1.98% | 1.74% |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Construction Loans [Member] | ||
Nonaccrual Loans/Leases | $ 319 | |
Loans and Leases Receivable, Net of Deferred Income | $ 319 | |
Percentage of Total NPLs | 1.72% | |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | $ 3,595 | $ 5,522 |
Accruing TDRs | 2,984 | |
Loans and Leases Receivable, Net of Deferred Income | $ 3,595 | $ 8,506 |
Percentage of Total NPLs | 39.97% | 45.86% |
Finance Leases Portfolio Segment [Member] | ||
Nonaccrual Loans/Leases | $ 1,397 | $ 1,761 |
Loans and Leases Receivable, Net of Deferred Income | 92,307 | 117,969 |
Finance Leases Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 1,397 | 1,761 |
Accruing TDRs | 198 | 111 |
Loans and Leases Receivable, Net of Deferred Income | $ 1,595 | $ 1,872 |
Percentage of Total NPLs | 17.73% | 10.09% |
Residential Portfolio Segment [Member] | ||
Accruing Past Due 90 Days or More | $ 89 | |
Nonaccrual Loans/Leases | $ 1,120 | 1,743 |
Loans and Leases Receivable, Net of Deferred Income | 245,667 | 290,759 |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 89 | |
Nonaccrual Loans/Leases | 1,120 | 1,743 |
Accruing TDRs | 100 | |
Loans and Leases Receivable, Net of Deferred Income | $ 1,120 | $ 1,932 |
Percentage of Total NPLs | 12.45% | 10.41% |
Consumer Portfolio Segment [Member] | ||
Accruing Past Due 90 Days or More | $ 47 | |
Nonaccrual Loans/Leases | $ 623 | 611 |
Loans and Leases Receivable, Net of Deferred Income | 106,540 | 119,381 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 47 | |
Nonaccrual Loans/Leases | 623 | 611 |
Accruing TDRs | 9 | |
Loans and Leases Receivable, Net of Deferred Income | $ 623 | $ 667 |
Percentage of Total NPLs | 6.93% | 3.60% |
NOTE 4 - LOANS_LEASES RECEIVA_8
NOTE 4 - LOANS/LEASES RECEIVABLE - Allowance for Estimated Losses on Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Balance | $ 41,104 | $ 37,545 | $ 39,847 | $ 34,355 | ||
Provision for loan/lease losses | 2,012 | 6,206 | 6,087 | 11,046 | ||
Reclassification of allowance for loans and leases relating to assets held for sale. | (6,122) | (6,122) | ||||
Loans/leases charged off | (741) | (991) | (3,953) | (2,951) | ||
Recoveries on loans/leases previously charged off | 291 | 317 | 685 | 626 | ||
Balance | 36,116 | 43,077 | 36,116 | 43,077 | ||
Provision for assets held for sale | 428 | 428 | ||||
Allowance for impaired loans/leases | $ 704 | $ 3,659 | ||||
Allowance for nonimpaired loans/leases | 35,412 | 36,188 | ||||
Less allowance for estimated losses on loans/leases | 41,104 | 37,545 | 39,847 | 34,355 | 36,116 | 39,847 |
Impaired loans/leases | 9,178 | 20,203 | ||||
Nonimpaired loans/leases | 3,593,236 | 3,703,427 | ||||
Loans and leases | $ 3,602,414 | $ 3,723,630 | ||||
Allowance as a percentage of impaired loans/leases | 7.67% | 18.11% | ||||
Allowance as a percentage of nonimpaired loans/leases | 0.99% | 0.98% | ||||
Total allowance as a percentage of total loans/leases | 1.00% | 1.07% | ||||
Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provision for loan/lease losses | 1,584 | 5,659 | ||||
Commercial Portfolio Segment [Member] | ||||||
Balance | 18,248 | 15,234 | 16,420 | 14,323 | ||
Provision for loan/lease losses | 3,699 | 5,284 | ||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (2,814) | (2,814) | ||||
Loans/leases charged off | (349) | (87) | (876) | (911) | ||
Recoveries on loans/leases previously charged off | 68 | 71 | 300 | 221 | ||
Balance | 16,151 | 18,917 | 16,151 | 18,917 | ||
Allowance for impaired loans/leases | $ 160 | $ 973 | ||||
Allowance for nonimpaired loans/leases | 15,991 | 15,447 | ||||
Less allowance for estimated losses on loans/leases | 18,248 | 15,234 | 16,420 | 14,323 | 16,151 | 16,420 |
Impaired loans/leases | 1,764 | 4,499 | ||||
Nonimpaired loans/leases | 1,468,214 | 1,424,911 | ||||
Loans and leases | $ 1,469,978 | $ 1,429,410 | ||||
Allowance as a percentage of impaired loans/leases | 9.07% | 21.62% | ||||
Allowance as a percentage of nonimpaired loans/leases | 1.09% | 1.08% | ||||
Total allowance as a percentage of total loans/leases | 1.10% | 1.15% | ||||
Commercial Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provision for loan/lease losses | 998 | 3,120 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Balance | 17,363 | 15,819 | 17,719 | 13,963 | ||
Provision for loan/lease losses | 2,254 | 4,091 | ||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (2,392) | (2,392) | ||||
Loans/leases charged off | (387) | (1,369) | (388) | |||
Recoveries on loans/leases previously charged off | 100 | 30 | 164 | 50 | ||
Balance | 15,291 | 17,716 | 15,291 | 17,716 | ||
Allowance for impaired loans/leases | $ 374 | $ 2,124 | ||||
Allowance for nonimpaired loans/leases | 14,917 | 15,595 | ||||
Less allowance for estimated losses on loans/leases | 17,363 | 15,819 | 17,719 | 13,963 | 15,291 | 17,719 |
Impaired loans/leases | 4,148 | 10,447 | ||||
Nonimpaired loans/leases | 1,683,774 | 1,755,664 | ||||
Loans and leases | $ 1,687,922 | $ 1,766,111 | ||||
Allowance as a percentage of impaired loans/leases | 9.02% | 20.33% | ||||
Allowance as a percentage of nonimpaired loans/leases | 0.89% | 0.89% | ||||
Total allowance as a percentage of total loans/leases | 0.91% | 1.00% | ||||
Commercial Real Estate Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provision for loan/lease losses | 220 | 1,168 | ||||
Finance Leases Portfolio Segment [Member] | ||||||
Balance | 1,459 | 2,724 | 1,792 | 2,382 | ||
Provision for loan/lease losses | 125 | 1,418 | ||||
Loans/leases charged off | (351) | (428) | (1,501) | (1,506) | ||
Recoveries on loans/leases previously charged off | 114 | 211 | 155 | 338 | ||
Balance | 1,302 | 2,632 | 1,302 | 2,632 | ||
Allowance for impaired loans/leases | $ 59 | $ 194 | ||||
Allowance for nonimpaired loans/leases | 1,243 | 1,598 | ||||
Less allowance for estimated losses on loans/leases | 1,459 | 2,724 | 1,792 | 2,382 | 1,302 | 1,792 |
Impaired loans/leases | 1,581 | 2,249 | ||||
Nonimpaired loans/leases | 90,726 | 115,720 | ||||
Loans and leases | $ 92,307 | $ 117,969 | ||||
Allowance as a percentage of impaired loans/leases | 3.73% | 8.63% | ||||
Allowance as a percentage of nonimpaired loans/leases | 1.37% | 1.38% | ||||
Total allowance as a percentage of total loans/leases | 1.41% | 1.52% | ||||
Finance Leases Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provision for loan/lease losses | 80 | 856 | ||||
Residential Portfolio Segment [Member] | ||||||
Balance | 2,582 | 2,433 | 2,557 | 2,466 | ||
Provision for loan/lease losses | 132 | 150 | ||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (628) | (628) | ||||
Loans/leases charged off | (37) | (58) | (109) | (110) | ||
Recoveries on loans/leases previously charged off | 31 | 1 | ||||
Balance | 2,158 | 2,507 | 2,158 | 2,507 | ||
Allowance for impaired loans/leases | $ 27 | $ 257 | ||||
Allowance for nonimpaired loans/leases | 2,131 | 2,300 | ||||
Less allowance for estimated losses on loans/leases | 2,582 | 2,433 | 2,557 | 2,466 | 2,158 | 2,557 |
Impaired loans/leases | 1,062 | 2,110 | ||||
Nonimpaired loans/leases | 244,605 | 288,649 | ||||
Loans and leases | $ 245,667 | $ 290,759 | ||||
Allowance as a percentage of impaired loans/leases | 2.54% | 12.18% | ||||
Allowance as a percentage of nonimpaired loans/leases | 0.87% | 0.80% | ||||
Total allowance as a percentage of total loans/leases | 0.88% | 0.88% | ||||
Residential Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provision for loan/lease losses | 241 | 309 | ||||
Consumer Portfolio Segment [Member] | ||||||
Balance | 1,452 | 1,335 | 1,359 | 1,221 | ||
Provision for loan/lease losses | (4) | 104 | ||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (288) | (288) | ||||
Loans/leases charged off | (4) | (31) | (99) | (36) | ||
Recoveries on loans/leases previously charged off | 9 | 5 | 36 | 16 | ||
Balance | 1,214 | 1,305 | 1,214 | 1,305 | ||
Allowance for impaired loans/leases | $ 84 | $ 111 | ||||
Allowance for nonimpaired loans/leases | 1,130 | 1,248 | ||||
Less allowance for estimated losses on loans/leases | 1,452 | $ 1,335 | 1,359 | $ 1,221 | 1,214 | 1,359 |
Impaired loans/leases | 623 | 898 | ||||
Nonimpaired loans/leases | 105,917 | 118,483 | ||||
Loans and leases | $ 106,540 | $ 119,381 | ||||
Allowance as a percentage of impaired loans/leases | 13.48% | 12.38% | ||||
Allowance as a percentage of nonimpaired loans/leases | 1.07% | 1.05% | ||||
Total allowance as a percentage of total loans/leases | 1.14% | 1.14% | ||||
Consumer Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provision for loan/lease losses | $ 45 | $ 206 |
NOTE 4 - LOANS_LEASES RECEIVA_9
NOTE 4 - LOANS/LEASES RECEIVABLE - Impaired Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Recorded investment with no specific allowance recorded | $ 4,945 | $ 4,945 | $ 7,938 | |
Unpaid principal balance with no specific allowance recorded | 5,117 | 5,117 | 10,706 | |
Average recorded investment with no specific allowance recorded | 4,656 | $ 6,654 | 4,076 | |
Interest income recognized with no specific allowance recorded | 19 | 29 | 59 | |
Interest income recognized for cash payments received with no specific allowance recorded | 19 | 29 | 59 | |
Recorded investment with specific allowance recorded | 4,233 | 4,233 | 12,265 | |
Unpaid principal balance with specific allowance recorded | 4,233 | 4,233 | 12,621 | |
Average recorded investment with specific allowance recorded | 4,112 | 14,006 | 2,770 | |
Interest income recognized with specific allowance recorded | 13 | 2 | ||
Interest income recognized for cash payments received with specific allowance recorded | 13 | 2 | ||
Recorded investment | 9,178 | 9,178 | 20,203 | |
Unpaid principal balance | 9,350 | 9,350 | 23,327 | |
Related allowance | 704 | 704 | 3,659 | |
Average recorded investment | 8,768 | 20,660 | 6,846 | |
Interest income recognized | 19 | 42 | 61 | |
Interest income recognized for cash payments received | 19 | 42 | 61 | |
Commercial Portfolio Segment [Member] | ||||
Recorded investment with no specific allowance recorded | 1,545 | 1,545 | 1,846 | |
Unpaid principal balance with no specific allowance recorded | 1,585 | 1,585 | 4,540 | |
Average recorded investment with no specific allowance recorded | 1,433 | 2,795 | 1,026 | |
Interest income recognized with no specific allowance recorded | 6 | 17 | 18 | |
Interest income recognized for cash payments received with no specific allowance recorded | 6 | 17 | 18 | |
Recorded investment with specific allowance recorded | 219 | 219 | 2,653 | |
Unpaid principal balance with specific allowance recorded | 219 | 219 | 2,653 | |
Average recorded investment with specific allowance recorded | 141 | 3,401 | 102 | |
Interest income recognized with specific allowance recorded | 2 | |||
Interest income recognized for cash payments received with specific allowance recorded | 2 | |||
Recorded investment | 1,764 | 1,764 | 4,499 | |
Unpaid principal balance | 1,804 | 1,804 | 7,193 | |
Related allowance | 160 | 160 | 973 | |
Average recorded investment | 1,574 | 6,196 | 1,128 | |
Interest income recognized | 6 | 19 | 18 | |
Interest income recognized for cash payments received | 6 | 19 | 18 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||||
Recorded investment with no specific allowance recorded | 40 | 40 | 106 | |
Unpaid principal balance with no specific allowance recorded | 56 | 56 | 106 | |
Average recorded investment with no specific allowance recorded | 42 | 289 | 21 | |
Recorded investment with specific allowance recorded | 121 | 121 | 304 | |
Unpaid principal balance with specific allowance recorded | 121 | 121 | 660 | |
Average recorded investment with specific allowance recorded | 123 | 141 | 127 | |
Recorded investment | 161 | 161 | 410 | |
Unpaid principal balance | 177 | 177 | 766 | |
Related allowance | 18 | 18 | 39 | |
Average recorded investment | 165 | 430 | 148 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
Recorded investment with no specific allowance recorded | 507 | |||
Unpaid principal balance with no specific allowance recorded | 507 | |||
Recorded investment with specific allowance recorded | 149 | |||
Unpaid principal balance with specific allowance recorded | 149 | |||
Average recorded investment with specific allowance recorded | 5,484 | |||
Recorded investment | 656 | |||
Unpaid principal balance | 656 | |||
Related allowance | 33 | |||
Average recorded investment | 5,484 | |||
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||||
Recorded investment with no specific allowance recorded | 733 | 733 | 1,804 | |
Unpaid principal balance with no specific allowance recorded | 733 | 733 | 1,804 | |
Average recorded investment with no specific allowance recorded | 739 | 1,009 | 751 | |
Interest income recognized with no specific allowance recorded | 7 | 9 | 22 | |
Interest income recognized for cash payments received with no specific allowance recorded | 7 | 9 | 22 | |
Recorded investment with specific allowance recorded | 3,254 | 3,254 | 7,577 | |
Unpaid principal balance with specific allowance recorded | 3,254 | 3,254 | 7,577 | |
Average recorded investment with specific allowance recorded | 3,254 | 3,848 | 1,995 | |
Interest income recognized with specific allowance recorded | 8 | |||
Interest income recognized for cash payments received with specific allowance recorded | 8 | |||
Recorded investment | 3,987 | 3,987 | 9,381 | |
Unpaid principal balance | 3,987 | 3,987 | 9,381 | |
Related allowance | 356 | 356 | 2,052 | |
Average recorded investment | 3,993 | 4,857 | 2,746 | |
Interest income recognized | 7 | 17 | 22 | |
Interest income recognized for cash payments received | 7 | 17 | 22 | |
Finance Leases Portfolio Segment [Member] | ||||
Recorded investment with no specific allowance recorded | 1,440 | 1,440 | 1,929 | |
Unpaid principal balance with no specific allowance recorded | 1,440 | 1,440 | 1,929 | |
Average recorded investment with no specific allowance recorded | 1,359 | 1,780 | 1,246 | |
Interest income recognized with no specific allowance recorded | 6 | 3 | 19 | |
Interest income recognized for cash payments received with no specific allowance recorded | 6 | 3 | 19 | |
Recorded investment with specific allowance recorded | 141 | 141 | 320 | |
Unpaid principal balance with specific allowance recorded | 141 | 141 | 320 | |
Average recorded investment with specific allowance recorded | 120 | 558 | 108 | |
Interest income recognized with specific allowance recorded | 2 | |||
Interest income recognized for cash payments received with specific allowance recorded | 2 | |||
Recorded investment | 1,581 | 1,581 | 2,249 | |
Unpaid principal balance | 1,581 | 1,581 | 2,249 | |
Related allowance | 59 | 59 | 194 | |
Average recorded investment | 1,479 | 2,338 | 1,354 | |
Interest income recognized | 6 | 3 | 21 | |
Interest income recognized for cash payments received | 6 | 3 | 21 | |
Residential Portfolio Segment [Member] | ||||
Recorded investment with no specific allowance recorded | 648 | 648 | 984 | |
Unpaid principal balance with no specific allowance recorded | 764 | 764 | 1,058 | |
Average recorded investment with no specific allowance recorded | 540 | 666 | 522 | |
Recorded investment with specific allowance recorded | 414 | 414 | 1,126 | |
Unpaid principal balance with specific allowance recorded | 414 | 414 | 1,126 | |
Average recorded investment with specific allowance recorded | 390 | 461 | 381 | |
Interest income recognized with specific allowance recorded | 3 | |||
Interest income recognized for cash payments received with specific allowance recorded | 3 | |||
Recorded investment | 1,062 | 1,062 | 2,110 | |
Unpaid principal balance | 1,178 | 1,178 | 2,184 | |
Related allowance | 27 | 27 | 257 | |
Average recorded investment | 930 | 1,127 | 903 | |
Interest income recognized | 3 | |||
Interest income recognized for cash payments received | 3 | |||
Consumer Portfolio Segment [Member] | ||||
Recorded investment with no specific allowance recorded | 539 | 539 | 762 | |
Unpaid principal balance with no specific allowance recorded | 539 | 539 | 762 | |
Average recorded investment with no specific allowance recorded | 543 | 115 | 510 | |
Recorded investment with specific allowance recorded | 84 | 84 | 136 | |
Unpaid principal balance with specific allowance recorded | 84 | 84 | 136 | |
Average recorded investment with specific allowance recorded | 84 | 113 | 57 | |
Recorded investment | 623 | 623 | 898 | |
Unpaid principal balance | 623 | 623 | 898 | |
Related allowance | 84 | 84 | $ 111 | |
Average recorded investment | $ 627 | $ 228 | $ 567 |
NOTE 4 - LOANS_LEASES RECEIV_10
NOTE 4 - LOANS/LEASES RECEIVABLE - Loans by Internally Assigned Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans and leases | $ 3,602,414 | $ 3,723,630 |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,469,978 | 1,429,410 |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | 1,338,954 | 1,326,006 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Loans and leases | 1,306,314 | 1,294,418 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Loans and leases | 14,043 | 23,302 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Loans and leases | 18,597 | 8,286 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and leases | 1,687,922 | 1,766,111 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 441,122 | 500,654 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and leases | 369,123 | 236,787 |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 877,677 | 1,028,670 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 441,122 | 500,654 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Construction Loans [Member] | ||
Loans and leases | 369,123 | 236,787 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 877,677 | 1,028,670 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 435,761 | 487,949 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Construction Loans [Member] | ||
Loans and leases | 368,659 | 230,473 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 861,561 | 1,008,626 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 2,888 | 9,599 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Construction Loans [Member] | ||
Loans and leases | 40 | 3,848 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 6,224 | 5,309 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 2,473 | 3,106 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Construction Loans [Member] | ||
Loans and leases | 424 | 2,466 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 9,892 | 14,735 |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | $ 3,026,876 | $ 3,092,117 |
As a % of Total | 100.00% | 100.00% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Pass [Member] | ||
Loans and leases | $ 2,972,295 | $ 3,021,466 |
As a % of Total | 98.19% | 97.72% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Special Mention [Member] | ||
Loans and leases | $ 23,195 | $ 42,058 |
As a % of Total | 0.77% | 1.36% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Substandard [Member] | ||
Loans and leases | $ 31,386 | $ 28,593 |
As a % of Total | 1.04% | 0.92% |
NOTE 4 - LOANS_LEASES RECEIV_11
NOTE 4 - LOANS/LEASES RECEIVABLE - Leases By Delinquency Status (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans and leases | $ 3,602,414 | $ 3,723,630 |
Nonperforming Financial Instruments [Member] | ||
Loans and leases | 8,994 | 18,550 |
Commercial Lease Residential And Consumer Portfolio Segments [Member] | Delinquency Status [Member] | ||
Loans and leases | 575,538 | 631,513 |
Commercial Lease Residential And Consumer Portfolio Segments [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 571,467 | 626,351 |
Commercial Lease Residential And Consumer Portfolio Segments [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 4,071 | 5,162 |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,469,978 | 1,429,410 |
Commercial Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 131,024 | 103,404 |
Commercial Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 130,291 | 102,713 |
Commercial Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 733 | 691 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 1,883 | 4,931 |
Finance Leases Portfolio Segment [Member] | ||
Loans and leases | 92,307 | 117,969 |
Finance Leases Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 92,307 | 117,969 |
Finance Leases Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 90,712 | 116,097 |
Finance Leases Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 1,595 | 1,872 |
Finance Leases Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 1,595 | 1,872 |
Residential Portfolio Segment [Member] | ||
Loans and leases | 245,667 | 290,759 |
Residential Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 245,667 | 290,759 |
Residential Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 244,547 | 288,827 |
Residential Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 1,120 | 1,932 |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 1,120 | 1,932 |
Consumer Portfolio Segment [Member] | ||
Loans and leases | 106,540 | 119,381 |
Consumer Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 106,540 | 119,381 |
Consumer Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 105,917 | 118,714 |
Consumer Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 623 | 667 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | $ 623 | $ 667 |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Delinquency Status [Member] | ||
As a % of Total | 100.00% | 100.00% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
As a % of Total | 99.29% | 99.18% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
As a % of Total | 0.71% | 0.82% |
NOTE 4 - LOANS_LEASES RECEIV_12
NOTE 4 - LOANS/LEASES RECEIVABLE - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | |
Number of Loans / Leases | 4 | 5 | 9 | 11 |
Pre-Modification Recorded Investment | $ 172 | $ 1,299 | $ 881 | $ 4,404 |
Post-Modification Recorded Investment | 172 | 1,299 | 831 | 4,404 |
Specific Allowance | $ 56 | $ 334 | $ 76 | $ 1,150 |
Payment Deferral [Member] | ||||
Number of Loans / Leases | loan | 3 | 5 | 7 | 8 |
Pre-Modification Recorded Investment | $ 116 | $ 1,299 | $ 238 | $ 1,393 |
Post-Modification Recorded Investment | $ 116 | 1,299 | 238 | 1,393 |
Specific Allowance | $ 334 | $ 20 | $ 334 | |
Payment Deferral [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||||
Number of Loans / Leases | loan | 2 | 2 | ||
Pre-Modification Recorded Investment | $ 981 | $ 981 | ||
Post-Modification Recorded Investment | 981 | 981 | ||
Specific Allowance | $ 60 | $ 60 | ||
Extended Maturity [Member] | ||||
Number of Loans / Leases | loan | 1 | 1 | 3 | |
Pre-Modification Recorded Investment | $ 56 | $ 56 | $ 3,011 | |
Post-Modification Recorded Investment | 56 | 56 | 3,011 | |
Specific Allowance | $ 56 | $ 56 | $ 816 | |
Extended Maturity [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||||
Number of Loans / Leases | loan | 2 | |||
Pre-Modification Recorded Investment | $ 2,976 | |||
Post-Modification Recorded Investment | 2,976 | |||
Specific Allowance | $ 816 | |||
Principal Forgiveness [Member] | ||||
Number of Loans / Leases | loan | 1 | |||
Pre-Modification Recorded Investment | $ 587 | |||
Post-Modification Recorded Investment | $ 537 | |||
Finance Leases Portfolio Segment [Member] | Payment Deferral [Member] | ||||
Number of Loans / Leases | loan | 3 | 2 | 6 | 4 |
Pre-Modification Recorded Investment | $ 116 | $ 44 | $ 219 | $ 92 |
Post-Modification Recorded Investment | $ 116 | $ 44 | 219 | $ 92 |
Specific Allowance | $ 20 | |||
Finance Leases Portfolio Segment [Member] | Extended Maturity [Member] | ||||
Number of Loans / Leases | loan | 1 | |||
Pre-Modification Recorded Investment | $ 35 | |||
Post-Modification Recorded Investment | $ 35 | |||
Commercial Portfolio Segment [Member] | Payment Deferral [Member] | ||||
Number of Loans / Leases | loan | 1 | 1 | 1 | |
Pre-Modification Recorded Investment | $ 274 | $ 19 | $ 274 | |
Post-Modification Recorded Investment | 274 | $ 19 | 274 | |
Specific Allowance | $ 274 | $ 274 | ||
Commercial Portfolio Segment [Member] | Principal Forgiveness [Member] | ||||
Number of Loans / Leases | loan | 1 | |||
Pre-Modification Recorded Investment | $ 587 | |||
Post-Modification Recorded Investment | $ 537 | |||
Residential Portfolio Segment [Member] | Payment Deferral [Member] | ||||
Number of Loans / Leases | loan | 1 | |||
Pre-Modification Recorded Investment | $ 46 | |||
Post-Modification Recorded Investment | $ 46 | |||
Consumer Portfolio Segment [Member] | Extended Maturity [Member] | ||||
Number of Loans / Leases | loan | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 56 | $ 56 | ||
Post-Modification Recorded Investment | 56 | 56 | ||
Specific Allowance | $ 56 | $ 56 |
NOTE 5 - DERIVATIVES - Summary
NOTE 5 - DERIVATIVES - Summary of Interest Rate Swaps Derivatives (Details) - Designated as Hedging Instrument [Member] - Other Liabilities. - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Interest rate swap | ||
Notional Amount | $ 39,000 | |
Fair Value - Liability | $ (4,891) | $ (1,151) |
Receive Rate | 4.40% | |
Pay Rate | 5.24% | |
QCR Holdings Statutory Trust II | ||
Notional Amount | $ 10,000 | |
Fair Value - Liability | $ (1,265) | (298) |
Receive Rate | 4.95% | |
Pay Rate | 5.85% | |
QCR Holdings Statutory Trust III | ||
Notional Amount | $ 8,000 | |
Fair Value - Liability | $ (1,012) | (239) |
Receive Rate | 4.95% | |
Pay Rate | 5.85% | |
QCR Holdings Statutory Trust V | ||
Notional Amount | $ 10,000 | |
Fair Value - Liability | $ (1,229) | (288) |
Receive Rate | 3.85% | |
Pay Rate | 4.54% | |
Community National Statutory Trust II | ||
Notional Amount | $ 3,000 | |
Fair Value - Liability | $ (378) | (89) |
Receive Rate | 4.33% | |
Pay Rate | 5.17% | |
Community National Statutory Trust III | ||
Notional Amount | $ 3,500 | |
Fair Value - Liability | $ (441) | (104) |
Receive Rate | 3.87% | |
Pay Rate | 4.75% | |
Guaranty Bankshares Statutory Trust I | ||
Notional Amount | $ 4,500 | |
Fair Value - Liability | $ (566) | $ (133) |
Receive Rate | 3.87% | |
Pay Rate | 4.75% |
NOTE 5 - DERIVATIVES - Signific
NOTE 5 - DERIVATIVES - Significantly Impact of operations (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fee Income On Derivative Contracts | $ 20,900 | $ 3,700 | $ 10,600 |
Not Designated as Hedging Instrument [Member] | Interest rate swap | |||
Derivative Asset, Notional Amount | 694,928 | 445,022 | |
Derivative Assets | 102,956 | 22,196 | |
Derivative Liability, Notional Amount | 694,928 | 445,022 | |
Derivative Liabilities | $ 102,956 | $ 22,196 |
NOTE 6 - BORROWINGS (Details)
NOTE 6 - BORROWINGS (Details) - USD ($) $ in Thousands | Aug. 15, 2019 | Feb. 12, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||||
FHLB term advances | $ 30,200 | $ 30,228 | |||||
Net proceeds after deducting underwriting discount and estimated expenses | $ 63,400 | 63,393 | |||||
Fixed rate | 5.375% | ||||||
Fixed term | 5 years | ||||||
Unamortized debt issuance costs | 1,500 | 1,500 | |||||
Losses on debt extinguishment, net | $ 148 | 148 | |||||
Outstanding balance | $ 9,000 | ||||||
London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis points | 282.00% | ||||||
Revolving line of credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit | $ 20,000 | $ 10,000 | |||||
Fixed rate | 4.34% | 4.34% | |||||
Outstanding amount line of credit | $ 0 | $ 0 | $ 9,000 | ||||
Outstanding balance | $ 9,000 | ||||||
Revolving line of credit | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis points | 2.25% | 2.50% | |||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Term advances for original maturities | 1.50% | 1.50% | |||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Term advances for original maturities | 2.97% | 2.97% | |||||
Subordinated Notes Due February 15, 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | 65,000 | ||||||
Term Notes Member | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 21,300 | ||||||
Wholesale structured repurchase agreements | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 10,000 | ||||||
First wholesale structured repurchase agreements | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 5,000 | ||||||
Fixed rate | 2.58% | ||||||
Second wholesale structured repurchase agreements | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 20,000 | ||||||
Fixed rate | 2.46% |
NOTE 7 - EARNINGS PER SHARE - B
NOTE 7 - EARNINGS PER SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share | ||||||||
Net income | $ 15,095 | $ 13,504 | $ 12,918 | $ 8,809 | $ 10,445 | $ 10,550 | $ 41,517 | $ 29,804 |
Basic earnings per common share (in dollars per share) | $ 0.96 | $ 0.56 | $ 2.64 | $ 2.06 | ||||
Diluted earnings per common share (in dollars per share) | $ 0.94 | $ 0.55 | $ 2.60 | $ 2.02 | ||||
Weighted average common shares outstanding (in shares) | 15,739,430 | 15,625,123 | 15,715,788 | 14,477,783 | ||||
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan** (in shares) | 237,312 | 297,201 | 230,232 | 308,994 | ||||
Weighted average common and common equivalent shares outstanding (in shares) | 15,976,742 | 15,922,324 | 15,946,020 | 14,786,777 |
NOTE 8 - FAIR VALUE (Details)
NOTE 8 - FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities available for sale, at fair value | $ 211,932 | $ 261,056 |
Assets Fair Value | 8,427 | 19,785 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 8,427 | 19,785 |
Fair Value, Measurements, Recurring [Member] | ||
Assets Fair Value | 314,888 | 283,252 |
Liabilities Fair Value | 107,847 | 23,347 |
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||
Interest rate | 102,956 | 22,196 |
Derivative Liabilities | 107,847 | 23,347 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets Fair Value | 314,888 | 283,252 |
Liabilities Fair Value | 107,847 | 23,347 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||
Interest rate | 102,956 | 22,196 |
Derivative Liabilities | 107,847 | 23,347 |
US Government Agencies Debt Securities | ||
Securities available for sale, at fair value | 21,268 | 36,411 |
US Government Agencies Debt Securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 21,268 | 36,411 |
US Government Agencies Debt Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 21,268 | 36,411 |
Residential Mortgage Backed Securities | ||
Securities available for sale, at fair value | 123,880 | 159,249 |
Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 123,880 | 159,249 |
Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 123,880 | 159,249 |
US States and Political Subdivisions Debt Securities | ||
Securities available for sale, at fair value | 48,902 | 58,546 |
US States and Political Subdivisions Debt Securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 48,902 | 58,546 |
US States and Political Subdivisions Debt Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 48,902 | 58,546 |
Other Securities | ||
Securities available for sale, at fair value | 17,882 | 6,850 |
Other Securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 17,882 | 6,850 |
Other Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 17,882 | 6,850 |
Impaired Loans Leases [Member] | ||
Assets Fair Value | 3,839 | 9,657 |
Impaired Loans Leases [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 3,839 | 9,657 |
Other Real Estate Owned [Member] | ||
Assets Fair Value | 4,588 | 10,128 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | $ 4,588 | $ 10,128 |
NOTE 8 - FAIR VALUE - Quantitat
NOTE 8 - FAIR VALUE - Quantitative Information About Level Fair Value Measurements (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)item | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)item | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Fair value | $ 8,427 | $ 8,427 | $ 19,785 | ||
Transfers of assets or liabilities between Levels 1, 2 and 3 | 0 | $ 0 | 0 | $ 0 | |
Impaired Loans Leases [Member] | |||||
Fair value | $ 3,839 | $ 3,839 | 9,657 | ||
Valuation technique | qcrh:ValuationTechniqueAppraisalOfCollateralMember | qcrh:ValuationTechniqueAppraisalOfCollateralMember | |||
Unobservable input | us-gaap:MeasurementInputAppraisedValueMember | us-gaap:MeasurementInputAppraisedValueMember | |||
Impaired Loans Leases [Member] | Minimum | |||||
Impaired loans/leases, measurement input | item | (10) | (10) | |||
Impaired Loans Leases [Member] | Maximum | |||||
Impaired loans/leases, measurement input | item | (30) | (30) | |||
Other Real Estate Owned [Member] | |||||
Fair value | $ 4,588 | $ 4,588 | 10,128 | ||
Valuation technique, OREO | qcrh:ValuationTechniqueAppraisalOfCollateralMember | qcrh:ValuationTechniqueAppraisalOfCollateralMember | |||
Unobservable input, OREO | us-gaap:MeasurementInputAppraisedValueMember | us-gaap:MeasurementInputAppraisedValueMember | |||
Other Real Estate Owned [Member] | Minimum | |||||
OREO, measurement input | item | 0 | 0 | |||
Other Real Estate Owned [Member] | Maximum | |||||
OREO, measurement input | item | (35) | (35) | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair value | $ 8,427 | $ 8,427 | 19,785 | ||
Fair Value, Inputs, Level 3 [Member] | Impaired Loans Leases [Member] | |||||
Fair value | 3,839 | 3,839 | 9,657 | ||
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | |||||
Fair value | $ 4,588 | $ 4,588 | $ 10,128 |
NOTE 8 - FAIR VALUE - Carrying
NOTE 8 - FAIR VALUE - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 12, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Interest-bearing deposits at financial institutions | $ 187,963 | $ 133,198 | |
Securities held to maturity, fair value | 363,474 | 400,770 | |
Securities available for sale, at fair value | 211,932 | 261,056 | |
Subordinated notes | $ 63,400 | 63,393 | |
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | |||
Cash and due from banks | 91,671 | 85,523 | |
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||
Cash and due from banks | 91,671 | 85,523 | |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | |||
Federal funds sold | 9,300 | 26,398 | |
Securities held to maturity, fair value | 343,477 | 401,913 | |
Securities available for sale, at fair value | 211,932 | 261,056 | |
Loans/leases receivable, net | 3,570,599 | 3,683,965 | |
Cash and cash equivalents | 13,446 | ||
Securities | 66,009 | ||
Loans, net | 362,011 | ||
Short-term borrowings | 18,526 | 28,774 | |
FHLB advances | 195,800 | 266,492 | |
Other borrowings | 67,250 | ||
Subordinated notes | 68,334 | 4,782 | |
Junior subordinated debentures | 37,797 | 37,670 | |
Deposits | 451,546 | ||
Borrowings | 16,157 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Non-maturity Deposits [Member] | |||
Deposits | 3,050,033 | 3,002,327 | |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Time Deposits [Member] | |||
Deposits | 752,208 | 974,704 | |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Interest rate cap | |||
Interest rate | 459 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Interest rate swap | |||
Interest rate | 102,956 | 22,196 | |
Interest rate swaps - liabilities | 107,847 | 23,347 | |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Interest-bearing Deposits [Member] | |||
Interest-bearing deposits at financial institutions | 187,963 | 133,198 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Federal funds sold | 9,300 | 26,398 | |
Securities held to maturity, fair value | 363,474 | 400,770 | |
Securities available for sale, at fair value | 211,932 | 261,056 | |
Loans/leases receivable, net | 3,495,905 | 3,639,329 | |
Cash and cash equivalents | 13,446 | ||
Securities | 68,389 | ||
Loans, net | 354,438 | ||
Short-term borrowings | 18,526 | 28,774 | |
FHLB advances | 195,697 | 265,926 | |
Other borrowings | 67,770 | ||
Subordinated notes | 68,521 | 4,933 | |
Junior subordinated debentures | 30,494 | 29,992 | |
Deposits | 447,869 | ||
Borrowings | 16,149 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Non-maturity Deposits [Member] | |||
Deposits | 3,050,033 | 3,002,327 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Time Deposits [Member] | |||
Deposits | 748,305 | 968,906 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Interest rate cap | |||
Interest rate | 459 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Interest rate swap | |||
Interest rate | 102,956 | 22,196 | |
Interest rate swaps - liabilities | 107,847 | 23,347 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Interest-bearing Deposits [Member] | |||
Interest-bearing deposits at financial institutions | 187,963 | 133,198 | |
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | |||
Loans/leases receivable, net | 3,555 | 8,942 | |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | |||
Loans/leases receivable, net | $ 3,839 | $ 9,657 |
NOTE 9 - BUSINESS SEGMENT INF_3
NOTE 9 - BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | Sep. 30, 2019USD ($)subsidiary |
Number of subsidiaries commercial banks | 5 |
Commercial Banking Segment [Member] | |
Number of subsidiaries commercial banks | 4 |
Wealth Management Segment [Member] | |
Number of subsidiaries commercial banks | 4 |
Assets allocated | $ | $ 0 |
NOTE 9 - BUSINESS SEGMENT INF_4
NOTE 9 - BUSINESS SEGMENT INFORMATION - Selected Financial Information on the Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Total revenue | $ 76,723 | $ 58,640 | $ 212,063 | $ 156,437 | |||||
Net interest income | 40,719 | 38,314 | 115,640 | 102,801 | |||||
Provision | 2,012 | 6,206 | 6,087 | 11,046 | |||||
Net income (loss) | 15,095 | $ 13,504 | $ 12,918 | 8,809 | $ 10,445 | $ 10,550 | 41,517 | 29,804 | |
Goodwill | 77,748 | 73,618 | 77,748 | 73,618 | $ 77,832 | ||||
Intangibles | 15,529 | 16,137 | 15,529 | 16,137 | 17,450 | ||||
Total assets | 5,292,382 | 4,792,732 | 5,292,382 | 4,792,732 | $ 4,949,710 | ||||
Intersegment Eliminations [Member] | |||||||||
Total revenue | (22,036) | (12,707) | (54,563) | (38,450) | |||||
Net interest income | 5 | 5 | |||||||
Net income (loss) | (19,280) | (12,467) | (50,897) | (37,832) | |||||
Total assets | (619,830) | (537,349) | (619,830) | (537,349) | |||||
Commercial Banking Segment [Member] | Quad City Bank and Trust Company [Member] | Operating Segments [Member] | |||||||||
Total revenue | 21,230 | 17,322 | 60,148 | 49,812 | |||||
Net interest income | 13,357 | 12,218 | 38,129 | 36,629 | |||||
Provision | 948 | 409 | 2,941 | 2,784 | |||||
Net income (loss) | 4,870 | 4,827 | 13,560 | 13,796 | |||||
Goodwill | 3,223 | 3,223 | 3,223 | 3,223 | |||||
Total assets | 1,642,950 | 1,579,327 | 1,642,950 | 1,579,327 | |||||
Commercial Banking Segment [Member] | Cedar Rapids Bank and Trust [Member] | Operating Segments [Member] | |||||||||
Total revenue | 25,707 | 16,800 | 68,526 | 49,301 | |||||
Net interest income | 11,478 | 10,833 | 32,671 | 32,149 | |||||
Provision | 150 | 453 | 875 | 1,682 | |||||
Net income (loss) | 7,900 | 4,869 | 19,928 | 14,191 | |||||
Goodwill | 14,980 | 14,979 | 14,980 | 14,979 | |||||
Intangibles | 2,810 | 3,313 | 2,810 | 3,313 | |||||
Total assets | 1,592,896 | 1,354,293 | 1,592,896 | 1,354,293 | |||||
Commercial Banking Segment [Member] | Community State Bank [Member] | Operating Segments [Member] | |||||||||
Total revenue | 11,596 | 8,889 | 30,596 | 25,459 | |||||
Net interest income | 8,894 | 7,101 | 23,154 | 20,579 | |||||
Provision | 150 | 20 | 451 | 817 | |||||
Net income (loss) | 3,482 | 2,533 | 7,845 | 6,560 | |||||
Goodwill | 9,888 | 9,888 | 9,888 | 9,888 | |||||
Intangibles | 4,154 | 4,852 | 4,154 | 4,852 | |||||
Total assets | 801,596 | 734,536 | 801,596 | 734,536 | |||||
Commercial Banking Segment [Member] | SPRINGFIELD BANCSHARES, INC | Operating Segments [Member] | |||||||||
Total revenue | 8,351 | 7,360 | 23,396 | 7,360 | |||||
Net interest income | 5,056 | 5,701 | 15,707 | 5,701 | |||||
Provision | 276 | 475 | 1,261 | 475 | |||||
Net income (loss) | 2,116 | 2,198 | 5,848 | 2,197 | |||||
Goodwill | 45,975 | 45,528 | 45,975 | 45,528 | |||||
Intangibles | 7,034 | 7,972 | 7,034 | 7,972 | |||||
Total assets | 693,898 | 623,520 | 693,898 | 623,520 | |||||
Wealth Management Segment [Member] | Operating Segments [Member] | |||||||||
Total revenue | 4,122 | 3,255 | 12,599 | 9,560 | |||||
Net income (loss) | 926 | 768 | 2,667 | 2,336 | |||||
Other Segments [Member] | Operating Segments [Member] | |||||||||
Total revenue | 27,753 | 17,721 | 71,361 | 53,395 | |||||
Net interest income | 1,934 | 2,456 | 5,979 | 7,738 | |||||
Provision | 488 | 4,849 | 559 | 5,288 | |||||
Net income (loss) | 15,081 | 6,081 | 42,566 | 28,556 | |||||
Goodwill | 3,682 | 3,682 | |||||||
Intangibles | 1,531 | 1,531 | |||||||
Total assets | $ 1,180,872 | $ 1,038,405 | $ 1,180,872 | $ 1,038,405 |
NOTE 10 - REGULATORY CAPITAL _3
NOTE 10 - REGULATORY CAPITAL REQUIREMENTS - Capital Requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Total risk-based capital, actual, amount | $ 567,977 | $ 460,416 |
Total risk-based capital, actual, ratio | 12.22% | 10.69% |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 371,904 | $ 344,551 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 488,124 | $ 425,305 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50% | 9.875% |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 464,880 | $ 430,689 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 risk-based capital, actual, amount | $ 461,899 | $ 420,569 |
Tier 1 risk-based capital, actual, ratio | 9.94% | 9.77% |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 278,928 | $ 258,413 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 395,148 | $ 339,168 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50% | 7.875% |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 371,904 | $ 344,551 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Tier 1 leverage, actual, amount | $ 461,899 | $ 420,569 |
Tier 1 leverage, actual, ratio | 9.02% | 8.87% |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 204,868 | $ 189,858 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 204,868 | $ 189,858 |
Tier 1 leverage for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 256,085 | $ 237,322 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity Tier 1, actual, amount | $ 424,102 | $ 382,899 |
Common equity Tier 1, actual ratio | 9.12% | 8.89% |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 209,196 | $ 193,810 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 325,416 | $ 274,564 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 6.375% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 302,172 | $ 279,948 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Quad City Bank and Trust Company [Member] | ||
Total risk-based capital, actual, amount | $ 177,834 | $ 162,009 |
Total risk-based capital, actual, ratio | 11.72% | 11.38% |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 121,345 | $ 113,900 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 159,265 | $ 140,596 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50% | 9.875% |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 151,681 | $ 142,376 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 risk-based capital, actual, amount | $ 163,998 | $ 148,529 |
Tier 1 risk-based capital, actual, ratio | 10.81% | 10.43% |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 91,009 | $ 85,425 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 128,929 | $ 112,121 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50% | 7.875% |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 121,345 | $ 113,900 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Tier 1 leverage, actual, amount | $ 163,998 | $ 148,529 |
Tier 1 leverage, actual, ratio | 9.85% | 9.04% |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 66,604 | $ 65,744 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 66,604 | $ 65,744 |
Tier 1 leverage for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 83,255 | $ 82,180 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity Tier 1, actual, amount | $ 163,998 | $ 148,529 |
Common equity Tier 1, actual ratio | 10.81% | 10.43% |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 68,257 | $ 64,069 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 106,177 | $ 90,764 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 6.375% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 98,593 | $ 92,544 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Cedar Rapids Bank and Trust [Member] | ||
Total risk-based capital, actual, amount | $ 168,158 | $ 146,292 |
Total risk-based capital, actual, ratio | 11.64% | 11.55% |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 115,524 | $ 101,310 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 151,625 | $ 125,054 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50% | 9.875% |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 144,405 | $ 126,637 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 risk-based capital, actual, amount | $ 154,769 | $ 133,982 |
Tier 1 risk-based capital, actual, ratio | 10.72% | 10.58% |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 86,643 | $ 75,982 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 122,744 | $ 99,727 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50% | 7.875% |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 115,524 | $ 101,310 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Tier 1 leverage, actual, amount | $ 154,769 | $ 133,982 |
Tier 1 leverage, actual, ratio | 9.99% | 9.98% |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 61,993 | $ 53,682 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 61,993 | $ 53,682 |
Tier 1 leverage for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 77,491 | $ 67,103 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity Tier 1, actual, amount | $ 154,769 | $ 133,982 |
Common equity Tier 1, actual ratio | 10.72% | 10.58% |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 64,982 | $ 56,987 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 101,083 | $ 80,731 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 6.375% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 93,863 | $ 82,314 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Community State Bank [Member] | ||
Total risk-based capital, actual, amount | $ 89,088 | $ 75,233 |
Total risk-based capital, actual, ratio | 12.92% | 11.24% |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 55,147 | $ 53,567 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 72,380 | $ 66,122 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50% | 9.875% |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 68,933 | $ 66,959 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 risk-based capital, actual, amount | $ 82,399 | $ 69,101 |
Tier 1 risk-based capital, actual, ratio | 11.95% | 10.32% |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 41,360 | $ 40,175 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 58,593 | $ 52,730 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50% | 7.875% |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 55,147 | $ 53,567 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Tier 1 leverage, actual, amount | $ 82,399 | $ 69,101 |
Tier 1 leverage, actual, ratio | 10.35% | 9.19% |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 31,846 | $ 30,070 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 31,846 | $ 30,070 |
Tier 1 leverage for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 39,808 | $ 37,588 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity Tier 1, actual, amount | $ 82,399 | $ 69,101 |
Common equity Tier 1, actual ratio | 11.95% | 10.32% |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 31,020 | $ 30,131 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 48,253 | $ 42,686 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 6.375% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 44,807 | $ 43,523 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Springfield First Community Bank [Member] | ||
Total risk-based capital, actual, amount | $ 68,371 | $ 57,051 |
Total risk-based capital, actual, ratio | 13.16% | 12.24% |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 41,561 | $ 37,278 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 54,549 | $ 46,016 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50% | 9.875% |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 51,951 | $ 46,598 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 risk-based capital, actual, amount | $ 61,328 | $ 51,279 |
Tier 1 risk-based capital, actual, ratio | 11.80% | 11.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 31,171 | $ 27,959 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 44,159 | $ 36,696 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50% | 7.875% |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 41,561 | $ 37,278 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Tier 1 leverage, actual, amount | $ 61,328 | $ 51,279 |
Tier 1 leverage, actual, ratio | 9.67% | 9.39% |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 25,375 | $ 21,849 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 25,375 | $ 21,849 |
Tier 1 leverage for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 31,719 | $ 27,312 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Common equity Tier 1, actual, amount | $ 61,328 | $ 51,279 |
Common equity Tier 1, actual ratio | 11.80% | 11.00% |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 23,378 | $ 20,969 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 36,366 | $ 29,706 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 6.375% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 33,768 | $ 30,289 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Rockford Bank and Trust [Member] | ||
Total risk-based capital, actual, amount | $ 50,648 | |
Total risk-based capital, actual, ratio | 10.89% | |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 37,208 | |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | |
Total risk-based capital for capital adequacy purposes, amount | $ 45,929 | |
Total risk-based capital for capital adequacy purposes, ratio | 9.875% | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 46,511 | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10.00% | |
Tier 1 risk-based capital, actual, amount | $ 44,821 | |
Tier 1 risk-based capital, actual, ratio | 9.64% | |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 27,906 | |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 36,627 | |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 7.875% | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 37,208 | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8.00% | |
Tier 1 leverage, actual, amount | $ 44,821 | |
Tier 1 leverage, actual, ratio | 8.93% | |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 20,081 | |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | |
Tier 1 leverage for capital adequacy purposes, amount | $ 20,081 | |
Tier 1 leverage for capital adequacy purposes, ratio | 4.00% | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 25,101 | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5.00% | |
Common equity Tier 1, actual, amount | $ 44,821 | |
Common equity Tier 1, actual ratio | 9.64% | |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 20,930 | |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | |
Common equity Tier 1 for capital adequacy purposes, amount | $ 29,650 | |
Common equity Tier 1 for capital adequacy purposes, ratio | 6.375% | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 30,232 | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% |