Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 0-22208 | |
Entity Registrant Name | QCR HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 42-1397595 | |
Entity Address, Address Line One | 3551 7th Street | |
Entity Address, City or Town | Moline | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 61265 | |
City Area Code | 309 | |
Local Phone Number | 736-3580 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $1.00 Par Value | |
Trading Symbol | QCRH | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 15,793,357 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000906465 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 68,932 | $ 76,254 |
Federal funds sold | 530 | 9,800 |
Interest-bearing deposits at financial institutions | 302,138 | 147,891 |
Securities held to maturity, at amortized cost | 434,892 | 400,646 |
Securities available for sale, at fair value | 347,196 | 210,695 |
Total securities | 782,088 | 611,341 |
Loans receivable held for sale | 8,811 | 3,673 |
Loans/leases receivable held for investment | 4,239,166 | 3,686,532 |
Gross loans/leases receivable | 4,247,977 | 3,690,205 |
Less allowance for estimated losses on loans/leases | (79,582) | (36,001) |
Net loans/leases receivable | 4,168,395 | 3,654,204 |
Bank-owned life insurance | 60,126 | 58,834 |
Premises and equipment, net | 72,001 | 73,859 |
Restricted investment securities | 19,009 | 23,252 |
Other real estate owned, net | 125 | 4,129 |
Goodwill | 74,066 | 74,748 |
Intangibles | 11,902 | 14,970 |
Derivatives | 236,381 | 87,827 |
Assets held for sale | 11,966 | |
Other assets | 68,867 | 59,975 |
Total assets | 5,864,560 | 4,909,050 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing | 1,175,085 | 777,224 |
Interest-bearing | 3,497,183 | 3,133,827 |
Total deposits | 4,672,268 | 3,911,051 |
Short-term borrowings | 30,430 | 13,423 |
Federal Home Loan Bank advances | 40,000 | 159,300 |
Subordinated notes | 118,577 | 68,394 |
Junior subordinated debentures | 37,955 | 37,838 |
Derivatives | 244,510 | 88,437 |
Liabilities held for sale | 5,003 | |
Other liabilities | 148,207 | 90,253 |
Total liabilities | 5,291,947 | 4,373,699 |
Stockholders' Equity: | ||
Preferred stock, $1 par value; shares authorized 250,000 September 2020 and December 2019 - no shares issued or outstanding | ||
Common stock, $1 par value; shares authorized 20,000,000 September 2020 - 15,792,357 shares issued and outstanding December 2019 - 15,828,098 shares issued and outstanding | 15,792 | 15,828 |
Additional paid-in capital | 275,122 | 274,785 |
Retained earnings | 283,480 | 245,836 |
Accumulated other comprehensive income (loss): | ||
Securities available for sale | 7,817 | 2,817 |
Derivatives | (9,598) | (3,915) |
Total stockholders' equity | 572,613 | 535,351 |
Total liabilities and stockholders' equity | $ 5,864,560 | $ 4,909,050 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
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) | 15,792,357 | 15,828,098 |
Common stock, outstanding (in shares) | 15,792,357 | 15,828,098 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest and dividend income: | ||||
Loans/leases, including fees | $ 44,768 | $ 50,406 | $ 130,542 | $ 143,488 |
Securities: | ||||
Taxable | 1,938 | 1,682 | 5,714 | 5,026 |
Nontaxable | 3,842 | 3,443 | 10,865 | 10,461 |
Interest-bearing deposits at financial institutions | 92 | 951 | 587 | 3,042 |
Restricted investment securities | 249 | 293 | 795 | 891 |
Federal funds sold | 1 | 42 | 19 | 191 |
Total interest and dividend income | 50,890 | 56,817 | 148,522 | 163,099 |
Interest expense: | ||||
Deposits | 4,484 | 13,394 | 19,457 | 39,697 |
Short-term borrowings | 11 | 97 | 81 | 275 |
Federal Home Loan Bank advances | 211 | 1,023 | 1,007 | 2,685 |
Other borrowings | 512 | |||
Subordinated notes | 1,031 | 1,003 | 3,019 | 2,561 |
Junior subordinated debentures | 572 | 581 | 1,715 | 1,729 |
Total interest expense | 6,309 | 16,098 | 25,279 | 47,459 |
Net interest income | 44,581 | 40,719 | 123,243 | 115,640 |
Provision for loan/lease losses | 20,342 | 2,012 | 48,624 | 6,087 |
Net interest income after provision for loan/lease losses | 24,239 | 38,707 | 74,619 | 109,553 |
Noninterest income: | ||||
Revenue | 88,849 | 76,723 | 230,303 | 212,063 |
Gains on sales of residential real estate loans, net | 1,370 | 890 | 3,218 | 1,748 |
Gains on sales of government guaranteed portions of loans, net | 519 | 589 | ||
Swap fee income | 26,688 | 9,797 | 53,419 | 20,886 |
Securities gains (losses), net | 1,802 | (3) | 1,867 | (56) |
Earnings on bank-owned life insurance | 502 | 489 | 1,443 | 1,441 |
Other | 1,482 | 1,204 | 3,345 | 3,562 |
Total noninterest income | 37,959 | 19,906 | 81,781 | 48,964 |
Noninterest expense: | ||||
Salaries and employee benefits | 25,999 | 24,215 | 65,822 | 67,843 |
Occupancy and equipment expense | 3,807 | 3,860 | 11,587 | 11,087 |
Professional and data processing fees | 3,758 | 4,030 | 10,773 | 9,811 |
Post-acquisition compensation, transition and integration costs | 884 | 189 | 1,727 | |
Disposition costs | 192 | 626 | ||
FDIC insurance, other insurance and regulatory fees | 1,301 | 542 | 2,892 | 2,432 |
Loan/lease expense | 403 | 221 | 970 | 748 |
Net cost of (income from) and gains/losses on operations of other real estate | 16 | 2,078 | (303) | 3,557 |
Advertising and marketing | 750 | 1,056 | 1,984 | 2,878 |
Bank service charges | 488 | 502 | 1,493 | 1,494 |
Losses on liability extinguishment | 1,874 | 148 | 2,450 | 148 |
Correspondent banking expense | 205 | 209 | 633 | 619 |
Intangibles amortization | 531 | 560 | 1,628 | 1,706 |
Goodwill impairment | 500 | |||
Loss on sale of subsidiary | 305 | 305 | ||
Other | 1,209 | 1,640 | 3,842 | 4,891 |
Total noninterest expenses | 40,838 | 39,945 | 105,391 | 108,941 |
Net income before income taxes | 21,360 | 18,668 | 51,009 | 49,576 |
Federal and state income tax expense | 4,016 | 3,573 | 8,698 | 8,059 |
Net income | $ 17,344 | $ 15,095 | $ 42,311 | $ 41,517 |
Basic earnings per common share (in dollars per share) | $ 1.10 | $ 0.96 | $ 2.68 | $ 2.64 |
Diluted earnings per common share (in dollars per share) | $ 1.09 | $ 0.94 | $ 2.65 | $ 2.60 |
Weighted average common shares outstanding (in shares) | 15,767,152 | 15,739,430 | 15,770,335 | 15,715,788 |
Weighted average common and common equivalent shares outstanding (in shares) | 15,923,578 | 15,976,742 | 15,945,832 | 15,946,020 |
Cash dividends declared per common share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
Trust department fees | ||||
Noninterest income: | ||||
Revenue | $ 2,280 | $ 2,340 | $ 6,819 | $ 7,194 |
Investment advisory and management fees | ||||
Noninterest income: | ||||
Revenue | 1,266 | 1,782 | 4,392 | 5,406 |
Deposit service fees | ||||
Noninterest income: | ||||
Revenue | 1,403 | 1,813 | 4,166 | 5,025 |
Debit card fees | ||||
Noninterest income: | ||||
Revenue | 946 | 886 | 2,479 | 2,591 |
Correspondent banking fees | ||||
Noninterest income: | ||||
Revenue | $ 220 | $ 189 | $ 633 | $ 578 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 17,344 | $ 15,095 | $ 42,311 | $ 41,517 |
Other comprehensive income (loss): | ||||
Unrealized holding gains arising during the period before tax | 585 | 1,827 | 8,467 | 10,639 |
Less reclassification adjustment for gains (losses) included in net income before tax | 1,802 | (3) | 1,867 | (56) |
Unrealized gains (losses) on securities available for sale | (1,217) | 1,830 | 6,600 | 10,695 |
Unrealized holding losses arising during the period before tax | 445 | (1,159) | (7,903) | (4,101) |
Less reclassification adjustment for caplet amortization before tax | (149) | (384) | (291) | |
Unrealized gains (losses) on derivatives | 296 | (1,159) | (7,519) | (3,810) |
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 | (921) | 768 | (919) | 6,982 |
Tax expense | (307) | 224 | (236) | 1,852 |
Other comprehensive income (loss), net of tax | (614) | 544 | (683) | 5,130 |
Comprehensive income | $ 16,730 | $ 15,639 | $ 41,628 | $ 46,647 |
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, 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 and restricted stock units of common stock, net of restricted stock units withheld for payment for taxes | 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 and restricted stock units of common stock, net of restricted stock units withheld for payment for taxes | 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 |
Impact of adoption of ASU 2016-01 | 245,836 | ||||
Balance at Dec. 31, 2019 | 15,828 | 274,785 | 245,836 | (1,098) | 535,351 |
Net income | 11,228 | 11,228 | |||
Other comprehensive income (loss), net of tax | (3,691) | (3,691) | |||
Common cash dividends declared | (942) | (942) | |||
Repurchase and cancellation of 100,932 shares of common stock as a result of share repurchase program | (101) | (1,844) | (1,835) | (3,780) | |
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 6 | 208 | 214 | ||
Issuance of shares of common stock as a result of stock options exercised | 32 | 274 | 306 | ||
Stock-based compensation expense | 641 | 641 | |||
Restricted stock awards and restricted stock units of common stock, net of restricted stock units withheld for payment for taxes | 10 | (8) | 2 | ||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (1) | (189) | (190) | ||
Balance at Mar. 31, 2020 | 15,774 | 273,867 | 254,287 | (4,789) | 539,139 |
Balance at Dec. 31, 2019 | 15,828 | 274,785 | 245,836 | (1,098) | 535,351 |
Net income | 42,311 | ||||
Other comprehensive income (loss), net of tax | (683) | ||||
Balance at Sep. 30, 2020 | 15,792 | 275,122 | 283,480 | (1,781) | 572,613 |
Balance at Mar. 31, 2020 | 15,774 | 273,867 | 254,287 | (4,789) | 539,139 |
Net income | 13,739 | 13,739 | |||
Other comprehensive income (loss), net of tax | 3,622 | 3,622 | |||
Common cash dividends declared | (945) | (945) | |||
Issuance of shares of common stock as a result of the acquisition, net of issuance cost | 16 | 462 | 478 | ||
Issuance of shares of common stock as a result of stock options exercised | 1 | 9 | 10 | ||
Stock-based compensation expense | 423 | 423 | |||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (446) | (446) | |||
Balance at Jun. 30, 2020 | 15,791 | 274,315 | 267,081 | (1,167) | 556,020 |
Net income | 17,344 | 17,344 | |||
Other comprehensive income (loss), net of tax | (614) | (614) | |||
Common cash dividends declared | (945) | (945) | |||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 6 | 161 | 167 | ||
Issuance of shares of common stock as a result of stock options exercised | 1 | 23 | 24 | ||
Stock-based compensation expense | 472 | 472 | |||
Balance at Sep. 30, 2020 | 15,792 | 275,122 | $ 283,480 | $ (1,781) | 572,613 |
Impact of adoption of ASU 2016-01 | 283,480 | ||||
Exchange of shares in connection with payroll taxes for restricted stock and in connection with stock options exercised | $ 6 | $ (151) | $ (145) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
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 |
Repurchase and cancellation of common stock as a result of share repurchase program (in shares) | 100,932 | |||||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan (in shares) | 6,310 | 16,413 | 5,553 | 5,674 | 11,346 | 4,446 |
Issuance of shares of common stock as s result of stock options exercised (in shares) | 1,123 | 975 | 31,729 | 12,438 | 2,414 | 25,238 |
Restricted stock awards (in shares) | 10,300 | 4,769 | 12,719 | |||
Exchange of shares of common stock in connection with stock options exercised and restricted stock vested (in shares) | 5,687 | 513 | 1,012 | 589 | 1,032 | 5,169 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | $ 42,311 | $ 41,517 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 4,006 | 3,889 | |||
Provision for loan/lease losses | $ 20,342 | $ 2,012 | 48,624 | 6,087 | |
Stock-based compensation expense | 1,536 | 1,869 | |||
Deferred compensation expense accrued | 2,660 | 2,087 | |||
Losses (gains) on other real estate owned, net | (298) | 3,205 | |||
Amortization of premiums on securities, net | 728 | 1,339 | |||
Caplet amortization | 383 | ||||
Securities (gains) losses, net | (1,867) | 56 | |||
Loans originated for sale | (172,282) | (104,824) | |||
Proceeds on sales of loans | 170,362 | 97,916 | |||
Gains on sales of residential real estate loans | (1,370) | (890) | (3,218) | (1,748) | |
Gains on sales of government guaranteed portions of loans | (519) | (589) | |||
Loss on liability extinguishment, net | 1,874 | 148 | 2,450 | 148 | |
Gains on sales of premises and equipment | (13) | (67) | |||
Amortization of intangibles | 531 | 560 | 1,628 | 1,706 | |
Accretion of acquisition fair value adjustments, net | (2,194) | (3,413) | |||
Increase in cash value of bank-owned life insurance | (1,443) | (1,441) | |||
Loss on sale of subsidiary | 305 | 305 | |||
Goodwill impairment | 500 | ||||
Increase in other assets | (8,351) | (1,953) | |||
Decrease in other liabilities | 43,489 | 336 | |||
Net cash provided by operating activities | 129,316 | 46,120 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Net decrease in federal funds sold | 9,270 | 17,098 | |||
Net increase in interest-bearing deposits at financial institutions | (154,247) | (57,180) | |||
Proceeds from sales of other real estate owned | 4,353 | 840 | |||
Activity in securities portfolio: | |||||
Purchases | (255,500) | (28,119) | |||
Calls, maturities and redemptions | 38,461 | 9,074 | |||
Paydowns | 33,870 | 36,649 | |||
Sales | 28,579 | 33,128 | |||
Activity in restricted investment securities: | |||||
Purchases | (4,600) | (5,682) | |||
Redemptions | 8,843 | 5,006 | |||
Proceeds from the liquidation of bank-owned life insurance | 10,999 | ||||
Net increase in loans/leases originated and held for investment | (555,315) | (237,286) | |||
Purchase of premises and equipment | (2,250) | (8,755) | |||
Proceeds from sales of premises and equipment | 94 | 146 | |||
Net cash transfered in sale of subsidiary | 349 | ||||
Net cash (used in) investing activities | (837,792) | (235,081) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net increase in deposit accounts | 731,374 | 276,960 | |||
Net increase (decrease) in short-term borrowings | 17,007 | (9,091) | |||
Activity in Federal Home Loan Bank advances: | |||||
Term advances | 125,000 | 25,000 | |||
Calls and maturities | (81,600) | (35,000) | |||
Net change in short-term and overnight advances | (109,300) | (15,965) | |||
Prepayments | (55,274) | (30,228) | |||
Activity in other borrowings: | |||||
Calls, maturities and scheduled principal payments | (11,937) | ||||
Prepayments | (46,313) | ||||
Paydown of revolving line of credit | (9,000) | ||||
Prepayments on brokered and public time deposits | 29,359 | ||||
Proceeds from subordinated notes | 50,000 | 63,393 | |||
Payment of cash dividends on common stock | (2,831) | (2,822) | |||
Proceeds from issuance of common stock, net | 1,199 | 1,143 | |||
Repurchase and cancellation of shares | (3,780) | ||||
Net cash provided by financing activities | 701,154 | 206,140 | |||
Net increase in cash and due from banks | (7,322) | 17,179 | |||
Cash and due from banks, beginning | 76,254 | 85,523 | $ 85,523 | ||
Cash and due from banks, ending | 68,932 | $ 102,702 | 68,932 | 102,702 | 76,254 |
Supplemental disclosure of cash flow information, cash payments (receipts) for: | |||||
Interest | 26,920 | 45,826 | |||
Income/franchise taxes | 16,713 | (769) | |||
Supplemental schedule of noncash investing activities: | |||||
Change in accumulated other comprehensive income, unrealized gains on securities available for sale and derivative instruments, net | (683) | 5,130 | |||
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (491) | (189) | |||
Transfers of loans to other real estate owned | 51 | 1,049 | |||
Due to broker for purchases of securities | 8,550 | ||||
Increase in the fair value of back-to-back interest rate swap assets and liabilities | 151,398 | 80,760 | |||
Dividends payable | 945 | $ 944 | |||
Consideration received | 1,328 | 1,328 | |||
Assets Sold: | |||||
Total assets sold | 11,966 | ||||
Liabilities Sold: | |||||
Total liabilities sold | $ 5,003 | ||||
Net assets sold | 1,633 | 1,633 | |||
Loss on sale of the Bates Companies: | (305) | (305) | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Bates Companies [Member] | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Loss on sale of subsidiary | 305 | ||||
Supplemental schedule of noncash investing activities: | |||||
Consideration received | 448 | 448 | |||
Assets Sold: | |||||
Cash and due from banks | 349 | 349 | |||
Premises and equipment, net | 19 | 19 | |||
Other assets | 2,211 | 2,211 | |||
Total assets sold | 2,579 | 2,579 | |||
Liabilities Sold: | |||||
Other liabilities | 946 | 946 | |||
Total liabilities sold | $ 946 | 946 | |||
Forgiveness of earn-out consideration | 880 | ||||
Loss on sale of the Bates Companies: | $ (305) |
NOTE 1 - SUMMARY OF SIGNIFICANT
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation 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, 2020 are not necessarily indicative of the results expected for the year ending December 31, 2020, 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 AOCI: Accumulated other comprehensive income (loss) AFS: Available for sale HTM: Held to maturity ASC: Accounting Standards Codification LRP: Loan Relief Program ASU: Accounting Standards Update m2: m2 Lease Funds, LLC Bates Companies: Bates Financial Advisors, Inc., Bates MSELF: Main Street Expanded Loan Facility Financial Services, Inc., Bates Securities, Inc. and MSNLF: Main Street New Loan Facility Bates Financial Group, Inc. NIM: Net interest margin BOLI: Bank-owned life insurance NPA: Nonperforming asset Caps: Interest rate cap derivatives NPL: Nonperforming loan CARES Act: Coronavirus Aid, Relief and Economy OREO: Other real estate owned Security Act OTTI: Other-than-temporary impairment CDI: Core deposit intangible PCI: Purchased credit impaired CECL: Current Expected Credit Losses PPP: Paycheck Protection Program Community National: Community National Bancorporation Provision: Provision for loan/lease losses COVID-19: Coronavirus Disease 2019 QCBT: Quad City Bank & Trust Company CRBT: Cedar Rapids Bank & Trust Company RB&T: Rockford Bank & Trust Company CRE: Commercial real estate ROAA: Return on Average Assets CSB: Community State Bank SBA: U.S. Small Business Administration C&I: Commercial and industrial SEC: Securities and Exchange Commission EPS: Earnings per share SFCB: Springfield First Community Bank Exchange Act: Securities Exchange Act of 1934, as Springfield Bancshares: Springfield Bancshares, Inc. amended TA: Tangible assets FASB: Financial Accounting Standards Board TCE: Tangible common equity FDIC: Federal Deposit Insurance Corporation TDRs: Troubled debt restructurings FHLB: Federal Home Loan Bank TEY: Tax equivalent yield FRB: Federal Reserve Bank of Chicago The Company: QCR Holdings, Inc. GAAP: Generally Accepted Accounting Principles 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 four commercial banks: QCBT, CRBT, CSB and SFCB. 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. All material intercompany transactions and balances have been eliminated in consolidation. On November 30, 2019, the Company sold substantially all of the assets and transferred substantially all of the deposits and certain other liabilities of the Company’s wholly-owned subsidiary, RB&T. The financial results of RB&T prior to its sale are included in this report. See Note 2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for additional information about the sale. On August 12, 2020, the Company sold of all the issued and outstanding capital stock of the Bates Companies, wholly-owned subsidiaries of the Company. See Note 10 to the Consolidated Financial Statements for additional information about the sale. Recent accounting developments Financial Instruments – Credit Losses Risks and Uncertainties: securing the Company’s loans. As a result, the Company anticipates that its asset quality and results of operations have been adversely affected, as described in further detail in this report. In light of the economic impact that COVID-19 has had on the Company, management concluded that factors such as the decline in macroeconomic conditions led to the occurrence of a triggering event during the first quarter of 2020. Therefore an interim impairment test over goodwill was performed as of March 31, 2020. When such an assessment is performed, if the Company conclude that all or a portion of goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. Such a charge would have no impact on tangible capital or regulatory capital. Based upon the results of the interim goodwill assessment during the first quarter of 2020, the Company concluded that an impairment did not exist on the bank reporting units as of the time of the assessment. There was no occurrence of a triggering event during the second or third quarter of 2020; therefore no impairment test over goodwill was required. |
NOTE 2 - INVESTMENT SECURITIES
NOTE 2 - INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
INVESTMENT SECURITIES | NOTE 2– INVESTMENT SECURITIES The amortized cost and fair value of investment securities as of September 30, 2020 and December 31, 2019 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) September 30, 2020: Securities HTM: Municipal securities $ 433,842 $ 26,292 $ (984) $ 459,150 Other securities 1,050 — (1) 1,049 $ 434,892 $ 26,292 $ (985) $ 460,199 Securities AFS: U.S. govt. sponsored agency securities $ 17,791 $ 667 $ (21) $ 18,437 Residential mortgage-backed and related securities 128,281 6,158 (292) 134,147 Municipal securities 132,545 3,497 (809) 135,233 Asset-backed securities 39,696 1,108 (139) 40,665 Other securities 18,550 164 — 18,714 $ 336,863 $ 11,594 $ (1,261) $ 347,196 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2019: Securities HTM: Municipal securities $ 399,596 $ 26,042 $ (143) $ 425,495 Other securities 1,050 — — 1,050 $ 400,646 $ 26,042 $ (143) $ 426,545 Securities AFS: U.S. govt. sponsored agency securities $ 19,872 $ 283 $ (77) $ 20,078 Residential mortgage-backed and related securities 118,724 2,045 (182) 120,587 Municipal securities 46,659 1,602 (4) 48,257 Asset-backed securities 16,958 — (71) 16,887 Other securities 4,749 138 (1) 4,886 $ 206,962 $ 4,068 $ (335) $ 210,695 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, 2020 and December 31, 2019, 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, 2020: Securities HTM: Municipal securities $ 33,252 $ (984) $ — $ — $ 33,252 $ (984) Other securities 1,049 (1) — — 1,049 (1) $ 34,301 $ (985) $ — $ — $ 34,301 $ (985) Securities AFS: U.S. govt. sponsored agency securities $ 3,243 $ (21) $ — $ — $ 3,243 $ (21) Residential mortgage-backed and related securities 31,124 (292) — — 31,124 (292) Municipal securities 27,277 (809) — — 27,277 (809) Asset-backed securities 16,796 (139) — — 16,796 (139) Other securities — — — — — — $ 78,440 $ (1,261) $ — $ — $ 78,440 $ (1,261) 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, 2019: Securities HTM: Municipal securities $ 509 $ (1) $ 10,047 $ (142) $ 10,556 $ (143) Other securities 550 — — — 550 — $ 1,059 $ (1) $ 10,047 $ (142) $ 11,106 $ (143) Securities AFS: U.S. govt. sponsored agency securities $ 1,431 $ (21) $ 2,117 $ (56) $ 3,548 $ (77) Residential mortgage-backed and related securities 2,263 (17) 17,862 (165) 20,125 (182) Municipal securities — — 724 (4) 724 (4) Asset-backed securities 16,886 (71) — — 16,886 (71) Other securities 249 (1) — — 249 (1) $ 20,829 $ (110) $ 20,703 $ (225) $ 41,532 $ (335) At September 30, 2020, the investment portfolio included 647 securities. Of this number, 73 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 0.3% of the total amortized cost of the portfolio. Of these 73 securities, there were no securities that had an unrealized loss for twelve months or more. Asset-backed securities are comprised of collateralized loan obligations, which are debt securities backed by pools of senior secured commercial loans to a diverse group of companies across a broad spectrum of industries. At September 30, 2020, the Company only owned collateralized loan obligations that were AAA rated. 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, 2020 and 2019. All sales of securities for the three and nine months ended September 30, 2020 and 2019 were securities identified as AFS. Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (dollars in thousands) Proceeds from sales of securities $ 22,252 $ 23,364 $ 28,579 $ 28,025 Gross gains from sales of securities 1,802 143 1,936 150 Gross losses from sales of securities — (146) (69) (206) The amortized cost and fair value of securities as of September 30, 2020 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities and asset-backed securities may differ from contractual maturities because the residential mortgages underlying the 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 $ 3,509 $ 3,525 Due after one year through five years 32,354 32,909 Due after five years 399,029 423,765 $ 434,892 $ 460,199 Securities AFS: Due in one year or less $ 7,795 $ 7,810 Due after one year through five years 14,010 14,423 Due after five years 147,081 150,151 168,886 172,384 Residential mortgage-backed and related securities 128,281 134,147 Asset-backed securities 39,696 40,665 $ 336,863 $ 347,196 Portions of the U.S. government sponsored agency securities, municipal securities and other securities contain call options, which, at the discretion of the issuer, 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 $ 204 $ 203 Securities AFS: Municipal securities 118,030 120,371 Other securities 4,500 4,664 $ 122,530 $ 125,035 As of September 30, 2020, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 114 issuers with fair values totaling $110.3 million and revenue bonds issued by 182 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $484.1 million. The Company also held investments in general obligation bonds in 21 states, including nine states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 24 states, including 13 states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2019, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 93 issuers with fair values totaling $77.2 million and revenue bonds issued by 154 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $396.6 million. The Company also held investments in general obligation bonds in 22 states, including six Both general obligation and revenue bonds are diversified across many issuers. As of September 30, 2020 the Company did not hold any revenue bonds of one single issuer of which the aggregate book or market value exceeded 5% of the Company’s stockholders’ equity. As of December 31, 2019, 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 the four charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. The investments of each charter are monitored individually, and as of September 30, 2020, all were 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, 2020, 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 3 - LOANS_LEASES RECEIVABL
NOTE 3 - LOANS/LEASES RECEIVABLE | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
LOANS/LEASES RECEIVABLE | NOTE 3 – LOANS/LEASES RECEIVABLE The composition of the loan/lease portfolio as of September 30, 2020 and December 31, 2019 is presented as follows: 2020 2019 (dollars in thousands) C&I loans* $ 1,823,049 $ 1,507,825 CRE loans Owner-occupied CRE 486,254 443,989 Commercial construction, land development, and other land 503,086 378,797 Other non owner-occupied CRE 1,010,375 913,610 1,999,715 1,736,396 Direct financing leases ** 73,011 87,869 Residential real estate loans *** 245,032 239,904 Installment and other consumer loans 102,471 109,352 4,243,278 3,681,346 Plus deferred loan/lease origination costs, net of fees 4,699 8,859 4,247,977 3,690,205 Less allowance (79,582) (36,001) $ 4,168,395 $ 3,654,204 ** Direct financing leases: Net minimum lease payments to be received $ 80,560 $ 97,025 Estimated unguaranteed residual values of leased assets 616 547 Unearned lease/residual income (8,165) (9,703) 73,011 87,869 Plus deferred lease origination costs, net of fees 1,270 1,892 74,281 89,761 Less allowance (1,902) (1,464) $ 72,379 $ 88,297 * Includes equipment financing agreements outstanding at m2, totaling $162.1 million and $142.0 million as of September 30, 2020 and December 31, 2019, 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 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. *** Includes residential real estate loans held for sale totaling $8.8 million and $3.7 million as of September 30, 2020 and December 31, 2019, respectively. Changes in accretable yield for acquired loans were as follows: Three months ended September 30, 2020 Nine months ended September 30, 2020 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (58) $ (4,935) $ (4,993) $ (57) $ (6,378) $ (6,435) Reclassification of nonaccretable discount to accretable — — — (30) — (30) Accretion recognized 1 941 942 30 2,384 2,414 Balance at the end of the period $ (57) $ (3,994) $ (4,051) $ (57) $ (3,994) $ (4,051) 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) The aging of the loan/lease portfolio by classes of loans/leases as of September 30, 2020 and December 31, 2019 is presented as follows: As of September 30, 2020 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 $ 1,816,454 $ 1,275 $ 339 $ — $ 4,981 $ 1,823,049 CRE Owner-Occupied CRE 485,950 — — — 304 486,254 Commercial Construction, Land Development, and Other Land 503,086 — — — — 503,086 Other Non Owner-Occupied CRE 999,369 378 — — 10,628 1,010,375 Direct Financing Leases 71,692 619 51 — 649 73,011 Residential Real Estate 243,646 — 512 60 814 245,032 Installment and Other Consumer 102,107 34 83 26 221 102,471 $ 4,222,304 $ 2,306 $ 985 $ 86 $ 17,597 $ 4,243,278 As a percentage of total loan/lease portfolio 99.52 % 0.05 % 0.02 % 0.00 % 0.41 % 100.00 % As of December 31, 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 $ 1,499,891 $ 6,126 $ 572 $ — $ 1,236 $ 1,507,825 CRE Owner-Occupied CRE 443,707 177 71 — 34 443,989 Commercial Construction, Land Development, and Other Land 375,940 2,857 — — — 378,797 Other Non Owner-Occupied CRE 909,684 73 — — 3,853 913,610 Direct Financing Leases 85,636 463 253 — 1,517 87,869 Residential Real Estate 235,845 2,939 414 — 706 239,904 Installment and Other Consumer 108,750 3 10 33 556 109,352 $ 3,659,453 $ 12,638 $ 1,320 $ 33 $ 7,902 $ 3,681,346 As a percentage of total loan/lease portfolio 99.41 % 0.34 % 0.04 % 0.00 % 0.21 % 100.00 % NPLs by classes of loans/leases as of September 30, 2020 and December 31, 2019 are presented as follows: As of September 30, 2020 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 $ — $ 4,981 $ 828 $ 5,809 30.99 % CRE Owner-Occupied CRE — 304 — 304 1.62 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 10,628 — 10,628 56.70 % Direct Financing Leases — 649 233 882 4.71 % Residential Real Estate 60 814 — 874 4.66 % Installment and Other Consumer 26 221 — 247 1.32 % $ 86 $ 17,597 $ 1,061 $ 18,744 100.00 % ** Nonaccrual loans/leases included $204 thousand of TDRs, including $48 thousand in commercial and industrial loans, $50 in commercial real estate loans, and $106 thousand in installment loans. As of December 31, 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 $ — $ 1,236 $ 646 $ 1,882 21.12 % CRE Owner-Occupied CRE — 34 — 34 0.38 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 3,853 — 3,853 43.22 % Direct Financing Leases — 1,517 333 1,850 20.75 % Residential Real Estate — 706 — 706 7.92 % Installment and Other Consumer 33 556 — 589 6.61 % $ 33 $ 7,902 $ 979 $ 8,914 100.00 % ** Nonaccrual loans/leases included $747 thousand of TDRs, including $98 thousand in C&I loans, $269 thousand in CRE loans, $294 thousand in direct financing leases, $31 thousand in residential real estate loans, and $55 thousand in installment loans. Changes in the allowance by portfolio segment for the three and nine months ended September 30, 2020 and 2019, respectively, are presented as follows: Three Months Ended September 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 25,748 $ 29,123 $ 1,639 $ 3,010 $ 1,307 $ 60,827 Provisions charged to expense 9,008 10,428 608 253 45 20,342 Loans/leases charged off (1,079) (362) (358) — (20) (1,819) Recoveries on loans/leases previously charged off 150 64 13 — 5 232 Balance, ending $ 33,827 $ 39,253 $ 1,902 $ 3,263 $ 1,337 $ 79,582 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 Nine Months Ended September 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Provisions charged to expense 20,564 24,609 1,890 1,286 275 48,624 Loans/leases charged off (3,058) (873) (1,554) — (119) (5,604) Recoveries on loans/leases previously charged off 249 138 102 29 43 561 Balance, ending $ 33,827 $ 39,253 $ 1,902 $ 3,263 $ 1,337 $ 79,582 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 (credits) 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 *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, 2020 and December 31, 2019 is presented as follows: As of September 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ — $ 3,210 $ — $ 21 $ 75 $ 3,306 Allowance for nonimpaired loans/leases 33,827 36,043 1,902 3,242 1,262 76,276 $ 33,827 $ 39,253 $ 1,902 $ 3,263 $ 1,337 $ 79,582 Impaired loans/leases $ 2,004 $ 14,669 $ 944 $ 766 $ 221 $ 18,604 Nonimpaired loans/leases 1,821,045 1,985,046 72,067 244,266 102,250 4,224,674 $ 1,823,049 $ 1,999,715 $ 73,011 $ 245,032 $ 102,471 $ 4,243,278 Allowance as a percentage of impaired loans/leases — % 21.88 % — % 2.74 % 33.94 % 17.77 % Allowance as a percentage of nonimpaired loans/leases 1.86 % 1.82 % 2.64 % 1.33 % 1.23 % 1.81 % Total allowance as a percentage of total loans/leases 1.86 % 1.96 % 2.61 % 1.33 % 1.30 % 1.88 % As of December 31, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 170 $ 125 $ 270 $ 15 $ 80 $ 660 Allowance for nonimpaired loans/leases 15,902 15,254 1,194 1,933 1,058 35,341 $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Impaired loans/leases $ 1,846 $ 3,585 $ 2,025 $ 649 $ 556 $ 8,661 Nonimpaired loans/leases 1,505,979 1,732,811 85,844 239,255 108,796 3,672,685 $ 1,507,825 $ 1,736,396 $ 87,869 $ 239,904 $ 109,352 $ 3,681,346 Allowance as a percentage of impaired loans/leases 9.21 % 3.49 % 13.33 % 2.31 % 14.41 % 7.62 % Allowance as a percentage of nonimpaired loans/leases 1.06 % 0.88 % 1.39 % 0.81 % 0.97 % 0.96 % Total allowance as a percentage of total loans/leases 1.07 % 0.89 % 1.67 % 0.81 % 1.04 % 0.98 % 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, 2020 are presented as follows: Nine Months Ended September 30, 2020 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 $ 2,004 $ 2,114 $ — $ 1,418 $ 35 $ 35 CRE Owner-Occupied CRE 287 528 — 146 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 1,336 1,336 — 334 22 22 Direct Financing Leases 944 944 — 792 16 16 Residential Real Estate 507 507 — 416 — — Installment and Other Consumer 146 146 — 119 — — $ 5,224 $ 5,575 $ — $ 3,225 $ 73 $ 73 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ — $ — $ — $ — $ — $ — CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 13,046 13,046 3,210 7,228 — — Direct Financing Leases — — — — — — Residential Real Estate 259 259 21 220 — — Installment and Other Consumer 75 75 75 69 — — $ 13,380 $ 13,380 $ 3,306 $ 7,517 $ — $ — Total Impaired Loans/Leases: C&I $ 2,004 $ 2,114 $ — $ 1,418 $ 35 $ 35 CRE Owner-Occupied CRE 287 528 — 146 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 14,382 14,382 3,210 7,562 22 22 Direct Financing Leases 944 944 — 792 16 16 Residential Real Estate 766 766 21 636 — — Installment and Other Consumer 221 221 75 188 — — $ 18,604 $ 18,955 $ 3,306 $ 10,742 $ 73 $ 73 Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended September 30, 2020 and 2019 are presented as follows: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 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 $ 1,825 $ 11 $ 11 $ 1,433 $ 6 $ 6 CRE Owner-Occupied CRE 292 — — 42 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 668 7 7 739 7 7 Direct Financing Leases 953 6 6 1,359 6 6 Residential Real Estate 512 — — 540 — — Installment and Other Consumer 146 — — 543 — — $ 4,396 $ 24 $ 24 $ 4,656 $ 19 $ 19 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ — $ — $ — $ 141 $ — $ — CRE Owner-Occupied CRE — — — 123 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 9,757 — — 3,254 — — Direct Financing Leases — — — 120 — — Residential Real Estate 260 — — 390 — — Installment and Other Consumer 77 — — 84 — — $ 10,094 $ — $ — $ 4,112 $ — $ — Total Impaired Loans/Leases: C&I $ 1,825 $ 11 $ 11 $ 1,574 $ 6 $ 6 CRE Owner-Occupied CRE 292 — — 165 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 10,425 7 7 3,993 7 7 Direct Financing Leases 953 6 6 1,479 6 6 Residential Real Estate 772 — — 930 — — Installment and Other Consumer 223 — — 627 — — $ 14,490 $ 24 $ 24 $ 8,768 $ 19 $ 19 Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2019 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 $ 1,607 $ 1,647 $ — CRE Owner-Occupied CRE 34 50 — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 684 686 — Direct Financing Leases 1,642 1,642 — Residential Real Estate 469 614 — Installment and Other Consumer 476 476 — $ 4,912 $ 5,115 $ — Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 239 $ 239 $ 170 CRE Owner-Occupied CRE — — — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 2,867 2,867 125 Direct Financing Leases 383 383 270 Residential Real Estate 180 180 15 Installment and Other Consumer 80 80 80 $ 3,749 $ 3,749 $ 660 Total Impaired Loans/Leases: C&I $ 1,846 $ 1,886 $ 170 CRE Owner-Occupied CRE 34 50 — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 3,551 3,553 125 Direct Financing Leases 2,025 2,025 270 Residential Real Estate 649 794 15 Installment and Other Consumer 556 556 80 $ 8,661 $ 8,864 $ 660 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, 2020 and December 31, 2019: As of September 30, 2020 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) $ 1,610,503 $ 478,852 $ 491,928 $ 929,398 $ 3,510,681 95.91 % Special Mention (Rating 6) 25,547 2,211 680 51,149 79,587 2.17 % Substandard (Rating 7) 24,912 5,191 10,478 29,828 70,409 1.92 % Doubtful (Rating 8) — — — — — — % $ 1,660,962 $ 486,254 $ 503,086 $ 1,010,375 $ 3,660,677 100.00 % As of September 30, 2020 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 162,043 $ 72,129 $ 244,157 $ 102,224 $ 580,553 99.65 % Nonperforming 44 882 875 247 2,048 0.35 % $ 162,087 $ 73,011 $ 245,032 $ 102,471 $ 582,601 100.00 % As of December 31, 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) $ 1,334,446 $ 439,418 $ 378,572 $ 896,206 $ 3,048,642 98.27 % Special Mention (Rating 6) 12,962 3,044 41 3,905 19,952 0.65 % Substandard (Rating 7) 18,439 1,527 184 13,499 33,649 1.08 % Doubtful (Rating 8) — — — — — — % $ 1,365,847 $ 443,989 $ 378,797 $ 913,610 $ 3,102,243 100.00 % As of December 31, 2019 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 140,992 $ 86,019 $ 239,198 $ 108,763 $ 574,972 99.29 % Nonperforming 986 1,850 706 589 4,131 0.71 % $ 141,978 $ 87,869 $ 239,904 $ 109,352 $ 579,103 100.00 % * 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, 2020 and December 31, 2019, TDRs totaled $1.3 million and $1.7 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, 2020 and 2019. 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, 2020 For the three months ended September 30, 2019 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 3 $ 197 $ 197 $ — — $ — $ — $ — Direct Financing Leases — — — — 3 116 116 — 3 $ 197 $ 197 $ — 3 $ 116 $ 116 $ — CONCESSION - Extension of Maturity Installment and Other Consumer — — — — 1 $ 56 $ 56 $ 56 — $ — $ — $ — 1 $ 56 $ 56 $ 56 TOTAL 3 $ 197 $ 197 $ — 4 $ 172 $ 172 $ 56 For the nine months ended September 30, 2020 For the nine months ended September 30, 2019 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 5 $ 308 $ 308 $ — 1 $ 19 $ 19 $ — Direct Financing Leases 3 145 145 — 6 219 219 20 8 $ 453 $ 453 $ — 7 $ 238 $ 238 $ 20 CONCESSION - Forgiveness of Principal C & I — $ — $ — $ — 1 587 537 — — $ — $ — $ — 1 $ 587 $ 537 $ — CONCESSION - Extension of Maturity Installment and Other Consumer — $ — $ — $ — 1 56 56 56 — $ — $ — $ — 1 $ 56 $ 56 $ 56 TOTAL 8 $ 453 $ 453 $ — 9 $ 881 $ 831 $ 76 Of the loans restructured during the nine months ended September 30, 2020, none were on nonaccrual. Of the loans restructured during the nine months ended September 30, 2019, three with post-modification recorded balances of $121 thousand were on nonaccrual. For the three months ended September 30, 2020, one 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. This 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. Not included in the table above are 10 TDRs that were restructured and charged off for the nine months ended September 30, 2020, totaling $482 thousand. The Company had three TDRs that were restructured and charged off for the three months ended September 30, 2020, totaling $128 thousand The Company had three TDRs that were restructured and charged off for the nine months ended September 30, 2019, totaling $108 thousand. On March 22, 2020, federal banking regulators issued an interagency statement that included guidance on their approach for the accounting of loan modifications in light of the economic impact of the COVID-19 pandemic. The guidance interprets current accounting standards and indicates that a lender can conclude that a borrower is not experiencing financial difficulty if short-term modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms or other delays in payment that are insignificant related to the loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented. The agencies confirmed in working with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. In addition, the CARES Act provides financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. To be eligible, the modification must be related to COVID-19, the existing loan could not be more than 30 days past due as of December 31, 2019 and the modification must be executed between March 1, 2020 and the earlier of 60 days after the termination of the National Emergency or December 31, 2020. If a modification does not meet the criteria of the CARES Act, a deferral can still be excluded from TDR treatment as long as the modifications meet the banking regulatory criteria discussed in the preceding paragraph. The Company implemented its LRP offering to extend qualifying customers’ payments for 90 days. Since implementing the program, the Company has provided 1,498 bank modifications of loans to commercial and consumer clients totaling $522 million and 953 m2 modifications of loans and leases totaling $53 million for a combined 2,451 modifications totaling $575 million, representing 13.53% of the total loan and lease portfolio. As of September 30, 2020, the majority of customers have resumed regularly scheduled payments with only 238 total loans/leases representing $83 million, or 1.95% of total loans/leases, receiving a second deferral under the LRP. |
NOTE 4 - DERIVATIVES AND HEDGIN
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 4 – DERIVATIVES AND HEDGING ACTIVITIES The Company uses interest rate swap and cap instruments to manage interest rate risk related to the variability of interest payments due to changes in interest rates. The Company entered into interest rate caps in December 2019 to hedge against the risk of rising interest rates on liabilities. The liabilities consist of $375.0 million of deposits and the benchmark rates hedged vary at 1-month LIBOR, 3-month LIBOR and Prime. The interest rate caps are designated as cash flow hedges in accordance with ASC 815. An initial premium of $4.3 million was paid upfront for the caps executed in 2019. The details of the interest rate caps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate September 30, 2020 December 31, 2019 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Other Assets $ 25,000 1.75 % $ 6 $ 112 Deposits 1/1/2020 1/1/2023 Other Assets 50,000 1.57 11 218 Deposits 1/1/2020 1/1/2023 Other Assets 25,000 1.90 5 96 Deposits 1/1/2020 1/1/2023 Other Assets 25,000 1.80 6 109 Deposits 1/1/2020 1/1/2024 Other Assets 25,000 1.75 17 214 Deposits 1/1/2020 1/1/2024 Other Assets 50,000 1.57 35 401 Deposits 2/1/2020 2/1/2024 Other Assets 25,000 1.90 17 202 Deposits 1/1/2020 1/1/2024 Other Assets 25,000 1.80 17 201 Deposits 1/1/2020 1/1/2025 Other Assets 25,000 1.75 37 337 Deposits 1/1/2020 1/1/2025 Other Assets 50,000 1.57 75 617 Deposits 3/1/2020 3/1/2025 Other Assets 25,000 1.90 40 332 Deposits 1/1/2020 1/1/2025 Other Assets 25,000 1.80 38 309 $ 375,000 $ 304 $ 3,148 The Company has entered into interest rate swaps to hedge against the risk of rising rates on its rolling fixed rate short-term FHLB advances or brokered CDs and its variable rate trust preferred securities. All of the interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate September 30, 2020 December 31, 2019 (dollars in thousands) CRBT - FHLB Advances or Brokered CDs 3/16/2020 3/16/2023 Derivatives - Liabilities $ 30,000 0.23 % 1.12 % $ (660) $ - SFCB - FHLB Advances or Brokered CDs 3/16/2020 3/16/2023 Derivatives - Liabilities 10,000 0.24 % 0.95 % (181) - QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities 10,000 3.07 % 5.85 % (1,963) (971) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 3.07 % 5.85 % (1,570) (777) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 1.83 % 4.54 % (1,909) (944) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 2.40 % 5.17 % (587) (291) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 2.00 % 4.75 % (684) (339) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 2.00 % 4.75 % (879) (436) $ 79,000 1.34 % 5.24 % $ (8,433) $ (3,758) Changes in fair values of derivative financial instruments accounted for as cash flow hedges, to the extent that they are included in the assessment of effectiveness, are recorded as a component of AOCI. 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 counterparty. Additionally, the Company receives an upfront fee from the financial institution counterparty, dependent upon the pricing that is recognized upon receipt from the financial institution counterparty. 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. Interest rate swaps that are not designated as hedging instruments are summarized as follows: September 30, 2020 December 31, 2019 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 1,435,379 $ 236,077 $ 787,221 $ 84,679 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 1,435,379 $ 236,077 $ 787,221 $ 84,679 Swap fee income totaled $26.7 million and $9.8 million for the three months ended September 30, 2020 and 2019, respectively. Swap fee income totaled $53.4 million and $20.9 million for the nine months ended September 30, 2020 and 2019, respectively. The Company’s hedged interest rate swaps and non-hedged interest rate swaps are collateralized with cash and investment securities with carrying values as follows: September 30, 2020 December 31, 2019 (dollars in thousands) Cash $ 81,373 $ 10,990 U.S govt. sponsored agency securities 3,650 3,541 Municipal securities 50,730 68,089 Residential mortgage-backed and related securities 105,631 27,027 $ 241,384 $ 109,647 The Company may be exposed to credit risk in the event of non-performance by the counterparties to its interest rate derivative agreements. The Company assesses the credit risk of its financial institution counterparties by monitoring publicly available credit rating and financial information. Additionally, the Company enters into interest rate derivatives only with primary and highly rated counterparties, and uses ISDA master agreements, central clearing mechanisms and counterparty limits. The ISDA master agreements contain bilateral collateral agreements with the amount of collateral to be posted generally governed by the settlement value of outstanding swaps. The Company manages the risk of default by its borrower/customer counterparties through its normal loan underwriting and credit monitoring policies and procedures. Specifically, the underwriting considers collateral value, including the excess collateral over the loan value and swap exposure, and debt service capacity for the underlying loan as well as the exposure from the interest rate swap. Ongoing credit monitoring policies and procedures are current. As of September 30, 2020, the Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. |
NOTE 5 - SUBORDINATED NOTES
NOTE 5 - SUBORDINATED NOTES | 9 Months Ended |
Sep. 30, 2020 | |
SUBORDINATED NOTES | |
SUBORDINATED NOTES | NOTE 5 – SUBORDINATED NOTES On September 14, 2020, the Company completed a private offering of $50.0 million in aggregate principal amount of fixed-to-floating subordinated notes that mature on September 15, 2030. The subordinated notes, which qualify as Tier 2 capital for the Company, will bear interest at a fixed rate of 5.125% per year, from and including September 14, 2020 to, but excluding September 15, 2025 or earlier redemption. From and including September 15, 2025 to, but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate, which is expected to be the then three-month Term SOFR, plus 500 basis points. Interest on the subordinated notes is payable quarterly, commencing on December 15, 2020. The notes are redeemable, in whole or in part, at any time upon the occurrence of certain events. The subordinated notes may be redeemed at the Company’s option, in whole or in part, on any interest payment date on or after September 15, 2025, at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. 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. The details of the Company’s subordinated notes are as follows: Amount Outstanding Interest Rate Amount Outstanding Interest Rate as of September 30, 2020 as of September 30, 2020 as of December 31, 2019 as of December 31, 2019 Maturity Date (dollars in thousands) Subordinated debenture dated 9/14/20 $ 50,000 5.125 % $ - — % 9/15/2030 Subordinated debenture dated 2/1/19 65,000 5.375 % 65,000 5.375 % 9/15/2030 Subordinated debenture dated 4/30/16* 2,000 4.00 % 2,000 4.00 % 4/30/2026 Subordinated debenture dated 9/15/16* 3,000 4.00 % 3,000 4.00 % 9/15/2026 Debt issuance costs (1,423) (1,606) Total Subordinated Debentures $ 118,577 $ 68,394 *Assumed in acquisition of SFCB |
NOTE 6 - EARNINGS PER SHARE
NOTE 6 - EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | NOTE 6 - 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, 2020 2019 2020 2019 (dollars in thousands, except share data) Net income $ 17,344 $ 15,095 $ 42,311 $ 41,517 Basic EPS $ 1.10 $ 0.96 $ 2.68 $ 2.64 Diluted EPS $ 1.09 $ 0.94 $ 2.65 $ 2.60 Weighted average common shares outstanding 15,767,152 15,739,430 15,770,335 15,715,788 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 156,426 237,312 175,497 230,232 Weighted average common and common equivalent shares outstanding 15,923,578 15,976,742 15,945,832 15,946,020 |
NOTE 7 - FAIR VALUE
NOTE 7 - FAIR VALUE | 9 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE | |
FAIR VALUE | NOTE 7 – 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, 2020 and December 31, 2019: 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, 2020: Securities AFS: U.S. govt. sponsored agency securities $ 18,437 $ — $ 18,437 $ — Residential mortgage-backed and related securities 134,147 — 134,147 — Municipal securities 135,233 — 135,233 — Asset-backed securities 40,665 — 40,665 — Other securities 18,714 — 18,714 — Derivatives 236,381 — 236,381 — Total assets measured at fair value $ 583,577 $ — $ 583,577 $ — Derivatives $ 244,510 $ — $ 244,510 $ — Total liabilities measured at fair value $ 244,510 $ — $ 244,510 $ — December 31, 2019: Securities AFS: U.S. govt. sponsored agency securities $ 20,078 $ — $ 20,078 $ — Residential mortgage-backed and related securities 120,587 — 120,587 — Municipal securities 48,257 — 48,257 — Asset-backed securities 16,887 — 16,887 — Other securities 4,886 — 4,886 — Derivatives 87,827 — 87,827 — Total assets measured at fair value $ 298,522 $ — $ 298,522 $ — Derivatives $ 88,437 $ — $ 88,437 $ — Total liabilities measured at fair value $ 88,437 $ — $ 88,437 $ — 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 caps are used for the purpose of hedging interest rate risk. The interest rate caps are further described in Note 4 to the Consolidated Financial Statements. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (Level 2 inputs). Interest rate swaps are used for the purpose of hedging interest rate risk on FHLB advances, brokered deposits and junior subordinated debt. The interest rate swaps are further described in Note 4 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 executed for select commercial customers. The interest rate swaps are further described in Note 4 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, 2020 and December 31, 2019: 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, 2020: Impaired loans/leases $ 11,226 $ — $ — $ 11,226 OREO 135 — — 135 $ 11,361 $ — $ — $ 11,361 December 31, 2019: Impaired loans/leases $ 3,394 $ — $ — $ 3,394 OREO 4,459 — — 4,459 $ 7,853 $ — $ — $ 7,853 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, 2020 2019 Valuation Technique Unobservable Input Range (dollars in thousands) Impaired loans/leases $ 11,226 $ 3,394 Appraisal of collateral Appraisal adjustments (10.00) % to (30.00) % OREO 135 4,459 Appraisal of collateral Appraisal adjustments 0.00 % to (35.00) % 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, 2020 and 2019. 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, 2020 As of December 31, 2019 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 68,932 $ 68,932 $ 76,254 $ 76,254 Federal funds sold Level 2 530 530 9,800 9,800 Interest-bearing deposits at financial institutions Level 2 302,138 302,138 147,891 147,891 Investment securities: HTM Level 2 434,892 460,199 400,646 426,545 AFS * 347,196 347,196 210,695 210,695 Loans/leases receivable, net Level 3 10,394 11,226 3,143 3,394 Loans/leases receivable, net Level 2 4,158,001 4,142,232 3,651,061 3,606,520 Derivatives Level 2 236,381 236,381 87,827 87,827 Deposits: Nonmaturity deposits Level 2 4,116,250 4,116,250 3,184,726 3,184,726 Time deposits Level 2 556,018 562,068 726,325 742,444 Short-term borrowings Level 2 30,430 30,430 13,423 13,423 FHLB advances Level 2 40,000 40,182 159,300 159,193 Subordinated notes Level 2 118,577 118,724 68,394 68,563 Junior subordinated debentures Level 2 37,955 30,487 37,838 30,477 Derivatives Level 2 244,510 244,510 88,437 88,437 *See previous table in Note 2 . |
NOTE 8 - BUSINESS SEGMENT INFOR
NOTE 8 - BUSINESS SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
BUSINESS SEGMENT INFORMATION | NOTE 8 – 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 subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and SFCB. 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 subsidiary banks and the Bates Companies in aggregate. The Bates Companies were sold on August 12, 2020 and the business segment information below reflects the activity of the Bates Companies through this date. 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 corporate operations of the parent and operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds. The financial results for RB&T prior to the sale of the majority of its assets and liabilities at November 30, 2019 are also included in the Company’s All Other Segment. 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, 2020 and 2019. Commercial Banking Wealth Intercompany Consolidated QCBT CRBT CSB SFCB Management All other Eliminations Total (dollars in thousands) Three Months Ended September 30, 2020 Total revenue $ 20,856 $ 43,331 $ 11,033 $ 10,266 $ 3,545 $ 21,657 $ (21,839) $ 88,849 Net interest income 16,648 14,432 8,593 6,159 — (1,531) 280 44,581 Provision for loan/lease losses 7,861 8,878 2,493 1,110 — — — 20,342 Net income (loss) from continuing operations 2,455 13,221 1,867 2,869 1,053 17,362 (21,483) 17,344 Goodwill 3,223 14,980 9,888 45,975 — — — 74,066 Intangibles — 2,313 3,474 6,115 — — — 11,902 Total assets 2,205,934 2,012,182 937,016 803,478 — 756,716 (850,766) 5,864,560 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 for loan/lease losses 948 150 150 276 — 488 — 2,012 Net income (loss) from continuing operations 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 Nine Months Ended September 30, 2020 Total revenue $ 60,083 $ 99,938 $ 30,836 $ 28,490 $ 11,211 $ 55,087 $ (55,342) $ 230,303 Net interest income 46,728 38,638 23,631 18,002 — (4,514) 758 123,243 Provision for loan/lease losses 18,583 18,288 7,268 4,485 — — — 48,624 Net income (loss) 10,664 30,178 3,496 6,974 2,860 42,296 (54,157) 42,311 Goodwill 3,223 14,980 9,888 45,975 — — — 74,066 Intangibles — 2,313 3,474 6,115 — — — 11,902 Total assets 2,205,934 2,012,182 937,016 803,478 — 756,716 (850,766) 5,864,560 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) from continuing operations 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 |
NOTE 9 - REGULATORY CAPITAL REQ
NOTE 9 - REGULATORY CAPITAL REQUIREMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
REGULATORY CAPITAL REQUIREMENTS | NOTE 9 – 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, 2020 and December 31, 2019, 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, 2020 and December 31, 2019 are presented in the following table (dollars in thousands). As of September 30, 2020 and December 31, 2019, 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, 2020: Company: Total risk-based capital $ 700,831 14.93 % $ 375,643 > 8.00 % $ 493,031 > 10.50 % $ 469,553 > 10.00 % Tier 1 risk-based capital 528,228 11.25 281,732 > 6.00 399,120 > 8.50 375,643 > 8.00 Tier 1 leverage 528,228 9.21 229,457 > 4.00 229,457 > 4.00 286,822 > 5.00 Common equity Tier 1 490,273 10.44 211,299 > 4.50 328,687 > 7.00 305,210 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 204,284 12.13 % $ 134,760 > 8.00 % $ 176,872 > 10.50 % $ 168,450 > 10.00 % Tier 1 risk-based capital 183,131 10.87 101,070 > 6.00 143,182 > 8.50 134,760 > 8.00 Tier 1 leverage 183,131 7.85 93,313 > 4.00 93,313 > 4.00 116,642 > 5.00 Common equity Tier 1 183,131 10.87 75,802 > 4.50 117,915 > 7.00 109,492 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 214,219 12.92 % $ 132,656 > 8.00 % $ 174,112 > 10.50 % $ 165,821 > 10.00 % Tier 1 risk-based capital 193,384 11.66 99,492 > 6.00 140,948 > 8.50 132,656 > 8.00 Tier 1 leverage 193,384 9.72 79,559 > 4.00 79,559 > 4.00 99,449 > 5.00 Common equity Tier 1 193,384 11.66 74,619 > 4.50 116,074 > 7.00 107,783 > 6.50 Community State Bank: Total risk-based capital $ 99,123 12.74 % $ 62,222 > 8.00 % $ 81,666 > 10.50 % $ 77,777 > 10.00 % Tier 1 risk-based capital 89,359 11.49 46,666 > 6.00 66,110 > 8.50 62,222 > 8.00 Tier 1 leverage 89,359 9.85 36,273 > 4.00 36,273 > 4.00 45,341 > 5.00 Common equity Tier 1 89,359 11.49 35,000 > 4.50 54,444 > 7.00 50,555 > 6.50 Springfield First Community Bank: Total risk-based capital $ 83,283 13.68 % $ 48,718 > 8.00 % $ 63,943 > 10.50 % $ 60,898 > 10.00 % Tier 1 risk-based capital 71,617 11.76 36,539 > 6.00 51,763 > 8.50 48,718 > 8.00 Tier 1 leverage 71,617 10.27 27,903 > 4.00 27,903 > 4.00 34,879 > 5.00 Common equity Tier 1 71,617 11.76 27,404 > 4.50 42,629 > 7.00 39,584 > 6.50 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, 2019: Company: Total risk-based capital $ 581,234 13.33 % $ 348,937 > 8.00 % $ 457,980 > 10.500 % $ 436,171 > 10.00 % Tier 1 risk-based capital 481,702 11.04 261,703 > 6.00 370,746 > 8.500 348,937 > 8.00 Tier 1 leverage 481,702 9.53 202,207 > 4.00 202,207 > 4.000 252,758 > 5.00 Common equity Tier 1 443,864 10.18 196,277 > 4.50 305,320 > 7.000 283,511 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 183,855 11.83 % $ 124,362 > 8.00 % $ 163,225 > 10.500 % $ 155,452 > 10.00 % Tier 1 risk-based capital 170,137 10.94 93,271 > 6.00 132,134 > 8.500 124,362 > 8.00 Tier 1 leverage 170,137 9.94 68,479 > 4.00 68,479 > 4.000 85,598 > 5.00 Common equity Tier 1 170,137 10.94 69,953 > 4.50 108,817 > 7.000 101,044 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 175,498 11.90 % $ 117,953 > 8.00 % $ 154,813 > 10.500 % $ 147,441 > 10.00 % Tier 1 risk-based capital 162,127 11.00 88,465 > 6.00 125,325 > 8.500 117,953 > 8.00 Tier 1 leverage 162,127 10.41 62,286 > 4.00 62,286 > 4.000 77,857 > 5.00 Common equity Tier 1 162,127 11.00 66,349 > 4.50 103,209 > 7.000 95,837 > 6.50 Community State Bank: Total risk-based capital $ 92,095 12.32 % $ 59,813 > 8.00 % $ 78,504 > 10.500 % $ 74,766 > 10.00 % Tier 1 risk-based capital 85,437 11.43 44,860 > 6.00 63,551 > 8.500 59,813 > 8.00 Tier 1 leverage 85,437 10.39 32,902 > 4.00 32,902 > 4.000 41,128 > 5.00 Common equity Tier 1 85,437 11.43 33,645 > 4.50 52,336 > 7.000 48,598 > 6.50 Springfield First Community Bank: Total risk-based capital $ 71,074 12.72 % $ 44,704 > 8.00 % $ 58,674 > 10.500 % $ 55,880 > 10.00 % Tier 1 risk-based capital 63,956 11.45 33,528 > 6.00 47,498 > 8.500 44,704 > 8.00 Tier 1 leverage 63,956 9.70 26,379 > 4.00 26,379 > 4.000 32,974 > 5.00 Common equity Tier 1 63,956 11.45 25,146 > 4.50 39,116 > 7.000 36,322 > 6.50 |
Note 10 - SALE OF SUBSIDIARY
Note 10 - SALE OF SUBSIDIARY | 9 Months Ended |
Sep. 30, 2020 | |
SALE OF SUBSIDIARY | |
SALE OF SUBSIDIARY | NOTE 10 –SALE OF SUBSIDIARY On August 12, 2020, the Company sold all the issued and outstanding capital stock of the Bates Companies. The aggregate consideration paid to the Company was a $500 thousand note receivable, less imputed interest of $52 thousand, plus cancellation of all future amounts otherwise to become payable to the purchaser by the Company under an earn-out agreement entered into between the same parties in 2018 with a non-discounted value of approximately $880 thousand at September 30, 2020. Assets and liabilities of the Bates Companies sold are summarized as follows as of the date of closing: As of August 12, 2020 (dollars in thousands) ASSETS Cash and due from banks $ 349 Premises and equipment, net 19 Other assets 2,211 Total assets sold $ 2,579 LIABILITIES Other liabilities $ 946 Total liabilities sold $ 946 Net assets sold $ 1,633 Forgiveness of earn-out consideration 880 Note receivable consideration 448 Loss on sale of subsidiary $ 305 Disposition costs related to the sale totaled $192 thousand and were comprised primarily of legal, accounting and personnel costs. |
NOTE 1 - SUMMARY OF SIGNIFICA_2
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies | |
Basis of presentation | Basis of presentation 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, 2020 are not necessarily indicative of the results expected for the year ending December 31, 2020, 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 AOCI: Accumulated other comprehensive income (loss) AFS: Available for sale HTM: Held to maturity ASC: Accounting Standards Codification LRP: Loan Relief Program ASU: Accounting Standards Update m2: m2 Lease Funds, LLC Bates Companies: Bates Financial Advisors, Inc., Bates MSELF: Main Street Expanded Loan Facility Financial Services, Inc., Bates Securities, Inc. and MSNLF: Main Street New Loan Facility Bates Financial Group, Inc. NIM: Net interest margin BOLI: Bank-owned life insurance NPA: Nonperforming asset Caps: Interest rate cap derivatives NPL: Nonperforming loan CARES Act: Coronavirus Aid, Relief and Economy OREO: Other real estate owned Security Act OTTI: Other-than-temporary impairment CDI: Core deposit intangible PCI: Purchased credit impaired CECL: Current Expected Credit Losses PPP: Paycheck Protection Program Community National: Community National Bancorporation Provision: Provision for loan/lease losses COVID-19: Coronavirus Disease 2019 QCBT: Quad City Bank & Trust Company CRBT: Cedar Rapids Bank & Trust Company RB&T: Rockford Bank & Trust Company CRE: Commercial real estate ROAA: Return on Average Assets CSB: Community State Bank SBA: U.S. Small Business Administration C&I: Commercial and industrial SEC: Securities and Exchange Commission EPS: Earnings per share SFCB: Springfield First Community Bank Exchange Act: Securities Exchange Act of 1934, as Springfield Bancshares: Springfield Bancshares, Inc. amended TA: Tangible assets FASB: Financial Accounting Standards Board TCE: Tangible common equity FDIC: Federal Deposit Insurance Corporation TDRs: Troubled debt restructurings FHLB: Federal Home Loan Bank TEY: Tax equivalent yield FRB: Federal Reserve Bank of Chicago The Company: QCR Holdings, Inc. GAAP: Generally Accepted Accounting Principles USDA: U.S. Department of Agriculture |
Principles of consolidation | The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries which include the accounts of four commercial banks: QCBT, CRBT, CSB and SFCB. 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. All material intercompany transactions and balances have been eliminated in consolidation |
Recent accounting developments | Recent accounting developments Financial Instruments – Credit Losses |
Risks and uncertainties | Risks and Uncertainties: securing the Company’s loans. As a result, the Company anticipates that its asset quality and results of operations have been adversely affected, as described in further detail in this report. In light of the economic impact that COVID-19 has had on the Company, management concluded that factors such as the decline in macroeconomic conditions led to the occurrence of a triggering event during the first quarter of 2020. Therefore an interim impairment test over goodwill was performed as of March 31, 2020. When such an assessment is performed, if the Company conclude that all or a portion of goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. Such a charge would have no impact on tangible capital or regulatory capital. Based upon the results of the interim goodwill assessment during the first quarter of 2020, the Company concluded that an impairment did not exist on the bank reporting units as of the time of the assessment. There was no occurrence of a triggering event during the second or third quarter of 2020; therefore no impairment test over goodwill was required. |
NOTE 2 - INVESTMENT SECURITIES
NOTE 2 - INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020: Securities HTM: Municipal securities $ 433,842 $ 26,292 $ (984) $ 459,150 Other securities 1,050 — (1) 1,049 $ 434,892 $ 26,292 $ (985) $ 460,199 Securities AFS: U.S. govt. sponsored agency securities $ 17,791 $ 667 $ (21) $ 18,437 Residential mortgage-backed and related securities 128,281 6,158 (292) 134,147 Municipal securities 132,545 3,497 (809) 135,233 Asset-backed securities 39,696 1,108 (139) 40,665 Other securities 18,550 164 — 18,714 $ 336,863 $ 11,594 $ (1,261) $ 347,196 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2019: Securities HTM: Municipal securities $ 399,596 $ 26,042 $ (143) $ 425,495 Other securities 1,050 — — 1,050 $ 400,646 $ 26,042 $ (143) $ 426,545 Securities AFS: U.S. govt. sponsored agency securities $ 19,872 $ 283 $ (77) $ 20,078 Residential mortgage-backed and related securities 118,724 2,045 (182) 120,587 Municipal securities 46,659 1,602 (4) 48,257 Asset-backed securities 16,958 — (71) 16,887 Other securities 4,749 138 (1) 4,886 $ 206,962 $ 4,068 $ (335) $ 210,695 |
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, 2020: Securities HTM: Municipal securities $ 33,252 $ (984) $ — $ — $ 33,252 $ (984) Other securities 1,049 (1) — — 1,049 (1) $ 34,301 $ (985) $ — $ — $ 34,301 $ (985) Securities AFS: U.S. govt. sponsored agency securities $ 3,243 $ (21) $ — $ — $ 3,243 $ (21) Residential mortgage-backed and related securities 31,124 (292) — — 31,124 (292) Municipal securities 27,277 (809) — — 27,277 (809) Asset-backed securities 16,796 (139) — — 16,796 (139) Other securities — — — — — — $ 78,440 $ (1,261) $ — $ — $ 78,440 $ (1,261) 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, 2019: Securities HTM: Municipal securities $ 509 $ (1) $ 10,047 $ (142) $ 10,556 $ (143) Other securities 550 — — — 550 — $ 1,059 $ (1) $ 10,047 $ (142) $ 11,106 $ (143) Securities AFS: U.S. govt. sponsored agency securities $ 1,431 $ (21) $ 2,117 $ (56) $ 3,548 $ (77) Residential mortgage-backed and related securities 2,263 (17) 17,862 (165) 20,125 (182) Municipal securities — — 724 (4) 724 (4) Asset-backed securities 16,886 (71) — — 16,886 (71) Other securities 249 (1) — — 249 (1) $ 20,829 $ (110) $ 20,703 $ (225) $ 41,532 $ (335) |
Realized gain (loss) on investments | Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (dollars in thousands) Proceeds from sales of securities $ 22,252 $ 23,364 $ 28,579 $ 28,025 Gross gains from sales of securities 1,802 143 1,936 150 Gross losses from sales of securities — (146) (69) (206) |
Investments classified by maturity date | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 3,509 $ 3,525 Due after one year through five years 32,354 32,909 Due after five years 399,029 423,765 $ 434,892 $ 460,199 Securities AFS: Due in one year or less $ 7,795 $ 7,810 Due after one year through five years 14,010 14,423 Due after five years 147,081 150,151 168,886 172,384 Residential mortgage-backed and related securities 128,281 134,147 Asset-backed securities 39,696 40,665 $ 336,863 $ 347,196 |
Schedule of investment in callable securities | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 204 $ 203 Securities AFS: Municipal securities 118,030 120,371 Other securities 4,500 4,664 $ 122,530 $ 125,035 |
NOTE 3 - LOANS_LEASES RECEIVA_2
NOTE 3 - LOANS/LEASES RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Composition of the loan/lease portfolio | 2020 2019 (dollars in thousands) C&I loans* $ 1,823,049 $ 1,507,825 CRE loans Owner-occupied CRE 486,254 443,989 Commercial construction, land development, and other land 503,086 378,797 Other non owner-occupied CRE 1,010,375 913,610 1,999,715 1,736,396 Direct financing leases ** 73,011 87,869 Residential real estate loans *** 245,032 239,904 Installment and other consumer loans 102,471 109,352 4,243,278 3,681,346 Plus deferred loan/lease origination costs, net of fees 4,699 8,859 4,247,977 3,690,205 Less allowance (79,582) (36,001) $ 4,168,395 $ 3,654,204 ** Direct financing leases: Net minimum lease payments to be received $ 80,560 $ 97,025 Estimated unguaranteed residual values of leased assets 616 547 Unearned lease/residual income (8,165) (9,703) 73,011 87,869 Plus deferred lease origination costs, net of fees 1,270 1,892 74,281 89,761 Less allowance (1,902) (1,464) $ 72,379 $ 88,297 * Includes equipment financing agreements outstanding at m2, totaling $162.1 million and $142.0 million as of September 30, 2020 and December 31, 2019, 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 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. *** Includes residential real estate loans held for sale totaling $8.8 million and $3.7 million as of September 30, 2020 and December 31, 2019, respectively. |
Changes in accretable yield for acquired loans | Three months ended September 30, 2020 Nine months ended September 30, 2020 PCI Performing PCI Performing Loans Loans Total Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (58) $ (4,935) $ (4,993) $ (57) $ (6,378) $ (6,435) Reclassification of nonaccretable discount to accretable — — — (30) — (30) Accretion recognized 1 941 942 30 2,384 2,414 Balance at the end of the period $ (57) $ (3,994) $ (4,051) $ (57) $ (3,994) $ (4,051) 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) |
Aging of the loan/lease portfolio by classes of loans/leases | As of September 30, 2020 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 $ 1,816,454 $ 1,275 $ 339 $ — $ 4,981 $ 1,823,049 CRE Owner-Occupied CRE 485,950 — — — 304 486,254 Commercial Construction, Land Development, and Other Land 503,086 — — — — 503,086 Other Non Owner-Occupied CRE 999,369 378 — — 10,628 1,010,375 Direct Financing Leases 71,692 619 51 — 649 73,011 Residential Real Estate 243,646 — 512 60 814 245,032 Installment and Other Consumer 102,107 34 83 26 221 102,471 $ 4,222,304 $ 2,306 $ 985 $ 86 $ 17,597 $ 4,243,278 As a percentage of total loan/lease portfolio 99.52 % 0.05 % 0.02 % 0.00 % 0.41 % 100.00 % As of December 31, 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 $ 1,499,891 $ 6,126 $ 572 $ — $ 1,236 $ 1,507,825 CRE Owner-Occupied CRE 443,707 177 71 — 34 443,989 Commercial Construction, Land Development, and Other Land 375,940 2,857 — — — 378,797 Other Non Owner-Occupied CRE 909,684 73 — — 3,853 913,610 Direct Financing Leases 85,636 463 253 — 1,517 87,869 Residential Real Estate 235,845 2,939 414 — 706 239,904 Installment and Other Consumer 108,750 3 10 33 556 109,352 $ 3,659,453 $ 12,638 $ 1,320 $ 33 $ 7,902 $ 3,681,346 As a percentage of total loan/lease portfolio 99.41 % 0.34 % 0.04 % 0.00 % 0.21 % 100.00 % |
NPLs by classes of loans/leases | As of September 30, 2020 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 $ — $ 4,981 $ 828 $ 5,809 30.99 % CRE Owner-Occupied CRE — 304 — 304 1.62 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 10,628 — 10,628 56.70 % Direct Financing Leases — 649 233 882 4.71 % Residential Real Estate 60 814 — 874 4.66 % Installment and Other Consumer 26 221 — 247 1.32 % $ 86 $ 17,597 $ 1,061 $ 18,744 100.00 % ** Nonaccrual loans/leases included $204 thousand of TDRs, including $48 thousand in commercial and industrial loans, $50 in commercial real estate loans, and $106 thousand in installment loans. As of December 31, 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 $ — $ 1,236 $ 646 $ 1,882 21.12 % CRE Owner-Occupied CRE — 34 — 34 0.38 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 3,853 — 3,853 43.22 % Direct Financing Leases — 1,517 333 1,850 20.75 % Residential Real Estate — 706 — 706 7.92 % Installment and Other Consumer 33 556 — 589 6.61 % $ 33 $ 7,902 $ 979 $ 8,914 100.00 % ** Nonaccrual loans/leases included $747 thousand of TDRs, including $98 thousand in C&I loans, $269 thousand in CRE loans, $294 thousand in direct financing leases, $31 thousand in residential real estate loans, and $55 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, 2020 and 2019, respectively, are presented as follows: Three Months Ended September 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 25,748 $ 29,123 $ 1,639 $ 3,010 $ 1,307 $ 60,827 Provisions charged to expense 9,008 10,428 608 253 45 20,342 Loans/leases charged off (1,079) (362) (358) — (20) (1,819) Recoveries on loans/leases previously charged off 150 64 13 — 5 232 Balance, ending $ 33,827 $ 39,253 $ 1,902 $ 3,263 $ 1,337 $ 79,582 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 Nine Months Ended September 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Provisions charged to expense 20,564 24,609 1,890 1,286 275 48,624 Loans/leases charged off (3,058) (873) (1,554) — (119) (5,604) Recoveries on loans/leases previously charged off 249 138 102 29 43 561 Balance, ending $ 33,827 $ 39,253 $ 1,902 $ 3,263 $ 1,337 $ 79,582 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 (credits) 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 *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, 2020 and December 31, 2019 is presented as follows: As of September 30, 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ — $ 3,210 $ — $ 21 $ 75 $ 3,306 Allowance for nonimpaired loans/leases 33,827 36,043 1,902 3,242 1,262 76,276 $ 33,827 $ 39,253 $ 1,902 $ 3,263 $ 1,337 $ 79,582 Impaired loans/leases $ 2,004 $ 14,669 $ 944 $ 766 $ 221 $ 18,604 Nonimpaired loans/leases 1,821,045 1,985,046 72,067 244,266 102,250 4,224,674 $ 1,823,049 $ 1,999,715 $ 73,011 $ 245,032 $ 102,471 $ 4,243,278 Allowance as a percentage of impaired loans/leases — % 21.88 % — % 2.74 % 33.94 % 17.77 % Allowance as a percentage of nonimpaired loans/leases 1.86 % 1.82 % 2.64 % 1.33 % 1.23 % 1.81 % Total allowance as a percentage of total loans/leases 1.86 % 1.96 % 2.61 % 1.33 % 1.30 % 1.88 % As of December 31, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 170 $ 125 $ 270 $ 15 $ 80 $ 660 Allowance for nonimpaired loans/leases 15,902 15,254 1,194 1,933 1,058 35,341 $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Impaired loans/leases $ 1,846 $ 3,585 $ 2,025 $ 649 $ 556 $ 8,661 Nonimpaired loans/leases 1,505,979 1,732,811 85,844 239,255 108,796 3,672,685 $ 1,507,825 $ 1,736,396 $ 87,869 $ 239,904 $ 109,352 $ 3,681,346 Allowance as a percentage of impaired loans/leases 9.21 % 3.49 % 13.33 % 2.31 % 14.41 % 7.62 % Allowance as a percentage of nonimpaired loans/leases 1.06 % 0.88 % 1.39 % 0.81 % 0.97 % 0.96 % Total allowance as a percentage of total loans/leases 1.07 % 0.89 % 1.67 % 0.81 % 1.04 % 0.98 % |
Impaired financing receivables | Loans/leases, by classes of financing receivable, considered to be impaired as of and for the nine months ended September 30, 2020 are presented as follows: Nine Months Ended September 30, 2020 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 $ 2,004 $ 2,114 $ — $ 1,418 $ 35 $ 35 CRE Owner-Occupied CRE 287 528 — 146 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 1,336 1,336 — 334 22 22 Direct Financing Leases 944 944 — 792 16 16 Residential Real Estate 507 507 — 416 — — Installment and Other Consumer 146 146 — 119 — — $ 5,224 $ 5,575 $ — $ 3,225 $ 73 $ 73 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ — $ — $ — $ — $ — $ — CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 13,046 13,046 3,210 7,228 — — Direct Financing Leases — — — — — — Residential Real Estate 259 259 21 220 — — Installment and Other Consumer 75 75 75 69 — — $ 13,380 $ 13,380 $ 3,306 $ 7,517 $ — $ — Total Impaired Loans/Leases: C&I $ 2,004 $ 2,114 $ — $ 1,418 $ 35 $ 35 CRE Owner-Occupied CRE 287 528 — 146 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 14,382 14,382 3,210 7,562 22 22 Direct Financing Leases 944 944 — 792 16 16 Residential Real Estate 766 766 21 636 — — Installment and Other Consumer 221 221 75 188 — — $ 18,604 $ 18,955 $ 3,306 $ 10,742 $ 73 $ 73 Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended September 30, 2020 and 2019 are presented as follows: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 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 $ 1,825 $ 11 $ 11 $ 1,433 $ 6 $ 6 CRE Owner-Occupied CRE 292 — — 42 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 668 7 7 739 7 7 Direct Financing Leases 953 6 6 1,359 6 6 Residential Real Estate 512 — — 540 — — Installment and Other Consumer 146 — — 543 — — $ 4,396 $ 24 $ 24 $ 4,656 $ 19 $ 19 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ — $ — $ — $ 141 $ — $ — CRE Owner-Occupied CRE — — — 123 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 9,757 — — 3,254 — — Direct Financing Leases — — — 120 — — Residential Real Estate 260 — — 390 — — Installment and Other Consumer 77 — — 84 — — $ 10,094 $ — $ — $ 4,112 $ — $ — Total Impaired Loans/Leases: C&I $ 1,825 $ 11 $ 11 $ 1,574 $ 6 $ 6 CRE Owner-Occupied CRE 292 — — 165 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 10,425 7 7 3,993 7 7 Direct Financing Leases 953 6 6 1,479 6 6 Residential Real Estate 772 — — 930 — — Installment and Other Consumer 223 — — 627 — — $ 14,490 $ 24 $ 24 $ 8,768 $ 19 $ 19 Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2019 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 $ 1,607 $ 1,647 $ — CRE Owner-Occupied CRE 34 50 — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 684 686 — Direct Financing Leases 1,642 1,642 — Residential Real Estate 469 614 — Installment and Other Consumer 476 476 — $ 4,912 $ 5,115 $ — Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 239 $ 239 $ 170 CRE Owner-Occupied CRE — — — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 2,867 2,867 125 Direct Financing Leases 383 383 270 Residential Real Estate 180 180 15 Installment and Other Consumer 80 80 80 $ 3,749 $ 3,749 $ 660 Total Impaired Loans/Leases: C&I $ 1,846 $ 1,886 $ 170 CRE Owner-Occupied CRE 34 50 — Commercial Construction, Land Development, and Other Land — — — Other Non Owner-Occupied CRE 3,551 3,553 125 Direct Financing Leases 2,025 2,025 270 Residential Real Estate 649 794 15 Installment and Other Consumer 556 556 80 $ 8,661 $ 8,864 $ 660 |
Financing receivable credit quality indicators | As of September 30, 2020 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) $ 1,610,503 $ 478,852 $ 491,928 $ 929,398 $ 3,510,681 95.91 % Special Mention (Rating 6) 25,547 2,211 680 51,149 79,587 2.17 % Substandard (Rating 7) 24,912 5,191 10,478 29,828 70,409 1.92 % Doubtful (Rating 8) — — — — — — % $ 1,660,962 $ 486,254 $ 503,086 $ 1,010,375 $ 3,660,677 100.00 % As of December 31, 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) $ 1,334,446 $ 439,418 $ 378,572 $ 896,206 $ 3,048,642 98.27 % Special Mention (Rating 6) 12,962 3,044 41 3,905 19,952 0.65 % Substandard (Rating 7) 18,439 1,527 184 13,499 33,649 1.08 % Doubtful (Rating 8) — — — — — — % $ 1,365,847 $ 443,989 $ 378,797 $ 913,610 $ 3,102,243 100.00 % |
Financing receivable credit quality indicators performance status | As of September 30, 2020 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 162,043 $ 72,129 $ 244,157 $ 102,224 $ 580,553 99.65 % Nonperforming 44 882 875 247 2,048 0.35 % $ 162,087 $ 73,011 $ 245,032 $ 102,471 $ 582,601 100.00 % As of December 31, 2019 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 140,992 $ 86,019 $ 239,198 $ 108,763 $ 574,972 99.29 % Nonperforming 986 1,850 706 589 4,131 0.71 % $ 141,978 $ 87,869 $ 239,904 $ 109,352 $ 579,103 100.00 % |
Number and recorded investment of TDRs, by type of concession | For the three months ended September 30, 2020 For the three months ended September 30, 2019 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 3 $ 197 $ 197 $ — — $ — $ — $ — Direct Financing Leases — — — — 3 116 116 — 3 $ 197 $ 197 $ — 3 $ 116 $ 116 $ — CONCESSION - Extension of Maturity Installment and Other Consumer — — — — 1 $ 56 $ 56 $ 56 — $ — $ — $ — 1 $ 56 $ 56 $ 56 TOTAL 3 $ 197 $ 197 $ — 4 $ 172 $ 172 $ 56 For the nine months ended September 30, 2020 For the nine months ended September 30, 2019 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 5 $ 308 $ 308 $ — 1 $ 19 $ 19 $ — Direct Financing Leases 3 145 145 — 6 219 219 20 8 $ 453 $ 453 $ — 7 $ 238 $ 238 $ 20 CONCESSION - Forgiveness of Principal C & I — $ — $ — $ — 1 587 537 — — $ — $ — $ — 1 $ 587 $ 537 $ — CONCESSION - Extension of Maturity Installment and Other Consumer — $ — $ — $ — 1 56 56 56 — $ — $ — $ — 1 $ 56 $ 56 $ 56 TOTAL 8 $ 453 $ 453 $ — 9 $ 881 $ 831 $ 76 |
NOTE 4 - DERIVATIVES AND HEDG_2
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Changes in the fair value of the underlying derivative contracts | September 30, 2020 December 31, 2019 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 1,435,379 $ 236,077 $ 787,221 $ 84,679 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 1,435,379 $ 236,077 $ 787,221 $ 84,679 |
Schedule of hedged interest rate swaps and non-hedged interest rate swaps are collateralized by investment securities with carrying values | September 30, 2020 December 31, 2019 (dollars in thousands) Cash $ 81,373 $ 10,990 U.S govt. sponsored agency securities 3,650 3,541 Municipal securities 50,730 68,089 Residential mortgage-backed and related securities 105,631 27,027 $ 241,384 $ 109,647 |
Interest rate cap | |
Notes Tables | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate September 30, 2020 December 31, 2019 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Other Assets $ 25,000 1.75 % $ 6 $ 112 Deposits 1/1/2020 1/1/2023 Other Assets 50,000 1.57 11 218 Deposits 1/1/2020 1/1/2023 Other Assets 25,000 1.90 5 96 Deposits 1/1/2020 1/1/2023 Other Assets 25,000 1.80 6 109 Deposits 1/1/2020 1/1/2024 Other Assets 25,000 1.75 17 214 Deposits 1/1/2020 1/1/2024 Other Assets 50,000 1.57 35 401 Deposits 2/1/2020 2/1/2024 Other Assets 25,000 1.90 17 202 Deposits 1/1/2020 1/1/2024 Other Assets 25,000 1.80 17 201 Deposits 1/1/2020 1/1/2025 Other Assets 25,000 1.75 37 337 Deposits 1/1/2020 1/1/2025 Other Assets 50,000 1.57 75 617 Deposits 3/1/2020 3/1/2025 Other Assets 25,000 1.90 40 332 Deposits 1/1/2020 1/1/2025 Other Assets 25,000 1.80 38 309 $ 375,000 $ 304 $ 3,148 |
Interest rate swap | |
Notes Tables | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate September 30, 2020 December 31, 2019 (dollars in thousands) CRBT - FHLB Advances or Brokered CDs 3/16/2020 3/16/2023 Derivatives - Liabilities $ 30,000 0.23 % 1.12 % $ (660) $ - SFCB - FHLB Advances or Brokered CDs 3/16/2020 3/16/2023 Derivatives - Liabilities 10,000 0.24 % 0.95 % (181) - QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities 10,000 3.07 % 5.85 % (1,963) (971) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 3.07 % 5.85 % (1,570) (777) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 1.83 % 4.54 % (1,909) (944) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 2.40 % 5.17 % (587) (291) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 2.00 % 4.75 % (684) (339) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 2.00 % 4.75 % (879) (436) $ 79,000 1.34 % 5.24 % $ (8,433) $ (3,758) |
NOTE 5 - SUBORDINATED NOTES (Ta
NOTE 5 - SUBORDINATED NOTES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
SUBORDINATED NOTES | |
Summary of subordinated notes | Amount Outstanding Interest Rate Amount Outstanding Interest Rate as of September 30, 2020 as of September 30, 2020 as of December 31, 2019 as of December 31, 2019 Maturity Date (dollars in thousands) Subordinated debenture dated 9/14/20 $ 50,000 5.125 % $ - — % 9/15/2030 Subordinated debenture dated 2/1/19 65,000 5.375 % 65,000 5.375 % 9/15/2030 Subordinated debenture dated 4/30/16* 2,000 4.00 % 2,000 4.00 % 4/30/2026 Subordinated debenture dated 9/15/16* 3,000 4.00 % 3,000 4.00 % 9/15/2026 Debt issuance costs (1,423) (1,606) Total Subordinated Debentures $ 118,577 $ 68,394 *Assumed in acquisition of SFCB |
NOTE 6 - EARNINGS PER SHARE (Ta
NOTE 6 - EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 (dollars in thousands, except share data) Net income $ 17,344 $ 15,095 $ 42,311 $ 41,517 Basic EPS $ 1.10 $ 0.96 $ 2.68 $ 2.64 Diluted EPS $ 1.09 $ 0.94 $ 2.65 $ 2.60 Weighted average common shares outstanding 15,767,152 15,739,430 15,770,335 15,715,788 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 156,426 237,312 175,497 230,232 Weighted average common and common equivalent shares outstanding 15,923,578 15,976,742 15,945,832 15,946,020 |
NOTE 7 - FAIR VALUE (Tables)
NOTE 7 - FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of assets measured at fair value | 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, 2020: Securities AFS: U.S. govt. sponsored agency securities $ 18,437 $ — $ 18,437 $ — Residential mortgage-backed and related securities 134,147 — 134,147 — Municipal securities 135,233 — 135,233 — Asset-backed securities 40,665 — 40,665 — Other securities 18,714 — 18,714 — Derivatives 236,381 — 236,381 — Total assets measured at fair value $ 583,577 $ — $ 583,577 $ — Derivatives $ 244,510 $ — $ 244,510 $ — Total liabilities measured at fair value $ 244,510 $ — $ 244,510 $ — December 31, 2019: Securities AFS: U.S. govt. sponsored agency securities $ 20,078 $ — $ 20,078 $ — Residential mortgage-backed and related securities 120,587 — 120,587 — Municipal securities 48,257 — 48,257 — Asset-backed securities 16,887 — 16,887 — Other securities 4,886 — 4,886 — Derivatives 87,827 — 87,827 — Total assets measured at fair value $ 298,522 $ — $ 298,522 $ — Derivatives $ 88,437 $ — $ 88,437 $ — Total liabilities measured at fair value $ 88,437 $ — $ 88,437 $ — 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, 2020: Impaired loans/leases $ 11,226 $ — $ — $ 11,226 OREO 135 — — 135 $ 11,361 $ — $ — $ 11,361 December 31, 2019: Impaired loans/leases $ 3,394 $ — $ — $ 3,394 OREO 4,459 — — 4,459 $ 7,853 $ — $ — $ 7,853 |
Schedule of assets measured at fair value, valuation techniques | Quantitative Information about Level Fair Value Measurements Fair Value Fair Value September 30, December 31, 2020 2019 Valuation Technique Unobservable Input Range (dollars in thousands) Impaired loans/leases $ 11,226 $ 3,394 Appraisal of collateral Appraisal adjustments (10.00) % to (30.00) % OREO 135 4,459 Appraisal of collateral Appraisal adjustments 0.00 % to (35.00) % |
Schedule of assets and liabilities measured at fair value | Fair Value As of September 30, 2020 As of December 31, 2019 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 68,932 $ 68,932 $ 76,254 $ 76,254 Federal funds sold Level 2 530 530 9,800 9,800 Interest-bearing deposits at financial institutions Level 2 302,138 302,138 147,891 147,891 Investment securities: HTM Level 2 434,892 460,199 400,646 426,545 AFS * 347,196 347,196 210,695 210,695 Loans/leases receivable, net Level 3 10,394 11,226 3,143 3,394 Loans/leases receivable, net Level 2 4,158,001 4,142,232 3,651,061 3,606,520 Derivatives Level 2 236,381 236,381 87,827 87,827 Deposits: Nonmaturity deposits Level 2 4,116,250 4,116,250 3,184,726 3,184,726 Time deposits Level 2 556,018 562,068 726,325 742,444 Short-term borrowings Level 2 30,430 30,430 13,423 13,423 FHLB advances Level 2 40,000 40,182 159,300 159,193 Subordinated notes Level 2 118,577 118,724 68,394 68,563 Junior subordinated debentures Level 2 37,955 30,487 37,838 30,477 Derivatives Level 2 244,510 244,510 88,437 88,437 |
NOTE 8 - BUSINESS SEGMENT INF_2
NOTE 8 - BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of business segment information | Commercial Banking Wealth Intercompany Consolidated QCBT CRBT CSB SFCB Management All other Eliminations Total (dollars in thousands) Three Months Ended September 30, 2020 Total revenue $ 20,856 $ 43,331 $ 11,033 $ 10,266 $ 3,545 $ 21,657 $ (21,839) $ 88,849 Net interest income 16,648 14,432 8,593 6,159 — (1,531) 280 44,581 Provision for loan/lease losses 7,861 8,878 2,493 1,110 — — — 20,342 Net income (loss) from continuing operations 2,455 13,221 1,867 2,869 1,053 17,362 (21,483) 17,344 Goodwill 3,223 14,980 9,888 45,975 — — — 74,066 Intangibles — 2,313 3,474 6,115 — — — 11,902 Total assets 2,205,934 2,012,182 937,016 803,478 — 756,716 (850,766) 5,864,560 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 for loan/lease losses 948 150 150 276 — 488 — 2,012 Net income (loss) from continuing operations 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 Nine Months Ended September 30, 2020 Total revenue $ 60,083 $ 99,938 $ 30,836 $ 28,490 $ 11,211 $ 55,087 $ (55,342) $ 230,303 Net interest income 46,728 38,638 23,631 18,002 — (4,514) 758 123,243 Provision for loan/lease losses 18,583 18,288 7,268 4,485 — — — 48,624 Net income (loss) 10,664 30,178 3,496 6,974 2,860 42,296 (54,157) 42,311 Goodwill 3,223 14,980 9,888 45,975 — — — 74,066 Intangibles — 2,313 3,474 6,115 — — — 11,902 Total assets 2,205,934 2,012,182 937,016 803,478 — 756,716 (850,766) 5,864,560 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) from continuing operations 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 |
NOTE 9 - REGULATORY CAPITAL R_2
NOTE 9 - REGULATORY CAPITAL REQUIREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020: Company: Total risk-based capital $ 700,831 14.93 % $ 375,643 > 8.00 % $ 493,031 > 10.50 % $ 469,553 > 10.00 % Tier 1 risk-based capital 528,228 11.25 281,732 > 6.00 399,120 > 8.50 375,643 > 8.00 Tier 1 leverage 528,228 9.21 229,457 > 4.00 229,457 > 4.00 286,822 > 5.00 Common equity Tier 1 490,273 10.44 211,299 > 4.50 328,687 > 7.00 305,210 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 204,284 12.13 % $ 134,760 > 8.00 % $ 176,872 > 10.50 % $ 168,450 > 10.00 % Tier 1 risk-based capital 183,131 10.87 101,070 > 6.00 143,182 > 8.50 134,760 > 8.00 Tier 1 leverage 183,131 7.85 93,313 > 4.00 93,313 > 4.00 116,642 > 5.00 Common equity Tier 1 183,131 10.87 75,802 > 4.50 117,915 > 7.00 109,492 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 214,219 12.92 % $ 132,656 > 8.00 % $ 174,112 > 10.50 % $ 165,821 > 10.00 % Tier 1 risk-based capital 193,384 11.66 99,492 > 6.00 140,948 > 8.50 132,656 > 8.00 Tier 1 leverage 193,384 9.72 79,559 > 4.00 79,559 > 4.00 99,449 > 5.00 Common equity Tier 1 193,384 11.66 74,619 > 4.50 116,074 > 7.00 107,783 > 6.50 Community State Bank: Total risk-based capital $ 99,123 12.74 % $ 62,222 > 8.00 % $ 81,666 > 10.50 % $ 77,777 > 10.00 % Tier 1 risk-based capital 89,359 11.49 46,666 > 6.00 66,110 > 8.50 62,222 > 8.00 Tier 1 leverage 89,359 9.85 36,273 > 4.00 36,273 > 4.00 45,341 > 5.00 Common equity Tier 1 89,359 11.49 35,000 > 4.50 54,444 > 7.00 50,555 > 6.50 Springfield First Community Bank: Total risk-based capital $ 83,283 13.68 % $ 48,718 > 8.00 % $ 63,943 > 10.50 % $ 60,898 > 10.00 % Tier 1 risk-based capital 71,617 11.76 36,539 > 6.00 51,763 > 8.50 48,718 > 8.00 Tier 1 leverage 71,617 10.27 27,903 > 4.00 27,903 > 4.00 34,879 > 5.00 Common equity Tier 1 71,617 11.76 27,404 > 4.50 42,629 > 7.00 39,584 > 6.50 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, 2019: Company: Total risk-based capital $ 581,234 13.33 % $ 348,937 > 8.00 % $ 457,980 > 10.500 % $ 436,171 > 10.00 % Tier 1 risk-based capital 481,702 11.04 261,703 > 6.00 370,746 > 8.500 348,937 > 8.00 Tier 1 leverage 481,702 9.53 202,207 > 4.00 202,207 > 4.000 252,758 > 5.00 Common equity Tier 1 443,864 10.18 196,277 > 4.50 305,320 > 7.000 283,511 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 183,855 11.83 % $ 124,362 > 8.00 % $ 163,225 > 10.500 % $ 155,452 > 10.00 % Tier 1 risk-based capital 170,137 10.94 93,271 > 6.00 132,134 > 8.500 124,362 > 8.00 Tier 1 leverage 170,137 9.94 68,479 > 4.00 68,479 > 4.000 85,598 > 5.00 Common equity Tier 1 170,137 10.94 69,953 > 4.50 108,817 > 7.000 101,044 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 175,498 11.90 % $ 117,953 > 8.00 % $ 154,813 > 10.500 % $ 147,441 > 10.00 % Tier 1 risk-based capital 162,127 11.00 88,465 > 6.00 125,325 > 8.500 117,953 > 8.00 Tier 1 leverage 162,127 10.41 62,286 > 4.00 62,286 > 4.000 77,857 > 5.00 Common equity Tier 1 162,127 11.00 66,349 > 4.50 103,209 > 7.000 95,837 > 6.50 Community State Bank: Total risk-based capital $ 92,095 12.32 % $ 59,813 > 8.00 % $ 78,504 > 10.500 % $ 74,766 > 10.00 % Tier 1 risk-based capital 85,437 11.43 44,860 > 6.00 63,551 > 8.500 59,813 > 8.00 Tier 1 leverage 85,437 10.39 32,902 > 4.00 32,902 > 4.000 41,128 > 5.00 Common equity Tier 1 85,437 11.43 33,645 > 4.50 52,336 > 7.000 48,598 > 6.50 Springfield First Community Bank: Total risk-based capital $ 71,074 12.72 % $ 44,704 > 8.00 % $ 58,674 > 10.500 % $ 55,880 > 10.00 % Tier 1 risk-based capital 63,956 11.45 33,528 > 6.00 47,498 > 8.500 44,704 > 8.00 Tier 1 leverage 63,956 9.70 26,379 > 4.00 26,379 > 4.000 32,974 > 5.00 Common equity Tier 1 63,956 11.45 25,146 > 4.50 39,116 > 7.000 36,322 > 6.50 |
Note 10 - SALE OF SUBSIDIARY (T
Note 10 - SALE OF SUBSIDIARY (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
SALE OF SUBSIDIARY | |
Schedule of assets and liabilities sold | As of August 12, 2020 (dollars in thousands) ASSETS Cash and due from banks $ 349 Premises and equipment, net 19 Other assets 2,211 Total assets sold $ 2,579 LIABILITIES Other liabilities $ 946 Total liabilities sold $ 946 Net assets sold $ 1,633 Forgiveness of earn-out consideration 880 Note receivable consideration 448 Loss on sale of subsidiary $ 305 |
NOTE 1 - SUMMARY OF SIGNIFICA_3
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Sep. 30, 2020subsidiaryshares | Dec. 31, 2019shares |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Number of subsidiaries commercial banks | subsidiary | 4 | |
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Common stock, outstanding (in shares) | 15,792,357 | 15,828,098 |
NOTE 1 - SUMMARY OF SIGNIFICA_4
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent account developments (Details) - Pro Forma - Accounting Standards Update 2016-13 - USD ($) $ in Millions | Sep. 30, 2020 | Jan. 01, 2020 |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase in allowance for estimated losses on loans or leases | $ 3 | $ 3 |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase in allowance for estimated losses on loans or leases | $ 8 | $ 8 |
NOTE 2 - INVESTMENT SECURITIE_2
NOTE 2 - INVESTMENT SECURITIES (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)itemstate | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)itemstate | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)stateitem | |
Number of securities | item | 647 | 647 | |||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions | item | 73 | 73 | |||
Aggregate losses of securities (as a percent) | 0.30% | 0.30% | |||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | 0 | 0 | |||
Other than temporary impairment losses, investments | $ 0 | $ 0 | $ 0 | $ 0 | |
Sale of securities | 22,252,000 | 23,364,000 | 28,579,000 | 28,025,000 | |
Gain on sale | $ 1,802,000 | $ 143,000 | $ 1,936,000 | $ 150,000 | |
Number Of Charters Owning Municipal Securities | item | 4 | ||||
Municipal securities | General Obligation Bonds | |||||
Number of issuers | item | 114 | 114 | 93 | ||
Other investments | $ 110,300,000 | $ 110,300,000 | $ 77,200,000 | ||
Number of states holding investments | state | 21 | 21 | 22 | ||
Municipal securities | General Obligation Bonds | Minimum | |||||
Other investments | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | ||
Municipal securities | General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | |||||
Number of states holding investments | state | 9 | 9 | 6 | ||
Municipal securities | Revenue Bonds | |||||
Number of issuers | item | 182 | 182 | 154 | ||
Other investments | $ 484,100,000 | $ 484,100,000 | $ 396,600,000 | ||
Number of states holding investments | 24 | 24 | 17 | ||
Municipal securities | Revenue Bonds | Minimum | |||||
Other investments | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | ||
Municipal securities | Revenue Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | |||||
Number of states holding investments | 13 | 13 | 9 |
NOTE 2 - INVESTMENT SECURITIE_3
NOTE 2 - INVESTMENT SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities held to maturity: | ||
Securities held to maturity, at amortized cost | $ 434,892 | $ 400,646 |
Securities held to maturity, gross unrealized gains | 26,292 | 26,042 |
Securities held to maturity, gross unrealized (losses) | (985) | (143) |
Securities held to maturity, fair value | 460,199 | 426,545 |
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 336,863 | 206,962 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 11,594 | 4,068 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1,261) | (335) |
Debt Securities, Available-for-sale | 347,196 | 210,695 |
Municipal securities | ||
Securities held to maturity: | ||
Securities held to maturity, at amortized cost | 433,842 | 399,596 |
Securities held to maturity, gross unrealized gains | 26,292 | 26,042 |
Securities held to maturity, gross unrealized (losses) | (984) | (143) |
Securities held to maturity, fair value | 459,150 | 425,495 |
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 132,545 | 46,659 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3,497 | 1,602 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (809) | (4) |
Debt Securities, Available-for-sale | 135,233 | 48,257 |
U.S. govt. sponsored agency securities | ||
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 17,791 | 19,872 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 667 | 283 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (21) | (77) |
Debt Securities, Available-for-sale | 18,437 | 20,078 |
Residential mortgage-backed and related securities | ||
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 128,281 | 118,724 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 6,158 | 2,045 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (292) | (182) |
Debt Securities, Available-for-sale | 134,147 | 120,587 |
Asset-backed securities | ||
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 39,696 | 16,958 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,108 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (139) | (71) |
Debt Securities, Available-for-sale | 40,665 | 16,887 |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, at amortized cost | 1,050 | 1,050 |
Securities held to maturity, gross unrealized (losses) | (1) | |
Securities held to maturity, fair value | 1,049 | 1,050 |
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 18,550 | 4,749 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 164 | 138 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1) | |
Debt Securities, Available-for-sale | $ 18,714 | $ 4,886 |
NOTE 2 - INVESTMENT SECURITIE_4
NOTE 2 - INVESTMENT SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities held to maturity: | ||
Securities held to maturity, less than 12 months, fair value | $ 34,301 | $ 1,059 |
Securities held to maturity, less than 12 months, gross unrealized losses | (985) | (1) |
Securities held to maturity, 12 months or more, fair value | 10,047 | |
Securities held to maturity, 12 months or more, gross unrealized losses | (142) | |
Securities held to maturity, fair value | 34,301 | 11,106 |
Securities held to maturity, gross unrealized losses | (985) | (143) |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 78,440 | 20,829 |
Securities available for sale, less than 12 months, gross unrealized losses | (1,261) | (110) |
Securities available for sale, 12 months or more, fair value | 20,703 | |
Securities available for sale, 12 months or more, gross unrealized losses | (225) | |
Securities available for sale, fair value | 78,440 | 41,532 |
Securities available for sale, gross unrealized losses | (1,261) | (335) |
Municipal securities | ||
Securities held to maturity: | ||
Securities held to maturity, less than 12 months, fair value | 33,252 | 509 |
Securities held to maturity, less than 12 months, gross unrealized losses | (984) | (1) |
Securities held to maturity, 12 months or more, fair value | 10,047 | |
Securities held to maturity, 12 months or more, gross unrealized losses | (142) | |
Securities held to maturity, fair value | 33,252 | 10,556 |
Securities held to maturity, gross unrealized losses | (984) | (143) |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 27,277 | |
Securities available for sale, less than 12 months, gross unrealized losses | (809) | |
Securities available for sale, 12 months or more, fair value | 724 | |
Securities available for sale, 12 months or more, gross unrealized losses | (4) | |
Securities available for sale, fair value | 27,277 | 724 |
Securities available for sale, gross unrealized losses | (809) | (4) |
U.S. govt. sponsored agency securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 3,243 | 1,431 |
Securities available for sale, less than 12 months, gross unrealized losses | (21) | (21) |
Securities available for sale, 12 months or more, fair value | 2,117 | |
Securities available for sale, 12 months or more, gross unrealized losses | (56) | |
Securities available for sale, fair value | 3,243 | 3,548 |
Securities available for sale, gross unrealized losses | (21) | (77) |
Residential mortgage-backed and related securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 31,124 | 2,263 |
Securities available for sale, less than 12 months, gross unrealized losses | (292) | (17) |
Securities available for sale, 12 months or more, fair value | 17,862 | |
Securities available for sale, 12 months or more, gross unrealized losses | (165) | |
Securities available for sale, fair value | 31,124 | 20,125 |
Securities available for sale, gross unrealized losses | (292) | (182) |
Asset-backed securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 16,796 | 16,886 |
Securities available for sale, less than 12 months, gross unrealized losses | (139) | (71) |
Securities available for sale, fair value | 16,796 | 16,886 |
Securities available for sale, gross unrealized losses | (139) | (71) |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, less than 12 months, fair value | 1,049 | 550 |
Securities held to maturity, less than 12 months, gross unrealized losses | (1) | |
Securities held to maturity, fair value | 1,049 | 550 |
Securities held to maturity, gross unrealized losses | $ (1) | |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 249 | |
Securities available for sale, less than 12 months, gross unrealized losses | (1) | |
Securities available for sale, fair value | 249 | |
Securities available for sale, gross unrealized losses | $ (1) |
NOTE 2 - INVESTMENT SECURITIE_5
NOTE 2 - INVESTMENT SECURITIES - Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INVESTMENT SECURITIES | ||||
Proceeds from sales of securities | $ 22,252 | $ 23,364 | $ 28,579 | $ 28,025 |
Gross gains from sales of securities | $ 1,802 | 143 | 1,936 | 150 |
Gross losses from sales of securities | $ (146) | $ (69) | $ (206) |
NOTE 2 - INVESTMENT SECURITIE_6
NOTE 2 - INVESTMENT SECURITIES - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities held to maturity: | ||
Securities held to maturity, due in one year or less, amortized cost | $ 3,509 | |
Securities held to maturity, due in one year or less, fair value | 3,525 | |
Securities held to maturity, due after one year through five years, amortized cost | 32,354 | |
Securities held to maturity, due after one year through five years, fair value | 32,909 | |
Securities held to maturity, due after five years, amortized cost | 399,029 | |
Securities held to maturity, due after five years, fair value | 423,765 | |
Securities held to maturity, amortized cost | 434,892 | |
Securities held to maturity, fair value | 460,199 | $ 426,545 |
Securities available for sale: | ||
Securities available for sale, due in one year or less, amortized cost | 7,795 | |
Securities available for sale, Due in one year or less, fair value | 7,810 | |
Securities available for sale, due after one year through five years, amortized cost | 14,010 | |
Securities available for sale, Due after one year through five years, fair value | 14,423 | |
Securities available for sale, due after five years, amortized cost | 147,081 | |
Securities available for sale, Due after five years, fair value | 150,151 | |
Securities available for sale, single maturity, amortized cost | 168,886 | |
Securities available for sale, single maturity, fair value | 172,384 | |
Securities available for sale, amortized cost | 336,863 | 206,962 |
Securities available for sale, fair value | 347,196 | 210,695 |
Callable Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 122,530 | |
Securities available for sale, callable, fair value | 125,035 | |
Municipal securities | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 459,150 | 425,495 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 132,545 | 46,659 |
Securities available for sale, fair value | 135,233 | 48,257 |
Municipal securities | Callable Securities [Member] | ||
Securities held to maturity: | ||
Securities held to maturity, callable, amortized cost | 204 | |
Securities held to maturity, callable, fair value | 203 | |
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 118,030 | |
Securities available for sale, callable, fair value | 120,371 | |
Asset-backed securities | ||
Securities held to maturity: | ||
Securities held to maturity, callable, amortized cost | 39,696 | |
Securities held to maturity, callable, fair value | 40,665 | |
Securities available for sale: | ||
Securities available for sale, amortized cost | 39,696 | 16,958 |
Securities available for sale, fair value | 40,665 | 16,887 |
Residential mortgage-backed and related securities | ||
Securities held to maturity: | ||
Securities held to maturity, callable, amortized cost | 128,281 | |
Securities held to maturity, callable, fair value | 134,147 | |
Securities available for sale: | ||
Securities available for sale, amortized cost | 128,281 | 118,724 |
Securities available for sale, fair value | 134,147 | 120,587 |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 1,049 | 1,050 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 18,550 | 4,749 |
Securities available for sale, fair value | 18,714 | $ 4,886 |
Other Securities | Callable Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 4,500 | |
Securities available for sale, callable, fair value | $ 4,664 |
NOTE 3 - LOANS_LEASES RECEIVA_3
NOTE 3 - LOANS/LEASES RECEIVABLE (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($)itemloan | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($)loan | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)loanitemcontract | Sep. 30, 2019USD ($)loanitem | |
Loans and leases | $ 4,243,278 | $ 3,681,346 | $ 4,243,278 | |||
Loans receivable held for sale | 8,811 | 3,673 | 8,811 | |||
Nonaccrual Loans/Leases | 17,597 | 7,902 | 17,597 | |||
Accruing TDRs | $ 1,300 | 1,700 | $ 1,300 | |||
Nonaccrual Loans/Leases | loan | 3 | 4 | 8 | 9 | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 197 | 55 | $ 172 | $ 453 | $ 831 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | item | 1 | 3 | 2 | |||
Number of nonaccrual restructured loans | loan | 0 | 0 | ||||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 128 | $ 482 | $ 108 | |||
Number of TDRs restructured and written off | item | 3 | 10 | 3 | |||
Accruing Past Due 90 Days or More | $ 86 | 33 | $ 86 | |||
Financing Receivable, Modification, Number of Contracts | contract | 2,451 | |||||
Financing Receivable, Loan Modification, Not Treated as Troubled Debt Restructuring | 575,000 | $ 575,000 | ||||
m2 Lease Funds, LLC | ||||||
Financing Receivable, Modification, Number of Contracts | contract | 953 | |||||
Financing Receivable, Loan Modification, Not Treated as Troubled Debt Restructuring | 53,000 | $ 53,000 | ||||
Loan Relief Program | ||||||
Number of Leases | loan | 238 | |||||
Loans and leases | $ 83,000 | $ 83,000 | ||||
Loans and leases, Percent | 1.95% | 1.95% | ||||
Financing Receivable, Modification, Number of Contracts | contract | 1,498 | |||||
Financing Receivable, Loan Modification, Not Treated as Troubled Debt Restructuring | $ 522,000 | $ 522,000 | ||||
Financial Receivables Loan Modification, Percent | 13.53% | 13.53% | ||||
One Customer [Member] | ||||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 32 | $ 66 | ||||
Nonaccrual [Member] | ||||||
Nonaccrual Loans/Leases | loan | 3 | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 121 | |||||
Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | $ 204 | 747,000 | $ 204 | |||
Residential Portfolio Segment [Member] | ||||||
Loans and leases | 245,032 | 239,904 | 245,032 | |||
Loans receivable held for sale | 8,800 | 3,700 | 8,800 | |||
Nonaccrual Loans/Leases | 814 | 706 | 814 | |||
Accruing Past Due 90 Days or More | 60 | 60 | ||||
Residential Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | 31 | |||||
Commercial Portfolio Segment [Member] | ||||||
Loans and leases | 1,823,049 | 1,507,825 | 1,823,049 | |||
Nonaccrual Loans/Leases | 4,981 | 1,236 | 4,981 | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 48 | |||||
Commercial Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | 48 | 98 | 48 | |||
Commercial Portfolio Segment [Member] | m2 Lease Funds, LLC | ||||||
Loans and leases | 162,100 | 142,000 | 162,100 | |||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Loans and leases | 1,999,715 | 1,736,396 | 1,999,715 | |||
Commercial Real Estate Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | 50 | 269,000 | 50 | |||
Finance Leases Portfolio Segment [Member] | ||||||
Loans and leases | 73,011 | 87,869 | 73,011 | |||
Nonaccrual Loans/Leases | 649 | 1,517 | 649 | |||
Finance Leases Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | 294 | |||||
Consumer Portfolio Segment [Member] | ||||||
Loans and leases | 102,471 | 109,352 | 102,471 | |||
Nonaccrual Loans/Leases | 221 | 556 | 221 | |||
Accruing Past Due 90 Days or More | 26 | 33 | 26 | |||
Consumer Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | ||||||
Nonaccrual Loans/Leases | $ 106 | $ 55 | $ 106 |
NOTE 3 - LOANS_LEASES RECEIVA_4
NOTE 3 - LOANS/LEASES RECEIVABLE - Composition of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Gross loans/leases receivable | $ 4,247,977 | $ 3,690,205 | ||||
Less allowance | (79,582) | $ (60,827) | (36,001) | $ (36,116) | $ (41,104) | $ (39,847) |
Net loans/leases receivable | 4,168,395 | 3,654,204 | ||||
Plus deferred loan/lease origination costs, net of fees. | 4,699 | 8,859 | ||||
Loans and leases receivable | 4,243,278 | 3,681,346 | ||||
Commercial Portfolio Segment [Member] | ||||||
Less allowance | (33,827) | (25,748) | (16,072) | (16,151) | (18,248) | (16,420) |
Loans and leases receivable | 1,823,049 | 1,507,825 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Less allowance | (39,253) | (29,123) | (15,379) | (15,291) | (17,363) | (17,719) |
Loans and leases receivable | 1,999,715 | 1,736,396 | ||||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||||||
Loans and leases receivable | 486,254 | 443,989 | ||||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||||
Loans and leases receivable | 503,086 | 378,797 | ||||
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||||||
Loans and leases receivable | 1,010,375 | 913,610 | ||||
Finance Leases Portfolio Segment [Member] | ||||||
Net minimum lease receivable | 80,560 | 97,025 | ||||
Estimated unguaranteed residual values of leased assets | 616 | 547 | ||||
Unearned lease/residual income | (8,165) | (9,703) | ||||
Gross loans/leases receivable | 74,281 | 89,761 | ||||
Less allowance | (1,902) | (1,639) | (1,464) | (1,302) | (1,459) | (1,792) |
Net loans/leases receivable | 72,379 | 88,297 | ||||
Plus deferred loan/lease origination costs, net of fees. | 1,270 | 1,892 | ||||
Loans and leases receivable | 73,011 | 87,869 | ||||
Residential Portfolio Segment [Member] | ||||||
Less allowance | (3,263) | (3,010) | (1,948) | (2,158) | (2,582) | (2,557) |
Loans and leases receivable | 245,032 | 239,904 | ||||
Consumer Portfolio Segment [Member] | ||||||
Less allowance | (1,337) | $ (1,307) | (1,138) | $ (1,214) | $ (1,452) | $ (1,359) |
Loans and leases receivable | $ 102,471 | $ 109,352 |
NOTE 3 - LOANS_LEASES RECEIVA_5
NOTE 3 - LOANS/LEASES RECEIVABLE - Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance at the beginning of the period | $ (4,993) | $ (8,640) | $ (6,435) | $ (10,794) |
Reclassification of nonaccretable discount to accretable | (30) | (159) | ||
Accretion recognized | 942 | 1,438 | 2,414 | 3,751 |
Balance at the end of the period | (4,051) | (7,202) | (4,051) | (7,202) |
PCI Loans | ||||
Balance at the beginning of the period | (58) | (151) | (57) | (667) |
Reclassification of nonaccretable discount to accretable | (30) | (159) | ||
Accretion recognized | 1 | 94 | 30 | 769 |
Balance at the end of the period | (57) | (57) | (57) | (57) |
Performing Loans | ||||
Balance at the beginning of the period | (4,935) | (8,489) | (6,378) | (10,127) |
Accretion recognized | 941 | 1,344 | 2,384 | 2,982 |
Balance at the end of the period | $ (3,994) | $ (7,145) | $ (3,994) | $ (7,145) |
NOTE 3 - LOANS_LEASES RECEIVA_6
NOTE 3 - LOANS/LEASES RECEIVABLE - Aging of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current | $ 4,222,304 | $ 3,659,453 |
Accruing Past Due 90 Days or More | 86 | 33 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 17,597 | 7,902 |
Loans and leases | $ 4,243,278 | $ 3,681,346 |
Current as a percentage of total loan/lease portfolio | 99.52% | 99.41% |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0.00% | 0.00% |
Nonaccrual Loans/Leases as a percentage of total loan/lease portfolio | 0.41% | 0.21% |
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 | $ 2,306 | $ 12,638 |
Past due as a percentage of total loan/lease portfolio | 0.05% | 0.34% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | $ 985 | $ 1,320 |
Past due as a percentage of total loan/lease portfolio | 0.02% | 0.04% |
Commercial Portfolio Segment [Member] | ||
Current | $ 1,816,454 | $ 1,499,891 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 4,981 | 1,236 |
Loans and leases | 1,823,049 | 1,507,825 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 1,275 | 6,126 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 339 | 572 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and leases | 1,999,715 | 1,736,396 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Current | 485,950 | 443,707 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 304 | 34 |
Loans and leases | 486,254 | 443,989 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Current | 503,086 | 375,940 |
Loans and leases | 503,086 | 378,797 |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Current | 999,369 | 909,684 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 10,628 | 3,853 |
Loans and leases | 1,010,375 | 913,610 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 177 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loans [Member] | ||
Past Due | 2,857 | |
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 | 378 | 73 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 71 | |
Finance Leases Portfolio Segment [Member] | ||
Current | 71,692 | 85,636 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 649 | 1,517 |
Loans and leases | 73,011 | 87,869 |
Finance Leases Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 619 | 463 |
Finance Leases Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 51 | 253 |
Residential Portfolio Segment [Member] | ||
Current | 243,646 | 235,845 |
Accruing Past Due 90 Days or More | 60 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 814 | 706 |
Loans and leases | 245,032 | 239,904 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 2,939 | |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 512 | 414 |
Consumer Portfolio Segment [Member] | ||
Current | 102,107 | 108,750 |
Accruing Past Due 90 Days or More | 26 | 33 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 221 | 556 |
Loans and leases | 102,471 | 109,352 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 34 | 3 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | $ 83 | $ 10 |
NOTE 3 - LOANS_LEASES RECEIVA_7
NOTE 3 - LOANS/LEASES RECEIVABLE - Loans Leases Nonperforming Loans Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accruing Past Due 90 Days or More | $ 86 | $ 33 |
Nonaccrual Loans/Leases | 17,597 | 7,902 |
Accruing TDRs | 1,300 | 1,700 |
Loans and Leases Receivable, Net of Deferred Income | $ 4,243,278 | $ 3,681,346 |
Percentage of Total NPLs | 100.00% | 100.00% |
Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | $ 86 | $ 33 |
Nonaccrual Loans/Leases | 17,597 | 7,902 |
Accruing TDRs | 1,061 | 979 |
Loans and Leases Receivable, Net of Deferred Income | $ 18,744 | $ 8,914 |
Percentage of Total NPLs | 100.00% | 100.00% |
Commercial Portfolio Segment [Member] | ||
Nonaccrual Loans/Leases | $ 4,981 | $ 1,236 |
Loans and Leases Receivable, Net of Deferred Income | 1,823,049 | 1,507,825 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 4,981 | 1,236 |
Accruing TDRs | 828 | 646 |
Loans and Leases Receivable, Net of Deferred Income | $ 5,809 | $ 1,882 |
Percentage of Total NPLs | 30.99% | 21.12% |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 1,999,715 | $ 1,736,396 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 304 | 34 |
Loans and Leases Receivable, Net of Deferred Income | 486,254 | 443,989 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | 503,086 | 378,797 |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 10,628 | 3,853 |
Loans and Leases Receivable, Net of Deferred Income | 1,010,375 | 913,610 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 304 | 34 |
Loans and Leases Receivable, Net of Deferred Income | $ 304 | $ 34 |
Percentage of Total NPLs | 1.62% | 0.38% |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | $ 10,628 | $ 3,853 |
Loans and Leases Receivable, Net of Deferred Income | $ 10,628 | $ 3,853 |
Percentage of Total NPLs | 56.70% | 43.22% |
Finance Leases Portfolio Segment [Member] | ||
Nonaccrual Loans/Leases | $ 649 | $ 1,517 |
Loans and Leases Receivable, Net of Deferred Income | 73,011 | 87,869 |
Finance Leases Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 649 | 1,517 |
Accruing TDRs | 233 | 333 |
Loans and Leases Receivable, Net of Deferred Income | $ 882 | $ 1,850 |
Percentage of Total NPLs | 4.71% | 20.75% |
Residential Portfolio Segment [Member] | ||
Accruing Past Due 90 Days or More | $ 60 | |
Nonaccrual Loans/Leases | 814 | $ 706 |
Loans and Leases Receivable, Net of Deferred Income | 245,032 | 239,904 |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 60 | |
Nonaccrual Loans/Leases | 814 | 706 |
Loans and Leases Receivable, Net of Deferred Income | $ 874 | $ 706 |
Percentage of Total NPLs | 4.66% | 7.92% |
Consumer Portfolio Segment [Member] | ||
Accruing Past Due 90 Days or More | $ 26 | $ 33 |
Nonaccrual Loans/Leases | 221 | 556 |
Loans and Leases Receivable, Net of Deferred Income | 102,471 | 109,352 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 26 | 33 |
Nonaccrual Loans/Leases | 221 | 556 |
Loans and Leases Receivable, Net of Deferred Income | $ 247 | $ 589 |
Percentage of Total NPLs | 1.32% | 6.61% |
NOTE 3 - LOANS_LEASES RECEIVA_8
NOTE 3 - LOANS/LEASES RECEIVABLE - Allowance for Estimated Losses on Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Balance | $ 60,827 | $ 41,104 | $ 36,001 | $ 39,847 | ||
Provisions charged to expense | 20,342 | 2,012 | 48,624 | 6,087 | ||
Reclassification of allowance for loans and leases relating to assets held for sale. | (6,122) | (6,122) | ||||
Loans/leases charged off | (1,819) | (741) | (5,604) | (3,953) | ||
Recoveries on loans/leases previously charged off | 232 | 291 | 561 | 685 | ||
Balance | 79,582 | 36,116 | 79,582 | 36,116 | ||
Allowance for impaired loans/leases | $ 3,306 | $ 660 | ||||
Allowance for nonimpaired loans/leases | 76,276 | 35,341 | ||||
Less allowance for estimated losses on loans/leases | 60,827 | 36,116 | 36,001 | 39,847 | 79,582 | 36,001 |
Impaired loans/leases | 18,604 | 8,661 | ||||
Nonimpaired loans/leases | 4,224,674 | 3,672,685 | ||||
Loans and leases | $ 4,243,278 | $ 3,681,346 | ||||
Allowance as a percentage of impaired loans/leases | 17.77% | 7.62% | ||||
Allowance as a percentage of nonimpaired loans/leases | 1.81% | 0.96% | ||||
Total allowance as a percentage of total loans/leases | 1.88% | 0.98% | ||||
Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provisions charged to expense | 1,584 | 5,659 | ||||
Assets Held For Sale [Member] | ||||||
Provisions charged to expense | 428 | |||||
Commercial Portfolio Segment [Member] | ||||||
Balance | 25,748 | 18,248 | 16,072 | 16,420 | ||
Provisions charged to expense | 9,008 | 20,564 | ||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (2,814) | (2,814) | ||||
Loans/leases charged off | (1,079) | (349) | (3,058) | (876) | ||
Recoveries on loans/leases previously charged off | 150 | 68 | 249 | 300 | ||
Balance | 33,827 | 16,151 | 33,827 | 16,151 | ||
Allowance for impaired loans/leases | $ 170 | |||||
Allowance for nonimpaired loans/leases | $ 33,827 | 15,902 | ||||
Less allowance for estimated losses on loans/leases | 33,827 | 16,151 | 16,072 | 16,420 | 33,827 | 16,072 |
Impaired loans/leases | 2,004 | 1,846 | ||||
Nonimpaired loans/leases | 1,821,045 | 1,505,979 | ||||
Loans and leases | $ 1,823,049 | $ 1,507,825 | ||||
Allowance as a percentage of impaired loans/leases | 9.21% | |||||
Allowance as a percentage of nonimpaired loans/leases | 1.86% | 1.06% | ||||
Total allowance as a percentage of total loans/leases | 1.86% | 1.07% | ||||
Commercial Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provisions charged to expense | 998 | 3,120 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Balance | 29,123 | 17,363 | 15,379 | 17,719 | ||
Provisions charged to expense | 10,428 | 24,609 | ||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (2,392) | (2,392) | ||||
Loans/leases charged off | (362) | (873) | (1,369) | |||
Recoveries on loans/leases previously charged off | 64 | 100 | 138 | 164 | ||
Balance | 39,253 | 15,291 | 39,253 | 15,291 | ||
Allowance for impaired loans/leases | $ 3,210 | $ 125 | ||||
Allowance for nonimpaired loans/leases | 36,043 | 15,254 | ||||
Less allowance for estimated losses on loans/leases | 39,253 | 15,291 | 15,379 | 17,719 | 39,253 | 15,379 |
Impaired loans/leases | 14,669 | 3,585 | ||||
Nonimpaired loans/leases | 1,985,046 | 1,732,811 | ||||
Loans and leases | $ 1,999,715 | $ 1,736,396 | ||||
Allowance as a percentage of impaired loans/leases | 21.88% | 3.49% | ||||
Allowance as a percentage of nonimpaired loans/leases | 1.82% | 0.88% | ||||
Total allowance as a percentage of total loans/leases | 1.96% | 0.89% | ||||
Commercial Real Estate Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provisions charged to expense | 220 | 1,168 | ||||
Finance Leases Portfolio Segment [Member] | ||||||
Balance | 1,639 | 1,459 | 1,464 | 1,792 | ||
Provisions charged to expense | 608 | 1,890 | ||||
Loans/leases charged off | (358) | (351) | (1,554) | (1,501) | ||
Recoveries on loans/leases previously charged off | 13 | 114 | 102 | 155 | ||
Balance | 1,902 | 1,302 | 1,902 | 1,302 | ||
Allowance for impaired loans/leases | $ 270 | |||||
Allowance for nonimpaired loans/leases | $ 1,902 | 1,194 | ||||
Less allowance for estimated losses on loans/leases | 1,639 | 1,302 | 1,464 | 1,792 | 1,902 | 1,464 |
Impaired loans/leases | 944 | 2,025 | ||||
Nonimpaired loans/leases | 72,067 | 85,844 | ||||
Loans and leases | $ 73,011 | $ 87,869 | ||||
Allowance as a percentage of impaired loans/leases | 13.33% | |||||
Allowance as a percentage of nonimpaired loans/leases | 2.64% | 1.39% | ||||
Total allowance as a percentage of total loans/leases | 2.61% | 1.67% | ||||
Finance Leases Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provisions charged to expense | 80 | 856 | ||||
Residential Portfolio Segment [Member] | ||||||
Balance | 3,010 | 2,582 | 1,948 | 2,557 | ||
Provisions charged to expense | 253 | 1,286 | ||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (628) | (628) | ||||
Loans/leases charged off | (37) | (109) | ||||
Recoveries on loans/leases previously charged off | 29 | 31 | ||||
Balance | 3,263 | 2,158 | 3,263 | 2,158 | ||
Allowance for impaired loans/leases | $ 21 | $ 15 | ||||
Allowance for nonimpaired loans/leases | 3,242 | 1,933 | ||||
Less allowance for estimated losses on loans/leases | 3,263 | 2,158 | 1,948 | 2,158 | 3,263 | 1,948 |
Impaired loans/leases | 766 | 649 | ||||
Nonimpaired loans/leases | 244,266 | 239,255 | ||||
Loans and leases | $ 245,032 | $ 239,904 | ||||
Allowance as a percentage of impaired loans/leases | 2.74% | 2.31% | ||||
Allowance as a percentage of nonimpaired loans/leases | 1.33% | 0.81% | ||||
Total allowance as a percentage of total loans/leases | 1.33% | 0.81% | ||||
Residential Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provisions charged to expense | 241 | 309 | ||||
Consumer Portfolio Segment [Member] | ||||||
Balance | 1,307 | 1,452 | 1,138 | 1,359 | ||
Provisions charged to expense | 45 | 275 | ||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (288) | (288) | ||||
Loans/leases charged off | (20) | (4) | (119) | (99) | ||
Recoveries on loans/leases previously charged off | 5 | 9 | 43 | 36 | ||
Balance | 1,337 | 1,214 | 1,337 | 1,214 | ||
Allowance for impaired loans/leases | $ 75 | $ 80 | ||||
Allowance for nonimpaired loans/leases | 1,262 | 1,058 | ||||
Less allowance for estimated losses on loans/leases | $ 1,337 | 1,214 | $ 1,138 | 1,359 | 1,337 | 1,138 |
Impaired loans/leases | 221 | 556 | ||||
Nonimpaired loans/leases | 102,250 | 108,796 | ||||
Loans and leases | $ 102,471 | $ 109,352 | ||||
Allowance as a percentage of impaired loans/leases | 33.94% | 14.41% | ||||
Allowance as a percentage of nonimpaired loans/leases | 1.23% | 0.97% | ||||
Total allowance as a percentage of total loans/leases | 1.30% | 1.04% | ||||
Consumer Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | ||||||
Provisions charged to expense | $ 45 | $ 206 |
NOTE 3 - LOANS_LEASES RECEIVA_9
NOTE 3 - LOANS/LEASES RECEIVABLE - Impaired Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Recorded investment with no specific allowance recorded | $ 5,224 | $ 5,224 | $ 4,912 | |
Unpaid principal balance with no specific allowance recorded | 5,575 | 5,575 | 5,115 | |
Average recorded investment with no specific allowance recorded | 4,396 | $ 4,656 | 3,225 | |
Interest income recognized with no specific allowance recorded | 24 | 19 | 73 | |
Interest income recognized for cash payments received with no specific allowance recorded | 24 | 19 | 73 | |
Recorded investment with specific allowance recorded | 13,380 | 13,380 | 3,749 | |
Unpaid principal balance with specific allowance recorded | 13,380 | 13,380 | 3,749 | |
Average recorded investment with specific allowance recorded | 10,094 | 4,112 | 7,517 | 660 |
Recorded investment | 18,604 | 18,604 | 8,661 | |
Unpaid principal balance | 18,955 | 18,955 | 8,864 | |
Related allowance | 3,306 | 3,306 | 660 | |
Average recorded investment | 14,490 | 8,768 | 10,742 | |
Interest income recognized | 24 | 19 | 73 | |
Interest income recognized for cash payments received | 24 | 19 | 73 | |
Owner Occupied Commercial Real Estate Loans [Member] | ||||
Recorded investment with no specific allowance recorded | 287 | 287 | 34 | |
Unpaid principal balance with no specific allowance recorded | 528 | 528 | 50 | |
Average recorded investment with no specific allowance recorded | 292 | 42 | 146 | |
Average recorded investment with specific allowance recorded | 123 | |||
Recorded investment | 287 | 287 | 34 | |
Unpaid principal balance | 528 | 528 | 50 | |
Average recorded investment | 292 | 165 | 146 | |
Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||||
Recorded investment with no specific allowance recorded | 1,336 | 1,336 | 684 | |
Unpaid principal balance with no specific allowance recorded | 1,336 | 1,336 | 686 | |
Average recorded investment with no specific allowance recorded | 668 | 739 | 334 | |
Interest income recognized with no specific allowance recorded | 7 | 7 | 22 | |
Interest income recognized for cash payments received with no specific allowance recorded | 7 | 7 | 22 | |
Recorded investment with specific allowance recorded | 13,046 | 13,046 | 2,867 | |
Unpaid principal balance with specific allowance recorded | 13,046 | 13,046 | 2,867 | |
Average recorded investment with specific allowance recorded | 9,757 | 3,254 | 7,228 | 125 |
Recorded investment | 14,382 | 14,382 | 3,551 | |
Unpaid principal balance | 14,382 | 14,382 | 3,553 | |
Related allowance | 3,210 | 3,210 | 125 | |
Average recorded investment | 10,425 | 3,993 | 7,562 | |
Interest income recognized | 7 | 7 | 22 | |
Interest income recognized for cash payments received | 7 | 7 | 22 | |
Commercial Portfolio Segment [Member] | ||||
Recorded investment with no specific allowance recorded | 2,004 | 2,004 | 1,607 | |
Unpaid principal balance with no specific allowance recorded | 2,114 | 2,114 | 1,647 | |
Average recorded investment with no specific allowance recorded | 1,825 | 1,433 | 1,418 | |
Interest income recognized with no specific allowance recorded | 11 | 6 | 35 | |
Interest income recognized for cash payments received with no specific allowance recorded | 11 | 6 | 35 | |
Recorded investment with specific allowance recorded | 239 | |||
Unpaid principal balance with specific allowance recorded | 239 | |||
Average recorded investment with specific allowance recorded | 141 | 170 | ||
Recorded investment | 2,004 | 2,004 | 1,846 | |
Unpaid principal balance | 2,114 | 2,114 | 1,886 | |
Related allowance | 170 | |||
Average recorded investment | 1,825 | 1,574 | 1,418 | |
Interest income recognized | 11 | 6 | 35 | |
Interest income recognized for cash payments received | 11 | 6 | 35 | |
Finance Leases Portfolio Segment [Member] | ||||
Recorded investment with no specific allowance recorded | 944 | 944 | 1,642 | |
Unpaid principal balance with no specific allowance recorded | 944 | 944 | 1,642 | |
Average recorded investment with no specific allowance recorded | 953 | 1,359 | 792 | |
Interest income recognized with no specific allowance recorded | 6 | 6 | 16 | |
Interest income recognized for cash payments received with no specific allowance recorded | 6 | 6 | 16 | |
Recorded investment with specific allowance recorded | 383 | |||
Unpaid principal balance with specific allowance recorded | 383 | |||
Average recorded investment with specific allowance recorded | 120 | 270 | ||
Recorded investment | 944 | 944 | 2,025 | |
Unpaid principal balance | 944 | 944 | 2,025 | |
Related allowance | 270 | |||
Average recorded investment | 953 | 1,479 | 792 | |
Interest income recognized | 6 | 6 | 16 | |
Interest income recognized for cash payments received | 6 | 6 | 16 | |
Residential Portfolio Segment [Member] | ||||
Recorded investment with no specific allowance recorded | 507 | 507 | 469 | |
Unpaid principal balance with no specific allowance recorded | 507 | 507 | 614 | |
Average recorded investment with no specific allowance recorded | 512 | 540 | 416 | |
Recorded investment with specific allowance recorded | 259 | 259 | 180 | |
Unpaid principal balance with specific allowance recorded | 259 | 259 | 180 | |
Average recorded investment with specific allowance recorded | 260 | 390 | 220 | 15 |
Recorded investment | 766 | 766 | 649 | |
Unpaid principal balance | 766 | 766 | 794 | |
Related allowance | 21 | 21 | 15 | |
Average recorded investment | 772 | 930 | 636 | |
Consumer Portfolio Segment [Member] | ||||
Recorded investment with no specific allowance recorded | 146 | 146 | 476 | |
Unpaid principal balance with no specific allowance recorded | 146 | 146 | 476 | |
Average recorded investment with no specific allowance recorded | 146 | 543 | 119 | |
Recorded investment with specific allowance recorded | 75 | 75 | 80 | |
Unpaid principal balance with specific allowance recorded | 75 | 75 | 80 | |
Average recorded investment with specific allowance recorded | 77 | 84 | 69 | 80 |
Recorded investment | 221 | 221 | 556 | |
Unpaid principal balance | 221 | 221 | 556 | |
Related allowance | 75 | 75 | $ 80 | |
Average recorded investment | $ 223 | $ 627 | $ 188 |
NOTE 3 - LOANS_LEASES RECEIV_10
NOTE 3 - LOANS/LEASES RECEIVABLE - Loans by Internally Assigned Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans and leases | $ 4,243,278 | $ 3,681,346 |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,823,049 | 1,507,825 |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | 1,660,962 | 1,365,847 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Loans and leases | 1,610,503 | 1,334,446 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Loans and leases | 25,547 | 12,962 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Loans and leases | 24,912 | 18,439 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and leases | 1,999,715 | 1,736,396 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 486,254 | 443,989 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and leases | 503,086 | 378,797 |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 1,010,375 | 913,610 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 486,254 | 443,989 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Construction Loans [Member] | ||
Loans and leases | 503,086 | 378,797 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 1,010,375 | 913,610 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 478,852 | 439,418 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Construction Loans [Member] | ||
Loans and leases | 491,928 | 378,572 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 929,398 | 896,206 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 2,211 | 3,044 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Construction Loans [Member] | ||
Loans and leases | 680 | 41 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 51,149 | 3,905 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 5,191 | 1,527 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Construction Loans [Member] | ||
Loans and leases | 10,478 | 184 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 29,828 | 13,499 |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | $ 3,660,677 | $ 3,102,243 |
As a % of Total | 100.00% | 100.00% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Pass [Member] | ||
Loans and leases | $ 3,510,681 | $ 3,048,642 |
As a % of Total | 95.91% | 98.27% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Special Mention [Member] | ||
Loans and leases | $ 79,587 | $ 19,952 |
As a % of Total | 2.17% | 0.65% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Substandard [Member] | ||
Loans and leases | $ 70,409 | $ 33,649 |
As a % of Total | 1.92% | 1.08% |
NOTE 3 - LOANS_LEASES RECEIV_11
NOTE 3 - LOANS/LEASES RECEIVABLE - Leases By Delinquency Status (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans and leases | $ 4,243,278 | $ 3,681,346 |
Nonperforming Financial Instruments [Member] | ||
Loans and leases | 18,744 | 8,914 |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,823,049 | 1,507,825 |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | 1,660,962 | 1,365,847 |
Commercial Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 162,087 | 141,978 |
Commercial Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 162,043 | 140,992 |
Commercial Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 44 | 986 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 5,809 | 1,882 |
Finance Leases Portfolio Segment [Member] | ||
Loans and leases | 73,011 | 87,869 |
Finance Leases Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 73,011 | 87,869 |
Finance Leases Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 72,129 | 86,019 |
Finance Leases Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 882 | 1,850 |
Finance Leases Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 882 | 1,850 |
Residential Portfolio Segment [Member] | ||
Loans and leases | 245,032 | 239,904 |
Residential Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 245,032 | 239,904 |
Residential Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 244,157 | 239,198 |
Residential Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 875 | 706 |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 874 | 706 |
Consumer Portfolio Segment [Member] | ||
Loans and leases | 102,471 | 109,352 |
Consumer Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 102,471 | 109,352 |
Consumer Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 102,224 | 108,763 |
Consumer Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 247 | 589 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 247 | 589 |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | $ 3,660,677 | $ 3,102,243 |
As a % of Total | 100.00% | 100.00% |
Lease Residential and Consumer Portfolio Segments [Member] | Delinquency Status [Member] | ||
Loans and leases | $ 582,601 | $ 579,103 |
As a % of Total | 100.00% | 100.00% |
Lease Residential and Consumer Portfolio Segments [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | $ 580,553 | $ 574,972 |
As a % of Total | 99.65% | 99.29% |
Lease Residential and Consumer Portfolio Segments [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | $ 2,048 | $ 4,131 |
As a % of Total | 0.35% | 0.71% |
NOTE 3 - LOANS_LEASES RECEIV_12
NOTE 3 - LOANS/LEASES RECEIVABLE - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)loan | |
Number of Loans / Leases | loan | 3 | 4 | 8 | 9 | |
Pre-Modification Recorded Investment | $ 197 | $ 172 | $ 453 | $ 881 | |
Post-Modification Recorded Investment | $ 197 | $ 55 | 172 | $ 453 | 831 |
Specific Allowance | $ 56 | $ 76 | |||
Payment Deferral [Member] | |||||
Number of Loans / Leases | loan | 3 | 3 | 8 | 7 | |
Pre-Modification Recorded Investment | $ 197 | $ 116 | $ 453 | $ 238 | |
Post-Modification Recorded Investment | $ 197 | $ 116 | $ 453 | 238 | |
Specific Allowance | $ 20 | ||||
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 | |||
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 | 3 | 6 | ||
Pre-Modification Recorded Investment | $ 116 | $ 145 | $ 219 | ||
Post-Modification Recorded Investment | $ 116 | $ 145 | 219 | ||
Specific Allowance | $ 20 | ||||
Commercial Portfolio Segment [Member] | |||||
Post-Modification Recorded Investment | $ 48 | ||||
Commercial Portfolio Segment [Member] | Payment Deferral [Member] | |||||
Number of Loans / Leases | loan | 3 | 5 | 1 | ||
Pre-Modification Recorded Investment | $ 197 | $ 308 | $ 19 | ||
Post-Modification Recorded Investment | $ 197 | $ 308 | $ 19 | ||
Commercial Portfolio Segment [Member] | Principal Forgiveness [Member] | |||||
Number of Loans / Leases | loan | 1 | ||||
Pre-Modification Recorded Investment | $ 587 | ||||
Post-Modification Recorded Investment | $ 537 | ||||
Installment And Other Consumer [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 4 - DERIVATIVES AND HEDG_3
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2020 | |
Deposits | $ 3,911,051 | $ 4,672,268 |
Cash Flow Hedging [Member] | ||
Deposits | 375,000 | |
Interest rate cap | Cash Flow Hedging [Member] | ||
Initial premium paid upfront for the two caps | $ 4,300 |
NOTE 4 - DERIVATIVES AND HEDG_4
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES - Summary of Interest Rate Swaps Derivatives (Details) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative Instrument One Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Derivative Instrument Two Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Derivative Instrument Three Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Derivative Instrument Four Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Derivative Instrument One Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Derivative Instrument Two Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Derivative Instrument Three Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Derivative Instrument Four Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Derivative Instrument One Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Derivative Instrument Two Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Derivative Instrument Three Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Derivative Instrument Four Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Interest rate swap | ||
Receive Rate | 1.34% | |
Pay Rate | 5.24% | |
CRBT - FHLB Advances or Brokered CDs [Member] | ||
Receive Rate | 0.23% | |
Pay Rate | 1.12% | |
SFCB - FHLB Advances or Brokered CDs [Member] | ||
Receive Rate | 0.24% | |
Pay Rate | 0.95% | |
QCR Holdings Statutory Trust II | ||
Receive Rate | 3.07% | |
Pay Rate | 5.85% | |
QCR Holdings Statutory Trust III | ||
Receive Rate | 3.07% | |
Pay Rate | 5.85% | |
QCR Holdings Statutory Trust V | ||
Receive Rate | 1.83% | |
Pay Rate | 4.54% | |
Community National Statutory Trust II | ||
Receive Rate | 2.40% | |
Pay Rate | 5.17% | |
Community National Statutory Trust III | ||
Receive Rate | 2.00% | |
Pay Rate | 4.75% | |
Guaranty Bankshares Statutory Trust I | ||
Receive Rate | 2.00% | |
Pay Rate | 4.75% | |
Other Assets | Derivative Instrument One Maturing 2023 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | 6 | $ 112 |
Other Assets | Derivative Instrument Two Maturing 2023 [Member] | ||
Notional Amount | 50,000 | |
Fair Value - Asset | 11 | 218 |
Other Assets | Derivative Instrument Three Maturing 2023 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | 5 | 96 |
Other Assets | Derivative Instrument Four Maturing 2023 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | 6 | 109 |
Other Assets | Derivative Instrument One Maturing 2024 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | 17 | 214 |
Other Assets | Derivative Instrument Two Maturing 2024 [Member] | ||
Notional Amount | 50,000 | |
Fair Value - Asset | 35 | 401 |
Other Assets | Derivative Instrument Three Maturing 2024 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | 17 | 202 |
Other Assets | Derivative Instrument Four Maturing 2024 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | 17 | 201 |
Other Assets | Derivative Instrument One Maturing 2025 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | 37 | 337 |
Other Assets | Derivative Instrument Two Maturing 2025 [Member] | ||
Notional Amount | 50,000 | |
Fair Value - Asset | 75 | 617 |
Other Assets | Derivative Instrument Three Maturing 2025 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | 40 | 332 |
Other Assets | Derivative Instrument Four Maturing 2025 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | 38 | 309 |
Other Assets | Interest rate swap | ||
Notional Amount | 375,000 | |
Fair Value - Asset | 304 | 3,148 |
Derivative Liabilities | Interest rate swap | ||
Notional Amount | 79,000 | |
Fair Value - Liability | (8,433) | (3,758) |
Derivative Liabilities | CRBT - FHLB Advances or Brokered CDs [Member] | ||
Notional Amount | 30,000 | |
Fair Value - Liability | (660) | |
Derivative Liabilities | SFCB - FHLB Advances or Brokered CDs [Member] | ||
Notional Amount | 10,000 | |
Fair Value - Liability | (181) | |
Derivative Liabilities | QCR Holdings Statutory Trust II | ||
Notional Amount | 10,000 | |
Fair Value - Liability | (1,963) | (971) |
Derivative Liabilities | QCR Holdings Statutory Trust III | ||
Notional Amount | 8,000 | |
Fair Value - Liability | (1,570) | (777) |
Derivative Liabilities | QCR Holdings Statutory Trust V | ||
Notional Amount | 10,000 | |
Fair Value - Liability | (1,909) | (944) |
Derivative Liabilities | Community National Statutory Trust II | ||
Notional Amount | 3,000 | |
Fair Value - Liability | (587) | (291) |
Derivative Liabilities | Community National Statutory Trust III | ||
Notional Amount | 3,500 | |
Fair Value - Liability | (684) | (339) |
Derivative Liabilities | Guaranty Bankshares Statutory Trust I | ||
Notional Amount | 4,500 | |
Fair Value - Liability | $ (879) | $ (436) |
NOTE 4 - DERIVATIVES AND HEDG_5
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES - Significantly Impact of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Derivative Assets | $ 236,381 | $ 236,381 | $ 87,827 | ||
Derivative Liabilities | 244,510 | 244,510 | 88,437 | ||
Fee Income On Derivative Contracts | 26,700 | $ 9,800 | 53,400 | $ 20,900 | |
Not Designated as Hedging Instrument [Member] | Interest rate swap | |||||
Derivative Asset, Notional Amount | 1,435,379 | 1,435,379 | 787,221 | ||
Derivative Assets | 236,077 | 236,077 | 84,679 | ||
Derivative Liability, Notional Amount | 1,435,379 | 1,435,379 | 787,221 | ||
Derivative Liabilities | $ 236,077 | $ 236,077 | $ 84,679 |
NOTE 4 - DERIVATIVES AND HEDG_6
NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES - Hedged Interest Rate Swaps and Non-hedged Interest Rate Swaps (Details) - Interest rate swap - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 241,384 | $ 109,647 |
Cash | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 81,373 | 10,990 |
U.S. govt. sponsored agency securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 3,650 | 3,541 |
Municipal securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 50,730 | 68,089 |
Residential mortgage-backed and related securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 105,631 | $ 27,027 |
NOTE 5 - SUBORDINATED NOTES (De
NOTE 5 - SUBORDINATED NOTES (Details) - USD ($) $ in Thousands | Sep. 14, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Subordinated Borrowing [Line Items] | ||||
Total Subordinated Debentures | $ 118,577 | $ 68,394 | ||
Proceeds from subordinated notes | $ 50,000 | 50,000 | $ 63,393 | |
Redemption price percentage | 100.00% | |||
Debt issuance costs | (1,423) | (1,606) | ||
Interest Rate Period One [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed rate | 5.125% | |||
Subordinated debenture dated 9/14/20 | ||||
Subordinated Borrowing [Line Items] | ||||
Total Subordinated Debentures | $ 50,000 | |||
Interest Rate | 5.125% | |||
Subordinated debenture dated 2/1/19 [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Total Subordinated Debentures | $ 65,000 | $ 65,000 | ||
Interest Rate | 5.375% | 5.375% | ||
Subordinated debenture dated 4/30/16 [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Total Subordinated Debentures | $ 2,000 | $ 2,000 | ||
Interest Rate | 4.00% | 4.00% | ||
Subordinated debenture dated 9/15/16 [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Total Subordinated Debentures | $ 3,000 | $ 3,000 | ||
Interest Rate | 4.00% | 4.00% | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Period Two [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | SOFR | |||
Basis points | 5.00% |
NOTE 6 - EARNINGS PER SHARE - B
NOTE 6 - EARNINGS PER SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
EARNINGS PER SHARE | ||||||||
Net income | $ 17,344 | $ 13,739 | $ 11,228 | $ 15,095 | $ 13,504 | $ 12,918 | $ 42,311 | $ 41,517 |
Basic EPS | $ 1.10 | $ 0.96 | $ 2.68 | $ 2.64 | ||||
Diluted EPS | $ 1.09 | $ 0.94 | $ 2.65 | $ 2.60 | ||||
Weighted average common shares outstanding (in shares) | 15,767,152 | 15,739,430 | 15,770,335 | 15,715,788 | ||||
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan (in shares) | 156,426 | 237,312 | 175,497 | 230,232 | ||||
Weighted average common and common equivalent shares outstanding (in shares) | 15,923,578 | 15,976,742 | 15,945,832 | 15,946,020 |
NOTE 7 - FAIR VALUE (Details)
NOTE 7 - FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities available for sale, at fair value | $ 347,196 | $ 210,695 |
Derivatives | 236,381 | 87,827 |
Assets Fair Value | 11,361 | 7,853 |
Derivatives | 244,510 | 88,437 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 11,361 | 7,853 |
Fair Value, Measurements, Recurring [Member] | ||
Derivatives | 236,381 | 87,827 |
Assets Fair Value | 583,577 | 298,522 |
Liabilities Fair Value | 244,510 | 88,437 |
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||
Derivatives | 244,510 | 88,437 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives | 236,381 | 87,827 |
Assets Fair Value | 583,577 | 298,522 |
Liabilities Fair Value | 244,510 | 88,437 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||
Derivatives | 244,510 | 88,437 |
U.S. govt. sponsored agency securities | ||
Securities available for sale, at fair value | 18,437 | 20,078 |
U.S. govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 18,437 | 20,078 |
U.S. govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 18,437 | 20,078 |
Residential mortgage-backed and related securities | ||
Securities available for sale, at fair value | 134,147 | 120,587 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 134,147 | 120,587 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 134,147 | 120,587 |
Asset-backed securities | ||
Securities available for sale, at fair value | 40,665 | 16,887 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 40,665 | 16,887 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 40,665 | 16,887 |
Municipal securities | ||
Securities available for sale, at fair value | 135,233 | 48,257 |
Municipal securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 135,233 | 48,257 |
Municipal securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 135,233 | 48,257 |
Other Securities | ||
Securities available for sale, at fair value | 18,714 | 4,886 |
Other Securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 18,714 | 4,886 |
Other Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 18,714 | 4,886 |
Impaired Loans Leases [Member] | ||
Assets Fair Value | 11,226 | 3,394 |
Impaired Loans Leases [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 11,226 | 3,394 |
Other Real Estate Owned [Member] | ||
Assets Fair Value | 135 | 4,459 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | $ 135 | $ 4,459 |
NOTE 7 - FAIR VALUE - Quantitat
NOTE 7 - FAIR VALUE - Quantitative Information About Level Fair Value Measurements (Details) $ in Thousands | Sep. 30, 2020USD ($)item | Dec. 31, 2019USD ($) |
Fair value | $ 11,361 | $ 7,853 |
Impaired Loans Leases [Member] | ||
Fair value | $ 11,226 | 3,394 |
Valuation technique | qcrh:ValuationTechniqueAppraisalOfCollateralMember | |
Unobservable input | us-gaap:MeasurementInputAppraisedValueMember | |
Impaired Loans Leases [Member] | Minimum | ||
Impaired loans/leases, measurement input | item | (10) | |
Impaired Loans Leases [Member] | Maximum | ||
Impaired loans/leases, measurement input | item | (30) | |
Other Real Estate Owned [Member] | ||
Fair value | $ 135 | 4,459 |
Valuation technique, OREO | qcrh:ValuationTechniqueAppraisalOfCollateralMember | |
Unobservable input, OREO | us-gaap:MeasurementInputAppraisedValueMember | |
Other Real Estate Owned [Member] | Minimum | ||
OREO, measurement input | item | 0 | |
Other Real Estate Owned [Member] | Maximum | ||
OREO, measurement input | item | (35) | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair value | $ 11,361 | 7,853 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans Leases [Member] | ||
Fair value | 11,226 | 3,394 |
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ||
Fair value | $ 135 | $ 4,459 |
NOTE 7 - FAIR VALUE - Carrying
NOTE 7 - FAIR VALUE - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 14, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Interest-bearing deposits at financial institutions | $ 302,138 | $ 147,891 | ||
Securities held to maturity, fair value | 460,199 | 426,545 | ||
Securities available for sale, at fair value | 347,196 | 210,695 | ||
Derivatives | 236,381 | 87,827 | ||
Subordinated notes | $ 50,000 | 50,000 | $ 63,393 | |
Interest rate swaps - liabilities | 244,510 | 88,437 | ||
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ||||
Cash and due from banks | 68,932 | 76,254 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Cash and due from banks | 68,932 | 76,254 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||||
Federal funds sold | 530 | 9,800 | ||
Securities held to maturity, fair value | 434,892 | 400,646 | ||
Securities available for sale, at fair value | 347,196 | 210,695 | ||
Loans/leases receivable, net | 4,158,001 | 3,651,061 | ||
Short-term borrowings | 30,430 | 13,423 | ||
FHLB advances | 40,000 | 159,300 | ||
Subordinated notes | 118,577 | 68,394 | ||
Junior subordinated debentures | 37,955 | 37,838 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Non-maturity Deposits [Member] | ||||
Deposits | 4,116,250 | 3,184,726 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Time Deposits [Member] | ||||
Deposits | 556,018 | 726,325 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Interest rate cap | ||||
Derivatives | 236,381 | 87,827 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Interest rate swap | ||||
Interest rate swaps - liabilities | 244,510 | 88,437 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Interest-bearing Deposits [Member] | ||||
Interest-bearing deposits at financial institutions | 302,138 | 147,891 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Federal funds sold | 530 | 9,800 | ||
Securities held to maturity, fair value | 460,199 | 426,545 | ||
Securities available for sale, at fair value | 347,196 | 210,695 | ||
Loans/leases receivable, net | 4,142,232 | 3,606,520 | ||
Short-term borrowings | 30,430 | 13,423 | ||
FHLB advances | 40,182 | 159,193 | ||
Subordinated notes | 118,724 | 68,563 | ||
Junior subordinated debentures | 30,487 | 30,477 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Non-maturity Deposits [Member] | ||||
Deposits | 4,116,250 | 3,184,726 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Time Deposits [Member] | ||||
Deposits | 562,068 | 742,444 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Interest rate cap | ||||
Derivatives | 236,381 | 87,827 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Interest rate swap | ||||
Interest rate swaps - liabilities | 244,510 | 88,437 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Interest-bearing Deposits [Member] | ||||
Interest-bearing deposits at financial institutions | 302,138 | 147,891 | ||
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ||||
Loans/leases receivable, net | 10,394 | 3,143 | ||
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Loans/leases receivable, net | 11,226 | 3,394 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Derivatives | 236,381 | 87,827 | ||
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||||
Interest rate swaps - liabilities | 244,510 | 88,437 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivatives | 236,381 | 87,827 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||||
Interest rate swaps - liabilities | $ 244,510 | $ 88,437 |
NOTE 8 - BUSINESS SEGMENT INF_3
NOTE 8 - BUSINESS SEGMENT INFORMATION - (Details) $ in Thousands | Sep. 30, 2020USD ($)subsidiary |
Number of subsidiaries commercial banks | 4 |
Commercial Banking | |
Number of subsidiaries commercial banks | 4 |
Wealth Management Segment [Member] | |
Assets allocated | $ | $ 0 |
NOTE 8 - BUSINESS SEGMENT INF_4
NOTE 8 - BUSINESS SEGMENT INFORMATION - Selected Financial Information on the Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Total revenue | $ 88,849 | $ 76,723 | $ 230,303 | $ 212,063 | |||||
Net interest income | 44,581 | 40,719 | 123,243 | 115,640 | |||||
Provision for loan/lease losses | 20,342 | 2,012 | 48,624 | 6,087 | |||||
Net income (loss) | 17,344 | $ 13,739 | $ 11,228 | 15,095 | $ 13,504 | $ 12,918 | 42,311 | 41,517 | |
Goodwill | 74,066 | 77,748 | 74,066 | 77,748 | $ 74,748 | ||||
Intangibles | 11,902 | 15,529 | 11,902 | 15,529 | 14,970 | ||||
Total assets | 5,864,560 | 5,292,382 | 5,864,560 | 5,292,382 | $ 4,909,050 | ||||
Intersegment Eliminations [Member] | |||||||||
Total revenue | (21,839) | (22,036) | (55,342) | (54,563) | |||||
Net interest income | 280 | 758 | |||||||
Net income (loss) | (21,483) | (19,280) | (54,157) | (50,897) | |||||
Total assets | (850,766) | (619,830) | (850,766) | (619,830) | |||||
Commercial Banking | QCBT | Operating Segments [Member] | |||||||||
Total revenue | 20,856 | 21,230 | 60,083 | 60,148 | |||||
Net interest income | 16,648 | 13,357 | 46,728 | 38,129 | |||||
Provision for loan/lease losses | 7,861 | 948 | 18,583 | 2,941 | |||||
Net income (loss) | 2,455 | 4,870 | 10,664 | 13,560 | |||||
Goodwill | 3,223 | 3,223 | 3,223 | 3,223 | |||||
Total assets | 2,205,934 | 1,642,950 | 2,205,934 | 1,642,950 | |||||
Commercial Banking | CRBT | Operating Segments [Member] | |||||||||
Total revenue | 43,331 | 25,707 | 99,938 | 68,526 | |||||
Net interest income | 14,432 | 11,478 | 38,638 | 32,671 | |||||
Provision for loan/lease losses | 8,878 | 150 | 18,288 | 875 | |||||
Net income (loss) | 13,221 | 7,900 | 30,178 | 19,928 | |||||
Goodwill | 14,980 | 14,980 | 14,980 | 14,980 | |||||
Intangibles | 2,313 | 2,810 | 2,313 | 2,810 | |||||
Total assets | 2,012,182 | 1,592,896 | 2,012,182 | 1,592,896 | |||||
Commercial Banking | CSB | Operating Segments [Member] | |||||||||
Total revenue | 11,033 | 11,596 | 30,836 | 30,596 | |||||
Net interest income | 8,593 | 8,894 | 23,631 | 23,154 | |||||
Provision for loan/lease losses | 2,493 | 150 | 7,268 | 451 | |||||
Net income (loss) | 1,867 | 3,482 | 3,496 | 7,845 | |||||
Goodwill | 9,888 | 9,888 | 9,888 | 9,888 | |||||
Intangibles | 3,474 | 4,154 | 3,474 | 4,154 | |||||
Total assets | 937,016 | 801,596 | 937,016 | 801,596 | |||||
Commercial Banking | SFCB | Operating Segments [Member] | |||||||||
Total revenue | 10,266 | 8,351 | 28,490 | 23,396 | |||||
Net interest income | 6,159 | 5,056 | 18,002 | 15,707 | |||||
Provision for loan/lease losses | 1,110 | 276 | 4,485 | 1,261 | |||||
Net income (loss) | 2,869 | 2,116 | 6,974 | 5,848 | |||||
Goodwill | 45,975 | 45,975 | 45,975 | 45,975 | |||||
Intangibles | 6,115 | 7,034 | 6,115 | 7,034 | |||||
Total assets | 803,478 | 693,898 | 803,478 | 693,898 | |||||
Wealth Management Segment [Member] | Operating Segments [Member] | |||||||||
Total revenue | 3,545 | 4,122 | 11,211 | 12,599 | |||||
Net income (loss) | 1,053 | 926 | 2,860 | 2,667 | |||||
Other Segments | Operating Segments [Member] | |||||||||
Total revenue | 21,657 | 27,753 | 55,087 | 71,361 | |||||
Net interest income | (1,531) | 1,934 | (4,514) | 5,979 | |||||
Provision for loan/lease losses | 488 | 559 | |||||||
Net income (loss) | 17,362 | 15,081 | 42,296 | 42,566 | |||||
Goodwill | 3,682 | 3,682 | |||||||
Intangibles | 1,531 | 1,531 | |||||||
Total assets | $ 756,716 | $ 1,180,872 | $ 756,716 | $ 1,180,872 |
NOTE 9 - REGULATORY CAPITAL R_3
NOTE 9 - REGULATORY CAPITAL REQUIREMENTS - Capital Requirements (Details) $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Total risk-based capital, actual, amount | $ 700,831 | $ 581,234 |
Total risk-based capital, actual, ratio | 0.1493 | 0.1333 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 375,643 | $ 348,937 |
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 | $ 493,031 | $ 457,980 |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | 0.10500 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 469,553 | $ 436,171 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 10 |
Tier 1 risk-based capital, actual, amount | $ 528,228 | $ 481,702 |
Tier 1 risk-based capital, actual, ratio | 0.1125 | 0.1104 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 281,732 | $ 261,703 |
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 | $ 399,120 | $ 370,746 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | 0.08500 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 375,643 | $ 348,937 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 8 |
Tier 1 leverage, actual, amount | $ 528,228 | $ 481,702 |
Tier 1 leverage, actual, ratio | 0.0921 | 0.0953 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 229,457 | $ 202,207 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 229,457 | $ 202,207 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.04000 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 286,822 | $ 252,758 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 5 |
Common equity Tier 1, actual, amount | $ 490,273 | $ 443,864 |
Common equity Tier 1, actual ratio | 0.1044 | 0.1018 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 211,299 | $ 196,277 |
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 | $ 328,687 | $ 305,320 |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.07% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 305,210 | $ 283,511 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
QCBT | ||
Total risk-based capital, actual, amount | $ 204,284 | $ 183,855 |
Total risk-based capital, actual, ratio | 0.1213 | 0.1183 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 134,760 | $ 124,362 |
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 | $ 176,872 | $ 163,225 |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | 0.10500 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 168,450 | $ 155,452 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 10 |
Tier 1 risk-based capital, actual, amount | $ 183,131 | $ 170,137 |
Tier 1 risk-based capital, actual, ratio | 0.1087 | 0.1094 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 101,070 | $ 93,271 |
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 | $ 143,182 | $ 132,134 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | 0.08500 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 134,760 | $ 124,362 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 8 |
Tier 1 leverage, actual, amount | $ 183,131 | $ 170,137 |
Tier 1 leverage, actual, ratio | 0.0785 | 0.0994 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 93,313 | $ 68,479 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 93,313 | $ 68,479 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.04000 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 116,642 | $ 85,598 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 5 |
Common equity Tier 1, actual, amount | $ 183,131 | $ 170,137 |
Common equity Tier 1, actual ratio | 0.1087 | 0.1094 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 75,802 | $ 69,953 |
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 | $ 117,915 | $ 108,817 |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.07% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 109,492 | $ 101,044 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
CRBT | ||
Total risk-based capital, actual, amount | $ 214,219 | $ 175,498 |
Total risk-based capital, actual, ratio | 0.1292 | 0.1190 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 132,656 | $ 117,953 |
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 | $ 174,112 | $ 154,813 |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | 0.10500 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 165,821 | $ 147,441 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 10 |
Tier 1 risk-based capital, actual, amount | $ 193,384 | $ 162,127 |
Tier 1 risk-based capital, actual, ratio | 0.1166 | 0.1100 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 99,492 | $ 88,465 |
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 | $ 140,948 | $ 125,325 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | 0.08500 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 132,656 | $ 117,953 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 8 |
Tier 1 leverage, actual, amount | $ 193,384 | $ 162,127 |
Tier 1 leverage, actual, ratio | 0.0972 | 0.1041 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 79,559 | $ 62,286 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 79,559 | $ 62,286 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.04000 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 99,449 | $ 77,857 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 5 |
Common equity Tier 1, actual, amount | $ 193,384 | $ 162,127 |
Common equity Tier 1, actual ratio | 0.1166 | 0.1100 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 74,619 | $ 66,349 |
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 | $ 116,074 | $ 103,209 |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.07% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 107,783 | $ 95,837 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
CSB | ||
Total risk-based capital, actual, amount | $ 99,123 | $ 92,095 |
Total risk-based capital, actual, ratio | 0.1274 | 0.1232 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 62,222 | $ 59,813 |
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 | $ 81,666 | $ 78,504 |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | 0.10500 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 77,777 | $ 74,766 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 10 |
Tier 1 risk-based capital, actual, amount | $ 89,359 | $ 85,437 |
Tier 1 risk-based capital, actual, ratio | 0.1149 | 0.1143 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 46,666 | $ 44,860 |
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 | $ 66,110 | $ 63,551 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | 0.08500 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 62,222 | $ 59,813 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 8 |
Tier 1 leverage, actual, amount | $ 89,359 | $ 85,437 |
Tier 1 leverage, actual, ratio | 0.0985 | 0.1039 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 36,273 | $ 32,902 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 36,273 | $ 32,902 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.04000 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 45,341 | $ 41,128 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 5 |
Common equity Tier 1, actual, amount | $ 89,359 | $ 85,437 |
Common equity Tier 1, actual ratio | 0.1149 | 0.1143 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 35,000 | $ 33,645 |
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 | $ 54,444 | $ 52,336 |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.07% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 50,555 | $ 48,598 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
SFCB | ||
Total risk-based capital, actual, amount | $ 83,283 | $ 71,074 |
Total risk-based capital, actual, ratio | 0.1368 | 0.1272 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 48,718 | $ 44,704 |
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 | $ 63,943 | $ 58,674 |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | 0.10500 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 60,898 | $ 55,880 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 10 |
Tier 1 risk-based capital, actual, amount | $ 71,617 | $ 63,956 |
Tier 1 risk-based capital, actual, ratio | 0.1176 | 0.1145 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 36,539 | $ 33,528 |
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 | $ 51,763 | $ 47,498 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | 0.08500 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 48,718 | $ 44,704 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 8 |
Tier 1 leverage, actual, amount | $ 71,617 | $ 63,956 |
Tier 1 leverage, actual, ratio | 0.1027 | 0.0970 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 27,903 | $ 26,379 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 27,903 | $ 26,379 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.04000 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 34,879 | $ 32,974 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 5 |
Common equity Tier 1, actual, amount | $ 71,617 | $ 63,956 |
Common equity Tier 1, actual ratio | 0.1176 | 0.1145 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 27,404 | $ 25,146 |
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 | $ 42,629 | $ 39,116 |
Common equity Tier 1 for capital adequacy purposes, ratio | 0.07% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 39,584 | $ 36,322 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
NOTE 10 - SALE OF SUBSIDIARY (D
NOTE 10 - SALE OF SUBSIDIARY (Details) - USD ($) $ in Thousands | Aug. 12, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Disposition costs | $ 192 | $ 626 | ||
Consideration received | 1,328 | 1,328 | ||
ASSETS | ||||
Total assets sold | $ 11,966 | |||
LIABILITIES | ||||
Total liabilities sold | $ 5,003 | |||
Loss on sale of subsidiary | (305) | (305) | ||
Bates Companies [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Business Acquisition [Line Items] | ||||
Disposition costs | $ 192 | |||
Consideration received | 500 | 448 | 448 | |
Consideration received, imputed interest | 52 | |||
ASSETS | ||||
Cash and due from banks | 349 | 349 | 349 | |
Premises and equipment, net | 19 | 19 | 19 | |
Other assets | 2,211 | 2,211 | 2,211 | |
Total assets sold | 2,579 | 2,579 | 2,579 | |
LIABILITIES | ||||
Other liabilities | 946 | 946 | 946 | |
Total liabilities sold | 946 | 946 | 946 | |
Net assets sold | 1,633 | |||
Forgiveness of earn-out consideration | 880 | 880 | ||
Note receivable consideration | 448 | |||
Loss on sale of subsidiary | $ 305 | (305) | ||
Earnout Agreement Cancellation [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration received | $ 880 | $ 880 |