Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FARMERS & MERCHANTS BANCORP | |
Entity Central Index Key | 1,085,913 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 821,073 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Cash and Cash Equivalents: | |||
Cash and Due from Banks | $ 37,974 | $ 65,956 | $ 42,164 |
Interest Bearing Deposits with Banks | 97,010 | 121,193 | 122,348 |
Total Cash and Cash Equivalents | 134,984 | 187,149 | 164,512 |
Investment Securities: | |||
Available-for-Sale | 495,814 | 481,596 | 452,842 |
Held-to-Maturity | 53,527 | 54,460 | 57,281 |
Total Investment Securities | 549,341 | 536,056 | 510,123 |
Loans & Leases: | 2,235,083 | 2,215,295 | 2,146,032 |
Less: Allowance for Credit Losses | 50,677 | 50,342 | 48,400 |
Loans & Leases, Net | 2,184,406 | 2,164,953 | 2,097,632 |
Premises and Equipment, Net | 28,491 | 28,679 | 28,781 |
Bank Owned Life Insurance | 60,035 | 59,583 | 58,216 |
Interest Receivable and Other Assets | 102,726 | 99,032 | 93,745 |
Total Assets | 3,059,983 | 3,075,452 | 2,953,009 |
Deposits: | |||
Demand | 797,435 | 832,652 | 709,908 |
Interest Bearing Transaction | 589,883 | 601,476 | 503,678 |
Savings and Money Market | 831,324 | 813,703 | 804,383 |
Time | 482,763 | 475,397 | 589,644 |
Total Deposits | 2,701,405 | 2,723,228 | 2,607,613 |
Subordinated Debentures | 10,310 | 10,310 | 10,310 |
Interest Payable and Other Liabilities | 42,392 | 42,254 | 46,539 |
Total Liabilities | 2,754,107 | 2,775,792 | 2,664,462 |
Shareholders' Equity | |||
Preferred Stock: No Par Value, 1,000,000 Shares Authorized, None Issued or Outstanding | 0 | 0 | 0 |
Common Stock: Par Value $0.01, 7,500,000 Shares Authorized, 812,304, 812,304 and 818,704 Shares Issued and Outstanding at March 31, 2018, December 31, 2017 and March 31, 2017, Respectively | 8 | 8 | 8 |
Additional Paid-In Capital | 93,624 | 93,624 | 91,482 |
Retained Earnings | 216,786 | 206,845 | 197,134 |
Accumulated Other Comprehensive Loss | (4,542) | (817) | (77) |
Total Shareholders' Equity | 305,876 | 299,660 | 288,547 |
Total Liabilities and Shareholders' Equity | $ 3,059,983 | $ 3,075,452 | $ 2,953,009 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Shareholders' Equity | |||
Preferred Stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 7,500,000 | 7,500,000 | 7,500,000 |
Common Stock, shares issued (in shares) | 812,304 | 812,304 | 818,704 |
Common Stock, shares outstanding (in shares) | 812,304 | 812,304 | 818,704 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Income | ||
Interest and Fees on Loans & Leases | $ 27,044 | $ 24,531 |
Interest on Deposits with Banks | 585 | 249 |
Interest on Investment Securities: | ||
Taxable | 2,381 | 2,012 |
Exempt from Federal Tax | 418 | 450 |
Total Interest Income | 30,428 | 27,242 |
Interest Expense | ||
Deposits | 1,405 | 1,276 |
Subordinated Debentures | 117 | 100 |
Total Interest Expense | 1,522 | 1,376 |
Net Interest Income | 28,906 | 25,866 |
Provision for Credit Losses | 333 | 600 |
Net Interest Income After Provision for Credit Losses | 28,573 | 25,266 |
Non-Interest Income | ||
Service Charges on Deposit Accounts | 817 | 846 |
Increase in Cash Surrender Value of Life Insurance | 452 | 455 |
Debit Card and ATM Fees | 1,016 | 910 |
Net Gain on Deferred Compensation Investments | 782 | 794 |
Other | 1,598 | 2,401 |
Total Non-Interest Income | 4,665 | 5,406 |
Non-Interest Expense | ||
Salaries and Employee Benefits | 13,527 | 12,492 |
Net Gain on Deferred Compensation Investments | 782 | 794 |
Occupancy | 942 | 848 |
Equipment | 1,023 | 987 |
Marketing | 329 | 175 |
Legal | 440 | 183 |
FDIC Insurance | 239 | 228 |
Gain on Sale of ORE | 0 | (114) |
Other | 2,654 | 2,829 |
Total Non-Interest Expense | 19,936 | 18,422 |
Income Before Income Taxes | 13,302 | 12,250 |
Provision for Income Taxes | 3,361 | 4,429 |
Net Income | $ 9,941 | $ 7,821 |
Basic Earnings Per Common Share (in dollars per share) | $ 12.24 | $ 9.68 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||
Net Income | $ 9,941 | $ 7,821 |
Other Comprehensive Income | ||
Increase in Net Unrealized Loss on Available-for-Sale Securities | (5,288) | (114) |
Deferred Tax Benefit Related to Unrealized Losses | 1,563 | 48 |
Change in Net Unrealized Loss on Available-for-Sale Securities, Net of Tax | (3,725) | (66) |
Total Other Comprehensive Loss | (3,725) | (66) |
Comprehensive Income | $ 6,216 | $ 7,755 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss, Net [Member] | Total |
Balance at Dec. 31, 2016 | $ 8 | $ 90,671 | $ 189,313 | $ (11) | $ 279,981 |
Balance (in shares) at Dec. 31, 2016 | 807,329 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 0 | 7,821 | 0 | 7,821 | |
Issuance of Common Stock | $ 0 | 811 | 0 | 0 | 811 |
Issuance of Common Stock (in shares) | 1,375 | ||||
Change in Net Unrealized Loss on Securities Available-for-Sale, net of tax | $ 0 | 0 | 0 | (66) | (66) |
Balance at Mar. 31, 2017 | $ 8 | 91,482 | 197,134 | (77) | $ 288,547 |
Balance (in shares) at Mar. 31, 2017 | 808,704 | 818,704 | |||
Balance at Dec. 31, 2017 | $ 8 | 93,624 | 206,845 | (817) | $ 299,660 |
Balance (in shares) at Dec. 31, 2017 | 812,304 | 812,304 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 0 | 9,941 | 0 | $ 9,941 | |
Change in Net Unrealized Loss on Securities Available-for-Sale, net of tax | $ 0 | 0 | 0 | (3,725) | (3,725) |
Balance at Mar. 31, 2018 | $ 8 | $ 93,624 | $ 216,786 | $ (4,542) | $ 305,876 |
Balance (in shares) at Mar. 31, 2018 | 812,304 | 812,304 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | ||
Net Income | $ 9,941 | $ 7,821 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Credit Losses | 333 | 600 |
Depreciation and Amortization | 582 | 494 |
Net Amortization of Investment Security Premiums & Discounts | 277 | 402 |
Amortization of Core Deposit Intangible | 27 | 27 |
Accretion of Discount on Acquired Loans | (18) | (66) |
Net (Gain) on Sale of Property & Equipment | (292) | (1,108) |
Net Gain on Sale of ORE | 0 | (114) |
Net Change in Operating Assets & Liabilities: | ||
Net Decrease in Interest Receivable and Other Assets | (2,525) | 5,378 |
Net Increase in Interest Payable and Other Liabilities | 682 | (3,452) |
Net Cash Provided by Operating Activities | 9,007 | 9,982 |
Investing Activities: | ||
Purchase of Investment Securities Available-for-Sale | (109,482) | (79,007) |
Proceeds from Sold, Matured or Called Securities Available-for-Sale | 89,724 | 73,905 |
Purchase of Investment Securities Held-to-Maturity | (1,952) | (210) |
Proceeds from Matured or Called Securities Held-to-Maturity | 2,870 | 1,023 |
Net Loans & Leases Paid, Originated or Acquired | (19,791) | 31,484 |
Principal Collected on Loans & Leases Previously Charged Off | 23 | 32 |
Additions to Premises and Equipment | (1,085) | (1,157) |
Purchase of Other Investments | (639) | (128) |
Proceeds from Sale of Property & Equipment | 983 | 2,219 |
Proceeds from Sale of Other Real Estate | 0 | 1,607 |
Net Cash (Used in) Provided by Investing Activities | (39,349) | 29,768 |
Financing Activities: | ||
Net (Decrease) Increase in Deposits | (21,823) | 25,902 |
Net Cash (Used in) Provided by Financing Activities | (21,823) | 25,902 |
(Decrease) Increase in Cash and Cash Equivalents | (52,165) | 65,652 |
Cash and Cash Equivalents at Beginning of Period | 187,149 | 98,860 |
Cash and Cash Equivalents at End of Period | 134,984 | 164,512 |
Supplementary Data | ||
Issuance of Common Stock to the Bank's Non-Qualified Retirement Plans | 0 | 811 |
Interest Paid | $ 1,750 | $ 1,346 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Farmers & Merchants Bancorp (the “Company”) was organized March 10, 1999. Primary operations are related to traditional banking activities through its subsidiary Farmers & Merchants Bank of Central California (the “Bank”) which was established in 1916. The Bank’s wholly owned subsidiaries include Farmers & Merchants Investment Corporation and Farmers/Merchants Corp. Farmers & Merchants Investment Corporation has been dormant since 1991. Farmers/Merchants Corp. acts as trustee on deeds of trust originated by the Bank. The Company’s other subsidiaries include F & M Bancorp, Inc. and FMCB Statutory Trust I. F & M Bancorp, Inc. was created in March 2002 to protect the name F & M Bank. During 2002, the Company completed a fictitious name filing in California to begin using the streamlined name “F & M Bank” as part of a larger effort to enhance the Company’s image and build brand name recognition. In December 2003, the Company formed a wholly owned subsidiary, FMCB Statutory Trust I, for the sole purpose of issuing Trust Preferred Securities and related subordinated debentures, in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). FMCB Statutory Trust I is a non-consolidated subsidiary. On November 18, 2016, Farmers & Merchants Bancorp completed the acquisition of Delta National Bancorp, headquartered in Manteca, California, and the parent holding company for Delta Bank N.A., a locally owned and operated community bank established in 1973. As of the acquisition date, Delta National Bancorp had approximately $112 million in assets and four branch locations in the communities of Manteca, Riverbank, Modesto and Turlock. At the effective time of the acquisition, Delta National Bancorp was merged into Farmers & Merchants Bancorp and Delta Bank, N.A. was merged into Farmers & Merchants Bank of Central California. The accounting and reporting policies of the Company conform to U.S. GAAP and prevailing practice within the banking industry. The following is a summary of the significant accounting and reporting policies used in preparing the consolidated financial statements. Basis of Presentation The accompanying consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America for financial information. These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting on Form 10-Q. These statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the three-month period ended March 31, 2018 may not necessarily be indicative of future operating results. Certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The accompanying consolidated financial statements include the accounts of the Company and the Company’s wholly owned subsidiaries, F & M Bancorp, Inc. and the Bank, along with the Bank’s wholly owned subsidiaries, Farmers & Merchants Investment Corporation and Farmers/Merchants Corp. Significant inter-company transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Certain amounts in the prior years' financial statements and related footnote disclosures have been reclassified to conform to the current-year presentation. These reclassifications had no effect on previously reported net income or total shareholders’ equity. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company elected to use the modified retrospective transition method which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption however, periods prior to the date of adoption will not be retrospectively revised as the impact of the ASU on uncompleted contracts at the date of adoption was not material. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is limited judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, the Company has defined cash and cash equivalents as those amounts included in the balance sheet captions Cash and Due from Banks, Interest Bearing Deposits with Banks, Federal Funds Sold and Securities Purchased Under Agreements to Resell. For these instruments, the carrying amount is a reasonable estimate of fair value. Equity Method Investment Investment over which the Company exercises significant influence over the activities of the entity but which do not meet the requirements for consolidation is accounted for using the equity method of accounting pursuant to ASC 323, whereby the Company records its share of the underlying income or loss of the entity. Equity in losses of the equity method investment is not recognized after the carrying value of the investment, including advances and loans, has been reduced to zero, unless guarantees or other funding obligations exist. Investment Securities Investment securities are classified at the time of purchase as held-to-maturity (“HTM”) if it is management’s intent and the Company has the ability to hold the securities until maturity. These securities are carried at cost, adjusted for amortization of premium and accretion of discount using a level yield of interest over the estimated remaining period until maturity. Losses, reflecting a decline in value judged by the Company to be other than temporary, are recognized in the period in which they occur. Securities are classified as available-for-sale (“AFS”) if it is management’s intent, at the time of purchase, to hold the securities for an indefinite period of time and/or to use the securities as part of the Company’s asset/liability management strategy. These securities are reported at fair value with aggregate unrealized gains or losses excluded from income and included as a separate component of shareholders’ equity, net of related income taxes. Fair values are based on quoted market prices or broker/dealer price quotations on a specific identification basis. Gains or losses on the sale of these securities are computed using the specific identification method. Trading securities, if any, are acquired for short-term appreciation and are recorded in a trading portfolio and are carried at fair value, with unrealized gains and losses recorded in non-interest income. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement; and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. Loans & Leases Loans & leases are reported at the principal amount outstanding net of unearned discounts and deferred loan & lease fees and costs. Interest income on loans & leases is accrued daily on the outstanding balances using the simple interest method. Loan & lease origination fees are deferred and recognized over the contractual life of the loan or lease as an adjustment to the yield. Loans & leases are placed on non-accrual status when the collection of principal or interest is in doubt or when they become past due for 90 days or more unless they are both well-secured and in the process of collection. For this purpose, a loan or lease is considered well-secured if it is collateralized by property having a net realizable value in excess of the amount of the loan or lease or is guaranteed by a financially capable party. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and charged against current income; thereafter, interest income is recognized only as it is collected in cash. Additionally, cash would be applied to principal if all principal was not expected to be collected. Loans & leases placed on non-accrual status are returned to accrual status when the loans or leases are paid current as to principal and interest and future payments are expected to be made in accordance with the contractual terms of the loan or lease. A loan or lease is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Impaired loans & leases are either: (1) non-accrual loans & leases; or (2) restructured loans & leases that are still accruing interest. Loans or leases determined to be impaired are individually evaluated for impairment. When a loan or lease is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan or lease's effective interest rate, except that as a practical expedient, it may measure impairment based on a loan or lease's observable market price, or the fair value of the collateral if the loan or lease is collateral dependent. A loan or lease is collateral dependent if the repayment of the loan or lease is expected to be provided solely by the underlying collateral. A restructuring of a loan or lease constitutes a troubled debt restructuring (TDR) if the Company for economic or legal reasons related to the borrower’s (the term “borrower” is used herein to describe a customer who has entered into either a loan or lease transaction) financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans & leases typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. If the restructured loan or lease was current on all payments at the time of restructure and management reasonably expects the borrower will continue to perform after the restructure, management may keep the loan or lease on accrual. Loans & leases that are on nonaccrual status at the time they become TDR, remain on nonaccrual status until the borrower demonstrates a sustained period of performance, which the Company generally believes to be six consecutive months of payments, or equivalent. A loan or lease can be removed from TDR status if it was restructured at a market rate in a prior calendar year and is currently in compliance with its modified terms. However, these loans or leases continue to be classified as impaired and are individually evaluated for impairment as described above. Generally, the Company will not restructure loans or leases for borrowers unless: (1) the existing loan or lease is brought current as to principal and interest payments; and (2) the restructured loan or lease can be underwritten to reasonable underwriting standards. If these standards are not met other actions will be pursued (e.g., foreclosure) to collect outstanding loan or lease amounts. After restructure, a determination is made whether the loan or lease will be kept on accrual status based upon the underwriting and historical performance of the restructured credit. Allowance for Credit Losses The allowance for credit losses is an estimate of probable incurred credit losses inherent in the Company's loan & lease portfolio as of the balance sheet date. The allowance is established through a provision for credit losses, which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan & lease growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of three primary components: specific reserves related to impaired loans & leases; general reserves for inherent losses related to loans & leases that are not impaired; and an unallocated component that takes into account the imprecision in estimating and allocating allowance balances associated with macro factors. The determination of the general reserve for loans & leases that are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, qualitative factors that include economic trends in the Company's service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company's underwriting policies, the character of the loan & lease portfolio, and probable losses inherent in the portfolio taken as a whole. The Company maintains a separate allowance for each portfolio segment (loan & lease type). These portfolio segments include: (1) commercial real estate; (2) agricultural real estate; (3) real estate construction (including land and development loans); (4) residential 1 st The Company assigns a risk rating to all loans & leases and periodically performs detailed reviews of all such loans & leases over a certain threshold to identify credit risks and assess overall collectability. For smaller balance loans & leases, such as consumer and residential real estate, a credit grade is established at inception, and then updated only when the loan or lease becomes contractually delinquent or when the borrower requests a modification. For larger balance loans, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans & leases. These credit quality indicators are used to assign a risk rating to each individual loan or lease. These risk ratings are also subject to examination by independent specialists engaged by the Company. The risk ratings can be grouped into five major categories, defined as follows: Pass – A pass loan or lease is a strong credit with no existing or known potential weaknesses deserving of management's close attention. Special Mention – A special mention loan or lease has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company's credit position at some future date. Special mention loans & leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard – A substandard loan or lease is not adequately protected by the current financial condition and paying capacity of the borrower or the value of the collateral pledged, if any. Loans or leases classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well-defined weaknesses include a project's lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project's failure to fulfill economic expectations. Doubtful – Loss – Loans or leases classified as loss are considered uncollectible. Once a loan or lease becomes delinquent and repayment becomes questionable, the Company will address collateral shortfalls with the borrower and attempt to obtain additional collateral. If this is not forthcoming and payment in full is unlikely, the Company will estimate its probable loss and immediately charge-off some or all of the balance. The general reserve component of the allowance for credit losses also consists of reserve factors that are based on management's assessment of the following for each portfolio segment: (1) inherent credit risk; (2) historical losses; and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below: Commercial Real Estate – Commercial real estate mortgage loans are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations. Real Estate Construction – Real estate construction loans, including land loans, are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. A major risk arises from the necessity to complete projects within specified cost and time lines. Trends in the construction industry significantly impact the credit quality of these loans, as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects. Commercial – These loans are generally considered to possess a moderate inherent risk of loss because they are shorter-term; typically made to relationship customers; generally underwritten to existing cash flows of operating businesses; and may be collateralized by fixed assets, inventory and/or accounts receivable. Debt coverage is provided by business cash flows and economic trends influenced by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Agricultural Real Estate and Agricultural – These loans are generally considered to possess a moderate inherent risk of loss since they are typically made to relationship customers and are secured by crop production, livestock and related real estate. These loans are vulnerable to two risk factors that are largely outside the control of Company and borrowers: commodity prices and weather conditions. Leases – Equipment leases are generally considered to possess a moderate inherent risk of loss. As lessor, the Company is subject to both the credit risk of the borrower and the residual value risk of the equipment. Credit risks are underwritten using the same credit criteria the Company would use when making an equipment term loan. Residual value risk is managed through the use of qualified, independent appraisers that establish the residual values the Company uses in structuring a lease. Residential 1st Mortgages and Home Equity Lines and Loans – These loans are generally considered to possess a low inherent risk of loss, although this is not always true as evidenced by the correction in residential real estate values that occurred between 2007 and 2012. The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower's ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers' capacity to repay their obligations may be deteriorating. Consumer & Other – A consumer installment loan portfolio is usually comprised of a large number of small loans scheduled to be amortized over a specific period. Most installment loans are made for consumer purchases. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers' capacity to repay their obligations may be deteriorating. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company's and Bank's regulators, including the Federal Reserve Board (“FRB”), the California Department of Business Oversight (“DBO”) and the Federal Deposit Insurance Corporation (“FDIC”), as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations. Acquired Loans Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit discounts, which reflect estimates of credit losses, expected to be incurred over the life of the loan, are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates anticipated losses using historical data and utilization assumptions. The allowance for off-balance-sheet commitments is included in Interest Payable and Other Liabilities on the Company’s Consolidated Balance Sheet. Premises and Equipment Premises, equipment, and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Estimated useful lives of buildings range from 30 to 40 years, and for furniture and equipment from 3 to 7 years. Leasehold improvements are amortized over the lesser of the terms of the respective leases, or their useful lives, which are generally 5 to 10 years. Remodeling and capital improvements are capitalized while maintenance and repairs are charged directly to occupancy expense. Other Real Estate Other real estate, which is included in other assets, is expected to be sold and is comprised of properties no longer utilized for business operations and property acquired through foreclosure in satisfaction of indebtedness. These properties are recorded at fair value less estimated selling costs upon acquisition. Revised estimates to the fair value less cost to sell are reported as adjustments to the carrying amount of the asset, provided that such adjusted value is not in excess of the carrying amount at acquisition. Initial losses on properties acquired through full or partial satisfaction of debt are treated as credit losses and charged to the allowance for credit losses at the time of acquisition. Subsequent declines in value from the recorded amounts, routine holding costs, and gains or losses upon disposition, if any, are included in non-interest expense as incurred. Income Taxes The Company uses the liability method of accounting for income taxes. This method results in the recognition of deferred tax assets and liabilities that are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The deferred provision for income taxes is the result of the net change in the deferred tax asset and deferred tax liability balances during the year. This amount combined with the current taxes payable or refundable results in the income tax expense for the current year. The Company follows the standards set forth in the “Income Taxes” topic of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company accounts for leases with Investment Tax Credits (ITC) under the deferred method as established in ASC 740-10. ITC are viewed and accounted for as a reduction of the cost of the related assets and presented as deferred income on the Company’s financial statement. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest expense and penalties associated with unrecognized tax benefits, if any, are included in the provision for income taxes in the Consolidated Statements of Income. Basic Earnings Per Common Share The Company’s common stock is not traded on any exchange. The shares are primarily held by local residents and are not actively traded. Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. There are no common stock equivalent shares. Therefore, there is no presentation of diluted basic earnings per common share. See Note 6 for additional information. Segment Reporting The “Segment Reporting” topic of the FASB ASC requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a community bank, which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized around discernible lines of business and prefers to work as an integrated unit to customize solutions for its customers, with business line emphasis and product offerings changing over time as needs and demands change. Therefore, the Company only reports one segment. Low Income Housing Tax Credit Investments (LIHTC) The Company accounts for its interest in LIHTC using the cost method as established in ASC 323-740. As an investor, the Company obtains income tax credits and deductions from the operating losses of these tax credit entities. The income tax credits and deductions are allocated to the investors based on their ownership percentages and are recorded as a reduction of income tax expense (or an increase to income tax benefit) and a reduction of federal income taxes payable. Comprehensive Income The “Comprehensive Income” topic of the FASB ASC establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Other comprehensive income (loss) refers to revenues, expenses, gains, and losses that U.S. GAAP recognize as changes in value to an enterprise but are excluded from net income. For the Company, comprehensive income includes net income and changes in fair value of its available-for-sale investment securities. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. Business Combinations And Related Matters Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the fair value over the purchase price of net assets and other identifiable intangible assets acquired is recorded as bargain purchase gain. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value, if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of operations from the date of acquisition. Acquisition-related costs, including conversion charges, are expensed as incurred. The Company applied this guidance to the acquisition of Delta National Bancorp that was consummated on November 18, 2016. Intangible Asset |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investment Securities [Abstract] | |
Investment Securities | 2. Investment Securities The amortized cost, fair values, and unrealized gains and losses of the securities available-for-sale ( in thousands): Amortized Gross Unrealized Fair/Book March 31, 2018 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,068 $ 27 $ - $ 3,095 US Treasury Notes 144,147 3 741 143,409 US Govt SBA 27,786 12 261 27,537 Mortgage Backed Securities (1) 324,251 393 5,881 318,763 Other 3,010 - - 3,010 Total $ 502,262 $ 435 $ 6,883 $ 495,814 Amortized Gross Unrealized Fair/Book December 31, 2017 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,080 $ 48 $ - $ 3,128 US Treasury Notes 144,606 - 442 144,164 US Govt SBA 29,559 29 208 29,380 Mortgage Backed Securities (1) 302,502 939 1,527 301,914 Other 3,010 - - 3,010 Total $ 482,757 $ 1,016 $ 2,177 $ 481,596 Amortized Gross Unrealized Fair/Book March 31, 2017 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,115 $ 102 $ - $ 3,217 US Treasury Notes 104,717 2 300 104,419 US Govt SBA 34,947 34 247 34,734 Mortgage Backed Securities (1) 309,187 1,820 1,545 309,462 Other 1,010 - - 1,010 Total $ 452,976 $ 1,958 $ 2,092 $ 452,842 (1) The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity (in thousands): Book Gross Unrealized Fair March 31, 2018 Value Gains Losses Value Obligations of States and Political Subdivisions $ 53,527 $ 274 $ 56 $ 53,745 Total $ 53,527 $ 274 $ 56 $ 53,745 Book Gross Unrealized Fair December 31, 2017 Value Gains Losses Value Obligations of States and Political Subdivisions $ 54,460 $ 776 $ - $ 55,236 Total $ 54,460 $ 776 $ - $ 55,236 Book Gross Unrealized Fair March 31, 2017 Value Gains Losses Value Obligations of States and Political Subdivisions $ 57,281 $ 414 $ 22 $ 57,673 Total $ 57,281 $ 414 $ 22 $ 57,673 Fair values are based on quoted market prices or dealer quotes. If a quoted market price or dealer quote is not available, fair value is estimated using quoted market prices for similar securities. The amortized cost and estimated fair values of investment securities at March 31, 2018 by contractual maturity are shown in the following table (in thousands): Available-for-Sale Held-to-Maturity March 31, 2018 Amortized Cost Fair/Book Value Book Value Fair Value Within one year $ 123,199 $ 122,897 $ 2,907 $ 2,915 After one year through five years 14,798 14,762 6,711 6,714 After five years through ten years 17,877 17,482 17,707 17,795 After ten years 22,137 21,910 26,202 26,321 178,011 177,051 53,527 53,745 Investment securities not due at a single maturity date: Mortgage-backed securities 324,251 318,763 - - Total $ 502,262 $ 495,814 $ 53,527 $ 53,745 Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The following tables show those investments with gross unrealized losses and their market value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at the dates indicated (in thousands) Less Than 12 Months 12 Months or More Total March 31, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 23,551 $ 436 $ 59,866 $ 305 $ 83,417 $ 741 US Govt SBA 10,848 82 11,737 179 22,585 261 Mortgage Backed Securities 259,314 4,606 41,230 1,275 300,544 5,881 Total $ 293,713 $ 5,124 $ 112,833 $ 1,759 $ 406,546 $ 6,883 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 7,654 $ 56 $ - $ - $ 7,654 $ 56 Total $ 7,654 $ 56 $ - $ - $ 7,654 $ 56 Less Than 12 Months 12 Months or More Total December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 94,281 $ 144 $ 49,883 $ 298 $ 144,164 $ 442 US Govt SBA 8,379 51 12,900 157 21,279 208 Mortgage Backed Securities 126,863 932 43,208 595 170,071 1,527 Total $ 229,523 $ 1,127 $ 105,991 $ 1,050 $ 335,514 $ 2,177 There were no HTM investments with gross unrealized losses at December 31, 2017 Less Than 12 Months 12 Months or More Total March 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 69,433 $ 300 $ - $ - $ 69,433 $ 300 US Govt SBA 26,412 247 - - 26,412 247 Mortgage Backed Securities 168,546 1,545 - - 168,546 1,545 Total $ 264,391 $ 2,092 $ - $ - $ 264,391 $ 2,092 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 4,278 $ 22 $ - $ - $ 4,278 $ 22 Total $ 4,278 $ 22 $ - $ - $ 4,278 $ 22 As of March 31, 2018, the Company held 491 investment securities of which 164 were in an unrealized loss position for less than twelve months. 95 securities were in an unrealized position for twelve months or more. Management periodically evaluates each investment security for other-than-temporary impairment relying primarily on industry analyst reports and observations of market conditions and interest rate fluctuations. Management believes it will be able to collect all amounts due according to the contractual terms of the underlying investment securities. Securities of Government Agency and Government Sponsored Entities – At March 31, 2018, no securities of government agency and government sponsored entities were in an unrealized loss position for less than 12 months. No securities were in an unrealized loss position for 12 months or more. The unrealized losses on the Company's investments in securities of government agency and government sponsored entities were $0 at March 31, 2018, December 31, 2017 and at March 31, 2017. U.S. Treasury Notes – At March 31, 2018, four U.S. Treasury Note security investments were in an unrealized loss position for less than 12 months and four were in an unrealized loss position for 12 months or more. The unrealized losses on the Company's investment in U.S. Treasury Notes were $741,000 at March 31, 2018 and $442,000 at December 31, 2017, and $300,000 at March 31, 2017. The unrealized losses were caused by interest rate fluctuations. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the securities and it is more likely than not that the Company will not have to sell the securities before recovery of their cost basis, the Company did not consider these investments to be other-than-temporarily impaired at March 31, 2018, December 31, 2017, and March 31, 2017. U.S. Government SBA – At March 31, 2018, 66 U.S. Government SBA security investments were in an unrealized loss position for less than 12 months and 66 were in an unrealized loss position for 12 months or more. The unrealized losses on the Company's investment in U.S. Government SBA securities were $261,000 at March 31, 2018 and $208,000 at December 31, 2017, and $247,000 at March 31, 2017. The unrealized losses were caused by interest rate fluctuations. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the securities and it is more likely than not that the Company will not have to sell the securities before recovery of their cost basis, the Company did not consider these investments to be other-than-temporarily impaired at March 31, 2018, December 31, 2017, and March 31, 2017. Mortgage Backed Securities – At March 31, 2018, 75 mortgage backed security investments were in an unrealized loss position for less than 12 months and 25 were in an unrealized loss position for 12 months or more. The unrealized losses on the Company's investment in mortgage backed securities were $5.9 million, $1.5 million, and $1.5 million at March 31, 2018, December 31, 2017, and March 31, 2017, respectively. The unrealized losses on the Company’s investment in mortgage backed securities were caused by interest rate fluctuations. The contractual cash flows of these investments are guaranteed by an agency or government sponsored entity of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company's investment. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the securities and it is more likely than not that the Company will not have to sell the securities before recovery of their cost basis, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2018, December 31, 2017, and March 31, 2017. Obligations of States and Political Subdivisions - At March 31, 2018, 19 obligations of states and political subdivisions were in an unrealized loss position for less than 12 months. None were in an unrealized loss position for 12 months or more. As of March 31, 2018, over ninety-eight percent of the Company’s bank-qualified municipal bond portfolio is rated at either the issue or issuer level, and all of these ratings are “investment grade.” The Company monitors the status of the two percent of the portfolio that is not rated and at the current time does not believe any of them to be exhibiting financial problems that could result in a loss in any individual security. The unrealized losses on the Company’s investment in obligations of states and political subdivisions were $56,000, $0 and $22,000 at March 31, 2018, December 31, 2017 and March 31, 2017, respectively. Management believes that any unrealized losses on the Company's investments in obligations of states and political subdivisions were primarily caused by interest rate fluctuations. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company does not intend to sell the securities and it is more likely than not that the Company will not have to sell the securities before recovery of their cost basis, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2018, December 31, 2017, and March 31, 2017. There were no proceeds from sales and calls of securities for the period ending March 31, 2018 and March 31, 2017. Pledged Securities As of March 31, 2018, securities carried at $245.4 million were pledged to secure public deposits, Federal Home Loan Bank (“FHLB”) borrowings, and other government agency deposits as required by law. This amount was $214.5 million at December 31, 2017, and $203.8 million at March 31, 2017. |
Loans & Leases and Allowance fo
Loans & Leases and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2018 | |
Loans & Leases and Allowance for Credit Losses [Abstract] | |
Loans & Leases and Allowance for Credit Losses | 3. Loans & Leases and Allowance for Credit Losses The following tables show the allocation of the allowance for credit losses by portfolio segment and by impairment methodology at the dates indicated (in thousands) March 31, 2018 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2018 $ 10,922 $ 12,085 $ 1,846 $ 815 $ 2,324 $ 8,159 $ 9,197 $ 209 $ 3,363 $ 1,422 $ 50,342 Charge-Offs - - - - (4 ) - - (17 ) - - (21 ) Recoveries - - - 3 1 6 2 11 - - 23 Provision 156 157 27 9 22 (297 ) 175 36 27 21 333 Ending Balance- March 31, 2018 $ 11,078 $ 12,242 $ 1,873 $ 827 $ 2,343 $ 7,868 $ 9,374 $ 239 $ 3,390 $ 1,443 $ 50,677 Ending Balance Individually Evaluated for Impairment 335 - - 76 17 - 205 8 - - 641 Ending Balance Collectively Evaluated for Impairment 10,743 12,242 1,873 751 2,326 7,868 9,169 231 3,390 1,443 50,036 Loans: Ending Balance $ 698,349 $ 508,400 $ 96,315 $ 264,137 $ 34,691 $ 261,427 $ 274,682 $ 6,685 $ 90,397 $ - $ 2,235,083 Ending Balance Individually Evaluated for Impairment 4,784 - - 2,427 332 - 1,713 9 - - 9,265 Ending Balance Collectively Evaluated for Impairment $ 693,565 $ 508,400 $ 96,315 $ 261,710 $ 34,359 $ 261,427 $ 272,969 $ 6,676 $ 90,397 $ - $ 2,225,818 December 31, 2017 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2017 $ 11,110 $ 9,450 $ 3,223 $ 865 $ 2,140 $ 7,381 $ 8,515 $ 200 $ 3,586 $ 1,449 $ 47,919 Charge-Offs (109 ) - - (53 ) (3 ) (374 ) - (146 ) - - (685 ) Recoveries 109 - - 40 8 17 8 76 - - 258 Provision (188 ) 2,635 (1,377 ) (37 ) 179 1,135 674 79 (223 ) (27 ) 2,850 Ending Balance- December 31, 2017 $ 10,922 $ 12,085 $ 1,846 $ 815 $ 2,324 $ 8,159 $ 9,197 $ 209 $ 3,363 $ 1,422 $ 50,342 Ending Balance Individually Evaluated for Impairment 366 - - 73 17 - 220 8 - - 684 Ending Balance Collectively Evaluated for Impairment 10,556 12,085 1,846 742 2,307 8,159 8,977 201 3,363 1,422 49,658 Loans & Leases: Ending Balance $ 684,961 $ 499,231 $ 100,206 $ 260,751 $ 34,525 $ 273,582 $ 265,703 $ 6,656 $ 89,680 $ - $ 2,215,295 Ending Balance Individually Evaluated for Impairment 4,822 - - 2,373 340 - 1,734 10 - - 9,279 Ending Balance Collectively Evaluated for Impairment 680,139 499,231 100,206 258,378 34,185 273,582 263,969 6,646 89,680 - 2,206,016 March 31, 2017 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2017 $ 11,110 $ 9,450 $ 3,223 $ 865 $ 2,140 $ 7,381 $ 8,515 $ 200 $ 3,586 $ 1,449 $ 47,919 Charge-Offs (109 ) - - - - (7 ) - (35 ) - - (151 ) Recoveries 7 - - 3 2 - 4 16 - - 32 Provision 657 (57 ) (277 ) 12 (17 ) (863 ) (40 ) 17 280 888 600 Ending Balance- March 31, 2017 $ 11,665 $ 9,393 $ 2,946 $ 880 $ 2,125 $ 6,511 $ 8,479 $ 198 $ 3,866 $ 2,337 $ 48,400 Ending Balance Individually Evaluated for Impairment 471 - - 69 17 331 268 6 - - 1,162 Ending Balance Collectively Evaluated for Impairment 11,194 9,393 2,946 811 2,108 6,180 8,211 192 3,866 2,337 47,238 Loans: Ending Balance $ 676,527 $ 463,645 $ 164,791 $ 249,628 $ 31,817 $ 266,010 $ 209,184 $ 7,119 $ 77,311 $ - $ 2,146,032 Ending Balance Individually Evaluated for Impairment 4,924 975 - 2,069 451 698 1,633 9 - - 10,759 Ending Balance Collectively Evaluated for Impairment $ 671,603 $ 462,670 $ 164,791 $ 247,559 $ 31,366 $ 265,312 $ 207,551 $ 7,110 $ 77,311 $ - $ 2,135,273 The ending balance of loans individually evaluated for impairment includes restructured loans in the amount of $2.9 million at March 31, 2018, $3.0 million at December 31, 2017 and $3.4 million at March 31, 2017, which are no longer classified as TDRs. The following tables show the loan & lease portfolio allocated by management’s internal risk ratings at the dates indicated (in thousands) March 31, 2018 Pass Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 691,537 $ 6,812 $ - $ 698,349 Agricultural Real Estate 495,936 8,537 3,927 508,400 Real Estate Construction 86,779 9,536 - 96,315 Residential 1st Mortgages 263,101 - 1,036 264,137 Home Equity Lines & Loans 34,643 - 48 34,691 Agricultural 252,553 6,286 2,588 261,427 Commercial 268,745 5,460 477 274,682 Consumer & Other 6,565 - 120 6,685 Leases 88,320 2,077 - 90,397 Total $ 2,188,179 $ 38,708 $ 8,196 $ 2,235,083 December 31, 2017 Pass Special Mention Substandard Total Loans Loans & Leases: Commercial Real Estate $ 677,636 $ 6,843 $ 482 $ 684,961 Agricultural Real Estate 488,672 6,529 4,030 499,231 Real Estate Construction 90,728 9,478 - 100,206 Residential 1st Mortgages 259,795 41 915 260,751 Home Equity Lines and Loans 34,476 - 49 34,525 Agricultural 264,425 6,439 2,718 273,582 Commercial 260,565 4,610 528 265,703 Consumer & Other 6,498 - 158 6,656 Leases 87,497 2,183 - 89,680 Total $ 2,170,292 $ 36,123 $ 8,880 $ 2,215,295 March 31, 2017 Pass Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 668,243 $ 6,768 $ 1,516 $ 676,527 Agricultural Real Estate 461,318 1,351 976 463,645 Real Estate Construction 156,426 8,365 - 164,791 Residential 1st Mortgages 249,238 45 345 249,628 Home Equity Lines & Loans 31,752 - 65 31,817 Agricultural 255,390 9,857 763 266,010 Commercial 204,792 3,638 754 209,184 Consumer & Other 6,965 - 154 7,119 Leases 74,817 2,494 - 77,311 Total $ 2,108,941 $ 32,518 $ 4,573 $ 2,146,032 See “Note 1. Significant Accounting Policies - Allowance for Credit Losses” for a description of the internal risk ratings used by the Company. There were no loans or leases outstanding at March 31, 2018, December 31, 2017, and March 31, 2017, rated doubtful or loss. The following tables show an aging analysis of the loan & lease portfolio by the time past due at the dates indicated (in thousands) March 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 698,349 $ 698,349 Agricultural Real Estate - - - - - 508,400 508,400 Real Estate Construction - - - - - 96,315 96,315 Residential 1st Mortgages 14 49 - 81 144 263,993 264,137 Home Equity Lines & Loans 20 - - - 20 34,671 34,691 Agricultural - - - - - 261,427 261,427 Commercial - 14 - - 14 274,668 274,682 Consumer & Other 8 - - - 8 6,677 6,685 Leases - - - - - 90,397 90,397 Total $ 42 $ 63 $ - $ 81 $ 186 $ 2,234,897 $ 2,235,083 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 684,961 $ 684,961 Agricultural Real Estate - - - - - 499,231 499,231 Real Estate Construction - - - - - 100,206 100,206 Residential 1st Mortgages 448 - - - 448 260,303 260,751 Home Equity Lines and Loans 10 - - - 10 34,515 34,525 Agricultural - - - - - 273,582 273,582 Commercial 180 - - - 180 265,523 265,703 Consumer & Other 7 - - - 7 6,649 6,656 Leases - - - - - 89,680 89,680 Total $ 645 $ - $ - $ - $ 645 $ 2,214,650 $ 2,215,295 March 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 676,527 $ 676,527 Agricultural Real Estate - - - 976 976 462,669 463,645 Real Estate Construction - - - - - 164,791 164,791 Residential 1st Mortgages 110 - - 60 170 249,458 249,628 Home Equity Lines & Loans - - - 64 64 31,753 31,817 Agricultural - - - 315 315 265,695 266,010 Commercial - - - - - 209,184 209,184 Consumer & Other 16 - - 6 22 7,097 7,119 Leases - - - - - 77,311 77,311 Total $ 126 $ - $ - $ 1,421 $ 1,547 $ 2,144,485 $ 2,146,032 The following tables show information related to impaired loans & leases for the periods indicated (in thousands) March 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 102 $ 102 $ - $ 103 $ 2 Residential 1st Mortgages 903 1,005 - 907 8 $ 1,005 $ 1,107 $ - $ 1,010 $ 10 With an allowance recorded: Commercial Real Estate $ 2,955 $ 2,943 $ 335 $ 2,964 $ 24 Residential 1st Mortgages 583 649 29 546 7 Home Equity Lines & Loans 78 88 4 76 1 Commercial 1,720 1,713 205 1,731 15 Consumer & Other 8 8 8 8 - $ 5,344 $ 5,401 $ 581 $ 5,325 $ 47 Total $ 6,349 $ 6,508 $ 581 $ 6,335 $ 57 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 104 $ 104 $ - $ 107 $ 11 Agricultural Real Estate - - - 488 - Residential 1st Mortgages 911 1,012 - 532 11 Home Equity Lines and Loans - - - 16 - Agricultural - - - 30 - $ 1,015 $ 1,116 $ - $ 1,173 $ 22 With an allowance recorded: Commercial Real Estate $ 2,973 $ 2,961 $ 366 $ 2,999 $ 104 Residential 1st Mortgages 508 571 25 469 16 Home Equity Lines and Loans 73 89 4 74 3 Agricultural - - - 409 21 Commercial 1,741 1,734 220 1,693 59 Consumer & Other 8 9 8 11 - $ 5,303 $ 5,364 $ 623 $ 5,655 $ 203 Total $ 6,318 $ 6,480 $ 623 $ 6,828 $ 225 March 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 110 $ 110 $ - $ 147 $ 4 Agricultural Real Estate 976 983 - 1,141 - Residential 1st Mortgages 413 467 - 432 - Home Equity Lines & Loans 64 65 - 32 - Agricultural 60 66 - 30 - Commercial - - - 1,512 - $ 1,623 $ 1,691 $ - $ 3,294 $ 4 With an allowance recorded: Commercial Real Estate $ 3,024 $ 3,010 $ 471 $ 1,512 $ 30 Residential 1st Mortgages 426 466 20 428 5 Home Equity Lines & Loans 89 95 4 90 1 Agricultural 638 639 331 632 8 Commercial 1,641 1,633 268 1,541 16 Consumer & Other 6 12 6 6 - $ 5,824 $ 5,855 $ 1,100 $ 4,209 $ 60 Total $ 7,447 $ 7,546 $ 1,100 $ 7,503 $ 64 Total recorded investment shown in the prior table will not equal the total ending balance of loans & leases individually evaluated for impairment on the allocation of allowance table. This is because this table does not include impaired loans that were previously modified in a troubled debt restructuring, are currently performing and are no longer disclosed or classified as TDR’s. At March 31, 2018, the Company allocated $577,000 of specific reserves to $6.2 million of troubled debt restructured loans & leases, all of which were performing. The Company had no commitments at March 31, 2018 to lend additional amounts to customers with outstanding loans or leases that are classified as TDRs. During the three-month period ending March 31, 2018, there were no loans & leases modified as a troubled debt restructuring. During the three months ended March 31, 2018, the twelve months ended December 31, 2017, and the three months ended March 31, 2017, there were no payment defaults on loans or leases modified as troubled debt restructurings within twelve months following the modification. The Company considers a loan or lease to be in payment default once it is greater than 90 days contractually past due under the modified terms. At December 31, 2017, the Company allocated $623,000 of specific reserves to $6.3 million of troubled debt restructured loans, all of which were performing. The Company had no commitments at December 31, 2017 lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings. During the period ending December 31, 2017, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan ranged from 3 to 5 years. Modifications involving an extension of the maturity date ranged from 3 to 10 years. The following table presents loans by class modified as troubled debt restructured loans for the period ended December 31, 2017 (in thousands) December 31, 2017 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 2 $ 673 $ 630 Home Equity Lines and Loans 1 32 32 Commercial 2 138 138 Consumer & Other 1 9 8 Total 6 $ 852 $ 808 The troubled debt restructurings described above had no impact on the allowance for credit losses and resulted in charge-offs of $44,000 for the twelve months ended December 31, 2017. At March 31, 2017, the Company allocated $844,000 of specific reserves to $6.0 million of troubled debt restructured loans & leases, all of which were performing. The Company had no commitments at March 31, 2017 to lend additional amounts to customers with outstanding loans or leases that are classified as TDRs. During the three-month period ending March 31, 2017, there were no loans & leases modified as a troubled debt restructuring. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company follows the “Fair Value Measurement and Disclosures” topic of the FASB ASC, which establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. This standard applies whenever other standards require, or permit, assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. In this standard, the FASB clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability. In support of this principle, this standard establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy is as follows: Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Management monitors the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities or total earnings. Securities classified as available-for-sale are reported at fair value on a recurring basis utilizing Level 1, 2 and 3 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things. The Company does not record all loans & leases at fair value on a recurring basis. However, from time to time, a loan or lease is considered impaired and an allowance for credit losses is established. Once a loan or lease is identified as individually impaired, management measures impairment in accordance with the “Receivable” topic of the FASB ASC. The fair value of impaired loans or leases is estimated using one of several methods, including collateral value when the loan is collateral dependent, market value of similar debt, enterprise value, and discounted cash flows. Impaired loans & leases not requiring an allowance represent loans & leases for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans & leases. Impaired loans & leases where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Other Real Estate (“ORE”) is reported at fair value on a non-recurring basis. At March 31, 2018, there were no formal foreclosure proceedings in process for consumer mortgage loans secured by residential real estate properties. The following tables present information about the Company’s assets measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Fair Value Measurements At March 31, 2018, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,095 $ - $ 3,095 $ - US Treasury Notes 143,409 143,409 - - US Govt SBA 27,537 - 27,537 - Mortgage Backed Securities 318,763 - 318,763 - Other 3,010 200 310 2,500 Total Assets Measured at Fair Value On a Recurring Basis $ 495,814 $ 143,609 $ 349,705 $ 2,500 Fair Value Measurements At December 31, 2017, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,128 $ - $ 3,128 $ - US Treasury Notes 144,164 144,164 - - US Govt SBA 29,380 - 29,380 - Mortgage Backed Securities 301,914 - 301,914 - Other 3,010 200 310 2,500 Total Assets Measured at Fair Value On a Recurring Basis $ 481,596 $ 144,364 $ 334,732 $ 2,500 Fair Value Measurements At March 31, 2017, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,217 $ - $ 3,217 $ - US Treasury Notes 104,419 104,419 - - US Govt SBA 34,734 - 34,734 - Mortgage Backed Securities 309,462 - 309,462 - Other 1,010 200 310 500 Total Assets Measured at Fair Value On a Recurring Basis $ 452,842 $ 104,619 $ 347,723 $ 500 Fair values for Level 2 available-for-sale investment securities are based on quoted market prices for similar securities. During the period ended March 31, 2018, there were no transfers in or out of level 1, 2, or 3. The available for sale investment security categorized as a Level 3 asset for period ended March 31, 2018 consisted of one $2.5 million investment in a limited liability company that purchases SBA loans. The Company increased this investment by $2.0 million during 2017. This security is not actively traded and is owned by a few investors for CRA purposes. The significant unobservable data reflected in the fair value measurement include dealer quotes, projected prepayment speeds/average lives and credit information, among other things. There were no gains or losses or transfers in or out of level 3 during the period ended March 31, 2018. The following tables present information about the Company’s other real estate and impaired loans or leases, classes of assets or liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans or leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment of a specific reserve. Fair Value Measurements At March 31, 2018, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans Commercial Real Estate $ 2,608 $ - $ - $ 2,608 Residential 1st Mortgage 475 - - 475 Home Equity Lines and Loans 74 - - 74 Commercial 1,508 - - 1,508 Total Impaired Loans 4,665 - - 4,665 Other Real Estate Real Estate Construction 873 - - 873 Total Other Real Estate 873 - - 873 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 5,538 $ - $ - $ 5,538 Fair Value Measurements At December 31, 2017, Using Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Impaired Loans: Commercial Real Estate $ 2,595 $ - $ - $ 2,595 Residential 1st Mortgage 997 - - 997 Home Equity Lines and Loans 75 - - 75 Commercial 1,514 - - 1,514 Total Impaired Loans 5,181 - - 5,181 Other Real Estate: Real Estate Construction 873 - - 873 Total Other Real Estate 873 - - 873 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 6,054 $ - $ - $ 6,054 Fair Value Measurements At March 31, 2017, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans Commercial Real Estate $ 2,539 $ - $ - $ 2,539 Residential 1st Mortgage 389 - - 389 Home Equity Lines and Loans 82 - - 82 Agricultural 367 - - 367 Commercial 1,365 - - 1,365 Total Impaired Loans 4,742 - - 4,742 Other Real Estate Home Equity Lines and Loans 685 - - 685 Real Estate Construction 1,467 - - 1,467 Total Other Real Estate 2,152 - - 2,152 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 6,894 $ - $ - $ 6,894 The Company’s property appraisals are primarily based on the sales comparison approach and the income approach methodologies, which consider recent sales of comparable properties, including their income generating characteristics, and then make adjustments to reflect the general assumptions that a market participant would make when analyzing the property for purchase. These adjustments may increase or decrease an appraised value and can vary significantly depending on the location, physical characteristics and income producing potential of each property. Additionally, the quality and volume of market information available at the time of the appraisal can vary from period to period and cause significant changes to the nature and magnitude of comparable sale adjustments. Given these variations, comparable sale adjustments are generally not a reliable indicator for how fair value will increase or decrease from period to period. Under certain circumstances, management discounts are applied based on specific characteristics of an individual property. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at March 31, 2018: (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans Commercial Real Estate $ 2,608 Income Approach Capitalization Rate 3.25%, 3.25% Residential 1st Mortgage $ 475 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% -4%, 3% Home Equity Lines and Loans $ 74 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% - 2%, 1% Commercial $ 1,508 Income Approach Capitalization Rate 2.95% - 8.70%, 3.40% Other Real Estate Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10% |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments U.S. GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practical to estimate that value. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, will likely reduce the comparability of fair value disclosures between financial institutions. In some cases, book value is a reasonable estimate of fair value due to the relatively short period of time between origination of the instrument and its expected realization. The valuation of loans held for investment was impacted by the adoption of ASU 2016-01. In accordance with ASU 2016-01, the fair value of loans held for investment, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans. Loans are considered a Level 3 classification. The following tables summarize the book value and estimated fair value of financial instruments for the periods indicated: Fair Value of Financial Instruments Using March 31, 2018 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 134,984 $ 134,984 $ - $ - $ 134,984 Investment Securities Available-for-Sale 495,814 143,609 349,705 2,500 495,814 Investment Securities Held-to-Maturity 53,527 - 37,028 16,717 53,745 FHLB Stock 10,342 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,184,406 - - 2,152,504 2,152,504 Accrued Interest Receivable 9,237 - 9,237 - 9,237 Liabilities: Deposits 2,701,405 2,218,642 478,846 - 2,697,488 Subordinated Debentures 10,310 - 7,751 - 7,751 Accrued Interest Payable 909 - 909 - 909 Fair Value of Financial Instruments Using December 31, 2017 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 187,149 $ 187,149 $ - $ - $ 187,149 Investment Securities Available-for-Sale 481,596 29,580 449,516 2,500 481,596 Investment Securities Held-to-Maturity 54,460 - 38,492 16,744 55,236 FHLB Stock 10,342 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,164,953 - - 2,137,987 2,137,987 Accrued Interest Receivable 10,999 - 10,999 - 10,999 Liabilities: Deposits 2,723,228 2,247,831 472,671 - 2,720,502 Subordinated Debentures 10,310 - 7,428 - 7,428 Accrued Interest Payable 1,137 - 1,137 - 1,137 Fair Value of Financial Instruments Using March 31, 2017 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 164,512 $ 164,512 $ - $ - $ 164,512 Investment Securities Available-for-Sale 452,842 104,619 347,723 500 452,842 Investment Securities Held-to-Maturity 57,281 - 39,991 17,682 57,673 FHLB Stock 8,872 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,097,632 - - 2,076,248 2,076,248 Accrued Interest Receivable 7,962 - 7,962 - 7,962 Liabilities: Deposits 2,607,613 2,017,969 587,811 - 2,605,780 Subordinated Debentures 10,310 - 6,581 - 6,581 Accrued Interest Payable 882 - 882 - 882 |
Dividends and Basic Earnings Pe
Dividends and Basic Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Dividends and Basic Earnings Per Common Share [Abstract] | |
Dividends and Basic Earnings Per Common Share | 6. Dividends and Basic Earnings Per Common Share Farmers & Merchants Bancorp common stock is not traded on any exchange. The shares are primarily held by local residents and are not actively traded. No cash dividends were declared during the first quarter of 2018 or 2017. Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. The Company has no securities or other contracts, such as stock options, that could require the issuance of common stock. Accordingly, diluted earnings per share are not presented. The following table calculates the basic earnings per common share for the three months ended March 31, 2018 and 2017. (net income in thousands) 2018 2017 Net Income $ 9,941 $ 7821 Weighted Average Number of Common Shares Outstanding 812 ,304 807,986 Basic Earnings Per Common Share Amount $ 12.24 $ 9.68 |
Pending Acquisition of Bank of
Pending Acquisition of Bank of Rio Vista | 3 Months Ended |
Mar. 31, 2018 | |
Pending Acquisition of Bank of Rio Vista [Abstract] | |
Pending Acquisition of Bank of Rio Vista | 7. Pending Acquisition of Bank of Rio Vista On March 26, 2018, Farmers & Merchants Bancorp and Bank of Rio Vista announced that a definitive agreement had been signed by both parties for the acquisition of Bank of Rio Vista by Farmers & Merchants Bancorp. The transaction is subject to customary closing conditions, including regulatory approvals and Bank of Rio Vista’s shareholder approval. The Boards of Directors of both Farmers & Merchants Bancorp and Bank of Rio Vista have unanimously approved the transaction, which is expected to close in the third quarter of 2018. In this transaction, the shareholders of Bank of Rio Vista owning 2,414 shares, or 60.35% of the outstanding common shares, will receive $28.7 million in cash subject to certain adjustments defined in the definitive agreement. Over the past year, Farmers & Merchants Bancorp previously acquired 1,586, or 39.65%, of the outstanding common shares of Bank of Rio Vista for $12.0 million. As a result, the total price paid for all common shares of Bank of Rio Vista is $40.7 million or 1.42 times the minimum book value that must be delivered at close. As a result of signing a definitive agreement with Bank of Rio Vista, Farmers & Merchants Bancorp is accounting for the 39.65% of the outstanding common shares of Bank of Rio Vista that it currently owns under the equity method of accounting, in accordance with ASC 323-10 effective first quarter 2018. During the three months ended March 31, 2018, the Company’s recorded investment in Bank of Rio Vista increased by $124,000, based upon the earnings of Bank of Rio Vista that are attributed to the Company’s ownership. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 8. Recent Accounting Pronouncements Recently Adopted Accounting Guidance The following paragraphs provide descriptions of recently adopted accounting standards that may have had a material effect on the Company’s financial position or results of operations. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures as the Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts and debit card and ATM fees, did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2018, the FASB issued ASU 2018-02, Íncome Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Accounting Guidance Pending Adoption at March 31, 2018 The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU will require the earlier recognition of credit losses on loans and other financial instruments based on an expected loss model, replacing the incurred loss model that is currently in use. Under the new guidance, an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The expected loss model will apply to loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. The impairment model for available-for-sale debt securities will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. The new guidance is effective on January 1, 2020, with early adoption permitted on January 1, 2019. The Company has selected a vendor to analyze our loan data and has chosen an implementation team. The Company is currently In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events On May 01, 2018, the Company issued 8,769 shares of common stock to the Bank’s non-qualified defined contribution retirement plans. These shares were issued at a price of $635 per share based upon a valuation completed by a nationally recognized bank consulting and advisory firm and in reliance upon the exemption in Section 4(2) of the Securities Act of 1933, as amended, and the regulations promulgated thereunder. The proceeds were contributed to the Bank as equity capital. |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America for financial information. These statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting on Form 10-Q. These statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the three-month period ended March 31, 2018 may not necessarily be indicative of future operating results. Certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The accompanying consolidated financial statements include the accounts of the Company and the Company’s wholly owned subsidiaries, F & M Bancorp, Inc. and the Bank, along with the Bank’s wholly owned subsidiaries, Farmers & Merchants Investment Corporation and Farmers/Merchants Corp. Significant inter-company transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Certain amounts in the prior years' financial statements and related footnote disclosures have been reclassified to conform to the current-year presentation. These reclassifications had no effect on previously reported net income or total shareholders’ equity. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company elected to use the modified retrospective transition method which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption however, periods prior to the date of adoption will not be retrospectively revised as the impact of the ASU on uncompleted contracts at the date of adoption was not material. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is limited judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, the Company has defined cash and cash equivalents as those amounts included in the balance sheet captions Cash and Due from Banks, Interest Bearing Deposits with Banks, Federal Funds Sold and Securities Purchased Under Agreements to Resell. For these instruments, the carrying amount is a reasonable estimate of fair value. |
Equity Method Investment | Equity Method Investment Investment over which the Company exercises significant influence over the activities of the entity but which do not meet the requirements for consolidation is accounted for using the equity method of accounting pursuant to ASC 323, whereby the Company records its share of the underlying income or loss of the entity. Equity in losses of the equity method investment is not recognized after the carrying value of the investment, including advances and loans, has been reduced to zero, unless guarantees or other funding obligations exist. |
Investment Securities | Investment Securities Investment securities are classified at the time of purchase as held-to-maturity (“HTM”) if it is management’s intent and the Company has the ability to hold the securities until maturity. These securities are carried at cost, adjusted for amortization of premium and accretion of discount using a level yield of interest over the estimated remaining period until maturity. Losses, reflecting a decline in value judged by the Company to be other than temporary, are recognized in the period in which they occur. Securities are classified as available-for-sale (“AFS”) if it is management’s intent, at the time of purchase, to hold the securities for an indefinite period of time and/or to use the securities as part of the Company’s asset/liability management strategy. These securities are reported at fair value with aggregate unrealized gains or losses excluded from income and included as a separate component of shareholders’ equity, net of related income taxes. Fair values are based on quoted market prices or broker/dealer price quotations on a specific identification basis. Gains or losses on the sale of these securities are computed using the specific identification method. Trading securities, if any, are acquired for short-term appreciation and are recorded in a trading portfolio and are carried at fair value, with unrealized gains and losses recorded in non-interest income. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement; and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. |
Loans & Leases | Loans & Leases Loans & leases are reported at the principal amount outstanding net of unearned discounts and deferred loan & lease fees and costs. Interest income on loans & leases is accrued daily on the outstanding balances using the simple interest method. Loan & lease origination fees are deferred and recognized over the contractual life of the loan or lease as an adjustment to the yield. Loans & leases are placed on non-accrual status when the collection of principal or interest is in doubt or when they become past due for 90 days or more unless they are both well-secured and in the process of collection. For this purpose, a loan or lease is considered well-secured if it is collateralized by property having a net realizable value in excess of the amount of the loan or lease or is guaranteed by a financially capable party. When a loan or lease is placed on non-accrual status, the accrued and unpaid interest receivable is reversed and charged against current income; thereafter, interest income is recognized only as it is collected in cash. Additionally, cash would be applied to principal if all principal was not expected to be collected. Loans & leases placed on non-accrual status are returned to accrual status when the loans or leases are paid current as to principal and interest and future payments are expected to be made in accordance with the contractual terms of the loan or lease. A loan or lease is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Impaired loans & leases are either: (1) non-accrual loans & leases; or (2) restructured loans & leases that are still accruing interest. Loans or leases determined to be impaired are individually evaluated for impairment. When a loan or lease is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan or lease's effective interest rate, except that as a practical expedient, it may measure impairment based on a loan or lease's observable market price, or the fair value of the collateral if the loan or lease is collateral dependent. A loan or lease is collateral dependent if the repayment of the loan or lease is expected to be provided solely by the underlying collateral. A restructuring of a loan or lease constitutes a troubled debt restructuring (TDR) if the Company for economic or legal reasons related to the borrower’s (the term “borrower” is used herein to describe a customer who has entered into either a loan or lease transaction) financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans & leases typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. If the restructured loan or lease was current on all payments at the time of restructure and management reasonably expects the borrower will continue to perform after the restructure, management may keep the loan or lease on accrual. Loans & leases that are on nonaccrual status at the time they become TDR, remain on nonaccrual status until the borrower demonstrates a sustained period of performance, which the Company generally believes to be six consecutive months of payments, or equivalent. A loan or lease can be removed from TDR status if it was restructured at a market rate in a prior calendar year and is currently in compliance with its modified terms. However, these loans or leases continue to be classified as impaired and are individually evaluated for impairment as described above. Generally, the Company will not restructure loans or leases for borrowers unless: (1) the existing loan or lease is brought current as to principal and interest payments; and (2) the restructured loan or lease can be underwritten to reasonable underwriting standards. If these standards are not met other actions will be pursued (e.g., foreclosure) to collect outstanding loan or lease amounts. After restructure, a determination is made whether the loan or lease will be kept on accrual status based upon the underwriting and historical performance of the restructured credit. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses is an estimate of probable incurred credit losses inherent in the Company's loan & lease portfolio as of the balance sheet date. The allowance is established through a provision for credit losses, which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan & lease growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of three primary components: specific reserves related to impaired loans & leases; general reserves for inherent losses related to loans & leases that are not impaired; and an unallocated component that takes into account the imprecision in estimating and allocating allowance balances associated with macro factors. The determination of the general reserve for loans & leases that are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, qualitative factors that include economic trends in the Company's service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company's underwriting policies, the character of the loan & lease portfolio, and probable losses inherent in the portfolio taken as a whole. The Company maintains a separate allowance for each portfolio segment (loan & lease type). These portfolio segments include: (1) commercial real estate; (2) agricultural real estate; (3) real estate construction (including land and development loans); (4) residential 1 st The Company assigns a risk rating to all loans & leases and periodically performs detailed reviews of all such loans & leases over a certain threshold to identify credit risks and assess overall collectability. For smaller balance loans & leases, such as consumer and residential real estate, a credit grade is established at inception, and then updated only when the loan or lease becomes contractually delinquent or when the borrower requests a modification. For larger balance loans, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans & leases. These credit quality indicators are used to assign a risk rating to each individual loan or lease. These risk ratings are also subject to examination by independent specialists engaged by the Company. The risk ratings can be grouped into five major categories, defined as follows: Pass – A pass loan or lease is a strong credit with no existing or known potential weaknesses deserving of management's close attention. Special Mention – A special mention loan or lease has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or in the Company's credit position at some future date. Special mention loans & leases are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard – A substandard loan or lease is not adequately protected by the current financial condition and paying capacity of the borrower or the value of the collateral pledged, if any. Loans or leases classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well-defined weaknesses include a project's lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project's failure to fulfill economic expectations. Doubtful – Loss – Loans or leases classified as loss are considered uncollectible. Once a loan or lease becomes delinquent and repayment becomes questionable, the Company will address collateral shortfalls with the borrower and attempt to obtain additional collateral. If this is not forthcoming and payment in full is unlikely, the Company will estimate its probable loss and immediately charge-off some or all of the balance. The general reserve component of the allowance for credit losses also consists of reserve factors that are based on management's assessment of the following for each portfolio segment: (1) inherent credit risk; (2) historical losses; and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below: Commercial Real Estate – Commercial real estate mortgage loans are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations. Real Estate Construction – Real estate construction loans, including land loans, are generally considered to possess a higher inherent risk of loss than the Company’s commercial, agricultural and consumer loan types. A major risk arises from the necessity to complete projects within specified cost and time lines. Trends in the construction industry significantly impact the credit quality of these loans, as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects. Commercial – These loans are generally considered to possess a moderate inherent risk of loss because they are shorter-term; typically made to relationship customers; generally underwritten to existing cash flows of operating businesses; and may be collateralized by fixed assets, inventory and/or accounts receivable. Debt coverage is provided by business cash flows and economic trends influenced by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Agricultural Real Estate and Agricultural – These loans are generally considered to possess a moderate inherent risk of loss since they are typically made to relationship customers and are secured by crop production, livestock and related real estate. These loans are vulnerable to two risk factors that are largely outside the control of Company and borrowers: commodity prices and weather conditions. Leases – Equipment leases are generally considered to possess a moderate inherent risk of loss. As lessor, the Company is subject to both the credit risk of the borrower and the residual value risk of the equipment. Credit risks are underwritten using the same credit criteria the Company would use when making an equipment term loan. Residual value risk is managed through the use of qualified, independent appraisers that establish the residual values the Company uses in structuring a lease. Residential 1st Mortgages and Home Equity Lines and Loans – These loans are generally considered to possess a low inherent risk of loss, although this is not always true as evidenced by the correction in residential real estate values that occurred between 2007 and 2012. The degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower's ability to repay in an orderly fashion. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers' capacity to repay their obligations may be deteriorating. Consumer & Other – A consumer installment loan portfolio is usually comprised of a large number of small loans scheduled to be amortized over a specific period. Most installment loans are made for consumer purchases. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers' capacity to repay their obligations may be deteriorating. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company's and Bank's regulators, including the Federal Reserve Board (“FRB”), the California Department of Business Oversight (“DBO”) and the Federal Deposit Insurance Corporation (“FDIC”), as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations. |
Acquired Loans | Acquired Loans Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit discounts, which reflect estimates of credit losses, expected to be incurred over the life of the loan, are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. |
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures | Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates anticipated losses using historical data and utilization assumptions. The allowance for off-balance-sheet commitments is included in Interest Payable and Other Liabilities on the Company’s Consolidated Balance Sheet. |
Premises and Equipment | Premises and Equipment Premises, equipment, and leasehold improvements are stated at cost, less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Estimated useful lives of buildings range from 30 to 40 years, and for furniture and equipment from 3 to 7 years. Leasehold improvements are amortized over the lesser of the terms of the respective leases, or their useful lives, which are generally 5 to 10 years. Remodeling and capital improvements are capitalized while maintenance and repairs are charged directly to occupancy expense. |
Other Real Estate | Other Real Estate Other real estate, which is included in other assets, is expected to be sold and is comprised of properties no longer utilized for business operations and property acquired through foreclosure in satisfaction of indebtedness. These properties are recorded at fair value less estimated selling costs upon acquisition. Revised estimates to the fair value less cost to sell are reported as adjustments to the carrying amount of the asset, provided that such adjusted value is not in excess of the carrying amount at acquisition. Initial losses on properties acquired through full or partial satisfaction of debt are treated as credit losses and charged to the allowance for credit losses at the time of acquisition. Subsequent declines in value from the recorded amounts, routine holding costs, and gains or losses upon disposition, if any, are included in non-interest expense as incurred. |
Income Taxes | Income Taxes The Company uses the liability method of accounting for income taxes. This method results in the recognition of deferred tax assets and liabilities that are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The deferred provision for income taxes is the result of the net change in the deferred tax asset and deferred tax liability balances during the year. This amount combined with the current taxes payable or refundable results in the income tax expense for the current year. The Company follows the standards set forth in the “Income Taxes” topic of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company accounts for leases with Investment Tax Credits (ITC) under the deferred method as established in ASC 740-10. ITC are viewed and accounted for as a reduction of the cost of the related assets and presented as deferred income on the Company’s financial statement. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest expense and penalties associated with unrecognized tax benefits, if any, are included in the provision for income taxes in the Consolidated Statements of Income. |
Basic Earnings Per Common Share | Basic Earnings Per Common Share The Company’s common stock is not traded on any exchange. The shares are primarily held by local residents and are not actively traded. Basic earnings per common share amounts are computed by dividing net income by the weighted average number of common shares outstanding for the period. There are no common stock equivalent shares. Therefore, there is no presentation of diluted basic earnings per common share. See Note 6 for additional information. |
Segment Reporting | Segment Reporting The “Segment Reporting” topic of the FASB ASC requires that public companies report certain information about operating segments. It also requires that public companies report certain information about their products and services, the geographic areas in which they operate, and their major customers. The Company is a holding company for a community bank, which offers a wide array of products and services to its customers. Pursuant to its banking strategy, emphasis is placed on building relationships with its customers, as opposed to building specific lines of business. As a result, the Company is not organized around discernible lines of business and prefers to work as an integrated unit to customize solutions for its customers, with business line emphasis and product offerings changing over time as needs and demands change. Therefore, the Company only reports one segment. |
Low Income Housing Tax Credit Investments (LIHTC) | Low Income Housing Tax Credit Investments (LIHTC) The Company accounts for its interest in LIHTC using the cost method as established in ASC 323-740. As an investor, the Company obtains income tax credits and deductions from the operating losses of these tax credit entities. The income tax credits and deductions are allocated to the investors based on their ownership percentages and are recorded as a reduction of income tax expense (or an increase to income tax benefit) and a reduction of federal income taxes payable. |
Comprehensive Income | Comprehensive Income The “Comprehensive Income” topic of the FASB ASC establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Other comprehensive income (loss) refers to revenues, expenses, gains, and losses that U.S. GAAP recognize as changes in value to an enterprise but are excluded from net income. For the Company, comprehensive income includes net income and changes in fair value of its available-for-sale investment securities. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Business Combinations And Related Matters | Business Combinations And Related Matters Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the fair value over the purchase price of net assets and other identifiable intangible assets acquired is recorded as bargain purchase gain. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value, if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of operations from the date of acquisition. Acquisition-related costs, including conversion charges, are expensed as incurred. The Company applied this guidance to the acquisition of Delta National Bancorp that was consummated on November 18, 2016. |
Intangible Assets | Intangible Assets Intangible assets are comprised of core deposit intangibles acquired in the Delta National Bancorp acquisition. Intangible assets with definite useful lives are amortized over their respective estimated useful lives. If an event occurs that indicates the carrying amount of an intangible asset may not be recoverable, management reviews the asset for impairment. |
Recent Accounting Pronounceme18
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Guidance The following paragraphs provide descriptions of recently adopted accounting standards that may have had a material effect on the Company’s financial position or results of operations. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures as the Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts and debit card and ATM fees, did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2018, the FASB issued ASU 2018-02, Íncome Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Accounting Guidance Pending Adoption at March 31, 2018 The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU will require the earlier recognition of credit losses on loans and other financial instruments based on an expected loss model, replacing the incurred loss model that is currently in use. Under the new guidance, an entity will measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The expected loss model will apply to loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. The impairment model for available-for-sale debt securities will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. The new guidance is effective on January 1, 2020, with early adoption permitted on January 1, 2019. The Company has selected a vendor to analyze our loan data and has chosen an implementation team. The Company is currently In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investment Securities [Abstract] | |
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-Sale | The amortized cost, fair values, and unrealized gains and losses of the securities available-for-sale ( in thousands): Amortized Gross Unrealized Fair/Book March 31, 2018 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,068 $ 27 $ - $ 3,095 US Treasury Notes 144,147 3 741 143,409 US Govt SBA 27,786 12 261 27,537 Mortgage Backed Securities (1) 324,251 393 5,881 318,763 Other 3,010 - - 3,010 Total $ 502,262 $ 435 $ 6,883 $ 495,814 Amortized Gross Unrealized Fair/Book December 31, 2017 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,080 $ 48 $ - $ 3,128 US Treasury Notes 144,606 - 442 144,164 US Govt SBA 29,559 29 208 29,380 Mortgage Backed Securities (1) 302,502 939 1,527 301,914 Other 3,010 - - 3,010 Total $ 482,757 $ 1,016 $ 2,177 $ 481,596 Amortized Gross Unrealized Fair/Book March 31, 2017 Cost Gains Losses Value Government Agency & Government-Sponsored Entities $ 3,115 $ 102 $ - $ 3,217 US Treasury Notes 104,717 2 300 104,419 US Govt SBA 34,947 34 247 34,734 Mortgage Backed Securities (1) 309,187 1,820 1,545 309,462 Other 1,010 - - 1,010 Total $ 452,976 $ 1,958 $ 2,092 $ 452,842 (1) |
Book Values, Estimated Fair Values and Unrealized Gains and Losses of Investments Classified as Held-to-Maturity | The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity (in thousands): Book Gross Unrealized Fair March 31, 2018 Value Gains Losses Value Obligations of States and Political Subdivisions $ 53,527 $ 274 $ 56 $ 53,745 Total $ 53,527 $ 274 $ 56 $ 53,745 Book Gross Unrealized Fair December 31, 2017 Value Gains Losses Value Obligations of States and Political Subdivisions $ 54,460 $ 776 $ - $ 55,236 Total $ 54,460 $ 776 $ - $ 55,236 Book Gross Unrealized Fair March 31, 2017 Value Gains Losses Value Obligations of States and Political Subdivisions $ 57,281 $ 414 $ 22 $ 57,673 Total $ 57,281 $ 414 $ 22 $ 57,673 |
Amortized Cost and Estimated Fair Values of Investment Securities by Contractual Maturity | The amortized cost and estimated fair values of investment securities at March 31, 2018 by contractual maturity are shown in the following table (in thousands): Available-for-Sale Held-to-Maturity March 31, 2018 Amortized Cost Fair/Book Value Book Value Fair Value Within one year $ 123,199 $ 122,897 $ 2,907 $ 2,915 After one year through five years 14,798 14,762 6,711 6,714 After five years through ten years 17,877 17,482 17,707 17,795 After ten years 22,137 21,910 26,202 26,321 178,011 177,051 53,527 53,745 Investment securities not due at a single maturity date: Mortgage-backed securities 324,251 318,763 - - Total $ 502,262 $ 495,814 $ 53,527 $ 53,745 |
Investments with Gross Unrealized Losses and Their Market Value Aggregated by Investment Category and Length of Time that Individual Securities Have Been in a Continuous Unrealized Loss Position | The following tables show those investments with gross unrealized losses and their market value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at the dates indicated (in thousands) Less Than 12 Months 12 Months or More Total March 31, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 23,551 $ 436 $ 59,866 $ 305 $ 83,417 $ 741 US Govt SBA 10,848 82 11,737 179 22,585 261 Mortgage Backed Securities 259,314 4,606 41,230 1,275 300,544 5,881 Total $ 293,713 $ 5,124 $ 112,833 $ 1,759 $ 406,546 $ 6,883 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 7,654 $ 56 $ - $ - $ 7,654 $ 56 Total $ 7,654 $ 56 $ - $ - $ 7,654 $ 56 Less Than 12 Months 12 Months or More Total December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 94,281 $ 144 $ 49,883 $ 298 $ 144,164 $ 442 US Govt SBA 8,379 51 12,900 157 21,279 208 Mortgage Backed Securities 126,863 932 43,208 595 170,071 1,527 Total $ 229,523 $ 1,127 $ 105,991 $ 1,050 $ 335,514 $ 2,177 There were no HTM investments with gross unrealized losses at December 31, 2017 Less Than 12 Months 12 Months or More Total March 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Securities Available-for-Sale US Treasury Notes $ 69,433 $ 300 $ - $ - $ 69,433 $ 300 US Govt SBA 26,412 247 - - 26,412 247 Mortgage Backed Securities 168,546 1,545 - - 168,546 1,545 Total $ 264,391 $ 2,092 $ - $ - $ 264,391 $ 2,092 Securities Held-to-Maturity Obligations of States and Political Subdivisions $ 4,278 $ 22 $ - $ - $ 4,278 $ 22 Total $ 4,278 $ 22 $ - $ - $ 4,278 $ 22 |
Loans & Leases and Allowance 20
Loans & Leases and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Loans & Leases and Allowance for Credit Losses [Abstract] | |
Allocation of Allowance for Credit Losses by Portfolio Segment and by Impairment Methodology | The following tables show the allocation of the allowance for credit losses by portfolio segment and by impairment methodology at the dates indicated (in thousands) March 31, 2018 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2018 $ 10,922 $ 12,085 $ 1,846 $ 815 $ 2,324 $ 8,159 $ 9,197 $ 209 $ 3,363 $ 1,422 $ 50,342 Charge-Offs - - - - (4 ) - - (17 ) - - (21 ) Recoveries - - - 3 1 6 2 11 - - 23 Provision 156 157 27 9 22 (297 ) 175 36 27 21 333 Ending Balance- March 31, 2018 $ 11,078 $ 12,242 $ 1,873 $ 827 $ 2,343 $ 7,868 $ 9,374 $ 239 $ 3,390 $ 1,443 $ 50,677 Ending Balance Individually Evaluated for Impairment 335 - - 76 17 - 205 8 - - 641 Ending Balance Collectively Evaluated for Impairment 10,743 12,242 1,873 751 2,326 7,868 9,169 231 3,390 1,443 50,036 Loans: Ending Balance $ 698,349 $ 508,400 $ 96,315 $ 264,137 $ 34,691 $ 261,427 $ 274,682 $ 6,685 $ 90,397 $ - $ 2,235,083 Ending Balance Individually Evaluated for Impairment 4,784 - - 2,427 332 - 1,713 9 - - 9,265 Ending Balance Collectively Evaluated for Impairment $ 693,565 $ 508,400 $ 96,315 $ 261,710 $ 34,359 $ 261,427 $ 272,969 $ 6,676 $ 90,397 $ - $ 2,225,818 December 31, 2017 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2017 $ 11,110 $ 9,450 $ 3,223 $ 865 $ 2,140 $ 7,381 $ 8,515 $ 200 $ 3,586 $ 1,449 $ 47,919 Charge-Offs (109 ) - - (53 ) (3 ) (374 ) - (146 ) - - (685 ) Recoveries 109 - - 40 8 17 8 76 - - 258 Provision (188 ) 2,635 (1,377 ) (37 ) 179 1,135 674 79 (223 ) (27 ) 2,850 Ending Balance- December 31, 2017 $ 10,922 $ 12,085 $ 1,846 $ 815 $ 2,324 $ 8,159 $ 9,197 $ 209 $ 3,363 $ 1,422 $ 50,342 Ending Balance Individually Evaluated for Impairment 366 - - 73 17 - 220 8 - - 684 Ending Balance Collectively Evaluated for Impairment 10,556 12,085 1,846 742 2,307 8,159 8,977 201 3,363 1,422 49,658 Loans & Leases: Ending Balance $ 684,961 $ 499,231 $ 100,206 $ 260,751 $ 34,525 $ 273,582 $ 265,703 $ 6,656 $ 89,680 $ - $ 2,215,295 Ending Balance Individually Evaluated for Impairment 4,822 - - 2,373 340 - 1,734 10 - - 9,279 Ending Balance Collectively Evaluated for Impairment 680,139 499,231 100,206 258,378 34,185 273,582 263,969 6,646 89,680 - 2,206,016 March 31, 2017 Commercial Real Estate Agricultural Real Estate Real Estate Construction Residential 1st Mortgages Home Equity Lines & Loans Agricultural Commercial Consumer & Other Leases Unallocated Total Year-To-Date Allowance for Credit Losses: Beginning Balance- January 1, 2017 $ 11,110 $ 9,450 $ 3,223 $ 865 $ 2,140 $ 7,381 $ 8,515 $ 200 $ 3,586 $ 1,449 $ 47,919 Charge-Offs (109 ) - - - - (7 ) - (35 ) - - (151 ) Recoveries 7 - - 3 2 - 4 16 - - 32 Provision 657 (57 ) (277 ) 12 (17 ) (863 ) (40 ) 17 280 888 600 Ending Balance- March 31, 2017 $ 11,665 $ 9,393 $ 2,946 $ 880 $ 2,125 $ 6,511 $ 8,479 $ 198 $ 3,866 $ 2,337 $ 48,400 Ending Balance Individually Evaluated for Impairment 471 - - 69 17 331 268 6 - - 1,162 Ending Balance Collectively Evaluated for Impairment 11,194 9,393 2,946 811 2,108 6,180 8,211 192 3,866 2,337 47,238 Loans: Ending Balance $ 676,527 $ 463,645 $ 164,791 $ 249,628 $ 31,817 $ 266,010 $ 209,184 $ 7,119 $ 77,311 $ - $ 2,146,032 Ending Balance Individually Evaluated for Impairment 4,924 975 - 2,069 451 698 1,633 9 - - 10,759 Ending Balance Collectively Evaluated for Impairment $ 671,603 $ 462,670 $ 164,791 $ 247,559 $ 31,366 $ 265,312 $ 207,551 $ 7,110 $ 77,311 $ - $ 2,135,273 |
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings | The following tables show the loan & lease portfolio allocated by management’s internal risk ratings at the dates indicated (in thousands) March 31, 2018 Pass Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 691,537 $ 6,812 $ - $ 698,349 Agricultural Real Estate 495,936 8,537 3,927 508,400 Real Estate Construction 86,779 9,536 - 96,315 Residential 1st Mortgages 263,101 - 1,036 264,137 Home Equity Lines & Loans 34,643 - 48 34,691 Agricultural 252,553 6,286 2,588 261,427 Commercial 268,745 5,460 477 274,682 Consumer & Other 6,565 - 120 6,685 Leases 88,320 2,077 - 90,397 Total $ 2,188,179 $ 38,708 $ 8,196 $ 2,235,083 December 31, 2017 Pass Special Mention Substandard Total Loans Loans & Leases: Commercial Real Estate $ 677,636 $ 6,843 $ 482 $ 684,961 Agricultural Real Estate 488,672 6,529 4,030 499,231 Real Estate Construction 90,728 9,478 - 100,206 Residential 1st Mortgages 259,795 41 915 260,751 Home Equity Lines and Loans 34,476 - 49 34,525 Agricultural 264,425 6,439 2,718 273,582 Commercial 260,565 4,610 528 265,703 Consumer & Other 6,498 - 158 6,656 Leases 87,497 2,183 - 89,680 Total $ 2,170,292 $ 36,123 $ 8,880 $ 2,215,295 March 31, 2017 Pass Special Mention Substandard Total Loans & Leases Loans & Leases: Commercial Real Estate $ 668,243 $ 6,768 $ 1,516 $ 676,527 Agricultural Real Estate 461,318 1,351 976 463,645 Real Estate Construction 156,426 8,365 - 164,791 Residential 1st Mortgages 249,238 45 345 249,628 Home Equity Lines & Loans 31,752 - 65 31,817 Agricultural 255,390 9,857 763 266,010 Commercial 204,792 3,638 754 209,184 Consumer & Other 6,965 - 154 7,119 Leases 74,817 2,494 - 77,311 Total $ 2,108,941 $ 32,518 $ 4,573 $ 2,146,032 |
Aging Analysis of Loan & Lease Portfolio by Time Past Due | The following tables show an aging analysis of the loan & lease portfolio by the time past due at the dates indicated (in thousands) March 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 698,349 $ 698,349 Agricultural Real Estate - - - - - 508,400 508,400 Real Estate Construction - - - - - 96,315 96,315 Residential 1st Mortgages 14 49 - 81 144 263,993 264,137 Home Equity Lines & Loans 20 - - - 20 34,671 34,691 Agricultural - - - - - 261,427 261,427 Commercial - 14 - - 14 274,668 274,682 Consumer & Other 8 - - - 8 6,677 6,685 Leases - - - - - 90,397 90,397 Total $ 42 $ 63 $ - $ 81 $ 186 $ 2,234,897 $ 2,235,083 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 684,961 $ 684,961 Agricultural Real Estate - - - - - 499,231 499,231 Real Estate Construction - - - - - 100,206 100,206 Residential 1st Mortgages 448 - - - 448 260,303 260,751 Home Equity Lines and Loans 10 - - - 10 34,515 34,525 Agricultural - - - - - 273,582 273,582 Commercial 180 - - - 180 265,523 265,703 Consumer & Other 7 - - - 7 6,649 6,656 Leases - - - - - 89,680 89,680 Total $ 645 $ - $ - $ - $ 645 $ 2,214,650 $ 2,215,295 March 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days and Still Accruing Nonaccrual Total Past Due Current Total Loans & Leases Loans & Leases: Commercial Real Estate $ - $ - $ - $ - $ - $ 676,527 $ 676,527 Agricultural Real Estate - - - 976 976 462,669 463,645 Real Estate Construction - - - - - 164,791 164,791 Residential 1st Mortgages 110 - - 60 170 249,458 249,628 Home Equity Lines & Loans - - - 64 64 31,753 31,817 Agricultural - - - 315 315 265,695 266,010 Commercial - - - - - 209,184 209,184 Consumer & Other 16 - - 6 22 7,097 7,119 Leases - - - - - 77,311 77,311 Total $ 126 $ - $ - $ 1,421 $ 1,547 $ 2,144,485 $ 2,146,032 |
Impaired Loans & Leases | The following tables show information related to impaired loans & leases for the periods indicated (in thousands) March 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 102 $ 102 $ - $ 103 $ 2 Residential 1st Mortgages 903 1,005 - 907 8 $ 1,005 $ 1,107 $ - $ 1,010 $ 10 With an allowance recorded: Commercial Real Estate $ 2,955 $ 2,943 $ 335 $ 2,964 $ 24 Residential 1st Mortgages 583 649 29 546 7 Home Equity Lines & Loans 78 88 4 76 1 Commercial 1,720 1,713 205 1,731 15 Consumer & Other 8 8 8 8 - $ 5,344 $ 5,401 $ 581 $ 5,325 $ 47 Total $ 6,349 $ 6,508 $ 581 $ 6,335 $ 57 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 104 $ 104 $ - $ 107 $ 11 Agricultural Real Estate - - - 488 - Residential 1st Mortgages 911 1,012 - 532 11 Home Equity Lines and Loans - - - 16 - Agricultural - - - 30 - $ 1,015 $ 1,116 $ - $ 1,173 $ 22 With an allowance recorded: Commercial Real Estate $ 2,973 $ 2,961 $ 366 $ 2,999 $ 104 Residential 1st Mortgages 508 571 25 469 16 Home Equity Lines and Loans 73 89 4 74 3 Agricultural - - - 409 21 Commercial 1,741 1,734 220 1,693 59 Consumer & Other 8 9 8 11 - $ 5,303 $ 5,364 $ 623 $ 5,655 $ 203 Total $ 6,318 $ 6,480 $ 623 $ 6,828 $ 225 March 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 110 $ 110 $ - $ 147 $ 4 Agricultural Real Estate 976 983 - 1,141 - Residential 1st Mortgages 413 467 - 432 - Home Equity Lines & Loans 64 65 - 32 - Agricultural 60 66 - 30 - Commercial - - - 1,512 - $ 1,623 $ 1,691 $ - $ 3,294 $ 4 With an allowance recorded: Commercial Real Estate $ 3,024 $ 3,010 $ 471 $ 1,512 $ 30 Residential 1st Mortgages 426 466 20 428 5 Home Equity Lines & Loans 89 95 4 90 1 Agricultural 638 639 331 632 8 Commercial 1,641 1,633 268 1,541 16 Consumer & Other 6 12 6 6 - $ 5,824 $ 5,855 $ 1,100 $ 4,209 $ 60 Total $ 7,447 $ 7,546 $ 1,100 $ 7,503 $ 64 |
Loans & Leases by Class Modified as Troubled Debt Restructured Loans | The following table presents loans by class modified as troubled debt restructured loans for the period ended December 31, 2017 (in thousands) December 31, 2017 Troubled Debt Restructurings Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential 1st Mortgages 2 $ 673 $ 630 Home Equity Lines and Loans 1 32 32 Commercial 2 138 138 Consumer & Other 1 9 8 Total 6 $ 852 $ 808 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s assets measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Fair Value Measurements At March 31, 2018, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,095 $ - $ 3,095 $ - US Treasury Notes 143,409 143,409 - - US Govt SBA 27,537 - 27,537 - Mortgage Backed Securities 318,763 - 318,763 - Other 3,010 200 310 2,500 Total Assets Measured at Fair Value On a Recurring Basis $ 495,814 $ 143,609 $ 349,705 $ 2,500 Fair Value Measurements At December 31, 2017, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,128 $ - $ 3,128 $ - US Treasury Notes 144,164 144,164 - - US Govt SBA 29,380 - 29,380 - Mortgage Backed Securities 301,914 - 301,914 - Other 3,010 200 310 2,500 Total Assets Measured at Fair Value On a Recurring Basis $ 481,596 $ 144,364 $ 334,732 $ 2,500 Fair Value Measurements At March 31, 2017, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-Sale Securities: Government Agency & Government-Sponsored Entities $ 3,217 $ - $ 3,217 $ - US Treasury Notes 104,419 104,419 - - US Govt SBA 34,734 - 34,734 - Mortgage Backed Securities 309,462 - 309,462 - Other 1,010 200 310 500 Total Assets Measured at Fair Value On a Recurring Basis $ 452,842 $ 104,619 $ 347,723 $ 500 |
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following tables present information about the Company’s other real estate and impaired loans or leases, classes of assets or liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans or leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment of a specific reserve. Fair Value Measurements At March 31, 2018, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans Commercial Real Estate $ 2,608 $ - $ - $ 2,608 Residential 1st Mortgage 475 - - 475 Home Equity Lines and Loans 74 - - 74 Commercial 1,508 - - 1,508 Total Impaired Loans 4,665 - - 4,665 Other Real Estate Real Estate Construction 873 - - 873 Total Other Real Estate 873 - - 873 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 5,538 $ - $ - $ 5,538 Fair Value Measurements At December 31, 2017, Using Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Impaired Loans: Commercial Real Estate $ 2,595 $ - $ - $ 2,595 Residential 1st Mortgage 997 - - 997 Home Equity Lines and Loans 75 - - 75 Commercial 1,514 - - 1,514 Total Impaired Loans 5,181 - - 5,181 Other Real Estate: Real Estate Construction 873 - - 873 Total Other Real Estate 873 - - 873 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 6,054 $ - $ - $ 6,054 Fair Value Measurements At March 31, 2017, Using (in thousands) Fair Value Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans Commercial Real Estate $ 2,539 $ - $ - $ 2,539 Residential 1st Mortgage 389 - - 389 Home Equity Lines and Loans 82 - - 82 Agricultural 367 - - 367 Commercial 1,365 - - 1,365 Total Impaired Loans 4,742 - - 4,742 Other Real Estate Home Equity Lines and Loans 685 - - 685 Real Estate Construction 1,467 - - 1,467 Total Other Real Estate 2,152 - - 2,152 Total Assets Measured at Fair Value On a Non-Recurring Basis $ 6,894 $ - $ - $ 6,894 |
Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on a Nonrecurring Basis | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at March 31, 2018: (in thousands) Fair Value Valuation Technique Unobservable Inputs Range, Weighted Avg. Impaired Loans Commercial Real Estate $ 2,608 Income Approach Capitalization Rate 3.25%, 3.25% Residential 1st Mortgage $ 475 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% -4%, 3% Home Equity Lines and Loans $ 74 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 1% - 2%, 1% Commercial $ 1,508 Income Approach Capitalization Rate 2.95% - 8.70%, 3.40% Other Real Estate Real Estate Construction $ 873 Sales Comparison Approach Adjustment for Difference Between Comparable Sales 10%, 10% |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Book Value and Estimated Fair Value of Financial Instruments | The following tables summarize the book value and estimated fair value of financial instruments for the periods indicated: Fair Value of Financial Instruments Using March 31, 2018 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 134,984 $ 134,984 $ - $ - $ 134,984 Investment Securities Available-for-Sale 495,814 143,609 349,705 2,500 495,814 Investment Securities Held-to-Maturity 53,527 - 37,028 16,717 53,745 FHLB Stock 10,342 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,184,406 - - 2,152,504 2,152,504 Accrued Interest Receivable 9,237 - 9,237 - 9,237 Liabilities: Deposits 2,701,405 2,218,642 478,846 - 2,697,488 Subordinated Debentures 10,310 - 7,751 - 7,751 Accrued Interest Payable 909 - 909 - 909 Fair Value of Financial Instruments Using December 31, 2017 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 187,149 $ 187,149 $ - $ - $ 187,149 Investment Securities Available-for-Sale 481,596 29,580 449,516 2,500 481,596 Investment Securities Held-to-Maturity 54,460 - 38,492 16,744 55,236 FHLB Stock 10,342 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,164,953 - - 2,137,987 2,137,987 Accrued Interest Receivable 10,999 - 10,999 - 10,999 Liabilities: Deposits 2,723,228 2,247,831 472,671 - 2,720,502 Subordinated Debentures 10,310 - 7,428 - 7,428 Accrued Interest Payable 1,137 - 1,137 - 1,137 Fair Value of Financial Instruments Using March 31, 2017 (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Estimated Fair Value Assets: Cash and Cash Equivalents $ 164,512 $ 164,512 $ - $ - $ 164,512 Investment Securities Available-for-Sale 452,842 104,619 347,723 500 452,842 Investment Securities Held-to-Maturity 57,281 - 39,991 17,682 57,673 FHLB Stock 8,872 N/A N/A N/A N/A Loans & Leases, Net of Deferred Fees & Allowance 2,097,632 - - 2,076,248 2,076,248 Accrued Interest Receivable 7,962 - 7,962 - 7,962 Liabilities: Deposits 2,607,613 2,017,969 587,811 - 2,605,780 Subordinated Debentures 10,310 - 6,581 - 6,581 Accrued Interest Payable 882 - 882 - 882 |
Dividends and Basic Earnings 23
Dividends and Basic Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Dividends and Basic Earnings Per Common Share [Abstract] | |
Calculation of Basic Earnings per Share | The following table calculates the basic earnings per common share for the three months ended March 31, 2018 and 2017. (net income in thousands) 2018 2017 Net Income $ 9,941 $ 7821 Weighted Average Number of Common Shares Outstanding 812 ,304 807,986 Basic Earnings Per Common Share Amount $ 12.24 $ 9.68 |
Significant Accounting Polici24
Significant Accounting Policies (Details) $ in Thousands | Nov. 18, 2016USD ($)Branch | Mar. 31, 2018USD ($)ComponentCategoryFactorSegment | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Total assets | $ | $ 3,059,983 | $ 3,075,452 | $ 2,953,009 | |
Investment Securities [Abstract] | ||||
Number of components into which amount of impairment is split | Component | 2 | |||
Loans & Leases [Abstract] | ||||
Consecutive months of payments to demonstrate sustained period of performance | 6 months | |||
Allowance for Credit Losses [Abstract] | ||||
Number of primary components of overall allowance for credit losses | Component | 3 | |||
Number of categories into which risk ratings are grouped | Category | 5 | |||
Segment Reporting [Abstract] | ||||
Number of reportable segments | Segment | 1 | |||
Minimum [Member] | ||||
Loans & Leases [Abstract] | ||||
Period after which loans are placed on non accrual status | 90 days | |||
Buildings [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 30 years | |||
Buildings [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 40 years | |||
Furniture and Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 3 years | |||
Furniture and Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 7 years | |||
Leasehold Improvements [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 5 years | |||
Leasehold Improvements [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 10 years | |||
Agricultural Real Estate [Member] | ||||
Allowance for Credit Losses [Abstract] | ||||
Number of risk factors on loans | Factor | 2 | |||
Agricultural [Member] | ||||
Allowance for Credit Losses [Abstract] | ||||
Number of risk factors on loans | Factor | 2 | |||
Delta National Bancorp [Member] | ||||
Business Acquisition [Line Items] | ||||
Total assets | $ | $ 112,000 | |||
Number of branches | Branch | 4 |
Investment Securities, Amortize
Investment Securities, Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||
Amortized cost | $ 502,262 | $ 482,757 | $ 452,976 | |
Gross unrealized gains | 435 | 1,016 | 1,958 | |
Gross unrealized losses | 6,883 | 2,177 | 2,092 | |
Fair/Book value | 495,814 | 481,596 | 452,842 | |
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | ||||
Book value | 53,527 | 54,460 | 57,281 | |
Gross unrealized gains | 274 | 776 | 414 | |
Gross unrealized losses | 56 | 0 | 22 | |
Fair value | 53,745 | 55,236 | 57,673 | |
Government Agency & Government-Sponsored Entities [Member] | ||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||
Amortized cost | 3,068 | 3,080 | 3,115 | |
Gross unrealized gains | 27 | 48 | 102 | |
Gross unrealized losses | 0 | 0 | 0 | |
Fair/Book value | 3,095 | 3,128 | 3,217 | |
US Treasury Notes [Member] | ||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||
Amortized cost | 144,147 | 144,606 | 104,717 | |
Gross unrealized gains | 3 | 0 | 2 | |
Gross unrealized losses | 741 | 442 | 300 | |
Fair/Book value | 143,409 | 144,164 | 104,419 | |
US Govt SBA [Member] | ||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||
Amortized cost | 27,786 | 29,559 | 34,947 | |
Gross unrealized gains | 12 | 29 | 34 | |
Gross unrealized losses | 261 | 208 | 247 | |
Fair/Book value | 27,537 | 29,380 | 34,734 | |
Mortgage Backed Securities [Member] | ||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||
Amortized cost | [1] | 324,251 | 302,502 | 309,187 |
Gross unrealized gains | [1] | 393 | 939 | 1,820 |
Gross unrealized losses | [1] | 5,881 | 1,527 | 1,545 |
Fair/Book value | [1] | 318,763 | 301,914 | 309,462 |
Other [Member] | ||||
Amortized cost, fair values, and unrealized gains and losses of securities available-for-sale [Abstract] | ||||
Amortized cost | 3,010 | 3,010 | 1,010 | |
Gross unrealized gains | 0 | 0 | 0 | |
Gross unrealized losses | 0 | 0 | 0 | |
Fair/Book value | 3,010 | 3,010 | 1,010 | |
Obligations of States and Political Subdivisions [Member] | ||||
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | ||||
Book value | 53,527 | 54,460 | 57,281 | |
Gross unrealized gains | 274 | 776 | 414 | |
Gross unrealized losses | 56 | 0 | 22 | |
Fair value | $ 53,745 | $ 55,236 | $ 57,673 | |
[1] | All Mortgage Backed Securities consist of securities collateralized by residential real estate and were issued by an agency or government sponsored entity of the U.S. government. |
Investment Securities, Contract
Investment Securities, Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Amortized Cost [Abstract] | |||
Within one year | $ 123,199 | ||
After one year through five years | 14,798 | ||
After five years through ten years | 17,877 | ||
After ten years | 22,137 | ||
Amortized cost, excluding investment securities not due at a single maturity date | 178,011 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 324,251 | ||
Amortized cost | 502,262 | ||
Fair/Book Value [Abstract] | |||
Within one year | 122,897 | ||
After one year through five years | 14,762 | ||
After five years through ten years | 17,482 | ||
After ten years | 21,910 | ||
Fair/Book value, excluding investment securities not due at a single maturity date | 177,051 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 318,763 | ||
Fair/Book value | 495,814 | $ 481,596 | $ 452,842 |
Book Value [Abstract] | |||
Within one year | 2,907 | ||
After one year through five years | 6,711 | ||
After five years through ten years | 17,707 | ||
After ten years | 26,202 | ||
Book value, excluding investment securities not due at a single maturity date | 53,527 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 0 | ||
Book value | 53,527 | 54,460 | 57,281 |
Fair Value [Abstract] | |||
Within one year | 2,915 | ||
After one year through five years | 6,714 | ||
After five years through ten years | 17,795 | ||
After ten years | 26,321 | ||
Fair value, excluding investment securities not due at a single maturity date | 53,745 | ||
Investment securities not due at a single maturity date, mortgage-backed securities | 0 | ||
Fair value | $ 53,745 | $ 55,236 | $ 57,673 |
Investment Securities, Securiti
Investment Securities, Securities in Continuous Unrealized Loss Position (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Security | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | |
Investment Securities [Abstract] | |||
Number of investment securities held | Security | 491 | ||
Less than 12 months, number of positions | Security | 164 | ||
12 months or more, number of positions | Security | 95 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 293,713 | $ 229,523 | $ 264,391 |
Less than 12 months, unrealized loss | 5,124 | 1,127 | 2,092 |
12 months or more, fair value | 112,833 | 105,991 | 0 |
12 months or more, unrealized loss | 1,759 | 1,050 | 0 |
Total, fair value | 406,546 | 335,514 | 264,391 |
Total, unrealized loss | 6,883 | 2,177 | 2,092 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | 7,654 | 4,278 | |
Less than 12 months, unrealized loss | 56 | 22 | |
12 months or more, fair value | 0 | 0 | |
12 months or more, unrealized loss | 0 | 0 | |
Total, fair value | 7,654 | 4,278 | |
Total, unrealized loss | 56 | 0 | 22 |
Government Agency & Government-Sponsored Entities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Total, unrealized loss | $ 0 | 0 | 0 |
Less than 12 months, number of positions | Security | 0 | ||
12 months or more, number of positions | Security | 0 | ||
US Treasury Notes [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 23,551 | 94,281 | 69,433 |
Less than 12 months, unrealized loss | 436 | 144 | 300 |
12 months or more, fair value | 59,866 | 49,883 | 0 |
12 months or more, unrealized loss | 305 | 298 | 0 |
Total, fair value | 83,417 | 144,164 | 69,433 |
Total, unrealized loss | $ 741 | 442 | 300 |
Less than 12 months, number of positions | Security | 4 | ||
12 months or more, number of positions | Security | 4 | ||
US Govt SBA [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 10,848 | 8,379 | 26,412 |
Less than 12 months, unrealized loss | 82 | 51 | 247 |
12 months or more, fair value | 11,737 | 12,900 | 0 |
12 months or more, unrealized loss | 179 | 157 | 0 |
Total, fair value | 22,585 | 21,279 | 26,412 |
Total, unrealized loss | $ 261 | 208 | 247 |
Less than 12 months, number of positions | Security | 66 | ||
12 months or more, number of positions | Security | 66 | ||
Mortgage Backed Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 259,314 | 126,863 | 168,546 |
Less than 12 months, unrealized loss | 4,606 | 932 | 1,545 |
12 months or more, fair value | 41,230 | 43,208 | 0 |
12 months or more, unrealized loss | 1,275 | 595 | 0 |
Total, fair value | 300,544 | 170,071 | 168,546 |
Total, unrealized loss | $ 5,881 | 1,527 | 1,545 |
Less than 12 months, number of positions | Security | 75 | ||
12 months or more, number of positions | Security | 25 | ||
Obligations of States and Political Subdivisions [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, fair value | $ 7,654 | 4,278 | |
Less than 12 months, unrealized loss | 56 | 22 | |
12 months or more, fair value | 0 | 0 | |
12 months or more, unrealized loss | 0 | 0 | |
Total, fair value | 7,654 | 4,278 | |
Total, unrealized loss | $ 56 | $ 0 | $ 22 |
Less than 12 months, number of positions | Security | 19 | ||
12 months or more, number of positions | Security | 0 | ||
Municipal Bonds [Member] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Percentage of bank qualified municipal bond portfolio rated | 98.00% | ||
Percentage of portfolio not rated | 2.00% |
Investment Securities, Proceeds
Investment Securities, Proceeds From Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Proceeds from sales and calls of securities [Abstract] | ||
Proceeds | $ 0 | $ 0 |
Investment Securities, Pledged
Investment Securities, Pledged Securities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Investment Securities [Abstract] | |||
Securities pledged to secure public deposits, FHLB borrowings, and other government agency deposits as required by law | $ 245.4 | $ 214.5 | $ 203.8 |
Loans & Leases and Allowance 30
Loans & Leases and Allowance for Credit Losses, Allocation of Allowance For Credit Losses by Portfolio Segment and By Impairment Methodology (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | $ 50,342 | $ 47,919 | $ 47,919 |
Charge-Offs | (21) | (151) | (685) |
Recoveries | 23 | 32 | 258 |
Provision | 333 | 600 | 2,850 |
Ending Balance | 50,677 | 48,400 | 50,342 |
Ending Balance Individually Evaluated for Impairment | 641 | 1,162 | 684 |
Ending Balance Collectively Evaluated for Impairment | 50,036 | 47,238 | 49,658 |
Loans & Leases [Abstract] | |||
Ending Balance | 2,235,083 | 2,146,032 | 2,215,295 |
Ending Balance Individually Evaluated for Impairment | 9,265 | 10,759 | 9,279 |
Ending Balance Collectively Evaluated for Impairment | 2,225,818 | 2,135,273 | 2,206,016 |
Commercial Real Estate [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 10,922 | 11,110 | 11,110 |
Charge-Offs | 0 | (109) | (109) |
Recoveries | 0 | 7 | 109 |
Provision | 156 | 657 | (188) |
Ending Balance | 11,078 | 11,665 | 10,922 |
Ending Balance Individually Evaluated for Impairment | 335 | 471 | 366 |
Ending Balance Collectively Evaluated for Impairment | 10,743 | 11,194 | 10,556 |
Loans & Leases [Abstract] | |||
Ending Balance | 698,349 | 676,527 | 684,961 |
Ending Balance Individually Evaluated for Impairment | 4,784 | 4,924 | 4,822 |
Ending Balance Collectively Evaluated for Impairment | 693,565 | 671,603 | 680,139 |
Agricultural Real Estate [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 12,085 | 9,450 | 9,450 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 157 | (57) | 2,635 |
Ending Balance | 12,242 | 9,393 | 12,085 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 12,242 | 9,393 | 12,085 |
Loans & Leases [Abstract] | |||
Ending Balance | 508,400 | 463,645 | 499,231 |
Ending Balance Individually Evaluated for Impairment | 0 | 975 | 0 |
Ending Balance Collectively Evaluated for Impairment | 508,400 | 462,670 | 499,231 |
Real Estate Construction [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 1,846 | 3,223 | 3,223 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 27 | (277) | (1,377) |
Ending Balance | 1,873 | 2,946 | 1,846 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 1,873 | 2,946 | 1,846 |
Loans & Leases [Abstract] | |||
Ending Balance | 96,315 | 164,791 | 100,206 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 96,315 | 164,791 | 100,206 |
Residential 1st Mortgages [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 815 | 865 | 865 |
Charge-Offs | 0 | 0 | (53) |
Recoveries | 3 | 3 | 40 |
Provision | 9 | 12 | (37) |
Ending Balance | 827 | 880 | 815 |
Ending Balance Individually Evaluated for Impairment | 76 | 69 | 73 |
Ending Balance Collectively Evaluated for Impairment | 751 | 811 | 742 |
Loans & Leases [Abstract] | |||
Ending Balance | 264,137 | 249,628 | 260,751 |
Ending Balance Individually Evaluated for Impairment | 2,427 | 2,069 | 2,373 |
Ending Balance Collectively Evaluated for Impairment | 261,710 | 247,559 | 258,378 |
Home Equity Lines & Loans [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 2,324 | 2,140 | 2,140 |
Charge-Offs | (4) | 0 | (3) |
Recoveries | 1 | 2 | 8 |
Provision | 22 | (17) | 179 |
Ending Balance | 2,343 | 2,125 | 2,324 |
Ending Balance Individually Evaluated for Impairment | 17 | 17 | 17 |
Ending Balance Collectively Evaluated for Impairment | 2,326 | 2,108 | 2,307 |
Loans & Leases [Abstract] | |||
Ending Balance | 34,691 | 31,817 | 34,525 |
Ending Balance Individually Evaluated for Impairment | 332 | 451 | 340 |
Ending Balance Collectively Evaluated for Impairment | 34,359 | 31,366 | 34,185 |
Agricultural [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 8,159 | 7,381 | 7,381 |
Charge-Offs | 0 | (7) | (374) |
Recoveries | 6 | 0 | 17 |
Provision | (297) | (863) | 1,135 |
Ending Balance | 7,868 | 6,511 | 8,159 |
Ending Balance Individually Evaluated for Impairment | 0 | 331 | 0 |
Ending Balance Collectively Evaluated for Impairment | 7,868 | 6,180 | 8,159 |
Loans & Leases [Abstract] | |||
Ending Balance | 261,427 | 266,010 | 273,582 |
Ending Balance Individually Evaluated for Impairment | 0 | 698 | 0 |
Ending Balance Collectively Evaluated for Impairment | 261,427 | 265,312 | 273,582 |
Commercial [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 9,197 | 8,515 | 8,515 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 2 | 4 | 8 |
Provision | 175 | (40) | 674 |
Ending Balance | 9,374 | 8,479 | 9,197 |
Ending Balance Individually Evaluated for Impairment | 205 | 268 | 220 |
Ending Balance Collectively Evaluated for Impairment | 9,169 | 8,211 | 8,977 |
Loans & Leases [Abstract] | |||
Ending Balance | 274,682 | 209,184 | 265,703 |
Ending Balance Individually Evaluated for Impairment | 1,713 | 1,633 | 1,734 |
Ending Balance Collectively Evaluated for Impairment | 272,969 | 207,551 | 263,969 |
Consumer & Other [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 209 | 200 | 200 |
Charge-Offs | (17) | (35) | (146) |
Recoveries | 11 | 16 | 76 |
Provision | 36 | 17 | 79 |
Ending Balance | 239 | 198 | 209 |
Ending Balance Individually Evaluated for Impairment | 8 | 6 | 8 |
Ending Balance Collectively Evaluated for Impairment | 231 | 192 | 201 |
Loans & Leases [Abstract] | |||
Ending Balance | 6,685 | 7,119 | 6,656 |
Ending Balance Individually Evaluated for Impairment | 9 | 9 | 10 |
Ending Balance Collectively Evaluated for Impairment | 6,676 | 7,110 | 6,646 |
Leases [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 3,363 | 3,586 | 3,586 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 27 | 280 | (223) |
Ending Balance | 3,390 | 3,866 | 3,363 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 3,390 | 3,866 | 3,363 |
Loans & Leases [Abstract] | |||
Ending Balance | 90,397 | 77,311 | 89,680 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 90,397 | 77,311 | 89,680 |
Unallocated [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning Balance | 1,422 | 1,449 | 1,449 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 21 | 888 | (27) |
Ending Balance | 1,443 | 2,337 | 1,422 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 1,443 | 2,337 | 1,422 |
Loans & Leases [Abstract] | |||
Ending Balance | 0 | 0 | 0 |
Ending Balance Individually Evaluated for Impairment | 0 | 0 | 0 |
Ending Balance Collectively Evaluated for Impairment | 0 | 0 | 0 |
Restructured Loans [Member] | |||
Loans & Leases [Abstract] | |||
Ending Balance Individually Evaluated for Impairment | $ 2,900 | $ 3,400 | $ 3,000 |
Loans & Leases and Allowance 31
Loans & Leases and Allowance for Credit Losses, Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | $ 2,235,083 | $ 2,215,295 | $ 2,146,032 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 2,188,179 | 2,170,292 | 2,108,941 |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 38,708 | 36,123 | 32,518 |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 8,196 | 8,880 | 4,573 |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Loss [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 698,349 | 684,961 | 676,527 |
Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 691,537 | 677,636 | 668,243 |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 6,812 | 6,843 | 6,768 |
Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 482 | 1,516 |
Agricultural Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 508,400 | 499,231 | 463,645 |
Agricultural Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 495,936 | 488,672 | 461,318 |
Agricultural Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 8,537 | 6,529 | 1,351 |
Agricultural Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 3,927 | 4,030 | 976 |
Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 96,315 | 100,206 | 164,791 |
Real Estate Construction [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 86,779 | 90,728 | 156,426 |
Real Estate Construction [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 9,536 | 9,478 | 8,365 |
Real Estate Construction [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Residential 1st Mortgages [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 264,137 | 260,751 | 249,628 |
Residential 1st Mortgages [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 263,101 | 259,795 | 249,238 |
Residential 1st Mortgages [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 41 | 45 |
Residential 1st Mortgages [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 1,036 | 915 | 345 |
Home Equity Lines & Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 34,691 | 34,525 | 31,817 |
Home Equity Lines & Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 34,643 | 34,476 | 31,752 |
Home Equity Lines & Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Home Equity Lines & Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 48 | 49 | 65 |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 261,427 | 273,582 | 266,010 |
Agricultural [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 252,553 | 264,425 | 255,390 |
Agricultural [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 6,286 | 6,439 | 9,857 |
Agricultural [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 2,588 | 2,718 | 763 |
Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 274,682 | 265,703 | 209,184 |
Commercial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 268,745 | 260,565 | 204,792 |
Commercial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 5,460 | 4,610 | 3,638 |
Commercial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 477 | 528 | 754 |
Consumer & Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 6,685 | 6,656 | 7,119 |
Consumer & Other [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 6,565 | 6,498 | 6,965 |
Consumer & Other [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 0 | 0 | 0 |
Consumer & Other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 120 | 158 | 154 |
Leases [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 90,397 | 89,680 | 77,311 |
Leases [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 88,320 | 87,497 | 74,817 |
Leases [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | 2,077 | 2,183 | 2,494 |
Leases [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans & leases | $ 0 | $ 0 | $ 0 |
Loans & Leases and Allowance 32
Loans & Leases and Allowance for Credit Losses, Aging Analysis of Loan & Lease Portfolio by the Time Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | $ 0 | $ 0 | $ 0 |
Nonaccrual | 81 | 0 | 1,421 |
Total Past Due | 186 | 645 | 1,547 |
Current | 2,234,897 | 2,214,650 | 2,144,485 |
Total Loans & Leases | 2,235,083 | 2,215,295 | 2,146,032 |
30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 42 | 645 | 126 |
60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 63 | 0 | 0 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 698,349 | 684,961 | 676,527 |
Total Loans & Leases | 698,349 | 684,961 | 676,527 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Agricultural Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 976 |
Total Past Due | 0 | 0 | 976 |
Current | 508,400 | 499,231 | 462,669 |
Total Loans & Leases | 508,400 | 499,231 | 463,645 |
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Real Estate Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 96,315 | 100,206 | 164,791 |
Total Loans & Leases | 96,315 | 100,206 | 164,791 |
Real Estate Construction [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Real Estate Construction [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Residential 1st Mortgages [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 81 | 0 | 60 |
Total Past Due | 144 | 448 | 170 |
Current | 263,993 | 260,303 | 249,458 |
Total Loans & Leases | 264,137 | 260,751 | 249,628 |
Residential 1st Mortgages [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 14 | 448 | 110 |
Residential 1st Mortgages [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 49 | 0 | 0 |
Home Equity Lines & Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 64 |
Total Past Due | 20 | 10 | 64 |
Current | 34,671 | 34,515 | 31,753 |
Total Loans & Leases | 34,691 | 34,525 | 31,817 |
Home Equity Lines & Loans [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 20 | 10 | 0 |
Home Equity Lines & Loans [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 315 |
Total Past Due | 0 | 0 | 315 |
Current | 261,427 | 273,582 | 265,695 |
Total Loans & Leases | 261,427 | 273,582 | 266,010 |
Agricultural [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Agricultural [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Past Due | 14 | 180 | 0 |
Current | 274,668 | 265,523 | 209,184 |
Total Loans & Leases | 274,682 | 265,703 | 209,184 |
Commercial [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 180 | 0 |
Commercial [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 14 | 0 | 0 |
Consumer & Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 6 |
Total Past Due | 8 | 7 | 22 |
Current | 6,677 | 6,649 | 7,097 |
Total Loans & Leases | 6,685 | 6,656 | 7,119 |
Consumer & Other [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 8 | 7 | 16 |
Consumer & Other [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90 Days and Still Accruing | 0 | 0 | 0 |
Nonaccrual | 0 | 0 | 0 |
Total Past Due | 0 | 0 | 0 |
Current | 90,397 | 89,680 | 77,311 |
Total Loans & Leases | 90,397 | 89,680 | 77,311 |
Leases [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | 0 |
Leases [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 | $ 0 |
Loans & Leases and Allowance 33
Loans & Leases and Allowance for Credit Losses, Impaired Loans & Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
With no related allowance recorded [Abstract] | |||
Recorded Investment | $ 1,005 | $ 1,623 | $ 1,015 |
Unpaid Principal Balance | 1,107 | 1,691 | 1,116 |
Average Recorded Investment | 1,010 | 3,294 | 1,173 |
Interest Income Recognized | 10 | 4 | 22 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 5,344 | 5,824 | 5,303 |
Unpaid Principal Balance | 5,401 | 5,855 | 5,364 |
Related Allowance | 581 | 1,100 | 623 |
Average Recorded Investment | 5,325 | 4,209 | 5,655 |
Interest Income Recognized | 47 | 60 | 203 |
Total [Abstract] | |||
Recorded Investment | 6,349 | 7,447 | 6,318 |
Unpaid Principal Balance | 6,508 | 7,546 | 6,480 |
Related Allowance | 581 | 1,100 | 623 |
Average Recorded Investment | 6,335 | 7,503 | 6,828 |
Interest Income Recognized | 57 | 64 | 225 |
Commercial Real Estate [Member] | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 102 | 110 | 104 |
Unpaid Principal Balance | 102 | 110 | 104 |
Average Recorded Investment | 103 | 147 | 107 |
Interest Income Recognized | 2 | 4 | 11 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 2,955 | 3,024 | 2,973 |
Unpaid Principal Balance | 2,943 | 3,010 | 2,961 |
Related Allowance | 335 | 471 | 366 |
Average Recorded Investment | 2,964 | 1,512 | 2,999 |
Interest Income Recognized | 24 | 30 | 104 |
Total [Abstract] | |||
Related Allowance | 335 | 471 | 366 |
Agricultural Real Estate [Member] | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 976 | 0 | |
Unpaid Principal Balance | 983 | 0 | |
Average Recorded Investment | 1,141 | 488 | |
Interest Income Recognized | 0 | 0 | |
Residential 1st Mortgages [Member] | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 903 | 413 | 911 |
Unpaid Principal Balance | 1,005 | 467 | 1,012 |
Average Recorded Investment | 907 | 432 | 532 |
Interest Income Recognized | 8 | 0 | 11 |
With an allowance recorded [Abstract] | |||
Recorded Investment | 583 | 426 | 508 |
Unpaid Principal Balance | 649 | 466 | 571 |
Related Allowance | 29 | 20 | 25 |
Average Recorded Investment | 546 | 428 | 469 |
Interest Income Recognized | 7 | 5 | 16 |
Total [Abstract] | |||
Related Allowance | 29 | 20 | 25 |
Home Equity Lines & Loans [Member] | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 64 | 0 | |
Unpaid Principal Balance | 65 | 0 | |
Average Recorded Investment | 32 | 16 | |
Interest Income Recognized | 0 | 0 | |
With an allowance recorded [Abstract] | |||
Recorded Investment | 78 | 89 | 73 |
Unpaid Principal Balance | 88 | 95 | 89 |
Related Allowance | 4 | 4 | 4 |
Average Recorded Investment | 76 | 90 | 74 |
Interest Income Recognized | 1 | 1 | 3 |
Total [Abstract] | |||
Related Allowance | 4 | 4 | 4 |
Agricultural [Member] | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 60 | 0 | |
Unpaid Principal Balance | 66 | 0 | |
Average Recorded Investment | 30 | 30 | |
Interest Income Recognized | 0 | 0 | |
With an allowance recorded [Abstract] | |||
Recorded Investment | 638 | 0 | |
Unpaid Principal Balance | 639 | 0 | |
Related Allowance | 331 | 0 | |
Average Recorded Investment | 632 | 409 | |
Interest Income Recognized | 8 | 21 | |
Total [Abstract] | |||
Related Allowance | 331 | 0 | |
Commercial [Member] | |||
With no related allowance recorded [Abstract] | |||
Recorded Investment | 0 | ||
Unpaid Principal Balance | 0 | ||
Average Recorded Investment | 1,512 | ||
Interest Income Recognized | 0 | ||
With an allowance recorded [Abstract] | |||
Recorded Investment | 1,720 | 1,641 | 1,741 |
Unpaid Principal Balance | 1,713 | 1,633 | 1,734 |
Related Allowance | 205 | 268 | 220 |
Average Recorded Investment | 1,731 | 1,541 | 1,693 |
Interest Income Recognized | 15 | 16 | 59 |
Total [Abstract] | |||
Related Allowance | 205 | 268 | 220 |
Consumer & Other [Member] | |||
With an allowance recorded [Abstract] | |||
Recorded Investment | 8 | 6 | 8 |
Unpaid Principal Balance | 8 | 12 | 9 |
Related Allowance | 8 | 6 | 8 |
Average Recorded Investment | 8 | 6 | 11 |
Interest Income Recognized | 0 | 0 | 0 |
Total [Abstract] | |||
Related Allowance | $ 8 | $ 6 | $ 8 |
Loans & Leases and Allowance 34
Loans & Leases and Allowance for Credit Losses, Loans & Lease by Class Modified as Troubled Debt Restructured Loans (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | |||
Specific reserves | $ 577 | $ 844 | $ 623 |
Commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings | $ 0 | $ 0 | $ 0 |
Loans by class modified as troubled debt restructured loans [Abstract] | |||
Number of Loans | Loan | 0 | 0 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 852 | ||
Post-Modification Outstanding Recorded Investment | 808 | ||
Increase (decrease) in allowance for loan losses due to TDR | 0 | ||
TDR's charge-offs | $ 44 | ||
Number of loans modified as troubled debt restructurings with subsequent payment defaults | Loan | 0 | 0 | 0 |
Threshold period after which loan is considered to be in payment default | 90 days | ||
Stated Interest Rate Reduction [Member] | Minimum [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Period of modifications | 3 years | ||
Stated Interest Rate Reduction [Member] | Maximum [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Period of modifications | 5 years | ||
Extended Maturity [Member] | Minimum [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Period of modifications | 3 years | ||
Extended Maturity [Member] | Maximum [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Period of modifications | 10 years | ||
Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loans | $ 6,200 | $ 6,000 | $ 6,300 |
Residential 1st Mortgages [Member] | |||
Loans by class modified as troubled debt restructured loans [Abstract] | |||
Number of Loans | Loan | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 673 | ||
Post-Modification Outstanding Recorded Investment | $ 630 | ||
Home Equity Lines & Loans [Member] | |||
Loans by class modified as troubled debt restructured loans [Abstract] | |||
Number of Loans | Loan | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 32 | ||
Post-Modification Outstanding Recorded Investment | $ 32 | ||
Commercial [Member] | |||
Loans by class modified as troubled debt restructured loans [Abstract] | |||
Number of Loans | Loan | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 138 | ||
Post-Modification Outstanding Recorded Investment | $ 138 | ||
Consumer & Other [Member] | |||
Loans by class modified as troubled debt restructured loans [Abstract] | |||
Number of Loans | Loan | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 9 | ||
Post-Modification Outstanding Recorded Investment | $ 8 |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Percentage of selling costs | 10.00% | |||
Consumer mortgage loans in process of foreclosure | $ 0 | |||
Investment Securities Available-for-Sale | 495,814 | $ 481,596 | $ 452,842 | |
Gains (losses) for assets categorized as Level 3 assets | 0 | |||
Level 1 to Level 2 transfers | 0 | |||
Level 2 to Level 1 transfers | 0 | |||
Transfer into Level 3 | 0 | 0 | ||
Transfer out of Level 3 | 0 | 0 | ||
Government Agency & Government-Sponsored Entities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 3,095 | 3,128 | 3,217 | |
US Treasury Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 143,409 | 144,164 | 104,419 | |
US Govt SBA [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 27,537 | 29,380 | 34,734 | |
Mortgage Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | [1] | 318,763 | 301,914 | 309,462 |
Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 3,010 | 3,010 | 1,010 | |
Significant Unobservable Inputs (Level 3) [Member] | SBA Loans [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 2,500 | |||
Amount of increase in investment | 2,000 | |||
Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 495,814 | 481,596 | 452,842 | |
Recurring [Member] | Government Agency & Government-Sponsored Entities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 3,095 | 3,128 | 3,217 | |
Recurring [Member] | US Treasury Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 143,409 | 144,164 | 104,419 | |
Recurring [Member] | US Govt SBA [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 27,537 | 29,380 | 34,734 | |
Recurring [Member] | Mortgage Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 318,763 | 301,914 | 309,462 | |
Recurring [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 3,010 | 3,010 | 1,010 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 143,609 | 144,364 | 104,619 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Agency & Government-Sponsored Entities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Treasury Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 143,409 | 144,164 | 104,419 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | US Govt SBA [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 200 | 200 | 200 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 349,705 | 334,732 | 347,723 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Government Agency & Government-Sponsored Entities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 3,095 | 3,128 | 3,217 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | US Treasury Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | US Govt SBA [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 27,537 | 29,380 | 34,734 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 318,763 | 301,914 | 309,462 | |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 310 | 310 | 310 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 2,500 | 2,500 | 500 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Government Agency & Government-Sponsored Entities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Treasury Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Govt SBA [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Backed Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | 0 | 0 | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Securities Available-for-Sale | $ 2,500 | $ 2,500 | $ 500 | |
[1] | All Mortgage Backed Securities consist of securities collateralized by residential real estate and were issued by an agency or government sponsored entity of the U.S. government. |
Fair Value Measurements, Asse36
Fair Value Measurements, Assets or Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | $ 4,665 | $ 5,181 | $ 4,742 |
Other Real Estate | 873 | 873 | 2,152 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 5,538 | 6,054 | 6,894 |
Commercial Real Estate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 2,608 | 2,595 | 2,539 |
Residential 1st Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 475 | 997 | 389 |
Home Equity Lines and Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 74 | 75 | 82 |
Other Real Estate | 685 | ||
Agricultural [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 367 | ||
Commercial [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 1,508 | 1,514 | 1,365 |
Real Estate Construction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Real Estate | 873 | 873 | 1,467 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate | 0 | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial Real Estate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Residential 1st Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Home Equity Lines and Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Agricultural [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Construction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Real Estate | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate | 0 | 0 | 0 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Commercial Real Estate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Residential 1st Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Home Equity Lines and Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate | 0 | ||
Other Observable Inputs (Level 2) [Member] | Agricultural [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | ||
Other Observable Inputs (Level 2) [Member] | Commercial [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Other Observable Inputs (Level 2) [Member] | Real Estate Construction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Real Estate | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 4,665 | 5,181 | 4,742 |
Other Real Estate | 873 | 873 | 2,152 |
Total Assets Measured at Fair Value On a Non-Recurring Basis | 5,538 | 6,054 | 6,894 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 2,608 | 2,595 | 2,539 |
Significant Unobservable Inputs (Level 3) [Member] | Residential 1st Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 475 | 997 | 389 |
Significant Unobservable Inputs (Level 3) [Member] | Home Equity Lines and Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 74 | 75 | 82 |
Other Real Estate | 685 | ||
Significant Unobservable Inputs (Level 3) [Member] | Agricultural [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 367 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 1,508 | 1,514 | 1,365 |
Significant Unobservable Inputs (Level 3) [Member] | Real Estate Construction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Real Estate | $ 873 | $ 873 | $ 1,467 |
Fair Value Measurements, Quanti
Fair Value Measurements, Quantitative Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Impaired Loans [Member] | Commercial Real Estate [Member] | Income Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 2,608 |
Unobservable inputs | Capitalization Rate |
Impaired Loans [Member] | Commercial Real Estate [Member] | Income Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Discount rate | 3.25% |
Impaired Loans [Member] | Commercial Real Estate [Member] | Income Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Discount rate | 3.25% |
Impaired Loans [Member] | Commercial Real Estate [Member] | Income Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Discount rate | 3.25% |
Impaired Loans [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 475 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Impaired Loans [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 1.00% |
Impaired Loans [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 4.00% |
Impaired Loans [Member] | Residential 1st Mortgage [Member] | Sales Comparison Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 3.00% |
Impaired Loans [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 74 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Impaired Loans [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 1.00% |
Impaired Loans [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 2.00% |
Impaired Loans [Member] | Home Equity Lines and Loans [Member] | Sales Comparison Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 1.00% |
Impaired Loans [Member] | Commercial [Member] | Income Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 1,508 |
Unobservable inputs | Capitalization Rate |
Impaired Loans [Member] | Commercial [Member] | Income Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Discount rate | 2.95% |
Impaired Loans [Member] | Commercial [Member] | Income Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Discount rate | 8.70% |
Impaired Loans [Member] | Commercial [Member] | Income Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Discount rate | 3.40% |
Other Real Estate [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | |
Quantitative Information [Abstract] | |
Fair value | $ 873 |
Unobservable inputs | Adjustment for Difference Between Comparable Sales |
Other Real Estate [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | Minimum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 10.00% |
Other Real Estate [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | Maximum [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 10.00% |
Other Real Estate [Member] | Real Estate Construction [Member] | Sales Comparison Approach [Member] | Weighted Average [Member] | |
Quantitative Information [Abstract] | |
Adjustment for difference between comparable sales | 10.00% |
Fair Value of Financial Instr38
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Assets [Abstract] | |||
Investment Securities Available-for-Sale | $ 495,814 | $ 481,596 | $ 452,842 |
Investment Securities Held-to-Maturity | 53,745 | 55,236 | 57,673 |
Carrying Amount [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 134,984 | 187,149 | 164,512 |
Investment Securities Available-for-Sale | 495,814 | 481,596 | 452,842 |
Investment Securities Held-to-Maturity | 53,527 | 54,460 | 57,281 |
FHLB Stock | 10,342 | 10,342 | 8,872 |
Loans & Leases, Net of Deferred Fees & Allowance | 2,184,406 | 2,164,953 | 2,097,632 |
Accrued Interest Receivable | 9,237 | 10,999 | 7,962 |
Liabilities [Abstract] | |||
Deposits | 2,701,405 | 2,723,228 | 2,607,613 |
Subordinated Debentures | 10,310 | 10,310 | 10,310 |
Accrued Interest Payable | 909 | 1,137 | 882 |
Estimated Fair Value [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 134,984 | 187,149 | 164,512 |
Investment Securities Available-for-Sale | 495,814 | 481,596 | 452,842 |
Investment Securities Held-to-Maturity | 53,745 | 55,236 | 57,673 |
Loans & Leases, Net of Deferred Fees & Allowance | 2,152,504 | 2,137,987 | 2,076,248 |
Accrued Interest Receivable | 9,237 | 10,999 | 7,962 |
Liabilities [Abstract] | |||
Deposits | 2,697,488 | 2,720,502 | 2,605,780 |
Subordinated Debentures | 7,751 | 7,428 | 6,581 |
Accrued Interest Payable | 909 | 1,137 | 882 |
Estimated Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 134,984 | 187,149 | 164,512 |
Investment Securities Available-for-Sale | 143,609 | 29,580 | 104,619 |
Investment Securities Held-to-Maturity | 0 | 0 | 0 |
Loans & Leases, Net of Deferred Fees & Allowance | 0 | 0 | 0 |
Accrued Interest Receivable | 0 | 0 | 0 |
Liabilities [Abstract] | |||
Deposits | 2,218,642 | 2,247,831 | 2,017,969 |
Subordinated Debentures | 0 | 0 | 0 |
Accrued Interest Payable | 0 | 0 | 0 |
Estimated Fair Value [Member] | Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Investment Securities Available-for-Sale | 349,705 | 449,516 | 347,723 |
Investment Securities Held-to-Maturity | 37,028 | 38,492 | 39,991 |
Loans & Leases, Net of Deferred Fees & Allowance | 0 | 0 | 0 |
Accrued Interest Receivable | 9,237 | 10,999 | 7,962 |
Liabilities [Abstract] | |||
Deposits | 478,846 | 472,671 | 587,811 |
Subordinated Debentures | 7,751 | 7,428 | 6,581 |
Accrued Interest Payable | 909 | 1,137 | 882 |
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Investment Securities Available-for-Sale | 2,500 | 2,500 | 500 |
Investment Securities Held-to-Maturity | 16,717 | 16,744 | 17,682 |
Loans & Leases, Net of Deferred Fees & Allowance | 2,152,504 | 2,137,987 | 2,076,248 |
Accrued Interest Receivable | 0 | 0 | 0 |
Liabilities [Abstract] | |||
Deposits | 0 | 0 | 0 |
Subordinated Debentures | 0 | 0 | 0 |
Accrued Interest Payable | $ 0 | $ 0 | $ 0 |
Dividends and Basic Earnings 39
Dividends and Basic Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Dividends [Abstract] | ||
Cash dividends declared per share of common stock (in dollars per share) | $ 0 | $ 0 |
Earnings per share for the period [Abstract] | ||
Net Income | $ 9,941 | $ 7,821 |
Weighted Average Number of Common Shares Outstanding (in shares) | 812,304 | 807,986 |
Basic Earnings Per Common Share Amount (in dollars per share) | $ 12.24 | $ 9.68 |
Pending Acquisition of Bank o40
Pending Acquisition of Bank of Rio Vista (Details) - Bank of Rio Vista [Member] $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($)shares | Mar. 31, 2018USD ($)shares | Sep. 30, 2018USD ($)shares | |
Business Acquisition [Line Items] | |||
Total ownership of shares (in shares) | shares | 1,586 | ||
Percentage of ownership of common shares outstanding | 39.65% | ||
Total price paid for common shares | $ 12,000 | ||
Increase in recorded investment | $ 124 | ||
Forecast [Member] | |||
Business Acquisition [Line Items] | |||
Total ownership of shares (in shares) | shares | 2,414 | 2,414 | |
Percentage of ownership of common shares outstanding | 60.35% | 60.35% | |
Total price paid for common shares | $ 28,700 | $ 40,700 | |
Multiple of minimum book value to be delivered at close | 1.42 |
Recent Accounting Pronounceme41
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Corporate income tax rate | 21.00% | |
ASU 2018-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net reclassification between AOCI and retained earnings | $ 144 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | May 10, 2018$ / sharesshares |
Subsequent Event [Line Items] | |
Shares issued to defined benefit plan (in shares) | shares | 8,769 |
Share price of shares issued (in dollars per share) | $ / shares | $ 635 |