Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 333-236022 | |
Entity Registrant Name | BANCPLUS CORPORATION | |
Entity Incorporation, State or Country Code | MS | |
Entity Tax Identification Number | 64-0655312 | |
Entity Address, Address Line One | 1068 Highland Colony Parkway | |
Entity Address, City or Town | Ridgeland | |
Entity Address, State or Province | MS | |
Entity Address, Postal Zip Code | 39157 | |
City Area Code | 601 | |
Local Phone Number | 898-8300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,109,012 | |
Entity Central Index Key | 0001118004 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and due from banks | $ 71,459 | $ 45,475 |
Interest bearing deposits with banks | 221,026 | 267,497 |
Federal funds sold | 55,129 | 0 |
Total cash and cash equivalents | 347,614 | 312,972 |
Securities available for sale | 274,323 | 201,073 |
Securities held to maturity - fair value: $107,069 - 2020; $179,225 - 2019 | 106,767 | 177,854 |
Loans held for sale | 16,312 | 16,092 |
Loans | 2,094,112 | 2,078,997 |
Less: Allowance for loan losses | 21,170 | 21,500 |
Net loans | 2,072,942 | 2,057,497 |
Premises and equipment | 74,645 | 75,072 |
Operating lease right-of-use assets | 38,413 | 39,194 |
Accrued interest receivable | 12,125 | 11,509 |
Goodwill | 2,616 | 2,616 |
Other assets | 87,055 | 85,185 |
Total assets | 3,032,812 | 2,979,064 |
Liabilities: | ||
Deposits | 2,639,004 | 2,592,065 |
Advances from Federal Home Loan Bank and other borrowings | 36,709 | 37,652 |
Subordinated debentures payable to statutory trusts | 41,238 | 41,238 |
Operating lease liabilities | 42,939 | 43,578 |
Accrued interest payable | 1,068 | 1,083 |
Other liabilities | 10,022 | 11,937 |
Total liabilities | 2,770,980 | 2,727,553 |
Common Stock, par value $1.00 per share. | ||
40,000,000 authorized at March 31, 2020 and December 31, 2019; 7,655,185 and 7,652,957 issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 7,655 | 7,653 |
Unearned Employee Stock Ownership Plan compensation | (4,184) | (4,476) |
Additional paid-in capital | 1,182 | 811 |
Retained earnings | 252,264 | 247,241 |
Accumulated other comprehensive income, net | 4,915 | 282 |
Stockholders' equity before redeemable common stock owned by employee stock ownership plan | 261,832 | 251,511 |
Total shareholders' equity | 182,102 | 172,203 |
Liabilities and equity | 3,032,812 | 2,979,064 |
Employee Stock Ownership Plan | ||
Liabilities: | ||
Redeemable common stock owned by the ESOP | 79,730 | 79,308 |
Common Stock, par value $1.00 per share. | ||
Less: Redeemable common stock owned by the ESOP | $ 79,730 | $ 79,308 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Fair value | $ 107,069 | $ 179,225 |
Common stock, par value per share (USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares, issued (in shares) | 7,655,185 | 7,652,957 |
Common stock outstanding (in shares) | 7,655,185 | 7,652,957 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Interest and fees on loans | $ 26,907 | $ 27,478 |
Taxable securities | 1,330 | 1,257 |
Tax-exempt securities | 763 | 948 |
Interest bearing bank balances and other | 1,112 | 781 |
Total interest income | 30,112 | 30,464 |
Interest expense: | ||
Deposits | 4,252 | 4,226 |
Short-term borrowings | 2 | 0 |
Advances from Federal Home Loan Bank | 80 | 81 |
Other borrowings | 483 | 621 |
Total interest expense | 4,817 | 4,928 |
Net interest income | 25,295 | 25,536 |
Provision for loan losses | 185 | 288 |
Net interest income after provision for loan losses | 25,110 | 25,248 |
Other operating income: | ||
Service charges on deposit accounts | 6,530 | 6,614 |
Mortgage origination income | 1,259 | 747 |
Debit card interchange | 1,447 | 1,575 |
Securities gains, net | 37 | 0 |
Other income | 4,927 | 4,482 |
Total other operating income | 14,200 | 13,418 |
Other operating expenses: | ||
Salaries and employee benefits | 17,615 | 15,947 |
Net occupancy expenses | 2,863 | 2,738 |
Furniture, equipment and data processing expenses | 4,231 | 3,434 |
Other expenses | 5,052 | 4,669 |
Total other operating expenses | 29,761 | 26,788 |
Income before income taxes | 9,549 | 11,878 |
Income tax expense | 1,873 | 2,141 |
Net income | $ 7,676 | $ 9,737 |
Basic earnings per common shares (in USD per share) | $ 1.01 | $ 1.29 |
Diluted earnings per common shares (in USD per share) | $ 1 | $ 1.28 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 7,676 | $ 9,737 |
Other comprehensive income, net of tax: | ||
Change in unrealized gains on securities available for sale | 6,169 | 411 |
Tax effect | 1,536 | 102 |
Total other comprehensive income, net of tax | 4,633 | 309 |
Comprehensive income | $ 12,309 | $ 10,046 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) | Total | Cumulative effect, period of adoption, adjustment | Common Stock | Common StockClass A | Common StockClass B | Unearned ESOP Compensation | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative effect, period of adoption, adjustment | Accumulated Other Comprehensive Income (Loss) | Less: Redeemable Common Stock Owned by the ESOP |
Impact of adoption of ASU 2016-02 related to leases | $ 159,555,000 | $ 7,477,000 | $ 115,000 | $ (2,962,000) | $ 180,000 | $ 225,723,000 | $ (471,000) | $ (70,507,000) | |||
Impact of adoption of ASU 2016-02 related to leases | ASU 2016-02 | $ (5,240,000) | $ (5,240,000) | |||||||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2018 | 7,476,989 | 115,005 | |||||||||
Shareholders' equity, beginning balance at Dec. 31, 2018 | 159,555,000 | $ 7,477,000 | $ 115,000 | (2,962,000) | 180,000 | 225,723,000 | (471,000) | (70,507,000) | |||
Shareholders' equity, beginning balance (ASU 2016-02) at Dec. 31, 2018 | (5,240,000) | (5,240,000) | |||||||||
Net income | 9,737,000 | 9,737,000 | |||||||||
Impact of adoption of ASU 2016-02 related to leases | 156,625,000 | $ 7,617,000 | $ 7,477,000 | $ 115,000 | (2,716,000) | 207,000 | 227,815,000 | (162,000) | (76,136,000) | ||
Impact of adoption of ASU 2016-02 related to leases | ASU 2016-02 | $ (5,240,000) | $ (5,240,000) | |||||||||
Conversion of class A and B common stock to common stock (in shares) | 7,591,994 | (7,476,989) | (115,005) | ||||||||
Conversion of Class A and B Common Stock to Common Stock | $ 7,592,000 | $ (7,477,000) | $ (115,000) | ||||||||
Other comprehensive income, net | 309,000 | 309,000 | |||||||||
Issuance of restricted stock (in shares) | 25,981 | ||||||||||
Issuance of restricted stock | $ 26,000 | (26,000) | |||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (917) | ||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (46,000) | $ (1,000) | (45,000) | ||||||||
Stock based compensation | 98,000 | 98,000 | |||||||||
Net change fair value of ESOP shares | (5,629,000) | (5,629,000) | |||||||||
Common stock released by ESOP | 246,000 | 246,000 | |||||||||
Dividends declared | (2,405,000) | (2,405,000) | |||||||||
Shares outstanding, ending balance (in shares) at Mar. 31, 2019 | 7,617,058 | ||||||||||
Shareholders' equity, ending balance at Mar. 31, 2019 | 156,625,000 | $ 7,617,000 | (2,716,000) | 207,000 | 227,815,000 | (162,000) | (76,136,000) | ||||
Impact of adoption of ASU 2016-02 related to leases | 156,625,000 | 7,617,000 | (2,716,000) | 207,000 | 227,815,000 | (162,000) | (76,136,000) | ||||
Impact of adoption of ASU 2016-02 related to leases | 172,203,000 | $ 7,653,000 | (4,476,000) | 811,000 | 247,241,000 | 282,000 | 79,308,000 | ||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2019 | 7,652,957 | ||||||||||
Shareholders' equity, beginning balance at Dec. 31, 2019 | 172,203,000 | $ 7,653,000 | (4,476,000) | 811,000 | 247,241,000 | 282,000 | 79,308,000 | ||||
Net income | 7,676,000 | 7,676,000 | |||||||||
Impact of adoption of ASU 2016-02 related to leases | 172,203,000 | $ 7,655,000 | (4,184,000) | 1,182,000 | 252,264,000 | 4,915,000 | 79,730,000 | ||||
Other comprehensive income, net | 4,633,000 | 4,633,000 | |||||||||
Issuance of restricted stock (in shares) | 2,500 | ||||||||||
Issuance of restricted stock | $ 2,000 | (2,000) | |||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (272) | ||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (10,000) | (10,000) | |||||||||
Stock based compensation | 383,000 | 383,000 | |||||||||
Net change fair value of ESOP shares | (422,000) | (422,000) | |||||||||
Common stock released by ESOP | 292,000 | 292,000 | |||||||||
Dividends declared | (2,653,000) | (2,653,000) | |||||||||
Shares outstanding, ending balance (in shares) at Mar. 31, 2020 | 7,655,185 | ||||||||||
Shareholders' equity, ending balance at Mar. 31, 2020 | 182,102,000 | $ 7,655,000 | (4,184,000) | 1,182,000 | 252,264,000 | 4,915,000 | 79,730,000 | ||||
Impact of adoption of ASU 2016-02 related to leases | $ 182,102,000 | $ 7,655,000 | $ (4,184,000) | $ 1,182,000 | $ 252,264,000 | $ 4,915,000 | $ 79,730,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in USD per share) | $ 0.35 | $ 0.32 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income per condensed consolidated statements of income | $ 7,676 | $ 9,737 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 185 | 288 |
Depreciation and amortization | 1,303 | 1,349 |
Net (gain) loss on sales of premises and equipment | (4) | 9 |
Net (gain) loss on sales of other real estate owned | (121) | 241 |
Write-downs of other real estate | 80 | 0 |
Deferred income tax (benefit) expense | (1,126) | 3,138 |
Federal Home Loan Bank stock dividends | (14) | (33) |
Common stock released by ESOP | 292 | 246 |
Stock based compensation expense | 383 | 98 |
Origination of loans held for sale | (59,354) | (32,780) |
Proceeds from loans held for sale | 59,134 | 34,280 |
Earnings on bank-owned life insurance | (395) | (406) |
Net change in: | ||
Accrued interest receivable and other assets | (1,639) | (1,999) |
Accrued interest payable and other liabilities | (1,706) | (3,178) |
Net cash from operating activities | 4,694 | 10,990 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (44,603) | (23,354) |
Maturities and calls of securities available for sale | 45,976 | 10,087 |
Purchases of securities held to maturity | 0 | (12,815) |
Maturities, prepayments and calls of securities held to maturity | 2,130 | 33,281 |
Net increase in loans | (16,761) | (27,536) |
Purchases of premises and equipment | (912) | (2,113) |
Proceeds from sales of premises and equipment | 30 | 0 |
Proceeds from sales of other real estate owned | 832 | 6,748 |
Investment in unconsolidated entities, net | (77) | (28) |
Net cash used in investing activities | (13,385) | (15,730) |
Net increase (decrease) in: | ||
Noninterest-bearing deposits | 29,452 | 25,096 |
Money market, NOW and savings deposits | 15,389 | 119,504 |
Certificates of deposit | 2,098 | (13,646) |
Payments on long-term FHLB advances | (68) | (72) |
Payments on other borrowings | (875) | (875) |
Cash dividends paid on common stock | (2,653) | (2,405) |
Shares withheld to pay taxes on restricted stock vesting | (10) | (46) |
Net cash from financing activities | 43,333 | 127,556 |
Net change in cash and cash equivalents | 34,642 | 122,816 |
Cash and cash equivalents at beginning of period | 312,972 | 145,197 |
Cash and cash equivalents at end of period | 347,614 | 268,013 |
Supplemental cash flow information: | ||
Interest paid | 4,832 | 5,053 |
Acquisition of real estate in non-cash foreclosures | $ 1,131 | $ 874 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation BancPlus Corporation (the “Company”) is a bank holding company headquartered in Ridgeland, Mississippi operating in one reportable segment, financial services operations. BankPlus (the “Bank”), the principal operating subsidiary and sole banking subsidiary of the Company, is a commercial bank primarily engaged in the business of commercial and consumer banking. In addition to general and consumer banking, other products and services offered though the Bank’s subsidiaries include certain insurance and annuity services, asset and investment management, financial planning and wellness related services. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2019; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting polices followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Particularly given the effects of the COVID-19 pandemic, the allowance for loan losses, provision for loan losses and the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for loan losses, provision for loan losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates. Recently Adopted Accounting Standards Accounting Standards Update 2019-04 (“ASU 2019-04”), “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” In April 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-04 clarifies that the reclassification of a debt security from held-to-maturity (“HTM”) to available-for-sale (“AFS”) under the transition guidance in Accounting Standards Update 2017-12, “Targeted Improvements to Accounting for Hedging Activities” would not (1) call into question the classification of other HTM securities, (2) be required to actually designate any reclassified security in a last-of-layer hedge, or (3) be restricted from selling any reclassified security. As part of the transition of ASU 2019-04, entities may reclassify securities that would qualify for designation as the hedged item in a last-of-layer hedging relationship from HTM to AFS; however, entities that already made such a reclassification upon their adoption of ASU 2017-12 are precluded from reclassifying additional securities. The Company did not reclassify any securities from HTM to AFS upon adoption of ASU 2017-12. ASU 2019-04 became effective as of the beginning of the first annual period after its issuance, which for the Company was January 1, 2020. See Note 3 Investment Securities for more information regarding the impact of the transfer of certain HTM debt securities to AFS. Recently Issued But Not Yet Effective Accounting Standards Accounting Standards Update 2016-13 (“ASU 2016-13”), “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” In June 2016, the FASB issued ASU 2016-13 which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 was originally effective for the Company for annual and interim periods beginning on January 1, 2021. Subsequently, FASB approved a deferral of the effective date. ASU 2016-13 will now be effective for the Company for annual and interim periods beginning on January 1, 2023. The Company has formed a cross functional team that is assessing data and system needs and evaluating the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the Company adopts the new |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted number of common shares outstanding during the period and the number of common shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. (In thousands except per share data) March 31, 2020 March 31, 2019 Net income $ 7,676 $ 9,737 Weighted average common shares outstanding 7,576 7,519 Diluted effect of unallocated stock 79 76 Diluted common shares 7,655 7,595 Basic earnings per common share $ 1.01 $ 1.29 Diluted earnings per common share $ 1.00 $ 1.28 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The following is a summary of the amortized cost and fair value of securities available for sale. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value March 31, 2020: U.S. Government agency obligations $ 5,000 $ 188 $ — $ 5,188 Residential mortgage-backed securities 202,315 5,511 23 207,803 Commercial mortgage-backed securities 11,321 77 — 11,398 Corporate investments 4,000 — 15 3,985 State and political subdivisions 45,142 968 161 45,949 Total available for sale $ 267,778 $ 6,744 $ 199 $ 274,323 December 31, 2019: U.S. Government agency obligations $ 17,999 $ 104 $ 1 $ 18,102 Residential mortgage-backed securities 175,696 693 510 175,879 Commercial mortgage-backed securities 3,002 8 — 3,010 Corporate investments 4,000 82 — 4,082 Total available for sale $ 200,697 $ 887 $ 511 $ 201,073 The following is a summary of the amortized cost and fair value of securities held to maturity. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value March 31, 2020: States and political subdivisions $ 106,767 $ 315 $ 13 $ 107,069 Total held to maturity $ 106,767 $ 315 $ 13 $ 107,069 December 31, 2019: U.S. Government agency obligations $ 5,000 $ 3 $ — $ 5,003 Residential mortgage-backed securities 1,071 41 — 1,112 States and political subdivisions 171,783 1,339 12 173,110 Total held to maturity $ 177,854 $ 1,383 $ 12 $ 179,225 All mortgage-backed securities in the above tables were issued or guaranteed by U.S. government agencies or sponsored agencies. In the first quarter of 2020, the Company elected to reclassify certain prepayable debt securities from held to maturity to available for sale. Prepayable debt securities with a carrying value of $66.5 million were transferred from held-to-maturity to available for sale. The reclassified securities primarily consisted of states and political subdivisions. Provided below is a summary of investment securities that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position. Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) March 31, 2020: Available for sale: Residential mortgage-backed securities $ 2,449 $ 23 $ — $ — 2,449 $ 23 Corporate investments 3,985 15 — — 3,985 15 States and political subdivisions 3,955 161 — — 3,955 161 $ 10,389 $ 199 $ — $ — 10,389 $ 199 Held to maturity: States and political subdivisions $ 4,444 $ 13 $ — $ — $ 4,444 $ 13 December 31, 2019: Available for sale: U. S. Government agency obligations $ — $ — $ 4,999 $ 1 4,999 $ 1 Residential mortgage-backed securities 92,323 466 2,240 44 94,563 $ 510 $ 92,323 $ 466 $ 7,239 $ 45 99,562 $ 511 Held to maturity: States and political subdivisions $ 2,656 $ 8 $ 2,766 $ 4 $ 5,422 $ 12 The number of debt securities in an unrealized loss position decreased from 36 at December 31, 2019 to 17 at March 31, 2020. The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than temporarily impaired at March 31, 2020. The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay certain obligations with, or without, call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value March 31, 2020: One year or less $ 3,739 $ 3,762 $ 15,048 $ 15,063 After one through five years 19,566 19,838 47,264 47,334 After five through ten years 38,016 38,831 40,910 41,127 After ten years 206,457 211,892 3,545 3,545 $ 267,778 $ 274,323 $ 106,767 $ 107,069 The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value March 31, 2020 $ 242,676 $ 248,826 $ 58,694 $ 58,988 December 31, 2019 $ 124,854 $ 125,103 $ 123,978 $ 125,241 |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans | Loans The following is a summary of the Company’s loan portfolio by loan class. (In thousands) March 31, 2020 December 31, 2019 Secured by real estate: Residential properties $ 549,410 $ 555,413 Construction and land development 234,793 230,931 Farmland 158,344 162,991 Other commercial 686,657 664,145 Total real estate 1,629,204 1,613,480 Commercial and industrial loans 332,216 333,834 Agricultural production and other loans to farmers 73,146 70,145 Consumer and other loans 59,546 61,538 Total loans before allowance for loan losses $ 2,094,112 $ 2,078,997 Loans are stated at the amount of unpaid principal, before allowance for loan losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding. Loan Origination/Risk Management/Credit Concentration - The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within the State of Mississippi. The risk characteristics of the Company’s material portfolio segments are as follows: Residential Real Estate Loans - The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial Real Estate Loans - Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans. Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Farm loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values. Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Commercial and Industrial Loans - The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Consumer and other - The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower. The following table presents the recorded investment in nonaccrual loans, segregated by class. (In thousands) March 31, 2020 December 31, 2019 Secured by real estate: Residential properties $ 2,292 $ 2,419 Construction and land development 390 390 Farmland — — Other commercial 8,193 9,034 Total real estate 10,875 11,843 Commercial and industrial loans 41 67 Agricultural production and other loans to farmers 62 62 Consumer and other loans 184 187 Total nonaccrual loans $ 11,162 $ 12,159 An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows: (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Past Due 90 Days or More and Accruing March 31, 2020 Secured by real estate: Residential properties $ 7,810 $ 1,887 $ 9,697 $ 539,713 $ 549,410 $ 1,479 Construction and land development 559 2,028 2,587 232,206 234,793 1,638 Farmland 357 295 652 157,692 158,344 295 Other commercial 4,214 411 4,625 682,032 686,657 334 Total real estate 12,940 4,621 17,561 1,611,643 1,629,204 3,746 Commercial and industrial loans 533 140 673 331,543 332,216 139 Agricultural production and other loans to farmers 265 15 280 72,866 73,146 15 Consumer loans 688 34 722 58,824 59,546 34 Total $ 14,426 $ 4,810 $ 19,236 $ 2,074,876 $ 2,094,112 $ 3,934 (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Past Due 90 Days or More and Accruing December 31, 2019 Secured by real estate: Residential properties $ 6,262 $ 2,610 $ 8,872 $ 546,541 $ 555,413 $ 1,745 Construction and land development 688 — 688 230,243 230,931 — Farmland 253 149 402 162,589 162,991 149 Other commercial 1,227 724 1,951 662,194 664,145 418 Total real estate 8,430 3,483 11,913 1,601,567 1,613,480 2,312 Commercial and industrial loans 375 255 630 333,204 333,834 235 Agricultural production and other loans to farmers 400 20 420 69,725 70,145 20 Consumer loans 795 51 846 60,692 61,538 51 Total $ 10,000 $ 3,809 $ 13,809 $ 2,065,188 $ 2,078,997 $ 2,618 Impaired Loans - Impaired loans include nonperforming loans, loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties, and certain other loans identified by management. Certain other loans identified by management consist of performing loans with specific allocations of the allowance for loan loss. Impaired loans or portions thereof, are charged-off when deemed uncollectible. The principal, recorded balance, and related allowance on impaired loans while classified as impaired at March 31, 2020 and December 31, 2019, were as follows: March 31, 2020 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 4,701 $ 3,650 $ — Construction and land development 3,919 2,009 — Farmland 10,619 10,563 — Other commercial 2,798 1,249 — Total real estate 22,037 17,471 — Commercial and industrial 356 41 — Agricultural production and other loans to farmers 75 62 — Consumer and other loans 211 183 — Total $ 22,679 $ 17,757 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,123 $ 1,123 $ 14 Construction and land development — — — Farmland — — — Other commercial 9,653 9,475 3,332 Total real estate 10,776 10,598 3,346 Commercial and industrial 423 423 34 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total $ 11,199 $ 11,021 $ 3,380 Total impaired loans $ 33,878 $ 28,778 $ 3,380 December 31, 2019 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 4,789 $ 3,789 $ — Construction and land development 3,919 2,009 — Farmland 10,993 10,937 — Other commercial 3,893 2,400 — Total real estate 23,594 19,135 — Commercial and industrial 384 67 — Agricultural production and other loans to farmers 75 62 — Consumer and other loans 211 187 — Total $ 24,264 $ 19,451 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,127 $ 1,127 $ 11 Construction and land development — — — Farmland — — — Other commercial 10,114 10,076 3,325 Total real estate 11,241 11,203 3,336 Commercial and industrial 427 427 34 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total 11,668 11,630 3,370 Total impaired loans $ 35,932 $ 31,081 $ 3,370 (1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied. The average recorded investment and interest recognized for impaired loans for the three months ended March 31, 2020 and 2019 are presented below. March 31, 2020 March 31, 2019 Average Interest Average Interest (In thousands) Investment Recognized Investment Recognized Secured by real estate: Residential properties $ 4,773 $ 38 $ 4,548 $ 37 Construction and land development 2,009 35 2,414 55 Farmland 10,563 129 390 — Other commercial 10,724 58 12,427 70 Total real estate 28,069 260 19,779 162 Commercial and industrial 464 8 693 7 Agricultural production and other loans to farmers 62 — 85 — Consumer loans 183 — — — Total $ 28,778 $ 268 $ 20,557 $ 169 There were no modifications classified as TDRs for the three months ended March 31, 2020 or 2019. Although there were additional modifications of terms on some loans, the prevailing modifications during the reported periods were related to converting the loans to interest only for a period of time, reductions in the interest rates, and/or extensions of payment dates or maturity dates. Because the majority of these loans were classified as impaired loans before restructuring, the modifications did not materially impact the Company’s determination of the allowance for loan losses. The Company did not forgive any principal on the above loans. The allowance for loan losses attributable to restructured loans was $3.2 million and $3.3 million at March 31, 2020 and December 31, 2019, respectively. The Company defines a payment default as a payment received more than 90 days after its due date. |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Loan Losses As management evaluates the allowance for loan losses, it is categorized as follows: (1) specific allocations; (2) allocations for classified assets with no specific allowance, based on historical loan experience for similar loans with similar characteristics, adjusted as necessary, to reflect the impact of current conditions; and (3) general allocations for each major loan category for loans not deemed impaired or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including, regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects. Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows • Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong. • Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans. • Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short- term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. • Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection may be inadequate, guarantor support may be virtually non-existent, and management is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected. • Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. • Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future. Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered impaired, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for loan impairment testing or (ii) the loan was tested for impairment, but not deemed to be impaired. The following table summarizes the credit quality of the Company’s loan portfolio by loan class for the period indicated: Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total March 31, 2020 Secured by real estate: Residential properties $ 533,911 $ 177 $ 15,322 $ — $ 549,410 Construction and land development 233,483 403 907 — 234,793 Farmland 147,142 — 11,202 — 158,344 Other commercial 670,355 — 16,080 222 686,657 Total real estate 1,584,891 580 43,511 222 1,629,204 Commercial and industrial 330,078 95 1,995 48 332,216 Agricultural production and other loans to farmers 72,679 91 376 — 73,146 Consumer and other loans 59,213 — 333 — 59,546 Total $ 2,046,861 $ 766 $ 46,215 $ 270 $ 2,094,112 Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total December 31, 2019 Secured by real estate: Residential properties $ 540,933 $ 177 $ 14,303 $ — $ 555,413 Construction and land development 229,933 388 610 — 230,931 Farmland 151,354 — 11,637 — 162,991 Other commercial 645,891 — 18,254 — 664,145 Total real estate 1,568,111 565 44,804 — 1,613,480 Commercial and industrial 331,693 — 2,060 81 333,834 Agricultural production and other loans to farmers 69,854 — 291 — 70,145 Consumer and other loans 61,220 — 318 — 61,538 Total $ 2,030,878 $ 565 $ 47,473 $ 81 $ 2,078,997 Transactions in the allowance for loan losses and balances in the loan portfolio by loan segment are as follows: (In thousands) Commercial Commercial Residential Consumer Unallocated Total Three Months Ended March 31, 2020 Allowance for loan losses: Balance, beginning of year $ 2,773 $ 10,766 $ 5,568 $ 1,135 $ 1,258 $ 21,500 Provision for loan losses 7 385 (67) 288 (428) 185 Recoveries on loans 87 34 56 943 — 1,120 Loans charged off (82) (217) (151) (1,185) — (1,635) Ending balance $ 2,785 $ 10,968 $ 5,406 $ 1,181 $ 830 $ 21,170 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 34 $ 3,332 $ 14 $ — $ — $ 3,380 Collectively evaluated for impairment 2,751 7,636 5,392 1,181 830 17,790 Ending balance $ 2,785 $ 10,968 $ 5,406 $ 1,181 $ 830 $ 21,170 (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Unallocated Total Three Months Ended March 31, 2019 Allowance for loan losses: Balance, beginning of year $ 3,203 $ 12,920 $ 5,358 $ 1,134 $ 1,885 $ 24,500 Provision for loan losses 216 (1,057) 879 472 (222) 288 Recoveries on loans 16 262 46 958 — 1,282 Loans charged off (63) (32) (475) (1,272) — (1,842) Ending balance $ 3,372 $ 12,093 $ 5,808 $ 1,292 $ 1,663 $ 24,228 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 30 $ 4,248 $ 10 $ — $ — $ 4,288 Collectively evaluated for impairment 3,342 7,845 5,798 1,292 1,663 19,940 Ending balance $ 3,372 $ 12,093 $ 5,808 $ 1,292 $ 1,663 $ 24,228 The following table provides the recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented: (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Total March 31, 2020 Individually evaluated for impairment $ 464 $ 23,296 $ 4,773 $ 245 $ 28,778 Collectively evaluated for impairment 331,752 1,056,498 544,637 132,447 2,065,334 Ending balance $ 332,216 $ 1,079,794 $ 549,410 $ 132,692 $ 2,094,112 December 31, 2019 Individually evaluated for impairment $ 494 $ 25,422 $ 4,916 $ 249 $ 31,081 Collectively evaluated for impairment 333,340 1,032,645 550,497 131,434 2,047,916 Ending balance $ 333,834 $ 1,058,067 $ 555,413 $ 131,683 $ 2,078,997 |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2020 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Regulatory Matters The Company (on a consolidated basis) and Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Basel III Capital Rules (“Basel III”) became effective for the Company and Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule and fully phased in by January 1, 2019. Under the Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk based capital ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk-weighted capital ratios. If, after deducting the buffer amount from its Common Equity Tier 1 capital (“CET1”), Tier 1 capital, and Total capital, any of these amounts results in a risk-based capital ratio below the minimum, a banking institution will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The capital conservation buffer, which was 2.50% at March 31, 2020 and December 31, 2019, is included in the minimum capital requirements relative to risk-weighted assets in the following table. Management believes as of March 31, 2020 and December 31, 2019, the Company and Bank met capital adequacy requirements to which they are subject. As of March 31, 2020, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. The prompt corrective action framework applies only to insured depository institutions, such as the Bank, and not to their holding companies, such as the Company. To be categorized as well capitalized, an insured depository institution must maintain certain ratios of CET1 capital, Tier 1 capital and Total capital to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets. There are no conditions or events since that notification that management believes have changed the Bank's category. The amounts of the Bank’s capital relative to the standards for well capitalized status are set forth in the following table. The Company’s and the Bank’s CET1 capital includes total common equity reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. In connection with the adoption of Basel III, the Company elected to opt out of the requirement to include most components of accumulated other comprehensive income (loss) in CET1 capital. Tier 1 capital includes CET1 capital and additional Tier 1 capital. For the Company, additional Tier 1 capital at March 31, 2020 and December 31, 2019 included $40.0 million of trust preferred securities issued by the Trusts (net of investment in the Trusts). The Bank did not have any additional Tier 1 capital beyond CET1 as of March 31, 2020 and December 31, 2019. Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital for both the Company and the Bank includes a permissible portion of the allowance for loan losses. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under Basel III. The following table presents actual and required capital ratios for the Company and the Bank under the Basel III rules. Actual Minimum requirement Required to be (In thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio March 31, 2020: Company: CET1 Capital to Risk-Weighted Assets $ 253,944 10.99 % $ 161,718 7.00 % n/a n/a Tier 1 Capital to Risk-Weighted Assets 293,944 12.72 % 196,372 8.50 % n/a n/a Total Capital to Risk-Weighted Assets 315,115 13.64 % 242,577 10.50 % n/a n/a Tier 1 Capital to Average Assets 293,944 9.60 % 122,487 4.00 % n/a n/a Bank: CET1 Capital to Risk-Weighted Assets $ 288,640 12.53 % $ 161,227 7.00 % $ 149,711 6.50 % Tier 1 Capital to Risk-Weighted Assets 288,640 12.53 % 195,776 8.50 % 184,260 8.00 % Total Capital to Risk-Weighted Assets 309,811 13.45 % 241,841 10.50 % 230,325 10.00 % Tier 1 Capital to Average Assets 288,640 9.44 % 122,274 4.00 % 152,842 5.00 % December 31, 2019: Company: CET1 Capital to Risk-Weighted Assets $ 248,247 10.86 % $ 160,002 7.00 % n/a n/a Tier 1 Capital to Risk-Weighted Assets 288,247 12.61 % 194,288 8.50 % n/a n/a Total Capital to Risk-Weighted Assets 309,747 13.55 % 240,003 10.50 % n/a n/a Tier 1 Capital to Average Assets 288,247 9.74 % 118,373 4.00 % n/a n/a Bank: CET1 Capital to Risk-Weighted Assets $ 284,513 12.49 % $ 159,469 7.00 % $ 148,078 6.50 % Tier 1 Capital to Risk-Weighted Assets 284,513 12.49 % 193,641 8.50 % 182,250 8.00 % Total Capital to Risk-Weighted Assets 306,013 13.43 % 239,203 10.50 % 227,813 10.00 % Tier 1 Capital to Average Assets 284,513 9.63 % 118,134 4.00 % 147,668 5.00 % The ability of the Company to pay future dividends, pay its expenses and retire its debt is dependent upon future income tax benefits and dividends paid to the Company by the Bank. The Bank is subject to dividend restrictions as imposed by Federal and state regulatory authorities. These restrictions are not anticipated to have a material effect on the ability of the Bank to pay dividends to the Company. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Financial Instruments Measured at Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities 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. There were no transfers of financial instruments between fair value levels for any period presented. The Company used the following methods and significant assumptions to estimate fair value. Securities - The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of March 31, 2020 or December 31, 2019. The Company’s treasury department and Asset Liability Management Committee (“ALCO”) review the aggregate fair values of the securities portfolio. Impaired loans - Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment on a nonrecurring basis. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for impaired loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral dependent. Impaired loans are primarily collateral dependent loans and are assessed using a fair value approach. Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Bank’s Appraisal Review Department to ensure they are acceptable. Impaired loans are classified within Level 3 of the fair value hierarchy. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. Other Real Estate Owned - Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal of the collateral value. Subsequent to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Appraisal Department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral impaired loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future. Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 March 31, 2020 U.S. Government agency obligations $ 5,188 $ — $ 5,188 $ — Residential mortgage-backed securities 207,803 — 207,803 — Commercial mortgage-backed securities 11,398 — 11,398 — Corporate investments 3,985 — 3,985 — State and political subdivisions 45,949 — 45,949 — Total securities available for sale $ 274,323 $ — $ 274,323 $ — December 31, 2019 U.S. Government agency obligations $ 18,102 $ — $ 18,102 $ — Residential mortgage-backed securities 175,879 — 175,879 — Commercial mortgage-backed securities 3,010 — 3,010 — Corporate investments 4,082 — 4,082 — Total securities available for sale $ 201,073 $ — $ 201,073 $ — Assets measured at fair value on a non-recurring basis are summarized below. Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 Impaired loans, net of allowance for loan losses: March 31, 2020 $ 25,398 $ — $ — $ 25,398 December 31, 2019 $ 27,711 $ — $ — $ 27,711 Other real estate owned: March 31, 2020 $ 5,191 $ — $ — $ 5,191 December 31, 2019 $ 4,851 $ — $ — $ 4,851 The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis. Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range March 31, 2020 Impaired loans, net of specific allowance $ 25,398 Third-party appraisals Selling costs 5% - 10% Internal evaluations of real estate, accounts receivable and inventory Discount of book value 15% - 50% Other real estate owned $ 5,191 Third-party appraisals Selling costs 5% - 10% Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range December 31, 2019 Impaired loans, net of specific allowance $ 27,711 Third-party appraisals Selling costs 5% - 10% Internal evaluations of real estate, accounts receivable and inventory Discount of book value 15% - 50% Other real estate owned $ 4,851 Third-party appraisals Selling costs 5% - 10% Fair Value of Financial Instruments Generally accepted accounting principles require disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, that are not measured and reported at fair value on a recurring or non-recurring basis. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions significantly affect the estimates and, as such, the derived fair value may not be indicative of the value negotiated in an actual sale and may not be comparable to that reported by other financial institutions. In addition, the fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates The following table presents estimated fair values of the Company’s financial instruments not previously disclosed: March 31, 2020 December 31, 2019 (In thousands) Carrying Fair Carrying Fair Financial assets: Level 1 inputs: Cash and cash equivalents $ 347,614 $ 347,614 $ 312,972 $ 312,972 Level 2 inputs: Securities held to maturity 106,767 107,069 177,854 179,225 Federal Home Loan Bank stock 2,598 2,598 2,585 2,585 Accrued interest receivable 12,125 12,125 11,509 11,509 Level 3 inputs: Loans held for sale 16,312 16,312 16,092 16,092 Loans, net 2,072,942 2,073,761 2,057,497 2,050,169 Financial liabilities: Level 2 inputs: Deposits 2,639,004 2,638,611 2,592,065 2,593,910 Federal Home Loan Bank and other borrowings 36,709 37,696 37,652 37,298 Subordinated debentures 41,238 41,238 41,238 41,238 Accrued interest payable 1,068 1,068 1,083 1,083 |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Company has an Employee Stock Ownership Plan (“ESOP”) that covers all employees of the Bank who are at least 21 years of age and work in a position requiring at least one thousand hours of service annually. The plan also has 401(k) provisions that allow for employee tax deferred contributions. Participants may make contributions to the ESOP in accordance with applicable regulations and the ESOP’s provisions. The Company makes a 3% “safe harbor” matching contribution, plus an additional matching contribution equal to 50% of the next 2% of an employee’s salary deferral contributions in excess of 3%. Additional contributions are made to the ESOP at the discretion of the Company’s Board of Directors. The ESOP owned 1,434,625 shares of the Company's common stock at March 31, 2020 and December 31, 2019. The ESOP entered into loans, collateralized by ESOP shares, with the Company in connection with the repurchase of shares of Company stock that were sold by participants in accordance with diversification provisions of the ESOP. A total of 176,786 shares were repurchased through 2011, an additional 77,000 shares were repurchased under this program in 2012, and 27,594 shares were repurchased under this program in 2019. These unallocated shares are released to participants proportionately as the loan is repaid. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Dividends on unallocated shares that are used to repay the loan are treated as compensation expense. The following table presents information related to the Company’s ESOP-owned shares. (In thousands, except share data) March 31, 2020 December 31, 2019 Allocated shares 1,362,906 1,355,699 Unearned shares 71,719 78,926 Total ESOP shares 1,434,625 1,434,625 Fair value of unearned shares $ 4,196 $ 4,617 Distributions of the ESOP may be either in cash or Company common stock. The allocated shares are subject to a put option, whereby the Company will provide a market for a specified period of time for shares distributed to participants. The put price is the appraised value of the stock. The fair value of shares of common stock held by the ESOP are deducted from permanent shareholders’ equity in the consolidated balance sheets and reflected in a line item below liabilities and above shareholders’ equity. This presentation is necessary in order to recognize the put option within the ESOP-owned shares, consistent with SEC guidelines, that is present as long as the Company is not publicly traded. The Company uses a valuation by an external third-party to determine the maximum possible cash obligation related to these securities. Increases or decreases in the value of the cash obligation are included in a separate line item in the consolidated statement of changes shareholders’ equity. The fair value of shares held by the ESOP at March 31, 2020 and December 31, 2019 was $79.7 million and $79.3 million, respectively, based on our previously disclosed appraised value of $58.50 per share of common stock. As previously disclosed, this appraised value was determined solely for purposes of the ESOP’s administration and is therefore subject to certain limitations, qualifications and assumptions and may not reflect the fair value of the Company’s common stock and should not be relied on for any reason. In particular, the COVID-19 pandemic has had a significant impact on the trading markets for equity securities, including, in particular, the value of equity securities of banking institutions. Neither the Company nor the ESOP has any obligation to seek an adjusted valuation, to use this appraised value for any other purpose or, if the Company or the ESOP obtains a new appraised value, to disclose such new appraised value. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | EquityIn March 2019, the Company’s Board of Directors amended its Articles of Incorporation to reclassify the existing Class A Voting Common Stock and Class B Nonvoting Common Stock into a single class of $1.00 Par Value per Share Common Stock. This reclassification had no effect on share count or total shareholders’ equity. Additionally, in March 2019, the Company’s Board of Directors authorized 10,000,000 shares of preferred stock with no par value, which may be issued from time to time and in one or more classes or series upon authorization of the Board. At March 31, 2020 and December 31, 2019, there were zero shares of preferred stock issued and outstanding. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based CompensationUnder the Company’s long-term incentive program, executive officers are eligible to receive equity-based awards under the 2019 Long-Term Incentive Plan (“LTIP”). During the three months ended March 31, 2020, restricted stock awards (“RSA”) were granted under the LTIP for 2,500 shares of common stock. RSAs granted under the LTIP generally vest over two Stock based compensation that has been charged against income was $383,000 for the three months ended March 31, 2020 and $98,000 for same period of 2019. There were no forfeitures during this period. As of March 31, 2020, there was $2.8 million of total unrecognized compensation cost related to nonvested RSAs. The cost is expected to be recognized over a remaining weighted average period of 2.8 years. A summary of our equity-based award activity and related information for our RSAs is as follows: Three Months Ended March 31, 2020 March 31, 2019 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Beginning of period 69,093 $ 53.67 12,693 $ 53.00 Granted 2,500 57.00 27,944 50.00 Vested (16,283) 50.78 (5,480) 53.00 Forfeited — — — — End of period 55,310 $ 54.68 35,157 $ 54.68 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Merger with State Capital Corp. (“SCC”) On April 1, 2020, the Company completed its previously announced merger with SCC, the holding company of State Bank & Trust Company ("State Bank"). Pursuant to the terms of the Agreement and Plan of Share Exchange and Merger, dated September 18, 2019, by and among the Company, BankPlus, SCC, and State Bank (the "Merger Agreement"), following BancPlus' acquisition of SCC by a statutory share exchange, SCC was merged with and into BancPlus, with BancPlus surviving the merger (the "Merger"). Immediately thereafter, State Bank was merged with and into BankPlus, with BankPlus surviving the merger. As a result of the merger, the Company’s geographic footprint expanded in Mississippi, Louisiana and Alabama providing access to new markets and deposits. Pursuant to the Merger Agreement, holders of SCC common stock received 0.6950 shares of BancPlus common stock, par value $1.00 per share, for each share of SCC common stock, par value $1.25 per share, held immediately prior to the effective time of the Merger, plus cash in lieu of fractional shares. BancPlus issued 2,453,827 shares of common stock to holders of SCC common stock, in addition to approximately $13,000 in lieu of fractional shares. In the first quarter of 2020, we incurred approximately $540,000 of acquisition expenses. These expense are recorded in noninterest expense in the Company’s Condensed Consoldiated Statement of Income for the three months ended March 31, 2020. At the time of this filing, final valuations of the assets acquired and liabilities assumed were not complete. Impact of COVID-19 In response to the economic impact of the COVID-19 pandemic, on March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. It contains substantial lending, tax and spending provisions, including the Paycheck Protection Program, a nearly $350 billion program designed to aid small and medium-sized businesses through federally guaranteed loans distributed through banks. These loans are intended to guarantee eight weeks of payroll and other costs to help those businesses remain viable and allow their workers to pay their bills. On April 24, 2020, Congress enacted the Paycheck Protection Program and Healthcare Enhancement Act to, among other things, increase the available funding by $320 billion to a new total of $670 billion. As of May 1, 2020, including legacy SCC customers, we had obtained approvals for approximately 3,316 loans for customers under the Paycheck Protection Program totaling approximately $293.4 million in approved loans from which we expect additional fee income of approximately $10 million. The CARES Act also provides certain measures to support individuals and businesses in maintaining solvency through monetary relief, including in the form of financing, loan forgiveness and automatic forbearance. As of March 31, 2020, we had granted temporary modifications on approximately 778 loans totaling approximately $281 million, or 13% of total loans, primarily secured by commercial real estate multi-tenant office buildings and major flag hotels. Through May 1, 2020, including legacy SCC customers, we have granted approximately 2,427 temporary loan modifications, totaling approximately $835 million, or 26% of total loans, primarily secured by commercial real estate multi-tenant office buildings and 1-4 family residences. Economic uncertainties have arisen which may negatively effect the financial position, results of operations and cash flows of the Company. The duration of these uncertainties and ultimate financial effects cannot be reasonably estimated at this time. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The unaudited interim condensed consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2019; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting polices followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. |
Basis of accounting | The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Particularly given the effects of the COVID-19 pandemic, the allowance for loan losses, provision for loan losses and the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for loan losses, provision for loan losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates. |
Recently Adopted Accounting Standards and Recently Issued But Not Yet Effective Accounting Standards | Recently Issued But Not Yet Effective Accounting Standards Accounting Standards Update 2016-13 (“ASU 2016-13”), “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” In June 2016, the FASB issued ASU 2016-13 which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 was originally effective for the Company for annual and interim periods beginning on January 1, 2021. Subsequently, FASB approved a deferral of the effective date. ASU 2016-13 will now be effective for the Company for annual and interim periods beginning on January 1, 2023. The Company has formed a cross functional team that is assessing data and system needs and evaluating the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the Company adopts the new standard, but has not yet determined the magnitude of any such one-time adjustments or the overall impact on the Company’s consolidated financial statements. Accounting Standards Update 2020-04 (“ASU 2020-04”), “Reference Rate Reform - Topic 848.” In March 2020, the FASB issued ASU 2020-04 which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications, hedge accounting, and other transactions affected that reference LIBOR or another reference rate expected to be discontinued. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The company is still evaluating the impact of ASU 2020-04, but does not expect it to have a material impact on the Company’s consolidated financial statements. |
Loans | Loans are stated at the amount of unpaid principal, before allowance for loan losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding. Loan Origination/Risk Management/Credit Concentration - The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within the State of Mississippi. The risk characteristics of the Company’s material portfolio segments are as follows: Residential Real Estate Loans - The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial Real Estate Loans - Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans. Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Farm loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values. Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Commercial and Industrial Loans - The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Consumer and other - The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower. As management evaluates the allowance for loan losses, it is categorized as follows: (1) specific allocations; (2) allocations for classified assets with no specific allowance, based on historical loan experience for similar loans with similar characteristics, adjusted as necessary, to reflect the impact of current conditions; and (3) general allocations for each major loan category for loans not deemed impaired or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including, regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects. Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows • Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong. • Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans. • Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short- term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. • Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection may be inadequate, guarantor support may be virtually non-existent, and management is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected. • Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. • Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future. Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered impaired, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for loan impairment testing or (ii) the loan was tested for impairment, but not deemed to be impaired. |
Financial Instruments Measured at Fair Value | Financial Instruments Measured at Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities 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. There were no transfers of financial instruments between fair value levels for any period presented. The Company used the following methods and significant assumptions to estimate fair value. Securities - The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of March 31, 2020 or December 31, 2019. The Company’s treasury department and Asset Liability Management Committee (“ALCO”) review the aggregate fair values of the securities portfolio. Impaired loans - Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment on a nonrecurring basis. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for impaired loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral dependent. Impaired loans are primarily collateral dependent loans and are assessed using a fair value approach. Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Bank’s Appraisal Review Department to ensure they are acceptable. Impaired loans are classified within Level 3 of the fair value hierarchy. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. Other Real Estate Owned - Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal of the collateral value. Subsequent to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Appraisal Department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral impaired loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (In thousands except per share data) March 31, 2020 March 31, 2019 Net income $ 7,676 $ 9,737 Weighted average common shares outstanding 7,576 7,519 Diluted effect of unallocated stock 79 76 Diluted common shares 7,655 7,595 Basic earnings per common share $ 1.01 $ 1.29 Diluted earnings per common share $ 1.00 $ 1.28 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the amortized cost and fair value of securities available for sale | The following is a summary of the amortized cost and fair value of securities available for sale. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value March 31, 2020: U.S. Government agency obligations $ 5,000 $ 188 $ — $ 5,188 Residential mortgage-backed securities 202,315 5,511 23 207,803 Commercial mortgage-backed securities 11,321 77 — 11,398 Corporate investments 4,000 — 15 3,985 State and political subdivisions 45,142 968 161 45,949 Total available for sale $ 267,778 $ 6,744 $ 199 $ 274,323 December 31, 2019: U.S. Government agency obligations $ 17,999 $ 104 $ 1 $ 18,102 Residential mortgage-backed securities 175,696 693 510 175,879 Commercial mortgage-backed securities 3,002 8 — 3,010 Corporate investments 4,000 82 — 4,082 Total available for sale $ 200,697 $ 887 $ 511 $ 201,073 |
Summary of the amortized cost and fair value of securities held to maturity | The following is a summary of the amortized cost and fair value of securities held to maturity. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value March 31, 2020: States and political subdivisions $ 106,767 $ 315 $ 13 $ 107,069 Total held to maturity $ 106,767 $ 315 $ 13 $ 107,069 December 31, 2019: U.S. Government agency obligations $ 5,000 $ 3 $ — $ 5,003 Residential mortgage-backed securities 1,071 41 — 1,112 States and political subdivisions 171,783 1,339 12 173,110 Total held to maturity $ 177,854 $ 1,383 $ 12 $ 179,225 |
Summary of investment securities that were in an unrealized loss position | Provided below is a summary of investment securities that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position. Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) March 31, 2020: Available for sale: Residential mortgage-backed securities $ 2,449 $ 23 $ — $ — 2,449 $ 23 Corporate investments 3,985 15 — — 3,985 15 States and political subdivisions 3,955 161 — — 3,955 161 $ 10,389 $ 199 $ — $ — 10,389 $ 199 Held to maturity: States and political subdivisions $ 4,444 $ 13 $ — $ — $ 4,444 $ 13 December 31, 2019: Available for sale: U. S. Government agency obligations $ — $ — $ 4,999 $ 1 4,999 $ 1 Residential mortgage-backed securities 92,323 466 2,240 44 94,563 $ 510 $ 92,323 $ 466 $ 7,239 $ 45 99,562 $ 511 Held to maturity: States and political subdivisions $ 2,656 $ 8 $ 2,766 $ 4 $ 5,422 $ 12 |
Schedule of investments classified by contractual maturity date | Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value March 31, 2020: One year or less $ 3,739 $ 3,762 $ 15,048 $ 15,063 After one through five years 19,566 19,838 47,264 47,334 After five through ten years 38,016 38,831 40,910 41,127 After ten years 206,457 211,892 3,545 3,545 $ 267,778 $ 274,323 $ 106,767 $ 107,069 |
Summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes | The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value March 31, 2020 $ 242,676 $ 248,826 $ 58,694 $ 58,988 December 31, 2019 $ 124,854 $ 125,103 $ 123,978 $ 125,241 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of the Company’s loan portfolio by loan class | The following is a summary of the Company’s loan portfolio by loan class. (In thousands) March 31, 2020 December 31, 2019 Secured by real estate: Residential properties $ 549,410 $ 555,413 Construction and land development 234,793 230,931 Farmland 158,344 162,991 Other commercial 686,657 664,145 Total real estate 1,629,204 1,613,480 Commercial and industrial loans 332,216 333,834 Agricultural production and other loans to farmers 73,146 70,145 Consumer and other loans 59,546 61,538 Total loans before allowance for loan losses $ 2,094,112 $ 2,078,997 |
Summary of the recorded investment in non-accrual loans, segregated by class | The following table presents the recorded investment in nonaccrual loans, segregated by class. (In thousands) March 31, 2020 December 31, 2019 Secured by real estate: Residential properties $ 2,292 $ 2,419 Construction and land development 390 390 Farmland — — Other commercial 8,193 9,034 Total real estate 10,875 11,843 Commercial and industrial loans 41 67 Agricultural production and other loans to farmers 62 62 Consumer and other loans 184 187 Total nonaccrual loans $ 11,162 $ 12,159 |
Summary of age analysis of past due loans | An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows: (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Past Due 90 Days or More and Accruing March 31, 2020 Secured by real estate: Residential properties $ 7,810 $ 1,887 $ 9,697 $ 539,713 $ 549,410 $ 1,479 Construction and land development 559 2,028 2,587 232,206 234,793 1,638 Farmland 357 295 652 157,692 158,344 295 Other commercial 4,214 411 4,625 682,032 686,657 334 Total real estate 12,940 4,621 17,561 1,611,643 1,629,204 3,746 Commercial and industrial loans 533 140 673 331,543 332,216 139 Agricultural production and other loans to farmers 265 15 280 72,866 73,146 15 Consumer loans 688 34 722 58,824 59,546 34 Total $ 14,426 $ 4,810 $ 19,236 $ 2,074,876 $ 2,094,112 $ 3,934 (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Past Due 90 Days or More and Accruing December 31, 2019 Secured by real estate: Residential properties $ 6,262 $ 2,610 $ 8,872 $ 546,541 $ 555,413 $ 1,745 Construction and land development 688 — 688 230,243 230,931 — Farmland 253 149 402 162,589 162,991 149 Other commercial 1,227 724 1,951 662,194 664,145 418 Total real estate 8,430 3,483 11,913 1,601,567 1,613,480 2,312 Commercial and industrial loans 375 255 630 333,204 333,834 235 Agricultural production and other loans to farmers 400 20 420 69,725 70,145 20 Consumer loans 795 51 846 60,692 61,538 51 Total $ 10,000 $ 3,809 $ 13,809 $ 2,065,188 $ 2,078,997 $ 2,618 |
Summary of impaired loans | The principal, recorded balance, and related allowance on impaired loans while classified as impaired at March 31, 2020 and December 31, 2019, were as follows: March 31, 2020 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 4,701 $ 3,650 $ — Construction and land development 3,919 2,009 — Farmland 10,619 10,563 — Other commercial 2,798 1,249 — Total real estate 22,037 17,471 — Commercial and industrial 356 41 — Agricultural production and other loans to farmers 75 62 — Consumer and other loans 211 183 — Total $ 22,679 $ 17,757 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,123 $ 1,123 $ 14 Construction and land development — — — Farmland — — — Other commercial 9,653 9,475 3,332 Total real estate 10,776 10,598 3,346 Commercial and industrial 423 423 34 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total $ 11,199 $ 11,021 $ 3,380 Total impaired loans $ 33,878 $ 28,778 $ 3,380 December 31, 2019 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 4,789 $ 3,789 $ — Construction and land development 3,919 2,009 — Farmland 10,993 10,937 — Other commercial 3,893 2,400 — Total real estate 23,594 19,135 — Commercial and industrial 384 67 — Agricultural production and other loans to farmers 75 62 — Consumer and other loans 211 187 — Total $ 24,264 $ 19,451 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,127 $ 1,127 $ 11 Construction and land development — — — Farmland — — — Other commercial 10,114 10,076 3,325 Total real estate 11,241 11,203 3,336 Commercial and industrial 427 427 34 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total 11,668 11,630 3,370 Total impaired loans $ 35,932 $ 31,081 $ 3,370 (1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied. The average recorded investment and interest recognized for impaired loans for the three months ended March 31, 2020 and 2019 are presented below. March 31, 2020 March 31, 2019 Average Interest Average Interest (In thousands) Investment Recognized Investment Recognized Secured by real estate: Residential properties $ 4,773 $ 38 $ 4,548 $ 37 Construction and land development 2,009 35 2,414 55 Farmland 10,563 129 390 — Other commercial 10,724 58 12,427 70 Total real estate 28,069 260 19,779 162 Commercial and industrial 464 8 693 7 Agricultural production and other loans to farmers 62 — 85 — Consumer loans 183 — — — Total $ 28,778 $ 268 $ 20,557 $ 169 (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Total March 31, 2020 Individually evaluated for impairment $ 464 $ 23,296 $ 4,773 $ 245 $ 28,778 Collectively evaluated for impairment 331,752 1,056,498 544,637 132,447 2,065,334 Ending balance $ 332,216 $ 1,079,794 $ 549,410 $ 132,692 $ 2,094,112 December 31, 2019 Individually evaluated for impairment $ 494 $ 25,422 $ 4,916 $ 249 $ 31,081 Collectively evaluated for impairment 333,340 1,032,645 550,497 131,434 2,047,916 Ending balance $ 333,834 $ 1,058,067 $ 555,413 $ 131,683 $ 2,078,997 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of the credit quality of the Company’s loan portfolio by loan class | The following table summarizes the credit quality of the Company’s loan portfolio by loan class for the period indicated: Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total March 31, 2020 Secured by real estate: Residential properties $ 533,911 $ 177 $ 15,322 $ — $ 549,410 Construction and land development 233,483 403 907 — 234,793 Farmland 147,142 — 11,202 — 158,344 Other commercial 670,355 — 16,080 222 686,657 Total real estate 1,584,891 580 43,511 222 1,629,204 Commercial and industrial 330,078 95 1,995 48 332,216 Agricultural production and other loans to farmers 72,679 91 376 — 73,146 Consumer and other loans 59,213 — 333 — 59,546 Total $ 2,046,861 $ 766 $ 46,215 $ 270 $ 2,094,112 Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total December 31, 2019 Secured by real estate: Residential properties $ 540,933 $ 177 $ 14,303 $ — $ 555,413 Construction and land development 229,933 388 610 — 230,931 Farmland 151,354 — 11,637 — 162,991 Other commercial 645,891 — 18,254 — 664,145 Total real estate 1,568,111 565 44,804 — 1,613,480 Commercial and industrial 331,693 — 2,060 81 333,834 Agricultural production and other loans to farmers 69,854 — 291 — 70,145 Consumer and other loans 61,220 — 318 — 61,538 Total $ 2,030,878 $ 565 $ 47,473 $ 81 $ 2,078,997 |
Summary of allowance for loan losses and balances in the loan portfolio by loan segment | Transactions in the allowance for loan losses and balances in the loan portfolio by loan segment are as follows: (In thousands) Commercial Commercial Residential Consumer Unallocated Total Three Months Ended March 31, 2020 Allowance for loan losses: Balance, beginning of year $ 2,773 $ 10,766 $ 5,568 $ 1,135 $ 1,258 $ 21,500 Provision for loan losses 7 385 (67) 288 (428) 185 Recoveries on loans 87 34 56 943 — 1,120 Loans charged off (82) (217) (151) (1,185) — (1,635) Ending balance $ 2,785 $ 10,968 $ 5,406 $ 1,181 $ 830 $ 21,170 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 34 $ 3,332 $ 14 $ — $ — $ 3,380 Collectively evaluated for impairment 2,751 7,636 5,392 1,181 830 17,790 Ending balance $ 2,785 $ 10,968 $ 5,406 $ 1,181 $ 830 $ 21,170 (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Unallocated Total Three Months Ended March 31, 2019 Allowance for loan losses: Balance, beginning of year $ 3,203 $ 12,920 $ 5,358 $ 1,134 $ 1,885 $ 24,500 Provision for loan losses 216 (1,057) 879 472 (222) 288 Recoveries on loans 16 262 46 958 — 1,282 Loans charged off (63) (32) (475) (1,272) — (1,842) Ending balance $ 3,372 $ 12,093 $ 5,808 $ 1,292 $ 1,663 $ 24,228 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 30 $ 4,248 $ 10 $ — $ — $ 4,288 Collectively evaluated for impairment 3,342 7,845 5,798 1,292 1,663 19,940 Ending balance $ 3,372 $ 12,093 $ 5,808 $ 1,292 $ 1,663 $ 24,228 |
Summary of impaired loans | The principal, recorded balance, and related allowance on impaired loans while classified as impaired at March 31, 2020 and December 31, 2019, were as follows: March 31, 2020 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 4,701 $ 3,650 $ — Construction and land development 3,919 2,009 — Farmland 10,619 10,563 — Other commercial 2,798 1,249 — Total real estate 22,037 17,471 — Commercial and industrial 356 41 — Agricultural production and other loans to farmers 75 62 — Consumer and other loans 211 183 — Total $ 22,679 $ 17,757 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,123 $ 1,123 $ 14 Construction and land development — — — Farmland — — — Other commercial 9,653 9,475 3,332 Total real estate 10,776 10,598 3,346 Commercial and industrial 423 423 34 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total $ 11,199 $ 11,021 $ 3,380 Total impaired loans $ 33,878 $ 28,778 $ 3,380 December 31, 2019 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 4,789 $ 3,789 $ — Construction and land development 3,919 2,009 — Farmland 10,993 10,937 — Other commercial 3,893 2,400 — Total real estate 23,594 19,135 — Commercial and industrial 384 67 — Agricultural production and other loans to farmers 75 62 — Consumer and other loans 211 187 — Total $ 24,264 $ 19,451 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,127 $ 1,127 $ 11 Construction and land development — — — Farmland — — — Other commercial 10,114 10,076 3,325 Total real estate 11,241 11,203 3,336 Commercial and industrial 427 427 34 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total 11,668 11,630 3,370 Total impaired loans $ 35,932 $ 31,081 $ 3,370 (1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied. The average recorded investment and interest recognized for impaired loans for the three months ended March 31, 2020 and 2019 are presented below. March 31, 2020 March 31, 2019 Average Interest Average Interest (In thousands) Investment Recognized Investment Recognized Secured by real estate: Residential properties $ 4,773 $ 38 $ 4,548 $ 37 Construction and land development 2,009 35 2,414 55 Farmland 10,563 129 390 — Other commercial 10,724 58 12,427 70 Total real estate 28,069 260 19,779 162 Commercial and industrial 464 8 693 7 Agricultural production and other loans to farmers 62 — 85 — Consumer loans 183 — — — Total $ 28,778 $ 268 $ 20,557 $ 169 (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Total March 31, 2020 Individually evaluated for impairment $ 464 $ 23,296 $ 4,773 $ 245 $ 28,778 Collectively evaluated for impairment 331,752 1,056,498 544,637 132,447 2,065,334 Ending balance $ 332,216 $ 1,079,794 $ 549,410 $ 132,692 $ 2,094,112 December 31, 2019 Individually evaluated for impairment $ 494 $ 25,422 $ 4,916 $ 249 $ 31,081 Collectively evaluated for impairment 333,340 1,032,645 550,497 131,434 2,047,916 Ending balance $ 333,834 $ 1,058,067 $ 555,413 $ 131,683 $ 2,078,997 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Regulatory Matters [Abstract] | |
Schedule of actual and required capital ratios | The following table presents actual and required capital ratios for the Company and the Bank under the Basel III rules. Actual Minimum requirement Required to be (In thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio March 31, 2020: Company: CET1 Capital to Risk-Weighted Assets $ 253,944 10.99 % $ 161,718 7.00 % n/a n/a Tier 1 Capital to Risk-Weighted Assets 293,944 12.72 % 196,372 8.50 % n/a n/a Total Capital to Risk-Weighted Assets 315,115 13.64 % 242,577 10.50 % n/a n/a Tier 1 Capital to Average Assets 293,944 9.60 % 122,487 4.00 % n/a n/a Bank: CET1 Capital to Risk-Weighted Assets $ 288,640 12.53 % $ 161,227 7.00 % $ 149,711 6.50 % Tier 1 Capital to Risk-Weighted Assets 288,640 12.53 % 195,776 8.50 % 184,260 8.00 % Total Capital to Risk-Weighted Assets 309,811 13.45 % 241,841 10.50 % 230,325 10.00 % Tier 1 Capital to Average Assets 288,640 9.44 % 122,274 4.00 % 152,842 5.00 % December 31, 2019: Company: CET1 Capital to Risk-Weighted Assets $ 248,247 10.86 % $ 160,002 7.00 % n/a n/a Tier 1 Capital to Risk-Weighted Assets 288,247 12.61 % 194,288 8.50 % n/a n/a Total Capital to Risk-Weighted Assets 309,747 13.55 % 240,003 10.50 % n/a n/a Tier 1 Capital to Average Assets 288,247 9.74 % 118,373 4.00 % n/a n/a Bank: CET1 Capital to Risk-Weighted Assets $ 284,513 12.49 % $ 159,469 7.00 % $ 148,078 6.50 % Tier 1 Capital to Risk-Weighted Assets 284,513 12.49 % 193,641 8.50 % 182,250 8.00 % Total Capital to Risk-Weighted Assets 306,013 13.43 % 239,203 10.50 % 227,813 10.00 % Tier 1 Capital to Average Assets 284,513 9.63 % 118,134 4.00 % 147,668 5.00 % |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule assets and liabilities measured on recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 March 31, 2020 U.S. Government agency obligations $ 5,188 $ — $ 5,188 $ — Residential mortgage-backed securities 207,803 — 207,803 — Commercial mortgage-backed securities 11,398 — 11,398 — Corporate investments 3,985 — 3,985 — State and political subdivisions 45,949 — 45,949 — Total securities available for sale $ 274,323 $ — $ 274,323 $ — December 31, 2019 U.S. Government agency obligations $ 18,102 $ — $ 18,102 $ — Residential mortgage-backed securities 175,879 — 175,879 — Commercial mortgage-backed securities 3,010 — 3,010 — Corporate investments 4,082 — 4,082 — Total securities available for sale $ 201,073 $ — $ 201,073 $ — |
Schedule of assets measured at fair value on a non-recurring basis | Assets measured at fair value on a non-recurring basis are summarized below. Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 Impaired loans, net of allowance for loan losses: March 31, 2020 $ 25,398 $ — $ — $ 25,398 December 31, 2019 $ 27,711 $ — $ — $ 27,711 Other real estate owned: March 31, 2020 $ 5,191 $ — $ — $ 5,191 December 31, 2019 $ 4,851 $ — $ — $ 4,851 |
Schedule of quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis | The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis. Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range March 31, 2020 Impaired loans, net of specific allowance $ 25,398 Third-party appraisals Selling costs 5% - 10% Internal evaluations of real estate, accounts receivable and inventory Discount of book value 15% - 50% Other real estate owned $ 5,191 Third-party appraisals Selling costs 5% - 10% Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range December 31, 2019 Impaired loans, net of specific allowance $ 27,711 Third-party appraisals Selling costs 5% - 10% Internal evaluations of real estate, accounts receivable and inventory Discount of book value 15% - 50% Other real estate owned $ 4,851 Third-party appraisals Selling costs 5% - 10% |
Schedule of estimated fair values of the Company’s financial instruments not previously disclosed | The following table presents estimated fair values of the Company’s financial instruments not previously disclosed: March 31, 2020 December 31, 2019 (In thousands) Carrying Fair Carrying Fair Financial assets: Level 1 inputs: Cash and cash equivalents $ 347,614 $ 347,614 $ 312,972 $ 312,972 Level 2 inputs: Securities held to maturity 106,767 107,069 177,854 179,225 Federal Home Loan Bank stock 2,598 2,598 2,585 2,585 Accrued interest receivable 12,125 12,125 11,509 11,509 Level 3 inputs: Loans held for sale 16,312 16,312 16,092 16,092 Loans, net 2,072,942 2,073,761 2,057,497 2,050,169 Financial liabilities: Level 2 inputs: Deposits 2,639,004 2,638,611 2,592,065 2,593,910 Federal Home Loan Bank and other borrowings 36,709 37,696 37,652 37,298 Subordinated debentures 41,238 41,238 41,238 41,238 Accrued interest payable 1,068 1,068 1,083 1,083 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Schedule of ESOP-owned shares | The following table presents information related to the Company’s ESOP-owned shares. (In thousands, except share data) March 31, 2020 December 31, 2019 Allocated shares 1,362,906 1,355,699 Unearned shares 71,719 78,926 Total ESOP shares 1,434,625 1,434,625 Fair value of unearned shares $ 4,196 $ 4,617 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | A summary of our equity-based award activity and related information for our RSAs is as follows: Three Months Ended March 31, 2020 March 31, 2019 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Beginning of period 69,093 $ 53.67 12,693 $ 53.00 Granted 2,500 57.00 27,944 50.00 Vested (16,283) 50.78 (5,480) 53.00 Forfeited — — — — End of period 55,310 $ 54.68 35,157 $ 54.68 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 7,676 | $ 9,737 |
Weighted average common shares outstanding (in shares) | 7,576,000 | 7,519,000 |
Diluted effect of unallocated stock (in shares) | 79,000 | 76,000 |
Diluted common shares (in shares) | 7,655,000 | 7,595,000 |
Basic earnings per common shares (in USD per share) | $ 1.01 | $ 1.29 |
Diluted earnings per common shares (in USD per share) | $ 1 | $ 1.28 |
Investment Securities - Summary
Investment Securities - Summary of amortized cost and fair value of the securities available for sale (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 267,778 | $ 200,697 |
Gross unrealized gain | 6,744 | 887 |
Gross unrealized loss | 199 | 511 |
Fair value | 274,323 | 201,073 |
U.S. Government agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 5,000 | 17,999 |
Gross unrealized gain | 188 | 104 |
Gross unrealized loss | 0 | 1 |
Fair value | 5,188 | 18,102 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 202,315 | 175,696 |
Gross unrealized gain | 5,511 | 693 |
Gross unrealized loss | 23 | 510 |
Fair value | 207,803 | 175,879 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 11,321 | 3,002 |
Gross unrealized gain | 77 | 8 |
Gross unrealized loss | 0 | 0 |
Fair value | 11,398 | 3,010 |
Corporate investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 4,000 | 4,000 |
Gross unrealized gain | 0 | 82 |
Gross unrealized loss | 15 | 0 |
Fair value | 3,985 | $ 4,082 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 45,142 | |
Gross unrealized gain | 968 | |
Gross unrealized loss | 161 | |
Fair value | $ 45,949 |
Investment Securities - Summa_2
Investment Securities - Summary of amortized cost and fair value of securities held to maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | $ 106,767 | $ 177,854 |
Gross unrealized gains | 315 | 1,383 |
Gross unrealized losses | 13 | 12 |
Fair value | 107,069 | 179,225 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 106,767 | 171,783 |
Gross unrealized gains | 315 | 1,339 |
Gross unrealized losses | 13 | 12 |
Fair value | $ 107,069 | 173,110 |
U.S. Government agency obligations | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 5,000 | |
Gross unrealized gains | 3 | |
Gross unrealized losses | 0 | |
Fair value | 5,003 | |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 1,071 | |
Gross unrealized gains | 41 | |
Gross unrealized losses | 0 | |
Fair value | $ 1,112 |
Investment Securities - Summa_3
Investment Securities - Summary of investment securities that were in an unrealized loss position (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Fair value, less than 12 months | $ 10,389 | $ 92,323 |
Unrealized losses, less than 12 months | 199 | 466 |
Fair value, 12 months or more | 0 | 7,239 |
Unrealized Losses, 12 months or more | 0 | 45 |
Fair value, total | 10,389 | 99,562 |
Unrealized losses, total | 199 | 511 |
Residential mortgage-backed securities | ||
Available for sale: | ||
Fair value, less than 12 months | 2,449 | 92,323 |
Unrealized losses, less than 12 months | 23 | 466 |
Fair value, 12 months or more | 0 | 2,240 |
Unrealized Losses, 12 months or more | 0 | 44 |
Fair value, total | 2,449 | 94,563 |
Unrealized losses, total | 23 | 510 |
Corporate investments | ||
Available for sale: | ||
Fair value, less than 12 months | 3,985 | |
Unrealized losses, less than 12 months | 15 | |
Fair value, 12 months or more | 0 | |
Unrealized Losses, 12 months or more | 0 | |
Fair value, total | 3,985 | |
Unrealized losses, total | 15 | |
State and political subdivisions | ||
Available for sale: | ||
Fair value, less than 12 months | 3,955 | |
Unrealized losses, less than 12 months | 161 | |
Fair value, 12 months or more | 0 | |
Unrealized Losses, 12 months or more | 0 | |
Fair value, total | 3,955 | |
Unrealized losses, total | 161 | |
Held to maturity: | ||
Fair value, less than 12 months | 4,444 | 2,656 |
Unrealized losses, less than 12 months | 13 | 8 |
Fair value, 12 months or more | 0 | 2,766 |
Unrealized Losses, 12 months or more | 0 | 4 |
Fair value, total | 4,444 | 5,422 |
Unrealized losses, total | $ 13 | 12 |
U.S. Government agency obligations | ||
Available for sale: | ||
Fair value, less than 12 months | 0 | |
Unrealized losses, less than 12 months | 0 | |
Fair value, 12 months or more | 4,999 | |
Unrealized Losses, 12 months or more | 1 | |
Fair value, total | 4,999 | |
Unrealized losses, total | $ 1 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)numberOfDebtPosition | Dec. 31, 2019numberOfDebtPosition | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized loss position, number of positions | numberOfDebtPosition | 17 | 36 |
U.S. Government agency obligations | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities,transfer amount | $ | $ 66.5 |
Investment Securities - Summa_4
Investment Securities - Summary of amortized cost and fair value of debt securities by contractual maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized cost | ||
One year or less | $ 3,739 | |
After one through five years | 19,566 | |
After five through ten years | 38,016 | |
After ten years | 206,457 | |
Allocated and single maturity date, total | 267,778 | |
Amortization cost | 267,778 | $ 200,697 |
Fair value | ||
One year or less | 3,762 | |
After one through five years | 19,838 | |
After five through ten years | 38,831 | |
After ten years | 211,892 | |
Allocated and single maturity date, total | 274,323 | |
Amortized Cost | ||
One year or less | 15,048 | |
After one through five years | 47,264 | |
After five through ten years | 40,910 | |
After ten years | 3,545 | |
Allocated and single maturity date, total | 106,767 | |
Fair Value | ||
One year or less | 15,063 | |
After one through five years | 47,334 | |
After five through ten years | 41,127 | |
After ten years | 3,545 | |
Allocated and single maturity date, total | $ 107,069 |
Investment Securities - Summa_5
Investment Securities - Summary of the amortized cost and fair value for investment securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Amortization cost | $ 267,778 | $ 200,697 |
Fair value | 274,323 | 201,073 |
Held to maturity: | ||
Amortized cost | 106,767 | 177,854 |
Fair value | 107,069 | 179,225 |
Pledged to secure public deposits and for other purposes required or permitted by law | ||
Available for sale: | ||
Amortization cost | 242,676 | 124,854 |
Fair value | 248,826 | 125,103 |
Held to maturity: | ||
Amortized cost | 58,694 | 123,978 |
Fair value | $ 58,988 | $ 125,241 |
Loans - Summary of the company'
Loans - Summary of the company's loan portfolio by loan class (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 2,094,112 | $ 2,078,997 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1,629,204 | 1,613,480 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 549,410 | 555,413 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 234,793 | 230,931 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 158,344 | 162,991 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 686,657 | 664,145 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 332,216 | 333,834 |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 73,146 | 70,145 |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 59,546 | $ 61,538 |
Loans - Summary of non-accrual
Loans - Summary of non-accrual loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 11,162 | $ 12,159 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 10,875 | 11,843 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 2,292 | 2,419 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 390 | 390 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 0 | 0 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 8,193 | 9,034 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 41 | 67 |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 62 | 62 |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 184 | $ 187 |
Loans - Summary of past due loa
Loans - Summary of past due loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | $ 19,236 | $ 13,809 |
Current | 2,074,876 | 2,065,188 |
Total Loans | 2,094,112 | 2,078,997 |
Past Due 90 Days or More and Accruing | 3,934 | 2,618 |
Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 14,426 | 10,000 |
Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 4,810 | 3,809 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 17,561 | 11,913 |
Current | 1,611,643 | 1,601,567 |
Total Loans | 1,629,204 | 1,613,480 |
Past Due 90 Days or More and Accruing | 3,746 | 2,312 |
Real estate | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 12,940 | 8,430 |
Real estate | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 4,621 | 3,483 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 9,697 | 8,872 |
Current | 539,713 | 546,541 |
Total Loans | 549,410 | 555,413 |
Past Due 90 Days or More and Accruing | 1,479 | 1,745 |
Real estate | Residential properties | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 7,810 | 6,262 |
Real estate | Residential properties | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 1,887 | 2,610 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 2,587 | 688 |
Current | 232,206 | 230,243 |
Total Loans | 234,793 | 230,931 |
Past Due 90 Days or More and Accruing | 1,638 | 0 |
Real estate | Construction and land development | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 559 | 688 |
Real estate | Construction and land development | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 2,028 | 0 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 652 | 402 |
Current | 157,692 | 162,589 |
Total Loans | 158,344 | 162,991 |
Past Due 90 Days or More and Accruing | 295 | 149 |
Real estate | Farmland | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 357 | 253 |
Real estate | Farmland | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 295 | 149 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 4,625 | 1,951 |
Current | 682,032 | 662,194 |
Total Loans | 686,657 | 664,145 |
Past Due 90 Days or More and Accruing | 334 | 418 |
Real estate | Other commercial | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 4,214 | 1,227 |
Real estate | Other commercial | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 411 | 724 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 673 | 630 |
Current | 331,543 | 333,204 |
Total Loans | 332,216 | 333,834 |
Past Due 90 Days or More and Accruing | 139 | 235 |
Commercial and industrial loans | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 533 | 375 |
Commercial and industrial loans | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 140 | 255 |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 280 | 420 |
Current | 72,866 | 69,725 |
Total Loans | 73,146 | 70,145 |
Past Due 90 Days or More and Accruing | 15 | 20 |
Agricultural production and other loans to farmers | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 265 | 400 |
Agricultural production and other loans to farmers | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 15 | 20 |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 722 | 846 |
Current | 58,824 | 60,692 |
Total Loans | 59,546 | 61,538 |
Past Due 90 Days or More and Accruing | 34 | 51 |
Consumer and other loans | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 688 | 795 |
Consumer and other loans | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | $ 34 | $ 51 |
Loans - Summary of impaired loa
Loans - Summary of impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Impaired loans with no related allowance: | ||
Principal balance | $ 22,679 | $ 24,264 |
Recorded balance | 17,757 | 19,451 |
Impaired loans with related allowance: | ||
Principal balance | 11,199 | 11,668 |
Recorded investment | 11,021 | 11,630 |
Related allowance | 3,380 | 3,370 |
Principal Balance, Total Impaired Loans | 33,878 | 35,932 |
Recorded Balance, Total Impaired Loans | 28,778 | 31,081 |
Average investment | 28,778 | 20,557 |
Interest recognized | 268 | 169 |
Real estate | ||
Impaired loans with no related allowance: | ||
Principal balance | 22,037 | 23,594 |
Recorded balance | 17,471 | 19,135 |
Impaired loans with related allowance: | ||
Principal balance | 10,776 | 11,241 |
Recorded investment | 10,598 | 11,203 |
Related allowance | 3,346 | 3,336 |
Average investment | 28,069 | 19,779 |
Interest recognized | 260 | 162 |
Real estate | Residential properties | ||
Impaired loans with no related allowance: | ||
Principal balance | 4,701 | 4,789 |
Recorded balance | 3,650 | 3,789 |
Impaired loans with related allowance: | ||
Principal balance | 1,123 | 1,127 |
Recorded investment | 1,123 | 1,127 |
Related allowance | 14 | 11 |
Average investment | 4,773 | 4,548 |
Interest recognized | 38 | 37 |
Real estate | Construction and land development | ||
Impaired loans with no related allowance: | ||
Principal balance | 3,919 | 3,919 |
Recorded balance | 2,009 | 2,009 |
Impaired loans with related allowance: | ||
Principal balance | 0 | 0 |
Recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Average investment | 2,009 | 2,414 |
Interest recognized | 35 | 55 |
Real estate | Farmland | ||
Impaired loans with no related allowance: | ||
Principal balance | 10,619 | 10,993 |
Recorded balance | 10,563 | 10,937 |
Impaired loans with related allowance: | ||
Principal balance | 0 | 0 |
Recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Average investment | 10,563 | 390 |
Interest recognized | 129 | 0 |
Real estate | Other commercial | ||
Impaired loans with no related allowance: | ||
Principal balance | 2,798 | 3,893 |
Recorded balance | 1,249 | 2,400 |
Impaired loans with related allowance: | ||
Principal balance | 9,653 | 10,114 |
Recorded investment | 9,475 | 10,076 |
Related allowance | 3,332 | 3,325 |
Average investment | 10,724 | 12,427 |
Interest recognized | 58 | 70 |
Commercial and industrial loans | ||
Impaired loans with no related allowance: | ||
Principal balance | 356 | 384 |
Recorded balance | 41 | 67 |
Impaired loans with related allowance: | ||
Principal balance | 423 | 427 |
Recorded investment | 423 | 427 |
Related allowance | 34 | 34 |
Average investment | 464 | 693 |
Interest recognized | 8 | 7 |
Agricultural production and other loans to farmers | ||
Impaired loans with no related allowance: | ||
Principal balance | 75 | 75 |
Recorded balance | 62 | 62 |
Impaired loans with related allowance: | ||
Principal balance | 0 | 0 |
Recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Average investment | 62 | 85 |
Interest recognized | 0 | 0 |
Consumer and other loans | ||
Impaired loans with no related allowance: | ||
Principal balance | 211 | 211 |
Recorded balance | 183 | 187 |
Impaired loans with related allowance: | ||
Principal balance | 0 | 0 |
Recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Average investment | 183 | 0 |
Interest recognized | $ 0 | $ 0 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses attributable to restructured loans | $ 21,170 | $ 21,500 | $ 24,228 | $ 24,500 |
Minimum period to determine payment default | 90 days | |||
Restructured loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses attributable to restructured loans | $ 3,200 | $ 3,300 |
Loans - Summary of Average Reco
Loans - Summary of Average Recorded Investment and Interest Recognized for Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average investment | $ 28,778 | $ 20,557 |
Interest recognized | 268 | 169 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average investment | 28,069 | 19,779 |
Interest recognized | 260 | 162 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average investment | 4,773 | 4,548 |
Interest recognized | 38 | 37 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average investment | 2,009 | 2,414 |
Interest recognized | 35 | 55 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average investment | 10,563 | 390 |
Interest recognized | 129 | 0 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average investment | 10,724 | 12,427 |
Interest recognized | 58 | 70 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average investment | 464 | 693 |
Interest recognized | 8 | 7 |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average investment | 62 | 85 |
Interest recognized | 0 | 0 |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average investment | 183 | 0 |
Interest recognized | $ 0 | $ 0 |
Allowance for Loan Losses - Sch
Allowance for Loan Losses - Schedule of the credit quality of the company's loan portfolio by loan class (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 2,094,112 | $ 2,078,997 |
Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 2,046,861 | 2,030,878 |
Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 766 | 565 |
Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 46,215 | 47,473 |
Risk Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 270 | 81 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1,629,204 | 1,613,480 |
Real estate | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1,584,891 | 1,568,111 |
Real estate | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 580 | 565 |
Real estate | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 43,511 | 44,804 |
Real estate | Risk Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 222 | 0 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 549,410 | 555,413 |
Real estate | Residential properties | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 533,911 | 540,933 |
Real estate | Residential properties | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 177 | 177 |
Real estate | Residential properties | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 15,322 | 14,303 |
Real estate | Residential properties | Risk Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 234,793 | 230,931 |
Real estate | Construction and land development | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 233,483 | 229,933 |
Real estate | Construction and land development | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 403 | 388 |
Real estate | Construction and land development | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 907 | 610 |
Real estate | Construction and land development | Risk Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 158,344 | 162,991 |
Real estate | Farmland | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 147,142 | 151,354 |
Real estate | Farmland | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Real estate | Farmland | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 11,202 | 11,637 |
Real estate | Farmland | Risk Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 686,657 | 664,145 |
Real estate | Other commercial | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 670,355 | 645,891 |
Real estate | Other commercial | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Real estate | Other commercial | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 16,080 | 18,254 |
Real estate | Other commercial | Risk Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 222 | 0 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 332,216 | 333,834 |
Commercial and industrial loans | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 330,078 | 331,693 |
Commercial and industrial loans | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 95 | 0 |
Commercial and industrial loans | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1,995 | 2,060 |
Commercial and industrial loans | Risk Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 48 | 81 |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 73,146 | 70,145 |
Agricultural production and other loans to farmers | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 72,679 | 69,854 |
Agricultural production and other loans to farmers | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 91 | 0 |
Agricultural production and other loans to farmers | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 376 | 291 |
Agricultural production and other loans to farmers | Risk Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 59,546 | 61,538 |
Consumer and other loans | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 59,213 | 61,220 |
Consumer and other loans | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Consumer and other loans | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 333 | 318 |
Consumer and other loans | Risk Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 0 | $ 0 |
Allowance for Loan Losses - S_2
Allowance for Loan Losses - Schedule of Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | $ 21,500 | $ 24,500 |
Provision for loan losses | 185 | 288 |
Recoveries on loans | 1,120 | 1,282 |
Loans charged off | (1,635) | (1,842) |
Ending balance | 21,170 | 24,228 |
Period End Allowance Balance Allocated To: | ||
Individually evaluated for impairment | 3,380 | 4,288 |
Collectively evaluated for impairment | 17,790 | 19,940 |
Commercial and industrial loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 2,773 | 3,203 |
Provision for loan losses | 7 | 216 |
Recoveries on loans | 87 | 16 |
Loans charged off | (82) | (63) |
Ending balance | 2,785 | 3,372 |
Period End Allowance Balance Allocated To: | ||
Individually evaluated for impairment | 34 | 30 |
Collectively evaluated for impairment | 2,751 | 3,342 |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 10,766 | 12,920 |
Provision for loan losses | 385 | (1,057) |
Recoveries on loans | 34 | 262 |
Loans charged off | (217) | (32) |
Ending balance | 10,968 | 12,093 |
Period End Allowance Balance Allocated To: | ||
Individually evaluated for impairment | 3,332 | 4,248 |
Collectively evaluated for impairment | 7,636 | 7,845 |
Residential | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 5,568 | 5,358 |
Provision for loan losses | (67) | 879 |
Recoveries on loans | 56 | 46 |
Loans charged off | (151) | (475) |
Ending balance | 5,406 | 5,808 |
Period End Allowance Balance Allocated To: | ||
Individually evaluated for impairment | 14 | 10 |
Collectively evaluated for impairment | 5,392 | 5,798 |
Consumer and other loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 1,135 | 1,134 |
Provision for loan losses | 288 | 472 |
Recoveries on loans | 943 | 958 |
Loans charged off | (1,185) | (1,272) |
Ending balance | 1,181 | 1,292 |
Period End Allowance Balance Allocated To: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,181 | 1,292 |
Unallocated | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 1,258 | 1,885 |
Provision for loan losses | (428) | (222) |
Recoveries on loans | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | 830 | 1,663 |
Period End Allowance Balance Allocated To: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | $ 830 | $ 1,663 |
Allowance for Loan Losses - S_3
Allowance for Loan Losses - Schedule of the impairment methodology (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending balance | $ 2,094,112 | $ 2,078,997 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 464 | 494 |
Collectively evaluated for impairment | 331,752 | 333,340 |
Ending balance | 332,216 | 333,834 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 23,296 | 25,422 |
Collectively evaluated for impairment | 1,056,498 | 1,032,645 |
Ending balance | 1,079,794 | 1,058,067 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 4,773 | 4,916 |
Collectively evaluated for impairment | 544,637 | 550,497 |
Ending balance | 549,410 | 555,413 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 245 | 249 |
Collectively evaluated for impairment | 132,447 | 131,434 |
Ending balance | 132,692 | 131,683 |
Unallocated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 28,778 | 31,081 |
Collectively evaluated for impairment | 2,065,334 | 2,047,916 |
Ending balance | $ 2,094,112 | $ 2,078,997 |
Regulatory Matters (Details)
Regulatory Matters (Details) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Regulatory Matters [Abstract] | ||
CET1 Capital to Risk-Weighted Assets (in percentage) | 0.0250 | 0.0250 |
Tier one additional capital, trust preferred securities | $ 40,000,000 | $ 40,000,000 |
Banking regulation, tier one additional capital, trust preferred securities | $ 0 | $ 0 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Requirements (Details) $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Minimum requirement Phase-In Schedule | ||
CET1 Capital to Risk-Weighted Assets (in percentage) | 0.0250 | 0.0250 |
BancPlus Corporation | ||
Actual | ||
CET1 Capital to Risk-Weighted Assets | $ 253,944 | $ 248,247 |
CET1 Capital to Risk-Weighted Assets, ratio (in percentage) | 109.90 | 108.60 |
Tier 1 Capital to Risk-Weighted Assets | $ 293,944 | $ 288,247 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 127.20 | 126.10 |
Total Capital to Risk-Weighted Assets | $ 315,115 | $ 309,747 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 136.40 | 135.50 |
Tier 1 Capital to Average Assets | $ 293,944 | $ 288,247 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 96 | 97.40 |
Minimum requirement Phase-In Schedule | ||
CET1 Capital to Risk-Weighted Assets | $ 161,718 | $ 160,002 |
CET1 Capital to Risk-Weighted Assets (in percentage) | 70 | 70 |
Tier 1 Capital to Risk-Weighted Assets | $ 196,372 | $ 194,288 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 85 | 85 |
Total Capital to Risk-Weighted Assets | $ 242,577 | $ 240,003 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 105 | 105 |
Tier 1 Capital to Average Assets | $ 122,487 | $ 118,373 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 40 | 40 |
Subsidiaries | ||
Actual | ||
CET1 Capital to Risk-Weighted Assets | $ 288,640 | $ 284,513 |
CET1 Capital to Risk-Weighted Assets, ratio (in percentage) | 125.30 | 124.90 |
Tier 1 Capital to Risk-Weighted Assets | $ 288,640 | $ 284,513 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 125.30 | 124.90 |
Total Capital to Risk-Weighted Assets | $ 309,811 | $ 306,013 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 134.50 | 134.30 |
Tier 1 Capital to Average Assets | $ 288,640 | $ 284,513 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 94.40 | 96.30 |
Minimum requirement Phase-In Schedule | ||
CET1 Capital to Risk-Weighted Assets | $ 161,227 | $ 159,469 |
CET1 Capital to Risk-Weighted Assets (in percentage) | 70 | 70 |
Tier 1 Capital to Risk-Weighted Assets | $ 195,776 | $ 193,641 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 85 | 85 |
Total Capital to Risk-Weighted Assets | $ 241,841 | $ 239,203 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 105 | 105 |
Tier 1 Capital to Average Assets | $ 122,274 | $ 118,134 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 40 | 40 |
Required to be Well Capitalized | ||
CET1 Capital to Risk-Weighted Assets | $ 149,711 | $ 148,078 |
CET1 Capital to Risk-Weighted Assets, ratio (in percentage) | 65 | 65 |
Tier 1 Capital to Risk-Weighted Assets | $ 184,260 | $ 182,250 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 80 | 80 |
Total Capital to Risk-Weighted Assets | $ 230,325 | $ 227,813 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 100 | 100 |
Tier 1 Capital to Average Assets | $ 152,842 | $ 147,668 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 50 | 50 |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 274,323 | $ 201,073 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 274,323 | 201,073 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Government agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 5,188 | 18,102 |
U.S. Government agency obligations | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Government agency obligations | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 5,188 | 18,102 |
U.S. Government agency obligations | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 207,803 | 175,879 |
Residential mortgage-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 207,803 | 175,879 |
Residential mortgage-backed securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Commercial mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 11,398 | 3,010 |
Commercial mortgage-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 11,398 | 3,010 |
Commercial mortgage-backed securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Corporate investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 3,985 | 4,082 |
Corporate investments | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Corporate investments | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 3,985 | 4,082 |
Corporate investments | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | $ 0 |
State and political subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 45,949 | |
State and political subdivisions | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | |
State and political subdivisions | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 45,949 | |
State and political subdivisions | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 0 |
Fair Value - Schedule of asse_2
Fair Value - Schedule of assets measured at fair value on a non-recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | $ 25,398 | $ 27,711 |
Other real estate owned | 5,191 | 4,851 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | 25,398 | 27,711 |
Other real estate owned | 5,191 | 4,851 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | 25,398 | 27,711 |
Other real estate owned | $ 5,191 | $ 4,851 |
Fair Value - Qualitative Inform
Fair Value - Qualitative Information about Level 3 Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of specific allowance | $ 25,398 | $ 27,711 |
Other real estate owned | $ 5,191 | $ 4,851 |
Minimum | Selling costs | Third-party appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of allowance for loan losses, selling costs (in percentage) | 5.00% | 5.00% |
Other real estate owned, measurement input (in percentage) | 0.05 | 0.05 |
Minimum | Discount of book value | Internal evaluations of real estate, accounts receivable and inventory | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of allowance for loan losses, selling costs (in percentage) | 15.00% | 15.00% |
Maximum | Selling costs | Third-party appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of allowance for loan losses, selling costs (in percentage) | 10.00% | 10.00% |
Other real estate owned, measurement input (in percentage) | 0.10 | 0.10 |
Maximum | Discount of book value | Internal evaluations of real estate, accounts receivable and inventory | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of allowance for loan losses, selling costs (in percentage) | 50.00% | 50.00% |
Fair Value - Summary of estimat
Fair Value - Summary of estimated fair values of the Company’s financial instruments not previously disclosed (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Amortized cost | $ 106,767 | $ 177,854 |
Accrued interest receivable | 12,125 | 11,509 |
Reported Value Measurement | ||
Financial liabilities: | ||
Deposits | 2,639,004 | 2,592,065 |
Federal Home Loan Bank and other borrowings | 36,709 | 37,652 |
Subordinated debentures | 41,238 | 41,238 |
Accrued interest payable | 1,068 | 1,083 |
Reported Value Measurement | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 347,614 | 312,972 |
Reported Value Measurement | Level 2 | ||
Financial assets: | ||
Amortized cost | 106,767 | 177,854 |
Federal Home Loan Bank stock | 2,598 | 2,585 |
Accrued interest receivable | 12,125 | 11,509 |
Reported Value Measurement | Level 3 | ||
Financial assets: | ||
Loans held for sale | 16,312 | 16,092 |
Loans, net | 2,072,942 | 2,057,497 |
Estimate of Fair Value Measurement | ||
Financial liabilities: | ||
Deposits | 2,638,611 | 2,593,910 |
Federal Home Loan Bank and other borrowings | 37,696 | 37,298 |
Subordinated debentures | 41,238 | 41,238 |
Accrued interest payable | 1,068 | 1,083 |
Estimate of Fair Value Measurement | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 347,614 | 312,972 |
Estimate of Fair Value Measurement | Level 2 | ||
Financial assets: | ||
Amortized cost | 107,069 | 179,225 |
Federal Home Loan Bank stock | 2,598 | 2,585 |
Accrued interest receivable | 12,125 | 11,509 |
Estimate of Fair Value Measurement | Level 3 | ||
Financial assets: | ||
Loans held for sale | 16,312 | 16,092 |
Loans, net | $ 2,073,761 | $ 2,050,169 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employers matching contribution, annual vesting percentage (in percentage) | 3.00% | |||
Employer matching contribution, percent of match (in percentage) | 50.00% | |||
Employer matching contribution, percent of employees' gross pay (in percentage) | 2.00% | |||
Total ESOP shares | 1,434,625,000 | 1,434,625,000 | ||
Stock repurchased during period (in shares) | 27,594,000 | 77,000,000 | 176,786,000 | |
Employee Stock Ownership Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Redeemable common stock owned by the ESOP | $ 79,730 | $ 79,308 | ||
Temporary equity (in USD per share) | $ 58.50 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of ESOP (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Postemployment Benefits [Abstract] | ||
Allocated shares (in shares) | 1,362,906,000 | 1,355,699,000 |
Unearned shares (in shares) | 71,719,000 | 78,926,000 |
Total ESOP (in shares) | 1,434,625,000 | 1,434,625,000 |
Fair value of unearned shares (in USD) | $ 4,196 | $ 4,617 |
Equity (Details)
Equity (Details) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | |||
Common stock, par value per share (USD per share) | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 10,000,000 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Class A | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Common stock, par value per share (USD per share) | $ 1 | ||
Class B | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Common stock, par value per share (USD per share) | $ 1 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - Restricted stock awards - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 2,500 | 27,944 | ||
Stock based compensation expense | $ 383 | $ 98 | ||
Forfeited (in shares) | 0 | 0 | ||
Unrecognized compensation cost related to nonvested RSAs | $ 2,800 | |||
Unrecognized compensation cost related to nonvested RSAs, period for recognition | 2 years 9 months 18 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 55,310 | 35,157 | 69,093 | 12,693 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 54.68 | $ 54.68 | $ 53.67 | $ 53 |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted stock awards - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Number of Shares | ||
Outstanding at the beginning of period (in shares) | 69,093 | 12,693 |
Granted (in shares) | 2,500 | 27,944 |
Vested (in shares) | (16,283) | (5,480) |
Forfeited (in shares) | 0 | 0 |
Outstanding at the end of period (in shares) | 55,310 | 35,157 |
Weighted Average Grant Date Fair Value | ||
Outstanding, weighted average grant date fair value, beginning balance (in USD per share) | $ 53.67 | $ 53 |
Granted, weighted average grant date fair value (in USD per share) | 57 | 50 |
Vested, weighted average grant date fair value (in USD per share) | 50.78 | 53 |
Forfeited, weighted average grant date fair value (in USD per share) | 0 | 0 |
Outstanding, weighted average grant date fair value, ending balance (in USD per share) | $ 54.68 | $ 54.68 |
Subsequent Event (Details)
Subsequent Event (Details) | May 01, 2020USD ($)loan | Apr. 01, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares |
Subsequent Event [Line Items] | ||||
Common stock, par value per share (USD per share) | $ / shares | $ 1 | $ 1 | ||
Loans before allowance for loan losses | $ 2,094,112,000 | $ 2,078,997,000 | ||
Paycheck Protection Program | COVID-19 pandemic | CARES Act | ||||
Subsequent Event [Line Items] | ||||
Loans before allowance for loan losses | $ 281,000,000 | |||
Number of loans, temporary modifications | 778 | |||
Percentage of loans, temporary modification (in percentage) | 13.00% | |||
State Capital Corp. | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value per share (USD per share) | $ / shares | $ 1.25 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Merger, common stock, conversion ratio | 0.6950 | |||
Common stock, par value per share (USD per share) | $ / shares | $ 1 | |||
Common stock issued (in shares) | shares | 2,453,827 | |||
Fractional shares, value | $ 13,000 | |||
Acquisiton expense | $ 540,000 | |||
Subsequent Event | Paycheck Protection Program | COVID-19 pandemic | ||||
Subsequent Event [Line Items] | ||||
Number of loans | loan | 3,316 | |||
Loans before allowance for loan losses | $ 293,400,000 | |||
Fee income | 10,000,000 | |||
Subsequent Event | Paycheck Protection Program | COVID-19 pandemic | CARES Act | ||||
Subsequent Event [Line Items] | ||||
Loans before allowance for loan losses | $ 835,000,000 | |||
Number of loans, temporary modifications | loan | 2,427 | |||
Percentage of loans, temporary modification (in percentage) | 26.00% |